Full Text of Semi-annual Report 2022 of Shenzhen Topband Co., Ltd.
Shenzhen Topband Co., Ltd.
Semi-annual Report 2022
Topband Applet for Investor Relations
July 2022
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Full Text of Semi-annual Report 2022 of Shenzhen Topband Co., Ltd.
Section I Important Notes, Contents and Definitions
The Board of Directors, the Board of Supervisors and directors, supervisors and senior
executives of the Company hereby assure that the content set out in the Semi-annual Report is true,
accurate and complete. It shall be free from false records, misleading statements or major omissions,
and shall bear individual and joint legal liabilities therein.
Wu Yongqiang, the principal of the Company, Xiang Wei, 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 semi-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 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 Company plans not to distribute cash dividends and bonus shares, nor to convert the
accumulation fund to increase the share capital.
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Contents
Section I Important Notes, Contents and Definitions .......................................................................... 2
Section II Profile and Main Financial Indicators ................................................................................. 6
Section III Discussion and Analysis of the Management .................................................................... 9
Section IV Corporate Governance ..................................................................................................... 31
Section V Environmental and Social Responsibility ......................................................................... 35
Section VI Important Matters............................................................................................................. 37
Section VII Share Change and Shareholders ..................................................................................... 47
Section VIII Information on Preferred Shares ................................................................................... 54
Section IX Relevant Information of Bonds........................................................................................ 55
Section X Financial Report ................................................................................................................ 56
Section XI Other Reported Data ...................................................................................................... 211
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Directory of documents for future reference
I. Accounting statements containing the signatures and seals of the legal representative, the financial
head and the accounting department head.
II. The originals of all the company documents publicly disclosed in newspapers designated by the
CSRC during the reporting period and the original manuscripts of announcements.
III. The original of the Semi-annual Report 2022 bearing the signature of the chairman.
All the above documents are ready and complete, and are available for reference at the office of the
Board of Directors of the Company.
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Definitions
Terms Refer to Contents
Company, the Company, Topband Refer to Shenzhen Topband Co., Ltd.
Yuan, 10,000 yuan Refer to Yuan, RMB 10,000 yuan
CSRC Refer to China Securities Regulatory Commission
Exchange Refer to Shenzhen Stock Exchange
Reporting period Refer to From January 1, 2022 to June 30, 2022
Articles of Association Refer to Articles of Association of Shenzhen Topband Co., Ltd.
Huizhou Topband Refer to Huizhou Topband Electrical Technology Co., Ltd.
YAKO Automation Refer to Shenzhen YAKO Automation Technology Co., Ltd.
HCD Refer to Shenzhen Allied Control System Co., Ltd.
Topband Software Refer to Shenzhen Topband Software Technology Co., Ltd.
ORVIBO Refer to Shenzhen ORVIBO Technology Co., Ltd.
Chongqing Yiyuan Refer to Chongqing Topband Industrial Co., Ltd.
Ningbo Topband Refer to Ningbo Topband Intelligent Control Co., Ltd.
Meanstone Intelligent Refer to Shenzhen Meanstone Intelligent Technology Co., Ltd.
HANSC Intelligent Refer to Shenzhen HANSC Intelligent Technology Co., Ltd.
Hong Kong Topband Refer to Topband (Hong Kong) Co., Ltd.
Topband Smart Europe Refer to Topband Smart Europe Company Limited
Topband Mexico Refer to Topband Mexico Company Limited
Topband Battery Refer to Shenzhen Topband Battery Co., Ltd.
AIoT Refer to Artificial intelligence of things
ICT Refer to Information Communications Technology
BLDC Motor Refer to Brushless DC Motor
IPD Refer to Integrated Product Development
ISC Refer to Integrated Supply Chain
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Section II Profile and Main Financial Indicators
I. Company information
Stock abbreviation Topband Stock code 002139
Listed stock exchange Shenzhen Stock Exchange
Chinese name of the Company 深圳拓邦股份有限公司
Chinese abbreviation of the
拓邦股份
Company name (if any)
English name (if any) Shenzhen Topband Co.,Ltd
English abbreviation (if any) Topband
Legal representative Wu Yongqiang
II. Contact person and contact information
Secretary of the Board of Directors Representative of securities affairs
Name Wen Zhaohui Zhang Yuhua
Topband Industrial Park, Keji Second Topband Industrial Park, Keji Second
Address Road, Shiyan Sub-district, Bao'an Road, Shiyan Sub-district, Bao'an
District, Shenzhen District, Shenzhen
Tel 0755-26957035 0755-26957035
Fax 0755-26957440 0755-26957440
Email wenzh@topband.com.cn zhangyuhua@topband.com.cn
III. Others
1. Company's contact information
Whether the Company's registered address, company office address and its postal code, company website and e-
mail address have changed during the reporting period
□ Applicable Not applicable
The Company's registered address, company office address and its postal code, company website, and e-mail remain
unchanged during the reporting period. For details, please refer to the Annual Report 2021.
2. Information Disclosure and Storage Location
Whether information disclosure and storage place has changed during the reporting period
□ Applicable Not applicable
The name of the information disclosure newspaper selected by the Company, the website address designated by the
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China Securities Regulatory Commission to publish the semi-annual report, and the storage place for the Company's
semi-annual report remain unchanged during the reporting period. For details, please refer to the Annual Report
2021.
3. Other relevant information
Whether other relevant information has changed during the reporting period
□ Applicable Not applicable
IV. Main accounting data and financial indicators
Whether the Company is required to retroactively adjust or restate the accounting data of previous years
□ Yes No
This reporting Same period last
Y-o-y increase /decrease
period year
Operating income (yuan) 4,228,003,137.57 3,644,045,612.40 16.02%
Net profit attributable to shareholders of listed
246,508,271.38 428,185,704.03 -42.43%
companies (yuan)
Net profit attributable to the shareholders of the listed
company for deduction of non-recurring profits and 204,656,056.10 319,714,520.44 -35.99%
losses (yuan)
Net cash flow from operating activities (yuan) 74,886,255.39 -225,705,738.12 133.18%
Basic earnings per share (yuan/share) 0.20 0.38 -47.37%
Diluted earnings per share (yuan/share) 0.20 0.37 -45.95%
Weighted average ROE 4.77% 11.13% -6.36%
Increase or decrease at the end
At the end of the End of the of the current year compared
reporting period previous year with the end of the previous
year
Total assets (yuan) 10,174,791,588.35 9,606,992,402.39 5.91%
Net assets attributable to shareholders of listed
5,285,706,108.91 5,028,315,406.63 5.12%
companies (yuan)
V. Differences in accounting data under domestic and foreign accounting standards
1. Differences in net profit and net assets between financial reports disclosed in accordance with
International Accounting Standards and those disclosed in accordance with PRC GAAP at the same time
□ 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.
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2. Difference between the net profit and net assets in the financial reports disclosed in accordance with both
foreign accounting standards and Chinese accounting standards at the same time
□ Applicable Not applicable
There is no difference in net profit and net assets between financial reports disclosed in accordance with foreign
accounting standards and those disclosed in accordance with PRC GAAP during the reporting period.
VI. Items and amount of non-recurring profits and losses
Applicable □ Not applicable
Unit: yuan
Items Amount Description
Profits and losses on disposal of non-current assets (including the write-off portion of the
-378,109.64
provision for asset impairment)
Government subsidies included in the current profits and losses (except those that are
closely related to the normal business of the Company, conform to national policies and
14,625,339.37
regulations and are continuously enjoyed in a fixed or quantitative manner according to
certain standards)
Profits 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 tradable
31,603,205.99
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 other than those mentioned above -1,217,111.70
Other items of profits and losses that meet the definition of non-recurring profits and Financing
241,902.47
losses income
Minus: amount affected by income tax 2,794,910.05
Amount affected by minority shareholders' equity (after tax) 228,101.16
Total 41,852,215.28
Details of other items of profits and losses that conform to the definition of non-recurring profits and losses:
□ Applicable Not applicable
None.
Explanation of defining the items of non-recurring profits and losses 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 items of profits and losses
□ Applicable Not applicable
The items of non-recurring profits and losses 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 profits and losses by the Company.
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Section III Discussion and Analysis of the Management
I. Main businesses during the reporting period
(I) Main business and products
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
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 Intelligent
business application in appliances Tool New energy Industry
solutions
"five industries"
Core technology layout
of "four electrics and Electric control Motor Battery Power source
one network" technology technology technology technology
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, etc. 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
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brushless DC motors (BLDC), stepper motors, and servo motors. Among them, the Company takes the lead in the
tool motor and motion control industries. 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.
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 source 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 IoT platform. The IoT platform is a technology that integrates perception layer, connection layer and
application layer, mainly including connection management, device management and application. The Company
has formed a complete technical capability from IoT module, intelligent terminal to APP, and PaaS IoT platform,
and has developed solutions for more than ten business scenarios.
2. Main products of the Company: Customized system solutions for five industries, namely home
appliances, tools, new energy, industry and intelligent solutions.
2.1 Intelligent control of home appliances
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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, display control, temperature control, and voice 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 customized services from the product concept, design, development to manufacturing and delivery for
brand customers in the tool industry. The business covers the electric control, motor and battery, and the product
forms include not only the controller, motor, battery pack BMS but also the module and the complete machine.
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, controllers, battery cells, battery management systems, battery packs, battery swap
cabinets, PACK and motor control are provided for fields such as household energy storage, portable energy storage,
energy storage of communication base stations, motorcycles and tricycles, other special vehicles, new energy
vehicles and IoT.
2.4 Industry
In the industrial control industry, the Company's main business includes R&D, production, sales of drive and
control products with focus on special industrial intelligent control solutions. The Company mainly provides
controllers, drives and motors for downstream automation equipment customers, which are widely used in 3C
electronics, photovoltaic, battery, 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
The intelligent solution is the integrated intelligent solution of "innovative products + AIoT platform +
customized service" for the "clothing, food, housing and transportation", "industry, catering, hotel, and park" and
other scenarios with the Company's AIoT (Artificial Intelligence of Things) technology platform and intelligent
product innovation capabilities as the core.
(II) Industry situation
1. Basic situation
The intelligent control industry, in which the Company is involved, is a long-term thriving industry, with a
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trillion-dollar market, and its applications cover all walks of life, such as the household appliances, smart home,
intelligent building, power tools, robots, industry and automation, automotive electronics, new energy and medical
equipment. The intelligent controller, the main product of the industry, is a high-tech product produced with the
automatic control technology and computer technology as the core, incorporating the sensor technology,
microelectronic technology and power electronics technology and many other technical categories, and acting as
the "nerve center" and "brain" in the industry.
An intelligent and low-carbon society is the irresistible trend, with a long-term, continuous, wide-ranging and
far-reaching change, which will deeply affect modern life and change the form of products. The industry is now at
a crossroad of intelligence, scenario-based, green and low carbon. With the deepening of social intelligence, the
continuous integration and development of intelligent control technology and 5G, IoT, artificial intelligence, cloud
computing and other new technologies, the accelerated iteration of various products, the constant upgrading of the
intelligence level, and the emerging of the new products, new formats and new models, more new opportunities will
be created for the intelligent control products in various intelligent and low-carbon application scenarios such as
clothing, food, housing and transportation, enterprises, cities, etc., making the intelligent controller industry highly
prospective.
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 "four electrics and one network" (electric control,
motor, battery, power supply and IoT 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. Core competitiveness analysis
1. Systematic rapid response capability. With the development of ICT technology and the accelerated speed
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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.
2. 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 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.
3. 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.
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III. Main business analysis
In the first half of 2022, the pandemic in many places in China repeated. In the first quarter, two waves of
pandemics occurred in Shiyan Sub-district, Bao'an District, Shenzhen, where the Company's headquarters is located,
affecting the production and operation to a certain extent. In the second quarter, the pandemic in Shanghai and its
surrounding areas had a wider impact on customers in the Yangtze River Delta and on the semiconductor supply to
varying degrees. Under the background of the state's policy of "Adopting vigorous measures to prevent import of
cases and resurgence of infections" and implementing the scientific, accurate and dynamic zero-COVID policy, the
Company's production and operation faced many external challenges, such as multiple difficulties in transportation,
personnel, and materials. During the reporting period, all employees of the Company united sincerely, took the
initiative and did their best to organize the resumption of work and production under the premise of ensuring safety.
We took advantage of the production capacity layout in many places in China and overseas factories, to ensure the
timely delivery of customer orders to the greatest extent by optimizing the allocation of production capacity and
increasing the stocking of scarce materials.
With the joint efforts of all Topband staff, the Company achieved operating incomes of 4.228 billion yuan
during the reporting period, a year-on-year increase of 16.02%, and net profits of 247 million yuan attributable to
shareholders of the listed companies, a year-on-year decrease of 42.43%, and net profits of 205 million yuan
attributable to shareholders of the listed companies after deduction of non-recurring profits and losses, a year-on-
year decrease of 35.99%. Among them, various indicators such as revenue and profit in the second quarter have
been significantly improved compared with the first quarter. In the second quarter, the operating incomes increased
by 26.37% from the previous quarter, and the net profit attributable to shareholders of the listed companies after
deduction of non-recurring gains and losses reached 147 million yuan, an increase of 155% from the first quarter.
(I) During the reporting period, the operating income was 4.228 billion yuan, a year-on-year
increase of 16.02%. The main reasons are as follows:
The future belongs to an intelligent society, and all walks of life need controllers for people's necessities.
Secondly, the intelligent control industry is showing a trend of focusing on the head companies and transferring to
a professional third party. During the reporting period, due to the impact of the pandemic, the Russian-Ukrainian
war and the year-on-year base, the growth rate of the basic business (home appliances and tool units) slowed down.
As the Company's growth business, the new energy unit achieved rapid growth. Overseas business progressed
smoothly, and the proportion of export revenue increased to over 60% during the reporting period. New
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breakthroughs were made in each business segment in terms of product categories and customers.
The business development in the first half of 2022 is as follows:
(1) Tool unit: the Company's basic business unit. In the first half of 2022, the sales revenue reached 1.607
billion yuan, a year-on-year increase of 7.96%. The Company reserved a relatively rich product line in this unit,
providing downstream customers with one-stop solutions covering controllers, motors, BMS, battery packs and
complete machines. The focus of tool unit was mainly on power tools and garden tools, with a high downstream
concentration. The world's top ten complete machine customers occupied the main market share, and companies
from Europe and the United States accounted for a relatively high market share in the terminal market. During the
reporting period, affected by the economic prosperity of Europe and the United States, the growth rate slowed down.
In the medium and long term, the application scenarios of tools are increasing, and there is still plenty of room for
improving the penetration rate in markets other than Europe and the United States. The industry will not change its
continuous growth trend due to short-term factors such as the pandemic. With the increase in the rate of lithium
battery and cordless application, and the increase in the volume of product platforms and leading customers, the
Company's market share in this unit will further increase.
(2) Home appliance unit: the Company's basic business unit. In the first half of 2022, the sales revenue
reached 1.515 billion yuan, a year-on-year increase of 12.1%. 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, commercial air conditioning,frequency conversion
air conditioning，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 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: The Company's growth business. In the first half of 2022, the sales revenue reached 858
million yuan, a year-on-year increase of 61.23%. Focusing on energy storage, green commuting and other fields,
the unit is higher than the overall growth rate of the Company. The Company's new energy business has rich product
lines and diverse product forms. In the field of new energy, we can provide solutions for inverters, cells, battery
management systems, battery packs, battery swap cabinets, PACK and other products and complete systems.
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Relying on years of technology accumulation and stable quality assurance, we can open the market quickly with the
advantages of customized solutions. Due to the historical industry opportunity of low carbon plus the overseas
energy shortage caused by war and severe weather, the overseas market demand for energy and household energy
storage is rather strong in the first half of 2022, and it is expected thatthe trend of high growth will continue.
(4) Industrial unit: In the first half of 2022, the sales revenue reached 135 million yuan, a year-on-year
decrease of 18.82%. The Company mainly provides controllers, drives and motors for downstream automation
equipment customers, which are widely used in 3C electronics, robots, medical device, photovoltaic equipment,
semiconductor equipment, textile machinery, packaging machinery, etc. During the reporting period, the economic
situation and pandemic had a certain impact on the demand of industrial automation industry. By adopting the
strategy of focusing on key industries and key customers, the Company made breakthroughs in photovoltaic
industries and other industries, with a small year-on-year growth of servo products. We are committed to helping
automation equipment manufacturers improve 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: The intelligent solution is the integrated solution of "innovative products + AIoT
platform + customized service" for the "clothing, food, housing and transportation", "industry, catering, hotel, and
park" and other scenarios with the Company's AIoT (Artificial Intelligence of Things) technology platform and
intelligent product innovation capabilities as the core. In the first half of 2022, the sales revenue reached 83 million
yuan, a year-on-year increase of 5.04%.
(II) During the reporting period, the net profits attributable to shareholders of the listed companies after
deduction of non-recurring gains and losses reached 205 million yuan, a year-on-year decrease of 35.99%.
The main reasons are as follows:
1. Supply-side impact: Material cost was an important part of the Company's main business cost. In 2021,
due to the pandemic and other external influences, the cost of raw materials such as chips had risen sharply, and
gradually stabilized in the first half of 2022, but the prices of imported semiconductors and transistors were at high
level, without significant drop. In the first half of 2022, the external environment was turbulent. In order to ensure
the safety of delivery, the Company reserved a certain amount of inventories, consumed some high-priced
inventories in the second quarter and counted them into cost accordingly. During the reporting period, the integrated
gross margin of products was 19.08%, an increase of 0.07 percentage points from the previous quarter and a year-
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on-year decrease of 5.04 percentage points.
2. Influence of equity incentive expenses: During the reporting period, the accrued equity incentive expenses
increased by approximately 71 million yuan on a year-on-year basis.
3. Three period expenses (selling expenses, R&D expenses and management expenses): After the
deduction of equity incentive expenses, the three expenses increased by about 150 million yuan year-on-year. The
main reasons were that the Company's business was in a period of rapid development, requiring more R&D
Investments on new projects. Meanwhile, under the development strategy of multi-regionalization and close
customer relationship, overseas bases such as Romania and Mexico were still in the early stage of investment, as a
result, selling expenses increased year-on-year. With the promotion of these strategies, the ability to serve customers
nearby can be improved, and the impact of political risks such as trade wars and the pandemic on company operation
can be also reduced.
(III) During the reporting period, the net profits attributable to shareholders of the listed companies
reached 247 million yuan, a year-on-year decrease of 42.43%. The main reasons are as follows:
In addition to the above factors affecting the net profits attributable to shareholders of the listed companies
after deduction of non-recurring gains and losses, the gain from fair value changes from external investment during
the reporting period decreased by approximately 65 million yuan year-on-year.
Year-on-year changes in key financial data
Unit: yuan
Year-on-
This reporting Same period last year
Reasons for change
period year increase or
decrease
Compared with the same period of last year, it increased
by 583.96 million yuan or 16.02% during the reporting
Operating
4,228,003,137.57 3,644,045,612.40 16.02% period. The main reason is that the Company increased
income
efforts in market development and expanded the sales
scale during the period.
Compared with the same period of last year, it increased
Operating by 656.14 million yuan or 23.73% during the reporting
3,421,434,029.61 2,765,295,741.39 23.73%
cost period. The main reason is that the increase in revenue
during the period resulted in raised costs.
Selling expenses: Compared with the same period of last
year, they increased by 48.29 million yuan or 62.81%
during the reporting period. The main reason is that the
Selling
125,180,825.48 76,889,884.59 62.81% increase in employees during the period resulted in an
expenses
increase in salary expenses, and the accrued expenses of
restricted stock also increased compared with the same
period last year.
Management 160,894,026.46 94,842,819.69 69.64% Management expenses: Compared with the same period of
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Full Text of Semi-annual Report 2022 of Shenzhen Topband Co., Ltd.
expenses last year, they increased by 66.05 million yuan or 69.64%
during the reporting period. The main reason is that the
increase in employees during the period resulted in an
increase in salary expenses, and the accrued expenses of
restricted stock also increased compared with the same
period last year.
Financial expenses: Compared with the same period of
last year, they decreased by 117.38 million yuan or
218.33% during the reporting period. The main reason is
Finance
-63,616,375.63 53,761,157.16 -218.33% that the increase in the exchange rate of the US dollars
expenses
against the RMB during the period resulted in a large
exchange gain, while it is ascribed to the exchange loss in
the same period of last year.
Income tax expenses: Compared with the same period of
last year, they decreased by 27.83 million yuan or 60.98%
during the reporting period. The main reason is that the
Income tax
17,807,321.21 45,639,842.16 -60.98% deferred tax expense accrued due to the change in fair
expenses
value of the investment held on ORVIBO increased
compared with the same period of last year, but there is no
such effect in this reporting period.
R&D investment: Compared with the same period of last
year, it increased by 118.51 million yuan or 50.73% during
R&D the reporting period. The main reason is that the
352,138,564.64 233,628,312.83 50.73%
investment Company's R&D personnel and the accrued expenses for
the equity incentive plan greatly increased compared with
the same period of last year.
Compared with the same period of last year, it increased
Net cash
by 300.59 million yuan or 133.18% during the reporting
flow from
74,886,255.39 -225,705,738.12 133.18% period. The main reason is the increase in cash received
operating
from sales of goods and labor services provided during the
activities
period.
Compared with the same period of last year, it decreased
Net cash by 78.63 million yuan or 19.21% during the reporting
flow from period. The main reason is that the cash paid for the
-487,956,696.27 -409,322,535.05 -19.21%
investment purchase and construction of fixed assets, intangible assets
activities and other long-term assets increased compared with the
same period of last year.
Compared with the same period of last year, it decreased
Net cash by 518.66 million yuan or 69.25% during the reporting
flow from period. The main reason is that the capitals raised through
230,261,666.20 748,918,536.69 -69.25%
financing non-public offering of shares were credited into account in
activities the same period last year, and there is no such effect in this
reporting period.
Net increase
in cash and
-162,322,238.96 87,547,923.94 -285.41%
cash
equivalents
Significant changes in the Company's profit composition or profit sources during the reporting period
□ Applicable Not applicable
There was no significant change in the Company's profit composition or profit source during the reporting period.
Composition of operating income
Unit: yuan
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This reporting period Same period last year Year-on-year
Proportion in Proportion in increase or
Amount Amount decrease
operating income operating income
Total operating
4,228,003,137.57 100% 3,644,045,612.40 100% 16.02%
income
By industry
Intelligent control
4,228,003,137.57 100.00% 3,644,045,612.40 100.00% 16.02%
electronics industry
By product
Tool 1,606,784,503.47 38.00% 1,488,294,121.01 40.84% 7.96%
Home appliances 1,515,196,016.05 35.84% 1,351,595,006.58 37.09% 12.10%
New energy 858,103,466.53 20.30% 532,217,782.45 14.61% 61.23%
Industry 135,322,059.03 3.20% 166,694,953.58 4.57% -18.82%
Intelligent solutions 83,117,293.53 1.97% 79,127,608.68 2.17% 5.04%
Other 29,479,798.96 0.70% 26,116,140.10 0.72% 12.88%
By region
Domestic 1,568,861,062.41 37.11% 1,550,764,762.74 42.56% 1.17%
Foreign 2,659,142,075.16 62.89% 2,093,280,849.66 57.44% 27.03%
The situation of industries, products or regions accounting for more than 10% of the Company's operating income
or operating profit
Applicable □ Not applicable
Unit: yuan
Increase or
Increase or Increase or
decrease of
decrease of decrease of
Gross operating
Operating operating costs gross profit
Operating cost profit income over
income over the same rate over the
rate the same
period of last same period
period of last
year of last year
year
By industry
Intelligent control
4,228,003,137.57 3,421,434,029.61 19.08% 16.02% 23.73% -5.04%
electronics industry
By product
Tool 1,606,784,503.47 1,274,042,349.51 20.71% 7.96% 17.58% -6.48%
Home appliances 1,515,196,016.05 1,257,127,675.01 17.03% 12.10% 15.83% -2.67%
New energy 858,103,466.53 714,351,510.60 16.75% 61.23% 76.19% -7.07%
By region
Domestic 1,568,861,062.41 1,280,900,681.66 18.35% 1.17% 10.92% -7.18%
Foreign 2,659,142,075.16 2,140,533,347.95 19.50% 27.03% 32.91% -3.56%
The Company's main business data for the most recent year adjusted according to the caliber at the end of the
reporting period when the statistical caliber of the Company's main business data is adjusted in the reporting period
□ Applicable Not applicable
Reasons for the change of more than 30% in relevant data
Applicable □ Not applicable
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In the first half of 2022, the Company's new energy revenue increased by 61.23% year-on-year, which is mainly
due to the historical opportunity of low carbon and the increased demand for energy and energy storage products
caused by overseas energy crisis.
IV. Analysis of non-main business
□ Applicable Not applicable
V. Analysis of assets and liabilities
1. Significant changes in asset composition
Unit: yuan
End of the current year End of last year
Proporti Increase or
Proportio decrease of Description of major changes
on in
Amount n in total Amount proportion
total
assets
assets
Monetary 1,592,155,704.4 1,767,580,056.0
15.65% 18.40% -2.75%
capital 5 7
Accounts 2,383,927,027.1 2,188,161,465.4
23.43% 22.78% 0.65%
receivable 5 8
2,200,490,689.4 2,184,402,766.0
Inventory 21.63% 22.74% -1.11%
6 4
Investment
107,656,655.34 1.06% 86,975,114.31 0.91% 0.15%
property
Long-term
equity 24,629,564.82 0.24% 26,119,127.82 0.27% -0.03%
investment
Fixed assets: Compared with the
same period of last year, they
increased by 421.05 million or
32.40% during the reporting
period. The main reason is that
1,720,571,118.7 1,299,517,887.5
Fixed assets 16.91% 13.53% 3.38% during the period, the Operation
2 4
Center Project in Ningbo East
China constructed was available
and transferred from the status of
construction in progress to fixed
assets.
Project under construction:
Compared with the beginning of
the period, it decreased by 352.15
Constructio million or 71.11% during the
n in 143,094,482.19 1.41% 495,248,025.93 5.16% -3.75% reporting period. The main reason
progress is that during the period, the
Operation Center Project in Ningbo
East China constructed was
available and transferred from the
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status of construction in progress to
fixed assets.
Right-of-
55,212,987.55 0.54% 58,168,151.88 0.61% -0.07%
use assets
Short-term loans: Compared with
the beginning of the period, they
increased by 315.14 million or
76.95% during the reporting
Short-term
724,668,584.75 7.12% 409,531,107.26 4.26% 2.86% period. The main reason is that the
loans
short-term loans undue during the
reporting period increased
compared with the beginning of the
period.
Contractual liabilities: Compared
with the beginning of the period,
they increased by 46.99 million or
Contractual 50.35% during the reporting
140,315,780.40 1.38% 93,328,006.70 0.97% 0.41%
liabilities period. The main reason is that the
advance received on contract
increased compared with the same
period of last year.
Long-term
450,511,381.65 4.43% 475,020,000.00 4.94% -0.51%
loans
Lease
38,645,239.64 0.38% 40,290,402.14 0.42% -0.04%
liabilities
2. Major overseas assets
Applicable □ Not applicable
Unit: yuan
Proportio
Whether
Control n of
there is a
measures foreign
Asset Reasons of Locatio Operation Earning significant
Asset size to ensure assets to
details formation n mode position risk of
the safety net assets
impairmen
of assets of the
t
Company
Financial
Investment R&D,
Operatio supervisio
and 387,131,492.8 Pune, productio 15,709,640.7
n Center n and 7.32% No
establishmen 7 India n and 7
in India external
t sales
audit
Financial
Operatio Investment R&D,
Binh supervisio
n Center and productio 56,121,933.0
346,748,112.69 Duong, n and 6.56% No
in establishmen n and 2
Vietnam external
Vietnam t sales
audit
3. Assets and liabilities measured at fair value
Applicable □ Not applicable
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Unit: yuan
Profits and
Changes in Impairment
losses from Purchase Amount sold in
cumulative fair accrued in Other
Items Opening balance changes in fair amount in the the current Closing balance
value included the current changes
value in the current period period
in equity period
current period
Financial assets
1. Tradable
financial assets
(excluding 214,999,336.74 31,603,205.99 170,117,413.30 73,000,000.00 47,000,000.00 272,602,542.73
derivative financial
assets)
Subtotal of
214,999,336.74 31,603,205.99 170,117,413.30 73,000,000.00 47,000,000.00 272,602,542.73
financial assets
Total of the above 214,999,336.74 31,603,205.99 170,117,413.30 73,000,000.00 47,000,000.00 272,602,542.73
Financial liabilities 0.00 0.00
Contents of other changes
None
Whether there are significant changes in the measurement attributes of the Company's main assets during the
reporting period
□ Yes No
4. Restricted asset rights by the end of the reporting period
See Sections X, VII and (LXXXI) of this report for details.
VI. Investment analysis
1. General situation
Applicable □ Not applicable
Investment amount in the same period of
Investment in the reporting period (yuan) Range of change
last year (yuan)
30,000,000.00 46,000,000.00 -34.78%
2. Major equity investment obtained during the reporting period
□ Applicable Not applicable
3. Major non-equity investment obtained during the reporting period
□ Applicable Not applicable
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4. Investment in financial assets
(1) Securities investment
□ Applicable Not applicable
There was no securities investment during the reporting period.
(2) Derivatives investment
□ Applicable Not applicable
There was no derivative investment during the reporting period.
5. Usage of raised capitals
Applicable □ Not applicable
(1) General use of raised capitals
Applicable □ Not applicable
Unit: 10,000 yuan
Total
Amount
amount of
Total Cumulative Cumulative of raised
raised
amount of Total total amount total amount Total capitals
Total capitals Purpose and
Year of Ways of raised amount of of raised proportion amount of which
amount of for destination of
raising raising capitals raised capitals of raised unused have
raised change of unused raised
capitals capitals used in capitals with capitals with raised been idle
capitals purpose capitals
the current used changed changed capitals for more
during the
period purposes purposes than two
reporting
years
period
Temporary
Public replenishment
offering of and deposit in
2019 56,543.65 2,753.63 41,554.13 0 0 0.00% 14,989.52 0
convertible the special
bonds account for
raised capitals
Temporary
replenishment
Non-public
and deposit in
2021 offering of 103,684.71 16,997.93 51,537.8 61,000 61,000 58.83% 52,146.91 0
the special
shares
account for
raised capitals
Total -- 160,228.36 19,751.56 93,091.93 61,000 61,000 38.07% 67,136.43 -- 0
General use of raised capitals
1. Actual amount and time of arrival of capitals raised
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(1) Public offering of convertible corporate bonds to raise capitals 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). Capitals with a total amount of 573,000,000.00 yuan were
raised, and the net capitals raised were 565,436,509.42 yuan after deduction of all the issuance costs amounting to 7,563,490.58 yuan.
The capitals arrived on March 13, 2019. Ruihua Certified Public Accountants (Special General Partnership) verified the arrival and issued
the Capital Verification Report (RHYZ [2019] No. 48270001).
(2) Non-public offering of shares to raise capitals in 2021
Shenzhen Topband Co., Ltd. issued 92,105,263 A shares to specific targets in private at the price of 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 Approval of Non-public Offering of
Shares by Shenzhen Topband Co., Ltd. (ZJXK [2020] No. 1865). The total amount of capitals raised was 1,049,999,998.20 yuan, and the
net capitals 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 capitals were transferred to the Company's special account for raising capitals on May 10, 2021. Baker Tilly China Certified Public
Accountants (Special General Partnership) verified the arrival and issued the Capital Verification Report (TZYZ [2021] No. 29460) for the
capitals.
2. Usage amount and balance of capitals raised in the first half of 2022
(1) Use of capitals raised by public issuing of convertible bonds in 2019
As of June 30, 2022, the Company has invested 415.5413 million yuan in capital-raising projects. Among them, 389.3065 million yuan was
directly invested in the capital-raising projects, and 26.2348 million yuan was returned before the raised capitals were put in place. On June
30, 2022, 150 million yuan idle raised capitals have been used to temporarily supplement the working capital; as of June 30, 2022, the
balance of the raised capitals account is 6.4766 million yuan (including interest income).
(2) Non-public offering of shares to raise capitals in 2021
As of June 30, 2022, the Company has invested a total of 515.3781 million yuan in capital-raising projects. Among them, 469.9793 million
yuan was directly invested in the capital-raising projects, and 45.3987 million yuan was returned before the raised capitals were put in place.
On June 30, 2022, 470 million yuan idle raised capitals have been used to temporarily supplement the working capital; as of June 30, 2022,
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the balance of the raised capitals account is 51.4254 million yuan (including interest income).
(2) Situation of projects committed when raising capitals
Applicable □ Not applicable
Unit: 10,000 yuan
Where
Benefit
there is
Whether The s
Whether any
the project Total Total Amount Investment date achieve
Committed investment Accumulated the signific
has been committed investment invested progress by when d
projects and investment investment expected ant
changed investment after during the the end of the during
direction of over raised by the end of benefits change
(including of raised adjustment reporting the period project the
capitals the period (2) are in the
some capitals (1) period (3)=(2)/(1) is ready reportin
achieved feasibili
changes) for use g
ty of the
period
project
Committed investment projects
Operation Center in Not
No 56,543.65 56,543.65 2,753.63 41,554.13 73.49% No
Topband East China applicable
Topband Huizhou No. 2 Not
No 73,684.71 12,684.71 4,539.87 35.79% No
Industrial Park Project applicable
Topband Nantong
Not
Industrial Park Phase-I No 61,000 16,997.93 16,997.93 27.87% No
applicable
Stage-1 Project
Replenish the Company's Not
No 30,000 30,000 30,000 100.00% No
working capital applicable
Subtotal of committed
-- 160,228.36 160,228.36 19,751.56 93,091.93 -- -- -- --
investment projects
Investment direction of over raised capitals
None
Total -- 160,228.36 160,228.36 19,751.56 93,091.93 -- -- 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
Applicable
Change of
Applicable
implementation location
of investment projects
1. On January 8, 2022, the Company held the 18th Meeting of the 7th Board of Directors, deliberated and passed the Proposal
with raised capitals
on Implementation Mode, Subject and Location of Changes in Some Capital-raising Projects, and agreed that the Company
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Full Text of Semi-annual Report 2022 of Shenzhen Topband Co., Ltd.
should change the implementation subject, location and mode of the lithium battery business in the planned project.
Specifically, the implementation place was changed from Huizhou, Guangdong Province to Nantong, Jiangsu Province.
Applicable
Applicable
1. On January 8, 2022, the Company held the 18th Meeting of the 7th Board of Directors, deliberated and passed the Proposal
Adjustment of
implementation mode of
on Implementation Mode, Subject and Location of Changes in Some Capital-raising Projects, and agreed that the Company
investment projects with
raised capitals
should change the implementation subject, location and mode of the lithium battery business in the planned project.
Specifically, the implementation mode was changed from the land acquisition for building construction to the direct
purchasing of building with infrastructure constructed.
Applicable
1. The Company invested 26.2348 million yuan in advance in the Operation Center Project in Topband East China with self-
raised capitals. Ruihua Certified Public Accountants (Special General Partnership) conducts a special audit on the above
matters, and issues the Authentication Report on the Report of Shenzhen Topband Co., Ltd. on the Investment Projects with
Self-raised Capitals in Advance (RHHZ [2019] No. 48250027). On July 25, 2019, the 25th Meeting of the 5th Board of
Directors of the Company deliberated and passed the Proposal on Using Raised Capitals to Replace Self-raised Capitals
Invested in Advance. As of June 30, 2021, the Company has completed the replacement of self-raised capitals invested in
Upfront investment and
advance.
replacement of
investment projects with
2. The Company invested 45.3987 million yuan in Topband Huizhou No. 2 Industrial Park Project with self-raised capitals in
raised capitals
advance. Baker Tilly China Certified Public Accountants (Special General Partnership) conducted a special audit on the matter
above, and issued the Authentication Report of Pre-investment of Shenzhen Topband Co., Ltd. in the Investment Project of
Capitals Raised with Self-raised Capitals (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 Capitals with Capitals Raised on June 8, 2021.
As of June 30, 2022, the Company has completed the replacement of self-raised capitals invested in advance.
The Board of Supervisors, Independent Directors and Sponsor Institutions of the Company all expressed their clear consent
on the matter.
Applicable
Temporary replenishment 1. On February 15, 2022, the Company held the 20th Meeting of the 7th Board of Directors, deliberated and passed the
of working capital with
idle capitals raised 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 840 million yuan of idle capitals raised, with a period of not more
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than 12 months. As of June 30, 2022, 470 million 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 February 15, 2022, the Company held the 20th 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 840 million yuan of idle capitals raised, with a period of not more
than 12 months. As of June 30, 2022, 47,000 yuan of temporary supplementary current assets have been used.
2. On March 22, 2022, the Company held the 21st Meeting of the 7th Board of Directors, deliberated and passed the Proposal
on Purchasing Cash Financial Products with Some Idle Raised Capitals and Self-own Capitals, and agreed that the Company
Purpose and whereabouts
of unused raised capitals
should purchase short-term principal-protected bank financial products with no more than 100 million yuan of idle raised
capitals and no more than 600 million yuan of self-own capitals. The capitals can be used on a rolling basis within the amount
above. As of June 30, 2022, the Company has purchased no financial products with the idle raised capitals.
The Board of Supervisors, Independent Directors and Sponsor Institutions of the Company all expressed their clear consent
on the matter.
3. The remaining unused raised capitals are deposited in the Company's special account for raising capitals.
Problems or other
situations in the usage
None
and disclosure of raised
capitals
(3) Change of projects with raised capitals
Applicable □ Not applicable
Unit: 10,000 yuan
Whether
Actual there was a
Total amount
Actual accumulate Investment The date Benefits Whether significant
of raised
Original investment d progress by when the achieved the change in
Changed capitals to be
projects during this investment the end of the project is during the expected the
projects invested in the
committed reporting by the end period ready for reporting benefits are feasibility
changed
period of the (3)=(2)/(1) use period achieved of the
project (1)
period (2) changed
project
Topband Topband
Not
Nantong Huizhou No. 2 61,000 16,997.93 16,997.93 27.87% No
applicable
Industrial Industrial Park
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Park Phase- (Lithium
I Stage-1 Battery) Project
Project
Total -- 61,000 16,997.93 16,997.93 -- -- 0 -- --
Due to the rapid development of the Company's lithium battery business in recent years, the
downstream market demand was rather strong. The Company originally planned to purchase
land and build a factory to promote the lithium battery project, with a construction period of
2 years. However, in the Nantong Lithium Battery Project, the Company purchased an
existing plant with infrastructure constructed, greatly shortening the construction period. In
order to facilitate the expansion of the lithium battery business as soon as possible, the
Company fully seized the market opportunities of the lithium battery industry and the new
energy industry, enhanced its market competitiveness and operating performance, and
through the comprehensive assessment, planned to change the implementation subject,
Reasons for change, decision-making
procedures and information disclosure (by location and mode of the lithium battery business in the original capital-raising project, so as
specific projects)
to utilize the capitals raised efficiently.
The Company, after holding the 18th (Interim) Meeting of the 7th Board of Directors, the
15th (Interim) Meeting of the 7th Board of Supervisors and the 1st Extraordinary General
Meeting of Shareholders in 2022, deliberated and passed the Proposal on Implementation
Mode, Subject and Location of Changes in Some Capital-raising Projects, to change the
implementation mode, subject and location of the lithium battery business in the planned
capital-raising project with the non-public offering of shares in 2021.
The above content has been disclosed in strict accordance with the information disclosure
requirements.
Situation and reason of failing to reach the
planned progress or expected income (by Not applicable
specific project)
Description of major changes in the feasibility
Not applicable
of the changed project
VII. Sale of major assets and equity
1. Sale of major assets
□ Applicable Not applicable
The Company did not sell any major assets during the reporting period.
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2. Sale of major equity
□ Applicable Not applicable
VIII. Analysis of major holding and equity participating companies
Applicable □ Not applicable
Situation of major subsidiaries and equity participating companies with an impact of 10% or more on net profit of
the Company
Unit: yuan
Name of Company Registered Operating Operating
Main business Total assets Net assets Net profit
company type capital income profit
R&D,
Huizhou production,
Topband sales, import
300 million
Electrical Subsidiary and export of 4,153,807,245.87 1,509,053,369.27 2,846,172,700.16 98,044,717.93 86,580,642.11
yuan
Technology electronic parts
Co., Ltd. and
components
R&D,
production,
Topband sales, import
12.5 million
（Vietnam) Subsidiary and export of 346,748,112.69 293,585,686.07 301,544,040.97 61,942,431.39 56,121,933.02
US dollars
Co.,ltd electronic parts
and
components
R&D,
production,
Shenzhen
sales, import
Topband 50 million
Subsidiary and export of 1,073,972,032.58 671,219,273.91 506,513,724.74 42,330,611.62 35,968,469.78
Battery Co., yuan
electronic parts
Ltd.
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
Name of company
subsidiaries during the reporting period operations and results
Shenzhen Xiaoyou Aitu Innovation No significant impact on the results of
Newly established and acquired
Technology Co., Ltd. the Report
No significant impact on the results of
Shenzhen Yueshang Robot Co., Ltd. Newly established and acquired
the Report
No significant impact on the results of
Shenzhen Topband Motor Co., Ltd. Newly established and acquired
the Report
Description of major shareholding companies
None
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IX. Situation of structured entity controlled by the Company
□ Applicable Not applicable
X. Risks faced by the Company and countermeasures
1. External risks such as the macro environment
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. Risks of technology upgrading
The intelligent controller industry technology, as the main business of the Company, is developing rapidly with
fast product upgrading and short life cycle. Although the Company continues to invest in R&D and owns a number
of invention and utility patents, there is still a risk that the technology will not be updated in time to meet market
demand, or lag behind competitors in launching new products, resulting in a decline in the market share and
profitability of the Company. Considering that, the Company will continue to strengthen product and market
research, and improve its insight and planning capabilities.
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
comprehensively 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 shortage of raw materials, wide fluctuations
in prices and customer credit risk will increase the uncertainty of the Company's operation. Given that, the Company
will continue to strengthen raw materials tracking and analysis, improving the dynamic management level of
inventory, and strengthening customer credit risk management and control.
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Section IV Corporate Governance
I. Information on the annual and extraordinary general meetings of shareholders held during
the reporting period
1. Information on the General Meeting of Shareholders during the reporting period
Investor
Meeting Date of
Meeting type participation Meeting date Meeting resolution
session disclosure
ratio
First
Extraordinary Extraordinary
General General Reviewed and approved the Proposal on Implementation Mode,
31.74% 2022/1/24 2022/1/25
Meeting of Meeting of Subject and Location of Changes in Some Capital-raising Projects;
Shareholders Shareholders
in 2022
1. Reviewed and approved the Proposal on 2021 Annual Report and
Abstract;
2. Reviewed and approved the Proposal on 2021 Final Financial Report;
3. Reviewed and approved the Proposal on 2021 Profit Distribution
Plan;
4. Reviewed and approved the Proposal on 2021 Work Report of the
Board of Directors;
5. Reviewed and approved the Proposal on 2021 Work Report of the
Board of Supervisors;
6. Reviewed and approved the Proposal on Remuneration of Company
Directors in 2021;
7. Reviewed and approved the Proposal on Remuneration of Company
Supervisors in 2021;
8. Reviewed and approved the Proposal on Application for
Comprehensive Credit Line from Banks by the Company and Its
Subsidiaries in 2022;
Annual 9. Reviewed and approved the Proposal on Renewing the Employment
2021 Annual
General of Audit Institution in 2022;
General 31.27% 2022/4/12 2022/4/13
Meeting of 10. Reviewed and approved the Proposal on Spinning off Shenzhen
Meeting
Shareholders YAKO Automation Technology Co., Ltd. (Subsidiary) to List on the
Growth Enterprise Market of Shenzhen Stock Exchange in Compliance
with Relevant Laws and Regulations;
11. Reviewed and approved the Proposal on Spinning off Shenzhen
YAKO Automation Technology Co., Ltd. (Subsidiary) for the Initial
Public Offering of A Shares;
12. Reviewed and approved the Proposal on the Plan of Shenzhen
Topband Co., Ltd. for Spinning Off of Its Subsidiary (Shenzhen YAKO
Automation Technology Co., Ltd.) to List on the Growth Enterprise
Market;
13. Reviewed and approved the Proposal on Spinning off Shenzhen
YAKO Automation Technology Co., Ltd. (Subsidiary) to List on the
Growth Enterprise Market of Shenzhen Stock Exchange in Compliance
with Rules for the Spin-off of Listed Companies (For Trial
Implementation);
14. Reviewed and approved the Proposal on Spinning off Shenzhen
YAKO Automation Technology Co., Ltd. (Subsidiary) to List on the
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Growth Enterprise Market of Shenzhen Stock Exchange and to
Safeguard the Legal Rights and Interests of Shareholders and Creditors;
15. Reviewed and approved the Proposal on Maintaining Independence
and Sustainable Operation Abilities;
16. Reviewed and approved the Proposal on Shenzhen YAKO
Automation Technology Co., Ltd. With Relevant Standard Operation
Capacities;
17. Reviewed and approved the Proposal on the Description of
Shenzhen YAKO Automation Technology Co., Ltd. (Subsidiary)
Fulfilling the Completeness and Compliance of Legal Procedures
During the Spin-off Listing and Validity of Legal Documents
Submitted;
18. Reviewed and approved the Proposal on Authorizing the Board of
Directors and Authorized Persons to Fully Handle Matters Regarding
Spin-off Listing of Shenzhen YAKO Automation Technology Co., Ltd.
(Subsidiary) on the Growth Enterprise Market of Shenzhen Stock
Exchange;
19. Reviewed and approved the Proposal on the Purpose, Commercial
Reasonableness, Necessity and Feasibility Analysis of the Spin-off;
20. Reviewed and approved the Proposal on Repurchase and
Cancellation of Some Restricted Stocks from Restricted Stock
Incentive Plan in 2021.
2. The preferred shareholders with restored voting rights request to convene an Extraordinary General
Meeting of Shareholders
□ Applicable Not applicable
II. Changes in directors, supervisors and senior executives of the Company
□ Applicable Not applicable
There were no changes in the Company's directors, supervisors and senior management during the reporting
period. For details, please refer to the Annual Report 2021.
III. Profit distribution and conversion of capital accumulation fund to share capital in the
reporting period
□ Applicable Not applicable
The Company plans not to distribute cash dividends and bonus shares, nor to convert the accumulation fund to
increase the share capital within half a year.
IV. Implementation of the Company's equity incentive plan, employee stock ownership plan
or other employee incentive measures
Applicable □ Not applicable
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1. Stock incentive
(1) Implementation of the stock option incentive plan in 2018 during the reporting period
On March 18, 2022, the 21st Meeting of the 7th Board of Directors and the 17th Meeting of the 7th Board of
Supervisors deliberated and approved the Proposal on the Third Exercise Period of 2018 Stock Option Incentive
Plan Meeting the Exercise Conditions and Exercisable Rights and the Proposal on Adjustment of the Incentive
Objects and the Number of Stock Options of 2018 Stock Option Incentive Plan. There were 543 incentive objects
in the third exercise period to exercise their rights independently and a total of 14,049,300 stock options meeting
the exercise conditions. Zhang Ran, Wu Mingli and other 20 incentive objects resigned from the Company due to
personal reasons. Due to the failure to meet conditions of stock incentive objects, their 324,000 stock options that
have been granted but not yet exercised had been canceled by the Company on June 2, 2022. In the stock option
incentive plan in 2018, the objects to be granted were reduced from 567 to 545.
On April 26, 2022, the 25th Meeting of the 7th Board of Directors and the 21st Meeting of the 7th Board of
Supervisors reviewed and approved the Proposal on Adjusting the Exercise Price of the Stock Option Incentive Plan
in 2018. The 2021 annual equity distribution plan was implemented, and the exercise price was adjusted from 3.60
yuan per share to 3.55 yuan per share accordingly.
As of May 16, 2022, 14,049,300 stock options involving 543 incentive objects that meet the exercising
conditions has been exercised, increasing the Company's capital stock by 14.0493 million yuan.
On June 2, 2022, upon review and confirmation by Shenzhen Branch of China Securities Depository and
Clearing Co., Ltd., 551,500 stock options that failed to meet the exercise conditions has been the canceled, and the
2018 stock option incentive plan has been successfully implemented.
For details of the implementation of the 2018 stock option incentive plan, please refer to the Company's
announcements on Securities Times and http://www.cninfo.com.cn on March 22, 2022, April 27, 2022, and June 3,
2022.
2) Implementation of the restricted stock incentive plan in 2021 during the reporting period
On March 30, 2022, the 23rd (Interim) Meeting of the 7th Board of Directors and the 19th (Interim) Meeting
of the 7th Board of Supervisors reviewed and approved the Proposal on Repurchase and Cancellation of Some
Restricted Stocks from Restricted Stock Incentive Plan in 2021. 10 employees including Wu Song and Luo
Qingshan, the incentive objects of the 2021 restricted stock incentive plan, resigned due to personal reasons, and
they no longer meet the conditions for stock incentive objects. Therefore, 221,000 restricted stocks that have been
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granted to them but not been unlocked would be canceled by the Company. In the restricted stock incentive plan in
2021, the objects to be granted were reduced from 1,224 to 1,214.
For details of the implementation of the 2021 restricted stock incentive plan, please refer to the Company's
announcements on Securities Times and http://www.cninfo.com.cn on March 31, 2022.
2. Implementation of employee stock ownership plan
□ Applicable Not applicable
3. Other employee incentives
□ Applicable Not applicable
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Section V Environmental and Social Responsibility
I. Major environmental issues
Whether the listed companies and their subsidiaries were key pollutant discharging organizations announced by
the Environmental Protection Department
□ Yes No
Administrative punishment for environmental problems during the reporting period
Name of company Reason for Punishment Influence on production and Rectification measures
Violation
or subsidiary punishment result operation of listed companies of the Company
Not Not
Not applicable Not applicable Not applicable Not applicable
applicable applicable
Refer to other environmental information disclosed by key pollutant discharge companies
There is no serious pollution in the production process of the Company. The Company has always paid special
attention to the social public image, and implemented environmental protection as an important part of its social
responsibility, to ensure that industrial solid waste is effectively disposed of according to regulations, and the various
pollutants discharged meets the national environmental protection standards.
The Company has passed the ISO14001:2015 Environmental Management System Certification, implemented
the supporting HSPMQC080000 Hazardous Substance Process Management System, and in terms of the
identification and evaluation of environmental factors, environmental monitoring and measurement management,
environmental communication management, waste water, exhaust gas and solid waste treatment control, hazardous
substances identification and control, prepared a series of procedural documents, so as to specify the Company's
environmental protection system and responsibilities under the environmental management system. The passing of
the system certification and the establishment of relevant supporting systems of the Company show that the
Company has realized institutionalized and operable arrangements in terms of environmental protection.
Measures and effects taken to reduce carbon emissions during the reporting period
□ Applicable Not applicable
Reasons for not disclosing other environmental information
Not applicable
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II. Social responsibility
Not applicable
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Section VI Important Matters
I. Completed commitments in the reporting period and uncompleted commitments within the
time limit by the end of the reporting period by the Company's actual controller, shareholders,
related parties, acquirers, the Company and other committed related parties
Applicable □ Not applicable
Commitment Commitment Commitment Commitment
Reasons for commitments Commitment content Performance
Party type time period
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 Company, Fulfill the
Long-term
Wu Yongqiang to horizontal he would not directly or indirectly engage 2007/6/12 commitment
effective
competition in any business which was the same, strictly
similar or substantially competitive with
the main business of the Company at
present and in the future.
Ji Shuhai, a director of the Company as a
shareholder, has promised not to directly
Commitments or indirectly engage in any business which Fulfill the
Long-term
Ji Shuhai to horizontal was the same, similar or substantially 2007/6/12 commitment
effective
competition competitive with the main business of the strictly
Company at present and in the future in
any way during his term of office.
1. I would not deliver benefits to other
organizations or individuals free of charge
or under unfair conditions and not damage
the interests of the Company in other
Commitments made means. 2. I fully supported and cooperated
during the initial public with the Company in regulating the duty
offering or refinancing 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
All directors
Company to avoid extravagance or Fulfill the
and senior Other
excessive consumption. 3. I would strictly 2020/4/29 On-going commitment
executives of commitments
abide by the relevant laws and regulations, strictly
the Company
the regulations and rules of the CSRC, the
stock exchange and other regulatory
institutions as well as the requirements of
the Company's rules and regulations on the
code of conduct of directors and senior
executives. Besides, I would not use the
Company's assets to engage in investment
and consumption activities unrelated to the
performance of my duties. 4. I would try
my best to make the Company implement
the compensation demand return
measures. 5. I would work hard to link the
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compensation system formulated by the
Board of Directors or the Compensation
Committee with the implementation of the
Company's compensation return
measures. At the same time, I would vote
in favor of the compensation system
proposal when the Board of Directors and
the General Meeting of Shareholders of
the Company deliberated (if I have 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 voting right). 7. If I
violate the above commitments, I would
make an explanation and apologize
publicly at the General Meeting of
Shareholders and the designated
newspapers and magazines designated by
the CSRC. I voluntarily accept the self-
discipline supervision measures taken by
the stock exchange and China Association
for Public Companies. If my breach of the
commitment causes losses to the Company
or the shareholders, I shall be liable for
compensation in accordance with the law.
1. I would not abuse the position of the
controlling shareholder/actual controller
to interfere with the operation and
management activities of the Company
beyond my power and would not infringe
the Company's interests under any
circumstances.
2. I would try my best to make the
Company implement the compensation
demand return measures.
3. I would work hard to link the
compensation system formulated by the Fulfill the
Other
Wu Yongqiang Board of Directors or the Compensation 2020/4/29 On-going commitment
commitments
Committee with the implementation of the strictly
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
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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.
If Huizhou Topband, a wholly-owned
subsidiary of Shenzhen Topband Co., Ltd.,
failed to bid for the land usage right of the
plot DN-02-16 at the southeast of the
intersection of Dongxin Avenue and
Xing'an Road of Dongjiang High-tech
Industrial Park in HZZK Hi-tech Industrial Fulfill the
Other
Wu Yongqiang Development Zone to be used by 2020/7/30 On-going commitment
commitments
"Huizhou Topband No. 2 Industrial Park strictly
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).
Peng Ganquan, I promise that I would not transfer all the
Zheng Sibin, Company's shares (including the shares Six months Fulfill the
Equity incentive Other
Ma Wei, Wen obtained from exercise and other shares) 2022/5/16 after commitment
commitment commitments
Zhaohui and within six months after the exercise of the exercise strictly
Xiang Wei stock option incentive plan in 2018.
Whether the commitment
Yes
was fulfilled on schedule
If the commitment was not
fulfilled within the time
limit, the specific reasons
Not applicable
for the failure and the next
work plan shall be
explained in detail.
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II. Non-operating capital occupation of listed companies by controlling shareholders and their
related parties
□ Applicable Not applicable
There was no non-operating capital occupation of listed companies by controlling shareholders and their related
parties in the reporting period of the Company.
III. External guarantee in violation of regulations
□ Applicable Not applicable
The Company had no external guarantee in violation of regulations during the reporting period.
IV. Appointment and dismissal of the accounting firm
Whether the semi-annual financial report has been audited
□ Yes No
The semi-annual report has not been audited.
V. Description of the "non-standard audit report" of the Accounting Firm in the reporting
period by the Board of Directors and the Board of Supervisors
□ Applicable Not applicable
VI. Descriptions of the "non-standard audit report" in the previous year by the Board of
Directors
□ Applicable Not applicable
VII. Matters related to bankruptcy reorganization
□ Applicable Not applicable
There were no matter related to bankruptcy reorganization during the reporting period.
VIII. Litigation matters
Major litigation and arbitration matters
□ Applicable Not applicable
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The Company had no major litigation and arbitration matters during the reporting period.
Other litigation matters
□ Applicable Not applicable
IX. Punishment and rectification
□ Applicable Not applicable
X. Integrity condition of the Company, its controlling shareholders and actual controllers
□ Applicable Not applicable
XI. Major related transactions
1. Related transactions connected with the daily operation
□ Applicable Not applicable
The Company had no related transactions connected with daily operations during the reporting period.
2. Related transactions arising from acquisition and sale of assets or equity
□ Applicable Not applicable
The Company had no related transaction of acquisition or sale of assets or equity during the reporting period.
3. Related transactions of joint foreign investment
□ Applicable Not applicable
The Company had no related transaction of joint foreign investment during the reporting period.
4. Related creditor's right and debt transaction
□ Applicable Not applicable
The Company had no related creditor's right and debt transaction during the reporting period.
5. Transactions with associated financial companies
□ Applicable Not applicable
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There was no deposit, loan, credit extension or other financial business between the Company and its related
financial companies or between the related parties.
6. Transactions between financial companies controlled by the Company and related parties
□ Applicable Not applicable
There was no deposit, loan, credit or other financial business between financial companies controlled by the
Company and related parties.
7. Other major related transactions
Applicable □ Not applicable
On January 13, 2022, the Company held the 19th Meeting of the 7th Board of Directors, reviewed and approved
the Proposal on the Estimated Daily Related Transactions in 2022. As of the end of the reporting period, the contract
amount or estimated amount of the Company's daily related transaction has been within the approved limit.
Inquiries about the website for disclosing the interim report on significant related transactions
Disclosure date of temporary Name of website for disclosing temporary
Name of temporary announcement
announcement announcement
Announcement on the Estimated Daily Related
January 15, 2022 http://www.cninfo.com.cn
Transactions in 2022
XII. Major contracts and their performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ Applicable Not applicable
The Company had no trusteeship during the reporting period.
(2) Contracting
□ Applicable Not applicable
The Company had no contracting during the reporting period.
(3) Lease
□ Applicable Not applicable
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The Company had no lease during the reporting period.
2. Material guarantee
Applicable □ Not applicable
Unit: 10,000 yuan
External guarantee of the Company and its subsidiaries (excluding guarantee for subsidiaries)
Whether
Date of
Wheth the
disclosure of Actual
Name of Guarantee Actual Counter er it guarantee
the relevant date of Guarantee Collateral Guarantee
guarantee amount guarantee guarantee was objects
announcemen occurrenc type (if any) period
object limit amount (if any) compl were
t of guarantee e
eted related
amount limit
parties
Not
applicable
Guarantees of the Company for subsidiaries
Whether
Date of
Wheth the
disclosure of Actual
Name of Guarantee Actual Counter er it guarantee
the relevant date of Guarantee Collateral Guarantee
guarantee amount guarantee guarantee was objects
announcemen occurrenc type (if any) period
object limit amount (if any) compl were
t of guarantee e
eted related
amount limit
parties
The tentative
guarantee
period shall
not exceed 5
Joint
Ningbo years from
2019/1/12 19,000 0 liability No No
Topband the date of
guarantee
signing the
formal
guarantee
agreement
The tentative
guarantee
period shall
not exceed 5
Joint
Ningbo years from
2020/10/20 22,000 2020/11/5 22,000 liability No No
Topband the date of
guarantee
signing the
formal
guarantee
agreement
Total actual balance
Total amount of approved
of guarantee for
guarantee for subsidiaries
41,000 subsidiaries at the 22,000
at the end of the reporting
end of the reporting
period (B3)
period (B4)
Guarantee of the subsidiary to its subsidiary
Name of Date of Guarantee Actual Actual Guarantee Collateral Counter Guarantee Whether Whether
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guarantee disclosure of amount date of guarantee type (if any) guarantee period it was the
object the relevant limit occurrenc amount (if any) completed guarantee
announcemen e objects
t of guarantee were
amount limit related
parties
Not
applicable
Total amount of the corporate guarantee (i.e. the sum of the first three items)
Total amount of Total actual balance
guarantee approved at the of guarantee at the
41,000 22,000
end of the reporting end of the reporting
period (A3+B3+C3) period (A4+B4+C4)
The proportion of the total actual amount of
guarantee (A4+B4+C4) in the Company's net 4.16%
assets
Including:
Description of details of complex guarantee
None
3. Entrusted financial management
Applicable □ Not applicable
Unit: yuan
Amount of Overdue Accrued impairment amount
Capital source of Unexpired
Specific types entrusted financial amount not of overdue and unrecovered
entrusted financing balance
management recovered wealth management
Bank financial
Self-own capitals 43,000,000 0 0 0
products
Total 43,000,000 0 0 0
Specific situation of high-risk entrusted financial management with the significant single amount or low security,
poor liquidity and non-capital guarantee
□ Applicable Not applicable
Entrusted financial management was expected to be unable to recover the principal or there were other situations
that may lead to impairment
□ Applicable Not applicable
4. Others major contracts
□ Applicable Not applicable
The Company had no other major contract during the reporting period.
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XIII. Description of other major matters
Applicable □ Not applicable
1. Changes in some planned capital-raising projects with the non-public offering of shares in 2021
1. On January 7, 2022, the Company, after holding the 18th (Interim) Meeting of the 7th Board of Directors
and the 15th (Interim) Meeting of the 7th Board of Supervisors, deliberated and passed the Proposal on
Implementation Mode, Subject and Location of Changes in Some Capital-raising Projects, to change the
implementation mode, subject and location of the lithium battery business in the planned capital-raising project with
the non-public offering of shares in 2021, and to change the implementation place of the lithium battery work in the
Topband Huizhou No. 2 Industrial Park Project from Huizhou, Guangdong Province to Nantong, Jiangsu Province.
The matters had been reviewed and approved on the First Extraordinary General Meeting of Shareholders in 2022.
For details, please refer to the Company's announcements on Securities Times and http://www.cninfo.com.cn
on January 8, 2022 and January 25, 2022.
2. Spin-off listing of Shenzhen YAKO Automation Technology Co., Ltd.
(1) On March 18, 2022, the Company, after holding the 21st Meeting of the 7th Board of Directors and the
17th Meeting of the 7th Board of Supervisors, deliberated and passed the Proposal on Planning the Spin-off Listing
of Controlled Subsidiaries. Based on the actual situation and through careful consideration, the Company agreed to
the planned spin-off listing of its holding subsidiary (Shenzhen YAKO Automation Technology Co., Ltd.;
hereinafter referred to as "YAKO Automation"), and authorized the Company and the management to launch the
preparatory work for the spin-off listing.
(2) On March 25, 2022, the Company, after holding the 22nd (Interim) Meeting of the 7th Board of Directors
and the 18th (Interim) Meeting of the 7th Board of Supervisors, reviewed and approved the Proposal on the Plan of
Shenzhen Topband Co., Ltd. for Spinning Off of Its Subsidiary (Shenzhen YAKO Automation Technology Co.,
Ltd.) to List on the Growth Enterprise Market, the Proposal on Spinning off Shenzhen YAKO Automation
Technology Co., Ltd. (Subsidiary) to List on the Growth Enterprise Market of Shenzhen Stock Exchange in
Compliance with Rules for the Spin-off of Listed Companies (For Trial Implementation) and other proposals related
to the spin-off, authorizing the Company to spin off its subsidiary, YAKO Automation, and to list on the Growth
Enterprise Market of Shenzhen Stock Exchange. In addition, the Company disclosed the Proposal on the Plan of
Shenzhen Topband Co., Ltd. for Spinning Off of Its Subsidiary (Shenzhen YAKO Automation Technology Co.,
Ltd.) to List on the Growth Enterprise Market; the General Risk Advisory Announcement on Spin-off Listing of
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Subsidiaries and related announcements on March 26, 2022. CITIC Securities Co., Ltd. issued the Verification
Opinion on the Spin-off of Shenzhen YAKO Automation Technology Co., Ltd. (Subsidiary) by Shenzhen Topband
Co., Ltd. and Listing on the Growth Enterprise Market, Baker Tilly China Certified Public Accountants (Special
General Partnership) issued the Financial Verification Opinions on the Spin-off Listing of Subsidiary of Shenzhen
Topband Co., Ltd., and Beijing Zhong Lun Law Firm issued the Legal Opinions On Spin-off of Shenzhen YAKO
Automation Technology Co., Ltd. (Subsidiary) to List on the Growth Enterprise Market of Shenzhen Stock
Exchange. The independent directors expressed prior approval and independent opinions on this matter. The above
proposals were reviewed and approved by the 2021 Annual General Meeting of Shareholders on April 12, 2022.
For details, please refer to the Company's announcements on Securities Times and http://www.cninfo.com.cn
on March 22, 2022, March 26, 2022 and April 13, 2022.
XIV. Major matters of subsidiaries of the Company
Applicable □ Not applicable
1. In March 2022, the Company invested to establish a wholly-owned subsidiary, Shenzhen Topband Motor
Co., Ltd., with a registered capital of 10 million yuan, and included it in the scope of consolidated statements since
its establishment;
2. In March 2022, Shenzhen Topband Investment Co., Ltd., a wholly-owned subsidiary of the Company,
invested to establish a wholly-owned sub-subsidiary, Shenzhen Yueshang Robot Co., Ltd., with a registered capital
of 10 million yuan; Shenzhen Topband Investment Co., Ltd., a wholly-owned subsidiary of the Company, invested
to establish a wholly-owned subsidiary, Shenzhen Xiaoyou Aitu Innovation Technology Co., Ltd., with a registered
capital of 10 million yuan. All of them had been included in the scope of consolidated statements since the date of
establishment;
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Section VII Share Change and Shareholders
I. Share change
1. Share change
(Unit: Share)
Before this change Increase or decrease of change this time (+, -) After this change
Conversio
Issuan n of
Stock
ce of accumulat
Quantity Proportion divid Other Subtotal Quantity Proportion
new ion fund
end
shares into
shares
I. Shares with non-tradable
228,613,617 18.19% 721,250 721,250 229,334,867 18.04%
conditions
1. Shares held by the state 0.00%
2. Shares held by state-
0.00%
owned legal persons
3. Shares held by other
228,502,617 18.18% 721,250 721,250 229,223,867 18.03%
domestic capital
Including: shares held by
0.00%
domestic legal persons
Shares held by domestic
228,502,617 18.18% 721,250 721,250 229,223,867 18.03%
natural persons
4. Shares held by foreign
111,000 0.01% 111,000 0.01%
investment
Including: shares held by
0.00%
overseas legal persons
Shares held by overseas
111,000 0.01% 111,000 0.01%
natural persons
II. Shares with unlimited
1,028,364,455 81.81% 13,328,050 13,328,050 1,041,692,505 81.96%
tradable conditions
1. A shares 1,028,364,455 81.81% 13,328,050 13,328,050 1,041,692,505 81.96%
2. Domestic listed foreign
0.00% 0.00%
shares
3. Overseas listed foreign
0.00% 0.00%
shares
4. Others 0.00% 0.00%
III. Total number of shares 1,256,978,072 100.00% 14,049,300 14,049,300 1,271,027,372 100.00%
Reasons for share change
Applicable □ Not applicable
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The change in the Company's share capital during the reporting period was due to the joint effect of the
following: the third exercising period of the stock option incentive plan in 2018 met the relevant conditions, and
the incentive objects increased 14,049,300 shares for the Company's share capital through independent exercise.
Approval of share change
Applicable □ Not applicable
During the third exercising period of the Company's stock option incentive plan in 2018, the following
decision-making procedures have been executed:
1. On March 22, 2022, the 21st Meeting of the 7th Board of Directors and the 17th Meeting of the 7th Board
of Supervisors deliberated and approved the Proposal on the Third 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. Zhang Ran, Wu Mingli and other
20 incentive objects resigned from the Company due to personal reasons, therefore, they no longer meet conditions
of stock incentive objects; 2 incentive objects were rated as "unqualified" in terms of the performance appraisal and
22 incentive objects rated as "good" or "qualified". In other words, 75% of exercisable quota of the stock option in
the current year can be exercised. The above stock options that failed to meet the exercise conditions had been
canceled by the Company. 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 543 incentive objects would exercise their rights independently in the third
exercise period, with the total exercisable stock options of 14,049,300.
2. On April 26, 2022, the 25th Meeting of the 7th Board of Directors and the 21st Meeting of the 7th Board of
Supervisors reviewed and approved the Proposal on Adjusting the Exercise Price of the Stock Option Incentive Plan
in 2018. The 2021 annual equity distribution plan was implemented, and the exercise price was adjusted from 3.60
yuan per share to 3.55 yuan per share accordingly.
3. As of May 16, 2022, 14,049,300 stock options involving 543 incentive objects that meet the exercising
conditions has been exercised, increasing the number of share capitals.
Transfer of share change
Applicable □ Not applicable
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In the third exercise period of the 2018 stock option incentive plan, 14,049,300 stock options were approved
to be exercised. As of the end of the reporting period, due to the exercise of stock options, 14,049,300 shares were
increased, all of which had been registered under the names of each incentive object.
Implementation progress of share repurchase
Applicable □ Not applicable
The Company held the 21st Meeting of the 7th Board of Directors on March 22, 2022, reviewing and approving
the Proposal on the Repurchase of the Company's Shares, and disclosed the Report on Share Repurchase on March
22, 2022. As of June 30, 2022, the Company had repurchased a total of 3,980,800 shares through centralized bidding
transactions, accounting for 0.32% of the total share capital, with the lowest price of 7.93 yuan per share, the highest
price of 10.90 yuan per share and the total transaction amount of 39,336,755.65 yuan (excluding transaction costs).
The Company's repurchase plan is still under implementation.
Progress in the implementation of the reduction of share repurchase through centralized bidding
□ Applicable Not applicable
The impact of share changes on financial indicators such as basic earnings per share and diluted earnings per share
in the latest year and the latest period, net assets per share attributable to ordinary shareholders of the Company, etc.
Applicable □ Not applicable
For the impact of changes in shareholding on financial indicators such as the basic earnings per share, diluted
earnings per share, and net assets per share attributable to ordinary shareholders of the Company in the last year and
the most recent period, please refer to Section X Financial Report 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 Desterilization Increase Number of
Name of non-tradable number of number of non-tradable Reasons for non- Date of lifting sales
shareholder shares at the non-tradable non-tradable shares at the trading restriction
beginning of shares in the shares in the end of the
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the period current period current period
period
Executives lock-in
Wu Yongqiang 159,006,536 0 0 159,006,536 Not applicable
shares
Executives lock-in
Ji Shuhai 20,488,981 0 0 20,488,981 Not applicable
shares
Executive lock-up
shares and Stock-
Ma Wei 6,567,200 154,000 300,000 6,713,200 Not applicable
option-incentive
restricted stocks
Executive lock-up
shares and Stock-
Peng Ganquan 3,592,674 100,000 360,000 3,852,674 Not applicable
option-incentive
restricted stocks
Executive lock-up
shares and Stock-
Zheng Sibin 4,645,977 133,250 240,000 4,752,727 Not applicable
option-incentive
restricted stocks
Executive lock-up
shares and Stock-
Wen Zhaohui 1,944,095 45,750 180,000 2,078,345 Not applicable
option-incentive
restricted stocks
Executive lock-up
shares and Stock-
Xiang Wei 499,125 45,750 120,000 573,375 Not applicable
option-incentive
restricted stocks
Executives lock-in
Dai Huijuan 239,709 0 0 239,709 Not applicable
shares
From 2023 to 2025, the
Incentive objects Stock-option- sales restrictions will be
of restricted stock 31,629,320 0 0 31,629,320 incentive restricted lifted in batches according
incentive plan stocks to the performance
evaluation
Total 228,613,617 478,750 1,200,000 229,334,867 -- --
II. Issuance and listing of securities
□ Applicable Not applicable
III. Number of shareholders and shareholding situation of the Company
(Unit: Share)
Total number of preferred shareholders with
Total number of ordinary shareholders at
90,934 voting rights restored at the end of the 0
the end of the reporting period
reporting period (if any) (see Note 8)
Shareholding situation of ordinary shareholders holding more than 5% or top 10 ordinary shareholders
Number of Number of Pledge, marking or
Changes in Number of
Sharehol ordinary ordinary freezing
increase or ordinary shares
Nature of ding shares held at shares held
Name of shareholder decrease in held free from
shareholders proportio the end of the subject to Share
the reporting sales Quantity
n reporting sales status
period restrictions
period restrictions
Wu Yongqiang Domestic 16.68% 212,008,715 - 159,006,536 53,002,179 Pledge 52,210,000
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natural person
Hong Kong Securities Overseas legal -13,701,510
6.61% 84,012,640 0 84,012,640
Clearing Company Ltd. person
Domestic -
Ji Shuhai 2.15% 27,318,642 20,488,981 6,829,661
natural person
Orient Securities Co., Ltd. 15,403,200
- Zhonggeng Value
Other 1.86% 23,639,226 0 23,639,226
Pioneer Equity Securities
Investment Fund
Domestic 1,492,400
Xie Renguo 1.78% 22,641,988 0 22,641,988
natural person
Industrial and Commercial
Bank of China - China
Europe Value Selection Other 1.47% 18,672,787 18,672,787 0 18,672,787
Return Hybrid Securities
Investment Fund
Agricultural Bank of
China Limited - Cathay
Pacific Smart Car Equity Other 1.41% 17,885,785 -772,127 0 17,885,785
Securities Investment
Fund
Huatai Securities Co., Ltd.
- Zhonggeng Value Pilot
Other 1.31% 16,596,100 16,596,100 0 16,596,100
Hybrid Securities
Investment Fund
First State Investment
Management (UK)
Limited - First State Overseas legal
1.29% 16,424,155 -1,524,000 0 16,424,155
Global Umbrella Fund: person
First State Greater China
Growth Fund
Domestic
Li Hong 0.99% 12,619,876 12,619,876 0 12,619,876
natural person
The top 10 shareholders of strategic
investors or general legal persons due to
None
placement of new shares (if any) (see Note
3)
Among the top ten shareholders, Orient Securities Co., Ltd. - Zhonggeng Value Pioneer Equity
Securities Investment Fund and Huatai Securities Co., Ltd. - Zhonggeng Value Pilot Hybrid Securities
Description of the above shareholders'
Investment Fund are managed by the same fund manager, Zhonggeng Fund Management Co., Ltd. In
relationship or concerted action
addition to the afore-mentioned circumstances, the Company does not know whether there is an
associated relationship among the top ten shareholders, nor whether they are persons acting in concert.
Description of the above shareholders'
entrusting/entrusted voting rights and None
waiver of voting rights
Special explanations for the existence of
special repurchase accounts among the top None
10 shareholders (if any) (see Note 11)
Shareholding of the top 10 ordinary shareholders with unlimited tradable conditions
Number of ordinary shares held with Type of shares
Name of shareholder unlimited tradable conditions at the end
of the reporting period Type of shares Quantity
Hong Kong Securities Clearing Company
84,012,640 A shares 84,012,640
Ltd.
Wu Yongqiang 53,002,179 A shares 53,002,179
Orient Securities Co., Ltd. - Zhonggeng 23,639,226 A shares 23,639,226
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Value Pioneer Equity Securities Investment
Fund
Xie Renguo 22,641,988 A shares 22,641,988
Industrial and Commercial Bank of China -
China Europe Value Selection Return 18,672,787 A shares 18,672,787
Hybrid Securities Investment Fund
Agricultural Bank of China Limited -
Cathay Pacific Smart Car Equity Securities 17,885,785 A shares 17,885,785
Investment Fund
Huatai Securities Co., Ltd. - Zhonggeng
Value Pilot Hybrid Securities Investment 16,596,100 A shares 16,596,100
Fund
First State Investment Management (UK)
Limited - First State Global Umbrella Fund: 16,424,155 A shares 16,424,155
First State Greater China Growth Fund
Li Hong 12,619,876 A shares 12,619,876
Basic Endowment Insurance Fund 1206
12,602,356 A shares 12,602,356
Portfolio
Description of the relationship or concerted
action between the top 10 shareholders with
unlimited tradable shares and between the Not applicable
top 10 shareholders with unlimited tradable
shares and the top 10 shareholders
Description of the participation of the top
10 ordinary shareholders in securities None
margin trading (if any) (see Note 4)
Whether the top 10 ordinary shareholders and the top 10 ordinary shareholders with unlimited sales conditions carry
out the agreed repurchase transaction 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.
IV. Change in ownership percentage held by directors, supervisors and senior management
Applicable □ Not applicable
Number of Number
Number
Number of restricted of Number of
of
Number of additional Number of stocks restricted restricted
shares
shares held at shares shares held at granted at stocks stocks
Position reduced
Name Position the beginning held in the the end of the the granted granted at
status in the
of the period current period beginning in the the end of
current
(shares) period (shares) of the current the period
period
(shares) period period (shares)
(shares)
(shares) (shares)
Wu
Chairman Incumbent 212,008,715 0 0 212,008,715 0 0 0
Yongqiang
Ji Shuhai Director Incumbent 27,318,642 0 0 27,318,642 0 0 0
Zheng Director
Incumbent 6,016,970 320,000 0 6,336,970 533,000 0 533,000
Sibin and Deputy
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General
Manager
Director
and Deputy
Ma Wei Incumbent 8,550,934 400,000 0 8,950,934 616,000 0 616,000
General
Manager
Director
Peng and Deputy
Incumbent 4,656,900 480,000 0 5,136,900 400,000 0 400,000
Ganquan General
Manager
Wu Hang Director Incumbent 0 0 0 0 0 0 0
Huang Independent
Incumbent 0 0 0 0 0 0 0
Yuegang director
Hua Independent
Incumbent 0 0 0 0 0 0 0
Xiuping director
Li Independent
Incumbent 0 0 0 0 0 0 0
Xumeng director
Independent
Shi Yun Incumbent 0 0 0 0 0 0 0
director
Vice
General
Manager
Wen
and Incumbent 2,531,127 240,000 0 2,771,127 183,000 0 183,000
Zhaohui
Secretary of
the Board
of Directors
Chief
Xiang Wei financial Incumbent 604,500 160,000 0 764,500 183,000 0 183,000
officer
Dai
Supervisor Incumbent 319,612 0 0 319,612 0 0 0
Huijuan
Kang
Supervisor Incumbent 0 0 0 0 0 0 0
Weiquan
Chen
Supervisor Incumbent 0 0 0 0 0 0 0
Jinzhou
Total -- -- 262,007,400 1,600,000 0 263,607,400 1,915,000 0 1,915,000
V. Changes in controlling shareholders or actual controllers
Change of controlling shareholders during the reporting period
□ Applicable Not applicable
The controlling shareholder of the Company did not change during the reporting period.
Change of actual controller during the reporting period
□ Applicable Not applicable
The actual controller of the Company did not change during the reporting period.
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Section VIII Information on Preferred Shares
□ Applicable Not applicable
The Company did not have preferred shares during the reporting period.
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Section IX Relevant Information of Bonds
□ Applicable Not applicable
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Section X Financial Report
I. Audit report
Whether the semi-annual report had been audited
□ Yes No
The semi-annual financial report had not been audited.
II. Financial Statements
The unit of statements in the financial notes is: Yuan
1. Consolidated Balance Sheet
Prepared by: Shenzhen Topband Co., Ltd.
June 30, 2022
Unit: yuan
Items June 30, 2022 January 1, 2022
Current assets:
Monetary capital 1,592,155,704.45 1,767,580,056.07
Settlement of provisions
Lending funds
Tradable financial assets 272,602,542.73 214,999,336.74
Derivative financial assets
Notes receivable 95,010,569.89 161,659,470.21
Accounts receivable 2,383,927,027.15 2,188,161,465.48
Receivables financing 186,797,543.01 36,902,507.85
Prepayments 79,609,133.72 41,320,285.02
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Other receivables 56,585,892.25 50,156,221.82
Including: interest receivable
Dividends receivable
Repurchase of financial assets for resale
Inventory 2,200,490,689.46 2,184,402,766.04
Contractual assets
Assets held for sale
Non-current assets due within one year
Other current assets 121,602,690.62 113,071,619.93
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Total current assets 6,988,781,793.28 6,758,253,729.16
Non-current assets:
Loans and advances granted
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 24,629,564.82 26,119,127.82
Other equity instrument investment
Other non-current financial assets
Investment property 107,656,655.34 86,975,114.31
Fixed assets 1,720,571,118.72 1,299,517,887.54
Construction in progress 143,094,482.19 495,248,025.93
Productive biological assets
Oil and gas assets
Right-of-use assets 55,212,987.55 58,168,151.88
Intangible assets 443,953,334.22 435,639,773.29
Development expenditure 86,872,635.77 66,358,407.48
Goodwill 110,732,042.84 110,732,042.84
Long-term deferred expenses 92,574,156.03 95,151,616.38
Deferred tax assets 93,397,197.17 102,787,097.36
Other non-current assets 307,315,620.42 72,041,428.40
Total non-current assets 3,186,009,795.07 2,848,738,673.23
Total assets 10,174,791,588.35 9,606,992,402.39
Current liabilities:
Short-term loans 724,668,584.75 409,531,107.26
Loan from the Central Bank
Borrowed funds
Tradable financial liabilities
Derivative financial liabilities
Notes payable 1,253,202,540.98 1,231,106,148.24
Accounts payable 1,524,099,572.76 1,511,284,996.56
Accounts collected in advance 974,629.25 353,895.16
Contractual liabilities 140,315,780.40 93,328,006.70
Financial assets sold for repurchase
Deposit absorption and interbank deposit
Acting trading securities
Acting underwriting securities
Employee compensation payable 139,053,053.22 198,863,796.02
Taxes payable 68,877,876.53 16,254,542.45
Other account payable 303,153,820.38 318,632,275.66
Including: interest payable
Dividends payable
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Service charges and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 57,373,923.45 47,721,695.74
Other current liabilities 51,893,429.06 107,064,543.82
Total current liabilities 4,263,613,210.78 3,934,141,007.61
Non-current liabilities:
Insurance contract reserve
Long-term loans 450,511,381.65 475,020,000.00
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities 38,645,239.64 40,290,402.14
Long-term payables
Long-term employee compensation payable
Estimated liabilities
Deferred income 15,381,300.00 14,385,200.00
Deferred tax liabilities 29,064,435.66 26,280,456.34
Other non-current liabilities
Total non-current liabilities 533,602,356.95 555,976,058.48
Total liabilities 4,797,215,567.73 4,490,117,066.09
Owner's equity:
Share capital 1,271,027,372.00 1,256,978,072.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital public reserve 2,220,790,003.13 2,140,053,149.74
Minus: treasury shares 281,870,057.36 242,525,433.60
Other comprehensive income -73,677,587.01 -91,831,496.88
Special reserve
Surplus reserves 186,397,631.76 186,397,631.76
General risk provision
Retained earnings 1,963,038,746.39 1,779,243,483.61
Total owners' equity attributable to the parent
5,285,706,108.91 5,028,315,406.63
company
Minority shareholders' equity 91,869,911.71 88,559,929.67
Total owners' equity 5,377,576,020.62 5,116,875,336.30
Total liabilities and owners' equity 10,174,791,588.35 9,606,992,402.39
Legal Representative: Wu Yongqiang Accounting Head: Xiang Wei Accounting Department Head: Luo Muchen
2. Balance Sheet of Parent Company
Unit: yuan
Items June 30, 2022 January 1, 2022
Current assets:
Monetary capital 765,394,438.05 1,110,855,192.86
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Tradable financial assets 187,011,836.74 187,011,836.74
Derivative financial assets
Notes receivable 23,859,650.75 50,356,382.14
Accounts receivable 1,521,964,444.84 1,496,921,254.34
Receivables financing 141,443,890.67 13,909,195.16
Prepayments 12,559,322.70 11,308,739.07
Other receivables 254,051,041.69 141,619,648.22
Including: interest receivable
Dividends receivable
Inventory 289,102,986.05 343,548,795.39
Contractual assets
Assets held for sale
Non-current assets due within one year
Other current assets 11,244,101.19 14,074,292.52
Total current assets 3,206,631,712.68 3,369,605,336.44
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 3,842,139,482.67 2,947,556,465.89
Other equity instrument investment
Other non-current financial assets
Investment property
Fixed assets 142,527,439.98 145,229,190.35
Construction in progress 16,149,521.86 6,486,761.99
Productive biological assets
Oil and gas assets
Right-of-use assets 2,643,193.91 554,157.99
Intangible assets 164,571,403.71 161,311,708.12
Development expenditure 55,478,555.44 43,638,980.21
Goodwill
Long-term deferred expenses 17,984,940.60 20,573,462.40
Deferred tax assets 29,897,120.33 55,938,073.37
Other non-current assets 8,175,127.08 8,160,527.96
Total non-current assets 4,279,566,785.58 3,389,449,328.28
Total assets 7,486,198,498.26 6,759,054,664.72
Current liabilities:
Short-term loans 151,800,000.00 153,591,779.50
Tradable financial liabilities
Derivative financial liabilities
Notes payable 1,102,041,415.45 990,389,640.00
Accounts payable 483,782,841.62 368,537,246.64
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Accounts collected in advance
Contractual liabilities 61,133,248.93 37,061,438.92
Employee compensation payable 81,235,875.16 105,820,526.01
Taxes payable 18,097,127.89 10,652,318.75
Other account payable 1,035,368,949.02 568,675,865.75
Including: interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 1,191,297.13 326,602.76
Other current liabilities 7,470,248.34 38,799,661.21
Total current liabilities 2,942,121,003.54 2,273,855,079.54
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities 1,549,660.92 221,776.58
Long-term payables
Long-term employee compensation payable
Estimated liabilities
Deferred income 6,237,500.00 9,053,500.00
Deferred tax liabilities 20,777,131.09 20,935,893.00
Other non-current liabilities
Total non-current liabilities 28,564,292.01 30,211,169.58
Total liabilities 2,970,685,295.55 2,304,066,249.12
Owner's equity:
Share capital 1,271,027,372.00 1,256,978,072.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital public reserve 2,268,311,853.78 2,189,685,216.22
Minus: treasury shares 281,870,057.36 242,525,433.60
Other comprehensive income 662,376.02 370,109.41
Special reserve
Surplus reserves 186,369,113.30 186,369,113.30
Retained earnings 1,071,012,544.97 1,064,111,338.27
Total owners' equity 4,515,513,202.71 4,454,988,415.60
Total liabilities and owners' equity 7,486,198,498.26 6,759,054,664.72
3. Consolidated income statement
Unit: yuan
Semi-annual data in Semi-annual data in
Items
2022 2021
I. Total operating income 4,228,003,137.57 3,644,045,612.40
Including: operating income 4,228,003,137.57 3,644,045,612.40
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Interest income
Premium earned
Service charge and commission income
II. Total operating cost 3,949,799,858.52 3,178,835,573.38
Including: operating cost 3,421,434,029.61 2,765,295,741.39
Interest expense
Service charge and commission payment
Surrender value
Net compensation expenditure
Net reserve amount set aside for insurance liability
Policy dividend payment
Reinsurance expenses
Taxes and surcharges 21,060,144.67 13,278,244.24
Selling expenses 125,180,825.48 76,889,884.59
Management expenses 160,894,026.46 94,842,819.69
R&D expenses 284,847,207.92 174,767,726.31
Finance expenses -63,616,375.63 53,761,157.16
Including: interest expenses 14,644,344.03 6,676,232.42
Interest income 6,486,250.66 4,397,537.66
Plus: other income 17,072,867.62 12,006,181.38
Return on investment (loss marked with "-") -1,247,660.53 23,876,616.37
Including: investment income from associated enterprises and joint
-2,142,224.73 -1,390,590.78
ventures
Derecognition of income for financial assets measured at
amortized cost
Exchange gains (loss marked with "-")
Net exposure hedge gain (loss marked with "-")
Loss from fair value change (income marked with "-") 31,603,205.99 98,312,768.52
Credit impairment loss (loss marked with "-") -10,907,334.70 -15,163,819.96
Asset impairment loss (loss marked with "-") -46,406,707.31 -99,292,387.41
Income from disposal of assets (loss marked with "-") -284,674.88 -317,178.75
III. Operating profits (losses marked with "-") 268,032,975.24 484,632,219.17
Plus: non-operating income 1,154,014.66 1,581,081.80
Minus: non-operating expenses 3,118,394.89 4,486,165.70
IV. Total profit (total loss marked with "-") 266,068,595.01 481,727,135.27
Minus: income tax expenses 17,807,321.21 45,639,842.16
V. Net profit (net loss marked with "-") 248,261,273.80 436,087,293.11
(I) Classification according to business continuity
1. Net profit from continuing operations (net loss marked with "-") 248,261,273.80 436,087,293.11
2. Net profit of discontinued operation (net loss marked with "-")
(II) Classification according to ownership
1. Net profits attributable to the owners of the parent company 246,508,271.38 428,185,704.03
2. Profits and losses of minority shareholders 1,753,002.42 7,901,589.08
VI. Net after-tax amount of other comprehensive income 18,153,909.87 -18,008,020.97
Net after-tax amount of other comprehensive income attributable to the owner 18,153,909.87 -18,008,020.97
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of the parent company
(I) Other comprehensive income that cannot be reclassified into profits or
losses
1. Re-measurement of changes in the defined benefit plans
2. Other comprehensive income not available for transferring to profits or
losses under equity method
3. Changes in fair value of other equity instrument investment
4. Changes in fair value of enterprise's own credit risk
5. Others
(II) Other comprehensive income that is reclassified into profits and losses 18,153,909.87 -18,008,020.97
1. Other comprehensive income that can be transferred into profits or
losses under the equity method
2. Changes in Fair Value of Other Debt Investments
3. Amount of financial assets reclassified into other comprehensive
income
4. Provisions for credit impairment of other debt investment
5. Cash flow hedging reserve
6. Difference from conversion of foreign currency financial statements 18,153,909.87 -17,755,436.98
7. Others -252,583.99
Net after-tax amount of other comprehensive income attributed to the minority
of shareholders
VII. Total comprehensive income 266,415,183.67 418,079,272.14
Total comprehensive income attributable to the owners of the parent company 264,662,181.25 410,177,683.06
Total consolidated income attributable to minority shareholders 1,753,002.42 7,901,589.08
VIII. Earnings per share:
(I) Basic earnings per share 0.20 0.38
(II) Diluted earnings per share 0.20 0.37
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.
Legal Representative: Wu Yongqiang Accounting Head: Xiang Wei Accounting Department Head: Luo Muchen
4. Income Statement of Parent Company
Unit: yuan
Semi-annual data Semi-annual data
Items
in 2022 in 2021
I. Operating income 2,459,847,476.95 2,161,935,231.31
Minus: operating cost 2,093,560,411.93 1,795,042,018.32
Taxes and surcharges 6,995,342.78 4,438,662.57
Selling expenses 83,222,342.05 46,844,689.71
Management expenses 90,353,899.12 58,380,674.25
R&D expenses 160,850,627.57 93,574,802.25
Finance expenses -47,026,844.29 32,579,149.03
Including: interest expenses 7,006,014.82 1,261,238.91
Interest income 3,453,311.38 2,906,961.53
Plus: other income 10,029,658.78 4,582,626.08
Return on investment (loss marked with "-") -31,393.79 37,623,948.49
Including: investment income from associated enterprises and joint ventures -31,393.79 -495,808.80
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Income from derecognition of financial assets measured at amortized
0.00 0.00
cost (loss marked with "-")
Net exposure hedge gain (loss marked with "-") 0.00 0.00
Loss from fair value change (income marked with "-") 0.00 98,312,768.52
Credit impairment loss (loss marked with "-") -6,841,292.71 -9,738,998.19
Asset impairment loss (loss marked with "-") -4,678,021.21 -5,238,034.46
Income from disposal of assets (loss marked with "-") 73,024.55 699,460.42
II. Operating profit (loss marked with "-") 70,443,673.41 257,317,006.04
Plus: non-operating income 493,670.30 154,957.57
Minus: non-operating expenses 1,372,699.03 2,818,249.19
III. Total profit (total loss marked with "-") 69,564,644.68 254,653,714.42
Minus: income tax expenses -49,570.62 30,387,565.98
IV. Net profit (net loss marked with "-") 69,614,215.30 224,266,148.44
(I) Net profit from continuing operation (net loss marked with "-") 69,614,215.30 224,266,148.44
(II) Net profit from termination of operation (net loss marked with "-")
V. Net after-tax amount of other comprehensive income 0.00 -252,583.99
(I) Other comprehensive income that cannot be reclassified into profits or losses 0.00 0.00
1. Re-measurement of changes in the defined benefit plans 0.00 0.00
2. Other comprehensive income not available for transferring to profits or losses
0.00 0.00
under equity method
3. Changes in fair value of other equity instrument investment 0.00 0.00
4. Changes in fair value of enterprise's own credit risk 0.00 0.00
5. Others 0.00 0.00
(II) Other comprehensive income that is reclassified into profits and losses 0.00 -252,583.99
1. Other comprehensive income that can be transferred into profits or losses
0.00 0.00
under the equity method
2. Changes in Fair Value of Other Debt Investments 0.00 0.00
3. Amount of financial assets reclassified into other comprehensive income 0.00 0.00
4. Provisions for credit impairment of other debt investment 0.00 0.00
5. Cash flow hedging reserve 0.00 0.00
6. Difference from conversion of foreign currency financial statements 0.00 0.00
7. Others 0.00 -252,583.99
VI. Total comprehensive income 69,614,215.30 224,013,564.45
VII. Earnings per share:
(I) Basic earnings per share 0.06 0.20
(II) Diluted earnings per share 0.06 0.20
5. Consolidated Cash Flow Statement
Unit: yuan
Semi-annual data in Semi-annual data in
Items
2022 2021
I. Cash flow from operating activities:
Cash received from sales of goods or rendering of services 4,173,711,961.16 3,223,676,867.56
Net increase in customer deposits and interbank deposits
Net increase in borrowing from the central bank
Net increase amount of borrowings from other financial institutions
Cash from receipt of original insurance contract premiums
Receipt of net cash for reinsurance operations
Net increment from the insured' deposit and investment
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Cash from receipt of interest, service charges and commissions
Net increase in borrowed funds
Net increase in funds from repurchase operations
Net cash received by agents trading securities
Tax rebates received 220,636,224.87 211,748,519.91
Other cash received related to operating activities 45,888,629.79 31,046,302.40
Subtotal of cash inflow from operating activities 4,440,236,815.82 3,466,471,689.87
Cash paid for purchasing goods and accepting labor services 3,383,604,409.36 2,793,464,547.98
Net increase in loans and advances of clients
Net increase in deposits with central banks and interbanks
Cash in compensation funds paid for the original insurance contract
Net increase in lending funds
Cash for payment of interest, service charges and commissions
Cash for payment of policy dividends
Cash payments to and for employees 776,482,113.10 671,904,067.00
Various taxes paid 76,036,220.46 113,796,964.36
Other cash paid in connection with operating activities 129,227,817.51 113,011,848.65
Subtotal of cash outflow from operating activities 4,365,350,560.43 3,692,177,427.99
Net cash flow from operating activities 74,886,255.39 -225,705,738.12
II. Cash flow from investing activities:
Cash received from investment recovery 47,000,000.00 349,382,339.75
Cash received as return on an investment 129,168.71 25,253,304.38
Net cash recouped from disposal of fixed assets, intangible assets, and other
273,431.00 815,062.65
long-term assets
Net cash from disposal of subsidiaries and other business units
Other cash received relating to investment activities 0.00 0.00
Subtotal of cash inflow from investment activities 47,402,599.71 375,450,706.78
Cash paid for the purchase and construction of fixed assets, intangible assets
453,359,295.98 402,240,855.04
and other long-term assets
Cash paid for investment 82,000,000.00 371,250,000.00
Net increase in pledged loans
Net cash paid for acquiring subsidiaries and other business units 0.00 11,282,386.79
Other cash paid related to investment activities 0.00 0.00
Subtotal of cash outflow from investment activities 535,359,295.98 784,773,241.83
Net cash flow from investment activities -487,956,696.27 -409,322,535.05
III. Cash flow from financing activities:
Cash received from absorbing investment 49,875,015.00 1,078,017,195.75
Including: cash received by subsidiaries' absorption of minority shareholders'
investment
Cash received from loan 435,000,000.00 255,055,700.02
Other cash received relating to financing activities 25,597,956.24 18,039,024.44
Subtotal of cash inflow from financing activities 510,472,971.24 1,351,111,920.21
Cash paid for repayments of debts 135,712,618.35 527,265,500.00
Cash paid to distribute dividends, profits or pay interest 79,068,993.14 65,867,823.74
Including: dividends and profits paid by subsidiaries to minority shareholders
Other cash paid related to financing activities 65,429,693.55 9,060,059.78
Subtotal of cash outflow from financing activities 280,211,305.04 602,193,383.52
Net cash flow from financing activities 230,261,666.20 748,918,536.69
IV. Impact of exchange rate fluctuations on cash and cash equivalents 20,486,535.72 -26,342,339.58
V. Net increase in cash and cash equivalents -162,322,238.96 87,547,923.94
Plus: balance of cash and cash equivalents at the beginning of the period 1,736,104,958.20 1,196,835,834.93
VI. Balance of cash and cash equivalents at the end of the period 1,573,782,719.24 1,284,383,758.87
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6. Cash flow statement of the parent company
Unit: yuan
Semi-annual data in Semi-annual data in
Items
2022 2021
I. Cash flow from operating activities:
Cash received from sales of goods or rendering of services 2,188,764,560.89 2,021,396,547.85
Tax rebates received 133,415,379.85 142,309,354.93
Other cash received related to operating activities 1,933,981,335.43 424,206,181.63
Subtotal of cash inflow from operating activities 4,256,161,276.17 2,587,912,084.41
Cash paid for purchasing goods and accepting labor services 1,757,859,328.07 2,356,322,702.66
Cash payments to and for employees 331,679,465.82 269,073,726.98
Various taxes paid 11,543,063.13 44,861,325.36
Other cash paid in connection with operating activities 1,510,278,958.46 392,382,205.31
Subtotal of cash outflow from operating activities 3,611,360,815.48 3,062,639,960.31
Net cash flow from operating activities 644,800,460.69 -474,727,875.90
II. Cash flow from investing activities:
Cash received from investment recovery 0.00 512,339.75
Cash received as return on an investment 0.00 38,119,757.29
Net cash recouped from disposal of fixed assets, intangible assets, and other
0.00 564,922.65
long-term assets
Net cash from disposal of subsidiaries and other business units 0.00 0.00
Other cash received relating to investment activities 0.00 0.00
Subtotal of cash inflow from investment activities 0.00 39,197,019.69
Cash paid for the purchase and construction of fixed assets, intangible assets
63,613,623.87 71,540,415.92
and other long-term assets
Cash paid for investment 874,604,000.00 279,794,442.93
Net cash paid for acquiring subsidiaries and other business units 0.00 0.00
Other cash paid related to investment activities 0.00 0.00
Subtotal of cash outflow from investment activities 938,217,623.87 351,334,858.85
Net cash flow from investment activities -938,217,623.87 -312,137,839.16
III. Cash flow from financing activities:
Cash received from absorbing investment 49,875,015.00 1,078,017,195.75
Cash received from loan 120,000,000.00 170,000,000.00
Other cash received relating to financing activities 25,597,956.24 8,672,342.48
Subtotal of cash inflow from financing activities 195,472,971.24 1,256,689,538.23
Cash paid for repayments of debts 120,000,000.00 218,569,500.00
Cash paid to distribute dividends, profits or pay interest 70,323,199.71 57,431,645.93
Other cash paid related to financing activities 55,485,215.43 2,494,819.08
Subtotal of cash outflow from financing activities 245,808,415.14 278,495,965.01
Net cash flow from financing activities -50,335,443.90 978,193,573.22
IV. Impact of exchange rate fluctuations on cash and cash equivalents 9,192,396.84 -9,917,875.85
V. Net increase in cash and cash equivalents -334,560,210.24 181,409,982.31
Plus: balance of cash and cash equivalents at the beginning of the period 1,085,257,236.62 696,490,741.04
VI. Balance of cash and cash equivalents at the end of the period 750,697,026.38 877,900,723.35
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7. Consolidated statement of changes in owner's equity
Amount in the current period
Unit: yuan
Semi-annual data in 2022
Owner's equity attributable to the parent company
Items Other equity instruments General Minority
Minus: Other Specia Total owners'
Capital public Surplus risk Retained Othe shareholders
Share capital Preferre Perpetua Othe treasury comprehensiv l Subtotal ' equity equity
reserve reserves provisio earnings r
d shares l bonds r shares e income reserve
n
I. Ending
1,256,978,072.0 2,140,053,149.7 242,525,433.6 186,397,631.7 1,779,243,483.6 5,028,315,406.6
balance of last 0.00 0.00 0.00 -91,831,496.88 0 0.00 0.00 88,559,929.67 5,116,875,336.30
0 4 0 6 1 3
year
Plus:
changes in
0.00
accounting
policies
Early error
0.00
correction
Merger of
enterprises
0.00
under the
same control
Other 0.00
II. Beginning
1,256,978,072.0 2,140,053,149.7 242,525,433.6 186,397,631.7 1,779,243,483.6 5,028,315,406.6
balance of the 0.00 0.00 0.00 -91,831,496.88 0 0.00 88,559,929.67 5,116,875,336.30
0 4 0 6 1 3
current year
III. Amount of
changes in
increase or
decrease in the
14,049,300.00 0.00 0.00 0.00 80,736,853.39 39,344,623.76 18,153,909.87 0 0.00 0.00 183,795,262.78 257,390,702.28 3,309,982.04 260,700,684.32
current period
(decrease
marked with "-
")
(I) Total
comprehensiv 18,153,909.87 246,508,271.38 264,662,181.25 1,753,002.42 266,415,183.67
e income
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(II) Capital
invested and
14,049,300.00 82,293,833.01 39,344,623.76 56,998,509.25 56,998,509.25
reduced by
owners
1.Ordinary
shares
14,049,300.00 54,522,812.37 68,572,112.37 68,572,112.37
invested by
owners
2.Capital
contributed by
holders of 0.00
other equity
instruments
3.Amount of
share-based
payment 27,771,020.64 27,771,020.64 27,771,020.64
included in
owner's equity
4.Other 39,344,623.76 -39,344,623.76 -39,344,623.76
(III) Profit
-62,713,008.60 -62,713,008.60 -62,713,008.60
distribution
1.Withdraw
surplus reserve
2.Withdrawal
of general risk
provision
3.Distribution
to owners (or -62,713,008.60 -62,713,008.60 -62,713,008.60
shareholders)
4.Other
(IV) Internal
carryover of
owner's equity
1.Provident
funds
converted into
capital (or
capital stock)
2.Conversion
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of surplus
reserves to
additional
capital (or
capital stock)
3.Surplus
public reserve
to compensate
losses
4.Change of
defined benefit
plans carried
forward to
retained
earnings
5.Other
comprehensiv
e income
carried
forward into
retained
earnings
6.Other
(V) Special
reserve
1.Amount
withdrawn in
the current
period
2.Amount
used in the
current period
(VI) Others -1,556,979.62 -1,556,979.62 1,556,979.62
IV. Ending
1,271,027,372.0 2,220,790,003.1 281,870,057.3 186,397,631.7 1,963,038,746.3 5,285,706,108.9 5,377,576,020.6
balance of the -73,677,587.01 91,869,911.71
0 3 6 6 9 1 2
current year
Amount of the last year
Unit: yuan
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Semi-annual data in 2021
Owner's equity attributable to the parent company
Items Other equity instruments General Minority
Minus: Other Specia Total owners'
Capital public Surplus risk Retained Othe shareholders
Share capital Preferre Perpetua Othe treasury comprehensiv l Subtotal equity
reserve reserves provisio earnings r ' equity
d shares l bonds r shares e income reserve
n
I. Ending
1,135,216,809.0 80,017,965.6 151,359,957.5 1,324,944,369.9 3,463,681,980.5 3,548,674,131.9
balance of last 956,734,039.75 -24,555,229.97 84,992,151.43
0 8 3 1 4 7
year
Plus:
changes in
accounting
policies
Early error
correction
Merger of
enterprises
under the same
control
Othe
r
II. Beginning
1,135,216,809.0 80,017,965.6 151,359,957.5 1,324,944,369.9 3,463,681,980.5 3,548,674,131.9
balance of the 956,734,039.75 -24,555,229.97 84,992,151.43
0 8 3 1 4 7
current year
III. Amount of
changes in
increase or
decrease in the 1,003,352,341.6 1,460,002,363.2 1,469,126,366.7
103,037,863.00 0.00 0.00 -18,008,020.97 0.00 371,620,179.58 9,124,003.49
current period 5 6 5
(decrease
marked with "-
")
(I) Total
comprehensive -18,008,020.97 428,185,704.03 410,177,683.06 7,901,589.08 418,079,272.14
income
(II) Capital
1,079,701,609.4 1,079,701,609.4
invested and 103,037,863.00 976,663,746.46
6 6
reduced by
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owners
1.Ordinary
1,085,934,442.7 1,085,934,442.7
shares invested 103,037,863.00 982,896,579.72
2 2
by owners
2.Capital
contributed by
holders of
other equity
instruments
3.Amount of
share-based
payment -6,232,833.26 -6,232,833.26 -6,232,833.26
included in
owner's equity
4.Other
(III) Profit
-56,565,524.45 -56,565,524.45 -5,197,835.08 -61,763,359.53
distribution
1.Withdraw
surplus reserve
2.Withdrawal
of general risk
provision
3.Distribution
to owners (or -56,565,524.45 -56,565,524.45 -5,197,835.08 -61,763,359.53
shareholders)
4.Other
(IV) Internal
carryover of
owner's equity
1.Provident
funds
converted into
capital (or
capital stock)
2.Conversion
of surplus
reserves to
additional
capital (or
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capital stock)
3.Surplus
public reserve
to compensate
losses
4.Change of
defined benefit
plans carried
forward to
retained
earnings
5.Other
comprehensive
income carried
forward into
retained
earnings
6.Other
(V) Special
reserve
1.Amount
withdrawn in
the current
period
2.Amount used
in the current
period
(VI) Others 26,688,595.19 26,688,595.19 6,420,249.49 33,108,844.68
IV. Ending
1,238,254,672.0 1,960,086,381.4 80,017,965.6 151,359,957.5 1,696,564,549.4 4,923,684,343.8 5,017,800,498.7
balance of the -42,563,250.94 94,116,154.92
0 0 8 3 9 0 2
current year
8. Parent company's statement of changes in owner's equity
Amount in the current period
Unit: yuan
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Semi-annual data in 2022
Other equity instruments Other
Items Capital public Minus: Special Surplus Retained Total owners'
Share capital Preferred Perpetual comprehensive Other
Other reserve treasury shares reserve reserves earnings equity
shares bonds income
I. 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
last year
Plus: changes
in accounting
policies
Early error
correction
Other
II. Beginning
balance of the 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
current year
III. Amount of
changes in increase
or decrease in the
14,049,300.00 78,626,637.56 39,344,623.76 292,266.61 6,901,206.70 60,524,787.11
current period
(decrease marked
with "-")
(I) Total
comprehensive 292,266.61 69,614,215.30 69,906,481.91
income
(II) Capital invested
and reduced by 14,049,300.00 78,626,637.56 39,344,623.76 53,331,313.80
owners
1.Ordinary shares
14,049,300.00 54,522,812.37 68,572,112.37
invested by owners
2.Capital
contributed by
holders of other
equity instruments
3.Amount of share-
based payment
24,103,825.19 24,103,825.19
included in owner's
equity
4.Other 39,344,623.76 -39,344,623.76
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(III) Profit
-62,713,008.60 -62,713,008.60
distribution
1.Withdraw surplus
reserve
2.Distribution to
owners (or -62,713,008.60 -62,713,008.60
shareholders)
3.Other
(IV) Internal
carryover of owner's
equity
1.Provident funds
converted into
capital (or capital
stock)
2.Conversion of
surplus reserves to
additional capital (or
capital stock)
3.Surplus public
reserve to
compensate losses
4.Change of defined
benefit plans carried
forward to retained
earnings
5.Other
comprehensive
income carried
forward into
retained earnings
6.Other
(V) Special reserve
1.Amount
withdrawn in the
current period
2.Amount used in
the current period
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(VI) Others
IV. Ending balance
1,271,027,372.00 2,268,311,853.78 281,870,057.36 662,376.02 186,369,113.30 1,071,012,544.97 4,515,513,202.71
of the current year
Amount of the last year
Unit: yuan
Semi-annual data in 2021
Other equity instruments Minus: Other
Items Capital public Special Surplus Retained Total owners'
Share capital Preferred Perpetual treasury comprehensive Other
Other reserve reserve reserves earnings equity
shares bonds shares 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. Beginning balance
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
of the current year
III. Amount of changes
in increase or decrease
in the current period 103,037,863.00 1,003,519,387.80 -252,583.99 167,700,623.99 1,274,005,290.80
(decrease marked with
"-")
(I) Total comprehensive
-252,583.99 224,266,148.44 224,013,564.45
income
(II) Capital invested
103,037,863.00 976,663,746.46 1,079,701,609.46
and reduced by owners
1.Ordinary shares
103,037,863.00 982,896,579.72 1,085,934,442.72
invested by owners
2.Capital contributed
by holders of other
equity instruments
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3.Amount of share-
based payment
-6,232,833.26 -6,232,833.26
included in owner's
equity
4.Other
(III) Profit distribution -56,565,524.45 -56,565,524.45
1.Withdraw surplus
reserve
2.Distribution to
owners (or -56,565,524.45 -56,565,524.45
shareholders)
3.Other
(IV) Internal carryover
of owner's equity
1.Provident funds
converted into capital
(or capital stock)
2.Conversion of surplus
reserves to additional
capital (or capital
stock)
3.Surplus public
reserve to compensate
losses
4.Change of defined
benefit plans carried
forward to retained
earnings
5.Other comprehensive
income carried forward
into retained earnings
6.Other
(V) Special reserve
1.Amount withdrawn in
the current period
2.Amount used in the
current period
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(VI) Others 26,855,641.34 26,855,641.34
IV. Ending balance of
1,238,254,672.00 2,010,834,687.21 80,017,965.68 5,316,991.05 151,331,439.07 973,038,418.68 4,298,758,242.33
the current year
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III. Basic information of the Company
Registered Chinese name of the Company: 深圳拓邦股份有限公司
Address: Room 413, Area B, Tsinghua University Research Institute, High-tech Industrial Park, Yuehai Street,
Nanshan District, Shenzhen
Legal representative: Wu Yongqiang
Registered capital: 1,271,027,372 yuan
Capital stock: 1,271,027,372 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 R&D, production and sales.
Business term: sustainable operation
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 Electronics & 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 Electronics & Technology Co., Ltd. would be reorganized into a joint stock
limited company jointly by five shareholders, namely Wu Yongqiang, Ji Shuhai, Zhuhai Tsinghua Science 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 Certified Public Accountants issued the Capital Verification
Report (SPSYZ (2002) No. 67) to verify the share capital of the Company. On August 16, 2002, the Company was
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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 18,080,000 A 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 Certified Public Accountants 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 Certified Public
Accountants Co., Ltd., and the capital verification report SPSYZ [2008] No. 179 has been issued.
The 6th Meeting of the 3rd Board of Directors of the Company in 2009 deliberated and approved the Plan on
the Distribution of Mid-term Profits in 2009: Based on the total share capital of the Company at the end of the
reporting period of 100,000,000 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 40,000,000 shares. After the increase by
conversion, the total share capital of the Company increased from 100,000,000 shares to 140,000,000 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 140,000,000 shares as of December 31, 2009, the
Company will pay cash dividends of 1.50 yuan (tax included) per 10 shares, and based on the total share capital of
140,000,000 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 140,000,000 shares to 168,000,000 shares.
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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 168,000,000 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 168,000,000 shares to 218,400,000 million shares.
According to the resolutions of the 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 A shares 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 in 2015 approved at the 18th Meeting of the
5th Board of Directors, the Company granted 359 incentive objects restricted stocks 17,633,000 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 A shares to specific investors on March 28, 2016, with the issuance price of 16.66 yuan per share. The
registered capital of the Company was increased to 298,520,813.00 yuan after 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
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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 2015 Annual General Meeting of Shareholders of the Company was held on May 11, 2016, and the 2015
annual equity distribution plan was approved. Based on the Company's existing total share capital of 301,520,013
shares, the Company distributed 1.50 yuan in cash to all shareholders for every 10 shares. At the same time, the
Company increased 5 shares to all shareholders for every 10 shares with the capital accumulation fund, and the
capital increased by 150,760,006 yuan. After the capital increased, the registered capital of the Company was
increased to 453,802,819.00 yuan.
According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated and
approved by the 28th Meeting of the 5th Board of Directors of the Company held on October 26, 2016, as for the
incentive object who resigned due to personal reasons and no longer met the conditions of becoming the incentive
object, those 331,500 shares of restricted stocks that have not been unlocked held by the incentive object were
repurchased and cancelled. After cancellation, the registered capital of the Company was reduced to 453,471,319.00
yuan.
The 2016 Annual General Meeting of Shareholders of the Company was held on April 11, 2017, and the 2016
annual equity distribution plan was approved. Based on the Company's existing total share capital of 453,471,319
shares, the Company distributed 1.50 yuan in cash to all shareholders for every 10 shares. At the same time, the
Company increased 5 shares to all shareholders for every 10 shares with the capital accumulation fund, and the
capital increased by 226,735,659 yuan. After the capital increased, the registered capital of the Company was
increased to 680,206,978.00 yuan.
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
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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 2017 Annual General Meeting of Shareholders of the Company was held on April 17, 2018, and the 2017
annual equity distribution plan was approved. Based on the Company's existing total share capital of 679,860,478
shares, the Company distributed 1.0 yuan in cash to all shareholders for every 10 shares. At the same time, the
Company increased 5 shares to all shareholders for every 10 shares with the capital accumulation fund, and the
capital increased by 339,930,239.00 yuan. After the capital increased, 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 session 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, 2019. Since
September 16, 2019, bondholders can exercise the right to transfer shares. As of December 31, 2019, the Company
has transferred 2,223.00 shares of bonds and increased the share capital by 40,077.00 yuan. After the share transfer,
the registered capital of the Company will increase to 1,018,775,769.00 yuan.
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The 22nd Meeting of the 6th Board of Directors deliberated and approved the Proposal on the First Exercise
Period of 2018 Stock Option Incentive Plan Meeting the Exercise Conditions and Exercisable Rights and Proposal
on Adjustment of the Incentive Objects and the Number of Stock Options of 2018 Stock Option Incentive Plan:
there are 606 incentive objects in the first exercise period of the 2018 stock option incentive plan in the Company,
in total of 12,014,700 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 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 Topband 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 stocks 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 stocks 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 stocks,
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.
On March 18, 2022, the 21st Meeting of the 7th Board of Directors and the 17th Meeting of the 7th Board of
Supervisors deliberated and approved the Proposal on the Third Exercise Period of 2018 Stock Option Incentive
Plan Meeting the Exercise Conditions and Exercisable Rights and the Proposal on Adjustment of the Incentive
Objects and the Number of Stock Options of 2018 Stock Option Incentive Plan. There were 543 incentive objects
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in the third exercise period to exercise their rights independently and a total of 14,049,300 stock options meeting
the exercise conditions. As of June 30, 2022, a total of 14,049,300 stock options have been exercised by 543
incentive objects in the third exercise period, increasing the Company's share capital by 14.0493 million yuan. After
the stock options are exercised, the share capital will increase to 1,271,027,372 yuan.
(III) The financial report is approved and submitted by the Board of Directors of the Company on July 25,
2022.
(IV) Scope of consolidated financial statement
There are a total of 38 subsidiary companies included in the scope of the consolidated statement this time, as
shown in Note VIII. (I); during the reporting period, 3 companies were newly included in the scope of consolidation,
of which 3 were newly-established subsidiaries or grandson companies.
IV. Preparation basis of the financial statement
1. Basis of preparation
The financial statements are based on the assumption of continuation of the Company, according to the actual
transactions, in accordance with the relevant provisions of the Accounting Standards for Business Enterprises, and
based on the following important accounting policies and accounting estimates.
2. Continuation
The Company has no major doubt on the ability of continuation and other influencing factors for 12 months
since the end of the reporting period.
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,
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interpretations as well as other relevant provisions (collectively referred to as "Accounting Standards for Business
Enterprises") issued by the Ministry of Finance.
Additionally, the presentation and disclosure requirements of the No. 15 Rules for the Preparation and
Presentation of Information Disclosure of Companies Offering Securities to the Public - General Provisions on
Financial Reporting (revised in 2014) (hereinafter referred to as "No. 15 Document (revised in 2014)") and the
Notice on Matters Related to the Implementation of the New Accounting Standards for Business Enterprises by
Listed Companies (KJBH [2018] No. 453) 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 financial year of the Company adopts the Gregorian calendar year, that is, from January 1 to December 31
every year.
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. The financial statements of the Company are denominated in RMB.
5. Accounting treatment for business merger under the same control and under different control
The Company, at the date of acquisition, recognizes the difference of the combination cost greater than the fair
value share of the acquiree's net identifiable assets obtained in the combination as goodwill; if the combination cost
is less than the fair value share of the acquiree's net identifiable assets obtained in the combination, the Company
first re-checks the fair value of the acquiree's identifiable assets, liabilities and contingent liabilities as well as the
measurement of combination cost. The difference shall be included in the current profits and losses, if the
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combination cost is still less than the fair value share of the acquiree's net identifiable assets obtained in the
combination.
The business combination under different control realized step by step through multiple transactions shall be
treated as follows:
1. Adjusting the initial investment cost of long-term equity investment. If the equity held before the acquisition
date is calculated with the equity method, it shall be re-measured as per the fair value of the equity at the date of
acquisition, and the difference between the fair value and its book value shall be included in the current investment
income; if the equity of the acquiree held before the acquisition date involves changes in other comprehensive
income and other equity accounted under the equity method, it shall be transferred to the current income on the
acquisition date, excluding other comprehensive income arising from changes in net liabilities or net assets of the
defined benefit plan re-measured by the investee.
2. Recognizing goodwill (or amount included in the current profits and losses). The initial investment cost of
long-term equity investment after the first step adjustment is compared with the fair value share of net identifiable
assets of subsidiaries at the date of acquisition. If the former is greater than the latter, the difference is recognized
as goodwill, otherwise, it is included in the current profits and losses.
The situation of disposing equity step by step through multiple transactions to losing control over subsidiaries:
1. Judging whether the transactions in the process of disposing equity step by step to losing control over
subsidiaries belong to the principle of "package transaction"
The terms, conditions and economic impact of transactions relating to disposal of equity investment in
subsidiaries meet one or more of the following circumstances, which generally indicates that multiple transactions
shall be accounted for as a package transaction:
(1) Such transactions are concluded at the same time or under the situation of considering the impact on each
other;
(2) Only can the unity of such transactions reach an integral commercial result;
(3) The occurrence of a transaction is based on the occurrence of at least one of other transactions;
(4) A transaction is regarded as uneconomic, but being economic when regarded along with other transactions.
2. Accounting treatment for transactions in the process of disposing equity step by step to losing control over
subsidiaries belonging to "package transaction"
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If the transactions relating to disposal of equity investment in subsidiaries to losing control over subsidiaries
belong to "package transaction", these shall be treated as a transaction for disposing the subsidiary and losing control;
however, the difference between the price of every disposal and the net assets share held in the subsidiary
corresponding to the disposal of investment before losing control shall be recognized as other consolidated income
in the consolidated financial statements, which shall be transferred to the current profits and losses at the time of
losing control.
In the consolidated financial statements, the remaining equity shall be re-measured according to its fair value
on the date of losing control. The difference between the sum of consideration obtained from equity disposal and
fair value of remaining equity less the net assets share held in original subsidiary and continuously calculated from
the date of acquisition as per the original shareholding proportion shall be included in the investment income of the
current period of loss of control. Other comprehensive income related to the equity investment in original subsidiary
shall be transferred to the current investment income at the time of losing control.
3. Accounting treatment for transactions in the process of disposing equity step by step to losing control over
subsidiaries not belonging to "package transaction"
If no loss of control occurs in the disposal of the investment in the subsidiary, the difference between the
disposal price and the net assets share held in the subsidiary corresponding to the disposal of investment in the
consolidated financial statements shall be included in the capital reserve (capital premium or share premium). If the
capital premium is insufficient to offset, the retained earnings shall be adjusted.
In case of losing control over the investment in a subsidiary, the remaining equity shall be re-measured
according to its fair value on the date of loss of control in the consolidated financial statements. The difference
between the sum of consideration obtained from equity disposal and fair value of remaining equity less the net assets
share held in original subsidiary and continuously calculated from the date of acquisition as per the original
shareholding proportion shall be included in the investment income of the current period of loss of control. Other
comprehensive income related to the equity investment in original subsidiary shall be transferred to the current
investment income at the time of losing control.
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6. Compiling method of consolidated financial statements
The consolidated financial statements, based on the financial statements of the parent company and its
subsidiaries, are prepared by the Company in accordance with the Accounting Standards for Business Enterprises
No. 33-Consolidated Financial Statements and with reference to other relevant information.
During the combination, the internal equity investment and the owner's equity of the subsidiaries, the internal
investment income and the profit distribution of the subsidiaries, the internal transactions, the internal claims and
debts are offset. The accounting policies adopted by the subsidiaries shall be consistent with those adopted by the
parent company.
7. Classification of joint venture arrangements and accounting treatment for joint operation
1. Identification and classification of joint venture arrangements
Joint venture arrangement refers to an arrangement under joint control by two or more parties. The joint venture
arrangement has the following features: 1) all parties are bound by the arrangement; 2) two or more parties jointly
control the arrangement. No single party can control the arrangement solely, and any party with joint control over
the arrangement can prevent other parties or a combination of party alliance from controlling the arrangement alone.
Joint control refers to the common control of an arrangement in accordance with relevant agreements, and the
activities related to the arrangement must be agreed upon by the parties holding control right before the decision
can be made.
Joint venture arrangement includes joint operation and joint venture. Joint operation is the joint venture
arrangement in which the joint venture party holds the relevant assets of the arrangement and assumes the relevant
liabilities. Joint venture refers to a joint venture arrangement in which the joint venture party has rights only to the
net assets of the arrangement.
2. Accounting treatment for joint venture arrangement
Parties in joint operation shall recognize the following items related to their share of interests in joint operation,
and perform accounting treatment in accordance with the relevant provisions of the Accounting Standards for
Business Enterprises: 1) recognize the assets held separately and those held jointly as per their share; 2) recognize
the liabilities assumed separately and those assumed jointly as per their share; 3) recognize the income generated
from the sale of its share of joint operation output; 4) recognize the income from the sale of the output of the joint
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operation as per its share; (5) recognize the expenses incurred separately and those incurred in the joint operation
as per its share.
The parties of a joint venture shall make accounting treatment for the investment in the joint venture in
accordance with the Accounting Standards for Business Enterprises No. 2 - Long-Term Equity Investment.
8. Standards for determining cash and cash equivalents
Cash in the cash flow statement refers to cash on hand and deposits that are available for payment at any time.
Cash equivalents refer to investments with short term (generally due within three months from the date of purchase),
strong liquidity, easy to convert into known amount of cash and low risk of value change.
9. Foreign currency transaction and foreign currency statement translation
1. The translation of foreign currency transactions
When foreign currency transactions are initially recognized, they are converted into RMB at the spot exchange
rate on the transaction date. On the balance sheet date, foreign currency monetary items are translated at the spot
exchange rate on the balance sheet date. The exchange difference arising from different exchange rates shall be
included in the current profits and losses, except for the exchange difference of the principal and interest of foreign
currency special borrowings related to the acquisition and construction of assets that meet the capitalization
conditions; foreign currency non-monetary items measured at historical cost shall be translated at the spot exchange
rate on the transaction date, with the amount in RMB maintaining unchanged; foreign currency non-monetary items
measured at fair value shall be translated at the spot exchange rate on the date of determining fair value, with the
difference included in the current profits and losses or other comprehensive income.
2. Translation of foreign currency financial statements
The assets and liabilities in balance sheet shall be translated at the spot exchange rate on the balance sheet date;
except for the "retained earnings", other items in the owner's equity shall be converted at the spot exchange rate on
the transaction date; the income and expense in the income statement shall be converted at the spot exchange rate
on the transaction date. The difference in translation of foreign currency financial statements generated from the
above conversion is recognized as other comprehensive income.
10. Financial instruments
1. Recognition and derecognition of financial instruments
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The Company recognizes a financial asset or financial liability when it becomes a party to a financial
instrument contract.
The trading of financial assets in a conventional manner shall be recognized and derecognized according to the
accounting of the trading day. Conventional trading of financial assets refers to the collection or delivery of financial
assets within the time limit specified by laws and regulations or common practice in accordance with the terms of
the contract. Trading day refers to the date when the Company promises to buy or sell financial assets.
If the following conditions are met, the financial assets (or a part of financial assets, or a part of a set of similar
financial assets) shall be derecognized, i.e., they shall be written off from its accounts and balance sheets:
(1) The right to receive cash flow of financial assets has expired;
(2) The right to receive cash flow of financial assets has been transferred, or the Company has assumed the
obligation to timely pay the full amount of the cash flow received to a third party under the "transfer agreement";
and (a) has transferred substantially all the risks and rewards from the ownership of financial assets, or (b)
abandoned the control of the financial asset, though almost all risks and rewards from the ownership of the financial
asset are neither transferred nor retained.
2. Classification and measurement of financial assets
At the time of initial recognition, the financial assets of the Company are classified according to the Company's
business model for the management of financial assets and the contractual cash flow characteristics of financial
assets as follows: financial assets measured at amortized cost, financial assets measured at fair value through other
comprehensive income, and financial assets measured at fair value through current profits and losses. The
subsequent measurement of financial assets depends on its classification.
The classification of financial assets is based on the Company's business model for the management of financial
assets and the cash flow characteristics of financial assets.
(1) Financial assets measured at amortized cost
Financial assets satisfying the following conditions at the same time are classified as financial assets 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.
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For such financial assets, the effective interest rate method is adopted, and subsequent measurement is made at
amortized cost, and the gains or losses arising from amortization or impairment are included in the current profits
and losses.
(2) Debt instruments investment measured at fair value with changes included in other comprehensive income
Financial assets that meet the following conditions at the same time are classified as financial assets measured
at fair value through other comprehensive income: The business model for managing the financial assets by the
Company is to collect contractual cash flows and to sell financial assets; The contract terms of the financial asset
stipulate that the cash flow generated on a specific date is only the payment of the principal and the interest based
on the outstanding principal amount. For such financial assets, fair value is adopted for subsequent measurement.
The discount or premium is amortized using the effective interest rate method and recognized as interest income or
expense. Except the impairment loss and the exchange difference of foreign currency monetary financial assets are
recognized as the current profits and losses, the changes in the fair value of such financial assets are recognized as
other comprehensive income until their accumulated gains or losses are transferred into the current profits and losses
when the financial asset is derecognized. Interest income related to such financial assets is included in the current
profits and losses.
(3) Equity instruments investment measured at fair value with changes included in other comprehensive income
The Company irrevocably chooses to designate part of the non-tradable equity instrument investment as
financial assets measured at fair value through other comprehensive income. Only the relevant dividend income is
included in the current profits and losses, and the changes in fair value are recognized as other comprehensive
income, until their accumulated gains or losses are transferred into retained earnings when the financial asset is
derecognized.
(4) Financial assets measured at fair value with changes included in the current profits and losses
The financial assets other than the above financial assets measured at amortized cost and those at fair value
through other comprehensive income are classified as financial assets measured at fair value with changes included
in the current profits and losses. At the time of initial recognition, for the purpose of elimination or significant
reduction of accounting mismatch, financial assets can be designated as those measured at fair value with changes
included in the current profits and losses. For such financial assets, fair value is used for subsequent measurement,
and all changes in fair value are included in the current profits and losses.
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If and only when the Company changes the business model for managing financial assets, it will reclassify all
the affected financial assets.
For the financial assets measured at fair value and whose changes are included in the current profits and losses,
the relevant transaction costs are directly included in the current profits and losses, and such costs of other types of
financial assets are included in the initial recognition amount.
3. Classification and measurement of financial liabilities
The financial liabilities of the Company are classified at the initial recognition as follows: financial liabilities
measured at amortized cost and financial liabilities measured at fair value through current profits and losses.
Financial liabilities that meet one of the following conditions can be designated as financial liabilities measured
at fair value through current profits and losses at the time of initial measurement: (1) such designation can eliminate
or significantly reduce accounting mismatch; (2) according to the company risk management or investment strategy
stated in formal written documents, the management and performance evaluation for the financial liabilities
portfolio or portfolio of financial assets and financial liabilities is conducted on the basis of fair value, which is
reported to key management personnel within the Company on this basis; (3) the financial liabilities include
embedded derivatives that need to be split separately.
The Company determines the classification of financial liabilities at the time of the initial recognition. For the
financial liabilities measured at fair value with changes included in the current profits and losses, the relevant
transaction costs are directly included in the current profits and losses, and such costs of other financial liabilities
are included in the initial recognition amount.
The subsequent measurement of financial liabilities depends on its classification:
(1) Financial liabilities measured at amortized cost
For such financial liabilities, the effective interest rate method is adopted and the subsequent measurement is
conducted as per the amortized cost.
(2) Financial liabilities measured at fair value with changes included in the current profits and losses
Such financial liabilities include tradable financial liabilities (including derivatives that belong to financial
liabilities) and financial liabilities designated upon initial recognition as those measured at fair value with changes
included in the current profits or losses.
4. Set off of financial instruments
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If the following conditions are met at the same time, financial assets and financial liabilities are presented in
the balance sheet at the net amount after offsetting each other: the Company has the legal right to offset the
recognized amount, which is currently enforceable; they plan to settle at the net amount, or realize the financial
assets and pay off the financial liabilities at the same time.
5. Impairment of financial assets
The Company recognizes the loss provision based on the expected credit loss for the financial assets measured
at the amortized cost, the debt instrument investment and financial guarantee contract measured at the fair value
and whose changes are included in other comprehensive income. The term "credit loss" refers to the difference
between all the contractual cash flows that the Company discounted at the original effective interest rate and
received according to the contract and all the expected cash flows, i.e., the present value of all the cash shortage.
The Company, taking into account all reasonable and well founded information (including forward-looking
information) estimates the expected credit losses of financial assets measured at amortized cost and financial assets
(debt instruments) measured at fair value with changes included in other comprehensive income in a single or
combined way.
(1) Measurement of expected credit loss
If the credit risk of the financial instrument has increased significantly since the initial recognition, the
Company measures its loss provision according to the amount equivalent to the expected credit loss of the financial
instrument in the whole duration; if the credit risk of the financial instrument has not increased significantly since
the initial recognition, the Company measures its loss provision according to the amount equivalent to the expected
credit loss of the financial instrument in the next twelve months. The increased or 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 "IX. 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:
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First stage: credit risk has not increased significantly since initial recognition
For the financial instrument at this stage, the enterprise shall measure the loss provision according to the
expected credit loss in the next 12 months, and calculate the interest income as per its book balance (i.e. without
deducting the impairment provision) and the actual interest rate (if the instrument is a financial asset, the same
below).
Second stage: the credit risk has increased significantly since the initial recognition, but the credit impairment
has not occurred
For the financial instrument at this stage, the enterprise shall measure the loss provision according to the
expected credit loss of the instrument thought the whole duration, and calculate the interest income as per its book
balance and the actual interest rate.
Third stage: credit impairment occurs after initial recognition
For the financial instrument at this stage, the enterprise shall measure the loss provision according to the
expected credit loss of the instrument thought the whole duration, but the calculation of interest income is different
from the financial assets at the first two stages. For the financial assets with credit impairment, the enterprise shall
calculate the interest income according to its amortized cost (book balance minus accrued provision for impairment,
i.e. book value) and the actual interest rate.
For the financial assets with credit impairment at the time of purchase or origination, the enterprise shall only
recognize the change of expected credit loss in the whole duration after initial recognition as loss provision, and
calculate the interest income as per its amortized cost and the effective interest rate adjusted by credit.
(2) 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
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The Company measures the loss provisions as per the amount of expected credit losses throughout the whole
duration by the use of simplified model for expected credit loss for receivables specified in Accounting Standards
for Business Enterprises No. 14 - Income, excluding significant financing components (including cases in which
financing components in contracts not exceeding one year are not taken into account in accordance with the
standards).
The Company makes accounting policy choices to adopt a simplified model for expected credit loss, i.e.,
measuring the loss provisions as per the amount equivalent to the expected credit loss throughout the whole duration
for receivables including significant financing components and lease receivables regulated by Accounting Standards
for Business Enterprises No. 21 - Leasing.
6. Transfer of financial assets
If the Company has transferred almost all risks and rewards in the ownership of financial assets to the transferee,
the financial assets shall be derecognized, and if it retains almost all risks and rewards in the ownership of the
financial assets, the financial assets shall not be derecognized.
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
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aging, and the transfer provision shall be accrued according to the accounting estimate policy of expected credit
loss of above accounts receivable.
12. Accounts receivable
The Company measures the loss provisions as per the amount of expected credit losses throughout the whole
duration by the use of simplified model for expected credit loss for receivables specified in Accounting Standards
for Business Enterprises No. 14 - Income, excluding significant financing components (including cases in which
financing components in contracts not exceeding one year are not taken into account in accordance with the
standards). The increased or reversed amount of loss provisions generated therefrom shall be included in the current
profits and losses as impairment losses or gains.
The Company has implemented Accounting Standard No. 22 - Recognition and Measurement of Financial
Instruments (CK [2017] No. 7) since January 1, 2019. The Company believes that the probability of default is related
to the aging, which is still a mark of whether the credit risk of the Company's accounts receivable increases
significantly, after it has reviewed the appropriateness of the provision for bad debts receivable in previous years
based on the Company's historical bad debt losses. Therefore, credit risk loss of the Company's accounts receivable
is still estimated on the basis of aging according to the original loss ratio of previous years. The accounting policies
for measuring overdue credit loss of accounts receivable adopted by the Company are as 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.
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Except for the receivables for which impairment provision has been made separately, the Company determines
the proportion for following bad debt provision based on the actual loss rate of the portfolio of the same or similar
receivables in previous years with the aging of receivables as the credit risk feature and in combination with the
current situation:
Aging Estimated loss of accounts Estimated loss of other
receivable (note) receivables
Within 1 year (including 1 year) 3.10% 5.00%
1-2 years (including 2 years) 9.04% 10.00%
2-3 years (including 3 years) 22.11% 30.00%
3-4 years (including 4 years) 47.51% 50.00%
4-5 years (including 5 years) 84.26% 80.00%
Above 5 years 100.00% 100.00%
Including: those that have been determined to be irrecoverable Write-off Write-off
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 single provision for bad debts
Reasons for single 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.
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If the Company transfers the receivables held by it in the form of discount or endorsement, which is frequent
and involves a large amount, and its management business mode is essentially the collection and sale of the
contractual cash flow, it is classified into financial assets whose changes are measured at fair value and included in
other comprehensive income in accordance with the accounting standards of financial instruments.
14. Other receivables
Recognition method and accounting treatment method 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. Pricing method of delivered inventories
The delivered inventories are subject to the weighted-average system.
3. Determination basis for net realizable value of the inventory and counting and drawing method for inventory
falling price 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 packaging materials
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. Pricing method of delivered inventories
The delivered inventories are subject to the weighted-average system.
3. Determination basis for net realizable value of the inventory and counting and drawing method for inventory
falling price 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
17. Contractual 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 costs
(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.
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(3) Investment costs other than those incurred in business combination: The initial investment cost shall be the
purchase price paid actually if the investment is obtained by paying cash, the fair value of the issued equity securities
if by issuing the equity securities, and the value specified in the investment contract or agreement in case of
investment from an investor (unless the unfair value is specified in the contract or agreement).
2. Subsequent measurement and recognition methods for profits and losses
The long-term equity investment that the Company has the control over the investee shall be calculated with
cost method in its individual financial statement; those under the same control or significant influence shall be
calculated with equity method.
If the cost method is applied, the long-term equity investments shall be priced at the initial investment cost.
The cash dividends or profits declared to be distributed by the investee other than those that have been declared but
not distributed and included in the price or consideration paid actually when the investment is obtained shall be
recognized as the current investment 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 profits and losses on investment shall be recognized and the book value
of the long-term equity investment shall be adjusted according to share of the net profits and losses that shall be
entitled or shared and have been realized by the investee after the long-term equity investment is obtained. When
the share of the net profits and losses 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
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investment into the investee are written down to zero, unless the Company is liable for extra losses. The book value
of the long-term equity investment was adjusted and included in the owner's equity for other changes in the owner's
equity other than the net profits and losses of the investee.
3. Basis for determination of control over and significant influence on the investee
Control refers to having the power over the investee, being entitled to variable returns by participating in the
relevant activities of the investee and able to influence the amount of return by exercising the power over the investee.
Significant influence refers to that the investor has the right to participate in decision-making in terms of the
financial and operating policies of the investee but has no right to control or jointly control the formulation of these
policies with other parties.
4. Disposal of long-term equity investments
(1) Partial disposal of long-term equity investments into subsidiaries without loss of control
The difference between the disposal price and the corresponding book value of the disposed investment shall
be recognized as the current investment 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. (XXIII) "Long-term Assets Impairment" for details of the methods for impairment test and
provision of impairment reserve applicable to investment property.
If the property for private use or inventory is converted to an investment property or the investment property
is converted to a property for private use, the book value before such conversion shall be deemed as the entry value
after the conversion.
If the purpose of an investment property is changed to private use, this investment property shall be converted
into a fixed or intangible asset from the date of change. If the purpose of a property is changed to rent gains or
capital appreciation from private use, the fixed asset or intangible asset shall be converted into an investment
property from the date of change. If the purpose of a property is changed to rent gains or capital appreciation from
private use, the fixed asset or intangible asset shall be converted into an investment property from the date of change.
If any asset is converted into an investment property measured with the cost model, the book value before the
conversion shall be deemed as the entry value after the conversion. If any asset is converted into an investment
property measured with the fair value model, the fair value on the conversion date shall be deemed as the entry
value after the conversion.
An investment property shall be derecognized if this investment property is disposed of or permanently retired,
and it is expected that no economic benefits can be obtained from its disposal. The disposal income from the sale,
transfer, scrapping or damage of an investment property shall be included in the current profits and losses after
deducting its book value and relevant taxes and dues. The disposal income from the sale, transfer, scrapping or
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damage of an investment property shall be included in the current profits and losses after deducting its book value
and relevant taxes and dues.
24. Fixed assets
(1) Conditions for recognition
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 Annual depreciation rate
Houses and buildings Straight-line method 20-40 years 5.00% 2.375%-4.75%
Machinery and equipment Straight-line method 10 years 5.00% 9.50%
Transportation equipment Straight-line method 5 years 5.00% 19.00%
Tooling Straight-line method 5 years 5.00% 19.00%
Electronic equipment and other equipment Straight-line method 5 years 5.00% 19.00%
(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 capitalizing borrowing cost
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. The capitalization period of borrowing costs
(1) The borrowing costs shall be capitalized if they meet the following conditions: 1) Asset expenditures have
been incurred; 2) Borrowing costs have been incurred; 3) Acquisition, construction or production activities
necessary for the assets to reach the usable or marketable state as intended have begun.
(2) The capitalization of borrowing costs shall be discontinued if the acquisition, construction or production of
an asset that meets the conditions for capitalization is abnormally interrupted for more than 3 successive months.
The borrowing costs incurred during the period of interruption shall be recognized as current expenses until the
acquisition, construction or production of assets is resumed.
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(3) The capitalization of borrowing costs shall cease when the purchased, constructed or produced assets that
meet the conditions for capitalization reaches the intended usable or marketable state.
3. Capitalized amount of borrowing costs
If special borrowings are for the purpose of purchase, construction or production of assets that meet the
conditions for capitalization, the amount of interest to be capitalized shall be determined as the interest expenses
actually incurred (including the amortization of discounts or premiums determined with the effective interest rate
method) in the current period of the special borrowing minus the interest income from the unused borrowings that
have been deposited in the bank or the profit from temporary investment by the unused borrowings. If general
borrowings are used for the purpose of purchase, construction or production of assets that meet the conditions for
capitalization, the amount of interest to be capitalized shall be determined as the weighted average of asset
expenditure with accumulated asset expenditure exceeding special borrowing multiplied by capitalization rate of
the general borrowing occupied.
27. Biological assets
None
28. Oil and gas assets
None
29. 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. This 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;
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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
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 completed 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
shall be calculated and withdrawn as depreciation over the shorter one of the lease term or the remaining service
life.
The Company determines whether the right-of-use assets are impaired in accordance with the Accounting
Standards for Business Enterprises No. 8 - Asset Impairment, and carries out accounting treatment for the identified
impairment losses.
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
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serviceable state, the impairment tests shall be carried out every year, whether there are signs of impairment or not.
Currently, the Company has no intangible assets with uncertain service life.
(2) Accounting policy of internal R&D expenditure
Research stage expenditures of internal R&D projects shall be included in the current profits and losses at the
time of occurrence. In case following conditions have been met at the same time, expenditure of internal R&D
projects in development stage shall be recognized as intangible assets: (1) It is technically feasible to complete the
intangible assets for adoption and sale; (2) There is the intention to complete the intangible assets for adoption and
sale; (3) There exist ways for intangible assets to generate economic benefits, including the evidence that there is a
market for products produced by using the intangible assets or for the intangible assets. If the intangible assets will
be used internally, it can be proved that they are useful; (4) There are sufficient technical, financial and other
resources to support the development of the intangible assets and to use or sell the intangible assets; (5) Expenditure
of the intangible assets in development stage can be measured reliably.
31. Long-term assets impairment
The enterprise shall judge whether there is any sign of possible assets impairment on the balance sheet date.
Goodwill arising from business combination and intangible assets with uncertain service life shall be tested for
impairment every year, no matter whether there is any sign of impairment.
In case of following signs, the assets may be impaired:
(1) Market price of assets falls sharply in the current period, which is significantly higher than the expected
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.
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In case of signs of assets impairment, corresponding recoverable amount shall be estimated.
Recoverable amount shall be determined based on the higher of the net amount of fair value of assets minus
the disposal expenses and the present value of expected future cash flow of assets.
Disposal expenses include legal expenses, relevant taxes and handling fees related to disposal of assets as well
as direct expenses incurred to make the assets marketable.
Present value of expected future cash flow of assets shall be determined by selecting an appropriate discount
rate based on the expected future cash flow generated during continuous use and final disposal of the assets. To
estimate present value of future cash flow of assets, measures shall be taken to comprehensively consider factors as
the expected future cash flow, service life and discount rate of the assets.
In case of measurement result of recoverable amount showing that recoverable amount of the asset is lower
than its book value, the book value shall be written down to the recoverable amount, and the written down amount
shall be recognized as the loss of asset impairment and included in the current profits and losses; besides,
corresponding provision for asset impairment shall be made at the same time.
32. Long-term deferred expenses
Long-term deferred expenses shall be recorded according to the actual amount, and shall be averagely
amortized in the benefit period or the specified period. In case future accounting period cannot benefit from long-
term deferred expenses, all unamortized value of the item shall be transferred into the current profits and 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 goods 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. The
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benefits provided by the Company to the employee's spouse, children, dependents, family members of the deceased
employee and other beneficiaries are also 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 benefits 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
None
(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.
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35. Lease liabilities
On the beginning date of the lease term, the Company recognizes the present value of the unpaid lease payments
as lease liabilities, except for short-term leases and low-value asset leases. When calculating the present value of
lease payments, the Company adopts the interest rate implicit in the lease as the discount rate; if the interest rate
implicit in the lease cannot be determined, the lessee's incremental loan interest rate shall be used as the discount
rate. The Company calculates the interest expense of the lease liability in each period of the lease term according to
the fixed periodic interest rate and includes it in the current profits and losses, 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 profits and losses 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
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Estimation shall be based on the latest available changes on vesting employee number and other subsequent
information.
4. Accounting treatment of implementing, modifying and terminating share-based payment plan
(1) Equity-settled share-based payment
Equity-settled share-based payment in exchange for employee services that can be exercised immediately after
the grant shall be included in the relevant costs or expenses according to the fair value of equity instruments on the
grant date, and the capital reserve shall be adjusted accordingly. For equity-settled share-based payment in exchange
for employee services only after completing service within the waiting period or reaching the specified performance
conditions, it is required to include the services obtained in the current period into relevant costs or expenses
according to the best estimate of number of vesting equity instruments and the fair value on the grant date of equity
instruments on each balance sheet date within the waiting period, and the capital reserve shall be adjusted
accordingly.
For equity-settled share-based payment in exchange for other party's services, if the fair value of other party's
services can be reliably measured, it shall be measured based on the fair value of other party's services on the
acquisition date; In case the fair value of other party's services cannot be reliably measured, but the fair value of
equity instruments can be reliably measured, it shall be measured based on the fair value of equity instruments 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
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increase of the number of equity instruments granted due to modification, the Company shall recognize the fair
value of the increased equity instruments as the increase of services obtained accordingly. Besides, if the Company
modifies vesting conditions in a way beneficial to employees, it shall consider all modified vesting conditions when
dealing with the vesting conditions.
In case of decrease of fair value of the equity instruments granted due to modification, the Company shall
continue to recognize the amount of services obtained based on the fair value of equity instruments on the grant
date without considering the decrease of fair value of equity instruments; In case of decrease of the number of equity
instruments granted due to modification, the Company shall recognize the decreased part as the cancellation of
granted equity instruments; Besides, if the Company modifies vesting conditions in a way not beneficial to
employees, it shall not consider the modified vesting conditions when dealing with vesting conditions.
In case the Company cancels or settles the granted equity instruments within the waiting period (except those
cancelled due to failure to meet the vesting conditions), the cancellation or settlement shall be accelerated for vesting,
and the amount originally confirmed in the remaining waiting period shall be recognized immediately.
Share-based payment refers to the transaction of granting equity instruments or undertaking liabilities
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 paymentShare-
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.
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The Company has fulfilled performance obligation in the Contract, that is, recognizing revenue when the
customer obtains the control right of relevant commodities. Obtaining of the control right of relevant commodities
means to be able to dominate the use of the commodities and obtain almost all economic benefits arising therefrom.
2. The Company shall judge the nature of relevant performance obligations as "performance obligations
fulfilled in a certain period" or "performance obligations fulfilled at a certain time point" based on relevant
provisions of revenue standards, and shall confirm revenue according to the following principles respectively.
(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.
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When evaluating whether the accumulative recognized revenue is unlikely to be significantly reversed, the
enterprise shall further consider the possibility and proportion of revenue reversal.
(2) Significant financing components
In case of significant financing components in the Contract, the Company shall determine the transaction price
according to the amount payable in cash when assuming that customers obtain the control right of commodities.
Difference between the transaction price and the contract consideration shall be amortized by adopting the effective
interest rate method during the contract period.
(3) Non-cash consideration
In case customers pay non-cash consideration, the Company shall determine the transaction price according to
the fair value of the non-cash consideration. In case the fair value of non-cash consideration cannot be reasonably
estimated, the Company shall indirectly determine the transaction price by referring to the separate selling price of
commodities for transferring commodities to customers that it promises.
(4) Consideration payable to customers
Consideration payable to customers shall be written down against the transaction price, and the current income
shall be offset at the later of confirming relevant income or paying (or promising to pay) customer's consideration,
except that the consideration payable to customers is to obtain other clearly distinguishable commodities from
customers.
In case the consideration payable by an enterprise to customers is to obtain other clearly distinguishable
commodities from customers, the purchased commodities shall be confirmed in a way consistent with other
purchases of the enterprise. In case the consideration payable by an enterprise to customers exceeds the fair value
of a clearly distinguishable commodity obtained from the customer, the excess amount shall be used to offset the
transaction price. In case the fair value of clearly distinguishable commodities obtained from customers cannot be
reasonably estimated, the enterprise shall offset the transaction price with the consideration payable to customers in
full.
Differences in revenue recognition accounting policies caused by different business models of similar businesses
None
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40. Government subsidies
1. Government subsidies include government subsidies related to assets and government subsidies related to
income.
2. In case the government subsidies can be included in monetary assets, they shall be measured according to
the amount received or receivable; In case the government subsidies can be classified as non-monetary assets, they
shall be measured at fair value, and once the fair value cannot be obtained reliably, they shall be measured in nominal
amount.
3. Government subsidies calculated by adopting the gross method:
(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.
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7. The Company shall include the government subsidies related to its daily activities in other income according
to the essence of economic business, and shall include the government subsidies unrelated to its daily activities in
non-operating income and expenditure.
8. For discount interest of preferential policy loans to be obtained by the Company, two measures shall be
adopted, including that the Ministry of Finance allocates the discount funds to the lending banks and that the
Ministry of Finance allocates the discount funds to the Company:
(1) In case the Ministry of Finance allocates the discount funds to the lending banks, and the lending bank
provides loans to the Company at preferential policy interest rate, the Company shall choose the following methods
for accounting treatment:
a. Taking the loan amount actually received as the entry value of the loan, and calculating relevant borrowing
costs based on the loan principal and the preferential policy interest rate.
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. On the balance sheet date, if there is conclusive evidence that it is likely to obtain
sufficient taxable income in the future periods to offset the deductible temporary differences, the deferred tax assets
not recognized in the previous accounting periods shall be recognized.
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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 expenses 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.
42. Lease
(1) Accounting treatment of operating lease
(1) Operating lease business recorded by the Company as the lessee
GHB shall include the rental from the operating lease in the relevant asset costs or current profits and losses
using straight-line method over the relevant 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
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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
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
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management objectives related to the hedge for the enterprise. These documents at least describe the hedge
instrument, hedged projects, nature of the hedged risks, and evaluation methods on hedge effectiveness (including
the forming reason analysis for invalid part of the hedge and the confirmation methods of the hedge ratio) etc. (3)
The hedge relationship conforms to the requirements of hedge effectiveness.
If the hedge meets the following conditions at the same time, the enterprise shall identify that the hedge
relationship conforms to the requirements of hedge effectiveness:
(a) There is the economic relationship between the hedged projects and hedge instruments. The economic
relationship makes the value of the hedge instruments and hedged projects change in the reverse direction due to
the same hedged risks.
(b) In the value change generated for the hedged projects and hedge instruments, the effect of the credit risk is
not dominant.
(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
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measured at fair value with the changes including in other comprehensive income, the profit or loss generated by
the hedge instruments shall be incorporated into other comprehensive income.
(b) The profit or loss generated by the hedged projects due to the hedge risk exposure shall be incorporated
into the current profit or loss. At the same time, the account value shall be adjusted for the confirmed hedged projects
measured at the fair value.
(2) Cash flow hedge
If the cash flow value hedge meets the conditions to apply the hedge accounting methods, it shall be handled
in accordance with the provisions below:
(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. 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
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of the cancelled shares and the number of cancelled shares and the amount paid for the actual repurchase. If the
capital reserve is insufficient to be offset, the retained earnings shall be offset; If the repurchase shares are awarded
to the employees of the Company as equity-settled share-based payment, when the employees exercise the right to
purchase the shares of the Company or its subsidiaries and receive the price, the cost of treasury shares delivered to
the employees and the accumulated amount of capital reserve (other capital reserves) during the waiting period shall
be resold, and the capital reserve (capital premium or share premium) shall be adjusted according to the difference.
44. Important accounting policy and accounting estimation changes
(1) Important accounting policy changes
□ Applicable Not applicable
(2) Important accounting estimation changes
□ Applicable Not applicable
45. Others
Not applicable
VI. Tax
1. Main tax types and tax rate
Tax type Tax basis Tax rate
VAT (value-added tax) Revenue from sales of goods 13%、9%、6%、3%
Consumption tax Paid turnover tax amount 4%
City maintenance and construction tax Paid turnover tax amount 7%
15%、25%、16.5%、25.17%、20%、
Corporate income tax Taxable income
15.825%、22.46%
Education surcharge Actually paid goods turnover tax 3%
Local education surcharge Actually paid goods turnover tax 2%
Where there are any taxpayers with different corporate income tax rates, details shall be disclosed.
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%
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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. 15.00%
Ningbo Topband Intelligent Control Co., Ltd. 25.00%
Shenzhen Meanstone Intelligent Technology Co., Ltd. 20.00%
Hangzhou Zhidong Motor Technology Co., Ltd. 20.00%
Taixing Ninghui Battery Co., Ltd. 15.00%
Shenzhen Topband Supply Chain Services Co., Ltd. 25.00%
Shenzhen Topband Investment Co., Ltd. 25.00%
Shenzhen Spark IOT Technology Co., Ltd. 20.00%
Shenzhen Zhongli Consulting Co., Ltd. 20.00%
Shenzhen Tunnu Innovation Co., Ltd. 20.00%
TUNNU INNOVATION,INC 21.00%
Shenzhen Senxuan Technology Co., Ltd. 20.00%
Shenzhen Tengyi Industrial Co., Ltd. 20.00%
Topband (Qingdao) Intelligent Control Co., Ltd. 20.00%
Shenzhen Topband Automotive Electronics Co., Ltd. 20.00%
TOPBAND JAPAN Co.,Ltd 22.46%
Tunnu Innovation HK Limited 8.25%
Topband （Vietnam) Co.,ltd 20.00%
TOPBAND SMART DONGNAI(VIETNAM) Co.,ltd 20.00%
Topband Germany GmbH 15.825%
Huizhou Topband Battery Co., Ltd. 20.00%
Shenzhen Xiaoyou Aitu Innovation Technology Co., Ltd. 20.00%
Shenzhen Yueshang Robot Co., Ltd. 20.00%
Shenzhen Topband Motor Co., Ltd. 20.00%
Nantong Topband Youneng Technology Co., Ltd. 25.00%
Huizhou YAKO Automation Technology Co., Ltd. 20.00%
TOPBAND MEXICO,S.DE R.L.D 30.00%
TOPBAND SMART EUROPE COMPANY LIMITED S.R.L.. 16.00%
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.
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On December 9, 2019, Shenzhen Topband Software Technology Co., Ltd. obtained the Certificate for High-
tech Enterprise that is numbered GR201944201381 and issued by Shenzhen Science and Technology Innovation
Commission, Shenzhen Finance Commission, Shenzhen Municipal Office, SAT and Shenzhen Local Taxation
Administration. This Certificate is valid within 3 years from the date of issuance. The corporate income tax rate
applicable for the Company from 2019 to 2021 is 15% in accordance with relevant provisions of the Law of the
People's Republic of China on Enterprise Income Tax, Regulations of the People's Republic of China on the
Implementation of Enterprise Income Tax and the Management Measures for the Certification of High-tech
Enterprises.
On 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, 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, 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 and
Shenzhen Tax Service, State Taxation Administration. This Certificate is valid within 3 years from the date of
issuance. The corporate income tax rate applicable for the Company from 2021 to 2023 is 15% in accordance with
relevant provisions of the Law of the People's Republic of China on Enterprise Income Tax, Regulations of the
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People's Republic of China on the Implementation of Enterprise Income Tax and the Management Measures for the
Certification of High-tech Enterprises.
On December 20, 2021, Huizhou Topband Electrical Technology Co., Ltd. obtained the Certificate for High-
tech Enterprise that is numbered GR202144003640 and issued by the Department of Science and Technology of
Guangdong Province, the Department of Finance of Guangdong Province, and Guangdong Provincial Tax Service,
State Taxation Administration. This Certificate is valid within 3 years from the date of issuance. The corporate
income tax rate applicable for the Company from 2021 to 2023 is 15% in accordance with relevant provisions of
the Law of the People's Republic of China on Enterprise Income Tax, Regulations of the People's Republic of China
on the Implementation of Enterprise Income Tax and the Management Measures for the Certification of High-tech
Enterprises.
On December 23, 2021, Shenzhen Yansheng Software Co., Ltd. obtained the Certificate for High-tech
Enterprise that is numbered GR202144207744 and issued by Shenzhen Science and Technology Innovation
Commission, Shenzhen Finance Commission and Shenzhen Tax Service, State Taxation Administration. This
Certificate is valid within 3 years from the date of issuance. The corporate income tax rate applicable for the
Company from 2021 to 2023 is 15% in accordance with relevant provisions of the Law of the People's Republic of
China on Enterprise Income Tax, Regulations of the People's Republic of China on the Implementation of Enterprise
Income Tax and the Management Measures for the Certification of High-tech Enterprises.
On 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
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Taixing Ninghui 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
was 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
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 Senxuan Technology
Co., Ltd., Shenzhen Spark IOT Technology Co., Ltd., Shenzhen Tunnu Innovation Co., Ltd., Huizhou Topband
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. Others
None
VII. Notes to Items of Consolidated Financial Statements
1. Monetary capital
Unit: yuan
Items Ending balance Beginning balance
Cash on hand 966,707.91 1,015,081.13
Bank deposit 1,391,833,225.22 1,337,414,181.07
Other monetary capital 199,355,771.32 429,150,793.87
Total 1,592,155,704.45 1,767,580,056.07
Including: total amount deposited abroad 271,287,556.54 177,157,407.23
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Total amount restricted for use due to mortgage, pledge or freezing, etc. 18,372,985.21 31,475,097.87
Other description:
Other monetary capital at the end of the period mainly includes the large-denomination certificates of deposit
of 120,000,000.00 yuan and the fixed-time deposit of 50,000,000.00 yuan. The other restricted monetary capital
amounts to 18,372,985.21 yuan and the unrestricted part amounts to 10,661,717.95 yuan (securities account).
2. Tradable financial assets
Unit: yuan
Items Ending balance Beginning balance
Financial asset at fair value and changes through profit or
272,602,542.73 214,999,336.74
loss
Including:
Including: financial products 4,000,000.00
Investment in equity instruments 272,602,542.73 210,999,336.74
Including:
Total 272,602,542.73 214,999,336.74
Other description:
None
3. Derivative financial assets
□ Applicable Not applicable
Other description:
None
4. Notes receivable
(1) List of classification of notes receivable
Unit: yuan
Items Ending balance Beginning balance
Bank acceptance bill 87,726,220.94 141,695,340.12
Commercial acceptance bill 7,284,348.95 19,964,130.09
Total 95,010,569.89 161,659,470.21
Unit: yuan
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
Category debts debts
Book value Book value
Proportion Proportion
Amount Proportion Amount Amount Proportion Amount
of of
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provision provision
Notes
receivable
with single
87,971,473.36 92.37% 0.00% 87,971,473.36 150,816,667.92 93.09% 0.00% 150,816,667.92
provision
for bad
debts
Including:
Bank
acceptance 87,726,220.94 92.11% 0.00% 87,726,220.94 141,695,340.12 87.46% 0.00% 141,695,340.12
bill
Commercial
acceptance 245,252.42 0.26% 0.00% 245,252.42 9,121,327.80 5.63% 0.00% 9,121,327.80
bill
Notes
receivable
with
provision 7,264,289.50 7.63% 225,192.97 3.10% 7,039,096.53 11,189,682.44 6.91% 346,880.15 3.10% 10,842,802.29
for bad
debts by
portfolio
Including:
Commercial
acceptance 7,264,289.50 7.63% 225,192.97 3.10% 7,039,096.53 11,189,682.44 6.91% 346,880.15 3.10% 10,842,802.29
bill
Total 95,235,762.86 100.00% 225,192.97 0.24% 95,010,569.89 162,006,350.36 100.00% 346,880.15 0.21% 161,659,470.21
Provision for bad debts by portfolio: 225,192.97
Unit: yuan
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Commercial acceptance bill 7,264,289.50 225,192.97 3.10%
Description of the basis for determining the portfolio:
None
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 the current period:
Unit: yuan
Category Beginning Amount changed in the current period Ending balance
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balance Provision Recover or reversal Write-off Other
Provision for bad debts -
346,880.15 121,687.18 225,192.97
notes receivable
Total 346,880.15 121,687.18 225,192.97
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
□ Applicable Not applicable
(3) Notes receivable pledged by the Company at the end of the period
□ Applicable Not applicable
(4) Notes receivable endorsed or discounted by the Company at the end of the period but not yet due at the
balance sheet date
Unit: yuan
Amount derecognized at the end of Amount not derecognized at the end of
Items
period the period
Bank acceptance bill 56,844,298.34
Commercial acceptance bill 150,442.25
Total 56,994,740.59
(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 the current period
□ Applicable Not applicable
5. Accounts receivable
(1) Disclosure of accounts receivable by category
Unit: yuan
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category Proportion Proportion
Proporti Book value Proporti Book value
Amount Amount of Amount Amount of
on on
provision provision
Accounts
receivable
with single 82,699,866.31 3.26% 70,283,785.12 84.99% 12,416,081.19 84,081,324.25 3.60% 70,915,243.12 84.34% 13,166,081.13
provision for
bad debts
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Including:
Receivables
with
significant
individual
81,649,228.61 3.22% 69,233,147.42 84.79% 12,416,081.19 82,399,228.55 3.53% 69,233,147.42 84.02% 13,166,081.13
amount and
single
provision for
bad debts
Receivables
with not
significant
amount but 1,050,637.70 0.04% 1,050,637.70 100.00% 0.00 1,682,095.70 0.07% 1,682,095.70 100.00%
with single
provision for
bad debts
Accounts
receivable
with
provision for 2,450,339,073.11 96.74% 78,828,127.15 3.22% 2,371,510,945.96 2,247,009,076.27 96.40% 72,013,691.92 3.20% 2,174,995,384.35
bad debts by
aging
combination
Including:
Accounts
receivable
with
provision for 2,450,339,073.11 96.74% 78,828,127.15 3.22% 2,371,510,945.96 2,247,009,076.27 96.40% 72,013,691.92 3.20% 2,174,995,384.35
bad debts by
aging
combination
Total 2,533,038,939.42 100.00% 149,111,912.27 5.89% 2,383,927,027.15 2,331,090,400.52 100.00% 142,928,935.04 6.13% 2,188,161,465.48
Single provision for bad debts: 70,283,785.12
Unit: yuan
Ending balance
Name Provision for Proportion Reasons for
Book balance
bad debts of provision provision
Accounts receivable with a single significant amount and It is difficult
81,649,228.61 69,233,147.42 84.79%
single bad debt provision to recover
Accounts receivable with insignificant single amount but It is difficult
1,050,637.70 1,050,637.70 100.00%
separate bad debt provision to recover
Total 82,699,866.31 70,283,785.12
Provision for bad debts by portfolio: 78,828,127.15
Unit: yuan
Ending balance
Name Provision for bad Proportion of
Book balance
debts provision
Accounts receivable with provision for bad debts by
2,450,339,073.11 78,828,127.15 3.22%
aging combination
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Total 2,450,339,073.11 78,828,127.15
Description of the basis for determining the portfolio: None
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 Ending balance
Within 1 year (including 1 year) 2,516,914,290.06
1-2 years 9,369,301.21
2-3 years 3,089,442.63
Above 3 years 3,665,905.52
3-4 years 2,273,693.44
4-5 years 433,255.48
Above 5 years 958,956.60
Total 2,533,038,939.42
(2) Provision for bad debts withdrawn, recovered or reversed in current period
Provision for bad debts in the current period:
Unit: yuan
Amount changed in the current period
Beginning
Category Recover or Ending balance
balance Provision Write-off Other
reversal
Provision for
142,928,935.04 6,849,786.00 666,808.77 149,111,912.27
bad debts
Total 142,928,935.04 6,849,786.00 666,808.77 149,111,912.27
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
□ Applicable Not applicable
(3) Accounts receivable actually written off in the current period
Unit: yuan
Items Write-off amount
Accounts receivable actually written off 666,808.77
Of which the significant write-offs of accounts receivable:
None
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Description of accounts receivable written off:
None
(4) Accounts receivable of top five ending balances grouped by debtors
Unit: yuan
Proportion to total ending
Ending balance of accounts Ending balance of provision
Name of unit balances of accounts
receivable for bad debts
receivable
No. 1 672,890,156.54 26.56% 20,859,594.85
No. 2 77,772,367.29 3.07% 2,477,780.82
No. 3 66,988,907.32 2.64% 2,076,656.13
No. 4 65,080,405.66 2.57% 52,664,324.53
No. 5 61,399,641.38 2.42% 1,903,388.88
Total 944,131,478.19 37.26%
(5) Accounts receivable derecognized due to transfer of financial assets
□ Applicable Not applicable
(6) Amount of assets and liabilities formed by transferring accounts receivable and continuing to be involved
□ Applicable Not applicable
Other descriptions: None
6. Receivables financing
Unit: yuan
Items Ending balance Beginning balance
Bank acceptance bill 48,766,925.55 26,520,757.05
Accounts receivable 138,030,617.46 10,381,750.80
Total 186,797,543.01 36,902,507.85
Changes in increase or decrease in receivables financing and changes in fair value in the current period
□ Applicable Not applicable
If the provision for impairment on receivables financing is based on the general model of expected credit loss, the
information about the provision for impairment shall be disclosed by referring to the disclosure method of other
receivables:
Applicable □ Not applicable
Provision for bad debts First stage Second stage Third stage Total
Expected credit loss in Expected credit loss for the Expected credit loss for
the next 12 months entire duration (no credit the entire duration
impairment) (credit impairment
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occurred)
Balance as of January 1,
321,834.27 321,834.27
2022
Accrual in the current
4,094,005.92 4,094,005.92
period
Balance as of June 30,
4,415,840.19 - - 4,415,840.19
2022
Other description:
None
7. Prepayments
(1) List of advance payments by aging
Unit: yuan
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 78,781,848.02 98.96% 40,538,366.14 93.35%
1-2 years 578,474.25 0.73% 666,816.83 5.06%
2-3 years 208,882.44 0.26% 94,392.13 1.08%
Above 3 years 39,929.01 0.05% 20,709.92 0.51%
Total 79,609,133.72 41,320,285.02
Explanation of the cause for untimely settlement of advance payments aging more than one year with important
amounts:
None
(2) Accounts prepaid of the top five prepaying entities for ending balance
The total amount of prepayments of top five ending balances grouped by debtors in the year was 17,776,615.70
yuan, accounting for 22.33% of the total ending balances of prepayments.
Other description:
None
8. Other receivables
Unit: yuan
Items Ending balance Beginning balance
Other receivables 56,585,892.25 50,156,221.82
Total 56,585,892.25 50,156,221.82
(1) Interest receivable
1) Classification of interest receivable
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□ 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:
None
(3) Other receivables
1) Classification of other receivables by nature of amount
Unit: yuan
Nature of payment Book balance at the end of the period Book balance at the beginning of the period
VAT export rebate 10,510,388.97 14,317,249.26
Employee loans 12,496,377.85 11,891,648.41
Margin, deposit 33,182,470.28 28,560,062.74
Other 5,886,140.51 638,217.83
Total 62,075,377.61 55,407,178.24
2) Provision for bad debts
Unit: yuan
First stage Second stage Third stage
Expected credit loss Expected credit loss
Provision for bad debts Expected credit loss for the entire duration for the entire duration Total
in the next 12 months (no credit (credit impairment
impairment) occurred)
Balance as of January 1,
5,250,956.42 5,250,956.42
2022
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Balance as of January 1,
2022 in the current period
Accrual in the current period 238,528.94 238,528.94
Balance as of June 30, 2022 5,489,485.36 5,489,485.36
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable Not applicable
Disclosure by aging
Unit: yuan
Aging Ending balance
Within 1 year (including 1 year) 47,652,985.96
47,652,985.96
1-2 years 7,415,032.74
2-3 years 1,499,798.73
Above 3 years 5,507,560.18
3-4 years 3,710,336.23
4-5 years 1,775,611.80
Above 5 years 21,612.15
Total 62,075,377.61
3) Bad debt provision withdrawn, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: yuan
Amount changed in the current period
Beginning
Category Recover or Ending balance
balance Provision Write-off Other
reversal
Provision for
5,250,956.42 238,528.94 5,489,485.36
bad debts
Total 5,250,956.42 238,528.94 5,489,485.36
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
□ Applicable Not applicable
4) Other receivables actually written off in the current period
□ Applicable Not applicable
Of which the significant write-offs of other receivables:
□ Applicable Not applicable
Description of other receivable written off:
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None
5) Other receivables of top five ending balances grouped by debtors
Unit: yuan
Proportion to total Ending balance of
Name of unit Nature of payment Ending balance Aging ending balances of provision for bad
other receivables debts
No. 1 Export rebate 10,510,388.97 Within 1 year 16.93%
No. 2 Investment margin 9,000,000.00 Within 1 year 14.50%
No. 3 Margin, deposit 3,463,218.81 Within 1 year 5.58% 173,160.94
No. 4 Margin, deposit 1,520,178.00 2-3 years 2.45% 456,053.40
No. 5 Margin, deposit 1,000,000.00 4-5 years 1.61% 800,000.00
Total 25,493,785.78 41.07% 1,429,214.34
6) Receivables involving government subsidies
None
7) Other receivables derecognized due to transfer of financial assets
□ Applicable Not applicable
8) Amount of assets and liabilities formed by transferring other receivables and continuing to be involved
□ Applicable Not applicable
Other description:
None
9. Inventory
Whether the Company is required to comply with the disclosure requirements of the property industry
No
(1) Inventory classification
Unit: yuan
Ending balance Beginning balance
Provision for
Provision for decline
decline in value
in value of
of inventories or
Items inventories or
provision for
Book balance Book value Book balance provision for Book value
impairment of
impairment of
contract
contract performance
performance
cost
cost
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Raw materials 1,409,913,019.80 87,035,791.46 1,322,877,228.34 1,373,010,350.15 87,214,891.71 1,285,795,458.44
Goods in
145,417,071.36 145,417,071.36 108,042,400.38 14,608.82 108,027,791.56
process
Goods on hand 533,250,453.81 9,725,109.74 523,525,344.07 601,322,955.25 15,911,446.54 585,411,508.71
Goods shipped
139,260,714.65 1,832,879.78 137,427,834.87 122,939,046.46 3,114,595.53 119,824,450.93
in transit
Self-
manufactured
77,861,681.45 6,712,565.54 71,149,115.91 80,789,830.12 3,169,232.84 77,620,597.28
semi-finished
product
Low priced and
easily worn 94,094.91 94,094.91 97,460.86 97,460.86
articles
Materials
entrusted for 7,625,498.26 7,625,498.26
processing
Total 2,305,797,035.98 105,306,346.52 2,200,490,689.46 2,293,827,541.48 109,424,775.44 2,184,402,766.04
(2) Provision for decline in value of inventories and provision for impairment of contract performance cost
Unit: yuan
Beginning Increase in the current period Decrease amount in the current period
Items Ending balance
balance Provision Other Reversal or write-off Other
Raw materials 87,214,891.71 44,463,834.71 44,642,934.96 87,035,791.46
Goods in process 14,608.82 14,608.82
Goods on hand 15,911,446.54 289,835.64 6,476,172.44 9,725,109.74
Goods shipped in
3,114,595.53 70,069.32 1,351,785.07 1,832,879.78
transit
Self-manufactured
semi-finished 3,169,232.84 4,033,512.14 490,179.44 6,712,565.54
product
Total 109,424,775.44 48,857,251.81 52,975,680.73 105,306,346.52
(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. Contractual assets
□ Applicable Not applicable
Amount and reasons for significant changes in the book value of contractual assets during the current period:
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□ Applicable Not applicable
If the provision for impairment on contractual assets 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 impairment of current contract assets:
□ Applicable Not applicable
Other description:
None
11. Assets held for sale
□ Applicable Not applicable
Other description:
None
12. Non-current assets due within one year
□ Applicable Not applicable
Important debt investments/other debt investments
□ Applicable Not applicable
Other description:
None
13. Other current assets
Unit: yuan
Items Ending balance Beginning balance
Input tax of VAT 113,621,975.10 92,861,498.25
Other taxes paid in advance 7,980,715.52 19,851,631.11
Upfront IPO-related fees 358,490.57
Total 121,602,690.62 113,071,619.93
Other description:
None
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14. Debt investment
□ Applicable Not applicable
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable Not applicable
Other description:
None
15. Other debt investment
□ Applicable Not applicable
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable Not applicable
Other description:
None
16. Long-term receivables
(1) Situation of long-term receivables
□ Applicable Not applicable
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable Not applicable
(2) Long-term receivables derecognized due to transfer of financial assets
□ Applicable Not applicable
(3) Amount of assets and liabilities formed by transferring long-term receivables and continuing to be
involved
□ Applicable Not applicable
Other description:
None
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17. Long-term equity investment
Unit: yuan
Changes in increase or decrease in the current period
Profits and Declaration Ending
Beginning losses on Adjustment to Other of Ending
balance of
Investee balance (book Additional Decrease investment other changes distribution
Provision balance (book
in for Other provision for
value) investment recognized comprehensive in for cash value)
investment impairment impairment
under equity income equity dividends
method or profits
I. Joint venture
II. Associated enterprises
Shenzhen
Yuchengxin
Power 9,764,719.19
Technology
Co., Ltd.
Shenzhen Daka
Optoelectronics 5,975,059.85 -31,393.79 5,943,666.06
Co., Ltd.
Pas Electronic
Technology
7,967,433.99 -864,170.61 7,103,263.38
(Nanjing) Co.,
Ltd.
Shanghai
Yidong Power
12,176,633.98 -593,998.60 11,582,635.38
Technology
Co., Ltd.
-
Subtotal 26,119,127.82 24,629,564.82 9,764,719.19
1,489,563.00
-
Total 26,119,127.82 24,629,564.82 9,764,719.19
1,489,563.00
Other description:
None
18. Investment in other equity instruments
□ Applicable Not applicable
Other description:
None
19. Other non-current financial assets
□ Applicable Not applicable
Other description:
None
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20. Investment property
(1) Investment property with cost measurement model
Applicable □ Not applicable
Unit: yuan
Houses and Land usage Construction
Items Total
buildings right in progress
I. Original book value
1. Beginning balance 94,945,556.51 94,945,556.51
2. Increase in the current period 24,125,005.55 24,125,005.55
(1) Outsourcing
(2) Transfer in of inventory\fixed assets\construction in
24,125,005.55 24,125,005.55
progress
(3) Increment from business combination
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Ending balance 119,070,562.06 119,070,562.06
II. Accumulated depreciation and accumulated amortization
1. Beginning balance 7,970,442.20 7,970,442.20
2. Increase in the current period 3,443,464.52 3,443,464.52
(1) Provision or amortization 1,178,626.03 1,178,626.03
(2) Transfer in of inventory, fixed assets and construction in progress 2,264,838.49 2,264,838.49
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Ending balance 11,413,906.72 11,413,906.72
III. Provision for impairment
1. Beginning balance
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Ending balance
IV. Book value
1. Ending book value 107,656,655.34 107,656,655.34
2. Beginning book value 86,975,114.31 86,975,114.31
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(2) Investment property with fair value measurement model
□ Applicable Not applicable
(3) Investment property without property certificate of title
□ Applicable Not applicable
Other description:
None
21. Fixed assets
Unit: yuan
Items Ending balance Beginning balance
Fixed assets 1,720,571,118.72 1,299,517,887.54
Total 1,720,571,118.72 1,299,517,887.54
(1) Situation about fixed assets
Unit: yuan
Office
Houses and Machinery and Transportation
Items equipment and Total
buildings equipment equipment
others
I. Original book value:
1. Beginning balance 816,660,305.08 695,192,193.23 2,567,259.53 227,092,564.50 1,741,512,322.34
2. Increase in the current
359,143,085.59 143,019,136.74 302,781.40 23,645,568.31 526,110,572.03
period
(1) Purchase 31,371.18 45,107,997.05 294,099.52 23,012,633.58 68,446,101.33
(2) Transfer into
358,367,902.49 95,841,327.42 426,548.65 454,635,778.56
projects under construction
(3) Increment from
business combination
(4) Impact of exchange rate
743,811.92 2,069,812.27 8,681.88 206,386.08 3,028,692.15
changes
3. Decrease in the current
24,125,005.55 21,691,241.35 220,383.14 674,215.81 46,710,845.85
period
(1) Disposal or
21,691,241.35 220,383.14 674,215.81 22,585,840.30
scrapping
(2) Transfer in of investment
24,125,005.55 24,125,005.55
property
4. Ending balance 1,151,678,385.12 816,520,088.62 2,649,657.79 250,063,917.00 2,220,912,048.52
II. Accumulated depreciation
1. Beginning balance 118,838,866.02 220,462,662.52 2,199,293.28 100,493,612.98 441,994,434.80
2. Increase in the current
12,096,646.33 37,863,498.55 155,860.73 17,051,174.68 67,167,180.29
period
(1) Accrual 12,096,646.33 37,863,498.55 155,860.73 17,051,174.68 67,167,180.29
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3. Decrease in the current
2,264,838.49 5,477,252.99 209,363.98 869,229.83 8,820,685.29
period
(1) Disposal or
5,477,252.99 209,363.98 869,229.83 6,555,846.80
scrapping
(2) Transfer in of investment
2,264,838.49 2,264,838.49
property
4. Ending balance 128,670,673.86 252,848,908.08 2,145,790.03 116,675,557.83 500,340,929.80
III. Provision for impairment
1. Beginning balance
2. Increase in the current
period
(1) Accrual
3. Decrease in the current
period
(1) Disposal or
scrapping
4. Ending balance
IV. Book value
1. Ending book value 1,023,007,711.26 563,671,180.54 503,867.76 133,388,359.17 1,720,571,118.72
2. Beginning book value 697,821,439.06 474,729,530.71 367,966.25 126,598,951.52 1,299,517,887.54
(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
Other description:
None
(5) Disposal of fixed assets
□ Applicable Not applicable
Other description:
None
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22. Construction in progress:
Unit: yuan
Items Ending balance Beginning balance
Construction in progress 143,094,482.19 495,248,025.93
Total 143,094,482.19 495,248,025.93
(1) Projects under construction
Unit: yuan
Ending balance Beginning balance
Items Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
Chongqing Yiyuan 24,945,471.83 24,945,471.83 16,356,912.92 16,356,912.92
Decoration of Huizhou
2,319,136.25 2,319,136.25 2,966,677.50 2,966,677.50
Plant
Topband (India) Plant 15,957,672.34 15,957,672.34 15,671,909.07 15,671,909.07
Ningbo Topband Industrial
17,836,966.56 17,836,966.56 342,090,917.50 342,090,917.50
Park
Test equipment to be
29,478,749.08 29,478,749.08 102,011,463.63 102,011,463.63
commissioned
Vietnam Dong Nai
3,711,048.82 3,711,048.82 7,740,644.30 7,740,644.30
Decoration
Dormitory renovation of
953,557.22 953,557.22 953,557.22 953,557.22
Huizhou plant
Huizhou YAKO
16,752,921.13 16,752,921.13 3,452,853.07 3,452,853.07
Automation Plant
Qingdao Plant 1,804,902.19 1,804,902.19 1,086,337.54 1,086,337.54
Huizhou Electrical No. 2
Industrial Park Phase-I 4,058,841.31 4,058,841.31 2,916,753.18 2,916,753.18
Project
Nantong Industrial Park 4,231,698.02 4,231,698.02 0.00
Plant decoration in Mexico 17,369,660.72 17,369,660.72 0.00
Other sporadic works 3,673,856.72 3,673,856.72
Total 143,094,482.19 143,094,482.19 495,248,025.93 495,248,025.93
(2) Changes in the important projects under construction in the current period
Unit: yuan
Proportion Including:
Interest
Amount of of Accumulated interest
Increase in Other capitalization
Project Beginning transfer into Ending accumulated Project amount of capitalization Capital
Budget the current decrements rate in the
name balance fixed assets balance project progress interest amount in source
period this period current
this period investment capitalization the current
period
in budget period
Chongqing Capital
230,000,000.00 16,356,912.92 8,588,558.91 24,945,471.83 93.91% 94%
Yiyuan raising
Topband
(India) 136,004,000.00 15,671,909.07 379,172.09 93,408.82 15,957,672.34 85.30% 85% Other
Plant
Ningbo Capital
465,704,300.00 342,090,917.50 26,231,211.50 350,476,789.87 8,372.57 17,836,966.56 73.28% 79%
Topband raising
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Industrial
Park
Plant in
Dong Nai, 75,000,000.00 7,740,644.30 7,754,828.98 7,891,112.62 3,893,311.85 3,711,048.81 90.90% 85% Other
Vietnam
Total 906,708,300.00 381,860,383.79 42,953,771.48 358,367,902.49 3,995,093.24 62,451,159.54
(3) Provision for impairment of project under construction in the current period
□ Applicable Not applicable
Other description:
None
(4) Engineering materials
□ Applicable Not applicable
Other description:
None
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
Items Houses and buildings Total
I. Original book value
1. Beginning balance 74,075,277.50 74,075,277.50
2. Increase in the current period 8,603,955.28 8,603,955.28
(1) The lease contract for the current period 8,189,065.35 8,189,065.35
(2) Increase in original value due to contract change 414,889.93 414,889.93
3. Decrease in the current period
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4. Ending balance 82,679,232.78 82,679,232.78
II. Accumulated depreciation
1. Beginning balance 15,907,125.62 15,907,125.62
2. Increase in the current period 11,559,119.61 11,559,119.61
(1) Accrual 11,559,119.61 11,559,119.61
3. Decrease in the current period
(1) Disposal
4. Ending balance 27,466,245.23 27,466,245.23
III. Provision for impairment
1. Beginning balance
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 55,212,987.55 55,212,987.55
2. Beginning book value 58,168,151.88 58,168,151.88
Other description:
None
26. Intangible assets
(1) Situation of intangible assets
Unit: yuan
Land usage Patent Non-patented
Items Software Trademark Total
right right technology
I. Original book value
1. Beginning balance 238,231,231.17 435,321.58 395,881,185.31 23,753,932.02 9,728,450.00 668,030,120.08
2. Increase in the
1,739,622.05 46,777,128.43 356,150.23 48,872,900.71
current period
(1) Purchase 483,730.00 356,150.23 839,880.23
(2) Internal
46,777,128.43 46,777,128.43
R&D
(3) Increment
from business
combination
(4) Increase due to
1,255,892.05 1,255,892.05
exchange rate changes
3. Decrease in the 293,768.36 293,768.36
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current period
(1) Disposal
(2) Decrease due to
293,768.36 293,768.36
exchange rate changes
4. Ending balance 239,677,084.86 435,321.58 442,658,313.74 24,110,082.25 9,728,450.00 716,609,252.43
II. Accumulated
amortization
1. Beginning balance 15,679,029.95 435,321.58 190,562,973.49 20,088,159.26 5,624,862.50 232,390,346.78
2. Increase in the
1,957,779.30 36,492,956.85 945,554.24 1,122,408.22 40,518,698.61
current period
(1) Accrual 1,957,779.30 36,492,956.85 945,554.24 1,122,408.22 40,518,698.61
(2) Increase due to
exchange rate changes
3. Decrease in the
253,127.18 253,127.18
current period
(1) Disposal
(2) Decrease due to
253,127.18 253,127.18
exchange rate changes
4. Ending balance 17,383,682.06 435,321.58 227,055,930.34 21,033,713.50 6,747,270.72 272,655,918.20
III. Provision for
impairment
1. Beginning balance
2. Increase in the
current period
(1) Accrual
3. Decrease in the
current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 222,293,402.79 215,602,383.40 3,076,368.75 2,981,179.28 443,953,334.22
2. Beginning book
222,552,201.22 205,318,211.82 3,665,772.76 4,103,587.50 435,639,773.30
value
The proportion of intangible assets formed through internal R&D in the balance of intangible assets at the end of
the current period accounted for 6.53%.
(2) Situation of land usage right without property certificate of title
□ Applicable Not applicable
Other description:
None
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27. Development expenditure
Unit: yuan
Increase in the current period Decrease amount in the current period
Beginning Internal Transferred to Ending
Items Recognized as
balance development Other current profits balance
intangible assets
expenditure and losses
Intelligent
controller 49,182,845.49 54,786,544.75 28,942,388.79 75,027,001.45
project
Lithium battery
6,675,242.57 9,630,943.40 4,460,551.65 11,845,634.32
project
Motor and
control system 10,500,319.42 2,873,868.57 13,374,187.99
project
Total 66,358,407.48 67,291,356.72 46,777,128.43 86,872,635.77
Other description:
None
28. Goodwill
(1) Original book value of goodwill
Unit: yuan
Decrement
Increase in the current in the
period current
Name of investees or items forming period
Beginning balance Ending balance
goodwill
Disposal formed by
business
combination
Shenzhen YAKO Automation Technology
107,314,446.71 107,314,446.71
Co., Ltd.
Shenzhen Allied Control System Co., Ltd. 53,768,699.68 53,768,699.68
Shenzhen Meanstone Intelligent
3,006,892.59 3,006,892.59
Technology Co., Ltd.
Hangzhou Zhidong Motor Technology Co.,
1,322,921.77 1,322,921.77
Ltd.
Taixing Ninghui Battery Co., Ltd. 1,962,891.12 1,962,891.12
Shenzhen Tengyi Industrial Co., Ltd. 131,783.24 131,783.24
Total 167,507,635.11 167,507,635.11
(2) Impairment of goodwill
Unit: yuan
Increase in Decrement in
the current the current
Name of investees or items forming goodwill Beginning balance period period Ending balance
Provision
Shenzhen Allied Control System Co., Ltd. 53,768,699.68 53,768,699.68
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Shenzhen Meanstone Intelligent Technology Co.,
3,006,892.59 3,006,892.59
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 expenses
Unit: yuan
Increase in the Amortization in Other reduced
Items Beginning balance Ending balance
current period the current period amount
Decoration cost 94,763,914.58 10,557,592.24 16,005,463.90 89,316,042.92
Other 387,701.80 5,197,129.43 2,326,718.12 3,258,113.11
Total 95,151,616.38 15,754,721.67 18,332,182.02 92,574,156.03
Other description:
None
30. Deferred tax assets/deferred tax liabilities
(1) Non-offset deferred tax assets
Unit: yuan
Ending balance Beginning balance
Items Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Provision for asset impairment 272,048,720.32 41,779,910.07 261,692,978.84 40,332,191.17
Deductible loss 144,811,506.82 28,336,235.00 69,221,226.16 13,336,499.73
Amortization of intangible assets 75,799,406.84 11,369,911.02 60,259,563.87 9,038,934.58
Deferred income 15,201,300.00 2,280,195.00 14,150,200.00 2,122,530.00
Option fee 64,206,307.20 9,630,946.08 253,046,279.23 37,956,941.88
Total 572,067,241.18 93,397,197.17 658,370,248.10 102,787,097.36
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(2) Deferred tax liabilities without offset
Unit: yuan
Ending balance Beginning balance
Items Taxable temporary Deferred tax Taxable temporary Deferred tax
difference liabilities difference liabilities
Valuation and appreciation of assets of
1,245,029.87 186,754.48 2,589,919.73 388,487.96
business merger under different control
Changes in fair value of tradable
179,347,913.30 22,951,786.25 147,744,707.31 22,161,706.10
financial assets
Book-tax difference of fixed assets
22,861,445.75 5,754,225.90 10,334,504.12 2,570,545.66
depreciation
Book-tax difference of rental income 686,676.15 171,669.04 4,638,866.49 1,159,716.62
Total 204,141,065.07 29,064,435.67 165,307,997.65 26,280,456.34
(3) Deferred tax assets or liabilities listed by net amount after offset
Unit: yuan
Amount of mutual
Amount of offset
Ending balance of offset between deferred Beginning balance of
between deferred tax
Items deferred tax assets or tax assets and liabilities deferred tax assets or
assets and liabilities at
liabilities after offset at the beginning of the liabilities after offset
the end of the period
period
Deferred tax assets 93,397,197.17 102,787,097.36
Deferred tax liabilities 29,064,435.66 26,280,456.34
(4) Details of unrecognized deferred tax assets
Unit: yuan
Items Ending balance Beginning balance
Deductible temporary differences 2,264,776.17 6,322,216.54
Deductible loss 14,499,458.57 32,682,476.84
Total 16,764,234.74 39,004,693.38
(5) Deductible loss of unrecognized deferred tax assets will mature in the following years
Unit: yuan
Year Ending amount Beginning amount Remarks
2023
2024
2025
2026 277,177.40 2,183,482.54
2027 500,073.69
No time limit 13,722,207.48 30,498,994.30
Total 14,499,458.57 32,682,476.84
Other description:
None
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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
Prepayment for long-
307,315,620.42 307,315,620.42 72,041,428.40 72,041,428.40
term assets
Total 307,315,620.42 307,315,620.42 72,041,428.40 72,041,428.40
Other description:
None
32. Short-term loans
(1) Classification of short-term borrowings:
Unit: yuan
Items Ending balance Beginning balance
Credit loan 714,100,000.00 400,321,259.95
Undue notes payable 10,568,584.75 9,209,847.31
Total 724,668,584.75 409,531,107.26
Description of classification of short-term loans:
None
(2) Overdue short-term loans
The total amount of overdue but not repaid short-term loans at the end of the current period is 0.00 yuan, of which
the important overdue but not repaid short-term loans are as follows:
□ Applicable Not applicable
Other description:
None
33. Tradable financial liabilities
□ Applicable Not applicable
Other description:
None
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34. Derivative financial liabilities
□ Applicable Not applicable
Other description:
None
35. Notes payable
Unit: yuan
Category Ending balance Beginning balance
Bank acceptance bill 1,253,202,540.98 1,231,106,148.24
Total 1,253,202,540.98 1,231,106,148.24
The total amount of notes payable due but unpaid at the end of the current period was 0.00 yuan.
36. Accounts payable
(1) Accounts payable listed
Unit: yuan
Items Ending balance Beginning balance
Within 1 year 1,518,687,879.28 1,493,504,084.34
1-2 years 2,167,820.25 11,697,003.66
2-3 years 1,595,291.62 4,533,633.55
Above 3 years 1,648,581.61 1,550,275.01
Total 1,524,099,572.76 1,511,284,996.56
(2) Significant accounts payable aged over 1 year
□ Applicable Not applicable
Other description:
None
37. Advances received
(1) Advances received listed
Unit: yuan
Items Ending balance Beginning balance
Within 1 year (including 1 year) 974,629.25 353,895.16
Total 974,629.25 353,895.16
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(2) Important advance receipts with aging over 1 year
□ Applicable Not applicable
Other description:
None
38. Contractual liabilities
Unit: yuan
Items Ending balance Beginning balance
Advances on sales 140,315,780.40 93,328,006.70
Total 140,315,780.40 93,328,006.70
Amount of and reasons for significant changes in book value during the reporting period
□ Applicable Not applicable
39. Employee compensation payable
(1) Presentation of employee pay payable
Unit: yuan
Increase in the Decrement in the
Items Beginning balance Ending balance
current period current period
I. Short-term compensation 198,774,619.59 770,678,731.96 830,634,537.55 138,818,814.00
II. Post-employment benefits - defined
89,176.43 37,940,319.31 37,795,256.52 234,239.22
contribution plan
Total 198,863,796.02 808,619,051.27 868,429,794.07 139,053,053.22
(2) Reporting of short-term remuneration
Unit: yuan
Beginning Increase in the Decrement in the
Items Ending balance
balance current period current period
1. Wages, bonuses, allowances and subsidies 196,488,729.39 727,845,632.14 787,976,059.75 136,358,301.78
2. Employee benefits 647,448.84 16,442,519.90 16,627,929.30 462,039.44
3. Social insurance expense 146,677.04 12,605,713.57 12,623,499.04 128,891.57
Including: medical insurance premiums 141,117.22 11,289,399.04 11,308,307.39 122,208.87
Industrial injury insurance expense 3,334.60 433,497.80 432,374.92 4,457.48
Maternity insurance expense 2,225.22 882,816.73 882,816.73 2,225.22
4. Housing provident fund 13,320,777.04 13,320,777.04
5. Trade union funds and staff education funds 249.29 4,041.31 3,981.95 308.65
8. Others 1,491,515.03 460,048.00 82,290.47 1,869,272.56
Total 198,774,619.59 770,678,731.96 830,634,537.55 138,818,814.00
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(3) List of defined contribution plan
Unit: yuan
Beginning Increase in the current Decrement in the
Items Ending balance
balance period current period
1. Basic endowment
87,064.50 37,317,213.89 37,178,020.92 226,257.47
insurance
2. Unemployment insurance
2,111.93 623,105.42 617,235.60 7,981.75
expense
Total 89,176.43 37,940,319.31 37,795,256.52 234,239.22
Other description:
None
40. Taxes payable
Unit: yuan
Items Ending balance Beginning balance
VAT (value-added tax) 27,917,630.10 1,412,358.17
Corporate income tax 21,680,830.21 435,351.06
Individual income tax 14,174,806.66 13,324,912.30
City maintenance and construction tax 366,380.84 145,831.34
Education surcharge 258,942.89 103,910.96
Property tax 4,172,400.43 751,908.84
Other taxes 306,885.40 80,269.78
Total 68,877,876.53 16,254,542.45
Other description:
None
41. Other payables
Unit: yuan
Items Ending balance Beginning balance
Other account payable 303,153,820.38 318,632,275.66
Total 303,153,820.38 318,632,275.66
(1) Interest payable
□ Applicable Not applicable
Other description:
None
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(2) Dividends payable
□ Applicable Not applicable
Other description, including significant dividends payable that have not been paid for more than 1 year. The
reasons for the non-payment shall be disclosed:
None
(3) Other payables
1) Other payables listed by fund nature
Unit: yuan
Items Ending balance Beginning balance
Payment for equipment 22,074,524.03 28,870,825.20
Payment for tooling 926,093.48 965,441.44
Transportation expenses 7,307,668.56 10,878,639.69
Rent and utilities 10,666,137.87 4,127,402.12
Margin, deposit 8,875,643.23 5,830,893.34
Wages for labor dispatching 351,322.03 3,595,257.44
Consultation fee 201,310.38 1,283,728.33
Fuel card fee 0.00 2,977,890.66
Payment of decoration 117,152.63 3,254,149.87
restricted stock repurchase obligations 241,082,253.60 242,525,433.60
Other 11,551,714.57 14,322,613.97
Total 303,153,820.38 318,632,275.66
2) Other significant payables aged over 1 year
□ Applicable Not applicable
Other description:
None
42. Liabilities held for sale
□ Applicable Not applicable
Other description:
None
43. Non-current liabilities due within one year
Unit: yuan
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Items Ending balance Beginning balance
Long-term borrowings due within one year 36,784,000.00 27,209,500.00
Lease liabilities due within one year 20,589,923.45 20,512,195.74
Total 57,373,923.45 47,721,695.74
Other description:
None
44. Other current liabilities
Unit: yuan
Items Ending balance Beginning balance
Output tax to be written off 5,467,273.22 2,874,899.86
Notes receivable that have been endorsed but not
46,426,155.84 104,189,643.96
derecognized
Total 51,893,429.06 107,064,543.82
Changes in increase or decrease for the short-term bonds payable:
□ Applicable Not applicable
Other description:
None
45. Long-term loans
(1) Classification of long-term loan
Unit: yuan
Items Ending balance Beginning balance
Mortgage loan 133,511,381.65 156,520,000.00
Credit loan 317,000,000.00 318,500,000.00
Total 450,511,381.65 475,020,000.00
Description of long-term loan classification:
None
Additional notes, including interest rate ranges:
None
46. Bonds payable
(1) Bonds payable
□ Applicable Not applicable
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(2) Changes in increase or decrease for the bonds payable (excluding the preferred share classified as
financial liability, perpetual liability and other financial instrument)
□ Applicable Not applicable
(3) Description of conversion conditions and time of convertible corporate bond
□ Applicable Not applicable
(4) Description of other financial instruments classified as financial liabilities
□ Applicable Not applicable
Other description:
None
47. Lease liabilities
Unit: yuan
Items Ending balance Beginning balance
Rent leasing 38,645,239.64 40,290,402.14
Total 38,645,239.64 40,290,402.14
Other description:
None
48. Long-term payables
□ Applicable Not applicable
Other description:
None
(2) Special payable
□ Applicable Not applicable
Other description:
None
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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
Other description:
None
50. Estimated liabilities
□ Applicable Not applicable
Additional descriptions, including relevant important assumptions and estimation explanations of important
estimated liabilities:
None
51. Deferred income
Unit: yuan
Increase in the Decrement in the
Items Beginning balance Ending balance Reasons of formation
current period current period
Government
Government
14,385,200.00 5,744,000.00 4,747,900.00 15,381,300.00 subsidies related to
subsidies
assets
Total 14,385,200.00 5,744,000.00 4,747,900.00 15,381,300.00
Items involving government subsidies:
Amount Amount
accounted Amount of write-
Newly Asset-
into non- included in down
Beginning increased Other Ending related/r
Liabilities items operating other income costs in
balance subsidy in the changes balance evenue-
revenue in in the current the
current period related
the current period current
period period
Special fund for the
industrialization of high-efficiency Asset-
1,105,000.00 97,500.00 1,007,500.00
energy-saving rare-earth permanent related
magnet motor
R&D equipment project of
intelligent home management Asset-
131,500.00 131,500.00
system such as IoT cloud related
computing technology
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R&D project of key technology for
Asset-
clean energy DC system 175,000.00 25,000.00 150,000.00
related
measurement
Nano lithium iron phosphate power Asset-
500,000.00 125,000.00 375,000.00
battery project related
Key technology R&D of 18650- Asset-
357,000.00 102,000.00 255,000.00
2.8A.h high power battery related
Intelligent grid connected project of
Asset-
distributed photovoltaic power 60,000.00 30,000.00 30,000.00
related
station
R&D project of 60A solar charging
Asset-
controller with peak power tracking 410,000.00 60,000.00 350,000.00
related
technology
R&D project of unmanned robot Asset-
2,550,000.00 300,000.00 2,250,000.00
cleaner related
Key technology R&D project of
rare-earth permanent magnet
Asset-
brushless DC motor and controller 4,000,000.00 2,000,000.00 2,000,000.00
related
with high speed ratio and variable
frequency
Monthly Acceptance Amortization
of Huizhou Anti-epidemic National Asset-
2,912,210.00 416,030.00 2,496,180.00
Debt Technical Transformation related
Project (2006) for 5 Years
Monthly Acceptance Amortization
of Technical Transformation
Project of Intelligent Controller in
Asset-
Huizhou Province and Technical 2,184,490.00 312,070.00 1,872,420.00
related
Transformation of Lithium Battery
Automation Production Line in
2006 for 5 Years
Monthly acceptance amortization
of provincial-level enterprise
technology transformation fund Asset-
5,744,000.00 1,148,800.00 4,595,200.00
(2106) special for promoting high- related
quality economic development for
5 years in 2022
Other description:
None
52. Other non-current liabilities
□ Applicable Not applicable
Other description:
None
53. Share capital
Unit: yuan
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Increase or decrease of change this time (+, -)
Conversion
Beginning Issuance of
Stock Ending balance
balance of new accumulation Other Subtotal
dividend
shares fund into
shares
Total
number 1,256,978,072.00 14,049,300.00 14,049,300.00 1,271,027,372.00
of shares
Other description:
Note: The share capital increased by 14,049,300.00 yuan in the current period, including 14,049,300.00 yuan due
to the exercise of stock options.
54. Other equity instruments
(1) Basic situation on preferred shares, perpetual bonds and other financial instruments outstanding at the
end of the period
Not applicable
(2) Table of changes in financial instruments such as preferred shares and perpetual bonds outstanding at
the end of the period
□ Applicable Not applicable
Other description:
None
55. Capital reserve
Unit: yuan
Beginning Increase in the current Decrement in the current
Items Ending balance
balance period period
Capital premium (share
2,076,431,608.14 54,522,812.37 0.00 2,130,954,420.51
premium)
Other capital reserves 63,621,541.60 79,510,789.24 53,296,748.22 89,835,582.62
Total 2,140,053,149.74 134,033,601.61 53,296,748.22 2,220,790,003.13
Additional descriptions, including the changes in increase or decrease in the current period and the reasons for
changes:
None
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56. Treasury shares
Unit: yuan
Increase in the current Decrement in the
Items Beginning balance Ending balance
period current period
Repurchase of company
shares in competitive 242,525,433.60 39,344,623.76 281,870,057.36
trading
Total 242,525,433.60 39,344,623.76 281,870,057.36
Additional descriptions, including the changes in increase or decrease in the current period and the reasons for
changes:
Note: The increase of treasury shares in this period is due to the repurchased share of 39,344,623.76 yuan by
major companies.
57. Other comprehensive income
Unit: yuan
Amount incurred in the current period
Minus: profits Minus:
and losses retained
included in earnings
Amount of other included in Minus: Attributabl
Beginning Attributable Ending
Items pre-income comprehensiv other income e to
balance to parent balance
tax incurred e income comprehensiv tax minority
company
in the current previously e income expense shareholder
after tax
period and previously s s after tax
transferred in and
the current transferred in
period currently
II. Other
comprehensive
- -
income that is 18,153,909.8 18,153,909.8
91,831,496.8 73,677,587.0
reclassified 7 7
8 1
into profits and
losses
Translatio
n difference of
- -
foreign 18,153,909.8 18,153,909.8
92,201,606.2 74,047,696.4
currency 7 7
9 2
financial
statements
Other 370,109.41 370,109.41
Total amount
- -
of other 18,153,909.8 18,153,909.8
91,831,496.8 73,677,587.0
comprehensive 7 7
8 1
income
Other description, including the adjustment to the effective portion of the profits and losses of cash flow hedging
transferred to the amount initially recognized for the hedged item:
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None
58. Special reserve
□ Applicable Not applicable
Additional descriptions, including the changes in increase or decrease in the current period and the reasons for
changes:
None
59. Surplus reserve
Unit: yuan
Increase in the current Decrement in the
Items Beginning balance Ending balance
period current period
Statutory surplus
186,397,631.76 186,397,631.76
reserve
Total 186,397,631.76 186,397,631.76
Explanation of the surplus reserve, including the changes in increase or decrease in the current period and the
reasons for the change:
None
60. Retained earnings
Unit: yuan
Items Current period Previous period
Retained earnings at the end of the previous period before
1,779,243,483.61 1,324,944,369.91
adjustment
Total retained earnings at the beginning of the period (+
-19,061,969.80
for increase, - for decrease)
Retained earnings at the beginning of last period after
1,779,243,483.61 1,305,882,400.11
adjustment
Plus: net profit attributable to owners of the parent
246,508,271.38 564,964,282.18
company in the current period
Minus: withdraw legal surplus reserve 35,037,674.23
Common stock dividends payable 62,713,008.60 56,565,524.45
Retained earnings at the end of the period 1,963,038,746.39 1,779,243,483.61
Details of retained earnings at the beginning of adjustment period:
1) Due to the retroactive adjustment of Accounting Standards for Business Enterprises and related new regulations,
the retained earnings at the beginning of the period was 0.00 yuan.
2) Due to the change of accounting policy, the retained earnings 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 0.00
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 retained earnings at the beginning of the period was 0.00 yuan with other adjustments.
61. Operating income and operating costs
Unit: yuan
Amount incurred in the current period Amount incurred in the previous period
Items
Income Cost Income Cost
Main business 4,212,996,240.53 3,420,959,502.11 3,613,778,665.34 2,751,947,592.34
Other business 15,006,897.04 474,527.50 30,266,947.06 13,348,149.05
Total 4,228,003,137.57 3,421,434,029.61 3,644,045,612.40 2,765,295,741.39
Income-related information:
Unit: yuan
Contract classification Division 1 Division 2 Intelligent Control Division Total
Types of commodities
Including:
Tool 1,606,784,503.47 1,606,784,503.47
Home appliances 1,515,196,016.05 1,515,196,016.05
New energy 858,103,466.53 858,103,466.53
Industry 135,322,059.03 135,322,059.03
Intelligent solutions 83,117,293.53 83,117,293.53
Other 29,479,798.96 29,479,798.96
Classified by business area
Including:
Domestic 1,568,861,062.41 1,568,861,062.41
Foreign 2,659,142,075.16 2,659,142,075.16
Total 4,228,003,137.57 4,228,003,137.57
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:
None
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62. Taxes and surcharges
Unit: yuan
Items Amount incurred in the current period Amount incurred in the previous period
City maintenance and construction tax 6,262,071.28 4,966,766.89
Education surcharge 4,472,907.99 3,547,687.35
Property tax 4,579,610.57 3,185,254.25
Land use tax 601,530.92 267,163.92
Stamp duty 4,843,716.89 1,278,559.97
Other 300,307.02 32,811.86
Total 21,060,144.67 13,278,244.24
Other description:
None
63. Sales expenses
Unit: yuan
Items Amount incurred in the current period Amount incurred in the previous period
Employee compensation 71,092,467.40 41,877,611.55
Transportation expenses 2,151,858.07 1,403,606.36
Business entertainment expenses 7,717,742.44 8,822,018.86
Travel expenses 2,886,798.49 4,242,288.17
Intermediary service expenses 8,406,618.19 4,907,544.95
Exhibition expenses 1,355,664.97 1,032,138.04
Material expenses 5,099,828.02 5,050,324.90
Mail expenses 1,403,983.61 1,170,285.37
Advertising expenses 2,136,657.03 916,778.99
Option fee 13,224,050.94 320,885.87
Other 9,705,156.32 7,146,401.53
Total 125,180,825.48 76,889,884.59
Other description:
None
64. Administrative expenses
Unit: yuan
Items Amount incurred in the current period Amount incurred in the previous period
Employee compensation 90,896,179.65 59,721,623.90
Decoration cost 1,047,245.23 6,465,540.78
Intermediary service expenses 6,962,764.32 4,322,142.87
Depreciation expense 18,911,602.57 6,619,979.60
Amortization of intangible assets 2,125,131.65 2,677,290.87
Rent and utilities 7,121,821.96 3,404,885.34
Property insurance expenses 1,294,426.48 758,226.43
Office expenses 1,068,314.24 1,246,496.01
Option fee 16,890,907.13 571,018.75
Travel expenses 1,814,741.13 802,360.66
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Recruitment expenses 545,122.70 906,502.78
Other 12,215,769.40 7,346,751.70
Total 160,894,026.46 94,842,819.69
Other description:
None
65. R&D expenses
Unit: yuan
Items Amount incurred in the current period Amount incurred in the previous period
Employee compensation 163,347,312.36 107,357,106.03
Amortization of intangible assets 37,824,208.93 27,849,377.95
Material expenses 17,546,287.12 11,634,261.27
Depreciation expense 6,180,237.11 4,465,093.77
Option fee 32,417,628.32 1,590,663.41
Tooling expenses 5,454,370.25 6,365,344.99
Travel expenses 1,369,302.27 1,805,639.42
Intermediary service expenses 5,514,466.09 1,867,115.15
Utilities 3,153,073.64 1,636,703.79
Rentals 2,011,756.62 922,869.58
Other 10,028,565.21 9,273,550.95
Total 284,847,207.92 174,767,726.31
Other description:
None
66. Financial expenses
Unit: yuan
Items Amount incurred in the current period Amount incurred in the previous period
Interest expense 14,644,344.03 6,676,232.42
Minus: interest income 6,486,250.66 4,397,537.66
Profit or loss on exchange -75,077,691.81 23,768,783.43
Other 3,303,222.82 27,713,678.97
Total -63,616,375.63 53,761,157.16
Other description:
None
67. Other revenues
Unit: yuan
Source for other revenues Amount incurred in the current period Amount incurred in the previous period
Government subsidies 14,488,480.96 16,456,682.22
Value added tax refund on demand 1,793,694.48 8,646,329.13
Return of individual income tax service
646,161.64 1,105,035.34
charge
Other 144,530.54 0.00
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68. Investment revenue
Unit: yuan
Items Amount incurred in the current period Amount incurred in the previous period
Long-term equity investment revenue
-1,489,563.00 -1,390,590.78
accounted by equity method
Investment revenue from disposal of
24,066,351.32
tradable financial assets
Investment revenue of financial products 241,902.47 1,200,855.83
Total -1,247,660.53 23,876,616.37
Other description:
None
69. Net exposure hedging revenue
None
70. Fair value change revenue
Unit: yuan
Sources of income from change in fair
Amount incurred in the current period Amount incurred in the previous period
value
Tradable financial assets 31,603,205.99 98,312,768.52
Total 31,603,205.99 98,312,768.52
Other descriptions: None
71. Credit impairment loss
Unit: yuan
Items Amount incurred in the current period Amount incurred in the previous period
Bad debt loss of other receivables -229,235.75 -1,036,235.40
Bad debt loss of accounts receivable -6,705,780.21 -14,198,551.72
Bad debt loss of commercial acceptance
121,687.18 -148,671.09
bill
Bad debt loss of receivables financing -4,094,005.92 219,638.25
Total -10,907,334.70 -15,163,819.96
Other descriptions: None
72. Asset impairment loss
Unit: yuan
Items Amount incurred in the Amount incurred in the
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current period previous period
II. Loss on inventory valuation and contract performance cost impairment
-46,406,707.31 -99,292,387.41
loss
Total -46,406,707.31 -99,292,387.41
Other description:
None
73. Assets disposal revenue
Unit: yuan
Source of assets disposal revenue Amount incurred in the current period Amount incurred in the previous period
Revenue from disposal of non-current
-284,674.88 -317,178.75
assets
Total -284,674.88 -317,178.75
74. Non-operating income
Unit: yuan
Amount included in the
Amount incurred in the Amount incurred in the
Items current non-recurring profits
current period previous period
and losses
Revenue from disposal of
259,566.02 49,698.80 259,566.02
non-current assets
Other 894,448.64 1,531,383.00 894,448.64
Total 1,154,014.66 1,581,081.80 1,154,014.66
Government subsidy included in the current profits and losses: None
Unit: yuan
Whether
the subsidy Whether Amount
Amount Asset-
Grant Grant Nature affects the it is the incurred in the
Subsidy project incurred in the related/revenue-
entity reasons type profits and special previous
current period related
losses of subsidy period
the year
Related to
Software rebate 1,793,694.48 4,443,028.35
revenue
Return of individual income tax service Related to
646,161.64 1,083,707.40
charge revenue
Related to
Subsidies on R & D 540,200.00 1,465,000.00
revenue
Technological transformation
supported by 2020 anti-epidemic 416,030.00 208,015.00 Asset-related
national debt funds
R&D project of unmanned robot
300,000.00 150,000.00 Asset-related
cleaner
Assisting funds for R&D equipment of
intelligent home management system
131,500.00 131,500.00 Asset-related
based on IoT cloud computing
technology
Nano lithium iron phosphate power 125,000.00 125,000.00 Asset-related
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battery project
Financial support fund of Xinqiao
Related to
Town of Songjiang District of 110,000.00
revenue
Shanghai
High rate 18650-2.8Ah
power battery key technology R&D 102,000.00 102,000.00 Asset-related
project
Subsidy on talent quality improvement Related to
100,000.00
project revenue
Industrialization of high efficiency
energy saving motor for permanent 97,500.00 97,500.00 Asset-related
magnet with rare earth
Subsidy on R&D project of
60A solar charging controller with peak 60,000.00 60,000.00 Asset-related
power tracking technology
Exemption subsidies on urban land use Related to
43,592.50
tax due to the pandemic revenue
Intelligent grid connected project of
30,000.00 30,000.00 Asset-related
distributed photovoltaic power station
Subsidies on clean energy projects 25,000.00 25,000.00 Asset-related
Related to
Position stabilization subsidy 723,938.84 24,413.33
revenue
Related to
Industrial enterprise bonus 2,914,312.72 20,000.00
revenue
Provincial-level enterprise technology
transformation fund for promoting 1,148,800.00 Asset-related
high-quality economic development
Key technology R&D project of rare-
earth permanent magnet brushless DC
2,000,000.00 Asset-related
motor and controller with high speed
ratio and variable frequency
Special fund for intelligent controller
and lithium battery technology 312,070.00 Asset-related
transformation
Cultivation fund for high-tech Related to
1,650,000.00
enterprises revenue
Subsidy on export insurance premium Related to
1,359,525.00
from the Commerce Bureau revenue
Shenzhen Science and Technology
Innovation Commission: technical
Related to
breakthrough projects in 2022 500,000.00
revenue
submitted to the Major Special Projects
Office
Subsidy on retention training from the
Related to
Human Resources and Social Security 1,963,000.00
revenue
Bureau of Shenzhen
Related to
Other 234,134.94
revenue
Subsidy on high-quality growth of
Related to
foreign trade and support program by 1,453,557.00
revenue
the Commerce Bureau
Technology transformation project for
Related to
intelligent controller and automatic 832,155.00
revenue
production line of lithium battery
Industrial and commercial electricity Related to
459,804.80
subsidy revenue
Provincial economic promotion 300,000.00 Related to
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subsidy in 2021 revenue
Related to
Training replaced for operation subsidy 288,500.00
revenue
Related to
Patent application subsidy 157,650.00
revenue
Related to
Policy measure bonus 70,000.00
revenue
Related to
Exhibition subsidy 68,400.00
revenue
Related to
Employment filing subsidy 65,000.00
revenue
Related to
Business development subsidy 60,258.00
revenue
Subsidy on Ningbo demonstration Related to
20,000.00
projects revenue
Subsidy on Hubei employees newly
Related to
recruited by small, medium and micro 7,000.00
revenue
enterprises
Subsidy on software copyright Related to
5,100.00
registration revenue
Total 17,072,867.62 12,006,181.38
Other description:
None
75. Non-operating expenses
Unit: yuan
Amount included in the
Amount incurred in the Amount incurred in the
Items current non-recurring profits
current period previous period
and losses
External donations 50,000.00
Loss on damage and
scrapping of non-current 353,000.78 148,616.46
assets
Customer quality deduction
2,556,764.63 3,039,355.65
expenses
Other 208,629.48 1,248,193.58
Total 3,118,394.89 4,486,165.70
Other description:
None
76. Income tax expenses
(1) Table of income tax expenses
Unit: yuan
Items Amount incurred in the current period Amount incurred in the previous period
Current income tax expenses 29,479,656.28 24,865,568.64
Deferred tax expense -11,672,335.07 20,774,273.52
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Total 17,807,321.21 45,639,842.16
(2) Adjustment process of accounting profits and income tax expenses
Unit: yuan
Items Amount incurred in the current period
Total profits 266,068,595.01
Income tax expenses calculated at statutory/applicable tax rates 39,910,289.25
Impact of different tax rates applied to subsidiaries 558,510.07
Effect of income tax adjustment in previous period -3,954,736.33
Impact of non-taxable income 41,163.30
Impact of non-deductible cost, expense and loss 4,346,251.90
Impact of deductible loss of unrecognized deferred tax assets in
-15,534.79
previous period
Impact of deductible temporary differences or deductible losses
2,029,693.10
of unrecognized deferred tax assets in the current period
Impact of additional deductible expenses -17,669,497.61
Other -7,438,817.68
Income tax expenses 17,807,321.21
Other description:
None
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 the current period Amount incurred in the previous period
Interest income 11,355,372.53 4,397,537.66
Government subsidies 18,797,067.62 8,671,130.63
Deposit and margin collection 8,088,135.22 1,058,934.03
Exercise-related individual income tax
6,379,602.34 11,047,469.30
collected on an agency basis
Personal borrowings and expenditures 928,408.04 779,256.00
litigation enforcement expenses 827,707.00
Other 340,044.04 4,264,267.78
Total 45,888,629.79 31,046,302.40
Description of other cash received related to operating activities:
None
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(2) Other cash paid related to operating activities
Unit: yuan
Items Amount incurred in the current period Amount incurred in the previous period
Service charge 1,326,317.40 1,542,403.90
Management expense paid in cash 32,070,205.47 25,252,906.57
R&D expenses paid in cash 39,623,450.95 33,505,485.16
Sales expense paid in cash 40,864,307.14 34,691,387.17
Margin and deposit expenses 5,326,178.34 3,479,392.66
Employee borrowings 3,808,623.88 3,763,609.50
Other 6,208,734.33 10,776,663.69
Total 129,227,817.51 113,011,848.65
Description of other cash paid related to operating activities:
None
(3) Other cash received related to investment activities
□ Applicable Not applicable
Description of other cash received related to investment activities:
None
(4) Other cash paid related to investment activities
□ Applicable Not applicable
Description of other cash paid related to investment activities:
None
(5) Other cash received related to financing activities
Unit: yuan
Items Amount incurred in the current period Amount incurred in the previous period
Note margin 25,597,956.24 18,039,024.44
Total 25,597,956.24 18,039,024.44
Description of other cash received related to financing activities:
None
(6) Other cash paid related to financing activities
Unit: yuan
Items Amount incurred in the current period Amount incurred in the previous period
Note margin 14,697,411.67 1,561,294.47
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Share repurchase 40,787,803.76
Payment of lease liabilities 9,944,478.12 6,693,452.50
Intermediary fees for non-public
805,312.81
offerings
Total 65,429,693.55 9,060,059.78
Description of other cash paid related to financing activities:
None
79. Supplementary information of cash flow statement
(1) Supplementary materials of cash flow statement
Unit: yuan
Amount in the Amount in the
Supplementary information
current period previous period
1. Adjusting net profit to cash flow from operating activities:
Net profit 248,261,273.80 436,087,293.11
Plus: impairment of assets 57,314,042.01 114,456,207.37
Depreciation of fixed assets, depletion of oil and gas assets, depreciation of
67,167,180.29 49,924,287.12
productive biological assets
Depreciation of right-of-use assets 11,559,119.61 6,241,851.65
Amortization of intangible assets 40,518,698.61 31,069,633.99
Amortization of long-term deferred expenses 18,332,182.03 11,996,203.14
Loss from disposal of fixed assets, intangible assets and other long-term assets
284,674.88 -317,178.75
(income marked with "-")
Losses on scrapping of fixed assets (income marked with "-") 353,000.78 259,335.13
Loss from fair value change (income marked with "-") -31,603,205.99 -98,312,768.52
Financial expenses (income marked with "-") 18,329,844.69 33,018,572.00
Investment loss (income marked with "-") 1,247,660.53 -23,876,616.37
Decrease in deferred tax assets (increase marked with "-") 9,389,900.19 -21,833,194.16
Increase in deferred tax liabilities (decrease marked with "-") 2,783,979.32 14,700,279.13
Decrease in inventory (increase marked with "-") -11,859,608.55 -794,887,074.14
Decrease in operating receivables (increase marked with "-") -278,292,463.29 -470,369,225.23
Increase in operating payables (decrease marked with "-") -82,499,123.52 484,777,126.41
Other 3,599,100.00 1,359,530.00
Net cash flow from operating activities 74,886,255.39 -225,705,738.12
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 1,573,782,719.24 1,284,383,758.87
Minus: beginning balance of cash 1,736,104,958.20 1,196,835,834.93
Plus: ending balance of cash equivalents
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Minus: beginning balance of cash equivalents
Net increase in cash and cash equivalents -162,322,238.96 87,547,923.94
(2) Net cash paid for the acquisition of subsidiaries in the current period
□ Applicable Not applicable
Other descriptions: None
(3) Net cash received for disposal of subsidiaries in the current period
□ Applicable Not applicable
Other descriptions: None
(4) Composition of cash and cash equivalents
Unit: yuan
Items Ending balance Beginning balance
I. Cash 1,573,782,719.24 1,736,104,958.20
Including: cash in stock 966,707.91 1,015,081.13
Bank deposit available for payment at any time 1,391,833,225.22 1,337,414,181.07
Other monetary capital for payment at any time 180,982,786.11 397,675,696.00
III. Balance of cash and cash equivalents at the end of the period 1,573,782,719.24 1,736,104,958.20
Other description:
None
80. Notes to items in change statement of owner's equity
Describe the names and adjusted amounts of "other" items that adjusted the closing balance of the previous year:
None
81. Assets with limited ownership or use right
Unit: yuan
Items Book value at the end of the period Restricted reasons
Monetary capital 18,372,985.21 Margin, etc.
Fixed assets 250,442,431.76 Mortgage housing loan
Total 268,815,416.97
Other description:
None
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82. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: yuan
Foreign currency balance at Balance converted into RMB
Items Exchange rate for conversion
the end of the period at the end of the period
Monetary capital
Including: US dollars 67,927,475.60 6.7114 455,888,459.74
Euros 1,581,436.39 7.0084 11,083,338.80
Hong Kong dollars 1,825,039.76 0.8552 1,560,774.00
Indian rupee 1,036,186,080.97 0.0850 88,075,816.88
Vietnamese dong 3,933,217,964.00 0.0003 1,179,965.39
Japanese Yen 33,290,117.00 0.0491 1,634,544.74
Romanian Leu 2,265,454.06 1.4171 3,210,374.95
Mexican Peso 2,707,959.79 0.3332 902,292.20
Accounts receivable
Including: US dollars 169,377,746.94 6.7114 1,136,761,810.81
Euros 185,968.75 7.0084 1,303,343.39
Hong Kong dollars 7,091,041.17 0.8552 6,064,258.41
Indian rupee 941,962,803.65 0.0850 80,066,838.31
Vietnamese dong 109,191,626,672.00 0.0003 32,757,488.00
Japanese Yen 44,099,511.00 0.0491 2,165,285.99
Receivables financing
Including: US dollars 21,228,897.14 6.7114 142,475,620.27
Accounts payable
Including: US dollars 6,768,711.66 6.7114 45,427,531.43
Hong Kong dollars 35,810.06 0.8552 30,624.41
Indian rupee 67,574,394.79 0.0850 5,743,823.56
Vietnamese dong 8,700,598,543.00 0.0003 2,610,179.56
Japanese Yen 66,891,340.00 0.0491 3,284,364.79
Other description:
None
(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;
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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
Euros as the recording currency;
5. TOPBAND JAPAN Co., Ltd., a sub-subsidiary of the Company, is mainly located in Nagoya, Japan, with
Japanese Yen as the recording currency;
6. Q.B.PTE.LTD, the grandson company of Topband, is located in Singapore, with Singapore dollars as the
bookkeeping base currency;
7. TOPBAND SMART EUROPE COMPANY LIMITED S.R.L., the grandson company of Topband, is located in
Timisoara, Romania, with Leu as
the bookkeeping base currency;
8. TOPBAND MEXICO, S.DER.L.DEC.V, the grandson company of Topband, is located in Monterrey, Mexico,
with peso as the bookkeeping base currency.
83. Hedging
The qualitative and quantitative information on hedging items, related hedging instruments, and hedged risks is
disclosed according to the type of hedging:
None
84. Government subsidies
(1) Basic situation of government subsidies
Unit: yuan
Amount included
Items
Category Amount in the current
presented
profits and losses
Special fund for the industrialization of high-efficiency energy-saving rare- Deferred
97,500.00 97,500.00
earth permanent magnet motor income
R&D equipment project of intelligent home management system such as IoT Deferred
131,500.00 131,500.00
cloud computing technology income
Deferred
R&D project of key technology for clean energy DC system measurement 25,000.00 25,000.00
income
Deferred
Nano lithium iron phosphate power battery project 125,000.00 125,000.00
income
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Deferred
Key technology R&D of 18650-2.8A.h high power battery 102,000.00 102,000.00
income
Deferred
Intelligent grid connected project of distributed photovoltaic power station 30,000.00 30,000.00
income
R&D project of 60A solar charging controller with peak power tracking Deferred
60,000.00 60,000.00
technology income
Deferred
R&D project of unmanned robot cleaner 300,000.00 300,000.00
income
Key technology R&D project of rare-earth permanent magnet brushless DC Deferred
2,000,000.00 2,000,000.00
motor and controller with high speed ratio and variable frequency income
Monthly Acceptance Amortization of Huizhou Anti-epidemic National Debt Deferred
416,030.00 416,030.00
Technical Transformation Project (2006) for 5 Years income
Monthly Acceptance Amortization of Technical Transformation Project of
Deferred
Intelligent Controller in Huizhou Province and Technical Transformation of 312,070.00 312,070.00
income
Lithium Battery Automation Production Line in 2006 for 5 Years
Monthly acceptance amortization of provincial-level enterprise technology
Deferred
transformation fund (2106) special for promoting high-quality economic 1,148,800.00 1,148,800.00
income
development for 5 years in 2022
Received from Shenzhen Science and Technology Innovation Commission: Other
1,000,000.00 1,000,000.00
the first batch of funds for the cultivation of high-tech enterprises in 2022 income
Received from the Industry and Information Technology Bureau of Shenzhen
Other
Municipality: Chen Weibo applied for the single champion award program 2,000,000.00 2,000,000.00
income
and funding plan in manufacturing industry in 2022
Received from Shenzhen Administration for Industry and Commerce: Foreign
Other
Trade Office - Export credit insurance premium subsidy program from July to 951,719.00 951,719.00
income
December 2022
Received from Shenzhen Science and Technology Innovation Commission:
Other
Major Special Projects Office - technical breakthrough projects in 2022 500,000.00 500,000.00
income
("2022014 important 3D objects based on SLAM")
Received from the Human Resources Bureau of Shenzhen Nanshan District:
Other
One-time social security subsidy and support program for affected enterprises 5,100.00 5,100.00
income
in sealed and controlled areas
Received from Shenzhen Patent Office of China National Intellectual Property
Other
Administration: the second reimbursement (64-252) of Shenzhen trademark 1,000.00 1,000.00
income
registration funding in 2021
Received from the Science and Technology Innovation Bureau of Shenzhen Other
240,200.00 240,200.00
Nanshan District: Enterprise R&D investment subsidy and support plan income
Received from Shenzhen Science and Technology Innovation Commission: Other
200,000.00 200,000.00
the subsidy for the cultivation of high-tech enterprises in 2022 income
Received from Shenzhen Science and Technology Innovation Commission:
Other
the first batch of assisting funds for the cultivation of high-tech enterprises in 200,000.00 200,000.00
income
2022
Received from the Commerce Bureau of Shenzhen Municipality: Foreign
Other
Trade Office - Export credit insurance premium subsidy program from July to 407,806.00 407,806.00
income
December 2020
Received from the Industry and Information Technology Bureau of Bao'an
Other
District: the incentive funds for steady growth of industry and enterprises (the 268,512.72 268,512.72
income
second batch) in 2021
Received from the Science and Technology Bureau: 20220613 high quality Other
40,710.00 40,710.00
award and subsidy in 2021 income
Received from the Huizhou Zhongkai Science and Technology Innovation
Other
Bureau: the first batch of rewards and subsidies to certificated high-tech 50,000.00 50,000.00
income
enterprises in 2021
Received from the Zhongkai Economic Development Bureau: special funds
for industry and informatization in 2022/funds for the introduction and Other
645,800.00 645,800.00
cultivation of new-generation electronic information manufacturing income
enterprises in Huizhou
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Received from the Municipal Science and Technology Innovation
Other
Commission: the first batch of the third subsidies for the enterprise R&D in 100,000.00 100,000.00
income
2021
Received from Shenzhen Science and Technology Innovation Commission: Other
200,000.00 200,000.00
the subsidy for the R&D expenses of high-tech enterprises in 2021 income
Received from the Xili Sub-district Office, Nanshan District, Shenzhen: the Other
32,453.11 32,453.11
government subsidies for social security in colleges in 2022 income
Received from the Xili Sub-district Office, Nanshan District, Shenzhen: the Other
5,000.00 5,000.00
subsidy to help and support small and micro enterprises (JD) income
Received from the Science and Technology Innovation Bureau of Shenzhen
Other
Nanshan District: the double subsidy for national high-tech enterprises in 100,000.00 100,000.00
income
2022
Other
Received the subsidy for the cultivation of high-tech enterprises in 2022 100,000.00 100,000.00
income
Other
Financial subsidies for Hangzhou Zhidong Motor Technology Co., Ltd. 8,831.09 8,831.09
income
Received from Shenzhen Social Security Fund Management Bureau: social
Other
insurance premium refunded to Shenzhen Topband Supply Chain Services 1,500.00 1,500.00
income
Co., Ltd.
Received from Shenzhen Social Security Fund Management Bureau: the Other
3,475.20 3,475.20
social security subsidies income
Subsidy on retention training from the Human Resources and Social Security Other
1,963,000.00 1,963,000.00
Bureau of Shenzhen income
Other
Position stabilization subsidy 723,938.84 723,938.84
income
(2) Situation of government subsidies refund
Applicable □ Not applicable
Unit: yuan
Items Amount Reason
The overpayment by the special subsidy funds for the central foreign trade and economic Return of
8,465.00
development was refunded (treasury deposit of Shenzhen Finance Bureau) in 2020 overpayment
Other description:
None
85. Others
None
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
□ Applicable Not applicable
Other descriptions: None
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(2) Combined cost and business reputation
□ Applicable Not applicable
Other descriptions: None
(3) Identifiable assets and liabilities of the acquiree on the acquisition date
□ Applicable Not applicable
Other descriptions: None
(4) Gains or losses arising from re-measurement 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
□ Applicable Not applicable
(6) Other descriptions
□ Applicable Not applicable
2. Merger of enterprises under the same control
(1) Business combination under common control in the current period
□ Applicable Not applicable
Other descriptions: None
(2) Combined cost
□ Applicable Not applicable
Other descriptions: None
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(3) The book value of the assets and liabilities of the merged party on the combining date
□ Applicable Not applicable
Other descriptions: None
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:
None
4. Disposal of subsidiaries
Is there single disposal of the investment in a subsidiary which results in loss of control
□ Yes No
Whether there are step-by-step disposal of the investment in a subsidiary through multiple transactions and loss of
control in the current period
□ Yes No
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:
None
6. Others
None
IX. Interests in Other Entities
1. Equity in subsidiaries
(1) Composition of enterprise group
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Principal Shareholding
Registered Nature of proportion Acquisition
Name of subsidiary place of
place business method
business Direct Indirect
Shenzhen Topband Software Technology Co., Production
Shenzhen Shenzhen 100.00% Establishment
Ltd. and sales
Shenzhen Topband Automation Technology Production
Shenzhen Shenzhen 100.00% Establishment
Co., 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
Huizhou Topband Electrical Technology Co., Production
Huizhou Huizhou 100.00% Establishment
Ltd. and sales
Production
TOPBAND INDIA PRIVATE LIMITED India India 100.00% Establishment
and sales
Merger of
enterprises
Shenzhen YAKO Automation Technology Co., Production
Shenzhen Shenzhen 71.54% under
Ltd. and sales
different
control
Merger of
enterprises
Production
Shenzhen Allied Control System Co., Ltd. Shenzhen Shenzhen 100.00% under
and sales
different
control
Production
Huizhou Topband 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
enterprises
Shenzhen Meanstone Intelligent Technology Production
Shenzhen Shenzhen 77.25% under
Co., Ltd. and sales
different
control
Merger of
enterprises
Production
Shenzhen Yansheng Software Co., Ltd. Shenzhen Shenzhen 71.54% under
and sales
different
control
Merger of
enterprises
Hangzhou Zhidong Motor Technology Co., Production
Hangzhou Hangzhou 53.66% under
Ltd. and sales
different
control
Production
Topband（Vietnam)Co.,ltd Vietnam Vietnam 100.00% Establishment
and sales
TOPBAND SMART DONG NAI Production
Vietnam Vietnam 100.00% Establishment
(VIETNAM) 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 Investment 100.00% Establishment
Shenzhen Spark IOT Technology Co., Ltd. Shenzhen Shenzhen Sales 100.00% Establishment
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Shenzhen Tunnu 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., Production
Qingdao Qingdao 100.00% Establishment
Ltd. and sales
Shenzhen Tengyi Industrial Co., Ltd. Shenzhen Shenzhen Sales 100.00% Establishment
Merger of
enterprises
Production
Taixing Ninghui Battery Co., Ltd. Taixing Taixing 90.48% under
and sales
different
control
Shenzhen Topband Automotive Electronics
Shenzhen Shenzhen Sales 100.00% Establishment
Co., Ltd.
Q.B.PTE.LTD Singapore Singapore Investment 100.00% Establishment
Production
TOPBAND MEXICO,S.DE R.L.DE C.V. Mexico Mexico 100.00% Establishment
and sales
Hong Hong
Tunnu Innovation HK Limited Sales 100.00% Establishment
Kong Kong
TOPBAND SMART EUROPE COMPANY Production
Romania Romania 100.00% Establishment
LIMITED S.R.L. and sales
Huizhou YAKO Automation Technology Co., Production
Huizhou Huizhou 71.54% Establishment
Ltd. and sales
Shenzhen Zhongli Consulting Co., Ltd. Shenzhen Shenzhen Sales 100.00% Establishment
The The
TUNNU INNOVATION, INC United United Sales 100.00% Establishment
States States
Shenzhen Xiaoyou Aitu Innovation
Shenzhen Shenzhen Sales 100.00% Establishment
Technology Co., Ltd.
Production
Shenzhen Topband Motor Co., Ltd. Shenzhen Shenzhen 100.00% Establishment
and sales
Production
Shenzhen Yueshang Robot Co., Ltd. Shenzhen Shenzhen 100.00% Establishment
and sales
Explanation of the shareholding ratio in the subsidiary being different from the voting rights ratio:
None
Basis for holding half or less of the voting rights but still controlling the investee, and holding more than half of the
voting rights but not controlling the investee:
None
For important structured entities included in the consolidation scope, the basis for control:
None
Basis for determining whether a company is an agent or a principal:
None
Other description:
None
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(2) Important non-wholly-owned subsidiaries
Unit: yuan
Dividends declared
Shareholding Profits and losses
and distributed to Ending balance of
ratio of attributable to minority
Name of subsidiary minority minority
minority shareholders during the
shareholders during shareholders' equity
shareholders current period
the current period
Shenzhen YAKO Automation
28.46% 2,286,359.29 0.00 83,618,344.62
Technology Co., Ltd.
Explanation of the shareholding ratio of minority shareholder in subsidiary shareholder being different from the
voting rights ratio:
None
Other description:
None
(3) Major financial information of important non-wholly-owned subsidiaries
Unit: yuan
Ending balance Beginning balance
Name of Non- Non-
Non- Current Total Non- Current Total
subsidiary Current current
Total
liabilitie
current
liabilitie
Current
current
Total
liabilitie
current
liabilitie
assets assets liabilitie assets assets liabilitie
assets s s assets s s
s s
Shenzhen
YAKO
Automatio 299,074,667. 88,459,603.2 387,534,271. 79,527,775.4 89,349,494.8 308,879,580. 61,169,539.3 370,049,120. 74,267,013.3 83,326,157.8
9,821,719.45 9,059,144.56
n 87 1 08 4 9 82 1 13 0 6
Technolog
y Co., Ltd.
Unit: yuan
Amount incurred in the current period Amount incurred in the previous period
Name of Cash flow Cash flow
Total Total
subsidiary Operating from Operating from
Net profit comprehensive Net profit comprehensive
income operating income operating
income income
activities activities
Shenzhen
YAKO
- -
Automation 135,322,059.03 7,794,618.45 7,794,618.45 166,417,599.85 30,329,229.86 30,329,229.86
6,317,896.59 3,857,802.79
Technology
Co., Ltd.
Other description:
None
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(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
□ Applicable Not applicable
Other description:
None
2. Transactions in which the share of owners' equity in a subsidiary changes 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
Other description:
None
3. Interests in joint venture arrangements or associated enterprises
(1) Important joint ventures or associated enterprises
□ Applicable Not applicable
Explanation of the shareholding ratio in the joint ventures or associated enterprises being different from the voting
rights ratio:
None
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:
None
(2) Major financial information of important joint ventures
□ Applicable Not applicable
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(3) Major financial information of important associated enterprises
□ Applicable Not applicable
Other description:
None
(4) Summarized financial information of unimportant joint ventures and associated enterprises
□ Applicable Not applicable
Other description:
None
(5) Statement that there is a material limitation on the ability of the joint ventures or associated enterprises
to transfer funds to the Company
□ Applicable Not applicable
(6) Excess losses incurred by the joint ventures or associated enterprises
□ Applicable Not applicable
Other description:
None
(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
4. Important joint operation
□ Applicable Not applicable
Explanation of the shareholding ratio or shares in the joint operation being different from the voting rights ratio:
None
If a joint operation is a separate entity, the basis for classified as a joint operation is as follows:
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None
Other description:
None
5. Interests in structured entities not included in the scope of the consolidated financial statements
Relevant explanations of structured entities not included in the scope of the consolidated financial statements:
None
6. Others
None
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 this report. 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.
Sensitivity analysis technique is used for analyzing reasonableness of risk variable and possible impacts from
its variation on current profits and losses or shareholders' equity. Since any risk variable rarely changes in isolation,
and the correlation between the variables will have a significant effect on the final amount affected by a change in
a risk variable, the following contents are based on the assumption that changes in each variable are made in isolation.
The main risks arising from the 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
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(1) Foreign exchange risk
Foreign exchange risk refers to the risk of loss due to exchange rate fluctuations. The Company's exposure to
foreign exchange risks is mainly related to US dollars and Hong Kong dollars. Except for the Company and its
subsidiary, Topband (HK) Co., Limited, which purchases and sells some materials and products in US dollars, Euros
and Hong Kong dollars, TOPBAND INDIA PRIVATE LIMITED, the subsidiary, uses Indian rupee, Topband
(Vietnam) Co., Ltd. and TOPBAND SMART 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
TOPBAND MEXICO, S.DE R.L.DE C.V., the grandson company, uses Mexican pesos; TOPBAND SMART
EUROPE COMPANY LIMITED S.R.L., the grandson company, uses Romanian Leu, 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 June 30, 2022, the
assets and liabilities of the Company are all in RMB, except for those described in this report "Foreign currency
monetary items" that the assets and liabilities are in US dollars, Hong Kong dollars, Euros, Vietnamese dong and
Indian rupee. The foreign exchange risks arising from the assets and liabilities of such foreign currency balances
may have an impact on the Company's operating results.
The Company pays close attention to the impact of exchange rate fluctuations on the Company's foreign
exchange risks. The Company currently takes no measures to avoid foreign exchange risks.
(2) Other price risks
Investments held by the Company and classified as tradable financial assets are measured at fair value on the
balance sheet date. Therefore, the Company is exposed to the risk of changes in the securities market.
2. Credit risk
On June 30, 2022, 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
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are taken to recover overdue claims. In addition, the Company reviews the recovery of each individual receivables
on each balance sheet date to ensure that adequate provision is made for uncollectible amounts. As a result, the
Management of the Company believes that the credit risk assumed by the Company has been significantly reduced.
The Company's working capital is deposited in a bank with a high credit rating, so the credit risk of working
capital is low.
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. 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
(I) Tradable financial assets 272,602,542.73 272,602,542.73
1. Financial asset at fair
value and changes through 272,602,542.73 272,602,542.73
current income
(2) Equity instrument
272,602,542.73 272,602,542.73
investment
(II) Receivables financing 186,797,543.01 186,797,543.01
1. Financial assets measured
at fair value and whose
186,797,543.01 186,797,543.01
changes are included in
other comprehensive income
(1) Bank acceptance bill 48,766,925.55 48,766,925.55
(2) Accounts receivable 138,030,617.46 138,030,617.46
Total assets continuously
459,400,085.74 459,400,085.74
measured at fair value
II. Non-continuous fair value
-- -- -- --
measurement
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2. The basis for determining the market price of continuous and non-continuous first-level fair value
measurement items
None
3. Continuous and non-continuous second-level fair value measurement items, valuation techniques adopted
and qualitative and quantitative information of important parameters
None
4. Continuous and non-continuous third-level fair value measurement items, valuation techniques adopted
and qualitative and quantitative information of important parameters
None
5. Continuous third-level fair value measurement items, adjustment information between beginning and
ending book value and sensitivity analysis of unobservable parameters
None
6. For continuous fair value measurement items, if the conversion occurs among different levels in the current
period, the reasons for the conversion and the policies for determining the conversion time point
None
7. Technical changes in valuation during the current period and the reasons for such changes
None
8. Fair value of financial assets and financial liabilities not measured at fair value
None
9. Others
None
XII. Related Parties and Related Transactions
1. Information on the parent company of the Enterprise
The parent Proportion of the
Name of parent
Registered place Nature of business Registered capital company's parent company's
company
shareholding ratio voting rights in the
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in the Enterprise Enterprise
Wu Yongqiang Shenzhen 16.68% 16.68%
Other description:
None
2. Information on the Company's subsidiaries
For details of the subsidiaries of the enterprise, see "1. Equity in Subsidiaries" in "Note IX. Equity in Other Entities".
3. Information on the joint ventures and associated enterprises of the Enterprise
See the notes on key joint ventures or associated enterprises of the enterprise.
Information about other joint ventures or associated enterprises which make related-party transactions with the
Company in the current period or in the previous period with balance left are as follows:
□ Applicable Not applicable
Other description:
None
4. Other related parties
Name of other related parties Relationship between other related parties and the Enterprise
A company substantially controlled by the relative of the
Shenzhen Jizhiguang Electronics Co., Ltd.
Company's legal representative
Shenzhen Lianghui Technology Co., Ltd. A company whose shares are held by the Company
Shenzhen ORVIBO Technology Co., Ltd. A company whose shares are held by the Company
Shenzhen HANSC Intelligent Technology Co., Ltd. A company whose shares are held by the Company
Guangdong Zhongchuang Zhijia Scientific Research Co., Ltd. A company whose shares are held by the Company
Guangdong Huixin Semiconductor Co., Ltd. A company whose shares are held by the Company
Fujian Mini Dolphin New Energy Technology Co., Ltd. A company whose shares are held by the Company
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
Jiangsu Donghai Semiconductor Co., Ltd. A company whose shares are held by the Company
Jiangxi Salltech Microelectronis Technology Co., Ltd. A company whose shares are held by the Company
Other description:
None
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5. Related party transaction
(1) Related transactions involving the purchase and sale of goods and the provision and acceptance of
services
List of goods purchased/services received
Related
Amount incurred in Approved Is the transaction Amount incurred in
Related party transaction
the current period transaction limit limit exceeded the previous period
content
Shenzhen
Jizhiguang Raw materials 8,883,560.73 27,000,000.00 No 10,416,476.86
Electronics Co., Ltd.
Unit: yuan
List of goods sold/services provided
Unit: yuan
Amount incurred in the Amount incurred in the
Related party Related transaction content
current period previous period
Shenzhen ORVIBO
LED products 23,092,948.30 29,087,963.75
Technology Co., Ltd.
Related transactions involving the purchase and sale of goods and the provision and acceptance of services
None
(2) Relevant entrusted management/contracting and entrusted management/outsourcing
The Company's entrusted management/contracting situation:
□ Applicable Not applicable
Description of relevant entrusted management/contracting
□ Applicable Not applicable
The Company's entrusted management/outsourcing situation:
□ Applicable Not applicable
Description of associated management/outsourcing
□ Applicable Not applicable
(3) Related lease
The Company as a lessor:
□ Applicable Not applicable
The Company as a lessee:
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□ Applicable Not applicable
Description of associated leasing
□ Applicable Not applicable
(4) Related party guarantee situation
The Company as a guarantor
□ Applicable Not applicable
The Company as a guaranteed party
□ Applicable Not applicable
Description of associated guarantee
□ Applicable Not applicable
(5) Interbank lending of related parties
□ Applicable Not applicable
(6) Asset transfer and debt restructuring of related parties
□ Applicable Not applicable
(7) Remuneration of key management personnel
Unit: yuan
Items Amount incurred in the current period Amount incurred in the previous period
Remuneration of key management
3,352,000.00 3,310,400.00
personnel
(8) Other related transactions
For details, please refer to Section VI "Important Matters XI: Significant related transactions" 7. "Other
significant related transactions".
6. Payables due to related parties
(1) Item receivable
Unit: yuan
Ending balance Beginning balance
Project name Related party
Book balance Provision for bad Book balance Provision for bad
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debts debts
Shenzhen
Accounts ORVIBO
4,441,161.50 137,676.01 10,396,665.72 322,296.64
receivable Technology Co.,
Ltd.
(2) Payables
Unit: yuan
Book balance at the end of Book balance at the
Project name Related party
the period beginning of the period
Accounts payable Shenzhen Jizhiguang Electronics Co., Ltd. 839,481.80 3,099,592.01
Notes payable Shenzhen Jizhiguang Electronics Co., Ltd. 1,630,000.00 2,376,908.03
7. Commitment of related parties
□ Applicable Not applicable
8. Others
□ Applicable Not applicable
XIII. Share-based payment
1. General situation of share-based payments
Applicable □ Not applicable
Unit: yuan
Total amount of equity instruments
granted by the Company during the 0.00
current period
Total amount of equity instruments
exercised by the Company during the 14,049,300.00
current period
Total amount of the Company's equity
instruments that expired during the 227,500.00
current period
The range of the exercise price of the
Company's stock options outstanding at
None
the end of the period and the remaining
term of the contract
On November 2, 2021, the Company granted restricted stocks to incentive objects at a
grant price of 7.23 yuan per share, including 1,224 registered objects and 33,544,320
The range of the exercise price of the
restricted stocks in total. Topband carried out the performance appraisal for companies
Company's other equity instruments
and the individual incentive objects once in each fiscal year, taking the performance
outstanding at the end of the period and
appraisal target as the unlocking condition for restricted stocks. This incentive plan was
the remaining term of the contract
valid from the grant date of restricted stocks to the date when all restricted stocks were
unlocked or canceled, with the maximum time of 48 months. After 12 months from the
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grant date of the restricted stocks 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 9th Meeting of the 6th 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 3.80 yuan per share.
On July 26, 2019, the 15th Meeting of the 6th 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 3.80 yuan to 3.70 yuan 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, 2021, 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 has completed the cancellation of this part of the 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
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 stock options, that meet the exercise conditions and
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can be exercised. The Company plans to adopt the independent exercise mode. Cheng Xuejing 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.
On March 18, 2022, the 21st Meeting of the 7th Board of Directors and the 17th Meeting of the 7th Board of
Supervisors of the Company deliberated and approved the Proposal on the Third Exercise Period of 2018 Stock
Option Incentive Plan Meeting the Exercise Conditions and Exercisable Rights and the Proposal on Adjustment of
the Incentive Objects and the Number of Stock Options of 2018 Stock Option Incentive Plan: there are 543 incentive
objects in the third exercise period of the 2018 stock option incentive plan in the Company, in total of 14,049,300
stock options, which meet the exercise conditions and can be exercised. The Company plans to adopt the
independent exercise mode. The total number of exercisable stock options was 14,049,300.22 incentive objects,
including Zhang Ran and Wu Mingli, resigned from the Company due to personal reasons, and their 324,000 stock
options that have been granted but not yet exercised would not be exercised and would be canceled by the Company.
On May 16, 2022, 14,049,300 stock options involving 543 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 7th Board of Directors, and reviewed and
approved the Proposal on the < Company's Restricted Stock Incentive Plan in 2021 (Draft)> and its Abstract,
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 34,000,000 restricted stocks to 1,250 incentive objects.
On November 2, 2021, the Company held the 16th (Interim) Meeting of the 7th Board of Directors and the
13th (Interim) Meeting of the 7th 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 Ou Li who is one of the incentive objects, and Wang Cheng, Shen Zhiwen and Tian Conghui who
voluntarily gave up the subscription of the restricted stocks granted due to personal reasons, incentive objects were
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adjusted from 1,250 to 1,246, and the total restricted stocks granted for the first time was changed from 34,000,000
to 33,951,000.
On December 7, 2021, the Company held the 17th (Interim) Meeting of the 7th 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 up the subscription of some of the
restricted stocks granted to them due to personal reasons. With the authorization of the 2nd Extraordinary General
Meeting of Shareholders in 2021, 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 stocks granted decreased from 33,951,000 to 33,544,320.
On March 30, 2022, the 23rd (Interim) Meeting of the 7th Board of Directors and the 19th (Interim) Meeting
of the 7th Board of Supervisors of the Company deliberated and approved the Proposal on the Proposal on
Repurchase and Cancellation of Some Restricted Stocks from Restricted Stock Incentive Plan in 2021. 10 incentive
objects, including Wu Song and Luo Qingshan in the Restricted Stock Incentive Plan in 2021, resigned from the
Company due to personal reasons and no longer met conditions for becoming stock incentive objects. Therefore,
their 221,000 restricted stocks that have been granted but not yet unlocked would be canceled by the Company. In
the restricted stock incentive plan in 2021, the objects to be granted were reduced from 1,224 to 1,214.
2. Equity-settled share-based payments
Applicable □ Not applicable
Unit: yuan
Method for determining the fair value of the equity instrument Fair value of equity instruments = (market price on grant date -
on the grant date grant price) * number of shares
Basis for determining the number of exercisable equity Estimation shall be based on the latest available changes on
instruments vesting employee number and other subsequent information
Reasons for the significant difference between the estimates of
None
the current period and that of the previous period
Accumulated amount of equity-settled share-based payments
184,467,728.73
included in capital reserves
Total amount of expenses recognized by equity-settled share- 74,063,749.66
197
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based 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
None
XIV. Commitments and contingencies
1. Important commitments
Important commitments that existed on the balance sheet date
None
2. Contingencies
(1) Significant contingencies on the balance sheet date
□ Applicable Not applicable
(2) If the Company has no important contingencies that need to be disclosed, they shall also be explained
No signification contingencies need to be disclosed by the Company.
3. Others
None
XV. Events after the balance sheet date
1. Important non-adjusting matters
□ Applicable Not applicable
198
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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
□ Applicable Not applicable
(2) Prospective application method
□ Applicable Not applicable
2. Debt restructuring
□ Applicable Not applicable
3. Asset replacement
(1) Exchange of non-monetary assets
□ Applicable Not applicable
(2) Other asset replacement
□ Applicable Not applicable
4. Annuity plan
□ Applicable Not applicable
199
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5. Discontinued operation
□ Applicable Not applicable
6. Division information
(1) Basis for recognition and accounting policies of reportable divisions
□ Applicable Not applicable
(2) Financial information of reportable divisions
□ Applicable Not applicable
(3) If the Company has no reportable divisions, or fails to disclose the total assets and liabilities of each
division, the reasons shall be given.
None
(4) Other descriptions
None
7. Other important transactions and matters that have an impact on investors' decisions
None
8. Others
None
XVII. Notes on Main Items in the Financial Statements of the Parent Company
1. Accounts receivable
(1) Disclosure of accounts receivable by category
Unit: yuan
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
debts debts
Category
Proportio Book value Proportio Book value
Proportio Proportio
Amount Amount n of Amount Amount n of
n n
provision provision
Accounts
183,822,763.32 11.74% 183,822,763.32 231,814,138.25 15.06% 231,814,138.25
receivable
200
Full Text of Semi-annual Report 2022 of Shenzhen Topband Co., Ltd.
with single
provision
for bad
debts
Includin
g:
Receivable
s with
significant
individual
amount 182,576,113.53 11.66% 182,576,113.53 231,795,120.17 15.06% 231,795,120.17
and single
provision
for bad
debts
Receivable
s with not
significant
amount but
1,246,649.79 0.08% 1,246,649.79 19,018.08 0.00% 19,018.08
with single
provision
for bad
debts
Accounts
receivable
with
provision
1,382,518,047. 44,376,366.0 1,338,141,681. 1,306,965,149. 41,858,033.8 1,265,107,116.
for bad 88.26% 3.21% 84.94% 3.20%
60 8 52 94 5 09
debts by
aging
combinatio
n
Includin
g:
Accounts
receivable
with
provision
for bad 1,382,518,047. 44,376,366.0 1,338,141,681. 1,306,965,149. 41,858,033.8 1,265,107,116.
88.26% 3.21% 84.94% 3.20%
debts by 60 8 52 94 5 09
combinatio
n (aging
analysis
method)
1,566,340,810. 44,376,366.0 1,521,964,444. 1,538,779,288. 41,858,033.8 1,496,921,254.
Total 100.00% 2.83% 100.00% 2.72%
92 8 84 19 5 34
Single provision for bad debts: 0
Unit: yuan
Ending balance
Name Provision for Proportion Reasons for
Book balance
bad debts of provision provision
Accounts receivable with a single significant amount and
182,576,113.53
single bad debt provision
201
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Accounts receivable with insignificant single amount but
1,246,649.79
separate bad debt provision
Total 183,822,763.32
Single provision for bad debts: 44,376,366.08
Unit: yuan
Ending balance
Name Provision for bad Proportion of
Book balance
debts provision
Accounts receivable with bad debt provision drawn by portfolio
1,382,518,047.60 44,376,366.08 3.21%
with credit risk features
Total 1,382,518,047.60 44,376,366.08
Description of the basis for determining the portfolio:
None
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 Ending balance
Within 1 year (including 1 year) 1,560,963,332.58
1-2 years 540,042.66
2-3 years 2,841,066.76
Above 3 years 1,996,368.92
3-4 years 1,834,317.66
4-5 years 162,051.26
Above 5 years 0.00
Total 1,566,340,810.92
(2) Provision for bad debts withdrawn, recovered or reversed in current period
Provision for bad debts in the current period:
Unit: yuan
Amount changed in the current period
Beginning
Category Recover or Ending balance
balance Provision Write-off Other
reversal
Provision for
41,858,033.85 2,538,332.23 20,000.00 44,376,366.08
bad debts
Total 41,858,033.85 2,538,332.23 20,000.00 44,376,366.08
202
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Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
None
(3) Accounts receivable actually written off in the current period
Unit: yuan
Items Write-off amount
Accounts receivable actually written off 20,000.00
Of which the significant write-offs of accounts receivable:
None
Description of accounts receivable written off:
None
(4) Accounts receivable of top five ending balances grouped by debtors
Unit: yuan
Proportion to total ending
Ending balance of accounts Ending balance of provision
Name of unit balances of accounts
receivable for bad debts
receivable
No. 1 519,566,713.33 33.17% 16,106,568.11
No. 2 77,772,367.29 4.97% 2,477,780.82
No. 3 55,238,619.04 3.53% 1,712,397.19
No. 4 42,579,958.16 2.72% 1,319,978.70
No. 5 40,359,436.26 2.58% 1,251,142.52
Total 735,517,094.08 46.97%
(5) Accounts receivable derecognized due to transfer of financial assets
□ Applicable Not applicable
(6) Amount of assets and liabilities formed by transferring accounts receivable and continuing to be involved
□ Applicable Not applicable
Other description:
None
2. Other receivables
Unit: yuan
203
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Items Ending balance Beginning balance
Other receivables 254,051,041.69 141,619,648.22
Total 254,051,041.69 141,619,648.22
(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
(3) Other receivables
1) Classification of other receivables by nature of amount
Unit: yuan
Book balance at the beginning of the
Nature of payment Book balance at the end of the period
period
Employee loans 6,803,004.64 6,888,020.46
Margin, deposit 6,726,644.67 5,474,993.31
Internal related transactions 239,737,403.42 131,639,091.99
Other 3,444,215.71 7,693.46
Total 256,711,268.44 144,009,799.22
204
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2) Provision for bad debts
Unit: yuan
First stage Second stage Third stage
Provision for bad debts Expected credit loss for Expected credit loss for the Total
Expected credit loss
the entire duration (no entire duration (credit
in the next 12 months
credit impairment) impairment occurred)
Balance as of January 1,
2,390,151.00 2,390,151.00
2022
Balance as of January 1,
2022 in the current
period
Accrual in the current
270,075.75 270,075.75
period
Balance as of June 30,
2,660,226.75 2,660,226.75
2022
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable Not applicable
Disclosure by aging
Unit: yuan
Aging Ending balance
Within 1 year (including 1 year) 250,466,000.69
Subtotal within one year 250,466,000.69
1-2 years 2,309,843.41
2-3 years 1,197,176.00
Above 3 years 2,738,248.34
3-4 years 1,609,538.34
4-5 years 1,112,000.00
Above 5 years 16,710.00
Total 256,711,268.44
3) Bad debt provision withdrawn, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: yuan
Amount changed in the current period
Beginning
Category Recover or Ending balance
balance Provision Write-off Other
reversal
Provision for
5,250,956.42 238,528.94 5,489,485.36
bad debts
Total 5,250,956.42 238,528.94 5,489,485.36
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
205
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None
4) Other receivables actually written off in the 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 unit Nature of payment Ending balance Aging ending balances of provision for bad
other receivables debts
No. 1 Intercourse funds 205,115,065.28 Within 1 year 79.90% 0.00
No. 2 Intercourse funds 15,468,332.78 Within 1 year 6.03% 0.00
No. 3 Intercourse funds 8,423,619.34 Within 1 year 3.28% 0.00
No. 4 Intercourse funds 5,114,048.33 1-2 years 1.99% 0.00
No. 5 Intercourse funds 2,908,792.00 Within 1 year 1.13% 0.00
Total 237,029,857.73 92.33% 0.00
6) Receivables involving government subsidies
□ Applicable Not applicable
7) Other receivables derecognized due to transfer of financial assets
□ Applicable Not applicable
8) Amount of assets and liabilities formed by transferring other receivables and continuing to be involved
□ Applicable Not applicable
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
3,836,195,816.61 3,836,195,816.61 2,941,581,406.04 2,941,581,406.04
subsidiaries
Investment in
associated
enterprises 18,377,321.11 12,433,655.05 5,943,666.06 18,408,714.90 12,433,655.05 5,975,059.85
and joint
ventures
Total 3,854,573,137.72 12,433,655.05 3,842,139,482.67 2,959,990,120.94 12,433,655.05 2,947,556,465.89
206
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(1) Investment in subsidiaries
Unit: yuan
Changes in increase or decrease in the current Ending
Beginning period balance of
Ending balance
Investee balance (book Decrease Provision provision
Additional (book value)
value) in for Other for
investment impairment
investment impairment
Shenzhen Topband
Software
18,699,450.44 3,232,708.50 21,932,158.94
Technology Co.,
Ltd.
Shenzhen Topband
5,963,808.90 613,985,204.71 619,949,013.61
Battery Co., Ltd.
Shenzhen Topband
Automation
34,634,741.13 606,281.66 35,241,022.79
Technology Co.,
Ltd.
Chongqing
Topband Industrial 210,330,745.87 483,102.08 210,813,847.95
Co., Ltd.
Topband (Hong
364,511,500.00 63,418,000.00 427,929,500.00
Kong) Co., Ltd.
Huizhou Topband
Electrical
1,007,281,720.35 10,109,177.83 1,017,390,898.18
Technology Co.,
Ltd.
Ningbo Topband
Intelligent Control 519,868,835.07 150,318,633.70 670,187,468.77
Co., Ltd.
Shenzhen Allied
Control System 122,145,544.81 2,345,296.53 124,490,841.34
Co., Ltd.
Shenzhen
Meanstone
Intelligent 10,000,000.00 0.00 10,000,000.00
Technology Co.,
Ltd.
TOPBAND INDIA
PRIVATE 195,026,748.97 0.00 195,026,748.97
LIMITED
Shenzhen YAKO
Automation
350,014,659.96 0.00 350,014,659.96
Technology Co.,
Ltd.
Shenzhen Topband
Investment Co., 60,092,202.62 40,081,661.80 100,173,864.42
Ltd.
Shenzhen Topband
Supply Chain 5,000,000.00 0.00 5,000,000.00
Services Co., Ltd.
Shenzhen Senxuan
Technology Co., 8,011,447.92 34,343.76 8,045,791.68
Ltd.
Topband
30,000,000.00 0.00 30,000,000.00
(Qingdao)
207
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Intelligent Control
Co., Ltd.
Shenzhen Topband
10,000,000.00 10,000,000.00
Motor Co., Ltd.
Total 2,941,581,406.04 894,614,410.57 3,836,195,816.61
(2) Investment in associated enterprises and joint ventures
Unit: yuan
Changes in increase or decrease in the current period
Profits and Declaration
Beginning losses on Adjustment to of Ending Ending balance
Other Provision
Investment unit balance (book Additional Decrease in investment other distribution balance (book of provision for
changes for Other
value) investment investment recognized comprehensive for cash value) impairment
in equity impairment
under equity income dividends or
method profits
I. Joint venture
II. Associated enterprises
Shenzhen Daka
Optoelectronics 5,975,059.85 -31,393.79 5,943,666.06
Co., Ltd.
Shenzhen
Yuchengxin
Power 0.00 12,433,655.05
Technology Co.,
Ltd.
Subtotal 5,975,059.85 -31,393.79 5,943,666.06 12,433,655.05
Total 5,975,059.85 -31,393.79 5,943,666.06 12,433,655.05
(3) Other descriptions
4. Operating income and operating cost
Unit: yuan
Amount incurred in the current period Amount incurred in the previous period
Items
Income Cost Income Cost
Main business 2,387,700,802.78 2,029,249,076.26 2,108,115,155.95 1,747,449,569.91
Other business 72,146,674.17 64,311,335.67 53,820,075.36 47,592,448.41
Total 2,459,847,476.95 2,093,560,411.93 2,161,935,231.31 1,795,042,018.32
Information related to performance obligations:
Not applicable
Information related to the transaction price allocated to the remaining performance obligations:
208
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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:
None
5. Return on investment
Unit: yuan
Items Amount incurred in the current period Amount incurred in the previous period
Long-term equity investment income
-31,393.79 -495,808.80
accounted by the cost method
Investment revenue from disposal of
24,066,351.32
tradable financial assets
Subsidiary dividend income 14,053,405.97
Total -31,393.79 37,623,948.49
6. Others
None
XVIII. Supplementary Information
1. Schedule of current non-recurring profits and losses
Applicable □ Not applicable
Unit: yuan
Items Amount Description
Disposal of profits and losses of non-current assets -378,109.64
Government subsidies included in the current profits and losses (except those that are closely
related to the normal business of the Company, conform to national policies and regulations and 14,625,339.37
are continuously enjoyed in a fixed or quantitative manner according to certain standards)
Profits 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 tradable financial assets and
31,603,205.99
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 other than those mentioned above -1,217,111.70
Financing
Other items of profits and losses that meet the definition of non-recurring profits and losses 241,902.47
income
Minus: amount affected by income tax 2,794,910.05
Impact amount of minority shareholders' equity 228,101.16
Total 41,852,215.28 --
Details of other items of profits and losses that conform to the definition of non-recurring profits and losses:
209
Full Text of Semi-annual Report 2022 of Shenzhen Topband Co., Ltd.
□ Applicable Not applicable
None.
Explanation of defining the items of non-recurring profits and losses 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 items of profits and losses
□ Applicable Not applicable
2. Return on equity and earnings per share
Earnings per share
Weighted return
Profits of the reporting period Basic earnings per share Diluted earnings per share
on average equity
(yuan/share) (yuan/share)
Net income attributable to the ordinary
4.77% 0.20 0.20
shareholders of the Company
Net profit attributable to the ordinary shareholders
of the Company after deduction of non-recurring 3.96% 0.16 0.16
profits and losses
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profit and net assets between financial reports disclosed in accordance with
International Accounting Standards and those disclosed in accordance with PRC GAAP at the same time
□ Applicable Not applicable
(2) Difference between the net profit and net assets in the financial reports disclosed in accordance with both
foreign accounting standards and Chinese accounting standards at the same time
□ Applicable Not applicable
(3) Reasons for differences in accounting data under domestic and foreign accounting standards. If the data
audited by an overseas audit institution is adjusted for differences, the name of the overseas audit
institution shall be indicated
4. Others
210
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Section XI Other Reported Data
I. Other major social security issues
Whether there were major social security issues in the listed company and its subsidiaries
□ Yes □ No N/A
Existing problems and rectification
Whether administrative penalty was imposed during the reporting period
□ Yes □ No N/A
Punishment items, punishment measures and rectification
II. Registration form for reception and investigation, communication, interview and other
activities during the reporting period
Applicable □ Not applicable
Main contents
Type of Basic Information
Time of Location of Method of of interview
reception Reception object index for
reception reception reception and materials
object investigation
provided
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TF Securities, China Securities, Zhongtai
Securities, Guosen Securities, CITIC Securities,
CICC Securities, Huachuang Securities, Guotai
Junan Securities, Shenwan Hongyuan Securities,
Changjiang Securities, Guosheng Securities,
Southwest Securities, Sinolink Securities, Citi
Medium- and Small-cap Stock, Haitong Securities,
Great Wall Securities, Everbright Securities, Huatai
Securities, Minsheng Securities, Pacific Securities,
Dongxing Securities, Wanlian Securities and
Soochow Securities. TF Securities, Yinhua Fund
Management, China Universal Asset Management,
Shenzhen Qianhai Dengcheng Asset Management,
Foresight Fund, Genharmony Capital, Shenzhen
Zhicheng Haiwei Asset Management, Penghua
Learn about the
Fund, Rays Capital, Guotai Asset Management,
2022/4/20 Conference Telephone operation of the
Organizat Western Leadbank FMC, Vontobel Asset http://www.cninfo.c
2022/4/21 room of the communica Company; no
ions Management Asia Pacific Limited, Sinosafe Assets, om.cn
2022/4/22 Company tion information
First-Trust Fund Management, BOSC Asset, BOCI
provided.
Securities, SPDB-AXA Fund, Fosun Asset
Management, Neuberger Berman Fund, Jinfu Anda,
Ping An Fund, Shanghai Silver Leaf Investment,
Huatai Securities Proprietary Securities Investment,
Changjun Capital Investment, AEGON-
INDUSTRIAL Fund Management, ABC Wealth
Management, BlackRock Fund, Beijing Yihejiufu
Investment Management, Tangrong Capital,
Shanghai Yinsheng Asset Management, First-Trust
Fund Management, Rongtong Fund Management,
CCB Pension Asset Management, Purekind Fund
Management, Tianchong Asset Management,
Oriental Alpha Fund, Shanghai Tongben Investment
Management Center, Asset Management
Department of Essence Securities, Millennium
214
Full Text of Semi-annual Report 2022 of Shenzhen Topband Co., Ltd.
Capital, Shanghai Feima Investment and
Management, Infore Capital, Pacific Investment
Management, Asset Management Department of
GF Securities, Changjiang Securities. CICC
Securities, CCB Principal Asset Management.
CHAIRPERSON, SPEAKER, OP CAP, Learn about the
2022/4/25 Conference FULLGOAL, Great Wall Fund, Rongtong Fund operation of the
Field Organizat http://www.cninfo.c
2022/4/27 room of the Management, Chuangfu Business Investment Company; no
survey ions om.cn
2022/4/28 Company Management, Valuebed Capital, Sinolink information
Securities, CITIC Securities, NORDEA provided.
ABERDEEN, BARING, MANULIFE,
Learn about the
FULLGOAL, SUN BRIDGE CAPITAL, MIGHTY
Conference Telephone operation of the
Organizat DIVINE, PINPOINT, OASIS, CITI, BlackRock http://www.cninfo.c
2022/5/6 room of the communica Company; no
ions Asset Management, T. Rowe Price Group, Guosen om.cn
Company tion information
Securities, Mondrian Investment Partners Ltd,
provided.
CICC Securities.
CICC Asset Management, Greenwoods Asset Learn about the
2022/5/16
Conference Management, Teng Yue Partners Master Fund, operation of the
2022/5/17 Field Organizat http://www.cninfo.c
room of the CICC Securities, Perseverance Asset Management, Company; no
2022/5/18 survey ions om.cn
Company Yinhua Fund Management, TF Securities, GF information
2022/5/19
Securities. provided.
AEGON-INDUSTRIAL Fund Management, TF
Securities; Industrial Securities, HFT Investment
Management, CITIC Securities, CITIC Asset
Management; Shenwan Hongyuan Securities, Ping
An Fund, Dacheng Fund, Baoying Fund, TF
Securities, E Fund Management; Penghua Fund;
Bank Of Communications Schroder Fund
2022/5/23 Learn about the
Management; Citibank, TAIKANG, SPRING
2022/5/24 Conference operation of the
Field Organizat CAPITAL, OP CAPITAL, AMUNDI, SAMSUNG, http://www.cninfo.c
2022/5/25 room of the Company; no
survey ions OASIS, NIGHTY ONE, PRINCIPAL, om.cn
2022/5/26 Company information
ABERDEEN, LAZARD, NEW SILK ROAD;May
2022/5/27 provided.
26: Lombarda China Fund Management, TF
Securities; Lion Fund Management; Hengyue Asset
Management, Lingzhan Capital, Shenzhen
ZHAOTU Investment and Management
Corporation, Guangdong Juzhou Investment,
Harvest Fund, TF Securities; China Universal Asset
Management; Guotai Asset Management.
TF Securities, Hua An Fund Management; Huatai Learn about the
2022/5/30 Conference Baoxing Fund Management; Penghua Fund; operation of the
Field Organizat http://www.cninfo.c
2022/5/31 room of the Taikang Asset; Perseverance Asset Management; Company; no
survey ions om.cn
2022/6/1 Company First State Cinda Fund Management, Baoying information
Fund. provided.
215
Full Text of Semi-annual Report 2022 of Shenzhen Topband Co., Ltd.
Learn about the
Conference operation of the
2022/6/14 Field Organizat http://www.cninfo.c
room of the BlackRock Fund, Fidelity Investments Company; no
2022/6/16 survey ions om.cn
Company information
provided.
III. Capital transactions between the listed company and its controlling shareholder and
related parties
□ Applicable Not applicable
216
