Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
Shenzhen Topband Co., Ltd.
Annual Report 2022
Topband Investor Relations Applet
March 2023
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Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
Annual Report 2022
Section I Important Notes, Contents and Definitions
The Board of Directors, the Board of Supervisors and directors, supervisors and senior
executives of the Company hereby assure that the content set out in the Annual Report is true,
accurate and complete. It shall be free from false records, misleading statements or major omissions,
and shall bear individual and joint legal liabilities therein.
Wu Yongqiang, the principal of the Company, Xiangwei, accounting head, and Luo Muchen,
accounting department head (the person in charge of accounting department) hereby guarantee the
truth, accuracy and completeness of the financial report in this annual report.
All directors have attended the Board Meeting at which the Report was scrutinized.
Forward-looking statements, such as future plans covered in the Report are not regarded as the
actual commitment to investors who should be alert to investment risks. A detailed explanation of
the risks faced by the Company is presented in Section III of the Report "Management discussion
and analysis". Investors are kindly requested to note the relevant content.
The profit distribution plan of common stocks deliberated and passed by the Board of Directors
of the Company: Based on the total share capital of the Company of 1,264,354,172 shares
(excluding 5,181,200 repurchased treasury shares), the Company distributed cash dividend RMB
0.6 (tax inclusive) and 0 bonus share (tax inclusive) for every 10 shares to all shareholders, without
converting the accumulation fund to increase the share capital. The accumulated retained earnings
remaining after the implementation of the profit distribution plan will be carried forward to
subsequent years. If the total share capital of the Company changes before the implementation of
the profit distribution plan due to reasons such as share repurchase and stock option exercise, the
total distribution will be adjusted accordingly based on the principle of keeping the distribution ratio
per share unchanged. Investors are advised to pay attention to the risk of adjusting the total
distribution due to changes in total share capital.
This report has been prepared in Chinese and translated into English. Should there be any
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discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
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General Manager's speech
Dear shareholders, partners, and all friends concern about Topband:
Thank you for your attention and support to Topband, and I am honored to share our 2022
Annual Report with you here. In the past year, we faced many challenges, but with the joint efforts
of all employees, the Company still achieved remarkable results. Our sales revenue reached RMB
8.875 billion, achieving double-digit growth and completing our annual business target.
Topband has been adhering to the "long-term philosophy"; business is in the long run, not in a
moment. Our mission is to advance human society by making the world a more innovative and
lower-carbon place. Over the past 26 years, we have been committed to providing solutions to our
customers using the "four electrics and one network" intelligent technology to create value around
"intelligent" and "low carbon."
In 2022, I will focus on sharing five key advances.
First, a healthier business structure. We have formed a home appliance segment with
household as the application scenario, a tool segment with labor as the scenario, and a new energy
segment with green and low-carbon as the scenario. In 2022, the business of the new energy
segment was increasing, forming a good situation of "three legs and driving side by side."
Second, a richer product portfolio. Through continuous technology and product innovation,
we have formed a matrix of hundreds of products covering the four core technologies of electric
control, battery, motor, and power supply. We offer a range of intelligent products and solutions to
help our customers and partners improve their competitiveness and achieve market success.
Third, the level of intelligent manufacturing significantly improved. Under the wave of
manufacturing development of "digitalization, networking, and intelligence," we have created a
unique intelligent manufacturing system based on "lean," "automation," and "digitalization" to build
an intelligent factory with the "shortest delivery time, stable quality, best cost, and flexible
delivery." In 2022, the Company achieved a significant reduction in the overall manufacturing rate,
a reduction in the manufacturing side, and a substantial increase in intelligent manufacturing.
Fourth, the international layout continues to accelerate. In 2022, Vietnam and India's bases
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continued to expand production, and Mexico and Romania bases were also completed and put into
operation. International operation departments in Europe, America, South Africa, and Japan were
established one after another, which accelerated the development of the Company's global layout.
Fifth, continued improvement in organizational capacity. We further strengthen the
business unit (BU) organization, delegate more resources and authority to the BU, support the BU to
serve our customers better, and pull the middle and back office departments to work together
through the process. In 2022, many new BU businesses increased, and organizational reforms'
results gradually became apparent.
Looking ahead to 2023, although there are uncertainties in the global economic situation, we
believe that the development trend of "intelligent, low-carbon, and internationalization" will
continue in the long term, and the Company still has excellent development opportunities. We will
adhere to the value concept of "Agile-Innovation-Partnership," gain deep insight into customer
needs, drive the rapid growth of new businesses and new products with innovation, and grow with
our partners.
In 2023, I am placing particular emphasis on three strategic priorities.
First, accelerate the development of new businesses and innovative products. We have
defined our future strategic emerging businesses and key innovative products through strategic
planning. In 2023, we will further launch a series of particular actions around key new businesses
and innovative products to focus on accelerating development.
Second, accelerate international operations. The need for internationalization continues to
grow as the demand for localized delivery from overseas customers increases and more Chinese
companies go abroad. The Company will continue to replicate its successful experience in overseas
operations, accelerate the layout of its operations in international markets and enhance its
localization capabilities in markets, supply chains, and services.
Third, reduce costs and increase efficiency to improve operating efficiency. Cost control is
a long-term task for enterprises and a core task in the current economic environment. We will build
cost advantages by strengthening design, material, and manufacturing cost reductions. At the same
time, we will further optimize our organizational management and continue to carry out lean,
automated, and digital improvements to continuously improve our operational efficiency through
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digital operations in the supply chain, manufacturing, and operations.
Looking ahead, we will implement specific work following the Company's strategic planning
requirements and continue to work closely with our partners. Thanks to the trust and support of all
shareholders and partners, we will continue to provide excellent products and services to our
customers and build a more intelligent, low-carbon, and better future world.
General Manager, Shenzhen Topband Co., Ltd.
March 31, 2023
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Contents
Section I Important Notes, Contents and Definitions ...................................................................... 2
Section II Company profile and primary financial indicators ...................................................... 10
Section III Management Discussion and Analysis .......................................................................... 15
Section IV Corporate Governance ................................................................................................... 67
Section V Environmental and Social Responsibility .................................................................... 102
Section VI Important Matters ........................................................................................................ 103
Section VII Share Change and Shareholders ................................................................................ 113
Section VIII Information on Preferred Shares ............................................................................. 123
Section IX Relevant Information of Bonds ................................................................................... 124
Section X Financial Report ............................................................................................................. 125
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Directory of documents for future reference
I. Financial statements containing the signatures and seals of the leader of the Company, the
accounting principal and the accounting department head.
II. The original audit report bearing the seal of the accounting firm and the signatures and seals of
the certified public accountants.
III. The originals of all the company documents publicly disclosed in newspapers designated by the
CSRC during the reporting period and the original manuscripts of announcements.
IV. The original of the Annual Report 2022 bearing the signature of the chairman.
V. All the above documents are ready and complete, and are available for reference at the office of
the Board of Directors of the Company.
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Interpretation
Terms Refer to Contents
Company, the Company, Topband Refer to Shenzhen Topband Co., Ltd.
RMB, RMB ten thousand and RMB
Refer to RMB, RMB ten thousand and RMB 100 million
100 million
CSRC Refer to China Securities Regulatory Commission
Exchange Refer to Shenzhen Stock Exchange
Reporting period Refer to From January 1, 2022 to December 31, 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.
China Tower Refer to China Tower Corporation Limited
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 Mexico Refer to Topband Mexico Company Limited
Topband Romania Refer to Topband Smart Europe Company Limited
Topband Battery Refer to Shenzhen Topband Battery Co., Ltd.
Ninghui Lithium Battery Refer to Taixing Ninghui Lithium Battery Co., Ltd.
IOT Refer to Internet of Things
T-SMART Refer to Topband one-stop smart home solutions
AI Refer to Artificial Intelligence
BLDC Motor Refer to Brushless DC Motor
BG and BU Refer to Business Group and Business Unit
IPD Refer to Integrated Product Development
ISC Refer to Integrated Supply Chain
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Section II Company profile and primary financial indicators
I. Company information
Stock abbreviation Topband Stock code 002139
Listed stock exchange Shenzhen Stock Exchange
Chinese name of the Company Shenzhen Topband Co., Ltd.
Chinese abbreviation of the
Topband
Company name
Name of the Company in foreign
Shenzhen Topband Co., Ltd
language (if any)
Name of the Company in foreign
Topband
language (if any)
Legal representative of the
Wu Yongqiang
Company
F1, Topband Industrial Park Phase II, Keji Second Road, Tangtou Community, Shiyan Sub-
Registered address
district, Bao'an District, Shenzhen
Postal code of registered address 518108
The registered address of the Company has been changed from "Room 413, Area B, Tsinghua
Historical changes of registered University Research Institute, High-tech Industrial Park, Yuehai Street, Nanshan District,
address of the Company Shenzhen" to "F1, Topband Industrial Park Phase II, Keji Second Road, Tangtou Community,
Shiyan Sub-district, Bao'an District, Shenzhen".
Office address Topband Industrial Park, Keji Second Road, Shiyan Sub-district, Bao'an District, Shenzhen
Postal code of office address 518108
Company website http://www.topband.com.cn
Email wenzh@topband.com.cn
II. Contact person and contact information
Secretary of the Board of Directors Representative of securities affairs
Name Wen Zhaohui Zhang Yuhua
Topband Industrial Park, Keji Second Road, Shiyan Topband Industrial Park, Keji Second Road,
Address
Sub-district, Bao'an District, Shenzhen Shiyan Sub-district, Bao'an District, Shenzhen
Tel 0755-26957035 0755-26957035
Fax 0755-26957440 0755-26957440
Email wenzh@topband.com.cn zhangyuhua@topband.com.cn
III. Information disclosure and storage place
Website of the stock exchange for disclosure of the
http://www.cninfo.com.cn
Company's annual report
Name and website of the media for disclosure of the Securities Times and CNINFO (http://www.cninfo.com.cn)
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Company's annual report
Location where the Company's annual report is available Office of the Board of Directors of the Company
IV. Changes in registration
Unified social credit code 91440300192413773Q
Changes in the main business of the Company
No change
since its listing (if any)
Previous changes in controlling shareholders (if
No change
any)
V. Other relevant information
Accounting firm engaged by the Company
Name of accounting firm BAKER TILLY International Accounting Firm (Special General Partnership)
Office address of accounting firm Areas A-1 and A-5, #68, No. 19, Chegongzhuang West Road, Haidian District, Beijing
Name of undersigned accountant Chen Zhigang, Zhao Yang
Sponsor engaged by the Company to perform continuous supervision duties during the reporting period
Applicable □ Not applicable
Name of
Continuous
Name of Sponsor Office address of Sponsor Sponsor's
supervision period
representative
Room 2203, North Tower, Shanghai Securities Xu Chao and Zhu
China Securities Co., Ltd. 2021/6/3-2022/12/31
Building, No. 528 Pudong South Road, Shanghai Mingqiang
The financial adviser employed by the Company to perform continuous supervision duties in the reporting period
□ Applicable Not applicable
VI. Main accounting data and financial indicators
Whether the Company is required to retroactively adjust or restate the accounting data of previous years
□ Yes No
Increase or decrease
2022 2021 in the current year 2020
over the last year
Operating income (RMB) 8,875,099,137.06 7,767,034,835.03 14.27% 5,560,182,998.21
Net profit attributable to shareholders of
582,655,258.38 564,964,282.18 3.13% 532,161,123.64
listed companies (RMB)
Net profit attributable to shareholders of
listed companies after deducting non- 483,703,060.80 432,038,218.88 11.96% 381,388,244.05
recurring profit and loss (RMB)
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Net cash flow from operating activities
491,055,076.33 -224,562,545.86 318.67% 647,900,708.38
(RMB)
Basic earnings per share (RMB/share) 0.46 0.47 -2.13% 0.51
Diluted earnings per share (RMB/share) 0.46 0.47 -2.13% 0.51
Weighted return on average equity 10.85% 13.11% -2.26% 19.21%
Increase or decrease at
the end of the current
End of 2022 End of 2021 year compared with End of 2020
the end of the
previous year
Total assets (RMB) 10,364,556,848.34 9,606,992,402.39 7.89% 6,774,684,691.87
Net assets attributable to shareholders
5,728,523,458.33 5,028,315,406.63 13.93% 3,457,256,863.83
of listed companies (RMB)
Note: 1. In 2022, the total amount of share-based payment expenses confirmed due to equity incentives was
approximately RMB 123.862 million, a net increase of RMB 96.1039 million compared to RMB 27.7581 million in 2021
(taking into account the impact of related income tax expenses).
2. After excluding the impact of the aforementioned share-based payment expenses, the net profit attributable to
shareholders of the listed companies during the reporting period was RMB 706.5173 million, an increase of 19.20% compared
to the same period last year; the net profit attributable to shareholders of the listed companies after deduction of non-
recurring profits and losses was RMB 607.5651 million, an increase of 32.14% compared to the same period last year.
Whichever was the lower of the Company's net profit before or after deduction of non-recurring profit and loss for
the last three fiscal years was negative, and the audit report for the latest year showed that there was uncertainty
about the Company's ability to continue as a going concern.
□ Yes No
The lower of net profit before and after deduction of non-recurring profits and losses was negative
□ Yes No
VII. Differences in accounting data under domestic and foreign accounting standards
1. Differences in net profit and net assets between financial reports disclosed in accordance with
International Accounting Standards and those disclosed in accordance with PRC GAAP 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
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period.
(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 Overseas
Accounting Standards and those disclosed in accordance with PRC GAAP during the reporting period.
VIII. Main financial indicators by quarters
Unit: RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 1,867,713,022.70 2,360,290,114.87 2,307,433,143.44 2,339,662,856.05
Net profit attributable to shareholders
94,076,282.26 152,431,989.12 212,244,704.87 123,902,282.13
of listed companies
Net profit attributable to shareholders
of listed companies after deducting 57,646,415.49 147,009,640.61 163,661,033.59 115,385,971.11
non-recurring profit and loss
Net cash flow from operating activities 63,137,832.29 11,748,423.10 560,552,037.39 -144,383,216.45
Whether there are any significant differences between the above financial indicators or the sum thereof and
relevant financial indicators given in the quarterly and semi-annual reports issued by the Company
□ Yes No
IX. Items and amount of non-recurring profit and loss
Applicable □ Not applicable
Unit: RMB
Amount in Amount in Amount in
Items Description
2022 2021 2020
Profits and losses on disposal of non-current assets (including the
-3,145,453.49 -789,236.29 -2,162,674.03
write-off portion of the provision for asset impairment)
Government subsidies included in current profits and losses
(except those that are closely related to the normal business of the
Company, conform to national policies and regulations and are 33,217,045.91 16,456,682.22 27,326,933.85
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 90,812,862.06 133,466,036.23 147,775,030.77
and liabilities and available-for-sale financial assets, except for
the effective hedging business related to the normal business of
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the Company
Reversal of the provision for impairment in receivables for which
120,596.48
impairment tests are carried out separately
Other non-operating income and expenses other than those
373,250.06 -1,787,714.37 43,836.85
mentioned above
Other items of profits and losses that meet the definition of non-
270,112.67 9,914,763.48 5,602,702.63
recurring profits and losses
Minus: amount affected by income tax 22,265,407.68 23,726,354.32 27,106,631.22
Amount affected by minority shareholders' equity (after tax) 430,808.43 608,113.65 706,319.26
Total 98,952,197.58 132,926,063.30 150,772,879.59 --
Details of other items of profits and losses that conformto the definition of non-recurring profits and losses:
□ Applicable Not applicable
None.
Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profits and Losses
as recurring profit and loss items
□ Applicable Not applicable
There is no such situation of defining the non-recurring profit and loss items listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public - Non-
recurring Profits and Losses as recurring profit and loss items in the Company
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Section III Management Discussion and Analysis
I. Industry in which the Company operates during the reporting period
1. Basic situation of the industry
The intelligent controller is a class of advanced automatic control technology and computer technology that
integrates sensing, microelectronics, and power electronics technology and many other technical disciplines and
forms high-tech products. It acts like the human nervous system, playing the role of "nerve center" and "brain" to
achieve precise control of the physical world through collecting, processing, and analyzing various information.
The application field of the intelligent controller is vast, mainly including home appliances, intelligent homes,
intelligent buildings, power tools, industrial and automation, automotive electronics, new energy, and medical
equipment. With the continuous emergence of new technologies, intelligent control technology is also constantly
developing and upgrading, and the degree of intelligence is getting higher and higher. Especially with 5G, the
Internet of Things, artificial intelligence, cloud computing, and other new technologies continue to integrate the
development of various products to accelerate the iteration of the intelligent controller industry as a broader
development prospect will emerge more new products, new industries, and new models.
2. Industry status
The Company is a leading global solution provider in intelligent control, always upholds the value of "Agile
Innovation Partner," and drives the Company's continuous development through technological innovation. The
Company has formed a comprehensive technology system of "four electrics and one network" (electric control,
motor, battery, power supply, and IOT platform), mainly for five industries: home appliances, tools, new energy,
industry, and intelligent solutions, providing customized intelligent control solutions for downstream customers.
With the three unique capabilities of "platform-based technology innovation capability, partner-based
customer service capability, and systematic rapid response capability" as the core, the Company has been forging
ahead. It has established close partnerships with many headline customers in the industry. The Company is now a
leader in intelligent control solutions for the home appliance and tool industries and an innovation leader in the
new energy and industrial sectors.
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II. Main business engaged by the Company during the reporting period
The Company's primary business is the research and development, production, and sales of intelligent control
system solutions, i.e., the "four electrics and one network" technology of electric control, motor, battery, power
supply, and Internet of Things platform as the core, for home appliances, tools, new energy, industrial, intelligent
solutions, and other five industries to provide a variety of customized solutions. The Company is a global leader in
intelligent control solutions for the home appliance and tool industries and an innovation leader in the new energy
and industrial sectors.
Intelligent Control Home Intelligent
Business Applications in Tools New Energy Industry
Appliances Solutions
"Five Industries"
"Four Electrics and One
Electric Control Electric Motor Battery Power Supply
Network"
Technology Technology technology Technology
Layout of Core
Technology
IoT Platform
1. The Company's core technology: "four electrics and one network," electric control, motor, battery,
power technology, and Internet of things platform.
1.1 Electrical control technology. The electrical control technology is the core of a microelectronic
computer to achieve intelligent control technology, involving sensing technology, power electronics, signal
processing technology, communication technology, interactive technology, power and energy conversion
technology, electromagnetic compatibility, and many other technical fields. The Company focuses on developing
key technologies such as automatic control technology, human-machine interaction technology, embedded
computing technology, machine vision technology, robotics technology, intelligent sensor technology, and motion
control technology.
The Company has formed hundreds of electronic control technology platforms that can meet the needs of
products in four major industries: home appliances, tools, new energy, and industry. The electronic control
technology is widely used in products such as controllers, electromechanical integration, power supplies, and
intelligent batteries.
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1.2 Electronic motor technology. Motor technology converts electrical energy into kinetic energy and is one
of the key technologies necessary for all kinds of intelligent products and modern industries. Focusing on
continuous innovation of high efficiency, low noise, high precision, and high stability of motors, the Company has
established a complete technical capability from motor design and simulation, testing, and verification to scale
manufacturing, forming dozens of advanced motor product platforms such as brushless DC motors (BLDC),
stepper motors and servo motors.
The Company's motor technology has been successfully applied to many fields, including power tools,
automation equipment, intelligent appliances, new energy vehicles, robots, and other fields. Among them, the
Company's power tools and motion control products are in the leading position in China and have been widely
recognized in the market.
1.3 Battery technology. Battery technology is the technology where energy is stored and managed. Its core
technologies include battery material application, cell design and manufacturing, and battery system integration.
Battery material application technologies include positive and negative electrode materials, electrolytes,
diaphragms, and other related application technologies; cell design and manufacturing include electrochemical
architecture design and manufacturing process technologies such as coating, laminating/winding, and forming;
battery system integration consists of a series of technologies such as battery assembly, thermal management,
collision and leakage safety, accurate measurement of voltage/current/temperature signals, battery state estimation
and cell equalization. The technology spans multiple fields of material science, electrochemistry, electronics, and
control engineering. After years of accumulation, the Company has formed a complete design, development
customization, and production technology capability from cell technology (CELL) and battery management
technology (BMS) to battery pack (PACK) system.
1.4 Power supply technology. Power technology is an electrical energy conversion technology that safely,
efficiently, and intelligently transforms the front-end input into the required output for the load. The Company has
various analog power supplies, switching power supplies, and digital power supply technology platforms with
different power levels. It can provide charging, inverter, and various customized power supply solutions.
1.5 Internet of Things (IoT) platform. The IoT platform is a collection of the sensing layer, connectivity
layer, and application layer technologies, mainly including connectivity management, device management, and
application. The Company has formed a complete technical capability from IoT module and intelligent terminal to
APP and PaaS IoT cloud platform. It has developed solutions for more than ten business scenarios.
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2. The Company's main products: for "home appliances, tools, new energy, industrial, intelligent
solutions," five significant industries to provide customized system solutions.
The Company's products are mainly classified into four categories: controller, motor, power supply, and
battery. The Company's product offering model is based on customers' needs in five major downstream industries:
home appliances, tools, new energy, industry, and intelligent solutions, and provides customized products and
comprehensive solutions by using "four electrics and one network" core technologies.
2.1 Home appliance solutions
The Company provides a range of customized products and services, from product concept, design, and
development to manufacturing delivery for branded customers in the home appliance industry. The products are
mainly involved in controller and motor categories, including home appliance master control, power control,
motor drive and control, display control, etc. The products are mainly used in various fields, such as HVAC,
kitchen appliances, cleaning appliances, health care, lighting, and intelligent home.
2.2 Tool solutions
The tool industry mainly includes power, garden, and other professional tools. The Company provides
customized products and services, from concept, design, and development to manufacturing delivery for branded
customers in the tool industry. The Company's products mainly involve four components: controller, motor,
battery and power supply, and some exclusive intelligent products.
2.3 New energy solutions
The new energy business mainly focuses on two major application areas: small and medium-sized energy
storage and new energy vehicles, with products in four categories: batteries, power supplies, controllers, and
motors. For the energy storage industry, the Company provides component products, including cells, BMS, PCS,
EMS, etc., and complete products, such as household energy storage, industrial and commercial energy storage,
communication power backup, portable energy storage, etc. For the new energy vehicle industry, the Company
mainly provides intelligent controllers and charging equipment for customers in the fields of new energy vehicles,
other special vehicles, and E-bike.
2.4 Industrial solutions
In the industrial control industry, the main business is developing, producing, and selling specialized
industrial intelligent control products, mainly involving stepper, servo drive, and motion control products. The
Company mainly focuses on downstream automation equipment customers, providing them with controllers,
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drivers, motors, etc. Downstream applications involve 3C electronics, robotics, medical equipment, semiconductor
equipment, photovoltaic, lithium battery industry, etc. We are committed to helping automation equipment
manufacturers improve equipment design performance, reduce equipment manufacturing costs, and accelerate the
development of new equipment. We are committed to helping automation equipment manufacturers improve
design performance, reduce equipment manufacturing costs, and speed up new equipment development.
2.5 Intelligent solutions
An intelligent solution is based on the Company's AIoT (Artificial Intelligence Internet of Things) technology
platform and intelligent product innovation capabilities as the core for "clothing, food, housing and transportation"
and "industry, catering, hotels, parks" and other segmentation scenarios, to provide "innovative products + AIoT
platform + customized services" comprehensive intelligent solutions.
III. Analysis of core competitiveness
1. Platform-based technology innovation capability.
The Company takes technology as the gene of enterprise development and considers innovation as the core
competence of the Company. The Company has the industry-leading platform technology innovation capability,
forming a complete technology platform covering various core technology areas of intelligent control integration
solutions.
The Company has the ability of deep understanding of various control mechanisms, independent
implementation, and continuous innovation, covering the core technologies of intelligent control algorithm, motor
control, lithium battery, sodium battery, sensing, human-machine interaction, image recognition, digital power
supply, embedded software, temperature control, heating, and cooling, etc.
In addition, the Company has a rich product line that forms many product platforms. Each core product
platform has been verified in mass production to ensure quality and reliability. We can quickly provide customers
with high-quality, differentiated custom solutions to meet their needs. In addition, the Company has the industry's
unique "controller + motor + battery + power supply" total solution capability, with the ability to continuously
develop innovative solutions in new categories, which can help customers innovate in the competition to win.
In addition, the Company has the industry's unique "controller + motor + battery + power" total solution
capability, with the ability to continuously develop innovative new category solutions, which can help customers
in the competitive innovation to win.
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2. Partnership customer service capability.
The Company insists on long-term and takes value co-creation and value win-win as the development
concept to develop a long-term partnership with customers. Supported by platform-based technology innovation
capability, the Company continues to gain insight into customer needs, creates in-depth co-creations with
customers, establishes organizational customer relationships, and builds partner-based customer service
capabilities.
Through a multi-regional layout, we have established international production bases mainly in Pearl River
Delta, Yangtze River Delta, Southeast Asia, North America, and Europe while building an international operation
center to enhance our service capability in terms of management capability and resource allocation, and setting up
several overseas offices to work closely with our customers.
3. Systematic rapid response capability.
As intelligent technology evolves and uncertainty increases, the pace of global innovation iteration is
accelerating, and companies increasingly need to be more agile in their operations to serve their customers. Based
on a deep understanding of the intelligent control business, the Company has created a strong platform system
from the implementation of IPD ideas in the R&D and design process, the core customer ISC changes in the
supply chain system, the laboratory and quality assurance system, and the intelligent manufacturing platform
system to build a customer-centric process-oriented organization, internalizing the Company's superior capabilities
into agile operational capabilities, and the agile system will further strengthen the Company's advantages, and the
two form a mutually reinforcing and virtuous development, thus achieving sustainable, high-quality growth.
IV. Analysis of main business
1. Overview
In 2022, the macro environment at home and abroad was complex and changing, which is a very challenging
year for business development. In the face of difficulties, the Company focused on intelligent control and new
energy, insisting on high investment to drive high-level business development. The Company's intelligent
controller and new energy business breakthrough against the trend, achieving double growth in revenue and profit.
During the reporting period, the Company steadily built up its core competitiveness through reliable quality,
stable delivery, high investment in R&D, and multi-regional layout, quickly responding to and serving customers.
The management led all employees to continuously thicken the endogenous capacity of the Company in operation
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and management, lean manufacturing, and organizational change. The home appliance and tool base continued to
grow steadily, and the new energy business achieved high growth. In 2022, with the joint efforts of all employees,
the Company achieved operating revenue of RMB 8.875 billion, an increase of 14.27% year-on-year, net profit
attributable to shareholders of the listed Company of RMB 583 million, an increase of 3.13% year-on-year, and
net profit attributable to shareholders of the listed Company of RMB 484 million after deductions, an increase of
11.96% year-on-year. The total share-based payment expense recognized in 2022 due to the equity incentive is
RMB 124 million, compared with RMB 28 million year-on-year in 2021, a net increase of about 96 million (after
taking into account the impact of related income tax expense), excluding the effect of the above share-based
payment expense, the net profit attributable to shareholders of the listed Company for the reporting period is RMB
707 million, up 19.20% compared with the same period last year; the net profit attributable to shareholders of the
listed Company is RMB 608 million, up 32.14% compared with the same period the previous year.
Annual operating results and core operating metrics for 2022 are as follows:
(I) Actively respond to the challenges and revenue growth against the trend.
1. In line with the trend of intelligent + low-carbon, the Company's business continues to grow
Under the opportunities of intelligence, low carbonization, and economic development to multi-regional
development, the industry shows the trend of concentration to the head, the Company through the market insight,
advanced international industrial layout, the ability to obtain orders and business resilience increased year by year.
The Company actively explored structured opportunities in various regions and industries during the
reporting period. It achieved good operating results through key efforts such as head customer development,
international operations, product innovation, digital intelligence, and new business talent development. The
Company's 2021 "supply guarantee" strategy has laid a solid foundation for sustainable development. The number
of head customers and revenue continued to double growth during the reporting period, with head customers
accounting for 84% of the Company's total revenue, contributing more than 90% of the incremental revenue; the
Company attaches great importance to the development of new business, increasing investment in cutting-edge
technology and strengthening industry insight capabilities, providing new momentum for sustainable development.
2. Stable base of scale growth, healthier business structure, richer product portfolio, and competitive
resilience continues to be highlighted.
Topband has been adhering to the "long-term philosophy"; business is in the long run, not in a moment. Our
mission is to advance human society by making the world a more innovative and lower-carbon place. Over the
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past 26 years, we have been committed to providing solutions to our customers using the "four electrics and one
network" intelligent technology to create value around "intelligent" and "low carbon." We have formed a home
appliance segment with household as the application scenario, a tool segment with labor as the scenario, and a new
energy segment with green and low-carbon as the scenario. Through continuous technology and product
innovation, we have formed a matrix of hundreds of products covering the four core technologies of electric
control, battery, motor, and power supply. Through continuous technology and product innovation, we have
formed a matrix of hundreds of products covering the four core technologies of electronic control, battery, motor,
and power supply.
In 2022, in the face of the complex and volatile business environment such as structural price increases of
raw materials, declining demand, and exchange rate fluctuations, the home appliances and tools segment, as the
Company's base, achieved modest growth and still had advantages and room for growth despite the high base in
2021.As the third growth curve of the Company, the new energy segment has seen rapid business growth and has
now formed a good situation of "three legs and driving side by side."
3. Healthy development of each business segment, each with its advantages.
(1) Tooling segment: sales revenue of RMB 3.24 billion in 2022, up 8.20% year-on-year. Better than the
industry's overall growth rate, the market share is stable and increasing yearly. The Company has a relatively rich
product line in this segment. It can provide downstream customers with one-stop solutions, including controllers,
motors, BMS, battery packs, and complete machines, with non-controller products such as motors, tool battery
packs, and complete machines accounting for 33% of revenue in 2022.
The growth rate slowed in the reporting period due to the economic boom in Europe and the United States. In
the medium and long term, the application scenario of the tool is increasing. The market penetration rate outside
Europe and the United States also has more room for improvement, and the industry will not change the trend of
sustained growth due to short-term factors. The Company's tool business focuses on power tools and garden tools.
The global power tool market size is steadily increasing, and the downstream concentration is high. The top ten
global OEM customers occupy a significant market share, the terminal market in Europe and the United States
accounts for a higher market share, and professional grade (e.g., high technical content, high precision) and
industrial grade (e.g., high power, high speed) occupy the significant share of the tool market. The Company serves
head customers in the tools segment, mainly providing professional-grade and industrial-grade products and
solutions. In the future, with the increase in the rate of lithium-ionization and cordlessness of tools and the
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development of products to high-voltage, high-power, portable and intelligent trends, the Company will play the
advantages of technology and product portfolio, multi-regional production and supply to achieve the scale of
product platforms and volume growth of head customers, and the Company's market share in this segment will
further increase.
(2) Home appliance segment: sales revenue of RMB 3.092 billion in 2022, up 4.48% year-on-year. The
application of the home appliance industry presents a discrete, comprehensive concentration that is not high. The
Company plays a continuous accumulation of technical advantages, in some segments occupying a high market
share and showing rapid growth trend. During the reporting period, the development of large customers is
progressing well, and there are new customer breakthroughs. The number and volume of customers increased;
innovative products continue to emerge. The application of inverter technology is representative of the rapid growth
of air conditioning, refrigerator applications, kitchen appliances, heat pumps, cleaning, service robots, and others
rapid growth. The application of scenarios extended to the higher technical barriers to commercial appliances and
higher boom market, the development of the home appliance segment to open up further; small home appliances,
some categories by consumer demand, some decline, is expected to rebound in 2023 gradually. In the future, the
Company will focus on advantageous categories to achieve high-quality development in promising areas and
outpace the growth rate of the industry
(3) New energy segment: rapid growth, building the Company's third growth curve. The new energy
business has maintained high growth in recent years, achieving revenue of RMB 2.036 billion in 2022, up 63.98%
year-on-year, higher than the Company's overall growth rate. With the core technology of "one cell and 3S" (cell,
BMS, PCS, EMS), the Company is currently focusing on small and medium-sized energy storage and new energy
vehicle applications. In 2022, in the field of small and medium-sized energy storage to achieve revenue of RMB
1.566 billion, accounting for about 77% of the new energy business, for household energy storage, portable energy
storage, industrial and commercial energy storage to provide batteries, PCS, BMS and other products or overall
solutions; in the field of new energy vehicles to achieve revenue of RMB 470 million, accounting for about 23% of
the new energy business, around the new energy vehicle charging equipment, two or three wheelers, E-bike and
other scenarios to provide charging modules, BMS and other control products.
The future application of new energy will revolve around intelligence. The Company has formed the
advantages of four categories of core technologies and hundreds of product matrices of electronic control, battery,
motor, and power supply, which will quickly realize technology integration and provide customized and
differentiated solutions in the new energy segment with green and low-carbon scenarios. The Company has many
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new energy application product lines and diversified product forms. We have cells, battery packs, and PACKs in
battery form, as well as PCS (inverter), BMS (battery management system), EMS, and other products in control
form, and complete system solution capability, with a broader business inclusion and sustainable growth potential.
The historical opportunity of decarbonization overlaid with the global irreversible energy transition. The new
energy business is expected to continue its high growth rate in the next few years.
(4) Industrial segment: achieve sales revenue of RMB 248 million in 2022, down 15.86% year-on-year.
The Company mainly provides controllers, drivers, and motors for downstream automation equipment customers,
widely used in 3C electronics, robotics, medical equipment, photovoltaic equipment, semiconductor equipment,
photovoltaic, lithium battery, packaging machinery, etc. In 2022, the boom of traditional industries will fall back,
and equipment investment will decrease, impacting the demand for industrial automation. By focusing on key
sectors and customers, the Company will make breakthroughs in the photovoltaic and lithium industries. We are
committed to helping automation equipment manufacturers improve equipment design performance, reduce
equipment manufacturing costs, and accelerate new equipment development. We are expected to become the leader
in efficient, easy-to-use servo and stepper products. The segment benefits from domestic substitution and intelligent
upgrading of factories and will usher in a new boom cycle as the economy and demand gradually recover.
(5) Intelligent solutions: sales revenue of RMB 189 million in 2022, down 14.70% year-on-year. The
intelligent solution is based on the Company's AIoT (Artificial Intelligence Internet of Things) technology
platform and intellectual product innovation capabilities as the core for "medical, food, housing and
transportation" and "industry, catering, hotels, parks" and other subdivision scenarios, to provide "innovative
products + AIoT platform + customized services" integrated system solutions. The current IoT application
scenarios have covered more than a dozen vertical scenarios, such as intelligent home appliances, intelligent door
locks, intelligent lighting, intelligent travel, smart hotels, smart campuses, etc., providing one-stop intelligent
services for many domestic and foreign customers. In 2022, it won the "Most Popular Award for IoT Platform"
and "Top 10 Smart Ecological Brand of the Year" and other honors.
(II) The essential clearance of high-priced inventory, cost pressure relief, and intelligent manufacturing
level significantly improved
Consolidated gross margin: In 2022, the Company achieved a consolidated gross margin of 20.14%, down
1.13% year-on-year. During the reporting period, controller products' upstream raw material prices stabilized and
gradually declined. The upstream lithium carbonate prices of cells rose sharply, paying higher procurement costs
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year-on-year in 2021, which impacted the wide gross margin in the first three quarters. As the high-priced
inventory gradually cleared, the gross margin improved to 23.75% in the fourth quarter from a year earlier. With
the implementation of measures such as the launch of new products, clearance of high-priced inventory, and cost
reduction and efficiency improvement, profitability has improved quarter by quarter.
Active transformation to "smart factory" to achieve the best level in the industry: During the reporting
period, the Company continued to introduce automated production lines based on "lean," "automation," and
"digital" as the pillar of building "the shortest delivery time, stable quality, the best cost, flexible delivery" of
Topband intelligent factory. In 2022, the Company will realize the leap from local automation to whole-line
automation for the first time, its precision manufacturing capability will be improved, and manufacturing costs
will be significantly reduced. During the reporting period, the Company has planned to promote the digital
workshop based on the whole automated line, MES manufacturing management system, and workshop logistics
system in several factories such as Ningbo and Huizhou, and integrated intelligent storage and logistics, DFM,
QMS, and other intelligent management systems, to accelerate the transformation to a smart factory and realize the
complete closed loop of logistics and information flow in the manufacturing system. In terms of long-term
planning, Topband will eventually evolve into a smart factory platform cluster based on the global factory layout
to achieve process optimization in design, manufacturing, assembly, warehousing, logistics, and other aspects of
the entire product life cycle and build a more intelligent, more efficient, and more environmentally friendly
industrial ecology and management model.
In the future, we will take systematization and systematization as our hands to continuously reduce costs and
increase efficiency, achieve the best level in the industry and maintain the leading edge in total cost.
(III) Insist on high proportional investment in R&D, build platform-based competitive advantages, and
tap the blue ocean market with innovation drive
We insist on creating value for customers and society and always take "technological innovation" as the
engine of the Company to continuously deepen our technological leadership and build new momentum for
corporate development. In 2022, the Company will continue to promote and deepen the technical accumulation
and application of "four electrics and one network" technology in five industries, accelerate the integration and
application of AI, IOT, 5G, and other new technologies, accelerate the construction of new energy production
capacity and new technology research and development, further enhance the Company's innovation ability and
core competitiveness, and bring more value to customers and society.
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During the reporting period, the Company invested RMB 720 million in R&D, representing a year-on-year
increase of 28.54% and accounting for 8.11% of the operating revenue, with 1,776 R&D and technical service
personnel. The Company creates a culture of innovation internally, increases the protection of independently
controllable products and independent intellectual property rights externally, aims at technology leadership,
achievement protection, and benefit enhancement, manages patent assets effectively, guarantees the maximum
value of intellectual property rights and promotes the industrial transformation of innovation achievements. At the
end of the reporting period, the Company and its subsidiaries applied for a total of 2,946 patents, including 1,054
invention patents, 1,535 utility models, 261 design patents, 39 foreign patents, and 57 PCT patents; the Company
and its subsidiaries applied for a total of 134 software copyrights and 361 trademark applications. The Company's
R & D investment accounted for about 7% of operating revenue in the past ten years. The continuous high
proportion of R & D investment has resulted in many innovative products, such as inverters, thermostats, stir-
fryers, lawn mowers, floor scrubbers, air energy heat pumps, etc. The percentage of independently controllable
businesses in 2022 rapidly increases, contributing to a continuous power source for future sustainable
development.
(IV) Continued acceleration of international layout and deep development of customer intimacy
strategy
As a company with global operations, we have customers worldwide. Around the "customer intimacy"
strategy, close to customer service, to further improve service responsiveness and service quality. According to
business development needs, we have established more than ten regional operation centers, manufacturing centers,
R&D centers, and representative offices in many places worldwide. In 2022, Vietnam and India's bases continued
to expand production, and Mexico and Romania bases were also completed and put into operation. International
operation departments in Europe, America, South Africa, and Japan were established one after another, which
accelerated the development of the Company's global layout.
(V) Healthy and sustainable business activities
In FY2022, the Company strengthened its inventory and accounts receivable control and increased its
payback efforts. During the reporting period, the Company's net cash flow from operating activities turned from
negative to positive, achieving RMB 491 million, an increase of 318.67% year-on-year, making the Company's
operating activities healthier and sustainable.
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2. Revenue and cost
(1) Composition of operating income
Unit: RMB
2022 2021 Year-on-year
Proportion in Proportion in increase or
Amount Amount decrease
operating income operating income
Total operating
8,875,099,137.06 100% 7,767,034,835.03 100% 14.27%
income
By industry
Intelligent control
8,875,099,137.06 100.00% 7,767,034,835.03 100.00% 14.27%
electronics industry
By product
Tool 3,240,010,210.60 36.51% 2,994,451,368.50 38.55% 8.20%
Home appliances 3,091,915,524.39 34.84% 2,959,263,866.21 38.10% 4.48%
New energy 2,035,748,139.21 22.94% 1,241,478,904.30 15.98% 63.98%
Industry 248,342,753.93 2.80% 295,153,637.29 3.80% -15.86%
Intelligent solutions 188,747,795.73 2.13% 221,269,657.19 2.85% -14.70%
Other 70,334,713.20 0.79% 55,417,401.54 0.71% 26.92%
By region
Domestic 3,524,383,375.76 39.71% 3,427,652,622.28 44.13% 2.82%
Export 5,350,715,761.30 60.29% 4,339,382,212.75 55.87% 23.31%
Distribution model
Basing production
8,875,099,137.06 100.00% 7,767,034,835.03 100.00% 14.27%
on sales prospects
(2) The situation of industries, products, regions or sales models accounting for more than 10% of the
Company's operating income or operating profit
Applicable □ Not applicable
Unit: RMB
Increase or Increase or Increase or
decrease of decrease of decrease of
Gross
operating operating costs gross profit
Operating income Operating cost profit
income over the over the same rate over the
rate
same period of period of last same period
last year year of last year
By industry
Intelligent control
8,875,099,137.06 7,087,226,986.88 20.14% 14.27% 15.91% -1.14%
electronics industry
By product
Tool 3,240,010,210.60 2,574,926,005.78 20.53% 8.20% 10.86% -1.90%
Home appliances 3,091,915,524.39 2,485,460,503.68 19.61% 4.48% 4.40% 0.06%
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New energy 2,035,748,139.21 1,658,664,841.64 18.52% 63.98% 70.70% -3.21%
By region
Domestic 3,524,383,375.76 2,873,242,064.43 18.48% 2.82% 6.55% -2.85%
Export 5,350,715,761.30 4,213,984,922.45 21.24% 23.31% 23.29% 0.01%
Distribution model
Basing production
8,875,099,137.06 7,087,226,986.88 20.14% 14.27% 15.91% -1.14%
on sales prospects
The Company's main business data for the last 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
(3) Whether the Company's income from physical sales greater than that from labor services
Yes □ No
Industry classification Items Unit 2022 2021 Year-on-year increase or decrease
Sales volume PCS 145,345,424.00 174,889,510.00 -16.89%
Intelligent control
Production output PCS 140,109,731.00 181,035,707.00 -22.61%
electronics industry
Inventory PCS 11,324,133.00 16,559,826.00 -31.62%
Reasons for the change of more than 30% in relevant data
Applicable □ Not applicable
The inventory during the reporting period decreased by 31.62% year-on-year, mainly due to the increase in
product unit value and the relative decrease in production and sales quantities.
The sales quantity with a unit price P> RMB 200 is 6.2268 million PCSs, and the sales revenue is RMB 3.068
billion;
The sales quantity with a unit price of RMB 100 ≤ P< RMB 200 is 14.3083 million PCSs, and the sales revenue is
RMB 2.121 billion;
The sales quantity with a unit price of RMB 50 ≤ P< RMB 100 is 22.2002 million PCSs, and the sales revenue is
RMB 1.659 billion;
The sales quantity with a unit price P< RMB 50 is 102.6101 million PCSs, and the sales revenue is RMB 2.028
billion.
(4) The fulfillment of major sales contracts and purchase contracts signed by the Company till the end of
the reporting period
□ Applicable Not applicable
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(5) Composition of operating cost
Industry and product classification
Unit: RMB
2022 2021
Year-on-year
Industry Proportion Proportion
Items increase or
classification Amount accounting for Amount accounting for decrease
operating cost operating cost
Intelligent control Operating
7,087,226,986.88 100.00% 6,114,531,354.87 100.00% 15.91%
electronics industry cost
Unit: RMB
2022 2021
Year-on-year
Product category Items Proportion Proportion increase or
Amount accounting for Amount accounting for decrease
operating cost operating cost
Tool Operating cost 2,574,926,005.78 36.33% 2,322,704,928.43 37.99% 10.86%
Home appliances Operating cost 2,485,460,503.68 35.07% 2,380,662,056.81 38.93% 4.40%
New energy Operating cost 1,658,664,841.64 23.40% 971,706,470.22 15.89% 70.70%
Industry Operating cost 180,681,718.87 2.55% 203,688,366.55 3.33% -11.30%
Intelligent
Operating cost 154,179,778.42 2.18% 188,848,535.84 3.09% -18.36%
solutions
Other Operating cost 33,314,138.50 0.47% 46,920,997.03 0.77% -29.00%
Description
Not applicable
(6) Whether the consolidation scope has changed during the reporting period
Yes □ No
During the reporting period, 4 new companies were included in the consolidation scope, including 2 newly
established subsidiaries and 2 newly established sub-subsidiaries.
(7) Major changes or adjustments in the Company's business, products or services during the reporting
period
□ Applicable Not applicable
(8) Information of main sales customers and suppliers
Information on main sales customers of the Company
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Sales amount of top five customers of the Company in total (RMB) 3,282,287,525.00
Proportion of the sales amount of top five customers in total accounting for the annual total sales amount 36.98%
Proportion of related party sales in the top five customers' sales in the total annual sales 0.00%
Data of the top five customers of the Company
Proportion accounting for the
No. Customer name Sales amount (RMB)
annual total sales amount
1 No. 1 2,391,673,730.88 26.95%
2 No. 2 279,817,757.32 3.15%
3 No. 3 270,536,196.32 3.05%
4 No. 4 175,796,499.88 1.98%
5 No. 5 164,463,340.61 1.85%
Total -- 3,282,287,525.00 36.98%
Other information on main customers
□ Applicable Not applicable
Information on main suppliers of the Company
Purchase amount of the top five suppliers of the Company in total
1,921,053,624.68
(RMB)
Proportion of the purchase amount of top five suppliers in total
22.00%
accounting for the annual total purchase amount
Proportion of related party purchase amount to annual total
0.00%
purchase amount among the top five suppliers
Information on the top five suppliers of the Company
Proportion accounting for the
No. Name of supplier Purchase amount (RMB)
annual total purchase amount
1 No. 1 1,174,845,885.85 13.45%
2 No. 2 309,449,151.91 3.54%
3 No. 3 174,381,138.75 2.00%
4 No. 4 150,759,689.78 1.73%
5 No. 5 111,617,758.39 1.28%
Total -- 1,921,053,624.68 22.00%
Other information on main suppliers
□ Applicable Not applicable
3. Expenses
Unit: RMB
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Year-on-year
2022 2021 increase or Explanation of major changes
decrease
Compared with the same period of last year, it increased by
RMB 51.62 million or 24.75% during the reporting period.
The main reason is that during the reporting period, the
Selling
260,181,170.88 208,562,819.10 24.75% recognized share-based payment expenses for equity
expenses
incentives increased compared with the same period of last
year, as well as the increase in personnel salaries and other
expenses incurred to achieve income growth.
Compared with the same period of last year, it increased by
RMB 111.16 million or 43.03% during the reporting period.
The main reason is the recognized share-based payment
Management
369,502,745.36 258,345,031.89 43.03% expenses for the Company's equity incentives during the
expenses
reporting period, as well as the increase in expenses due to the
corresponding increase in the number of employees to meet
future strategic implementation.
Compared with the same period of last year, it decreased by
RMB 186.96 million or 293.11% during the reporting period.
Finance
-123,173,262.90 63,785,550.48 -293.11% The main reason is that the increase in the exchange rate of the
expenses
US dollar against the RMB during this period resulted in a
large exchange gain.
Compared with the same period of last year, it increased by
RMB 142.4 million or 31.65% during the reporting period.
R&D The main reason is that during the reporting period, the
592,346,136.09 449,950,052.11 31.65%
expenses recognized share-based payment expenses due to equity
incentives and the Company's investment in R&D resources
increased compared to the same period last year.
4. R&D investment
Applicable □ Not applicable
Impact on the
Main R&D
Project objective Project progress Goals to be achieved Company's future
project name
development
With the increasing demand for Support up to 20 kw
The Company has
intelligence and low-carbon society, power range; lead It will be widely
completed the
the application of frequency industry level in the applied in the
development and
conversion technology is becoming aspects of energy Company's household
verification of
R&D of increasingly widespread. This project efficiency, vibration and commercial
technology and product
medium and aims to have an insight into user needs, and noise appliance solutions,
platform technology,
high power overcome the difficulties of high- suppression; keep accelerating the
and has successively
frequency power, high-efficiency, and low-noise ahead of the Company's exploration
mass-produced
conversion frequency conversion technology, reliability of products and development of
multiple products, such
control enrich the Company's series product in complex high-end ODM
as high-power air
technology platform for medium and high power application products, as well as
conditioners,
electrical products, and further expand environments such as market expansion for
refrigerators, washing
the application of the Company's high temperature and international major
machines, and range
frequency conversion technology, humidity, achieving customers.
hoods.
breaking through the world's leading large-scale industrial
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customers. application of the
technology.
With the intelligentization of products,
aging society, and rising labor costs,
The Company has The third generation
mobile service robots are rapidly being By feat of this project,
developed the fourth mobile robot chassis
applied in various industries. The the Company maintains
generation technology platform technology
mobile robot chassis is the core its leading position in
platform and added is leading. The
platform that integrates various key the core underlying
dozens of patented product platform has
technologies of robots, and is the most technology of mobile
technologies, which are achieved mass
technically challenging and valuable robots, further
R&D of all continuously production
part of mobile robot product solutions. enhancing its
mobile robot developing; the product applications in
This project aims to develop dozens of innovation and
chassis platform has been multiple scenarios
key technologies such as robot map competitiveness in the
technology applied in dozens of such as homes,
construction, positioning, planning, development of various
projects, and the gardens and
navigation, mobility, obstacle mobile robot solutions
technical level of industries, with
avoidance, multi-sensor fusion, and accelerating its
borderless AI lawn leading technological
machine vision, and AI, and a business development
mowers is at the levels and
comprehensive product platform for in the field of mobile
forefront of the comprehensive
robot chassis, and achieve mass robots.
industry. competitiveness.
production applications in multiple
scenarios.
The motor drive
without Hall sensor
(sensorless) detection
and estimation
Key technologies have
With the development of society, algorithm is leading
been verified.
various types of electric tools and in the industry in It will be widely used in
Breakthroughs have
garden tools are rapidly popularizing to terms of estimation dozens of products such
been made in ultra high
improve work efficiency and reduce accuracy for high, as electric tools and
speed motors and their
labor intensity. The brushless DC medium, low, and garden tools, with
R&D of supporting direct drive
motors and its control technology are even zero speed advantages in system
motor drive control technology, as
the core technologies of electric tools positions. The cost reliability, cost,
without Hall well as high voltage
and garden tools. This project focuses and reliability of the volume, weight, good
sensor and non-electrolytic
on the research of motor drive without solution using grip in hand, and other
mechatronics capacitor BLDC drive
Hall sensor and mechatronics sensorless technology aspects, further
technology technology. Relevant
technology, and develops solutions to are comprehensively consolidating the
achievements can be
achieve high reliability, low cost, and improved by more Company's pioneering
applied to mass
small volume tool products, further than 30%.The advantages in the tool
production products
expanding the Company's leading performance and cost market.
and are being promoted
advantage in tool products. of mechatronics
in the market.
design have been
comprehensively
improved by over
30%.
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Permanent magnet motors are currently
widely used, and the project aims to
improve their performance, reduce
noise, and design and develop new
The performance and This technology has
types of permanent magnet motor
noise level of new broad application
technology. Through innovative
permanent magnet prospects in the
research on the application of
R&D is ongoing, and motors are at the Company's brushless
permanent magnet structures, the
the technology is leading level in the DC motors, which can
R&D of new smoothness and the vibration of motor
mature and stable and industry. The new further enhance the
permanent operation are improved. By optimizing
has been applied in structure of Company's
magnet the structure of the motor and the
fields such as E-Blike permanent magnet competitiveness in the
motor fixation of magnetic steel, the
and electric motors has been field of high-
technology magnetism gathering ability is
motorcycles and mass-produced and performance motors
improved, the magnetic energy product
tricycles. applied in high- and strengthen its
of the permanent magnet is greatly
efficiency brushless strength in various
increased, and ultra-low magnetic
DC motors and other fields such as tools and
leakage is achieved, achieving the goal
products. new energy vehicles.
of significantly reducing the
performance requirements of magnetic
steel under the same motor
performance.
New energy is a revolution in the field
of energy, and large-capacity single
cells indicate an important
development direction of power and
Breakthroughs have
energy storage lithium batteries. This
been made in smart
project optimizes the cell packaging
lithium battery
method, increases the size and capacity Its energy density, This project enriches
Research on technology with high-
of cells, reduces redundant components high and low the Company's cell and
large voltage rate and multi-
of cells, and forms 100 ampere-hour temperature battery PACK product
capacity iron layer stack-based
level of high capacity and high energy discharge line, which will help the
lithium cell energy storage battery
density cell product platform. It can performance, and Company expand its
and PACK technology, and the
effectively improve the capacity and long cycle life are at business in areas such
technology products have been
energy density of cells, promote the the leading level in as energy storage and
platform mass-produced and
PACK integration efficiency, and the industry. light power.
applied in fields such as
reduce the comprehensive cost of the
energy storage and
battery system. Through the research
UAVs.
of supporting BMS and PACK
technologies, the system is integrated
into a complete solution for power and
energy storage batteries.
Research on Sodium ion secondary batteries have The Company has Its energy density and The successful R&D of
new sodium unique advantages in safety, cost, low- completed the cost level rank among this technology and
ion temperature capacity retention, and verification of technical the forefront of the product platform will
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secondary over discharge resistance, and there are principles, conducted industry. help the Company
battery abundant reserves of sodium salt raw R&D verification, and launch a series of
technology materials, making them an important improved the sodium ion battery
platform development direction for batteries in production process. products, effectively
the future. This project aims to solve supplement the existing
the difficulties in the design, lithium iron phosphate
application, and manufacturing process battery series products,
of new sodium cathode material in and is expected to
cells, forming a technical and product improve the
platform for sodium ion secondary competitiveness of the
batteries, and preparing new product Company in the large-
reserves for the further development of scale energy storage
new energy business. application market and
gain more market share
in the future.
With the implementation of the
The research of this
national "carbon peaking and carbon
project aims to develop
neutrality" strategy, the deepening of
This project aims to smart shared battery
green and low-carbon concepts, and
conduct in-depth swap technology,
the rise of the sharing economy model,
research on the key deeply integrating the
the business development of new
technologies of smart Company's "four
models such as shared battery swap is
shared battery swap electrics and one
rapid. The research purpose of this
system, improve the network" technology
project is to conduct in-depth research
intelligence and into battery swap
on the key technologies of smart
reliability of the scenarios to meet the
shared battery swap system, including
The first generation of system, and provide needs of the green
R&D of system architecture design, BMS
products has been more convenient, commuting market. The
smart shared battery management technology,
delivered in bulk, and efficient, and safe R&D of this technology
battery swap intelligent charging management, data
the second generation services for shared is conducive to the
system transmission and processing, safety
of products is under travel. At the same Company's business
technology assurance, battery tracking, cabinet fire
iterative development. time, this project will development in the
protection, etc., in order to improve the
develop high- field of green
intelligence and reliability of the
performance and commuting and the
system and provide more convenient,
highly reliable smart improvement of the
efficient, and safe services for shared
shared battery swap convenience, efficiency,
travel. This project aims to promote the
systems to provide and safety of shared
green and low-carbon development of
high-quality products travel, promoting the
shared travel, facilitate the sustainable
and services for the green, intelligent, and
development of urban transportation,
market. sustainable
and provide support for the
development of urban
development of the intelligent
transportation.
transportation industry.
Research on The automotive industry, especially The Company has The Company has Enhance the Company's
key new energy vehicles, is an important achieved technological mastered core technical and quality
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technologies strategic direction for the Company. breakthroughs and technologies such as assurance capabilities,
such as This project aims to conduct in-depth product applications in automotive electronic the product quality and
automotive research on automotive electronic fields such as controllers, motors, performance, and the
electronic controllers and battery charging and intelligent car cabins, and battery charging development of the
controllers, swap technology of new energy thermal management, and swap equipment, Company in the
motors, and vehicles, explore their design AC/DC charging piles, formed a mature automotive field.
battery principles and key technologies, and motors, forming product platform, and
charging and develop key technology and product several mature product constructed and
swap platforms, build experimental platforms and improved relevant
equipment verification platforms, and improve the constructing relevant technology and
Company's technology and product technology and product product test and
level in the field of new energy vehicle supporting test and verification
applications. verification platforms. platforms, enhancing
the Company's
market
competitiveness in
the automotive field.
With the implementation of the The Company has
national "carbon peaking and carbon formed a technology
neutrality" policy, the demand for and product platform
green new energy and efficient power for mass production
Supported by lead-edge
technology in society has sharply and is continuously
Take the lead in the technologies, the
increased. Digital power technology is developing and
reliability and other Company has made
a revolutionary technology for high- upgrading. The 3,000
performances in the business breakthroughs
power and efficient power supply. This W bidirectional inverter
Research on conversion efficiency in the field of high-end
project studies the digital architecture technology platform
digital power of large power supply digital power field, and
under different power topologies, has completed
technology ranging from several has extensive
constructs relevant DSP processors and development
platform kilowatts to tens of applications in fields
a fully digital feedback technology verification and
kilowatts and in such as green
platform, grasps core digital power productization; the
complex application commuting, energy
algorithms, comprehensively improves special medical digital
scenarios. storage, and other new
the control, management, detection, power technology
energy.
and intelligence level of power platform has completed
supplies, and forms a technology and development
product platform for medium and high- verification and
power digital power. productization;
With the widespread application of The development for AI algorithm and The embedded AI
artificial intelligence technology and technology platform is performance are technology will further
R&D of
the continuous development of product on the way, and leading in the consolidate the
embedded
intelligence, how to apply artificial multiple prototype industry, and Company's leading
artificial
intelligence technology in embedded products have been embedded AI position in the new
intelligence
products such as smart home marketed and applied technology has generation of intelligent
technology
appliances and innovative hardware in fields such as smart achieved leadership control technology, and
has become a hot topic. Through the homes and home in more than three support the Company's
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research on machine vision and speech appliances. product applications. innovation, creation of
recognition algorithms, this project more new products, and
realizes more intelligent automatic exploration of blue
recognition judgments and interactive ocean markets.
operations instead of users, reducing
the complexity of users' use of
products and significantly improving
the user experience. This project will
also build an algorithm and
implementation platform for embedded
AI, and develop innovative products
for various application scenarios.
R&D personnel of the Company
2022 2021 Change ratio
Number of R&D personnel (person) 1,776 1,582 12.26%
Proportion of R&D personnel 21.20% 18.73% 2.47%
Educational background structures of R&D personnel
Bachelor degree 1,186 1,059 11.99%
Master 125 113 10.62%
Doctor and above 3 1 200.00%
Junior college degree and below 462 409 12.96%
Age composition of R&D personnel
Below 30 797 707 12.73%
30-40 797 735 8.44%
Above 40 182 140 30.00%
R&D investment of the Company
2022 2021 Change ratio
Amount of R&D investment (RMB) 719,662,208.72 559,857,194.43 28.54%
Proportion of R&D investment in
8.11% 7.21% 0.90%
operating income
Capitalized amount of R&D investment
127,316,072.63 109,907,142.32 15.84%
(RMB)
Proportion of capitalized R&D
17.69% 19.63% -1.94%
investment in R&D investment
Reasons and impacts of significant changes in the composition of R&D personnel in the Company
□ Applicable Not applicable
Reason for significant changes in the proportion of total R&D investment to operating income over the same
period of last year
□ Applicable Not applicable
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Reason for great change in R&D investment capitalization rate and rational interpretation
□ Applicable Not applicable
5. Cash flow
Unit: RMB
Year-on-year increase
Items 2022 2021
or decrease
Subtotal of cash inflow from operating activities 9,194,212,756.21 7,877,451,630.46 16.72%
Subtotal of cash outflow from operating activities 8,703,157,679.88 8,102,014,176.32 7.42%
Net cash flow from operating activities 491,055,076.33 -224,562,545.86 318.67%
Subtotal of cash inflow from investment activities 63,633,384.24 591,071,911.81 -89.23%
Subtotal of cash outflow from investment activities 840,702,901.36 1,339,243,115.38 -37.23%
Net cash flow from investment activities -777,069,517.12 -748,171,203.57 -3.88%
Subtotal of cash inflow from financing activities 1,118,783,953.99 2,395,480,159.32 -53.30%
Subtotal of cash outflow from financing activities 1,243,705,863.29 852,767,599.74 45.84%
Net cash flow from financing activities -124,921,909.30 1,542,712,559.58 -108.10%
Net increase in cash and cash equivalents -361,823,264.97 539,269,123.28 -167.10%
Explanation of main influencing factors for year-on-year significant changes in related data
Applicable □ Not applicable
Net cash flow from operating activities: Compared with the same period of last year, it increased by RMB
716.36 million or 318.67% during the reporting period. The main reason is that sales collection and purchase
payments were relatively balanced. Last year during the reporting period, and material purchase is increased in
response to the rise in material prices and material shortages.
Net cash flow from financing activities: Compared with the same period of last year, it decreased by RMB
901.09 million or 167.10% during the reporting period. mainly due to the receipt of funds raised by non-public
offering of shares and equity incentives during the same period of last year.
Reasons for the significant difference between the net cash flow generated by the Company's operating activities
and the net profit of the current year in the reporting period
□ Applicable Not applicable
V. Analysis of non-main business
Applicable □ Not applicable
Unit: RMB
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Proportion
Whether it is
Amount in total Explanation of reasons
sustainable
profit
The main reason is the profits and losses of long-term equity
Income from investment, income of financial products and profits and
564,908.47 0.09% No
investment losses of forward exchange transaction business accounted
by equity method during the reporting period
Profit and loss from The main reason is the changes in fair value from external
87,818,625.99 13.87% No
changes in fair value investment during the reporting period
The main reason is the provision for inventory falling price
Impairment of assets -119,329,962.08 -18.84% No
reserves and expected credit impairment losses
Non-operating
6,343,380.95 1.00% No
income
Non-operating
9,310,001.33 1.47% No
expenses
VI. Analysis of assets and liabilities
1. Significant changes in asset composition
Unit: RMB
End of 2022 Early 2022 Increase
or
Proportion Proportion decrease Explanation of major changes
Amount in total Amount in total of
assets assets proportion
Monetary
1,403,026,071.34 13.54% 1,767,580,056.07 18.40% -4.86% No significant changes
capital
Accounts
2,549,734,039.66 24.60% 2,188,161,465.48 22.78% 1.82% No significant changes
receivable
Compared with the beginning of the
period, it decreased by RMB 191.45
million or 8.76% during the
reporting period. The main reason is
that during the same period last year,
some of the raw materials in short
Inventory 1,992,952,212.53 19.23% 2,184,402,766.04 22.74% -3.51%
supply were stocked up in response
to the impact of shortage of raw
material supply, resulting in a
decrease in the stocking and the
consumption of inventory during the
reporting period.
Investment
106,242,777.85 1.03% 86,975,114.31 0.91% 0.12% No significant changes
property
Long-term
equity 23,550,658.91 0.23% 26,119,127.82 0.27% -0.04% No significant changes
investment
Compared with the beginning of the
Fixed assets 1,840,358,093.74 17.76% 1,299,517,887.54 13.53% 4.23%
period, it increased by RMB 540.84
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million or 41.62% during the
reporting period. The main reason is
that during the period, the Operation
Center Project in Ningbo East China
and Operation Center Project in
India constructed was available and
transferred into fixed assets.
Compared with the beginning of the
period, it decreased by RMB 260.47
million or 52.59% during the
reporting period. The main reason is
that during the reporting period, the
Ningbo East China Operation Center
Project constructed was available
Construction
234,775,312.11 2.27% 495,248,025.93 5.16% -2.89% and transferred from the status of
in progress
construction in progress to fixed
assets, while the investment for the
construction of Huizhou YAKO
Automation Technology Co., Ltd.
and Romania Operation Center
during the same period was
increased.
Compared with the same period of
last year, it increased by RMB 48.03
million or 82.57% during the
Right-of-use
106,196,901.87 1.02% 58,168,151.88 0.61% 0.41% reporting period. The main reason is
assets
that overseas companies such as
Romania and Mexico added lease
expenses during the reporting period.
Compared with the same period of
last year, it decreased by RMB
Short-term 126.18 million or 30.81% during the
283,351,495.57 2.73% 409,531,107.26 4.26% -1.53%
loans reporting period. The main reason is
that the short-term loan due was
repaid during the reporting period.
Compared with the same period of
last year, it increased by RMB 44.95
million or 48.17% during the
Contractual
138,281,929.17 1.33% 93,328,006.70 0.97% 0.36% reporting period. The main reason is
liabilities
that the advance received on contract
increased compared with the same
period of last year.
Long-term
581,500,000.00 5.61% 475,020,000.00 4.94% 0.67% No significant changes
loans
Lease
73,610,791.09 0.71% 40,290,402.14 0.42% 0.29% No significant changes
liabilities
High proportion of overseas assets
Applicable □ Not applicable
Unit: RMB
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Proportion
Control Whether
of foreign
measures there is a
Reasons of Operation Earning assets to
Asset details Asset size Location to ensure significant
formation mode position net assets
the safety risk of
of the
of assets impairment
Company
Financial
Operation Investment R&D, supervision
Pune,
Center in and 448,625,579.50 production and 5,437,727.96 7.83% No
India
India establishment and sales external
audit
Financial
Vietnam Dong
Investment R&D, supervision
Dong Nai Nai
and 627,512,658.02 production and 50,195,927.62 10.95% No
Operation Province,
establishment and sales external
Center Vietnam
audit
2. Assets and liabilities measured at fair value
Applicable □ Not applicable
Unit: RMB
Profits and
Changes in
losses from Impairment Purchase Amount
cumulative
Opening changes in accrued in amount in sold in the Other Closing
Items fair value
balance fair value in the current the current current changes balance
included in
the current period period period
equity
period
Financial assets
1. Tradable
financial
assets
(excluding 214,999,336.74 87,818,625.99 235,563,333.30 97,141,487.58 57,000,000.00 342,959,450.31
derivative
financial
assets)
Subtotal of
financial 214,999,336.74 87,818,625.99 235,563,333.30 97,141,487.58 57,000,000.00 342,959,450.31
assets
Total of the
214,999,336.74 87,818,625.99 235,563,333.30 97,141,487.58 57,000,000.00 342,959,450.31
above
Financial
0.00 0.00 0.00 0.00 0.00 0.00
liabilities
Contents of other changes
None
Whether there are significant changes in the measurement attributes of the Company's main assets during the
reporting period
□ Yes No
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3. Restricted asset rights by the end of the reporting period
See Sections X, VII, and (LXXXI) of this report for details.
VII. Investment analysis
1. General situation
Applicable □ Not applicable
Investment in the reporting period (RMB) Investment amount in the same period of last year (RMB) Range of change
42,352,940.00 68,500,000.00 -38.17%
2. Major equity investment obtained during the reporting period
□ Applicable Not applicable
3. Major non-equity investment obtained during the reporting period
□ Applicable Not applicable
4. Investment in financial assets
(1) Securities investment
□ Applicable Not applicable
There was no securities investment during the reporting period.
(2) Derivatives investment
Applicable □ Not applicable
Derivative investments for hedging purposes during the reporting period
Applicable □ Not applicable
Unit: RMB ten thousand
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Proportion of
Profits and investment
Changes in Purchase Amount
losses from amount at the end
cumulative amount sold during
Types of derivatives Initial investment changes in Ending of the period in
fair value during the the
investment amount fair value in amount net assets of the
included in reporting reporting
the current Company at the
equity period period
period end of the
reporting period
Forward settlement and
51,097.04 0 0 51,097.04 51,097.04 0 0.00%
sale of foreign exchange
Total 51,097.04 0 0 51,097.04 51,097.04 0 0.00%
Explanation of
accounting policies and The Company has made corresponding accounting and presentation for foreign-exchange derivative
specific accounting transaction to be done according to Accounting Standards for Business Enterprises No. 22 - Recognition and
principles for hedging Measurement of Financial Instruments, Accounting Standards for Business Enterprises No. 24 - Hedge
business during the Accounting, Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments
reporting period, as well issued by Ministry of Finance, and other regulations and guides. Foreign exchange derivative contracts were
as whether there have initially and subsequently measured using trading financial assets, which fair value is priced by financial
been significant institutions based on open market trading data, and there has been no significant change compared to the last
changes compared to reporting period.
the last reporting period
Explanation of actual
Amount included in current profit and loss from foreign-exchange derivative transaction conducted during
profits and losses in the
the reporting period was approximately RMB 2.9942 million.
reporting period
The Company conducted forward exchange transaction, effectively reducing the risk of exchange
Explanation of hedging
fluctuations through reasonable RMB forward exchange transaction, focusing on future transaction costs and
effect
incomes, and achieving asset hedging with the aim of avoiding risks.
Capital sources of
Self-own capitals
derivatives investment
I. Risk analysis of forward exchange transaction
The forward exchange transaction business carried out by the Company and its subsidiaries followed the
principle of locking in exchange rate risk and not engaging in speculative or arbitrage trading operations.
Risk analysis and However, there were still certain risks in forward exchange transaction operations:
control measures of 1. Exchange rate fluctuation risk: In the event of significant fluctuations in exchange rates, if the forward
derivatives positions in settlement exchange rate stipulated in the confirmation letter for forward exchange transactions was lower
the reporting period than the real-time exchange rate on the settlement day, it will cause exchange losses.
(including but not 2. Internal control risk: Because forward exchange transactions are highly specialized, risks may arise due to
limited to market risk, inadequate internal control systems.
liquidity risk, credit 3. Customer default risk: If the customer's accounts receivable are overdue and the payment cannot be
risk, operational risk, collected within the predicted payment period, it will cause a delay in forward exchange settlement and
legal risk, etc.) result in losses for the Company.
4. Risk of payment collection prediction: In general, the Sales Department of the Company predicts payment
collection based on customer orders and expected orders. Nonetheless, during the actual execution process,
customers may adjust their own orders and the Company may make an inaccurate payment prediction,
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leading to the risk of delayed delivery of forward exchange settlement.
5. Legal risk: Changes in relevant laws or violations of relevant legal systems by counterparties may result in
contracts being unable to be executed normally and cause losses to the Company.
II. Risk control measures
1. The Company has formulated the Internal Control System for Forward Exchange Transactions, which
provides clear regulations on the Company's foreign exchange transaction operating principles, approval
authority, internal operating procedures, responsible departments and individuals, information isolation
measures, and risk management for forward exchange transaction, and can meet the needs of practical
operations, and its internal control and risk management measures formulated are practical and effective.
2. The finance center and audit department of the Company, as relevant responsible departments, have clear
management positioning and responsibilities, and responsibilities are assigned to their positions. Through
this hierarchical management, the risks of single person or individual department operations are
fundamentally eliminated, and the speed of risk response is also improved while effectively controlling risks.
3. To prevent delayed delivery of forward exchange transactions, the Company attaches great importance to
the management of accounts receivable and actively collects accounts receivable to avoid the phenomenon
of overdue accounts receivable.
4 The Company engages in financial derivative transaction business with large commercial banks with legal
qualifications, closely monitors relevant laws and regulations in the field, avoiding potential legal risks.
5. The Company's forward exchange transactions must be based on a cautious prediction for foreign
currency receipts (payments) of the Company, and the foreign currency amount of the foreign exchange
transaction contract must not exceed 90% of the annual planned total amount of foreign currency receipts
(payments).The delivery period of forward exchange transactions needs to match the Company's predicted
foreign currency collection time.
Changes in market price
or fair value of products
of the invested
derivatives during the
reporting period, and
the disclosure of
Determine changes in fair value based on market quotes from external financial institutions.
specific methods used
and relevant
assumptions and
parameters set in the
analysis of the fair
value of derivatives
Litigation (if
Not applicable
applicable)
Disclosure date of
Board of Directors
announcement for January 15, 2022
approval of derivatives
investment (if any)
Disclosure date of
Shareholders' Meeting
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announcement for
approval of derivatives
investment (if any)
The forward exchange transactions carried out by the Company is to meet the needs of normal production
Special opinions of
and operation, not solely for profit, and the Company has also formulated the Internal Control System for
independent directors
Forward Exchange Transactions to avoid and prevent exchange rate fluctuation risks and strengthen risk
on derivatives
management and control. For details, please refer to the Company's disclosure on Independent Opinions of
investment and risk
Independent Directors on Matters Related to the 19th Meeting of the 7th Board of Directors on
control of the Company
http://www.cninfo.com.cn on January 15, 2022
2) Derivative investment for speculative purposes during the reporting period
□ Applicable Not applicable
There was no derivative investment for speculative purposes during the reporting period.
5. Usage of raised capitals
Applicable □ Not applicable
(1) General use of raised capitals
Applicable □ Not applicable
Unit: RMB ten thousand
Total
amount Amount
Cumulative
of raised Cumulative of raised
Total total
capitals total capitals
amount of Total amount Total
Total for amount of Purpose and which
Year of raised amount of proportion amount of
Ways of raising amount of change raised destination of have
raising capitals raised of raised unused
capitals raised of capitals unused raised been
capitals used in the capitals capitals raised
capitals purpose with capitals idle for
current used with capitals
during changed more
period changed
the purposes than two
purposes
reporting years
period
Temporary
replenishment
Public offering and deposit in
2019 of convertible 56,543.65 5,767.75 44,568.25 0 0 11,975.40 the special 0
bonds account for
raised
capitals
Temporary
Non-public replenishment
2021 offering of 103,684.71 6,095.45 40,635.32 61,000 61,000 58.83% 63,049.39 and deposit in 0
shares the special
account for
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raised
capitals
Total -- 160,228.36 11,863.20 85,203.57 61,000 61,000 38.07% 75,024.79 -- 0
General use of raised capitals
1. Actual amount and time of arrival of capitals raised
(1) Public offering of convertible corporate bonds to raise funds in 2019
The Company publicly issued 5.73 million convertible corporate bonds on March 7, 2019, each with a par value of RMB 100, with a
total amount of RMB 573 million, with the approval in the Reply of China Securities Regulatory Commission on the Approval of
Public Offering of Convertible Corporate Bonds by Shenzhen Topband Co., Ltd. (ZJXK [2018] No. 1842).through priority placement
to original shareholders, offering of the balance after priority placement to original shareholders (including the part for which the
original shareholders gave up priority placement) to public investors online through the trading system of Shenzhen Stock Exchange,
and stand-by underwriting of the part with the subscription amount less than RMB 573 million by lead underwriters. Capitals with a
total amount of RMB 573,000,000.00 were raised, and the net capitals raised were RMB 565,436,509.42 after deduction of all the
issuance costs amounting to RMB 7,563,490.58.
The capitals arrived on March 13, 2019. Ruihua Certified Public Accountants (Special General Partnership) verified the arrival and
issued the Capital Verification Report (RHYZ [2019] No. 48270001).
(2) Non-public offering of shares to raise capitals in 2021
Shenzhen Topband Co., Ltd. issued 92,105,263 common stocks to specific targets in private at the price of RMB 11.40 per stock, with
a par value of RMB 1 per stock, with the approval in the Reply of China Securities Regulatory Commission on the Approval of Non-
public Offering of Shares by Shenzhen Topband Co., Ltd. (ZJXK [2020] No. 1865). The total amount of funds raised was RMB
1,049,999,998.20, and the net funds actually available for use were RMB 1,036,847,068.71 after deduction of all the issuance costs
amounting to RMB 13,152,929.49 (tax-exclusive).
The funds were transferred to the Company's special account for raising funds on May 10, 2021.Baker Tilly China Certified Public
Accountants (Special General Partnership) verified the arrival and issued the Capital Verification Report (TZYZ [2021] No. 29460) for
the capitals.
2. Usage amount and balance of funds raised in 2021
(1) Use of capitals raised by public issuing of convertible bonds in 2019
As of December 31, 2022, the Company has invested RMB 445.6825 million in capital-raising projects. Among them, RMB 419.4477
million was directly invested in the capital-raising projects, and RMB 26.2348 million was returned before the raised capitals were put
in place. On December 31, 2022, RMB 120 million idle raised capitals have been used to temporarily supplement the working capital;
as of December 31, 2022, the balance of the raised capitals account is RMB 6.3618 million (including interest income).
(2) Non-public offering of shares to raise capitals in 2021
As of December 31, 2022, the Company has invested RMB 406.3532 million in capital-raising projects. Among them, RMB
360.95453 million was directly invested in the capital-raising projects, and RMB 45.3987 million was returned before the raised
capitals were put in place. On December 31, RMB 2022, 590 million idle raised capitals have been used to temporarily supplement the
working capital; as of December 31, 2022, the balance of the raised capitals account is RMB 40.9477 million (including interest
income).
(2) Situation of projects committed when raising capitals
Applicable □ Not applicable
Unit: RMB ten thousand
45
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
Where
Whether
there is
the Investment Benefits Whether
Committed Total Total Amount Accumulated The date any
project progress achieved the
investment projects committed investment invested investment when the significant
has been by the end during expected
and investment investment after during the by the end of project is change in
changed of the the benefits
direction of over of raised adjustment reporting the period ready for the
(including period reporting are
raised capitals capitals (1) period (2) use feasibility
some (3)=(2)/(1) period achieved
of the
changes)
project
Committed investment projects
Some are
Construction project already in
of Topband East use and the Not
No 56,543.65 56,543.65 5,767.75 44,568.25 78.82% -2,561.74 No
China Operation rest are applicable
Center under
construction
Topband Huizhou No.
Not
2 Industrial Park Yes 73,684.71 12,684.71 4,539.87 35.79% No
applicable
Project
Topband Nantong
Not
Industrial Park Phase Yes 61,000 6,095.45 6,095.45 9.99% No
applicable
- I Stage - 1 Project
Replenish the
Not
Company's working No 30,000 30,000 30,000 100.00% No
applicable
capital
Subtotal of
committed investment -- 160,228.36 160,228.36 11,863.20 85,203.57 -- -- -- --
projects
Investment direction of over raised capitals
None
Total -- 160,228.36 160,228.36 11,863.2 85,203.57 -- -- -2,561.74 -- --
Explanation of the
situation and reasons
of failing to reach the
planned progress or
expected income (by
specific project) None
(including the reason
for selecting "NA" for
"whether the expected
income has been
achieved")
Explanation of major
changes in project None
feasibility
Amount, use and
progress of over Not applicable
raised capitals
Change of Applicable
implementation Applicable
location of 1. On January 8, 2022, the Company held the 18th Meeting of the 7th Board of Directors, deliberated and passed the Proposal
investment projects on Implementation Mode, Subject and Location of Changes in Some Capital-raising Projects, and agreed that the Company
46
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
with raised capitals 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.
2. On August 18, 2022, the Company held the 27th (Extraordinary) Meeting of the 7th Board of Directors, deliberated and
passed the Proposal on Changing Implementation Mode and Location Again in Some Capital-raising Projects, and agreed that
the implementation mode and location of "Topband Nantong Industrial Park Phase - I Stage - 1 Project (Lithium Battery)",
where the location was changed from "Area A, Nantong Free Trade Zone, Jiangsu" to "Nantong Economic & Technological
Development Area, Jiangsu".
Applicable
Applicable
1. On January 8, 2022, the Company held the 18th Meeting of the 7th Board of Directors, deliberated and passed the Proposal
on Implementation Mode, Subject and Location of Changes in Some Capital-raising Projects, and agreed that the Company
Adjustment of should change the implementation subject, location and mode of the lithium battery business in the planned project.
implementation mode Specifically, the implementation mode was changed from the land acquisition for building construction to the direct purchasing
of investment projects of building with infrastructure constructed.
with raised capitals 2. On August 18, 2022, the Company held the 27th (Extraordinary) Meeting of the 7th Board of Directors, deliberated and
passed the Proposal on Changing Implementation Mode and Location Again in Some Capital-raising Projects, and agreed that
the implementation mode and location of "Topband Nantong Industrial Park Phase - I Stage - 1 Project (Lithium Battery)",
where the mode was changed from "the direct purchasing of plant with infrastructure constructed" to "the land acquisition for
plant construction".
Applicable
1. The Company invested RMB 26.2348 million in advance in the operation center project of Topband East China with self-
raised capitals. Ruihua Certified Public Accountants (special general partnership) conducts a special audit on the above matters,
and issues the Authentication Report on the Report of Shenzhen Topband Co., Ltd. on the Investment Projects with Self-raised
Capitals in Advance (RHHZ [2019] No. 48250027). On July 25, 2019, the 25th Meeting of the 5th Board of Directors of the
Company deliberated and passed the Proposal on Using Raised Capitals to Replace Self-raised Capitals Invested in Advance.
Upfront investment
As of December 31, 2022, the Company has completed the replacement of self-raised capitals invested in advance.
and replacement of
2. The Company invested RMB 45.3987 million in Topband Huizhou No. 2 Industrial Park Project with self-raised funds in
investment projects
advance. Baker Tilly China Certified Public Accountants (Special General Partnership) conducted a special audit on the matter
with raised capitals
above, and issued the Authentication Report of Pre-investment of Shenzhen Topband Co., Ltd. in the Investment Project of
Funds Raised with Self-raised Funds (TZYZ [2021] No. 31911). The 10th Meeting of the 7th Board of Directors was held to
review and approve the Proposal on Replacement of Pre-invested Self-raised Funds with Funds Raised on June 8, 2021.As of
December 31, 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
On February 15, 2022, the Company held the 20th Meeting of the 7th Board of Directors, deliberated and passed the Proposal
Temporary on Temporarily Replenishing Working Capital with Some Idle Raised Capitals, and agreed that the Company should
replenishment of temporarily replenish working capital with no more than RMB 840 million of idle capitals raised, with a period of not more
working capital with than 12 months. The above capitals have been fully returned to the raised capitals account within the validity period of the
idle capitals raised deliberation. As of December 31, 2022, RMB 71,000 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 capitals in Not applicable
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 RMB 840 million of idle capitals raised, with a period of not more
than 12 months. The above capitals have been fully returned to the raised capitals account within the validity period of the
Purpose and
deliberation. As of December 31, 2022, RMB 71,000 of temporary supplementary current assets have been used.
whereabouts of
2. On March 22, 2022, the Company held the 21st Meeting of the 7th Board of Directors, deliberated and passed the Proposal
unused raised capitals
on Purchasing Cash Financial Products with Some Idle Raised Capitals and Self-own Funds, and agreed that the Company
should purchase short-term principal-protected bank financial products with no more than RMB 100 million of idle raised
capitals and no more than RMB 600 million of self-own funds. The capitals can be used on a rolling basis within the amount
above. As of December 31, 2022, the Company has purchased no financial products with the idle raised capitals.
47
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
The Board of Supervisors, Independent Directors and Sponsor Institutions of the Company all expressed their clear consent on
the matter.3. The remaining unused raised capitals are deposited in the Company's special account for raising funds.
Problems or other
situations in the usage
None
and disclosure of
raised capitals
(3) Change of projects with raised capitals
Applicable □ Not applicable
Unit: RMB ten thousand
Whether
Total
there was
amount of
Actual Investment Whether a
raised Actual The date Benefits
accumulated progress the significant
capitals to investment when the achieved
Changed Original projects investment by the end expected change in
be during the project is during the
projects committed by the end of the benefits the
invested in reporting ready for reporting
of the period are feasibility
the period use period
period (2) (3)=(2)/(1) achieved of the
changed
changed
project (1)
project
Topband
Topband
Nantong
Huizhou No. 2
Industrial Not
Industrial Park 61,000 6,095.45 6,095.45 9.99% 0 No
Park Phase - applicable
Project (Lithium
I Stage - 1
Battery)
Project
Total -- 61,000 6,095.45 6,095.45 -- -- 0 -- --
(1) In January 2022, 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 plant 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,
Reasons for change, decision-making enhanced the its market competitiveness and operating performance, and through the
procedures and information disclosure (by
comprehensive assessment, planned to change the implementation subject, location and
specific projects)
mode of the lithium battery business in the original capital-raising project, so as to
utilize the funds raised efficiently.
The Company, after holding the 18th (Extraordinary) Meeting of the 7th Board of
Directors, the 15th (Extraordinary) Meeting of the 7th Board of Supervisors, 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.
48
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
(2) In August 2022, since the Administrative Committee of Nantong Economic &
Technological Development Area changed the overall planning for the implementation
location of Topband Nantong Industrial Park Phase - I Stage - 1 Project, taking into
account the efficiency of the Company's capital-raising, the speed of the capital-raising
project, and the needs of the Company's business development, upon friendly
consultation with the Administrative Committee of Nantong Economic & Technological
Development Area, the Company decided to give up the right to purchase the use of
relevant assets, changed the implementation mode and location of the capital-raising
project, purchased approximately 250 mu of land usage right in the Nantong Economic
& Technological Development Area using the capital raised and self-own funds, and
implemented the "Topband Nantong Industrial Park Phase - I Stage - 1 Project (Lithium
Battery)" through self-built mode.
The Company, after holding the 27th (Extraordinary) Meeting of the 7th Board of
Directors, the 22th (Extraordinary) Meeting of the 7th Board of Supervisors, the 2nd
Extraordinary General Meeting of Shareholders in 2022, deliberated and passed the
Proposal on Implementation Mode, Subject and Location of Changes in Some Capital-
raising Projects, to change the implementation mode and location of the lithium battery
business in the planned capital-raising project with the non-public offering of shares in
2021.
(3) 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)
Explanation of major changes in the
Not applicable
feasibility of the changed project
VIII. Sale of major assets and equity
1. Sale of major assets
□ Applicable Not applicable
The Company did not sell any major assets during the reporting period.
2. Sale of major equity
□ Applicable Not applicable
IX. Analysis of major holding and equity participating companies
Applicable □ Not applicable
49
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
Situation of major subsidiaries and equity participating companies with an impact of 10% or more on net profit of
the Company
Unit: RMB
Company Company Main Registered Operating Operating
Total assets Net assets Net profit
name type business capital income profit
R&D,
Huizhou production,
Topband sales,
300
Electrical Subsidiary import and 4,316,877,579.22 1,646,365,999.19 5,834,382,426.03 240,628,824.54 216,559,180.57
million
Technology export of
Co., Ltd. electronic
components
R&D,
production,
Topband sales,
Sub- USD 12.5
（Vietnam) import and 225,890,130.09 188,392,031.24 450,572,867.46 94,635,999.17 85,146,770.04
Co.,ltd subsidiary export of million
electronic
components
Situation of acquisition and disposal of subsidiaries during the reporting period
Applicable □ Not applicable
Method of acquisition and disposal of Impact on overall production and operations and
Company name
subsidiaries during the reporting period results
Shenzhen Xiaoyou Aitu Innovation No significant impact on the results of the
Newly established and acquired
Technology Co., Ltd. Report
No significant impact on the results of the
Shenzhen Yueshang Robot Co., Ltd. Newly established and acquired
Report
No significant impact on the results of the
Shenzhen Topband Motor Co., Ltd. Newly established and acquired
Report
No significant impact on the results of the
Huizhou Chiding Technology Co., Ltd. Newly established and acquired
Report
Explanation of major shareholding companies
None
X. Situation of structured entity controlled by the Company
□ Applicable Not applicable
XI. Prospects for the future development of the Company
(I) Social development trend and 2030 vision
1. Intellectualization
50
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
The development and application expansion of new technologies such as IOT, 5G, and AI will open up
growth space and continuously accelerate the process of social intelligence. It is expected that the economic value
affected by the technology will exceed USD 60 trillion by 2030.The Company will continue to explore innovative
technologies in the future world and expand new opportunities for industry intelligence in various application
scenarios such as clothing, food, housing and transportation, enterprises, and cities.
Especially with the rapid breakthrough of universal artificial intelligence technology, the application of
intelligence will greatly accelerate, and have a profound impact on all aspects of human society. We will continue
to strengthen our technological innovation and R&D capabilities, constantly improve the quality and efficiency of
intelligent applications, and provide customers with more high-quality services and solutions.
2. Low carbonization
The climate crisis caused by greenhouse gases is deepening year by year, driving energy conservation and
carbon reduction in various countries around the world. It is expected that by 2050, China's cumulative investment
in various aspects such as energy production, energy use, and ecology will reach RMB 300 trillion. The Company
will use the technology of "four electrics and one network" and seize the market opportunities brought by the
"carbon peaking and carbon neutrality" policy, helping global low-carbon development.
The Company faces historic new opportunities in areas such as green new energy, energy storage, and
efficient energy use. We will continue to strengthen our technological innovation and R&D capabilities, expand
new market opportunities in the low-carbon field, provide customers with more high-quality solutions and services,
and contribute our strength to the global low-carbon development.
3. Internationalization
As the global supply chain fluctuates more tempestuously, its safety risks are increasing, and the supply chain
is developing towards multicentralization, internationalization and multiregional localization. On the one hand,
with the increasing complexity, personalization, and differentiation of terminal products, the product R&D and
delivery are required to be fast, and the quality be reliable and stable. China's industrial clusters and engineer
dividends have promoted the transfer of industries to China. On the other hand, with the impact of international
trade conflicts, geopolitical factors, and other factors, the risk of a single Chinese industrial chain has significantly
increased. Combined, the industry will gradually show a trend of mainly focusing on China and developing
towards multiple regions such as Southeast Asia and North America. The Company will actively respond to new
51
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
challenges in the supply chain, expand new opportunities in multiple regions, and accelerate the pace of
internationalization.
2030 vision of the Company
By 2030, the Company's goal is to provide customers with intelligent solutions through deep insight into the
pain points of users, scenarios, and industries, making the world smarter and low-carbon.
An intelligent society is the irresistible trend, with a long-term, continuous, wide-ranging and far-reaching
change, which will deeply affect modern life and change the form of products. We shall seize the historical
opportunity of intelligent, scenario-based, green and low-carbon development, actively innovate business models,
make transform from components to products and then to solutions, innovate home appliance business around the
"four electrics and one network" technology, cultivate blue ocean market, expand tool business product categories,
maintain leading market share, and accelerate the development of new energy and industrial business, achieving
scale growth.
(II) Development strategies of the Company
1. Focusing on strategy for sustained and effective growth
In 2021, based on the Company's interim development goals for 2025, a vision blueprint for the next decade
was formulated, and the long-term development goals for 2030 were clearly proposed. The Company will
continue to focus on scale growth as its core goal, deepen the implementation of the five strategic policies of
"scale growth, close customer relationship, innovation-driven development, agile operation and organizational
evolution", build a pyramid profit model, enhance leading position in global intelligent control solution providers,
and achieve sustained and effective growth.
The Company will provide one-stop intelligent control solutions and services for the world's leading brand
customers with the advantage of the "four electrics and one network" technology, especially increasing business
development in the new energy industry, focusing on four main businesses of the "home appliances + tools + new
energy + industry", and make good use of the capital market platform to achieve high growth in operating income
scale through a combination of endogenous and extended methods.
2. Continuously enhancing innovation-driven technology and product competitiveness
The Company will adhere to innovation-driven development, continuously maintain R&D investment,
strengthen basic and cutting-edge technology research, construct technology control points, strengthen product
line construction and create more high-quality product platforms, promote the protection of intellectual assets such
52
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
as patents and trade secrets, build technological barriers, cultivate innovative growth engines, and strengthen the
cultivation of innovative talents.
At the same time, the Company will seize development opportunities such as "intelligence" and "low-carbon",
actively explore innovative businesses such as the Internet of Things and green commuting, consolidate and
expand the core technical capabilities of the "four electrics and one network", enhance market and product
development capabilities, and explore more high-value markets. The Company has identified key development
plans for "knock-out products" in various fields, focused on strategic opportunities and strengthened innovation
efforts around key categories.
3. Agile operation for improving quality, reducing costs, and increasing efficiency
The Company will deepen the implementation of agile operation strategy, continuously optimize business
processes such as strategy, marketing, R&D, sales, purchase, and after-sales, and improve end-to-end efficiency.
The Company will also increase efforts to reduce costs and increase efficiency, and comprehensively utilize
various means such as R&D and design cost reduction, purchase cost reduction, and manufacturing cost reduction
to achieve effective cost reduction for mature products.
4. Organizational reform and continuous evolution of process-oriented organizations
Promote organizational evolution strategy, strengthen talent team building, quickly increase the number of
key positions, strengthen the capacity building of the middle office and background, better empower the iron
triangle team, and create a customer-centered process-oriented organization.
5. Accelerate international layout and build global multi-base delivery capabilities
The Company will continue to strengthen its close customer relationship strategy. In order to meet the needs
of customers for fast and nearby delivery, and in combination with business needs, the Company has established
operation centers, production and manufacturing centers, R&D centers, and representative offices in multiple
locations around the world. During the reporting period, the Company accelerated the gradeability of production
capacity in Vietnam and India, and accelerated the construction and mass production introduction of factories in
Mexico and Romania; at the same time, the Company utilized the advantages of global layout to strengthen supply
chain integration and enhance local purchase capabilities.
(III) Business plan of 2023
1. Realize scale growth: Based on the core technology of "four electrics and one network", continue to
implement the strategy of leading customers, leverage platform advantages, and increase the share of overseas
53
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
factories to achieve scale growth in various industries, and increase the proportion of high-value products and
autonomous and controllable businesses;
2. Enhance profitability: By implementing "three reductions and one optimization" and process optimization,
and enhancing the level of digitalization and automation, improve the Company's overall cost efficiency, increase
efficiency and reduce costs, enhance the Company's profitability, and improve cash flow from operating activities;
3. Organizational evolution: Incubate large-scale BUs, create an outspoken corporate culture, strengthen the
sense of mission and internal drive of all Topband staff, stimulate the creativity of all employees, unleash potential,
and drive employee success.
(IV) Fund demand and utilization plan
The Company is in a stage of rapid development and has a significant funding demand in terms of equipment
upgrades and expansion of production capacity. The Company has a good credit standing, so it is able to get
strong support from the bank in a timely manner. In 2023, the Company will combine its own development
situation and development strategy, and make reasonable use of various capital-raising channels to raise the
necessary funds for the Company's development.
(V) Risks faced by the Company and countermeasures
1. External risks such as the macro environment
Trade frictions and geopolitical tensions will also produce adverse influences on business confidence and
investment. The Company may continue to face an uncertain external environment, so we will further strengthen
risk identification and control for various businesses and regions and adjust strategies timely to minimize external
influences.
2. Risks of technology upgrading
The intelligent controller industry technology, as the main business of the Company, is developing rapidly
with fast product upgrading and short life cycle. Although the Company continues to invest in research and
development and owns a number of invention and utility patents, there is still a risk that the technology will not be
updated in time to meet market demand, or lag behind competitors in launching new products, resulting in a
decline in the market share and profitability of the Company.
3. Exchange rate risk
54
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
The Company's revenue from export sales accounts for more than half of total revenue. In order to cope with
the risk of exchangerate fluctuation, the Company will reduce and hedge foreign exchange risks by conducting
RMB hedging business, international purchase and re-pricing of new product.
4. Other risks
There are many uncertainties in the current macro environment at home and abroad, and there are some
factors that are unfavorable to the operation of the Company. For example, the China-United States trade war,
shortage of raw materials, rising price, insufficient labor and customer credit risk will increase the uncertainty of
the Company's operation.
XII. Reception, investigation, communication, interview and other activities during the
reporting period
Applicable □ Not applicable
Main contents of Basic
Method Type of
Time of Location of interview and Information
of reception Reception object
reception reception materials index for
reception object
provided investigation
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Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
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Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
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Flush operation of the
e Organizati http://www.cnin
2022/3/31 Roadshow Performance presentation session Company; no
communi ons fo.com.cn
Platform information
cation
provided.
TF Securities, China Securities, Zhongtai
Securities, Guosen Securities, CITIC
Securities, CICC Securities, Huachuang
Securities, Guotai Junan Securities, Shenwan
Hongyuan Securities, Changjiang Securities,
Learn about the
2022/4/20 Telephon Guosheng Securities, Southwest Securities,
Conference operation of the
e Organizati Sinolink Securities, Citi Medium- and Small- http://www.cnin
2022/4/21 room of the Company; no
communi ons cap Stock, Haitong Securities, Great Wall fo.com.cn
2022/4/22 Company information
cation Securities, Everbright Securities, Huatai
provided.
Securities, Minsheng Securities, Pacific
Securities, Dongxing Securities, Wanlian
Securities and Soochow Securities.TF
Securities, Yinhua Fund Management, China
Universal Asset Management, Shenzhen
57
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
Qianhai Dengcheng Asset Management,
Foresight Fund, Genharmony Capital,
Shenzhen Zhicheng Haiwei Asset
Management, Penghua Fund, Rays Capital,
Guotai Asset Management, Western Leadbank
FMC, Vontobel Asset Management Asia
Pacific Limited, Sinosafe Assets, First-Trust
Fund Management, BOSC Asset, BOCI
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 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 operation of the
Field Organizati http://www.cnin
2022/4/27 room of the Fund Management, Chuangfu Business Company; no
survey ons fo.com.cn
2022/4/28 Company Investment Management, Valuebed Capital, information
Sinolink Securities provided.
ABERDEEN, BARING, MANULIFE,
Learn about the
Telephon FULLGOAL, SUN BRIDGE CAPITAL,
Conference operation of the
e Organizati MIGHTY DIVINE, PINPOINT, OASIS, http://www.cnin
2022/5/6 room of the Company; no
communi ons CITI, BlackRock Asset Management, T.Rowe fo.com.cn
Company information
cation Price Group, Guosen Securities, Mondrian
provided.
Investment Partners Ltd., CICC Securities.
2022/5/16 CICC Asset Management, Greenwoods Asset Learn about the
Conference Management, Teng Yue Partners Master operation of the
2022/5/17 Field Organizati http://www.cnin
room of the Fund, CICC Securities, Perseverance Asset Company; no
2022/5/18 survey ons fo.com.cn
Company Management, Yinhua Fund Management, TF information
2022/5/19 Securities, GF Securities. provided.
AEGON-INDUSTRIAL Fund Management,
TF Securities; Industrial Securities, HFT
Investment Management, CITIC Securities,
2022/5/23
CITIC Asset Management; Shenwan Learn about the
2022/5/24 Conference Hongyuan Securities, Ping An Fund, Dacheng operation of the
Field Organizati http://www.cnin
2022/5/25 room of the Fund, Baoying Fund, TF Securities, E Fund Company; no
survey ons fo.com.cn
Company Management; Penghua Fund; Bank Of information
2022/5/26
Communications Schroder Fund provided.
2022/5/27
Management; Citibank, TAIKANG, SPRING
CAPITAL, OP CAPITAL, AMUNDI,
SAMSUNG, OASIS, NIGHTY ONE,
58
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
PRINCIPAL, ABERDEEN, LAZARD, NEW
SILK ROAD, 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; Learn about the
2022/5/30 Conference Huatai Baoxing Fund Management; Penghua operation of the
Field Organizati http://www.cnin
2022/5/31 room of the Fund; Taikang Asset; Perseverance Asset Company; no
survey ons fo.com.cn
2022/6/1 Company Management; First State Cinda Fund information
Management, Baoying Fund. provided.
Learn about the
Conference operation of the
2022/6/14 Field Organizati http://www.cnin
room of the BlackRock Fund, Fidelity Investments Company; no
2022/6/16 survey ons fo.com.cn
Company information
provided.
Learn about the
Conference operation of the
Field Organizati Western Securities, Huatai Securities and http://www.cnin
2022/7/11 room of the Company; no
survey ons Mingya Fund fo.com.cn
Company information
provided.
TF Securities, China Securities, Zhongtai
Securities, Guosen Securities, CITIC
Securities, CICC, Huachuang Securities,
Guotai Junan Securities, Haitong Securities,
Huatai Securities, Shenwan Hongyuan
Securities, Changjiang Securities, Guosheng
Securities, Sinolink Securities, Everbright
Securities, Soochow Securities, Southwest
Securities, Citibank, Wanlian Securities,
Great Wall Securities, Huachuang Securities,
Aegon-Industrial Fund, First State Cinda
Fund Management, Rongtong Fund
Management, TENON Securities Dealing
Department, Harvest Fund, Liuren Asset
Understand the
Management, Zhengyuan Investment, Orient
Company's
Telephon Securities Dealing Department, Industrial
Conference business situation
2022/7/26 e Organizati Securities, Oriental Alpha Fund, HSBC http://www.cnin
room of the and strategic
2022/7/27 communi ons Jintrust Fund, SanGeng Fund, Hengyue Fund, fo.com.cn
Company planning (no
cation Perseverance Asset Management, Pacific
information
Investment Management, point 72, CPIC
available)
Fund, SPDB-AXA Fund, BOSC Asset,
Purekind Fund Management, Citic-prudential
Fund Management, Bank of Communications
Schroder Fund, Shanghai Fuyi Investment
Management, BOSC Asset, Vontobel,
SanGeng Fund, Zundao Asset Management,
Bohai Huijin Securities Asset Management,
Neuberger Berman Fund, Hengtai Securities,
Guotai Junan Securities Asset Management,
Senjin Investment, China International Fund,
Ping An Asset, Nuode Asset, Southwest
Securities Asset Management, Guangdong
Development Fund, Fengpei Investment,
Taiping Fund, Gold Wide Asset, Zheshang
59
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
Securities, Great Wall Fund, Guodu Securities
(proprietary), Sunrise Asset, Shanghai
Tongben Investment Management Center,
Xuanyuan Investment, Mingya Fund,
Greenwoods, Taiping Fund, PHcapital,
Minmetals Securities, Huachuang Securities
(proprietary), Generali China, Western
Leadbank FMC, Hotland Innovation Asset
Management, Lion Fund Management, China
Securities, Everbright Securities, PICC, China
Southern Asset Management, China Life,
Focusbridge, Guosen Securities Investment
Department, Chasing Securities, KF Fund,
Xitai Investment, New China Asset, Lingzhan
Private Equity, Huafu Securities (Asset
Management), Ren Bridge, Asset
Management Department of Essence
Securities, Mutual Fund, Soochow Asset,
Essence Securities, Yong An Capital,
Zhongrong Fund, TF Securities, Sinosafe
Assets, KingTower Asset Management,
UCAN Fund, Ducheng Investment,
Yuancheng Investment, FIL Investments
International, Panjing Investment, Jinjiang
Heming Asset Management, Zhengyuan
Investment, Tianlang Asset Management,
Pengyuan Capital, Point72, Huashan Capital,
Ping An Fund, Liushi Private Equity Fund,
Shanghai Silver Leaf Investment, Xingjian
Asset Management, Tianshi Kaiyuan Fund,
Lingze Investment, Tangrong Capital,
Guohua Life, Bank of China Investment
Management, CPIC Fund, Everbright
Securities (proprietary), Honghua Capital,
CICC Asset Management, Ningquan Asset
Management, Chenghuai Investment,
StepStone Group, Topsperity Asset
Management, HFT Investment Management,
Beijing Ding Investment, CCB Principal
Asset Management, SPDB-AXA Fund, Orient
Securities, Naying Private Equity Fund, Fuge
Investment, Bank of Communications
Schroder Fund, Wanjia Asset, Sino Life Asset,
Shanghai South Land Investment
Management, Haitong Securities, Bosera
Funds, Beijing Ding Investment, Qinhe
Capital, Chongshan Investment, Perseverance
Asset Management, Asset Management
Department of Huarong Securities, Fuanda
Fund Management, Beijing Yihejiufu
Investment Management, Guotai Asset
Management, Industrial Securities
(proprietary), Huafu Securities, EXC Capital
Management, Guotai Junan Securities Asset
Management, Heyong Investment
Management, Foresight Fund, Lingze
Investment, New China Pension Co., Ltd.,
China Wealth Management Co., Ltd.,
60
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
HillView Capital, Shanghai Great Abundance
Year Asset Management, CMS, Truvalue
Asset Management, Fortune Asset,
Gemboom, Gongqingcheng Willpower
Private Equity Fund, Pingan Asset
Management, Shenzhen Qianhai Dengcheng
Asset Management, Hao Sheng Investment,
Tian Hong Asset, CCB Pension, BOC
International (China) Co., Ltd., ABC Wealth
Management, Happy Life, Qianti Investment
Management, JT Asset Management, Ping An
Fund, Assets Management Department of
Industrial Bank, Xizang Hezhong Yisheng
Investment, Teng Yue Partners LP, Green
Fund, Hony Goldstream Capital, Focusbridge
Investment, Dealing Department of China
Merchants Securities, BOSC Asset, JINK,
Lifan Investment, Topfund, Shenzhen
Zhicheng Haiwei Asset Management, Shinian
Investment, Harvest Fund, Infore Capital,
Springs Fund, Zhonggeng Fund Management,
Xintai Insurance, Chinalin Securities,
Hongdao Investment, Gaoyi Investment,
Taiping Pension, Tiancheng Investment,
Parantoux Capital, Yingdong Private Equity
Fund, Purekind Fund Management, Fullgoal
Fund Management, Lishi Asset Management,
Everbright Pramerica Fund, Asset
Management Department of Dongguan
Securities, Hotland Innovation Asset
Management, Hongta Hotland Fund,
Shanghai Milestone Asset Management,
Sinolink Securities (proprietary), Quanxi
Investment, RiceBank, Xiansheng, Rays
Capital, Lifan Investment, Zeming
Investment, Zhongtai Securities (proprietary),
Jianyin Investment, CGB Wealth
Management, and Etock Capital
China Securities, Yinhua Fund Management,
Taikang Asset, Gao Hua Securities, TF
Securities, Penghua Fund, Zhongtai
Securities, China Southern Asset
Management, Guangdong Development
Fund, Shanghai South Land Investment
Management, TF Securities, KingTower Asset
Understand the
Management, Harvest Fund, Liuren Asset
Company's
Telephon Management, Shufa Private Equity Fund,
2022/8/2 Conference business situation
e Organizati Franklin Templeton Investments, BOSC http://www.cnin
2022/8/3 room of the and strategic
communi ons Asset, Taikang Asset, Pengchengjishi fo.com.cn
2022/8/4 Company planning (no
cation Investment, Shanghai Panwen, Shanghai
information
Panwen, RaysCapital, Fujian Zeyuan Asset
available)
Management, Shanghai Xiaoyu Investment,
Honghua Capital, Sino Life Asset, Founder
Fubon Fund, Tangrong Capital, Great Wall
Fund, China Asset Management, Tian Hong
Asset, Shan Shi Fund, Everbright Securities
(proprietary), Zhongwei Capital, Assets
Management Department of Industrial Bank,
61
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
CICC Asset Management, Beijing Ding
Investment, Sinosafe Assets, China Wealth
Management Co., Ltd., Fullgoal Fund
Management, Xingyuan Capital, TF
Securities, Mingya Fund, HFT Investment
Management, Nanhua Fund, CCB Trust, Yan
Hang Investment, Springs Fund, Chenghuai
Investment, Jing'an Investment, CPIC Fund,
Everbright Securities (proprietary), Essence
Securities, Tianshi Kaiyuan Fund, China
International Fund, Yimi Fund, Baoying
Fund, RiceBank, Hengtai Securities, Shinian
Investment, Hongtai Investment, Bank of
Communications Schroder Fund, 2PVCapital,
JINK, Xuanyuan Investment, Cinda Fund,
Changjun Capital Investment, Asset
Management Headquarters of Pacific
Securities, China Life AMP Asset, Hangzhou
Xingjian Asset Management, Pengyuan Asset
Management, Jingjing Investment, HFT
Investment Management, Hunan Yuancheng
Investment, CQ Capital, Western Leadbank
FMC, Truvalue Asset Management, Yan Hang
Investment, Taiping Fund, Knight Investment,
Yuhe Asset, New China Pension Co., Ltd.,
Purekind Fund Management, Hongta
Securities Dealing Department, Yuanfeng
Investment, Yinhua Fund Management,
Xiansheng, Fengpei Investment, HZBank
Wealth Management, Linghui Investment,
Dajia Baoxian, Everbright Pramerica Fund,
Yunxi Fund, Rongtong Fund Management,
Topsperity Fund, China Southern Asset
Management, Chang Xin Asset Management,
China Universal Asset Management, Lu
Shang Private Equity, Xitai Investment,
Hotland Innovation Asset Management, Sun
Life Enverbright Asset Management,
Sunshine Asset Management, Ruiteng
(Pingyang) Private Equity Fund, SPDB-AXA
Fund, DIB Asset Management (Zhuhai) Co.,
Ltd., Chinalin Securities, CCB Pension Asset
Management, CICC Asset Management, CGB
Wealth Management, Bosera Funds, Fengpei
Investment, Yunnan International Trust,
Wanshan Capital, Bohai Huijin Securities
Asset Management, and Cenerali China
Understand the
Company's
Telephon
Conference business situation
e Organizati http://www.cnin
2022/8/8 room of the Wellington Management and strategic
communi ons fo.com.cn
Company planning (no
cation
information
available)
2022/8/17 Telephon Zhongtai Securities, E Fund Management, Understand the
Conference
2022/8/18 e Organizati CMS, Teng Yue Partners Master Fund, Wells Company's http://www.cnin
room of the
2022/8/19 communi ons Fargo Funds Management, Eastmoney business situation fo.com.cn
Company
2022/8/21 cation Securities, Harvest Fund and strategic
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Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
planning (no
information
available)
TF Securities, First-Trust Fund Management,
Harvest Fund, Yimi Fund, E Fund
Management, Shanghai Silver Leaf
Investment, Lingze Investment, Topsperity
Asset Management, Danyi Investment, Fujian
Zeyuan Asset, Yingli Investment, Bosera
Funds, Perseverance Asset Management,
Changle Hui Capital, Baoying Fund,
Sunshine Asset Management, KingTower
Asset Management, CITIC Securities,
Shanghai Silver Leaf Investment, Fuge
Investment, China Securities
(proprietary),China Wealth Management,
Winsure Assets Management, Life Insurance,
Franklin Templeton Investments, Panwen
Investment, Hexie Huiyi Asset Management,
Chaser Asset Management, Minsheng Royal
Fund Management, C. Fund, CHERAMI
Investment, Topsperity Securities
(proprietary), Guodu Securities (proprietary),
Zhongsheng Chenjia Wealth, CITIC AMC,
China Post Life Insurance, Guangzhou
Xinbaixin Fund, Broad Fund, Lingjiu Private
Equity, Honghua Capital, Millennium Capital,
Chenghuai Investment, Hua An Fund Understand the
Management, Zhonghai Fund, CGB Wealth Company's
Telephon
Conference Management, Purekind Fund Management, business situation
e Organizati http://www.cnin
2022/8/21 room of the Xinghua Fund, MegaTrust, Beijing Ding and strategic
communi ons fo.com.cn
Company Investment, Hengtai Securities (retail), DH planning (no
cation
Fund Management, PV Capital, Barings information
Investment, Tianshi Kaiyuan Fund, Qianhe available)
Capital, New China Fund, Citic-prudential
Fund Management, Value Partners Limited,
Orient Securities, Fujian Zeyuan Asset,
Oriental Alpha Fund, Golden Eagle, Jianghai
Securities Asset Management Departmen,
Hongnuo Fund, Haitong Securities
(proprietary), Baoying Fund, Merit Fund,
Xintai Insurance, Jingheng Investment,
Western Leadbank FMC, Everbright
Securities (proprietary), Huachuang Securities
Dealing Department, Tian Hong Asset, CICC
Asset Management, Janice Neuberger
Berman, Taiping Fund, Goldman Sachs ICBC
Wealth, Fenglan Assets Management, Yiheng
Investment, New China Assets Management,
Industrial Securities (proprietary),Guangdong
Development Fund, and Mojing Private
Equity Fund
2 Funding Capital Management, Alluvium
Asset, Lombarda China Fund Management,
Zhong An Insurance, Shinian Investment,
Springs Fund, Guangdong Development
Fund, Willing Capital Management Limited,
New China Fund, Pin Point Investment,
63
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
Taiping Pension, Vanho Securities, Q. M.
Fortune, Essence Asset Management,
Huarong Fund, Fargo Funds Management,
Mingya Fund, RiceBank, SPDB-AXA Fund,
Shanghai South Land Investment
Management, Greenwoods Asset
Management, China Southern Asset
Management, Truvalue Asset Management,
Junyi Asset Management, Black Rock Fund,
Yunnan International Trust, Maxwealth Fund
Management, China Asset Management,
Shanghai Tongben Investment Management
Center, Chengyi Investment, Founder Fubon
Fund, Qingli Investment, Invesco Great Wall
Fund, Shanghai Silver Leaf Investment, CCB
Trust, China Life AMP Asset Management,
Asset Management Department of Dongguan
Securities, ZheShang Fund Management,
Rongtong Fund Management, First-Trust
Fund Management, Heqing Investment,
Panjing Investment, Fuge Investment, Assets
Management Department of Industrial Bank,
HSBC Jintrust Fund, and Guotai Asset
Management
TF Securities, Taiju Private Equity Fund,
CITIC Securities Asset Department, Guodu
Securities, Lequ Investment, Liuren Asset
Management, Taikang Pension, E Fund
Management, Parantoux Capital, JX Assest
Management, KingTower Asset Management,
Yiheng Investment, Yimi Fund, Shanghai
Jujin Investment, HFT Investment
Management, Honghua Capital, Parantoux,
Shanghai Silver Leaf Investment, Pengyang
Asset Management, Topsperity Asset
Management, Eastern Smart Rock
Investment, Haitong Securities, JINK, Dajia
Baoxian, Springs Fund, Maxwealth Fund
Understand the
Management, China Re Asset Management,
Company's
Telephon Duyi Assest Management, Neuberger
Conference business situation
e Organizati Berman, Industrial Securities (proprietary), http://www.cnin
2022/9/25 room of the and strategic
communi ons Qingli Investment, Pengyuan Capital, PKU fo.com.cn
Company planning (no
cation Founder Life, Shanghai SNOWBALL Capital
information
Management, Baoying Fund, Chenghuai
available)
Investment, Top Investment, Harvest Fund,
Mufenghe Private Equity Fund, Qindao
Capital Management, Huayin Fund,
Millennium Capital, Souzhou Asset
Management, Shanghai South Land
Investment Management, Longwin Asset
Management, Huarong Fund, Everbright
Securities (proprietary), CITIC Capital,
Rongtong Fund Management, ABC Wealth
Management, Heng An Standard Life,
Esperon Capital, Dacheng Fund, Chinalin
Securities, China Life AMP Assest
Management, Hangzhou Qianlu Investment，
PICC Asset Management, CPIC Fund, Fuge
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Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
Investment, Amundi BOC Wealth
Management, Hangzhou Jinhualun Asset
Management, Shenjiu Asset Management,
China Post Life Insurance, and Jingwei
Capital
Chenghuai Investment, Citibank, Fidelity
Investments, Springs Capital, Citibank, CS
Private Bank Singapore, Cathay Life
Insurance, Dai-ichi Life Insurance Company,
Dymon Asia Capital (Singapore), Green Understand the
Court Management Holding, HSBC Global Company's
Telephon
2022/9/27 Conference Asset Management USA, Impax Asset business situation
e Organizati http://www.cnin
2022/9/28 room of the Management Limited, Lazard FreresManulife and strategic
communi ons fo.com.cn
2022/9/30 Company Asset Mgmt (HK) Ltd., Neuberger & planning (no
cation
Berman, Oasis Management Company Ltd., information
Point72 Asset Management, Rays Capital available)
Partners Limited, Samsung Investment Trust,
Tairen Capital Limited, UBS AM (US),
eFusion Capital, Eastmoney Securities,
Greenwoods Asset Management
TF Securities, TF Securities Asset
Management, Hengtai Securities, CCB
Principal Asset Management, Yimi Fund,
Huatai Securities, Binyuan Capital, FIL
Investments International, Panwen
Investment Management, Shanghai Jujin
Investment, UCAN Fund, Tianhong Asset
Management, Milestone Asset Management,
Yuhe Asset, China Life AMP Asset
Management, Pengyuan Capital, Tianchong
Capital, Taikang Pension, Everbright
Securities (proprietary), SPDB-AXA Fund,
CITIC AMC, Essence Fund, Point72, Harvest
Fund, Dajia Baoxian, CMS, Lingze
Investment, Guodu Securities, Honghua
Capital, Xiansheng, Jingheng Investment, Understand the
Fengpei Investment, Zhonggeng Fund Company's
Telephon Management, CCB Life Asset Management, operations,
Conference
e Organizati Haijin (Dalian) Investment, China Asset financial http://www.cnin
2022/10/27 room of the
communi ons Management, Taiping Fund Management, situation, and fo.com.cn
Company
cation Rongtong Fund, JT Asset Management, BOC strategic planning
International (China) Co., Ltd., Rongtong (no information
Fund, CPIC Fund, Guotai Junan Securities available)
Asset Management, Mingya Fund, Lion
Fund, Jiafu Hangyuan Private Equity Fund,
CICC Asset Management, Aegon-Industrial
Fund, Southern Asset Management, T. Rowe
Price, Neuberger Berman, Bosera Funds,
Qinchen Private Equity Fund, Penghua Fund,
RiceBank, Sichuan Jintuo Investment,
RICHCO, Sealand Securities (proprietary),
Huatai Securities, GTS Fund, ABC Wealth
Management, Bearing no (Shanghai)
Investment, China Merchants Fund, China
Industrial International Trust, Matthews Asia,
China Capital Management, Boze Asset
Management, China Assurities, Zhongtai
Securities, Guosen Securities, CITIC
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Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
Securities, CICC, Huachuang Securities,
Guotai Junan Securities, Haitong Securities,
Huatai Securities, Shenwan Hongyuan
Securities, Changjiang Securities, Sinolink
Securities, Soochow Securities, Everbright
Securities, China Galaxy Securities, Western
Securities, Citibank, and Northeast Securities
TF Securities, Industrial Securities,
GoldStateSecurities, Soochow Securities, Understand the
Lombarda China Fund Management, Cinda Company's
Conference Fund, Mingya Fund, Beijing Ding business situation
2022/11/25 Field Organizati http://www.cnin
room of the Investment, Upright Asset, Beijing Ding and strategic
2022/11/28 survey ons fo.com.cn
Company Investment, Sino Life Asset, Hang Seng planning (no
Qianhai Fund Management, Rays Capital, information
Huashan Capital, Haojun Investment, Shansi available)
Investment, Yinhua Fund Management
Understand the
Company's
Conference Northeast Securities, Penghua Fund, Peng business situation
2022/12/14 Field Organizati http://www.cnin
room of the Zhaohui, Guosen Securities, E Fund and strategic
2022/12/15 survey ons fo.com.cn
Company Management, Maxwealth Fund Management planning (no
information
available)
66
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
Section IV Corporate Governance
I. Basic status of corporate governance
Since its listing, the Company revised Articles of Association, Rules of Procedure of General Meeting of
Shareholders, Rules of Procedure of the Board of Directors, Rules of Procedure of the Board of Supervisors, and
other rules and regulations, and established Capital-raising Management System, Management System for Public
Information Disclosure and a series of corporate governance system in strict accordance with Company Law,
Securities Law, Code of Corporate Governance for Listed Companies, Rules Governing the Listing of Shares on
Shenzhen Stock Exchange, and requirements of relevant laws and regulations. During the reporting period, the
corporate governance was in line with the requirements of the Code on the Governance of Listed Companies and
other normative documents on corporate governance issued by the CSRC.
1. Shareholders and General Meeting of Shareholders: The Company convenes the General Meeting of
Shareholders in strict accordance with the Rules of Procedure of General Meeting of Shareholders, Rules for the
General Meeting of Shareholders of Listed Companies, and other provisions and requirements of laws and
regulations, which can ensure that all shareholders, especially minority shareholders, enjoy equal status and fully
exercise their rights.
2. Relationship between controlling shareholders and listed companies: Controlling shareholders regulate
their behavior, and enable to exercise their rights and assume corresponding obligations pursuant to the law in
strict accordance with laws and regulations such as the Securities Law, Code of Corporate Governance for Listed
Companies and Articles of Association. The controlling shareholder of the Company is an individual who does not
have any other investment projects and has not directly or indirectly intervened in the Company's decision-making
and operating activities beyond the Company's General Meeting of Shareholders. The Board of Directors, the
Board of Supervisors and the corresponding departments of the Company can operate normally and have
independence.
3. Directors and the Board of Directors: All directors of the Company carry out their work in accordance with
laws and regulations such as the Rules of Procedure of the Board of Directors and the Rules for Independent
Directors of Listed Companies, attend relevant meetings seriously, actively participate in training, and become
familiar with relevant laws and regulations. The Company strictly elects directors in accordance with the
recruitment procedure stipulated in the Articles of Association. Currently, the Company has 3 independent
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Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
directors and 6 non-independent directors, and the composition of the Board of Directors meets the requirements
of laws, regulations, and the Articles of Association.
4. Supervisors and Board of Supervisors: The Board of Supervisors of the Company is strictly established in
accordance with relevant provisions such as the Company Law and the Articles of Association. The Company's
supervisors are able to conscientiously fulfill their duties in accordance with the requirements of the Rules of
Procedure of the Board of Supervisors, supervise the Company's financial situation and the legality and
compliance of major matters with integrity and responsibility, and safeguard the legitimate rights and interests of
the Company and its shareholders.
5. Performance evaluation and incentive and restraint mechanism: The Company has established a series of
performance evaluation and incentive and restraint mechanisms, which are open and transparent in the
appointment of senior executives and in accordance with relevant laws and regulations.
6. Relevant stakeholders: The Company can fully respect and safeguard the legitimate rights and interests of
relevant stakeholders, and actively cooperate with stakeholders to jointly promote the sustainable and healthy
development of the Company.
7. Information disclosure and transparency: The Company conscientiously performs the obligation of
information disclosure in accordance with relevant laws and regulations such as the Articles of Association, the
Stock Listing Rules of Shenzhen Stock Exchange, and the Administrative Measures for Information Disclosure of
Listed Companies. The Company designates Securities Times and http://www.cninfo.com.cn as the newspaper
and website for its information disclosure, and ensures the timeliness and accuracy of its information disclosure.
Is there any significant difference between the actual situation of corporate governance and laws, administrative
regulations and the regulations on corporate governance of listed companies issued by the CSRC?
□ Yes No
No.
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Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
II. The independence of the Company relative to its controlling shareholders and actual
controllers in ensuring the Company's assets, personnel, finance, institutions, business, and
other aspects
The controlling shareholder of the Company is a natural person and has no other investments. The Company
is completely separated from its controlling shareholders in terms of business, personnel, assets, finance, etc. The
Company's production and operation are stable and can operate independently and normatively.
1. Business independence: The Company's businesses are independent of its controlling shareholders and the
Company has a complete and independent production, supply, and sales system, without relying on shareholders
or any other related parties.
2. Personnel independence: The Company has an independent workforce and has established a sound
personnel management system. The chairman, general manager, deputy general manager, secretary of the Board of
Directors, CFO and other senior executives of the Company work full-time in the Company and receive
compensation. They have not held any positions other than directors or supervisors in shareholder entity holding
more than 5% of the Company's equity and their subsidiaries, nor have they held any positions in other companies
with the same or similar business as the Company. Independent personnel management.
3. Asset independence: The Company has independent production and business premises, production systems,
supporting facilities, land usage right, and property ownership, and there is no sharing with controlling
shareholders.
4. Institutional independence: The Company has established a sound organizational system that can operate
independently. There is no subordinate relationship with the controlling shareholder.
5. Financial independent: The Company has independent financial accounting department, establishes
independent accounting system and financial management system, and makes independent financial decisions in
accordance with relevant accounting system. The Company has separate bank accounts, and conducts independent
tax declaration and performs payment obligations according to law.
III. Competition in the same industry
□ Applicable Not applicable
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IV. Information on the annual and extraordinary general meetings of shareholders held
during the reporting period
1. Information on the General Meeting of Shareholders during the reporting period
Investor
Meeting Meeting Date of
Meeting type participation Meeting resolution
session date disclosure
ratio
The 1st
Extraordinary Extraordinary
Deliberated and passed the Proposal on Implementation
General General
31.74% 2022/1/24 2022/1/25 Mode, Subject and Location of Changes in Some
Meeting of Meeting of
Capital-raising Projects;
Shareholders Shareholders
in 2022
1. Deliberated and passed the Proposal on Annual Report
2021 and Abstract;
2. Deliberated and passed the Proposal on 2021 Final
Financial Report;
3. Deliberated and passed the Proposal on 2021 Profit
Distribution Plan;
4. Deliberated and passed the Proposal on 2021 Work
Report of the Board of Directors;
5. Deliberated and passed the Proposal on 2021 Work
Report of the Board of Supervisors;
6. Deliberated and passed the Proposal on Remuneration
of Company Directors in 2021;
7. Deliberated and passed the Proposal on Remuneration
of Company Supervisors in 2021;
8. Deliberated and passed the Proposal on Application
for Comprehensive Credit Line from Banks by the
Company and Its Subsidiaries in 2022;
9. Deliberated and passed the Proposal on Renewing the
Employment of Audit Institution in 2022;
Annual 10. Deliberated and passed the Proposal on Spinning off
2021 Annual
General Shenzhen YAKO Automation Technology Co., Ltd.
General 31.27% 2022/4/12 2022/4/13
Meeting of (Subsidiary) to List on the Growth Enterprise Market of
Meeting
Shareholders Shenzhen Stock Exchange in Compliance with Relevant
Laws and Regulations;
11. Deliberated and passed the Proposal on Spinning off
Shenzhen YAKO Automation Technology Co., Ltd.
(Subsidiary) for the Initial Public Offering of RMB
Ordinary Shares (A Shares);
12. Deliberated and passed 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. Deliberated and passed 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. Deliberated and passed the Proposal on Spinning off
Shenzhen YAKO Automation Technology Co., Ltd.
(Subsidiary) to List on the Growth Enterprise Market of
Shenzhen Stock Exchange and to Safeguard the Legal
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Rights and Interests of Shareholders and Creditors;
15. Deliberated and passed the Proposal on Maintaining
Independence and Sustainable Operation Abilities;
16. Deliberated and passed the Proposal on the Shenzhen
YAKO Automation Technology Co., Ltd. With Relevant
Standard Operation Capacities;
17. Deliberated and passed the Proposal on the
Explanation 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. Deliberated and passed 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. Deliberated and passed the Proposal on the Purpose,
Commercial Reasonableness, Necessity and Feasibility
Analysis of the Spin-off;
20. Deliberated and passed the Proposal on Repurchase
and Cancellation of Some Restricted Stocks from
Restricted Stock Incentive Plan in 2021.
1. Deliberated and passed the Proposal on Signing the
Supplementary Agreement II to the Investment
Agreement by the Wholly-owned Subsidiaries of the
Company;
The 2nd 2. Deliberated and passed the Proposal on
Extraordinary Extraordinary Implementation Location and Mode of Changes in Some
General General Capital-raising Projects Again;
29.04% 2022/9/5 2022/9/6
Meeting of Meeting of 3. Deliberated and passed the Proposal on Repurchase
Shareholders Shareholders and Cancellation of Some Restricted Stocks from
in 2022 Restricted Stock Incentive Plan in 2021;
4. Deliberated and passed the Proposal on Changing
Registered Capital of the Company;
5. Deliberated and passed the Proposal on Revising
Articles of Association.
The 3rd 1. Deliberated and passed the Proposal on Adjusting
Extraordinary Extraordinary Corporate-level Performance Evaluation Indicators of
General General Restricted Stock Incentive Plan in 2021;
27.38% 2022/10/10 2022/10/11
Meeting of Meeting of 2. Deliberated and passed the Proposal on Changing the
Shareholders Shareholders Registered Address of the Company and Revising the
in 2022 Articles of Association.
2. The preferred shareholders with restored voting rights request to convene an Extraordinary General
Meeting of Shareholders
□ Applicable Not applicable
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V. Directors, supervisors and senior executives
1. Overview
Number
Number
Number of of
of Number of Reasons
shares held additional
Starting Ending shares shares held for
at the shares Other
Position date of date of reduced at the end increase
Name Position Gender Age beginning held in changes
status term of term of in the of the or
of the the (shares)
office office current period decrease
period current
period (shares) of shares
(shares) period
(shares)
(shares)
Wu Not
Chairman Incumbent Male 58 2011/08/29 2023/09/13 212,008,715 0 0 0 212,008,715
Yongqiang applicable
Not
Ji Shuhai Director Incumbent Male 61 2011/08/29 2023/09/13 27,318,642 0 0 0 27,318,642
applicable
The third
exercise
period of
Director
2018
Zheng and deputy
Incumbent Male 57 2011/08/29 2023/09/13 6,016,970 0 0 320,000 6,336,970 stock
Sibin general
option
manager
met the
exercise
conditions
The third
exercise
period of
Director
2018
and deputy
Ma Wei Incumbent Male 49 2011/08/29 2023/09/13 8,550,934 0 0 400,000 8,950,934 stock
general
option
manager
met the
exercise
conditions
The third
exercise
period of
2018
Peng
Director Incumbent Male 51 2011/08/29 2023/09/13 4,656,900 0 0 480,000 5,136,900 stock
Ganquan
option
met the
exercise
conditions
Not
Wu Hang Director Incumbent Male 39 2014/09/12 2023/09/13 0 0 0 0 0
applicable
Huang Independent Not
Incumbent Male 65 2020/09/14 2023/09/13 0 0 0 0 0
Yuegang director applicable
Hua Independent Not
Incumbent Female 45 2017/09/09 2023/09/13 0 0 0 0 0
Xiuping director applicable
Li Independent Not
Incumbent Male 57 2021/03/31 2023/09/13 0 0 0 0 0
Xumeng director applicable
Deputy The third
Wen General exercise
Incumbent Female 49 2011/08/29 2023/09/13 2,531,127 0 0 240,000 2,771,127
Zhaohui Manager period of
and 2018
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Secretary of stock
the Board option
of Directors met the
exercise
conditions
The third
exercise
period of
Chief 2018
Xiang Wei financial Incumbent Male 46 2019/01/10 2023/09/13 604,500 0 0 160,000 764,500 stock
officer option
met the
exercise
conditions
Dai Not
Supervisor Incumbent Female 47 2011/08/29 2023/09/13 319,612 0 0 0 319,612
Huijuan applicable
Kang Not
Supervisor Incumbent Male 39 2014/08/21 2023/09/13 0 0 0 0 0
Weiquan applicable
Chen Not
Supervisor Incumbent Male 45 2017/02/15 2023/09/13 0 0 0 0 0
Jinzhou applicable
Total -- -- -- -- -- -- 262,007,400 0 0 1,600,000 263,607,400 --
Is there any resignation of directors and supervisors during their term of office and dismissal of senior executives
during the reporting period
□ Yes No
Changes in directors, supervisors and senior executives
□ Applicable Not applicable
2. Employment
Educational background, main working experience and major responsibilities of existing directors, supervisors,
and senior executives of the Company
(I) Member of the Board of Directors
Wu Yongqiang, male, born in 1965, holds a master's degree and has no right of permanent residence abroad.
He is a local leading talent recognized by Shenzhen City. He has won the titles "Shenzhen Young Science and
Technology Leader" awarded by Shenzhen Municipal Government and "Top Ten Outstanding Young People" in
Nanshan District, Shenzhen. He served successively as lecturer of Harbin Institute of Technology and vice
chairman of the Company. Now he serves as chairman of the Board of Directors of the Company, chairman of the
Board of Directors of Shenzhen Topband Software Technology Co., Ltd., executive director of Shenzhen Topband
Battery Co., Ltd., executive (managing) director of Shenzhen Hongru Investment Management Co., Ltd., partner
of Shenzhen Hongru Investment Enterprise (Limited Partnership), executive director of Shenzhen Yankai Electric
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Technology Co., Ltd., executive director and general manager of Ningbo Topband Intelligent Control Co., Ltd.,
and director of Topband (Hong Kong) Co., Ltd.
Zheng Sibin, male, born in 1966, holds a master's degree and is an accountant without permanent residency
abroad; He used to be the office director and vice factory director of Zhejiang Songyang Brewery, and the finance
supervisor, manager of finance department and CFO of Nam Tai Electronics (Shenzhen) Co., Ltd.; He is now the
director, deputy general manager and general manager of business division of the Company, a supervisor of
Shenzhen Topband Software Technology Co., Ltd., and a supervisor of Chongqing Topband Industrial Co., Ltd.
Ma Wei, male, born in 1974, holds a bachelor's degree without permanent residency abroad; He used to be
the technical development engineer and general manager of Shenzhen Huafa Electronics Co., Ltd.; He is now the
director, deputy general manager and general manager of business division of the Company.
Ji Shuhai, male, born in 1962, holds a master's degree and is a senior engineer without permanent residency
abroad; He used to be the engineer, chairman and general manager of Guangzhou Wanbao Electrical Appliance
Group Co., Ltd.; He is now a director of the Company, and the director and general manager of Shenzhen Sowin
Precision Machine Tool Co., Ltd.
Peng Ganquan, male, born in 1972, holds a master's degree without permanent residency abroad; He used to
be the engineer, development engineer of electrical business division, technical director and deputy general
manager of Hunan Instrument and Meter Factory; He is now a director of the Company, the general manager and
executive director of Shenzhen Allied Control System Co., Ltd., and a director of TOPBAND INDIA PRIVATE
LIMITED.
Wu Hang: Male, born in 1984, master's degree. He has no right of permanent residence abroad; He once
serves as design conversion engineer of Shenzhen Mindray Bio-Medical Electronics Co., Ltd. Now he serves as
director of the Company.
Huang Yuegang, male, born in October 1958, graduated from Jilin University of Finance and Economics
with a bachelor's degree and is a senior accountant. He once served as deputy director of the office and deputy
director of the Publicity Department of the Party Committee at Jilin University of Finance and Economics, chief
financial officer of Shenzhen Far East Hotel Co., Ltd., credit director of Shenzhen Branch of Guangfa Bank,
president of Zhenhua Road Sub-branch, executive president of Shenzhen Golden Lighting (Group) Co., Ltd.,
chairman of Dalian Changxing Industrial Co., Ltd., deputy general manager of Tianjin Guangxia Real Estate
Development Co., Ltd., deputy general manager of Shenzhen Zhongnan Hotel (Group) Management Co., Ltd. and
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president of Shenzhen Binji Industrial Group Co., Ltd.He is currently an independent director of Guizhou Tyre
Co., Ltd. and Shenzhen Aoya Design Co., Ltd.
Hua Xiuping, female, born in 1978, holds a doctor's degree without permanent residency abroad; She used to
be a researcher at China Finance 40 Forum, a visiting scholar at School of Oriental and African Studies of
University of London funded by the British Academy, a guest editor at European Journal of Finance, and a part-
time vice president and partner at Junrun Capital. She is currently an independent director of the Company,
professor of finance and doctoral supervisor in Nottingham University Business School (China), and an
independent director of the Bank of Dongguan Co., Ltd., Ningbo Fubang Jingyi Group Co., Ltd. and Ningbo
Yuyao Rural Commercial Bank Co., Ltd.
Li Xumeng, male, born in 1966, Chinese nationality, holds a doctor's degree in business management
without permanent residency abroad. He used to be a consultant at Beijing Shangheng Zhiben Consulting Co., Ltd.
and a consultant at Shanghai Danfu Business Consulting Center; He is now a researcher at Zhuoyuehui Innovation
and Development (Shenzhen) Co., Ltd. and a partner at Beijing Danfu Investment Management Center (General
Partnership).
(II) Member of the Board of Supervisors
Dai Huijuan: Dai Huijuan, female, born in 1976. She holds a bachelor's degree and has no right of
permanent residence abroad. She served successively as supervisor and manager of the Company's human
resources department. Now she serves as chairwoman of the Board of Supervisors and director of the human
resources center at the Company, director and general manager of Huizhou Topband Electrical Technology Co.,
Ltd., partner of Shenzhen Hongru Investment Enterprise (Limited Partnership), and executive director and
manager of Huizhou Topband New Energy Co., Ltd.
Chen Jinzhou, male, born in 1978, a permanent resident of Hong Kong, China, holds a doctor's degree from
the Chinese University of Hong Kong; He used to be an electronic engineer at Hong Kong Productivity Council, a
senior researcher at Beijing Noitom Technology Ltd., and a senior chief engineer at Johnson Electric; He is now
the deputy general manager of microelectronics business division and supervisor of the Company.
Kang Weiquan, male, born in 1984, holds a bachelor's degree without permanent residency abroad; He used
to be a cost accountant at Shenzhen EVA Precision Industry Holdings Limited; He is now the cost accountant,
employee representative and supervisor of the Company.
(III) Senior executives
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Wu Yongqiang, the general manager, is detailed in the resume of members of Board of Directors.
Zheng Sibin, the deputy general manager, is detailed in the resume of members of Board of Directors.
Ma Wei, the deputy general manager, is detailed in the resume of members of Board of Directors.
Wen Chaohui, female, born in 1974, holds a bachelor's degree and is an accountant without permanent
residency abroad; She used to be the head of finance department, manager of finance department and CFO of
Shenzhen Topband Co., Ltd., a director of Shenzhen Defang Nano Co., Ltd., and a director of Shenzhen
Dynanonic Co., Ltd.; She is now the deputy general manager and secretary of Board of Directors of the Company.
Ms. Wen Zhaohui has been honored as "New Fortune Golden Secretary" for five consecutive years. She won the
titles of "Excellent Secretary" awarded by Shenzhen Securities Regulatory Bureau and "Securities Times Top 100
Board Secretaries" in 2015, 2016 and 2017, and was selected into "New Fortune Hall of Fame of Golden
Secretaries in 2019".
Xiang Wei, male, born in 1977, holds a bachelor's degree and is a senior management accountant and an
international accountant without permanent residency abroad; He used to be the chief accountant of North China
Aluminum Co., Ltd., the accounting supervisor and subsidiary financial manager of Yi Yang Jewelry Industry Co.,
Ltd., and the deputy financial manager and financial manager of Shenzhen Topband Co., Ltd.; He is now the CFO
of the Company.
Employment in shareholder entity
□ Applicable Not applicable
Employment in other entities
Applicable □ Not applicable
Starting Ending Receive
Position at other date of date of remuneration
Name of staff Name of other entities
entities term of term of allowance from
office office other entity or not
Shenzhen Topband Software
Wu Yongqiang Executive director 2014/09/18 No
Technology Co., Ltd.
Executive director and
Wu Yongqiang Shenzhen Topband Battery Co., Ltd. 2009/04/29 No
general manager
Shenzhen Hongru Investment Executive (standing)
Wu Yongqiang 2015/08/20 No
Management Co., Ltd. director
Shenzhen Hongru Investment
Wu Yongqiang Partner 2015/09/02 No
Enterprise (Limited Partnership)
Shenzhen YAKO Automation
Wu Yongqiang Chairman 2022/12/24 No
Technology Co., Ltd.
Shenzhen Topband Automation
Wu Yongqiang Executive director 2016/11/24 No
Technology Co., Ltd.
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Shenzhen Yankai Electrical Technology Executive director and
Wu Yongqiang 2019/05/05 No
Co., Ltd. general manager
Topband (Qingdao) Intelligent Control Executive director and
Wu Yongqiang 2021/03/29 No
Co., Ltd. manager
Ningbo Topband Intelligent Control Executive director and
Wu Yongqiang 2017/08/28 No
Co., Ltd. general manager
Shenzhen Shuofang Precision Executive director and
Ji Shuhai 2010/05/24 Yes
Machinery Co., Ltd. general manager
Shenzhen Allied Control System Co., Executive director and
Peng Ganquan 2016/12/20 No
Ltd. general manager
Shenzhen Topband Automotive
Peng Ganquan General Manager 2021/09/07 No
Electronics Co., Ltd.
TOPBAND INDIA PRIVATE
Peng Ganquan Director 2015/12/11 No
LIMITED
Shenzhen Topband Software
Zheng Sibin Supervisor 2004/02/26 No
Technology Co., Ltd.
Zheng Sibin Chongqing Topband Industrial Co., Ltd. Supervisor 2008/03/12 No
Hua Xiuping Ningbo Fubang Jingye Group Co., Ltd. Independent director 2020/03/28 Yes
Ningbo Yuyao Rural Commercial Bank
Hua Xiuping Independent director 2022/02/17 Yes
Co., Ltd.
Hua Xiuping Bank of Dongguan Co. Ltd. Independent director 2020/06/01 Yes
Nottingham University Business School Associate Professor of
Hua Xiuping 2016/07/01 Yes
(China) Finance
Zhuoyuehui Innovation and
Li Xumeng Researcher 2018/06/01 Yes
Development (Shenzhen) Co., Ltd.
Beijing Danfu Investment Management
Li Xumeng Partner 2015/06/08 No
Center (General Partnership)
Huang Yuegang Shenzhen Aoya Design Co., Ltd. Independent director 2021/07/06 Yes
Huang Yuegang Guizhou Tyre Co., Ltd. Independent director 2019/03/01 Yes
Huizhou Topband Electrical Executive director and
Dai Huijuan 2011/11/14 No
Technology Co., Ltd. general manager
Shenzhen Topband Automotive
Dai Huijuan Supervisor 2021/09/07 No
Electronics Co., Ltd.
Explanation of
employment in None
other entities
Punishment of securities regulator for the present and off-post director, supervisor and senior executives during the
reporting period in the Company in the last three years
□ Applicable Not applicable
3. Remuneration for directors, supervisors and senior executives
Decision-making procedures, confirmation basis, and actual payment of remuneration for directors, supervisors,
and senior executives
1. Decision-making procedure and confirmation basis of remuneration: The remuneration of the Company's
directors, supervisors and senior executives shall be paid according to the Remuneration Management System for
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Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
Directors, Supervisors and Senior Executives deliberated and passed by the General Meeting of Shareholders. The
remuneration and appraisal committee shall formulate a directors' remuneration plan and submit it to the Board of
Directors for review and approval by the General Meeting of Shareholders.
2. The Remuneration Management System for Directors, Supervisors and Senior Executives of Shenzhen
Topband Co., Ltd., which was revised at the 2011 General Meeting of Shareholders on April 17, 2012, stipulates
that the allowance for independent directors of the Company is RMB 84,000 (before tax) per year, which is paid
according to their duration of service and relevant regulations. The Company shall be responsible for the travel
expenses of the independent directors who attend the Board of Directors and the General Meeting of Shareholders
and the expenses required for the exercise of their functions and powers according to the Articles of Association of
the Company.
Remuneration for directors, supervisors, and senior executivess in the reporting period
Unit: RMB ten thousand
Is remunerations received
Position Total pre-tax remuneration
Name Position Gender Age from related parties of the
status received from the Company
Company
Wu
Chairman Male 58 Incumbent 157.61 No
Yongqiang
Ji Shuhai Director Male 61 Incumbent 8.40 No
Zheng Director and deputy
Male 57 Incumbent 221.39 No
Sibin general manager
Director and deputy
Ma Wei Male 49 Incumbent 193.12 No
general manager
Peng
Director Male 51 Incumbent 244.13 No
Ganquan
Wu Hang Director Male 38 Incumbent 8.40 No
Li
Independent director Male 56 Incumbent 8.40 No
Xumeng
Hua
Independent director Female 44 Incumbent 8.40 No
Xiuping
Deputy General
Wen Manager and Secretary
Female 49 Incumbent 89.96 No
Zhaohui of the Board of
Directors
Xiang Wei Chief financial officer Male 46 Incumbent 89.68 No
Dai
Supervisor Female 47 Incumbent 96.95 No
Huijuan
Kang
Supervisor Male 39 Incumbent 39.87 No
Weiquan
Chen
Supervisor Male 45 Incumbent 88.87 No
Jinzhou
Huang
Independent director Male 65 Incumbent 8.40 No
Yuegang
Total -- -- -- -- 1,263.58 --
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VI. Performance of duties by directors during the reporting period
1. Information on the Board of Directors in the reporting period
Date of
Meeting session Meeting date Meeting resolution
disclosure
1. Deliberated and passed the Proposal on Implementation Mode,
Subject and Location of Changes in Some Capital-raising Projects;
2. Deliberated and passed the Proposal on Adding a Special Account for
The 18th (Extraordinary)
Raised Funds and Signing a Tripartite Supervision Agreement;
Meeting of the 7th Board 2022/01/07 2022/01/08
3. Deliberated and passed the Proposal on Increasing Investment in
of Directors
Wholly-owned Subsidiaries and Sub-subsidiaries;
4. Deliberated and passed the Proposal on Convening the First
Extraordinary General Meeting of Shareholders in 2022;
1. Deliberated and passed the Proposal on the Development of Forward
The 19th Meeting of the Exchange Transactions;
2022/01/13 2022/01/15
7th Board of Directors 2. Deliberated and passed the Proposal on Signing A Purchase
Framework Agreement with Shenzhen Jizhiguang Electronics Co., Ltd.
The 20th (Extraordinary)
1. Deliberated and passed the Proposal on Temporarily Replenishing
Meeting of the 7th Board 2022/02/11 2022/02/15
Working Capital with Some Idle Raised Capitals
of Directors
1. Deliberated and passed the Proposal on Annual Report 2021 and
Abstract;
2. Deliberated and passed the Proposal on 2021 Work Report of the
Board of Directors;
3. Deliberated and passed the Proposal on 2021 Work Report of the
General Manager;
4. Deliberated and passed the Proposal on 2021 Final Financial Report;
5. Deliberated and passed the Proposal on 2021 Profit Distribution Plan;
6. Deliberated and passed the Proposal on 2021 Internal Control
Evaluation Report;
7. Deliberated and passed the Proposal on Remuneration of Company
Directors in 2021;
8. Deliberated and passed the Proposal on Remuneration of Company
Senior Executives in 2021;
9. Deliberated and passed the Proposal on Special Report on Deposit
and Using of Raised Funds in 2021;
10. Deliberated and passed the Proposal on the Third Exercise Period of
The 21st Meeting of the
2022/03/18 2022/03/22 2018 Stock Option Incentive Plan Meeting the Exercise Conditions and
7th Board of Directors
Exercisable Rights;
11. Deliberated and passed the Proposal on Adjustment of the Incentive
Objects and the Number of Stock Options of 2018 Stock Option
Incentive Plan;
12. Deliberated and passed the Proposal on Using Part of Idle Raised
Capitals and Self-own Funds for Cash Management;
13. Deliberated and passed the Proposal on Application for
Comprehensive Credit Line from Banks by the Company and Its
Subsidiaries in 2022;
14. Deliberated and passed the Proposal on Renewing the Employment
of Audit Institution in 2022;
15. Deliberated and passed the Proposal on Accrual of Asset
Impairment Reserves in 2021;
16. Deliberated and passed the Proposal on the Repurchase of the
Company's Shares;
17. Deliberated and passed the Proposal on Planning the Spin-off
Listing of Controlled Subsidiaries;
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18. Deliberated and passed the Proposal on Correction and Retroactive
Adjustment of Early Accounting Errors;
19. Deliberated and passed the Proposal on 2021 ESG & Social
Responsibility Report;
20. Deliberated and passed the Proposal on Convening the 2021 Annual
General Meeting of Shareholders
1. Deliberated and passed 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 Relevant Laws and Regulations;
2. Deliberated and passed the Proposal on Spinning off Shenzhen
YAKO Automation Technology Co., Ltd. (Subsidiary) for the Initial
Public Offering of RMB Ordinary Shares (A Shares);
3. Deliberated and passed 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;
4. Deliberated and passed 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);
5. Deliberated and passed the Proposal on Spinning off Shenzhen
YAKO Automation Technology Co., Ltd. (Subsidiary) to List on the
Growth Enterprise Market of Shenzhen Stock Exchange and to
The 22nd (Extraordinary)
Safeguard the Legal Rights and Interests of Shareholders and Creditors;
Meeting of the 7th Board 2022/03/24 2022/03/26
6. Deliberated and passed the Proposal on Maintaining Independence
of Directors
and Sustainable Operation Abilities;
7. Deliberated and passed the Proposal on the Shenzhen YAKO
Automation Technology Co., Ltd. With Relevant Standard Operation
Capacities;
8. Deliberated and passed the Proposal on the Explanation 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;
9. Deliberated and passed 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;
10. Deliberated and passed the Proposal on the Purpose, Commercial
Reasonableness, Necessity and Feasibility Analysis of the Spin-off;
11. Deliberated and passed the Proposal on the Appointment of
Representative for Securities Affairs;
12. Deliberated and passed the Proposal on Adding Temporary
Proposals for the 2021 Annual General Meeting of Shareholders
1. Deliberated and passed the Proposal on Repurchase and Cancellation
The 23rd (Extraordinary) of Some Restricted Stocks from Restricted Stock Incentive Plan in
Meeting of the 7th Board 2022/03/30 2022/03/31 2021;
of Directors 2. Deliberated and passed the Proposal on Adding Temporary Proposals
for the 2021 Annual General Meeting of Shareholders
1. Deliberated and passed the Proposal on Report for the First Quarter
of 2022;
The 24th Meeting of the
2022/04/19 2022/04/21 2. Deliberated and passed the Proposal on Using Bank Acceptance Bills
7th Board of Directors
to Pay for Funds of Capital-raising Projects and Exchange the Raised
Funds in Equal Amount
The 25th Meeting of the 1. Deliberated and passed the Proposal on Adjusting the Exercise Price
2022/04/26 2022/04/27
7th Board of Directors of the Stock Option Incentive Plan in 2018;
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2. Deliberated and passed the Proposal on Cancellation of Partial Stock
Options of 2018 Stock Option Incentive Plan
1. Deliberated and passed the Proposal on 2022 Semi-annual Report
and Abstract;
2. Deliberated and passed the Proposal on Special Report on Deposit
The 26th Meeting of the and Using of Semi-annual Raised Funds in 2022;
2022/07/25 2022/07/27
7th Board of Directors 3. Deliberated and passed the Proposal on Adjusting the Repurchase
Price of Restricted Stock Incentive Plan in 2021;
4. Deliberated and passed the Proposal on Revising the Investor
Relation Management System
1. Deliberated and passed the Proposal on Signing the Supplementary
Agreement II to the Investment Agreement by the Wholly-owned
Subsidiaries of the Company;
2. Deliberated and passed the Proposal on Implementation Location and
Mode of Changes in Some Capital-raising Projects Again;
3. Deliberated and passed the Proposal on Repurchase and Cancellation
The 27th (Extraordinary)
of Some Restricted Stocks from Restricted Stock Incentive Plan in
Meeting of the 7th Board 2022/08/18 2022/08/20
2021;
of Directors
4. Deliberated and passed the Proposal on Changing Registered Capital
of the Company;
5. Deliberated and passed the Proposal on Revising Articles of
Association;
6. Deliberated and passed the Proposal on Convening the Second
Extraordinary General Meeting of Shareholders in 2022
1. Deliberated and passed the Proposal on Adjusting Corporate-level
Performance Evaluation Indicators of Restricted Stock Incentive Plan in
The 28th (Extraordinary) 2021;
Meeting of the 7th Board 2022/09/23 2022/09/24 2. Deliberated and passed the Proposal on Changing the Registered
of Directors Address of the Company and Revising the Articles of Association;
3. Deliberated and passed the Proposal on Convening the Third
Extraordinary General Meeting of Shareholders in 2022
1. Deliberated and passed the Proposal on Report for the Third Quarter
of 2022;
The 29th Meeting of the 2. Deliberated and passed the Proposal on Revising the Related
2022/10/27 2022/10/28
7th Board of Directors Transaction Management System;
3. Deliberated and passed the Proposal on Revising the External
Guarantee System
The 30th Meeting of the 1. Deliberated and passed the Proposal on Temporarily Replenishing
2022/12/19 2022/12/20
7th Board of Directors Working Capital with Some Idle Raised Capitals
2. Attendance of directors at board meetings and the general meetings of shareholders
Attendance of directors at board meetings and the general meetings of shareholders
Number of
Did any of
required
Number of Number of Number of them fail to Number of the
attendances on Number of
board meetings board meetings times of attend board general
Names of the meeting of times of
that shall be attended by entrusted meetings in meetings of
directors Board of absence from
attended on the means of attendance at person for two shareholders
Directors in board meetings
spot communication board meetings consecutive attended
the reporting
times
period
Wu Yongqiang 13 9 4 0 0 No 4
Ji Shuhai 13 0 13 0 0 No 4
Ma Wei 13 8 5 0 0 No 4
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Peng Ganquan 13 9 4 0 0 No 4
Zheng Sibin 13 9 4 0 0 No 4
Wu Hang 13 0 13 0 0 No 4
Huang
13 0 13 0 0 No 4
Yuegang
Hua Xiuping 13 0 13 0 0 No 4
Li Xumeng 13 1 12 0 0 No 4
Explanation of absence from board meetings for two consecutive times
Not applicable
3. Objection of directors to related matters of the Company
Did any director raise any objection to relevant matters of the Company
□ Yes No
During the reporting period, no director raised any objection to relevant matters of the Company.
4. Other description for performance of duties by directors
Were the relevant suggestions of directors to the Company adopted
Yes □ No
Explanation of the fact that the relevant suggestions of directors to the Company were or were not adopted
Not applicable
VII. Information of special committees under the Board of Directors during the reporting
period
Number
Other Details of
Names of of Meeting Important opinions and
Members Meeting content performance objections
committees meetings date suggestions put forward
of duties (if any)
held
Deliberation: The audit committee
1. Proposal on the Preliminary strictly reviewed the
Review Opinions on the matters under review in
Financial and Accounting accordance with the
Huang Statements of 2021 Annual Rules of Procedure of the
Yuegang Report; Audit Committee of the
Audit 5 Not Not
Hua 2022/01/20 2. Proposal on the Audit Work Board of Directors and
Committee applicable applicable
Xiuping Time and Arrangement of relevant laws and
Li Xumeng Annual Report 2021; regulations, fully
3. Proposal on the Work Report communicated with the
for the Fourth Quarter of 2021 finance department and
and Work Plan for the First audit institution, and
Quarter of 2022 of the Audit unanimously agreed on
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Department; the relevant proposals.
4. Proposal on the 2021 Work
Summary and Work Plan for
the Next Year of the Audit
Department.
Deliberation:
1. Proposal on the Opinions on
The audit committee
the Financial and Accounting
strictly reviewed the
Reports of the Company in
matters under review in
2021;
accordance with the
2. Proposal on 2021 Internal
Rules of Procedure of the
Control Evaluation Report;
Audit Committee of the
3. Proposal on Renewing the
Board of Directors and Not Not
2022/03/18 Employment of Baker Tilly
relevant laws and applicable applicable
China Certified Public
regulations, fully
Accountants as the Audit
communicated with the
Institution in 2022;
finance department and
4. Proposal on Accrual of Asset
audit institution, and
Impairment Reserves in 2021;
unanimously agreed on
5. Proposal on Special Report
the relevant proposals.
on Deposit and Using of
Raised Funds in 2021.
The audit committee
strictly reviewed the
Deliberation: matters under review in
1. Proposal on the Opinions on accordance with the
the Financial and Accounting Rules of Procedure of the
Statements for the First Quarter Audit Committee of the
of 2022; Board of Directors and Not Not
2022/04/19
2. Deliberated the Proposal on relevant laws and applicable applicable
the Work Report for the First regulations, fully
Quarter and Work Plan for the communicated with the
Second Quarter of 2022 of the finance department and
Audit Department. audit institution, and
unanimously agreed on
the relevant proposals.
The audit committee
strictly reviewed the
Deliberation: matters under review in
1. Proposal on the Opinions on accordance with the
the Financial and Accounting Rules of Procedure of the
Reports of the Company for Audit Committee of the
the Second Quarter of 2022; Board of Directors and Not Not
2022/07/25
2. Deliberated the Proposal on relevant laws and applicable applicable
the Work Report for the First regulations, fully
Quarter and Work Plan for the communicated with the
Third Quarter of 2022 of the finance department and
Audit Department. audit institution, and
unanimously agreed on
the relevant proposals.
Deliberation: The audit committee
1. Proposal on the Opinions on strictly reviewed the
the Financial and Accounting matters under review in
Reports of the Company for accordance with the Not Not
2022/10/27
the Third Quarter of 2022; Rules of Procedure of the applicable applicable
2. Proposal on the Work Report Audit Committee of the
for the Third Quarter of 2022 Board of Directors and
and Work Plan for the Fourth relevant laws and
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Quarter of 2022 of the Audit regulations, fully
Department; communicated with the
3. Opinions on the Occupation finance department and
of Company Funds and audit institution, and
External Guarantees of unanimously agreed on
Controlling Shareholders and the relevant proposals.
Other Related Parties.
The Remuneration and
Deliberation: Appraisal Committee
1. Proposal on Remuneration under the Board of
of Company Directors in 2021; Directors reviewed the
2. Proposal on Remuneration matters under
of Company Supervisors in consideration in strict
2021; accordance with the
3. Proposal on Remuneration Working Rules of Not Not
2022/03/18
of Company Senior Executives Remuneration and applicable applicable
in 2021; Appraisal Committee
4. Proposal on the Third under the Board of
Exercise Period of 2018 Stock Directors and relevant
Option Incentive Plan Meeting laws and regulations, and
Hua
the Exercise Conditions and unanimously agreed to
Salary and Xiuping
Exercisable Rights. the relevant proposal.
Assessment Wu 2
Committee Yongqiang
The Remuneration and
Huang
Appraisal Committee
Yuegang
under the Board of
Directors reviewed the
Deliberated the Proposal on matters under
Adjusting Corporate-level consideration in strict
Performance Evaluation accordance with the
Not Not
2022/09/23 Indicators of Measures for Working Rules of
applicable applicable
Implementation, Assessment Remuneration and
and Management of Restricted Appraisal Committee
Stock Incentive Plan in 2021. under the Board of
Directors and relevant
laws and regulations, and
unanimously agreed to
the relevant proposal.
Deliberation:
1. Proposal on Spinning off
Shenzhen YAKO Automation
Technology Co., Ltd.
The Strategic Committee
(Subsidiary) to List on the
under the Board of
Growth Enterprise Market with
Directors reviewed the
Wu Relevant Laws and
matters under
Yongqiang Regulations;
consideration in strict
Zheng 2. Proposal on Spinning off
accordance with the
Strategy Sibin Shenzhen YAKO Automation Not Not
2 2022/03/18 Working Rules of
committee Peng Technology Co., Ltd. applicable applicable
Strategic Committee
Ganquan (Subsidiary) for the Initial
under the Board of
Ma Wei Public Offering of RMB
Directors and relevant
Li Xumeng Ordinary Shares (A Shares); 3.
laws and regulations, and
Proposal on the Plan of
unanimously agreed to
Shenzhen Topband Co., Ltd.
the relevant proposal.
for Spinning Off of Its
Subsidiary (Shenzhen YAKO
Automation Technology Co.,
Ltd.) to List on the Growth
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Enterprise Market; 4. Proposal
on Spinning off Shenzhen
YAKO Automation
Technology Co., Ltd.
(Subsidiary) to List on the
Growth Enterprise Market in
Compliance with Rules for the
Spin-off of Listed Companies
(For Trial Implementation);
5. Proposal on Spinning off
Shenzhen YAKO Automation
Technology Co., Ltd.
(Subsidiary) to List on the
Growth Enterprise Market and
to Safeguard the Legal Rights
and Interests of Shareholders
and Creditors;
6. Proposal on Maintaining
Independence and Sustainable
Operation Abilities;
7. Proposal on the Shenzhen
YAKO Automation
Technology Co., Ltd. With
Relevant Standard Operation
Capacities;
8. Proposal on the Explanation
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;
9. 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;
10. Proposal on the Purpose,
Commercial Reasonableness,
Necessity and Feasibility
Analysis of the Spin-off.
Deliberated the Proposal on
Adjusting Corporate-level
Not Not
2022/09/23 Performance Evaluation
applicable applicable
Indicators of Restricted Stock
Incentive Plan in 2021.
Li
Xumeng,
Nomination Wu Not Not
0 Not applicable
committee: Yongqiang, applicable applicable
Huang
Yuegang
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VIII. Work of the Board of Supervisors
Did the Board of Supervisors find that the Company had any risk in the supervision activities during the reporting
period
□ Yes No
The Board of Supervisors had no objection to the supervisory matters during the reporting period.
IX. Information on the Company's employees
1. Number, professional composition and education level of employees
Number of on-the-job employees in the parent company at the
2,934
end of the reporting period (person)
Number of on-the-job employees in major subsidiaries at the end
5,445
of the reporting period (person)
Total number of on-the-job employees at the end of the reporting
8,379
period (person)
Total number of salaried employees in the current period (person) 8,379
Number of retired employees paid by the parent company and
9
major subsidiaries (person)
Specialty composition
Professional composition category Number of specialty composition (person)
Production personnel 4,527
Salesmen 593
Technician 1,776
Financial staff 106
Administrative personnel 668
Logistics personnel 709
Total 8,379
Education level
Education level category Number (person)
Bachelor or above 3,017
Junior college level 1,286
Below junior college level 4,076
Total 8,379
2. Remuneration policy
The Company formulates salary management regulations in accordance with relevant national labor
regulations and policies and its actual situation, and assesses and pays salaries in accordance with the salary
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management regulations. The Company strictly complies with the Labor Law and relevant national and local labor
laws and regulations, signs labor contracts with employees, and pays various employee insurance according to
regulations. The total remuneration of the Company consists of three parts: fixed salary, performance salary, and
welfare benefits. The fixed salary includes basic salary, post salary, and confidential salary; The performance
salary includes performance bonus, year-end bonus, and special bonus; The benefits include statutory benefits,
corporate benefits, and subsidies.
3. Training plan
The Company has established a talent training system combining professional competence and leadership,
including routine training, professional module training and management cadre training. For new employees,
professionals in R&D, purchase and sales, and middle to senior executives, the Company develops different
training courses in stages, and implements annual training plans in terms of corporate culture, professional skills,
management improvement, professional quality, and mental health. Through the combination of internal and
external training, excellent human resources support is provided for the sustainable development of the Company.
In 2022, the talent development department and relevant departments of the Company conducted a series of
trainings to help new employees better adapt to the new work environment and post, familiarize themselves with
the Company's relevant systems, and integrate into the corporate culture. The Company's human resources center
specially arranged a systematic plan for "Topband's Orientation Training", which covered company introduction,
welfare, corporate culture, information systems, finance, intellectual property, basis of legal affairs, business
secrets knowledge, ISC core ideological concepts, and occupational mental health. The "Training for Topband's
New Employees" has become the Company's systematic newcomer training program. In 2022, more than 6,600
new employees participated in the Orientation Training. In order to improve training efficiency, the "Orientation
Training" in 2022 was changed from the original offline mode to online mode, and offline ice breaking activities
and "Topband Initial Experience" offline check-in activities were added to enrich the training forms for new
employees and improve the effectiveness of training. At the same time, the Company also carried out 101 offline
trainings for production line employees in Huizhou, including orientation training, on-the-job training, post
transfer training, and special post skills training.
In addition to regular training, the Company also irregularly held various professional training tailored to
different posts based on actual business needs, including special training on finance, legal affairs, patent, customs,
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purchase, supply chain, sales, R&D, manufacturing and quality, as well as subject exchange and sharing on
various professional modules and technologies. The training for professional posts provided by the Company in
2022, including R&D Special Skill Training, HRBP Training Camp, Sourcing Training Camp, Buyer Training
Camp, Internal Trainer Training Camp, Tutor Training Camp, AR\SR Ability Improvement Training Camp,
English Improvement Training Camp, Communication Training Camp and Newbie Training Camp, covered 1,600
persons-time, with the course duration of about 260 h. Various departments conducted nearly 1,000 internal skill
trainings, with a total training duration of about 2,000 h.
In terms of leadership improvement training, the Company designed and implemented management ability
and leadership improvement training camps at all levels in 2022, which were conducted in multiple phases, with a
total learning duration of 480 h. This achieved full coverage of training for management cadres at all levels, from
grass-roots reserve cadres and group leaders to middle-level supervisors and managers, and then to the BU general
managers, so as to improve the comprehensive ability of the Company's executives and provide talent guarantee
for the implementation of the Company's strategies.
In addition, in 2022, the Company established a special team and built an online learning platform covering
the whole group and all employees and aiming to create a more convenient and flexible learning channel for the
learning and growth of all employees in the group. The online learning platform course system was mainly divided
into eight modules: strategy study school, management school, marketing school, professional school, HR school,
workplace school, master school, and EAP school. After the initial construction of the platform, the special team
listed the construction plan for the next three years, which was divided into each year and gradually implemented.
The Company first established quality courses for the management school. In 2023, it will continue to push
forward and plan to establish 185 courses. At the same time, it is also planned to cover the overseas employee
training system in 2023, to help improve the abilities of the Company's domestic and foreign employees.
The Company places a high priority on the training plan. In order to improve the targeted nature of the
training and effectively enhance the professional abilities of personnel in various departments of the Company, the
module heads of various departments and the talent development department of the human resources center jointly
formulate the 2023 training plan. In order to enhance the internal implementation ability of the department, the
module heads of various departments and corresponding lecturers will ensure that the training plan is effectively
and orderly carried out, and the talent development department of the human resources center will supervise and
manage the implementation. The 2023 training plan covers multiple modules such as management, professional
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Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
technical theory and practice, and engineering process capability improvement. In terms of course design, teaching
methods, training system, lecturers and other resources, the Company effectively guarantees the opportunities for
employees to learn and grow, and escorts the career development of employees.
4. Labor outsourcing
□ Applicable Not applicable
I. Profit distribution and conversion of capital accumulation fund to share capital of the
Company
Preparation, implementation, or adjustment of policy for profit distribution, especially policy of cash dividends in
the reporting period
Applicable □ Not applicable
During the reporting period, the Board of Directors of the Company formulated the profit distribution
proposal in 2021 after detailed consultation and listening to the opinions of the shareholders of the Company in
combination with the Company's profit situation and investment situation in 2021 and the investment and
expenditure plans in 2022, which was deliberated and passed by the 21th Meeting of the 7th Board of Directors
and the Annual General Meeting of Shareholders in 2021. The profit distribution plan of the Company in 2021
was after deducting 1,254,260,172 million shares already repurchased in the Company's special repurchase
accounts from the total share capital of the Company on the date of record and the cash dividends of RMB 0.5
(including tax) for every 10 shares was distributed to all shareholders. Besides, no share capital was converted
from the accumulation fund and no bonus share was given. The above profit distribution plan was completed on
April 29, 2022.The 2021 annual profit distribution plan complied with laws, regulations, the Articles of
Association, and the Shareholders' Dividend Plan for the Next Three Years (2020-2022), and the profit
distribution decision-making procedures complied with relevant laws, regulations, and rules.
Special explanation of cash dividend policy
Whether it met the requirements of the Articles of Association or the resolution of the
Yes
General Meeting of Shareholders:
Whether the dividend standard and proportion were definite and clear: Yes
Whether the relevant decision-making procedures and mechanisms were complete: Yes
Whether the Independent Director performed their duties and played their due roles: Yes
Whether the minority shareholders fully raised their opinions and demands, and whether
Yes
their lawful rights and interests were protected fully:
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If the cash dividend policy is adjusted or changed, whether the conditions and procedures
Not applicable
were compliant and transparent:
The Company made a profit during the reporting period and the profit of the parent company available for
shareholders' distribution was positive, but no cash dividend distribution proposal was proposed
□ Applicable Not applicable
Profit distribution and conversion of capital accumulation fund to share capital in the reporting period
Applicable □ Not applicable
Number of bonus shares send for every 10 shares (shares) 0
Number of dividend paid for every 10 shares (RMB) (including tax) 0.60
Equity base in the distribution plan (shares) 1,264,354,172
Cash dividend amount (RMB) (including tax) 75,861,250.32
Cash dividend amount (RMB) by other means (such as share repurchase) 52,434,493.65
Total cash dividends (including other means) (RMB) 128,295,743.97
Distributable profit (RMB) 1,256,697,391.07
Proportion of total cash dividends (including other means) in total profit
100%
distribution
Distribution of cash dividends in this period
If the development stage of the Company is in the growth period with significant capital expense, the lowest proportion of cash
dividends in profit distribution this time shall reach 20%.
Detailed explanations of plan for profit distribution or conversion of capital accumulation fund to share capital
2022 profit distribution plan of the Company: Based on the total share capital of the Company of 1,264,354,172 shares (excluding
5,181,200 repurchased treasury shares), the Company distributed cash dividend RMB 0.60 (tax inclusive) for every 10 shares to all
shareholders, without converting the accumulation fund to increase the share capital. The accumulated retained earnings remaining
after the implementation of the profit distribution plan will be carried forward to subsequent years. If the total share capital of the
Company changes before the implementation of the profit distribution plan due to reasons such as share repurchase and stock option
exercise, the total distribution will be adjusted accordingly based on the principle of keeping the distribution ratio per share unchanged.
XI. Implementation of the Company's equity incentive plan, employee stock ownership plan
or other employee incentive measures
Applicable □ Not applicable
1. Equity incentive
1. Implementation of the stock option incentive plan in 2018:
(1) On October 26, 2018, the 7th Meeting of the 6th Board of Directors and the 5th Meeting of the 6th Board
of Supervisors of the Company deliberated and passed the Proposal on the Company's 2018 Stock Option
Incentive Plan (Draft) and Its Abstract, which was approved by the Company's 1st Extraordinary General Meeting
of Shareholders in 2018. The grant registration was completed on January 4, 2019 and a total of 684 incentive
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Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
objects were granted 42.887 million stock options. Among them, 684 incentive objects were all directors, middle
and senior executives and core technology (business) backbones of the Company. The grant price was RMB
3.80/share and the grant date was November 27, 2018. The stock option was locked within 12 months from the
date of grant. After meeting the exercise conditions, the incentive objects could apply for exercise in three phases
within 48 months after the date of grant.
(2) On July 26, 2019, the 15th Meeting of the 6th Board of Directors and the 12th Meeting of the 6th Board
of Supervisors deliberated and passed the Proposal on Adjusting the Exercise Price of the Stock Option Incentive
Plan in 2018. The 2018 annual equity distribution plan was implemented, and the exercise price was adjusted from
RMB 3.80 per share to RMB 3.70 per share accordingly.
(3) On March 30, 2020, the 22nd Meeting of the 6th Board of Directors deliberated and passed 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 12.0147 million stock options, that meet the exercise conditions and can
be exercised. The Company plans to adopt the independent exercise mode. Given that 7 incentive objects,
including Fang Dikui and Zhang Rong, resigned from the Company due to personal reasons during the period
from the announcement on March 31 to the vesting date, their 142,000 stock options that have been granted but
not yet exercised would not be exercised and would be canceled by the Company. The review procedure for the
adjustment of the number of these options would be carried out in the future.
(4) As of May 21, 2020, 606 incentive objects in the first exercise period had completed the exercise of
12.0147 million stock options, increased the Company's share capital by RMB 12.0147 million.
(5) On March 5, 2021, the 6th Meeting of the 7th Board of Directors and the 6th Meeting of the 7th Board of
Supervisors deliberated and passed the Proposal on the Second Exercise Period of 2018 Stock Option Incentive
Plan Meeting the Exercise Conditions and Exercisable Rights, the Proposal on Adjustment of the Incentive
Objects and the Number of Stock Options of 2018 Stock Option Incentive Plan, and the Proposal on Adjusting the
Exercise Price of the Stock Option Incentive Plan in 2018. There were 569 incentive objects in the second exercise
period to exercise their rights independently and a total of 10,985,100 stock options meeting the exercise
conditions. At the same time, the 2019 annual equity distribution plan was implemented, and the exercise price of
the 2018 stock option incentive plan was adjusted from RMB 3.70 per share to RMB 3.65 per share accordingly.
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(6) On April 26, 2021, the 9th Meeting of the 7th Board of Directors and the 8th Meeting of the 7th Board of
Supervisors deliberated and passed the Proposal on Adjusting the Exercise Price of the Stock Option Incentive
Plan in 2018. The 2020 annual equity distribution plan was implemented, and the exercise price was adjusted from
RMB 3.65 per share to RMB 3.60 per share accordingly.
(7) As of August 6, 2021, 10,950,600 stock options involving 567 incentive objects that meet the exercising
conditions have been exercised.
(8) 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 passed 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. Given that 22 incentive objects, including Zhang Ran and Wu Mingli, resigned from the
Company due to personal reasons during the period from the announcement on March 22 to the vesting date, their
324,000 stock options that have been granted but not yet exercised would not be exercised and would be canceled
by the Company; Given that 2 incentive objects was rated as "unqualified" in terms of the performance appraisal
during the assessment period of the third exercise period in 2021, all the exercisable quota of the stock option in
the current year can not be exercised; Given that 22 incentive objects rated as "good" or "qualified" in terms of the
performance appraisal, 75% of exercisable quota of the stock option in the current year can be exercised. The
number of options that cannot be exercised by the 24 incentive objects mentioned above was 227,500, which
would be uniformly canceled by the Company. The review procedure for the adjustment of the total number of
551,500 stock options will be carried out in the future.
(9) On April 26, 2022, the 25th Meeting of the 7th Board of Directors and the 21st Meeting of the 7th Board
of Supervisors deliberated and passed 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
RMB 3.60 per share to RMB 3.55 per share accordingly.
(10) As of May 16, 2022, 14.0493 million stock options involving 543 incentive objects that meet the
exercising conditions had been exercised, increased the Company's share capital by RMB 14.0493 million.
(11) On June 2, 2022, upon review and confirmation by the Shenzhen Branch of China Securities Depository
and Clearing Co., Ltd., 551,500 stock options that failed to meet the exercise conditions during the assessment
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period of the third exercise period in 2021 have been the canceled, and the 2018 stock option incentive plan has
been successfully implemented.
For details of the implementation of the stock option incentive plan in 2018, please refer to the Company's
announcements disclosed in the Securities Times and CNINFO (http://www.cninfo.com.cn) on July 30, 2019,
March 31, 2020, May 11, 2020, March 9, 2021, March 22, 2022, April 27, 2022, and June 3, 2022.
2. Implementation of the restricted stock incentive plan in 2021:
(1) On September 20, 2021, the 13th (Extraordinary) Meeting of the 7th Board of Directors deliberated and
passed the Proposal on the Company's Restricted Stock Incentive Plan in 2021, and agreed to grant up to 34
million restricted stocks to the incentive object. The shares of this plan come from the shares repurchased by the
Company's special repurchase account and the ordinary A shares issued by the Company to the incentive object.
Among them, 14,838,920 shares in the Company's special repurchase securities account will be used as a source of
some of the shares in the implementation of this plan, while the rest will be issued to the incentive object. The
restricted period of the restricted stocks granted this time is 12 months, 24 months and 36 months from the date of
completion of the granting and registration of the restricted stocks, and the restricted stocks will be lifted at a ratio
of 30%, 30% and 40%, respectively.
(2) The Company held the 14th Meeting of the 7th Board of Directors and the 11th Meeting of the 7th Board
of Supervisors on October 13, 2021, which deliberated and passed the Proposal on the Company's Restricted
Stock Incentive Plan in 2021 (Draft) and Its Abstract, the Proposal on Administrative Measures for the
Implementation and Evaluation of the Company's Restricted Stock Incentive Plan in 2021, and the Proposal on
Requesting the Shareholders' Meeting to Authorize the Board of Directors to Handle Matters Related to the
Company's Restricted Stock Incentive Plan in 2021 and agreed to grant 34 million restricted stocks to 1,250
incentive objects. The 11th Meeting of the 7th Board of Supervisors of deliberated and passed relevant proposals
and verified the list of incentive objects in this incentive plan. Independent directors expressed independent
opinions on this matter, and lawyers issued legal opinions.
(3) On October 15, 2021, the Company publicly announced the names and positions of the incentive objects
in this incentive plan on the Company's internal OA office system, with a publicity period from October 15, 2021
to October 24, 2021.No organization or individual raised any objection to the list of incentive objects during the
publicity period. On October 26, 2021, the Company disclosed the Audit Opinions of the Board of Supervisors on
the List of Incentive Objects in the Restricted Stock Incentive Plan in 2021 and the Explanation of Publicity. The
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Board of Supervisors believed that the proposed incentive objects in this incentive plan did not have the situation
that relevant laws and regulations do not allow them to be the incentive objects, and met the participation
qualifications within the scope of the incentive objects in this incentive plan.
(4) On November 1, 2021, the Company held the 2nd extraordinary shareholders' meeting, which deliberated
and passed the Proposal on the Company's Restricted Stock Incentive Plan in 2021 (Draft) and Its Abstract, the
Proposal on Administrative Measures for the Implementation and Evaluation of the Company's Restricted Stock
Incentive Plan in 2021, and the Proposal on Requesting the Shareholders' Meeting to Authorize the Board of
Directors to Handle Matters Related to the Company's Restricted Stock Incentive Plan in 2021 and other relevant
proposals related to the Incentive Plan, and authorized the Board of Directors to determine the grant date under the
Incentive Plan, grant restricted stocks to incentive objects when they met the conditions and handle all matters
required for the grant of restricted stocks.
(5) On November 2, 2021, the Company held the 16th (Extraordinary) Meeting of the 7th Board of Directors
and the 13th (Extraordinary) Meeting of the 7th Board of Supervisors, which deliberated and passed the Proposal
on Adjusting the Number of Stock Options Granted under the Restricted Stock Incentive Plan in 2021 and List of
Incentive Objects and the Proposal on Granting Restricted Stocks to Incentive Objects. In view of the demission of
the incentive object Ou Li specified in the Incentive Plan and the fact that Wang Cheng, Shen Zhiwen and Tian
Conghui et al. voluntarily gave up the subscription of restricted stocks to be granted by the Company for personal
reasons, the Board of Directors of the Company decided to cancel the restricted stocks to be granted to them. After
the cancellation, the number of restricted stocks to be granted under the Incentive Plan was reduced from 34
million to 33.951 million, and the number of incentive objects decreased from 1,250 to 1,246. November 2, 2021
was determined as the grant date, and 33.951 million restricted stocks were granted to 1,246 eligible incentive
objects. The Board of Supervisors of the Company reviewed the list of incentive objects, and independent
directors expressed their independent opinions and lawyers issued legal opinions.
(6) On December 7, 2021, the Company held the 17th (Extraordinary) Meeting of the 7th Board of Directors
and the 14th (Extraordinary) Meeting of the 7th Board of Supervisors, which deliberated and passed the Proposal
on Adjusting the Number of Stock Options Granted under the Restricted Stock Incentive Plan in 2021 and List of
Incentive Objects. In view of the fact that 22 incentive objects such as Li Xiang, Yu Dingguo and Lu Yuanshan
specified in the Incentive Plan voluntarily gave up their subscription of all the restricted stocks granted to them for
personal reasons and 10 incentive targets such as Liao Xinmeng, Wang Cao and Liu Xiaoshi voluntarily gave up
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their subscription of some of the restricted stocks granted to them for personal reasons in the process of capital
payment before share registration after the Board of Directors of the Company confirmed November 2, 2021 as
the grant date under the Restricted Stock Incentive Plan in 2021, the Board of Directors of the Company adjusted
the objects and the number of shares granted under the Restricted Stock Incentive Plan in 2021 according to the
authorization of the 2nd extraordinary shareholders' meeting of the Company in 2021.After adjustment, the
number of incentive objects under the Restricted Stock Incentive Plan in 2021 decreased from 1,246 to 1,224, and
the number of restricted stocks granted decreased from 33.951 million to 33.54432 million. The Board of
Supervisors of the Company reviewed the list of incentive objects, and independent directors expressed their
independent opinions and lawyers issued legal opinions.
(7) On December 16, 2021, upon review and confirmation by the Shenzhen Stock Exchange and Shenzhen
Branch of China Securities Depository and Clearing Co., Ltd., the Company completed the granting and
registration of 187,054 million restricted stocks (new shares) and 14,838,920 restricted stocks (repurchased shares)
involved in the restricted stock incentive plan in 2021. The above shares were listed on December 17, 2021.
(8) On March 30, 2022, the 23rd (Extraordinary) Meeting of the 7th Board of Directors deliberated and
passed the Proposal on the Proposal on Repurchase and Cancellation of Some Restricted Stocks from Restricted
Stock Incentive Plan in 2021, and agreed to repurchase and cancel 201,000 restricted stocks that have been
granted but not yet unlocked of 10 incentive objects, including Wu Song and Luo Qingshan in the restricted stock
incentive plan in 2021, who resigned from the Company due to personal reasons. The above matters had been
deliberated and passed by the Annual General Meeting of Shareholders in 2021.
(9) On July 25, 2022, the 26th Meeting of the 7th Board of Directors and the 22nd Meeting of the 7th Board
of Supervisors deliberated and passed the Proposal on Adjusting the Repurchase Price of Restricted Stock
Incentive Plan in 2021. The 2021 annual equity distribution plan was implemented, and the repurchase price was
adjusted from RMB 7.23 per share to RMB 7.18 per share accordingly.
(10) On August 18, 2022, the 27th (Extraordinary) Meeting of the 7th Board of Directors and the 22nd
(Extraordinary) Meeting of the 7th Board of Supervisors deliberated and passed the Proposal on the Proposal on
Repurchase and Cancellation of Some Restricted Stocks from Restricted Stock Incentive Plan in 2021, and agreed
to repurchase and cancel 1.291 million restricted stocks that have been granted but not yet unlocked of 66
incentive objects, including Wei Yin and Li Xinwei in the restricted stock incentive plan in 2021, who resigned
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from the Company due to personal reasons. The above matters had been deliberated and passed by the Second
Extraordinary General Meeting of Shareholders in 2022.
(11) On November 23, 2022, the 28th (Extraordinary) Meeting of the 7th Board of Directors and the 23rd
(Extraordinary) Meeting of the 7th Board of Supervisors deliberated and passed the Proposal on Adjusting
Corporate-level Performance Evaluation Indicators of Restricted Stock Incentive Plan in 2021, and agreed to
adjust the corporate-level performance evaluation indicators of restricted stock incentive plan in 2021.Independent
directors expressed independent opinions, the law firm issued legal opinions, and affiliated directors recused
themselves from voting. The above matters had been deliberated and passed on the Third Extraordinary General
Meeting of Shareholders in 2022.
(12) On December 27, 2022, given that 76 incentive objects, including Wu Song, Luo Qingshan, Wei Yin
and Li Xinwei in the restricted stock incentive plan in 2021, resigned from the Company due to personal reasons
and no longer met the conditions of becoming the incentive object, their restricted stocks that have been granted
but not unlocked could not be unlocked and would be canceled after being repurchased by the Company. The
above repurchase and cancellation matters were completed on December 27, 2022.After the repurchase and
cancellation, the number of incentive objects in the restricted stock incentive plan in 2021 reduced from 1,224 to
1,148, and the general capital reduced from 1,271,027,372 shares to 1,269,535,372 shares.
For details of the implementation of the restricted stock incentive plan in 2021, please refer to the Company's
announcements on Securities Times and CNINFO (http://www.cninfo.com.cn) on September 22, 2021, October
14, 2021, November 2, 2021, November 3, 2021, December 9, 2021, December 16, 2021, December 20, 2021,
March 31, 2022, July 26, 2022, August 19, 2022, September 24, 2022, and December 28, 2022.
Equity incentive awarded to directors and senior executives of the Company
Applicable □ Not applicable
Unit: Share
Number Number Number
Number Number of Number
of new Number Number of of new
of stock Number of exercised Number of
stock of shares of stock Market price restricted restricted
options shares shares and of shares Grant price restricted
options exercised options at the end of stocks stocks
held at exercisable exercise unlocked of restricted stocks
Name Position granted during held at the reporting held at granted
the during the price during in the stocks held at
during the the end period the during
beginning reporting the reporting current (RMB/share) the end of
the reporting of the (RMB/share) beginning the
of the period period period the
reporting period period of the reporting
year (RMB/share) period
period period period
Director,
Zheng
deputy 320,000 0 320,000 320,000 3.55 0 10.37 533,000 0 0 7.23 533,000
Sibin
general
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manager and
BG general
manager
Director,
deputy
general
Ma Wei 400,000 0 400,000 400,000 3.55 0 10.37 616,000 0 0 7.23 616,00
manager and
BG general
manager
Director and
Peng
BG General 480,000 0 480,000 480,000 3.55 0 10.37 400,000 0 0 7.23 400,000
Ganquan
Manager
Deputy
General
Wen Manager and
240,000 0 240,000 240,000 3.55 0 10.37 183,000 0 0 7.23 183,000
Zhaohui Secretary of
the Board of
Directors
Chief
Xiang
financial 160,000 0 160,000 160,000 3.55 0 10.37 183,000 0 0 7.23 183,000
Wei
officer
Total -- 1,600,000 0 1,600,0001,600,000 -- 0 -- 1,915,000 0 0 -- 1,915,000
During the reporting period, the exercise conditions corresponding to the third exercise period of the 2018 stock option
incentive plan were met, and all options of the corresponding proportion of the above directors and executives were exercised;
Remarks (if any)
At the same time, the restricted stock incentive plan in 2021 did not reach the unlock period, and all stocks were restricted
stocks.
Evaluation and incentives of senior executives
The performance appraisal of core executives of the Company is based on the operational efficiency and
strategic goals of the Company and the completion of annual production, operation and management capacity
building and work goals of executives under the principles of combining distribution according to work with
responsibilities, rights and interests, linking income level with company performance and work goals, emphasizing
both incentives and constraints, and combining result evaluation with process management, and the salary
distribution of senior executives is determined according to the appraisal results, so as to promote the long-term
development of the Company the achievement of strategic goals.
The Company adopts an annual salary system for senior executives, which consists of basic annual salary,
performance-based annual salary and long-term equity incentive. The basic annual salary is mainly determined
according to the average salary level of the executives in the previous year after taking into account factors such as
industry characteristics and market salary trends; The performance-based annual salary is based on year-end
management level, operational efficiency, and operational quality, is submitted to the Board of Directors for
review and distribution after assessment; The long-term equity incentive is formulated according to the
management measures for the periodic equity incentive assessment.
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2. Implementation of employee stock ownership plan
□ Applicable Not applicable
3. Other employee incentives
□ Applicable Not applicable
XII. Construction and implementation of internal control system during the reporting period
1. Internal control construction and implementation
During the reporting period, the Company continuously updated and improved its internal control system,
and revised and formulated the Investor Relation Management System and other regulations based on daily and
special supervision of internal control according to normative documents such as the Basic Norms of Enterprise
Internal Control, Guidelines for Independent Directors to Promote Internal Control of Listed Companies, and
Application Guidance for Internal Control of Enterprises, the internal control system and evaluation methods, and
its actual situation; At the same time, according to management needs, the Company set up an internal audit
institution to cooperate with the audit committee to supervise and inspect the implementation of relevant systems,
effectively ensuring the implementation of the Company's rules and regulations, reducing operation risks, and
strengthening internal control; The Company continued to optimize its organizational structure, clarify the
responsibilities of departments and corresponding posts, and effectively control the implementation of internal
control related to decision-making, execution, supervision, feedback and other whole process management
activities, to effectively avoid internal control loopholes.
The Company established a rigorous, scientific, effective internal control system suitable for its actual
situation, and formulated effective internal control evaluation standards; The Company effectively prevented risks
in business management and promoted the achievement of internal control objectives through the operation,
analysis, and evaluation of its internal control system.
2. Specific information about the major defects for internal control discovered in the reporting period
□ Yes No
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XIII. The Company's management and control of subsidiaries during the reporting period
□ Applicable Not applicable
The Company has completed the integration of its acquisition of subsidiary Taixing Ninghui Lithium Battery
Co., Ltd. in 2021 by the end of 2021.The Company did not acquire any new subsidiaries during the reporting
period.
XIV. Internal control self-evaluation report or internal control audit report
1. Self evaluation report for internal control
Disclosure date of the full text of the internal control
March 31, 2023
evaluation report
Index for disclosure of the full text of the internal
CNINFO (http://www.cninfo.com.cn)
control evaluation report
Ratio of total assets for entities included in evaluation
scope accounting for the total assets of consolidated 100.00%
financial statements of the Company
Ratio of operating income for entities included in
evaluation scope accounting for the operating income 100.00%
of consolidated financial statements of the Company
Defect identification criteria
Category Financial report Non-financial report
Indications of major defect of financial reports include:
(1) Fraud of directors, supervisors or senior executives
of the Company; The qualitative criteria for evaluating internal
(2) The Company corrects its published financial control defects in non-financial reports determined
reports; by the Company are as follows:
(3) A certified public accountant discovers significant The non-financial report defect identification is
misstatements in the current financial report that have mainly based on the influence degree of the defect
not been identified by the Company's internal control; on the validity of the business process and the
(4) The audit committee and audit department have possibility of occurrence.
ineffective supervision over the Company's external If the probability of a defect is relatively low and it
financial reports and internal control over the will reduce work efficiency or effect, or increase
Company's financial reports. the uncertainty of the effect, or make it deviate
Indications of significant defect of financial reports from the expected goal, it is recognized as a
Qualitative standard
include: general defect;
(1) Fail to select and apply accounting policies in If the probability of a defect is relatively high and
accordance with generally accepted accounting it will significantly reduce work efficiency or
standards; effect, or significantly increase the uncertainty of
(2) Fail to prepare anti-fraud procedures and control the effect, or make it significantly deviate from the
measures; expected goal, it is recognized as a significant
(3) There is no corresponding control mechanism or defect; If the probability of a defect is high and it
compensatory control for the accounting treatment of will seriously reduce work efficiency or effect, or
unusual or special transactions; seriously increase the uncertainty of the effect, or
(4) There are one or more defects in the control of the make it seriously deviate from the expected goal,
financial reporting process at the end of the period, and it is recognized as a major defect.
it can not reasonably guarantee that the prepared
financial statements are true and accurate.
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General defects refer to other control defects except the
above-mentioned major defects and important defects.
In quantitative standards, the operating income
and total assets are measurement indicators.
In quantitative standards, the consolidated operating
Internal control defects with losses or possible
income and total assets are measurement indicators.
losses incurred related to the income statement are
Internal control defects with losses or possible losses
measured by the consolidated operating income. If
incurred related to the income statement are measured
a defect alone or in conjunction with other defects
by the consolidated operating income. If a defect alone
may result in a financial report misstatement
or in conjunction with other defects may result in a
amount less than 0.5% of the consolidated
financial report misstatement amount less than 0.5% of
operating income, it is recognized as a general
the consolidated operating income, it is recognized as a
defect; If it exceeds 0.5% of the consolidated
general defect; If it exceeds 0.5% of the consolidated
operating income but is less than 1%, it is
operating income but is less than 1%, it is recognized as
recognized as a significant defect; If it exceeds 1%
a significant defect; If it exceeds 1% of the
of the consolidated operating income, it is
Quantitative standard consolidated operating income, it is recognized as a
recognized as a major defect.
major defect.
Internal control defects that may lead to or result
Internal control defects that may lead to or result in
in losses related to asset management are
losses related to asset management are measured by the
measured by the total consolidated asset indicator.
total consolidated asset indicator. If a defect alone or in
If a defect alone or in conjunction with other
conjunction with other defects may result in a financial
defects may result in a financial report
report misstatement amount less than 0.5% of the total
misstatement amount less than 0.5% of the total
consolidated asset, it is recognized as a general defect;
consolidated asset, it is recognized as a general
If it exceeds 0.5% of the total consolidated asset but is
defect; If it exceeds 0.5% of the total consolidated
less than 1%, it is recognized as a significant defect; If
asset but is less than 1%, it is recognized as a
it exceeds 1% of the total consolidated asset, it is
significant defect; If it exceeds 1% of the total
recognized as a major defect.
consolidated asset, it is recognized as a major
defect.
Number of major
defects in financial 0
report (pcs)
Number of major
defects in non- 0
financial report (pcs)
Number of significant
defects in financial 0
report (pcs)
Number of significant
defects in non- 0
financial report (pcs)
2. Internal control audit report
Applicable □ Not applicable
The deliberation opinion paragraph in the internal control audit report
In our opinions, as of December 31, 2022, Shenzhen Topband Co., Ltd. has maintained, in all material aspects, an effective
internal control pertaining to financial report, in accordance with Implementation Guidelines for Enterprise Internal Control and other
applicable rules and regulations.
Disclosure of internal control audit report Disclosure
Disclosure date of the full text of the internal control audit report March 31, 2023
Index of full-text disclosure of internal audit report CNINFO (http://www.cninfo.com.cn)
Opinion type of internal control audit report Standard and unqualified opinion
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Whether there were major defects in the non-financial report No
Did the accounting firm issue an internal control audit report with a non-standard opinion
□ Yes No
Is the internal control audit report issued by the accounting firm consistent with the self-evaluation report of the
Board of Directors
Yes □ No
XV. Rectification of self-examination problems in special actions of governance of listed
companies
Not applicable
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Section V Environmental and Social Responsibility
I. Major environmental issues
Whether the listed companies and their subsidiaries were key pollutant discharging organizations announced by
the Environmental Protection Department
□ Yes No
Administrative punishment for environmental problems during the reporting period
Not applicable
Refer to other environmental information disclosed by key pollutant discharge companies
Not applicable
Measures and effects taken to reduce carbon emissions during the reporting period
□ Applicable Not applicable
Reasons for not disclosing other environmental information
Not applicable
II. Social responsibility
The full text of the 2022 ESG & Social Responsibility Report was published on CNINFO
(http://www.cninfo.com.cn) on March 31, 2023.
III. Consolidated and enhanced the achievements in poverty alleviation and rural
revitalization
The Company has not yet carried out targeted poverty alleviation work in the reporting year, and there are no
subsequent targeted poverty alleviation plans.
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Section VI Important Matters
I. Performance of commitments
1. Completed commitments in the reporting period and uncompleted commitments by the end of the
reporting period by the Company's actual controller, shareholders, related parties, acquirers, the Company
and other committed related parties
Applicable □ Not applicable
Reasons for Commitment Commitment Commitment Commitment
Commitment content Performance
commitments Party type time period
Mr. Wu Yongqiang, the actual controller of
the Company, has promised that during the
Commitments period of being the controlling shareholder
made during Commitments and/or actual controller of the Company, Fulfill the
Wu Long-term
the initial to horizontal he would not directly or indirectly engage 2006/06/12 commitment
Yongqiang effective
public offering competition in any business which was the same, strictly
or refinancing 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
Commitments shareholder, has promised not to directly
made during Commitments or indirectly engage in any business which Fulfill the
Long-term
the initial Ji Shuhai to horizontal was the same, similar or substantially 2006/06/12 commitment
effective
public offering competition competitive with the main business of the strictly
or refinancing 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
means.
2. I fully supported and cooperated with
the Company in regulating the duty
consumption behavior of directors and
senior executives. Any duty consumption
behaviors would occur within the scope
Commitments All directors necessary for fulfilling my duty to the
made during and senior Company. I strictly accepted the Fulfill the
Other
the initial executives supervision and management of the 2020/04/29 On-going commitment
commitments
public offering of the Company to avoid extravagance or strictly
or refinancing Company excessive consumption.
3. I would strictly abide by the relevant
laws and regulations, the regulations and
rules of the CSRC, the stock exchange and
other regulatory institutions as well as the
requirements of the Company's rules and
regulations on the code of conduct of
directors and senior executives. Besides, I
would not use the Company's assets to
engage in investment and consumption
activities unrelated to the performance of
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my duties.
4. I would try my best to make the
Company implement the compensation
demand return measures.
5. I would work hard to link the
compensation system formulated by the
Board of Directors or the Compensation
Committee with the implementation of the
Company's compensation return measures.
At the same time, I would vote in favor of
the compensation system proposal when
the Board of Directors and the General
Meeting of Shareholders of the Company
deliberated (if I have vote/voting right).
6. If the Company would implement the
employee equity incentive in the future, I
would fully support the Company to link
the arrangement of exercise conditions of
the employee incentive with the
implementation of the Company's
compensation return measures. At the
same time, I would vote in favor of the
employee equity incentive proposal when
the Board of Directors and the General
Meeting of Shareholders of the Company
deliberated (if I have vote/voting right).
7. If I violate the above commitments, I
would make an explanation and apologize
publicly at the General Meeting of
Shareholders and the designated
newspapers and magazines designated by
the 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
Commitments
Company implement the compensation
made during Fulfill the
Wu Other demand return measures.
the initial 2020/04/29 On-going commitment
Yongqiang commitments 3. I would work hard to link the
public offering strictly
compensation system formulated by the
or refinancing
Board of Directors or the Compensation
Committee with the implementation of the
Company's compensation return measures.
4. I would work hard to link the exercise
conditions (if any) of the corporate equity
incentive to be published in the future with
the implementation of the Company's
compensation return measures.
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5. I would support the relevant proposals
related to the implementation of the
Company's compensation return measures
and would vote for them (if I have voting
right).
6. After the issuance of this commitment,
if there are other requirements in the
relevant provisions of the regulatory
institution on the compensation return
measures and its commitment and the
above commitments could not meet the
relevant requirements of the regulatory
institution, I promise that I would issue a
supplementary commitment in accordance
with the relevant provisions at that time.
7. If I violate the above commitments, I
would make an explanation and apologize
publicly at the General Meeting of
Shareholders and the designated
newspapers and magazines designated by
the CSRC. I voluntarily accept the self-
discipline supervision measures taken by
the stock exchange and China Association
for Public Companies. If my breach of the
commitment causes losses to the Company
or the shareholders, I shall be liable for
compensation in accordance with the law.
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
Commitments Xing'an Road of Dongjiang High-tech
made during Industrial Park in HZZK Hi-tech Industrial Completion
Wu Other
the initial Development Zone to be used by 2020/07/30 of
Yongqiang commitments
public offering "Topband Huizhou No. 2 Industrial Park performance
or refinancing 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
Equity Zheng Sibin, Company's shares (including the shares Six months Completion
Other
incentive Ma Wei, obtained from exercise and other shares) after of
commitments
commitment Wen within six months after the exercise of the exercise performance
Zhaohui and stock option incentive plan in 2018.
Xiang Wei
Whether the
commitment
Yes
was fulfilled on
schedule
If the
commitment
Not applicable
was not
fulfilled within
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the time limit,
the specific
reasons for the
failure and the
next work plan
shall be
explained in
detail.
2. There is profit forecast for corporate assets or projects, and the forecast still lasts in the reporting period,
so the Company made an explanation on whether the original profit forecast for assets or project has been
reached and the reasons
□ Applicable Not applicable
II. Non-operating capital occupation of listed companies by controlling shareholders and their
related parties
□ Applicable Not applicable
There was no non-operating capital occupation of listed companies by controlling shareholders and their related
parties in the reporting period of the Company.
III. External guarantee in violation of regulations
□ Applicable Not applicable
The Company had no external guarantee in violation of regulations during the reporting period.
IV. Explanation of the Board of Directors on the latest "non-standard audit report"
□ Applicable Not applicable
V. Explanation of the "non-standard audit report" of the Accounting Firm in the reporting
period by the Board of Directors, the Board of Supervisors and the independent directors (if
any)
□ Applicable Not applicable
VI. Explanation of changes in accounting policies and estimates or corrections to material
accounting errors compared with the financial report for the previous year
□ Applicable Not applicable
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There were no changes in accounting policies and estimates or corrections to material accounting errors during the
reporting period.
VII. Explanation of any changes of the scope of the consolidated statement compared with
that in the financial report of the last year
Applicable □ Not applicable
There are a total of 39 subsidiary companies included in the scope of the consolidated statement this time, as
shown in IX. Interests in other entities of Section X; during the reporting period, 4 companies were newly
included in the scope of consolidation, of which 4 were newly-established subsidiaries or sub-subsidiaries, as
shown in VIII. Change of consolidation scope of Section X.
VIII. Appointment and dismissal of accounting firms
Accounting firms currently employed
BAKER TILLY International Accounting Firm (Special General
Name of domestic accounting firms
Partnership)
Remuneration of the domestic accounting firm (RMB ten
100
thousand)
Consecutive years for domestic accounting firms to provide audit
4
service
Name of the certified public accountant of the domestic
Chen Zhigang, Zhao Yang
accounting firm
Consecutive years for Certified Public Accountants of domestic
4
accounting firms to provide audit service
Whether to change the current employment of the accounting firm
□ Yes No
Employment of accounting firm for audit of internal controls, financial consultant, or sponsor
□ Applicable Not applicable
IX. Delisting after disclosure of the annual report
□ Applicable Not applicable
X. Matters related to bankruptcy reorganization
□ Applicable Not applicable
There were no matter related to bankruptcy reorganization during the reporting period.
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XI. Major litigation and arbitration matters
□ Applicable Not applicable
The Company had no major litigation and arbitration matters during the reporting period.
XII. Punishment and rectification
□ Applicable Not applicable
The Company had no punishment or rectification during the reporting period.
XIII. Integrity condition of the Company, its controlling shareholders and actual controllers
□ Applicable Not applicable
XIV. Major related transactions
1. Related transactions connected with the daily operation
□ Applicable Not applicable
The Company had no related transactions connected with daily operations during the reporting period.
2. Related transactions arising from acquisition and sale of assets or equity
□ Applicable Not applicable
The Company had no related transaction of acquisition or sale of assets or equity during the reporting period.
3. Related transactions of joint foreign investment
□ Applicable Not applicable
The Company had no related transaction of joint foreign investment during the reporting period.
4. Related creditor's right and debt transaction
□ Applicable Not applicable
The Company had no related creditor's right and debt transaction during the reporting period.
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5. Transactions with associated financial companies
□ Applicable Not applicable
There was no deposit, loan, credit extension or other financial business between the Company and its related
financial companies or between the related parties.
6. Transactions between financial companies controlled by the Company and related parties
□ Applicable Not applicable
There was no deposit, loan, credit or other financial business between financial companies controlled by the
Company and related parties.
7. Other major related transactions
□ Applicable Not applicable
The Company had no other major related transactions during the reporting period.
XV. Major contracts and their performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ Applicable Not applicable
The Company had no trusteeship during the reporting period.
(2) Contracting
□ Applicable Not applicable
The Company had no contracting during the reporting period.
(3) Lease
□ Applicable Not applicable
The Company had no lease during the reporting period.
109
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
2. Material guarantee
Applicable □ Not applicable
Unit: RMB ten thousand
External guarantee of the Company and its subsidiaries (excluding guarantee for subsidiaries)
Whether
Date of
the
disclosure of
Name of Guarantee Actual date Actual Counter Whether guarantee
the relevant Guarantee Collateral Guarantee
guarantee amount of guarantee guarantee it was objects
announcement type (if any) period
object limit occurrence amount (if any) completed were
of guarantee
related
amount limit
parties
Guarantee of the Company to its subsidiaries
Whether
Date of
the
disclosure of
Name of Guarantee Actual date Actual Counter Whether guarantee
the relevant Guarantee Collateral Guarantee
guarantee amount of guarantee guarantee it was objects
announcement type (if any) period
object limit occurrence amount (if any) completed were
of guarantee
related
amount limit
parties
The
tentative
guarantee
period
shall not
Joint
Ningbo exceed 5
2019/1/12 19,000 liability No No
Topband years from
guaranty
the date of
signing
the formal
guarantee
agreement
The
tentative
guarantee
period
shall not
Joint
Ningbo exceed 5
2020/10/20 22,000 2020/11/05 22,000 liability No No
Topband years from
guaranty
the date of
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 Company to its subsidiaries
Date of Whether
Name of Guarantee Actual date Actual Guarantee Collateral Counter Guarantee Whether
disclosure of the
guarantee amount of guarantee type (if any) guarantee period it was
the relevant guarantee
110
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
object announcement limit occurrence amount (if any) completed objects
of guarantee were
amount limit related
parties
Total amount of the corporate guarantee (i.e. the sum of the first three items)
Total amount of guarantee Total actual balance
approved at the end of the of guarantee at the
41,000 22,000
reporting period end of the reporting
(A3+B3+C3) period (A4+B4+C4)
The proportion of the total actual amount of
3.84%
guarantee (A4+B4+C4) in the Company's net assets
Explanation of details of complex guarantee
None
3. Entrusting others for cash asset management
(1) Entrusted financial management
Applicable □ Not applicable
Overview of entrusted financial management during the reporting period
Unit: RMB ten thousand
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 5,478.62 178.62 0 0
products
Total 5,478.62 178.62 0 0
Specific situation of high-risk entrusted financial management with the significant single amount or low security
and poor liquidity
□ Applicable Not applicable
Entrusted financial management was expected to be unable to recover the principal or there were other situations
that may lead to impairment
□ Applicable Not applicable
(2) Entrusted loans
□ Applicable Not applicable
There was no entrusted loan during the reporting period.
111
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
4. Others major contracts
Applicable □ Not applicable
Apprais
Book
al value
value of
of
Name assets Name
assets Transacti Whether
of the involve of Base Implementat
Name of involve on price it is
other Contract d in the appraisa date of Pricing ion by the Date of
contracti Contract d in the (RMB connecte Relations
party signing Contrac l apprais princip end of the disclosur Disclosure index
ng object Contrac ten d hip
of the date t (RMB instituti al (if le reporting e
company t (RMB thousand transacti
contra ten on (if any) period
ten ) on
ct thousan any)
thousan
d) (if
d) (if
any)
any)
Lithium
iron
phosphat
CNINFO
China e battery 2021/12/ Biddin 24,140.0 Not 2021/12/
Topband No Enforced (http://www.cninfo.co
Tower for 28 g 0 applicable 09
m.cn)
power
reservati
on
Lithium
iron
phosphat
CNINFO
China e battery 2022/08/ Biddin 52,421.0 Not Under 2022/07/
Topband No (http://www.cninfo.co
Tower for 26 g 9 applicable execution 28
m.cn)
power
reservati
on
XVI. Explanation of other major matters
□ Applicable Not applicable
There are no other significant matters that need to be explained during the reporting period of the Company.
XVII. 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 RMB 10 million, 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 RMB 10 million; Shenzhen Topband Investment Co., Ltd., a wholly-owned subsidiary of the Company,
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Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
invested to establish a wholly-owned subsidiary, Shenzhen Xiaoyou Aitu Innovation Technology Co., Ltd., with a
registered capital of RMB 10 million;
3. In September 2022, the Company invested to establish a wholly-owned subsidiary, Huizhou Chiding
Technology Co., Ltd., with a registered capital of RMB 5 million, and included it in the scope of consolidated
statements since its establishment.
4. In December 2022, Shenzhen Topband Investment Co., Ltd., a wholly-owned subsidiary of the Company,
invested in Shenzhen Jizhi Laser Technology Co., Ltd. with an investment amount of RMB 2.3529 million and a
shareholding ratio of 10%;
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
Conversion
Issuance of
Stock
Quantity Proportion of new accumulation Other Subtotal Quantity Proportion
dividend
shares fund into
shares
I. Shares with
non-tradable 228,613,617 18.19% 1,200,000 -640,750 559,250 229,172,867 18.05%
conditions
1. Shares
held by the 0 0.00% 0.00%
state
2. Shares
held by state-
0 0.00% 0.00%
owned legal
persons
3. Shares
held by other
228,502,617 18.18% 1,200,000 -640,750 559,250 229,061,867 18.04%
domestic
capital
Including:
shares held by
0.00% 0.00%
domestic legal
persons
113
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Shares
held by
228,502,617 18.18% 1,200,000 -640,750 559,250 229,061,867 18.04%
domestic
natural person
4. Shares
held by foreign 111,000 0.01% 111,000 0.01%
investment
Including:
shares held by
0 0.00% 0.00%
overseas legal
persons
Shares
held by
111,000 0.01% 111,000 0.01%
overseas natural
persons
II. Shares with
unlimited
1,028,364,455 81.81% 12,849,300 -851,250 11,998,050 1,040,362,505 81.95%
tradable
conditions
1. A shares 1,028,364,455 81.81% 12,849,300 -851,250 11,998,050 1,040,362,505 81.95%
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 1,256,978,072 100.00% 14,049,300 12,557,300 1,269,535,372 100.00%
1,492,000
shares
Reasons for share change
Applicable □ Not applicable
The change in the Company's share capital during the reporting period was due to the joint effect of the
following: the third exercising period of the stock option incentive plan in 2018 met the relevant conditions, the
incentive objects increased 14,049,300 shares independent exercise, and 1,492,000 restricted stocks were
repurchased and canceled.
Approval of share change
Applicable □ Not applicable
1. During the third exercising period of the Company's stock option incentive plan in 2018, the
following decision-making procedures have been executed:
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 passed the Proposal on the Third Exercise Period of 2018 Stock Option Incentive Plan
114
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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. On April 26, 2022, the 25th Meeting of
the 7th Board of Directors and the 21st Meeting of the 7th Board of Supervisors deliberated and passed the
Proposal on Adjusting the Exercise Price of the Stock Option Incentive Plan in 2018. 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 third 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.As of May 20, 2022, 14,049,300 stock options involving 543 incentive objects that meet the exercising
conditions has been exercised, increasing the number of share capitals.
2. The Company performed the following decision-making procedures in the repurchase and
cancellation of restricted stocks:
On March 30, 2022, the 23rd (Extraordinary) Meeting of the 7th Board of Directors deliberated and passed
the Proposal on the Proposal on Repurchase and Cancellation of Some Restricted Stocks from Restricted Stock
Incentive Plan in 2021, and agreed to repurchase and cancel 201,000 restricted stocks that have been granted but
not yet unlocked of 10 incentive objects, including Wu Song and Luo Qingshan in the restricted stock incentive
plan in 2021, who resigned from the Company due to personal reasons. The above matters had been deliberated
and passed by the Annual General Meeting of Shareholders in 2021.
On August 18, 2022, the 27th (Extraordinary) Meeting of the 7th Board of Directors and the 22nd
(Extraordinary) Meeting of the 7th Board of Supervisors deliberated and passed the Proposal on the Proposal on
Repurchase and Cancellation of Some Restricted Stocks from Restricted Stock Incentive Plan in 2021, and agreed
to repurchase and cancel 1.291 million restricted stocks that have been granted but not yet unlocked of 66
incentive objects, including Wei Yin and Li Xinwei in the restricted stock incentive plan in 2021, who resigned
from the Company due to personal reasons. The above matters had been deliberated and passed by the Second
Extraordinary General Meeting of Shareholders in 2022.
As of December 27, 2022, a total of 1,492,000 restricted stocks above had been repurchased and canceled in
Shenzhen Branch of China Securities Depository and Clearing Co., Ltd., and the number of share capital
decreased.
Transfer of share change
115
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
Applicable □ Not applicable
In the third exercise period of the 2018 stock option incentive plan, 14,049,300 stock options were approved
to be exercised. As of May 17, 2022, 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.
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
Increase Desterilization Number of
Number of non-
number of non- number of non- non-tradable
Name of tradable shares Reasons for non- Date of lifting sales
tradable shares tradable shares shares at the
shareholder at the beginning trading restriction
in the current in the current end of the
of the period
period period period
Wu Executives lock-
159,006,536 1,330,0001 160,336,536 Not applicable
Yongqiang in shares
Executives lock-
Ji Shuhai 20,488,981 20,488,981 Not applicable
in shares
Executives lock-
Ma Wei 6,567,200 300,000 154,000 6,713,200 Not applicable
in shares
Peng Executives lock-
3,592,674 360,000 100,000 3,852,674 Not applicable
Ganquan in shares
Executives lock-
Zheng Sibin 4,645,977 240,000 133,250 4,752,727 Not applicable
in shares
Wen Executives lock-
1,944,095 180,000 45,750 2,078,345 Not applicable
Zhaohui in shares
Executives lock-
Dai Huijuan 239,709 239,709 Not applicable
in shares
116
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
Executives lock-
Xiang Wei 499,125 120,000 45,750 573,375 Not applicable
in shares
The restrictions on
sales will be lifted at a
ratio of 30%, 30%,
and 40% in 2023,
Incentive 2024, and 2025,
objects of respectively; The
Stock-option-
restricted number of shares that
31,629,320 1,492,000 30,137,320 incentive
stock have been lifted from
restricted stocks
incentive restrictions on sales in
plan this period is the
number of shares that
repurchased and
canceled by retired
employees in 2022.
Total 228,613,617 2,530,000 1,970,750 229,172,867 -- --
Note 1: Mr. Wu Yongqiang's newly added restricted stocks in this period are due to the securities
company's system's failure to timely handle the lifting of restrictions on sales during the process of
transferring shares to pledge. These shares will automatically be lifted from restrictions on sales.
II. Issuance and listing of securities
1. Issuance of securities (excluding preferred shares) during the reporting period
Applicable □ Not applicable
Names of Number of
stocks and Issuance shares Transaction
Date of Issued Date of
their price (or Listing date approved closing Disclosure index
issue quantity disclosure
derivative rate) for listing date
securities and trading
Stock category
CNINFO
Topband 2022/05/13 3.55 11,636,202 2022/05/13 11,636,202 2022/05/12
(http://www.cninfo.com.cn)
CNINFO
Topband 2022/05/16 3.55 2,403,098 2022/05/16 2,403,098 2022/05/12
(http://www.cninfo.com.cn)
CNINFO
Topband 2022/05/17 3.55 10,000 2022/05/17 10,000 2022/05/12
(http://www.cninfo.com.cn)
Convertible bonds, separate-bargaining convertible bonds and corporation bonds
Other derivative securities
Explanation on the issuance of securities (excluding preferred shares) during the reporting period
On March 18, 2022, the 21st Meeting of the 7th Board of Directors of the Company deliberated and passed
the Proposal on the Third Exercise Period of 2018 Stock Option Incentive Plan Meeting the Exercise Conditions
and Exercisable Rights. There are 543 incentive objects in the third exercise period of the 2018 stock option
incentive plan in the Company, in total of 14.0493 million stock options, which meet the exercise conditions and
117
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
can be exercised. The Company plans to adopt the independent exercise mode. After the stock options are
exercised, the share capital will increase to 14.0493 million shares.
2. Changes of total shares of the Company and shareholders structure, and change of the Company's
structure of assets and liabilities
Applicable □ Not applicable
1. Changes in the total number of shares and shareholder structure:
During the reporting period, the share capital was increased by 14,049,300 shares in the third exercise period
of the 2018 stock option incentive plan, and 1,492,000 restricted stocks were repurchased and canceled, which
resulted in an increase of 12,557,300 shares in the total share capital of the Company, from 1,256,978,072 shares
to 1,269,535,372 shares.
2. Changes in the corporate assets and liability structure
As of the end of the period, the total share capital of the Company was 1,269,535,372 shares, and the total
corporate assets at the end of 2022 were RMB 10,364,556,848.34, with an asset liability ratio of 44.83%.
3. Existing internal employee shares
□ Applicable Not applicable
III. Shareholders and actual controllers
1. Number of shareholders and shareholding situation of the Company
Unit: Share
Total Total number
number of of preferred
The total number of
ordinary shareholders
preferred shareholders
Total number of shareholders with voting
whose voting rights were
ordinary at the end of rights
restored at the end of the
shareholders at 106,865 the previous 93,200 restored at the 0 0
previous month before the
the end of the month end of the
disclosure date of the
reporting period before the reporting
annual report (if any) (see
disclosure period (if
Note 8)
date of the any) (see
annual report Note 8)
Shareholding situation of shareholders holding more than 5% or top 10 shareholders
Number of Changes in Number of Number of Pledge, marking or freezing
Name of Nature of Shareholding shares held increase or shares with shares with
shareholder shareholders ratio at the end of decrease in unlimited unlimited Share status Quantity
the the reporting tradable tradable
118
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
reporting period conditions conditions
period
Domestic
Wu Yongqiang natural 16.70% 212,008,715 0 160,336,536 53,002,179 Pledge 47,800,000
person
Hong Kong
Securities Overseas
3.07% 38,935,943 -58,778,207 0 38,935,943
Clearing legal person
Company Ltd.
Domestic
Ji Shuhai natural 2.15% 27,318,642 0 20,488,981 6,829,661
person
Domestic
Xie Renguo natural 1.81% 22,978,388 1,828,800 0 22,978,388
person
Orient Securities
Co., Ltd. -
Zhonggeng Value
Other 1.40% 17,774,414 9,538,388 0 17,774,414
Pioneer Equity
Securities
Investment Fund
Basic
Endowment
Other 1.36% 17,284,781 6,708,025 0 17,284,781
Insurance Fund
1206 Portfolio
Dajia Life
Insurance Co.,
Other 1.02% 12,927,800 9,374,938 0 12,927,800
Ltd. - Universal
Product
China
International
Capital
Corporation
Limited - China
Construction Other 0.91% 11,567,525 11,567,525 0 11,567,525
Bank - CICC
Emerging Equity
Collective Asset
Management
Plan
Domestic
Ma Wei natural 0.71% 8,950,934 400,000 6,713,200 2,237,734
person
AMCM - self- Overseas
0.61% 7,702,426 7,702,426 0 7,702,426
own funds legal person
The top 10 shareholders of
strategic investors or general
legal persons due to placement Not applicable
of new shares (if any) (see Note
3)
Explanation of the above
shareholders' relationship or Not applicable
concerted action
Explanation of the above
shareholders' Not applicable
entrusting/entrusted voting
119
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
rights and waiver of voting
rights
Special explanations for the
existence of special repurchase
accounts among the top 10 Not applicable
shareholders (if any) (see Note
10)
Shareholding of the top 10 shareholders with unlimited tradable conditions
Number of shares held with unlimited tradable conditions at Type of shares
Name of shareholder
the end of the reporting period Type of shares Quantity
Wu Yongqiang 51,672,179 A shares 51,672,179
Hong Kong Securities Clearing
38,935,943 A shares 38,935,943
Company Ltd.
Xie Renguo 22,978,388 A shares 22,978,388
Orient Securities Co., Ltd. - Zhonggeng
Value Pioneer Equity Securities 17,774,414 A shares 17,774,414
Investment Fund
Basic Endowment Insurance Fund 1206
17,284,781 A shares 17,284,781
Portfolio
Dajia Life Insurance Co., Ltd. -
12,927,800 A shares 12,927,800
Universal Product
China International Capital Corporation
Limited - China Construction Bank -
11,567,525 A shares 11,567,525
CICC Emerging Equity Collective Asset
Management Plan
AMCM - self-own funds 7,702,426 A shares 7,702,426
Ji Shuhai 6,829,661 A shares 6,829,661
#Shenzhen Sai Shuo Fund Management
Co., Ltd. - Sai Shuo No. 1 Private 6,080,000 A shares 6,080,000
Securities Investment Fund
Explanation of the relationship or
concerted action between the top 10
shareholders with unlimited tradable
Not applicable
shares and between the top 10
shareholders with unlimited tradable
shares and the top 10 shareholders
Explanation of the participation of the
top 10 ordinary shareholders in
Shareholder Mr. Xie Renguo holds 14,707,103 shares through the credit securities account.
securities margin trading (if any) (see
Note 4)
Whether the top 10 ordinary shareholders and the top 10 ordinary shareholders with unlimited sales conditions
have conducted the agreed repurchase transactions during the reporting period
□ Yes No
The top 10 ordinary shareholders and the top 10 ordinary shareholders with unlimited sales conditions did not
carry out the agreed repurchase transaction during the reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholder: controlling by natural person
120
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Type of controlling shareholder: natural person
Whether the right of residence in other
Name of controlling shareholder Nationality
countries or regions was obtained
Wu Yongqiang China No
Served as the chairman and general manager of Shenzhen
Main position and occupation
Topband Co., Ltd. since 2009
Equity of other domestic and foreign listed companies holding shares
None
or participating in shares during the reporting period
Change of controlling shareholders during the reporting period
□ Applicable Not applicable
The controlling shareholder of the Company did not change during the reporting period.
3. The Company's actual controller and its person acting in concert
Nature of actual controller: domestic natural person
Type of actual controller: natural person
Whether the right of residence
Relationship with actual
Name of actual controller Nationality in other countries or regions
controller
was obtained
Wu Yongqiang In person China No
Served as the chairman and general manager of Shenzhen Topband Co., Ltd. since
Main position and occupation
2009
Situation of listed companies both at home and
None
abroad that have been held in the past 10 years
Change of actual controller during the reporting period
□ Applicable Not applicable
The actual controller of the Company did not change during the reporting period.
Block Diagram of Property Rights and Control Relationship between the Company and the Actual Controller
Wu
Yongqiang
Shenzhen Topband Co., Ltd.
Actual controller controls the Company by means of trust or other ways of assets management
□ Applicable Not applicable
121
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4. The cumulative number of pledged shares held by the controlling shareholder or the largest shareholder
and its persons acting in concert accounts for 80% of the total number of shares held by them in the
Company
□ Applicable Not applicable
5. Other institutional shareholders holding over 10% of shares
□ Applicable Not applicable
6. Limited reduction of shares of controlling shareholders, actual controllers, reorganizers and other
committed entities
□ Applicable Not applicable
IV. The specific implementation of targeted share repurchase during the reporting period
Implementation progress of share repurchase
Applicable □ Not applicable
Proportion of
repurchased
Amount of shares to
Number of Number of
Scheme Proportion to shares to be Proposed underlying
shares to be shares
disclosure total share repurchased repurchase Repurchase purpose stocks
repurchased repurchased
time capital (RMB ten period involved in
(shares) (shares)
thousand) the equity
incentive plan
(if any)
The repurchased company
shares are all used to
implement equity
incentives or employee
stock ownership plans for
core employees. If the
Company fails to
implement the
2,500,000- 0.1989%- 2022/3/18- aforementioned purposes
2022/03/22 4,000-6,000 5,181,200 0.00%
3,750,000 0.2983% 2023/3/17 within 36 months after the
completion of the share
repurchase, or if the
repurchased shares are not
fully used for the
aforementioned purposes,
the unused portion will be
canceled in accordance
with the law.
Progress in the implementation of the reduction of share repurchase through centralized bid trading
122
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
□ Applicable Not applicable
Section VIII Information on Preferred Shares
□ Applicable Not applicable
The Company did not have preferred shares during the reporting period.
123
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
Section IX Relevant Information of Bonds
□ Applicable Not applicable
124
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
Section X Financial Report
I. Audit report
Type of audit opinion Standard unqualified opinion
Date of signing the audit report March 29, 2023
BAKER TILLY International Accounting Firm (Special General
Name of audit Institution
Partnership)
Document number of audit report TZYZ [2023] No. 17594
Name of certified public accountant Chen Zhigang, Zhao Yang
Text of audit report
All shareholders of Shenzhen Topband Co., Ltd.:
I. Audit Opinion
We have audited the attached financial statements of Shenzhen Topband Co., Ltd. (hereinafter referred to as
Topband), including the consolidated and parent company balance sheet as of December 31, 2022, and the
consolidated and parent company income statement, the consolidated and parent company cash flow statement,
and the consolidated and parent company statement of change in shareholder equity of 2022, as well as the notes
to financial statements.
In our opinions, the attached financial statements have been prepared in accordance with the Accounting
Standard for Business Enterprises in all significant aspects, and given fair views on the consolidated and parent
company financial positions of Topband as of December 31, 2022, and the consolidated and parent company
operating results as well as cash flow of 2022.
II. Basis for the formation of audit opinions
We have carried out audit in compliance with Auditing Standards for Certified Public Accountants of China.
Our responsibility under these standards is further described in "Certified Public Accountants' Responsibility for
the Financial Statements" in the audit report. In accordance with China Code of Ethics for Certified Public
Accountants, we are independent of Topband and have performed other responsibilities in professional ethics. We
believe that the audit evidence obtained by us is sufficient and appropriate and has provided a basis for the
expression of our audit opinion.
125
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
III. Key Audit Matters
The key items for audit are items that we consider the most important for the audit of the financial statements
of the current period according to the professional judgment. The response of these items is based on an audit of
the overall financial statements and the formation of audit opinions, and we do not individually express views on
these items.
Key Audit Matters How are the matter handled in the audit
1. Revenue recognition
The main audit procedures we have carried out for
revenue recognition include, but are not limited to the
following:
(1) Understand, evaluate, and test the effectiveness of
internal control design and operation related to sales and
collection of Topband;
(2) Understand revenue recognition policies through
interviews with management, examine relevant clauses of
In 2022, the operating income of Topband
major customer contracts, analyze and evaluate whether the
was RMB 8,875.0991 million. Considering that
actual revenue recognition policies are appropriate, and review
operating income is a key operating indicator of
whether relevant accounting policies are consistently applied;
Topband, there may be potential misstatements in
(3) Query and understand the background information of
whether the sales revenue of products is included
major customers or new customers through public channels,
in the appropriate accounting period. Therefore,
such as business registration materials, and confirm whether
we take the recognition of operating income as a
there are potential unrecognized related party relationships
key audit matter.
between major customers and Topband and related parties;
Please refer to the notes to the financial
(4) Analyze the rationality of changes in the sales
statements: "(XXIX) Revenue" of "III. Important
structure of main products, and the gross profit margin
accounting policies and estimates", "(XXXX)
changes of main products and customers compared with the
Operating income and cost" of "VI. Notes to
gross profit margin of the same period in history and the same
items of consolidated financial statement", and
industry, and review the rationality of sales revenue;
"(IV) Operating income and cost" of "XVI. Notes
to main items of financial statements of the parent (5) Audit and confirm the balance of accounts receivable
company". of major customers by letter according to accounts receivable,
and perform alternative tests on customers who have not
responded to the letter;
(6) Select samples, check the relevant documents of sales
revenue transactions, such as sales contracts (orders), delivery
notes, receipts (warehouse receipts), customs declarations,
account statements, and sales invoices, and verify whether the
confirmed sales revenue is true;
(7) Select samples from the sales revenue transactions
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Key Audit Matters How are the matter handled in the audit
recorded before and after the balance sheet date, check
supporting vouchers for revenue recognition under each
model, and assess whether the sales revenue is recorded in an
appropriate accounting period;
Key Audit Matters How are the matter handled in the audit
2. Receivables impairment
The main audit procedures we have carried out for the
impairment of accounts receivable include, but are not limited
to the following:
(1) Understand, evaluate, and test the effectiveness of
internal control design and operation related to Topband credit
policy and accounts receivable management;
(2) Analyze the rationality of the accounting policies for
At the end of 2022, the book value of accrual of bad debt reserves for receivables, including the
receivables of Topband was RMB 2,549.734 basis for determining the portfolio of receivables, expected
million. Due to the large book value of credit loss rate, judgment of significant individual amounts,
receivables, the evaluation of bad debt reserves judgment of individual accrual of bad debt reserves, and
involves significant accounting estimates and review whether them comply with relevant accounting
judgments by management. Therefore, we take policies;
bad debt reserves for receivables as a key audit (3) Obtain accounts receivable aging analysis table and
matter. bad debt provision table, analyze and check the rationality and
Please refer to the notes to the financial accuracy of accounts receivable aging division and bad debt
statements: "(XI) Receivables" of "III. Important provision;
accounting policies and estimates", "(IV) (4) Analyze and calculate the ratio between the amount of
Receivables" of "VI. Notes to items of bad debt reserves on the balance sheet date and the balance of
consolidated financial statement", and "(I) receivables, compare the amount of bad debt reserves accrued
Receivables" of "XVI. Notes to main items of in the previous period with the actual amount incurred, and
financial statements of the parent company". analyze whether the accrual of bad debt reserves for
receivables is sufficient;
(5) Analyze the rationality of the scale of receivables for
major customers based on the credit period of receivables,
understand the reasonable reasons for receivables beyond the
credit period, and identify whether there are any situations that
affect the evaluation results of bad debt reserves for
receivables of Topband.
IV. Other Information
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Topband's management (hereinafter referred to as "management") is responsible for other information. Other
information includes information covered in the 2022 annual report, but does not include financial statements and
our audit reports.
We do not cover other information on the audit opinions issued for the financial statements, nor do we have
any form of attestation conclusions on other information.
In conjunction with our audit of the financial statements, our responsibility is to read other information, and
in this process, consider whether other information is materially inconsistent with the financial statements or what
we have learned in the audit process or it appears to be significant misstatement. Based on the work we have
carried out, we should report the fact if we determine the existence of a significant misstatement in other
information. In this regard, we have nothing to report.
V. Responsibility of the management and the governance to the financial statements
The management is responsible for preparing the financial statements in accordance with the provisions of
the Accounting Standard for Business Enterprises to make it fair reflection, then designing, implementing and
maintaining the necessary internal controls so that the financial statements do not have any significant
misstatement resulting from fraud or error.
When the financial statements were prepared, the Management was responsible for assessing Topband's
ability to continue as a going concern, disclosing the matters related to the going concern (if applicable) and
applying the going concern assumption unless the Management planned to conduct liquidation, terminated
operation or had no other practical option.
The governance is responsible for overseeing the financial reporting process of Topband.
VI. Certified public accountant's responsibility for audit of financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an audit report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the audit standards will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
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As part of an audit in accordance with the audits standards, we exercise professional judgment and maintain
professional scepticism throughout the audit. Meanwhile, we also execute the following works:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. Since fraud may involve collusion, forgery, intentional
omission, false representation or not be subject to internal control, the risk of failure to find the significant
misstatement due to fraud is higher than the risk of failure to find a major misstatement due to errors.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
(4) Conclude on the appropriateness of using the going concern assumption by the management. At the same
time, on the basis of the acquired audit evidence, make a conclusion whether there is a significant uncertainty in
matters or circumstances that cause significant doubts about constant operational capacity of Topband. If we come
to the conclusion that there are significant uncertainties, the audit guidelines require that we draw the attention of
the report users to the relevant disclosures in the financial statements in the audit report; if the disclosure is not
sufficient, we should issue a modified audit report. Our conclusion is based on the information that was available
as of the date of the audit report. However, future events or conditions may cause Topband to discontinue
operation.
(5) Evaluate the overall presentation, structure and content of the financial statements and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient and appropriate audit evidence on the financial information of entities or business
activities under Topband to make an audit opinion on the financial statements. We are responsible for guiding,
supervising and implementing the Company's audit and bear full responsibility for the audit opinion.
We communicate with the governance regarding the planned scope and timing of the audit, significant audit
findings and other matters, including any notable deficiencies in internal control that we identify during audit.
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We also provide a statement to governance regarding compliance with the independence-related professional
ethics requirements and communicate with the governance all the relationships and other matters that may
reasonably be considered to affect our independence, as well as the relevant preventive measures.
In items communicated with the governance, we determine those items most important to the audit of the
financial statements of the current period and constitute a key item for audit. We describe these items in the audit
report unless laws and regulations prohibit the disclosure of these items, or in rare cases, the negative
consequences of communicating an item in the audit report are beyond the benefits of public interest, we
determine that the item should not be communicated in the audit report.
II. Financial Statements
The unit of statements in the financial notes is: RMB
1. Consolidated Balance Sheet
Prepared by: Shenzhen Topband Co., Ltd.
December 31, 2022
Unit: RMB
Items December 31, 2022 January 1, 2022
Current assets:
Monetary capital 1,403,026,071.34 1,767,580,056.07
Settlement of provisions
Lending funds
Tradable financial assets 342,959,450.31 214,999,336.74
Derivative financial assets
Notes receivable 51,791,758.90 161,659,470.21
Accounts receivable 2,549,734,039.66 2,188,161,465.48
Receivables financing 254,988,202.60 36,902,507.85
Prepayments 53,005,656.95 41,320,285.02
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Other receivables 77,743,150.98 50,156,221.82
Including: interest receivable
Dividends receivable
Repurchase of financial assets for resale
Inventory 1,992,952,212.53 2,184,402,766.04
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Contractual assets
Assets held for sale
Non-current assets due within one year
Other current assets 155,126,777.31 113,071,619.93
Total current assets 6,881,327,320.58 6,758,253,729.16
Non-current assets:
Loans and advances granted
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 23,550,658.91 26,119,127.82
Other equity instrument investment
Other non-current financial assets
Investment property 106,242,777.85 86,975,114.31
Fixed assets 1,840,358,093.74 1,299,517,887.54
Construction in progress 234,775,312.11 495,248,025.93
Productive biological assets 0.00
Oil and gas assets 0.00
Right-of-use assets 106,196,901.87 58,168,151.88
Intangible assets 547,316,314.57 435,639,773.29
Development expenditure 100,947,313.14 66,358,407.48
Goodwill 110,732,042.84 110,732,042.84
Long-term deferred expenses 132,221,565.23 95,151,616.38
Deferred tax assets 108,517,258.70 102,787,097.36
Other non-current assets 172,371,288.80 72,041,428.40
Total non-current assets 3,483,229,527.76 2,848,738,673.23
Total assets 10,364,556,848.34 9,606,992,402.39
Current liabilities:
Short-term loans 283,351,495.57 409,531,107.26
Loan from the Central Bank
Borrowed funds
Tradable financial liabilities
Derivative financial liabilities
Notes payable 1,065,652,340.80 1,231,106,148.24
Accounts payable 1,606,446,204.02 1,511,284,996.56
Accounts collected in advance 1,130,165.23 353,895.16
Contractual liabilities 138,281,929.17 93,328,006.70
Financial assets sold for repurchase
Deposit absorption and interbank deposit
Acting trading securities
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Acting underwriting securities
Employee compensation payable 206,979,773.15 198,863,796.02
Taxes payable 88,405,514.65 16,254,542.45
Other account payable 335,047,520.52 318,632,275.66
Including: interest payable
Dividends payable
Service charges and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 75,356,303.72 47,721,695.74
Other current liabilities 22,476,430.74 107,064,543.82
Total current liabilities 3,823,127,677.57 3,934,141,007.61
Non-current liabilities:
Insurance contract reserve
Long-term loans 581,500,000.00 475,020,000.00
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities 73,610,791.09 40,290,402.14
Long-term payables
Long-term employee compensation payable
Estimated liabilities
Deferred income 13,370,250.14 14,385,200.00
Deferred tax liabilities 51,144,154.13 26,280,456.34
Other non-current liabilities
Total non-current liabilities 719,625,195.36 555,976,058.48
Total liabilities 4,542,752,872.93 4,490,117,066.09
Owner's equity:
Share capital 1,269,535,372.00 1,256,978,072.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital public reserve 2,266,142,198.44 2,140,053,149.74
Minus: treasury shares 284,257,854.91 242,525,433.60
Other comprehensive income -8,479,622.35 -91,831,496.88
Special reserve 0.00 0.00
Surplus reserves 214,764,194.14 186,397,631.76
General risk provision 0.00 0.00
Retained earnings 2,270,819,171.01 1,779,243,483.61
Total owner's equity attributable to the parent
5,728,523,458.33 5,028,315,406.63
company
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Minority shareholders' equity 93,280,517.08 88,559,929.67
Total owners' equity 5,821,803,975.41 5,116,875,336.30
Total liabilities and owners' equity 10,364,556,848.34 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: RMB
Items December 31, 2022 January 1, 2022
Current assets:
Monetary capital 417,402,306.51 1,110,855,192.86
Tradable financial assets 243,989,473.48 187,011,836.74
Derivative financial assets
Notes receivable 15,799,157.89 50,356,382.14
Accounts receivable 1,746,854,951.82 1,496,921,254.34
Receivables financing 188,468,485.11 13,909,195.16
Prepayments 40,076,367.47 11,308,739.07
Other receivables 902,544,005.07 141,619,648.22
Including: interest receivable
Dividends receivable
Inventory 182,264,664.43 343,548,795.39
Contractual assets
Assets held for sale
Non-current assets due within one year
Other current assets 14,074,292.52
Total current assets 3,737,399,411.78 3,369,605,336.44
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 3,958,403,119.94 2,947,556,465.89
Other equity instrument investment
Other non-current financial assets
Investment property
Fixed assets 137,310,278.44 145,229,190.35
Construction in progress 22,775,996.65 6,486,761.99
Productive biological assets
Oil and gas assets
Right-of-use assets 14,765,367.57 554,157.99
Intangible assets 164,654,805.95 161,311,708.12
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Development expenditure 53,698,954.16 43,638,980.21
Goodwill
Long-term deferred expenses 16,270,648.51 20,573,462.40
Deferred tax assets 31,434,169.93 55,938,073.37
Other non-current assets 8,686,283.92 8,160,527.96
Total non-current assets 4,407,999,625.07 3,389,449,328.28
Total assets 8,145,399,036.85 6,759,054,664.72
Current liabilities:
Short-term loans 10,000.00 153,591,779.50
Tradable financial liabilities
Derivative financial liabilities
Notes payable 968,645,962.43 990,389,640.00
Accounts payable 610,163,494.08 368,537,246.64
Accounts collected in advance
Contractual liabilities 50,483,032.75 37,061,438.92
Employee compensation payable 107,895,045.76 105,820,526.01
Taxes payable 23,225,286.94 10,652,318.75
Other account payable 1,258,071,297.67 568,675,865.75
Including: interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 6,896,279.13 326,602.76
Other current liabilities 5,163,830.86 38,799,661.21
Total current liabilities 3,030,554,229.62 2,273,855,079.54
Non-current liabilities:
Long-term loans 300,000,000.00
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities 7,788,265.09 221,776.58
Long-term payables
Long-term employee compensation payable
Estimated liabilities
Deferred income 5,583,950.14 9,053,500.00
Deferred tax liabilities 30,395,858.72 20,935,893.00
Other non-current liabilities
Total non-current liabilities 343,768,073.95 30,211,169.58
Total liabilities 3,374,322,303.57 2,304,066,249.12
Owner's equity:
Share capital 1,269,535,372.00 1,256,978,072.00
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Other equity instruments
Including: preferred shares
Perpetual bonds
Capital public reserve 2,314,366,149.44 2,189,685,216.22
Minus: treasury shares 284,257,854.91 242,525,433.60
Other comprehensive income 0.00 370,109.41
Special reserve
Surplus reserves 214,735,675.68 186,369,113.30
Retained earnings 1,256,697,391.07 1,064,111,338.27
Total owners' equity 4,771,076,733.28 4,454,988,415.60
Total liabilities and owners' equity 8,145,399,036.85 6,759,054,664.72
3. Consolidated income statement
Unit: RMB
Items 2022 2021
I. Total operating income 8,875,099,137.06 7,767,034,835.03
Including: operating income 8,875,099,137.06 7,767,034,835.03
Interest income
Premium earned
Service charge and commission income
II. Total operating cost 8,245,478,544.66 7,124,228,676.16
Including: operating cost 7,087,226,986.88 6,114,531,354.87
Interest expense
Service charge and commission payment
Surrender value
Net compensation expenditure
Net reserve amount set aside for insurance liability contracts
Policy dividend payment
Reinsurance expenses
Taxes and surcharges 59,394,768.35 29,053,867.71
Selling expenses 260,181,170.88 208,562,819.10
Management expenses 369,502,745.36 258,345,031.89
R&D expenses 592,346,136.09 449,950,052.11
Finance expenses -123,173,262.90 63,785,550.48
Including: interest expenses 35,262,744.35 24,677,917.47
Interest income 22,969,451.22 8,722,530.08
Plus: other income 39,182,827.95 26,208,046.69
Investment loss (loss marked with "-") 564,908.47 54,827,083.25
Including: income from investment in associated enterprises and joint ventures -2,568,468.91 -2,883,400.31
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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 (loss marked with "-") 87,818,625.99 85,670,316.15
Credit impairment loss (loss marked with "-") -49,371,999.14 -85,593,629.08
Asset impairment loss (loss marked with "-") -69,957,962.94 -99,995,344.56
Income from disposal of assets (loss marked with "-") -1,612,652.02 -404,389.75
III. Operating profits (loss marked with "-") 636,244,340.71 623,518,241.57
Plus: non-operating income 6,343,380.95 2,260,355.74
Minus: non-operating expenses 9,310,001.33 5,538,292.94
IV. Total profit (total loss marked with "-") 633,277,720.33 620,240,304.37
Minus: income tax expense 51,508,213.48 48,127,689.76
V. Net profit (net loss marked with "-") 581,769,506.85 572,112,614.61
(I) Classification according to business continuity
1. Net profit from continuing operations (net loss marked with "-") 581,769,506.85 572,112,614.61
2. Net profit of discontinued operation (net loss marked with "-")
(II) Classification according to ownership
1. Net profits attributable to shareholders of the parent company 582,655,258.38 564,964,282.18
2. Profits and losses of minority shareholders -885,751.53 7,148,332.43
VI. Net after-tax amount of other comprehensive income 83,351,874.53 -67,276,266.91
Net after-tax amount of other comprehensive income attributable to the owner of the
83,351,874.53 -67,276,266.91
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 83,351,874.53 -67,276,266.91
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 83,721,983.94 -62,076,801.28
7. Others -370,109.41 -5,199,465.63
Net after-tax amount of other comprehensive income attributed to the minority of
shareholders
VII. Total comprehensive income 665,121,381.38 504,836,347.70
Total consolidated income attributable to the owners of the parent company 666,007,132.91 497,688,015.27
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Total consolidated income attributable to minority shareholders -885,751.53 7,148,332.43
VIII. Earnings per share:
(I) Basic earnings per share 0.46 0.47
(II) Diluted earnings per share 0.46 0.47
In case of consolidation under the same control in the current period, the net profit realized by the combined party
before the consolidation is RMB 0.00, and the net profit realized by the combined party in the previous period is
RMB 0.00.
Legal Representative: Wu Yongqiang Accounting Head: Xiang Wei Accounting Department Head: Luo Muchen
4. Income statement of parent company
Unit: RMB
Items 2022 2021
I. Operating income 5,202,648,644.72 4,564,044,890.75
Minus: operating cost 4,377,885,965.16 3,792,141,796.05
Taxes and surcharges 27,844,377.41 12,625,707.59
Selling expenses 161,446,390.50 130,293,799.46
Management expenses 199,330,817.89 151,795,451.87
R&D expenses 288,197,868.48 186,514,426.05
Finance expenses -97,593,261.74 37,274,271.38
Including: interest expenses 14,742,345.29 12,147,542.62
Interest income 12,642,025.47 5,763,930.72
Plus: other income 18,196,376.76 8,563,323.92
Investment loss (loss marked with "-") 2,905,522.38 69,299,464.03
Including: income from investment in associated enterprises and joint ventures -88,713.69 -527,468.28
Income from derecognition of financial assets measured at amortized cost
(loss marked with "-")
Net exposure hedge gain (loss marked with "-")
Loss from fair value change (loss marked with "-") 56,977,636.74 85,670,316.15
Credit impairment loss (loss marked with "-") -7,750,950.30 -12,263,755.40
Asset impairment loss (loss marked with "-") -4,062,161.66 -8,393,828.43
Income from disposal of assets (loss marked with "-") 73,024.55 870,158.85
II. Operating profit (loss marked with "-") 311,875,935.49 397,145,117.47
Plus: non-operating income 3,353,859.66 406,354.97
Minus: non-operating expenses 3,072,574.72 3,621,199.53
III. Total profit (total loss marked with "-") 312,157,220.43 393,930,272.91
Minus: income tax expense 28,491,596.65 43,553,530.65
IV. Net profit (net loss marked with "-") 283,665,623.78 350,376,742.26
(I) Net profit from continuing operation (net loss marked with "-") 283,665,623.78 350,376,742.26
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(II) Net profit from termination of operation (net loss marked with "-")
V. Net after-tax amount of other comprehensive income -370,109.41 -5,199,465.63
(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 -370,109.41 -5,199,465.63
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
7. Others -370,109.41 -5,199,465.63
VI. Total comprehensive income 283,295,514.37 345,177,276.63
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Items 2022 2021
I. Cash flow from operating activities:
Cash received from sales of goods or rendering of services 8,626,949,263.26 7,379,366,133.60
Net increase in customer deposits and interbank deposits
Net increase in borrowing from the central bank
Net increase in funds borrowed from other financial institutions
Cash from receipt of original insurance contract premiums
Receipt of net cash for reinsurance operations
Net increase in savings and investment funds of the insured
Cash from receipt of interest, service charges and commissions
Net increase in borrowed funds
Net increase in funds from repurchase operations
Net cash received for acting trading securities
Tax rebates received 438,361,600.33 408,342,014.70
Other cash received related to operating activities 128,901,892.62 89,743,482.16
Subtotal of cash inflow from operating activities 9,194,212,756.21 7,877,451,630.46
Cash paid for purchasing goods and accepting labor services 6,729,462,234.98 6,328,279,127.11
Net increase in loans and advances of clients
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Net increase in deposits with central banks and interbanks
Cash in compensation funds paid for the original insurance contract
Net increase in lending funds
Cash for payment of interest, service charges and commissions
Cash for payment of policy dividends
Cash paid to and for employees 1,486,982,071.31 1,315,339,474.82
Various taxes paid 223,823,801.46 156,592,618.79
Other cash paid in connection with operating activities 262,889,572.13 301,802,955.60
Subtotal of cash outflow from operating activities 8,703,157,679.88 8,102,014,176.32
Net cash flow from operating activities 491,055,076.33 -224,562,545.86
II. Cash flow from investing activities:
Cash received from investment recovery 57,000,000.00 526,447,603.26
Cash received as return on an investment 3,133,377.38 57,710,483.56
Net cash recouped from disposal of fixed assets, intangible assets, and other long-term
3,500,006.86 6,913,824.99
assets
Net cash received from disposal of subsidiaries and other business units
Other cash received relating to investment activities
Subtotal of cash inflow from investment activities 63,633,384.24 591,071,911.81
Cash paid for the purchase and construction of fixed assets, intangible assets and other
734,670,701.34 854,193,345.35
long-term assets
Cash paid for investment 97,032,200.02 470,500,000.00
Net increase in pledged loans
Net cash obtained from subsidiaries and other business units 14,549,770.03
Other cash paid related to investment activities 9,000,000.00
Subtotal of cash outflow from investment activities 840,702,901.36 1,339,243,115.38
Net cash flow from investment activities -777,069,517.12 -748,171,203.57
III. Cash flow from financing activities:
Cash received from absorbing investment 49,875,015.00 1,341,854,327.60
Including: cash received by subsidiaries' absorption of minority shareholders'
21,246,898.25
investment
Cash received from loan 1,048,010,000.00 1,026,376,959.97
Other cash received relating to financing activities 20,898,938.99 27,248,871.75
Subtotal of cash inflow from financing activities 1,118,783,953.99 2,395,480,159.32
Cash paid for repayments of debts 1,054,629,259.95 726,099,200.02
Cash paid to distribute dividends, profits or pay interest 92,131,933.80 86,470,656.52
Including: dividends and profits paid by subsidiaries to minority shareholders 5,197,835.08
Other cash paid related to financing activities 96,944,669.54 40,197,743.20
Subtotal of cash outflow from financing activities 1,243,705,863.29 852,767,599.74
Net cash flow from financing activities -124,921,909.30 1,542,712,559.58
IV. Impact of exchange rate fluctuations on cash and cash equivalents 49,113,085.12 -30,709,686.87
V. Net increase in cash and cash equivalents -361,823,264.97 539,269,123.28
Plus: balance of cash and cash equivalents at the beginning of the period 1,736,104,958.20 1,196,835,834.92
VI. Balance of cash and cash equivalents at the end of the period 1,374,281,693.23 1,736,104,958.20
6. Cash flow statement of the parent company
Unit: RMB
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Items 2022 2021
I. Cash flow from operating activities:
Cash received from sales of goods or rendering of services 4,734,306,171.71 4,281,179,459.86
Tax rebates received 227,237,393.79 257,161,861.26
Other cash received related to operating activities 3,336,116,773.24 686,667,031.96
Subtotal of cash inflow from operating activities 8,297,660,338.74 5,225,008,353.08
Cash paid for purchasing goods and accepting labor services 3,894,502,672.61 3,729,736,400.30
Cash paid to and for employees 625,644,473.84 456,452,513.20
Various taxes paid 47,969,809.00 74,299,409.46
Other cash paid in connection with operating activities 3,442,743,241.93 1,073,422,053.80
Subtotal of cash outflow from operating activities 8,010,860,197.38 5,333,910,376.76
Net cash flow from operating activities 286,800,141.36 -108,902,023.68
II. Cash flow from investing activities:
Cash received from investment recovery 50,792,461.51
Cash received as return on an investment 2,994,236.07 69,826,932.31
Net cash recouped from disposal of fixed assets, intangible assets, and other
2,707,761.44 3,706,391.67
long-term assets
Net cash received from disposal of subsidiaries and other business units
Other cash received relating to investment activities
Subtotal of cash inflow from investment activities 5,701,997.51 124,325,785.49
Cash paid for the purchase and construction of fixed assets, intangible assets
113,986,390.44 132,018,239.35
and other long-term assets
Cash paid for investment 975,275,000.00 465,477,642.93
Net cash obtained from subsidiaries and other business units
Other cash paid related to investment activities
Subtotal of cash outflow from investment activities 1,089,261,390.44 597,495,882.28
Net cash flow from investment activities -1,083,559,392.93 -473,170,096.79
III. Cash flow from financing activities:
Cash received from absorbing investment 49,875,015.00 1,320,607,429.35
Cash received from loan 718,010,000.00 371,000,000.00
Other cash received relating to financing activities 16,164,446.24 12,264,121.98
Subtotal of cash inflow from financing activities 784,049,461.24 1,703,871,551.33
Cash paid for repayments of debts 568,000,000.00 623,151,500.00
Cash paid to distribute dividends, profits or pay interest 74,343,060.81 68,705,946.59
Other cash paid related to financing activities 64,028,921.16 27,128,147.14
Subtotal of cash outflow from financing activities 706,371,981.97 718,985,593.73
Net cash flow from financing activities 77,677,479.27 984,885,957.60
IV. Impact of exchange rate fluctuations on cash and cash equivalents 28,525,978.51 -14,047,341.55
V. Net increase in cash and cash equivalents -690,555,793.79 388,766,495.58
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 394,701,442.83 1,085,257,236.62
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7. Consolidated statement of changes in owner's equity
Amount in the current period
Unit: RMB
2022
Owner's equity attributable to the parent company
Items Other equity instruments Minority
Other General shareholders' Total owners'
Capital public Minus: Special Surplus Retained
Share capital Preferred Perpetual comprehensive risk Other Subtotal equity
Other reserve treasury shares reserve reserves earnings equity
shares bonds income provision
I. Ending balance -
1,256,978,072.00 2,140,053,149.74 242,525,433.60 186,397,631.76 1,779,243,483.61 5,028,315,406.63 88,559,929.67 5,116,875,336.30
of last year 91,831,496.88
Plus: changes in
accounting
policies
Early error
correction
Consolidation
under the same
control
Other
II. Beginning
-
balance of the 1,256,978,072.00 2,140,053,149.74 242,525,433.60 186,397,631.76 1,779,243,483.61 5,028,315,406.63 88,559,929.67 5,116,875,336.30
91,831,496.88
current year
III. Amount of
changes in
increase or
126,089,048.70 4,720,587.41
decrease in the 12,557,300.00 41,732,421.31 83,351,874.53 28,366,562.38 491,575,687.40 700,208,051.70 704,928,639.11
current period
(decrease marked
with "-")
(I) Total
comprehensive 83,351,874.53 582,655,258.38 666,007,132.91 -885,751.53 665,121,381.38
income
(II) Capital
invested and 160,961,901.03 131,786,779.72 131,786,779.72
12,557,300.00 41,732,421.31
reduced by
owners
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1.Ordinary shares
invested by 14,049,300.00 35,825,715.00 49,875,015.00 49,875,015.00
owners
2Capital
contributed by
holders of other
equity instruments
3.Amount of
share-based 134,356,746.03 134,356,746.03 134,356,746.03
payment included
in owner's equity
4.Other -1,492,000.00 -9,220,560.00 41,732,421.31 -52,444,981.31 -52,444,981.31
(III) Profit
28,366,562.38 -91,079,570.98 -62,713,008.60 -62,713,008.60
distribution
1.Withdraw
28,366,562.38 -28,366,562.38
surplus reserve
2Withdrawal 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.Conversion of
surplus reserves to
additional capital
(or share capital)
2Conversion of
surplus reserves to
additional capital
(or share capital)
3.Surplus public
reserve to
compensate losses
4.Change of
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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
2Amount used in
the current period
(VI) Others -34,872,852.33 -34,872,852.33 5,606,338.94 -29,266,513.39
IV. Ending
balance of the 1,269,535,372.00 2,266,142,198.44 284,257,854.91 -8,479,622.35 214,764,194.14 2,270,819,171.01 5,728,523,458.33 93,280,517.08 5,821,803,975.41
current year
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Amount in the previous period
Unit: RMB
2021
Owner's equity attributable to the parent company
Items Minority
Other equity instruments Other General Total owners'
Capital public Minus: Special Surplus Retained shareholders'
Share capital comprehensive risk Other Subtotal equity
Preferred Perpetual reserve treasury shares reserve reserves earnings equity
Other income provision
shares bonds
I. Ending
-
balance of last 1,135,216,809.00 956,734,039.75 80,017,965.68 151,359,957.53 1,324,944,369.91 3,463,681,980.54 84,992,151.43 3,548,674,131.97
24,555,229.97
year
Plus: changes
in accounting
policies
Early error -
12,636,853.09 -19,061,969.80 -6,425,116.71 -34,050,345.41
correction 27,625,228.70
Consolidation
under the same
control
Other
II. Beginning
-
balance of the 1,135,216,809.00 969,370,892.84 80,017,965.68 151,359,957.53 1,305,882,400.11 3,457,256,863.83 57,366,922.73 3,514,623,786.56
24,555,229.97
current year
III. Amount of
changes in
increase or
decrease in the -
121,761,263.00 1,170,682,256.90 162,507,467.92 35,037,674.23 473,361,083.50 1,571,058,542.80 31,193,006.94 1,602,251,549.74
current period 67,276,266.91
(decrease
marked with "-
")
(I) Total
-
comprehensive 564,964,282.18 497,688,015.27 7,148,332.43 504,836,347.70
67,276,266.91
income
(II) Capital
invested and
121,761,263.00 1,182,369,916.81 162,507,467.92 1,141,623,711.89 1,141,623,711.89
reduced by
owners
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1.Ordinary
shares
121,761,263.00 1,130,665,320.69 1,252,426,583.69 1,252,426,583.69
invested by
owners
2Capital
contributed by
holders of
other equity
instruments
3.Amount of
share-based
payment 51,704,596.12 242,525,433.60 -190,820,837.48 -190,820,837.48
included in
owner's equity
4.Other -80,017,965.68 80,017,965.68 80,017,965.68
(III) Profit
35,037,674.23 -91,603,198.68 -56,565,524.45 -5,197,835.08 -61,763,359.53
distribution
1.Withdraw
35,037,674.23 -35,037,674.23
surplus reserve
2Withdrawal
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.Conversion
of surplus
reserves to
additional
capital (or
share capital)
2Conversion
of surplus
reserves to
additional
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capital (or
share capital)
3.Surplus
public reserve
to compensate
losses
4.Change of
defined benefit
plans carried
forward to
retained
earnings
5.Other
comprehensive
income carried
forward into
retained
earnings
6.Other
(V) Special
reserve
1.Amount
withdrawn in
the current
period
2Amount used
in the current
period
(VI) Others -11,687,659.91 -11,687,659.91 29,242,509.59 17,554,849.68
IV. Ending
-
balance of the 1,256,978,072.00 2,140,053,149.74 242,525,433.60 186,397,631.76 1,779,243,483.61 5,028,315,406.63 88,559,929.67 5,116,875,336.30
91,831,496.88
current year
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8. Parent company's statement of changes in owner's equity
Amount in the current period
Unit: RMB
2022
Other equity instruments Other
Items Minus: treasury Special
Share capital Preferred Perpetual Capital public reserve comprehensive Surplus reserves Retained earnings Other Total owners' equity
Other shares reserve
shares bonds income
I. Ending balance of last year 1,256,978,072.00 2,189,685,216.22 242,525,433.60 370,109.41 186,369,113.30 1,064,111,338.27 4,454,988,415.60
Plus: changes in
accounting 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
12,557,300.00 124,680,933.22 41,732,421.31 -370,109.41 28,366,562.38 192,586,052.80 316,088,317.68
current period (decrease
marked with "-")
(I) Total comprehensive
-370,109.41 283,665,623.78 283,295,514.37
income
(II) Capital invested and
12,557,300.00 155,943,760.34 41,732,421.31 126,768,639.03
reduced by owners
1.Ordinary shares invested by
14,049,300.00 35,825,715.00 49,875,015.00
owners
2Capital contributed by holders
of other equity instruments
3.Amount of share-based
payment included in owner's 129,338,605.34 129,338,605.34
equity
4.Other -1,492,000.00 -9,220,560.00 41,732,421.31 -52,444,981.31
(III) Profit distribution 28,366,562.38 -91,079,570.98 -62,713,008.60
1.Withdraw surplus reserve 28,366,562.38 -28,366,562.38
2Distribution to owners (or
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shareholders)
3.Other -62,713,008.60 -62,713,008.60
(IV) Internal carryover of
owner's equity
1.Conversion of surplus
reserves to additional capital
(or share capital)
2Conversion of surplus
reserves to additional capital
(or share capital)
3.Surplus public reserve to
compensate losses
4.Change of defined benefit
plans carried forward to
retained earnings
5.Other comprehensive income
carried forward into retained
earnings
6.Other
(V) Special reserve
1.Amount withdrawn in the
current period
2Amount used in the current
period
(VI) Others -31,262,827.12 -31,262,827.12
IV. Ending balance of the
1,269,535,372.00 2,314,366,149.44 284,257,854.91 214,735,675.68 1,256,697,391.07 4,771,076,733.28
current year
Amount in the previous period
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Unit: RMB
2021
Other equity instruments Other
Items Minus: treasury Special
Share capital Preferred Perpetual Capital public reserve comprehensive Surplus reserves Retained earnings Other Total owners' equity
Other shares reserve
shares bonds income
I. Ending balance of last year 1,135,216,809.00 1,007,315,299.41 80,017,965.68 5,569,575.04 151,331,439.07 805,337,794.69 3,024,752,951.53
Plus: changes in accounting
policies
Early error correction
Other
II. Beginning balance of the current
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
year
III. Amount of changes in increase
or decrease in the current period 121,761,263.00 1,182,369,916.81 162,507,467.92 -5,199,465.63 35,037,674.23 258,773,543.58 1,430,235,464.07
(decrease marked with "-")
(I) Total comprehensive income -5,199,465.63 350,376,742.26 345,177,276.63
(II) Capital invested and reduced
121,761,263.00 1,182,369,916.81 162,507,467.92 1,141,623,711.89
by owners
1.Ordinary shares invested by
121,761,263.00 1,130,665,320.69 1,252,426,583.69
owners
2Capital contributed by holders of
other equity instruments
3.Amount of share-based payment
51,704,596.12 242,525,433.60 -190,820,837.48
included in owner's equity
4.Other -80,017,965.68 80,017,965.68
(III) Profit distribution 35,037,674.23 -91,603,198.68 -56,565,524.45
1.Withdraw surplus reserve 35,037,674.23 -35,037,674.23
2Distribution to owners (or
shareholders)
3.Other -56,565,524.45 -56,565,524.45
(IV) Internal carryover of owner's
equity
1.Conversion of surplus reserves to
additional capital (or share capital)
2Conversion of surplus reserves to
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additional capital (or share capital)
3.Surplus public reserve to
compensate losses
4.Change of defined benefit plans
carried forward to retained
earnings
5.Other comprehensive income
carried forward into retained
earnings
6.Other
(V) Special reserve
1.Amount withdrawn in the current
period
2Amount used in the current period
(VI) Others
IV. Ending balance of the current
1,256,978,072.00 2,189,685,216.22 242,525,433.60 370,109.41 186,369,113.30 1,064,111,338.27 4,454,988,415.60
year
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III. Basic information of the Company
(I) Basic information of the Company
Registered Chinese name of the Company: 深 圳 拓 邦 股 份 有 限 公 司 (hereinafter referred to as "the
Company")
Address: F1, Topband Industrial Park Phase II, Keji Second Road, Tangtou Community, Shiyan Sub-district,
Bao'an District, Shenzhen
Legal representative: Wu Yongqiang
Registered capital: RMB 1,269,535,372
Share capital: RMB 1,269,535,372
Company type: company limited by shares (listing)
Business scope: intelligent control of electrical products, intelligent power supply and control, high efficiency
lighting products and its control, high efficiency precision motor and control research and development, production
and sales.
Business term: sustainable operation
(II) Historical development of the Company
Shenzhen Topband Co., Ltd. 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 RMB 2 million.
On May 19, 1997, the registered capital of Shenzhen Topband Electronic Equipment Co., Ltd. was increased
to RMB 3.2 million after the resolution of the Shareholders' Meeting of Shenzhen Topband Electronic Equipment
Co., Ltd. and approved by Shenzhen Administration for Industry and commerce.
On January 10, 2001, with the resolution of the Shareholders' Meeting of Shenzhen Topband Electronic
Equipment Co., Ltd. and the approval of Shenzhen Administration for Industry and Commerce (Shenzhen) name
change NZ [2001] No. 0154224 Enterprise Name Change Approval Notice, it was agreed to change the name of
Shenzhen Topband Electronic Equipment Co., Ltd. to Shenzhen Topband Electronic Technology Co., Ltd.
On July 15, 2002, with the approval of SFG (2002) No. 24 issued by Shenzhen Municipal People's
Government, it was agreed that Shenzhen Topband Electronic Technology Co., Ltd. would be reorganized into a
joint stock limited company jointly by five shareholders, namely Wu Yongqiang, Ji Shuhai, Zhuhai Tsinghua
Science and Technology Park Venture Capital Co., Ltd., Qi Hongwei and Li Xianqian. After the reorganization, the
total share capital of the Company is RMB 21 million. Shenzhen Pengcheng Accounting Firm issued the Capital
Verification Report (SPSYZ (2002) No. 67) to verify the share capital of the Company. On August 16, 2002, the
Company was approved by Shenzhen Administration for Industry and Commerce to register the change of industry
and commerce, in exchange for the business license of enterprise legal person with Registration No.
4403012049338. The business period is from February 9, 1996 to February 9, 2046.
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On November 23, 2004, the registered capital of the Company was increased to RMB 22.8 million 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 RMB 31.92 million 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 RMB 18.08 million ordinary shares (face value of each share is RMB
1) to the public with an increase of registered capital of RMB 18.08 million, and the registered capital after the
change is RMB 50 million by the approval of "ZJH No. 2007135" Notice on Approving the Initial Public Offering
of Shenzhen Topband Electronic Technology Co., Ltd. by China Securities Regulatory Commission. The
investment business has been verified by Shenzhen Pengcheng Accounting Firm Co., Ltd. and the capital
verification report SPSYZ [2007] No. 059 has been issued.
On August 29, 2008, according to the resolution of the Annual General Meeting of Shareholders in 2008, the
Company increased the registered capital by RMB 50 million with capital reserve, and the registered capital after
the change was RMB 100 million. The capital increase has been verified by Shenzhen Pengcheng Accounting Firm
Co., Ltd., and the capital verification report SPSYZ [2008] No. 179 has been issued.
The 3rd Board of Directors of the Company deliberated and passed the Plan on the Distribution of Mid-term
Profits in 2009 at the 6th meeting in 2009: Based on the total share capital of the Company at the end of the
reporting period of 100 million shares, 4 shares were added in share capitals per 10 shares for all shareholders
regarding the capital reserves, and the total share capital increased by 40 million shares. After the increase by
conversion, the total share capital of the Company increased from 100 million shares to 140 million shares.
On April 7, 2010, the Company held a meeting of the Board of Directors to deliberate and approve the profit
distribution plan for 2009: Based on the total share capital of 140 million shares as of December 31, 2009, the
Company will pay cash dividends of RMB 1.50 (tax included) per 10 shares, and based on the total share capital of
140 million shares as of December 31, 2009, 2 shares will be added per 10 shares. After the increase by conversion,
the total share capital of the Company increased from 140 million shares to 168 million shares.
The Company held the 2nd Meeting of the 4th Board of Directors in 2012 on March 26, 2012, deliberated and
passed the profit distribution plan for 2011: Based on the total share capital 168 million shares of the Company on
December 31, 2011, 2 shares were additionally given to all shareholders for every 10 shares, and cash dividend of
RMB 2 (tax included) was distributed. 1 share was added per 10 shares for all shareholders regarding the capital
reserves. The equity distribution was completed on May 4, 2012. After the increase by conversion, the total share
capital of the Company increased from 168 million shares to 218.4 million shares.
According to the resolutions of 1st Extraordinary General Meeting of Shareholders of the Company in 2014,
after the approval of ZJXK [2014] No. 1425 of China Securities Regulatory Commission, the Company's non-
public offering did not exceed 36.935679 million new shares. On February 5, 2015, the Company privately issued
23,521,768 ordinary shares (A shares) in RMB to specific investors at the price of RMB 13.63 per share. After the
issuance, the registered capital of the Company was increased to RMB 241,921,768.00.
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According to the Revised Draft of the Second Option Incentive Plan (Draft) of Shenzhen Topband Co., Ltd.
deliberated and passed 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 passed 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 RMB 5.72 each. After
exercise, the registered capital of the Company was increased to RMB 245,023,468.00.
According to the Restricted Stock Incentive Plan (Draft) of Shenzhen Topband Co., Ltd. in 2015 approved by
the 2nd Extraordinary General Meeting of Shareholders in 2015 and the Proposal on Adjusting the Number of
Restricted Stock Incentive Plans Granted and List of Incentive Objects approved at the 18th Meeting of the 5th
Board of Directors, the Company granted 359 incentive objects restricted stocks 17.633 million shares. The
registered capital of the Company was increased to RMB 262,656,468.00 after the issuance.
According to the resolution of the 3rd Extraordinary General Meeting of Shareholders of the Company in
2015, and approved by the Reply to the Approval of Non-public Development of Shares of Shenzhen Topband Co.,
Ltd. issued by China Securities Regulatory Commission (ZJXK [2016] No. 205), the Company non-publicly issued
35,864,345 ordinary shares (A shares) in RMB to specific investors on March 28, 2016, with the issuance price of
RMB 16.66 per share. The registered capital of the Company was increased to RMB 298,520,813.00 after the
issuance.
According to the Revised Draft of the Second Phase Stock Option Incentive Plan (Draft) of Shenzhen
Topband Co., Ltd. deliberated and passed by the 2012 Annual General Meeting of Shareholders of the Company
and the Proposal on the Third Exercise Period of the Second Phase Stock Option Incentive Plan Meeting Exercise
Conditions and Exercisable Rights deliberated and passed 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 RMB 303,114,813.00.
According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated and passed
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 RMB 303,042,813.00.
The Company held the 2015 Annual General Meeting of Shareholders on May 11, 2016 and approved the
2015 annual equity distribution plan. Based on the Company's current total share capital of 301,520,013 shares, the
Company distributed RMB 1.50 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 RMB
150,760,006. After the capital was increased, the Company's registered capital was increased to RMB
453,802,819.00.
According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated and passed
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,
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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 RMB 453,471,319.00.
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 RMB 1.50 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 RMB 226,735,659. After the capital increased, the registered capital of the Company was
increased to RMB 680,206,978.00.
According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated and passed
by the 32nd Meeting of the 5th Board of Directors of the Company held on June 13, 2017, as for the incentive
object who resigned due to personal reasons and no longer met the conditions of becoming the incentive object, the
346,500 restricted stocks that have not been unlocked held by the incentive object were repurchased and cancelled.
After cancellation, the registered capital of the Company was reduced to RMB 679,860,478.00.
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 RMB 1.0 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 RMB 339,930,239.00. After the capital increased, the registered capital of the Company was
increased to RMB 1,019,790,717.00.
According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated and passed
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 RMB 1,019,046,531.00.
According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated and passed
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 RMB 1,019,046,531.00.
According to the Proposal on Repurchase and Cancellation of Some Restricted Stocks deliberated and passed
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 RMB 1,018,735,692.With the approval of
"SZS [2019] No. 164 Document" issued by Shenzhen Stock Exchange, the Company's RMB 573 million
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
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has transferred 2,223.00 shares of bonds and increased the share capital by RMB 40,077.00. After the share transfer,
the registered capital of the Company will increase to RMB 1,018,775,769.00.
The 22nd Meeting of the 6th Board of Directors deliberated and passed 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 12.0147 million 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 12.0147 million stock options, increased the Company's share capital by RMB
12.0147 million, and the share capital increased to RMB 1,030,790,469.00 after the exercise of the stock options.
According to the "SZS [2019] No. 164 Document" by the Shenzhen Stock Exchange, the Company's
convertible corporate bonds of RMB 573 million 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 RMB 104,426,340.00. After the conversion, the
registered capital of the Company was increased to RMB 1,135,216,809.00.
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 RMB 92,105,263, and the
Company's registered capital increased to RMB 1,238,254,672.00 after the change.
In November 2021, 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 RMB 7.23 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 increase to RMB 1,256,978,072.00 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 passed 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 14.0493 million stock options meeting the
exercise conditions. The Company's share capital increased by RMB 14.0493 million due to the exercise of stock
options. After the stock options are exercised, the share capital will increase to RMB 1,271,027,372.00.
The Company held the 23rd (Extraordinary) Meeting of the 7th Board of Directors on March 30, 2022, the
27th (Extraordinary) Meeting of the 7th Board of Directors and the 22nd (Extraordinary) Meeting of the 7th Board
of Supervisors on August 18, 2022, deliberated and passed the Proposal on the Proposal on Repurchase and
Cancellation of Some Restricted Stocks from Restricted Stock Incentive Plan in 2021, describing 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 1.492 million restricted stocks that have not been unlocked held were repurchased and cancelled. By
repurchasing and cancelling the restricted stocks, the number of restricted stocks of the Company decreased by
1.492 million shares, and the share capital decreased to RMB 1,269,535,372.00.
(III) Issue for financial reports
The financial report is approved and submitted by the Board of Directors of the Company on March 29, 2023.
There are a total of 39 subsidiaries and sub-subsidiaries included in the scope of the consolidated statement
this time, as shown in Note IX. (I); during the reporting period, 4 companies were newly included in the scope of
consolidation, all of which were newly-established subsidiaries or sub-subsidiaries, as shown in Note VIII. (V).
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,
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) and the Notice on Matters Related to the Implementation of the New
Accounting Standards for Business Enterprises by Listed Companies (No. 453 letter from Accounting Department
[2018] were taken as reference in these financial reports issued by the CSRC.
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2. Accounting period
The fiscal year of the Company adopts the Gregorian calendar year, that is, from January 1 to December 31
every year.
3. Operating cycle
The financial year of the Company adopts the Gregorian calendar year, that is, from January 1 to December 31
every year.
4. Recording currency
The bookkeeping base currency is RMB for the Company. The Company's overseas subsidiaries may
determine their own bookkeeping base currencies based on the currencies in the main economic environments for
their operation. In preparation of financial statements, the currency used is RMB.
5. Accounting treatment for consolidation under the same control and under different control
1. Accounting treatment for consolidation under the same control
Assets and liabilities obtained by the Company in the consolidation under the same control realized through
one transaction or multiple transactions step by step were accounted based on book value of assets and liabilities of
the consolidated party in the consolidated financial statements of the final controller on consolidation date. Capital
reserves should be adjusted according to difference between the book value of net assets obtained by the Company
and the payment for the book value of consolidation consideration (or total nominal value of the issued shares). If
the capital reserve is insufficient to be offset, the retained earnings shall be offset.
2. Accounting treatment for consolidation under different control
The Company, at the date of acquisition, recognizes the difference of the combination cost greater than the fair
value share of the Acquiree's net identifiable assets obtained in the combination as goodwill; if the combination
cost is less than the fair value share of the Acquiree's net identifiable assets obtained in the combination, the
Company first re-checks the fair value of the Acquiree's identifiable assets, liabilities and contingent liabilities as
well as the measurement of combination cost. The difference shall be included in the current profits and losses, if
the combination cost is still less than the fair value share of the Acquiree's net identifiable assets obtained in the
combination.
The consolidation under different control realized step by step through multiple transactions shall be treated as
follows:
(1) Adjusting the initial investment cost of long-term equity investment. If the equity held before the
acquisition date is calculated with the equity method, it shall be re-measured as per the fair value of the equity at
the date of acquisition, and the difference between the fair value and its book value shall be included in the current
investment income; if the equity of the acquiree held before the acquisition date involves changes in other
comprehensive income and other equity accounted under the equity method, it shall be transferred to the current
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income on the acquisition date, excluding other comprehensive income arising from changes in net liabilities or net
assets of the defined benefit plan and changes in the fair value of other equity instruments held re-measured by the
investee.
(2) Recognizing goodwill (or amount included in the current profits and losses).The initial investment cost of
long-term equity investment after the first step adjustment is compared with the fair value share of net identifiable
assets of subsidiaries at the date of acquisition. If the former is greater than the latter, the difference is recognized
as goodwill; otherwise, it is included in the current profits and losses.
The situation of disposing equity step by step through multiple transactions to losing control over subsidiaries
(1) Judging whether the transactions in the process of disposing equity step by step to losing control over
subsidiaries belong to the principle of "package transaction"
The terms, conditions and economic impact of transactions relating to disposal of equity investment in
subsidiaries meet one or more of the following circumstances, which generally indicates that multiple transactions
should be accounted for as a package transaction:
1) Such transactions are concluded at the same time or under the situation of considering the impact on each
other;
2) Only can the unity of such transactions reach an integral commercial result;
3) The occurrence of a transaction is based on the occurrence of at least one of other transactions;
4) A transaction is regarded as uneconomic, but being economic when regarded along with other transactions.
(2) Accounting treatment for transactions in the process of disposing equity step by step to losing control over
subsidiaries belonging to "package transaction"
If the transactions relating to disposal of equity investment in subsidiaries to losing control over subsidiaries
belong to "package transaction", these shall be treated as a transaction for disposing the subsidiary and losing
control; however, the difference between the price of every disposal and the net assets share held in the subsidiary
corresponding to the disposal of investment before losing control shall be recognized as other consolidated income
in the consolidated financial statements, which shall be transferred to the current profits and losses at the time of
losing control.
In the consolidated financial statements, the remaining equity shall be re-measured according to its fair value
on the date of losing control. The difference between the sum of consideration obtained from equity disposal and
fair value of remaining equity less the net assets share held in original subsidiary and continuously calculated from
the date of acquisition as per the original shareholding ratio shall be included in the investment income of the
current period of loss of control. Other comprehensive income related to the equity investment in original
subsidiary shall be transferred to the current investment income or retained earnings at the time of losing control.
(3) Accounting treatment for transactions in the process of disposing equity step by step to losing control over
subsidiaries not belonging to "package transaction"
If no loss of control occurs in the disposal of the investment in the subsidiary, the difference between the
disposal price and the net assets share held in the subsidiary corresponding to the disposal of investment in the
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consolidated financial statements shall be included in the capital reserve (capital premium or share premium). If the
capital premium is insufficient to offset, the retained earnings shall be adjusted.
In case of loss of control of the investment of the subsidiary, in the consolidated financial statements, the
remaining equity shall be re-measured according to its fair value on the date of losing control. The difference
between the sum of consideration obtained from equity disposal and fair value of remaining equity less the net
assets share held in original subsidiary and continuously calculated from the date of acquisition as per the original
shareholding ratio shall be included in the investment income of the current period of loss of control. Other
comprehensive income related to the equity investment in original subsidiary shall be transferred to the current
investment income or retained earnings at the time of losing control.
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.
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 operation as per its share; (5) recognize the expenses incurred separately and those incurred in
the joint operation as per its share.
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The parties of a joint venture shall make accounting treatment for the investment in the joint venture in
accordance with the Accounting Standards for Business Enterprises No. 2 - Long-Term Equity Investment.
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.
The non-monetary items would be converted as per the spot exchange rate of the date when the fair value is
determined, and the difference resulted would be included in the current profit and loss account 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
When the Company becomes one party of the financial instrument contract, it shall recognize a financial asset
or financial liability.
The trading of financial assets in a conventional manner shall be recognized and derecognized according to the
accounting of the trading day. Conventional trading of financial assets refers to the collection or delivery of
financial assets within the time limit specified by laws and regulations or common practice in accordance with the
terms of the contract. Trading day refers to the date when the Company promises to buy or sell financial assets.
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If the following conditions are met, the financial assets (or a part of financial assets, or a part of a set of similar
financial assets) shall be derecognized, i.e., they shall be written off from its accounts and balance sheets:
(1) The right to receive cash flow of financial assets has expired;
(2) The right to receive cash flow of financial assets has been transferred, or the Company has assumed the
obligation to timely pay the full amount of the cash flow received to a third party under the "transfer agreement";
and (a) has transferred substantially all the risks and rewards from the ownership of financial assets, or (b)
abandoned the control of the financial asset, though almost all risks and rewards from the ownership of the
financial asset are neither transferred nor retained.
2. Classification and measurement of financial assets
At the time of initial recognition, the financial assets of the Company are classified according to the
Company's business model for the management of financial assets and the contractual cash flow characteristics of
financial assets as follows: financial assets measured at amortized cost, financial assets measured at fair value
through other comprehensive income, and financial assets measured at fair value through current profits and losses.
The subsequent measurement of financial assets depends on its classification.
The classification of financial assets is based on the Company's business model for the management of
financial assets and the cash flow characteristics of financial assets.
(1) Financial assets measured at amortized cost
Financial assets that meet the following conditions at the same time are classified as financial assets measured
at amortized cost: the Company's business mode of managing the financial assets is to collect the contract cash flow
as the target; the contract terms of the financial asset stipulate that the cash flow generated on a specific date is only
the payment of principal and interest based on the amount of outstanding principal. For such financial assets, the
effective interest rate method is adopted, and subsequent measurement is made at amortized cost, and the gains or
losses arising from amortization or impairment are included in the current profits and losses.
(2) Debt instruments investment measured at fair value with changes included in other comprehensive income
Financial assets that meet the following conditions at the same time are classified as financial assets measured
at fair value with their changes included in other comprehensive income: the Company's business mode of
managing the financial assets aims to collect the contract cash flow and sell them; the contract terms of the
financial asset stipulate that the cash flow generated on a specific date is only the payment of principal and interest
based on the amount of outstanding principal. For such financial assets, fair value is adopted for subsequent
measurement. The discount or premium is amortized using the effective interest rate method and recognized as
interest income or expense. Except the impairment loss and the exchange difference of foreign currency monetary
financial assets are recognized as the current profits and losses, the changes in the fair value of such financial assets
are recognized as other comprehensive income until their accumulated gains or losses are transferred into the
current profits and losses when the financial asset is derecognized. Interest income related to such financial assets is
included in the current profits and losses.
(3) Equity instruments investment measured at fair value with changes included in other comprehensive
income
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The Company irrevocably chooses to designate part of the non-tradable equity instrument investment as
financial assets measured at fair value through other comprehensive income. Only the relevant dividend income is
included in the current profits and losses, and the changes in fair value are recognized as other comprehensive
income, until their accumulated gains or losses are transferred into retained earnings when the financial asset is
derecognized.
(4) Financial assets measured at fair value with changes included in the current profits and losses
The financial assets other than the above financial assets measured at amortized cost and those at fair value
through other comprehensive income are classified as financial assets measured at fair value with changes included
in the current profits and losses. At the time of initial recognition, for the purpose of elimination or significant
reduction of accounting mismatch, financial assets can be designated as those measured at fair value with changes
included in the current profits and losses. For such financial assets, fair value is used for subsequent measurement,
and all changes in fair value are included in the current profits and losses.
If and only when the Company changes the business model for managing financial assets, it will reclassify all
the affected financial assets.
For the financial assets measured at fair value and whose changes are included in the current profits and losses,
the relevant transaction costs are directly included in the current profits and losses, and such costs of other types of
financial assets are included in the initial recognition amount.
3. Classification and measurement of financial liabilities
During initial recognition, the Company's financial liabilities are classified as: "financial liabilities measured
at amortization cost" and "financial liabilities measured at fair value with their changes included into the current
profit and loss".
Financial liabilities satisfying one of the following requirements can be designated as financial liabilities
measured at fair value with their changes included in the current profit and loss during initial measurement: (1)
Such designation can eliminate or remarkably reduce the accounting mismatch; (2) According to group risk
management or investment strategy in the formal written documents, the management and performance evaluation
of the portfolio of financial liabilities or portfolio of financial assets and financial liabilities are conducted on the
basis of fair price, and within the group, it is reported to the key management personnel on such basis; (3) Such
financial liabilities include embedded derivatives requiring separate splitting.
The Company determines the classification of financial liabilities at the time of the initial recognition. For the
financial liabilities measured at fair value with changes included in the current profits and losses, the relevant
transaction costs are directly included in the current profits and losses, and such costs of other financial liabilities
are included in the initial recognition amount.
The subsequent measurement of financial liabilities depends on its classification:
(1) Financial liabilities measured at amortized cost
For such financial liabilities, the effective interest rate method is adopted and the subsequent measurement is
conducted as per the amortized cost.
(2) Financial liabilities measured at fair value with changes included in the current profits and losses
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Such financial liabilities include tradable financial liabilities (including derivatives that belong to financial
liabilities) and financial liabilities designated upon initial recognition as those measured at fair value with changes
included in the current profits or losses.
4. Set off of financial instruments
If the following conditions are met at the same time, financial assets and financial liabilities are presented in
the balance sheet at the net amount after offsetting each other: the Company has the legal right to offset the
recognized amount, which is currently enforceable; they plan to settle at the net amount, or realize the financial
assets and pay off the financial liabilities at the same time.
5. Impairment of financial assets
The Company recognizes the loss provision based on the expected credit loss for the financial assets measured
at the amortized cost, the debt instrument investment and financial guarantee contract measured at the fair value
and whose changes are included in other comprehensive income. The term "credit loss" refers to the difference
between all the contractual cash flows that the Company discounted at the original effective interest rate and
received according to the contract and all the expected cash flows, i.e., the present value of all the cash shortage.
Upon considering all reasonable and well-founded information (including forward-looking information), the
Company estimates the expected credit impairment loss is withdrawn for "financial assets measured at amortized
cost" and "financial asset (debt instruments) measured at fair value with their changes included in other
comprehensive income" in single or combined manner.
(1) General model of expected credit loss
If the credit risk of this financial instrument has increased obviously since initial recognition, the Company
will measure the loss reserves according to the expected credit loss amount of such financial instrument in the
whole duration; if the credit risk of this financial instrument hasn't increased obviously since initial recognition, the
Company will measure the loss reserves according to the expected credit loss amount of such financial instrument
in the next 12 months. The increased or reversed amount of the loss provisions arising therefrom shall be included
in the current profits and losses as impairment losses or gains. The specific assessment of credit risk by the
Company is detailed in the Note "IX. Risks Associated with Financial Instruments".
Generally, in case of overdue for more than 30 days, the Company will consider that the credit risk of such
financial instrument has increased obviously, unless conclusive evidence is available to prove that the credit risk of
such financial instrument hasn't obviously increased since the initial recognition.
To be specific, the Company divides the credit impairment process of financial instruments that have not been
impaired at the time of purchase or origination into three stages, with different accounting treatment for the
impairment of financial instruments at different stages:
First stage: credit risk has not increased significantly since initial recognition
For the financial instrument at this stage, the enterprise shall measure the loss provision according to the
expected credit loss in the next 12 months, and calculate the interest income as per its book balance (i.e. without
deducting the impairment provision) and the actual interest rate (if the instrument is a financial asset, the same
below).
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Second stage: the credit risk has increased significantly since the initial recognition, but the credit impairment
has not occurred
For the financial instrument at this stage, the enterprise shall measure the loss provision according to the
expected credit loss of the instrument thought the whole duration, and calculate the interest income as per its book
balance and the actual interest rate.
Third stage: credit impairment occurs after initial recognition
For the financial instrument at this stage, the enterprise 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
The Company measures the loss provisions as per the amount of expected credit losses throughout the whole
duration by the use of simplified model for expected credit loss for receivables specified in Accounting Standards
for Business Enterprises No. 14 - Income, excluding significant financing components (including cases in which
financing components in contracts not exceeding one year are not taken into account in accordance with the
standards).
The Company makes accounting policy choices to adopt a simplified model for expected credit loss, i.e.,
measuring the loss provisions as per the amount equivalent to the expected credit loss throughout the whole
duration for receivables including significant financing components and lease receivables regulated by Accounting
Standards for Business Enterprises No. 21 - Leasing.
6. Transfer of financial assets
The financial assets shall be derecognized when the Company has transferred all the risks and rewords on the
ownership of the financial assets to the transferee. The financial assets shall not be derecognized if the Company
retains all the risks and rewards on the ownership of the financial assets.
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If the Company neither transfers nor retains almost all the risks and rewards in the ownership of the financial
asset, the following conditions shall be referred to: if it gives up the control over the financial asset, it shall
terminate the recognition of the financial asset and recognize the assets and liabilities generated; if it does not
abandon the control over the financial asset, the relevant financial assets shall be recognized according to the extent
to which it continues to be involved in the transferred financial asset, and the relevant liabilities shall be recognized
accordingly.
If the financial guarantee is provided to the transferred financial assets to continue to be involved, the assets
generated from the continued involvement shall be recognized according to the lower of the book value of the
financial assets and the amount of financial guarantee. Financial guarantee amount refers to the maximum amount
that will be required to be repaid out of consideration received.
11. Notes receivable
The Company divides notes receivable into two portfolios of bank acceptance bills and commercial
acceptance bills by type of financial instrument. With respect to bank acceptance bills, the Company considers its
overdue default risk to be 0 for it has low overdue credit loss which has not significantly increased since the initial
recognition, because the acceptance bank pays the payee or holder a certain amount unconditionally when the bill is
due. In respect of commercial acceptance bills, the Company believes that the probability of default is correlated
with the aging, and the bad debts shall be accrued according to the accounting policy of expected credit loss of
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 RMB 1 million.
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At the end of the period, a separate impairment test will be carried out on the individual receivables with
significant amount. If there is objective evidence that it is impaired, the impairment loss shall be recognized with
provision for bad debts according to the difference between the present value of future cash flow and the book
value.
2. Receivables with provision for bad debts by portfolio
The individual receivables with not significant amount at the end of the period, together with the receivables
that have not been impaired after separate test, are divided into several portfolios according to the aging as the
credit risk characteristics, and the impairment loss is calculated and determined according to a certain proportion of
the ending balance of these receivables portfolio (the impairment test can be conducted separately), with provision
for bad debts.
Except for the receivables for which impairment provision has been made separately, the Company determines
the proportion for following bad debt provision based on the actual loss rate of the portfolio of the same or similar
receivables in previous years with the aging of receivables as the credit risk feature and in combination with the
current situation:
Estimated loss of accounts Estimated loss of other
Aging
receivable (note) receivables
Within 1 year (including 1 year) 3.10% 5.00%
1-2 years (including 2 years) 9.04% 10.00%
2-3 years (including 3 years) 22.11% 30.00%
3-4 years (including 4 years) 47.51% 50.00%
4-5 years (including 5 years) 84.26% 80.00%
Above 5 years 100.00% 100.00%
Including: those that have been determined to be irrecoverable Write-off Write-off
Note: when measuring the expected credit loss of receivables, the Company has referred to the historical
experience of credit loss and adjusted it based on forward-looking estimates.
3. Receivables with not significant amount but with single provision for bad debts
Reasons for individual provision for bad debts: the Company conducts a separate impairment test for the
receivables with the following characteristics, although its amount is not significant. If there is objective evidence
that the receivables are impaired, the impairment loss shall be recognized with provision for bad debts according to
the difference between the present value of future cash flow and the book value; receivables that are in dispute with
the other party or involved in litigation or arbitration; receivables that have obvious indications that the debtor is
likely to be unable to perform the repayment obligation, etc.
Method for bad debt provision: the impairment test shall be conducted separately. If there is objective
evidence that it has been impaired, the impairment loss shall be recognized with provision for bad debts according
to the difference between the present value of future cash flow and its book value.
The Company measures the loss provisions as per the amount of expected credit losses throughout the whole
duration by the use of simplified model for expected credit loss for receivables specified in Accounting Standards
for Business Enterprises No. 14 - Income, excluding significant financing components (including cases in which
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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.
13. Receivables financing
Financial assets that meet the following conditions at the same time are classified as financial assets measured
at fair value with their changes included in other comprehensive income: the Company's business mode of
managing the financial assets aims to collect the contract cash flow and sell them; the contract terms of the
financial asset stipulate that the cash flow generated on a specific date is only the payment of principal and interest
based on the amount of outstanding principal.
The receivables held by the Company transferred in the endorsed or discounted form that such transactions are
frequent and involve significant amounts and the management mode aims to collect the contract cash flow and sell
them in nature, are classified as financial assets measured at fair value with their changes included in other
comprehensive income in accordance with the relevant provisions of the Financial Instruments Standards.
14. Other receivables
Recognition method and accounting treatment method for expected credit loss of other receivables
Recognition methods and accounting treatment of expected credit losses of other receivables. The Company
measures the impairment loss by an amount equivalent to the expected credit loss within the next 12 months or
over the entire duration, depending on whether the credit risk of other receivables has increased significantly since
the initial recognition. In addition to other receivables with individual credit risk assessment, they are divided into
different portfolios based on their credit risk characteristics:
Portfolio name Basis for determining the portfolios Provision methods
Portfolio I Risk-free portfolio This portfolio is a risk-free account.
Portfolio II Aging portfolio The credit risk of the portfolio is characterized by the aging.
15. Inventories
1. Classification of inventories
The inventory includes the finished products or commodities held for sale in daily activities, the unfinished
products and the materials consumed in the production or in the provision of labor services, etc.
2. Pricing method of delivered inventories
The delivered inventories are subject to the weighted-average system.
3. Determination basis for net realizable value of the inventory and counting and drawing method for
inventory falling price reserves
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On the balance sheet date, the inventories are measured at the lower of cost and net realizable value, and the
inventory revaluation reserves are calculated at the difference between the cost of inventory category and the net
realizable value. The net realizable value of the inventories ready for sale is determined at the estimated sale price
of such inventories minus the estimated sales expenses and relevant taxes during normal production and operation,
and that of the inventories to be processed is determined at the estimated sale price of the finished products minus
the costs, sales expenses and relevant taxes estimated to be incurred up to completion during normal production and
operation. On the balance sheet date, the net realizable values are determined separately and compared with the
corresponding costs to determine the amount of withdrawal or reversal of inventory revaluation reserve if a part of
inventory is subject to the contractual price agreement and the rest is not.
4. Inventory system
Perpetual inventory system is the inventories.
5. Amortization method of low value consumables and packaging materials
One-off write-off method is employed for both the low-value consumption goods and the packaging materials.
16. Contractual assets
1. Recognition methods and standards for the contractual assets
The Company presents contractual assets or contract liabilities in the balance sheet based on the relationship
between performance obligations and customer payments. The Company's right to receive consideration for goods
or services transferred to customers (excluding receivables) is listed as contractual assets.
2. The recognition method and accounting treatment for expected credit loss of contractual assets
The Company measures the loss provisions as per the amount of expected credit losses throughout the whole
duration by the use of simplified model for expected credit loss for contractual assets excluding significant
financing components. The increased or reversed amount of loss provisions generated therefrom shall be included
in the current profits and losses as impairment losses or gains.
The Company measures the loss provisions as per the amount of expected credit losses throughout the whole
duration by the use of simplified model for expected credit loss for contractual assets including significant
financing components. The increased or reversed amount of loss provisions generated therefrom shall be included
in the current profits and losses as impairment losses or gains.
17. Contractual costs
None
18. Assets held for sale
None
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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 consolidation under the same control in which case the combining
party pays the combination consideration in cash, by transferring the non-cash assets, undertaking the debts or
issuing the equity securities, the initial investment cost shall be determined on the basis of the share of the owner's
equity of the combined party in the book value of the ultimate controlling party's consolidated financial statements
on the combination date. For the difference between the initial investment cost of long-term equity investment and
the book value of the consideration paid for combination or the total face value of the issued shares, the capital
reserve (capital premium or share premium) shall be adjusted. If the capital reserve is insufficient to be offset, the
retained earnings shall be adjusted.
If a consolidation under the same control is realized step by step, the initial investment cost shall be
determined on the basis of the share of the owner's equity of the combining party in book that is obtained from the
combined party on the combination date and calculated at shareholding ratio. For the difference between the initial
investment cost and the sum of the book value of the original long-term equity investment plus the book value of
the consideration newly paid for acquiring further shares on the combination date, the capital reserve (capital
premium or share premium) shall be adjusted. If the capital reserve is insufficient to be offset, the retained earnings
shall be adjusted.
(2) If the investment cost is incurred in the consolidation under different control, the initial investment cost
shall be determined as the fair value of the consideration paid for combination on the purchase date.
(3) Investment costs other than those incurred in consolidation: The initial investment cost shall be the
purchase price paid actually if the investment is obtained by paying cash, the fair value of the issued equity
securities if by issuing the equity securities, and the value specified in the investment contract or agreement in case
of investment from an investor (unless the unfair value is specified in the contract or agreement).
2. Subsequent measurement and recognition methods for profits and losses
The long-term equity investment that the Company has the control over the investee shall be calculated with
cost method in its individual financial statement; those under the same control or significant influence shall be
calculated with equity method.
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If the cost method is applied, the long-term equity investments shall be priced at the initial investment cost.
The cash dividends or profits declared to be distributed by the investee other than those that have been declared but
not distributed and included in the price or consideration paid actually when the investment is obtained shall be
recognized as the current investment income, and it is necessary to consider whether the long-term investment is
impaired in accordance with the relevant policy of asset impairment.
When the equity method is applied, if the initial investment cost of a long-term equity investment is greater
than the share of fair value of identifiable net assets entitled from the investee at the time of investment, it shall be
included in the initial investment cost of the long-term equity investment; otherwise, the difference shall be
included in the current profits and losses and the cost of long-term equity investment shall be adjusted.
When the equity method is applied, the profits and losses on investment shall be recognized and the book
value of the long-term equity investment shall be adjusted according to share of the net profits and losses that shall
be entitled or shared and have been realized by the investee after the long-term equity investment is obtained. When
the share of the net profit and loss entitled from the investee is recognized, the proportion attributable to the
investor shall be calculated at the shareholding ratio after offsetting the profits and losses of internal transactions
with associated enterprises and joint ventures (full amount shall be recognized if the losses of internal transactions
are the asset impairment losses) in light of the accounting policies and period of the Company on the basis of the
fair value of the identifiable assets of the investee when the investment is obtained, and the net profit of the investee
shall be recognized after adjustment. The portion to be distributed shall be calculated with reference to the profits
or cash dividends declared to be distributed by the investee, and the book value of the long-term equity investment
shall be reduced accordingly. If a net loss of the investee confirmed by the Company, the book value of the long-
term equity investment, as well as other long-term equity investment which form the net investment of the
investment units should be written down until zero limits, except that the Company has to undertake obligations of
additional losses. The book value of the long-term equity investment was adjusted and included in the owner's
equity for other changes in the owner's equity other than the net profits and losses of the investee.
3. Basis for determination of control over and significant influence on the investee
Control refers to having the power over the investee, being entitled to variable returns by participating in the
relevant activities of the investee and able to influence the amount of return by exercising the power over the
investee. Significant influence refers to that the investor has the right to participate in decision-making in terms of
the financial and operating policies of the investee but has no right to control or jointly control the formulation of
these policies with other parties.
4. Disposal of long-term equity investments
(1) Partial disposal of long-term equity investments into subsidiaries without loss of control
The difference between the disposal price and the corresponding book value of the disposed investment shall
be recognized as the current investment income in case of partial disposal of long-term equity investments into
subsidiaries without loss of control.
(2) Loss of control over subsidiaries due to partial disposal of long-term equity investments or other reasons
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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 income (loss). In addition, the remaining equity shall be
recognized as long-term equity investment or other related financial assets at its book value. The remaining equity
after disposal that has joint control or significant influence on the subsidiaries shall be subject to the accounting
treatment in accordance with the relevant regulations on the conversion from the cost method to the equity method.
5. Methods for impairment test and provision of impairment reserve
If there is any objective evidence showing that the investments into subsidiaries, associated enterprises and
joint ventures are impaired on the balance sheet date, the provision of impairment reserve shall be made
accordingly based on the difference between the book value and the recoverable amount.
23. Investment property
Measurement model of investment property
Measurement with cost method
Depreciation or amortization method
1. Investment property includes leased land use rights, land use rights held and ready to be assigned after
appreciation, and leased buildings.
2. Investment property is measured initially at cost and subsequently with cost model. The provision for
depreciation and amortization of the investment property are made in the way as used for fixed assets and
intangible assets. If there is any sign showing that the investment property is impaired on the balance sheet date, the
provision of impairment reserve shall be made accordingly based on the difference between the book value and the
recoverable amount.
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 V. 31."Long-term Assets Impairment" for details of the methods for impairment test and provision of
impairment reserve applicable to investment property.
If the real estate for private use or inventory is converted to an investment property or the investment property
is converted to a real estate for private use, the book value before such conversion shall be deemed as the entry
value after the conversion.
If the purpose of an investment property is changed to private use, this investment property shall be converted
into a fixed or intangible asset from the date of change. If the purpose of a property is changed to rent gains or
capital appreciation from private use, the fixed asset or intangible asset shall be converted into an investment
property from the date of change. If the purpose of a property is changed to rent gains or capital appreciation from
private use, the fixed asset or intangible asset shall be converted into an investment property from the date of
change. If any asset is converted into an investment property measured with the cost model, the book value before
the conversion shall be deemed as the entry value after the conversion. If any asset is converted into an investment
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property measured with the fair value model, the fair value on the conversion date shall be deemed as the entry
value after the conversion.
An investment property shall be derecognized if this investment property is disposed of or permanently retired,
and it is expected that no economic benefits can be obtained from its disposal. The disposal income from the sale,
transfer, scrapping or damage of an investment property shall be included in the current profits and losses after
deducting its book value and relevant taxes and dues. The disposal income from the sale, transfer, scrapping or
damage of an investment property shall be included in the current profits and losses after deducting its book value
and relevant taxes and dues.
24. Fixed assets
(1) Conditions for recognition
Fixed assets refer to the tangible assets that are held for production of goods, provision of labor services, lease
or operation management and of which the service life exceeds one fiscal year.
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
Borrowing costs occurred by the Company that may be directly attributable to the acquisition or construction
of assets eligible for capitalization, are capitalized and accounted in the cost of relevant assets; while other
borrowing costs are recognized as expenses and accounted into current profits and losses whenever occurred.
2. Capitalization period of borrowing costs
(1) The borrowing costs shall be capitalized if they meet the following conditions: 1) Asset expenditures have
been incurred; 2) Borrowing costs have been incurred; 3) Acquisition, construction or production activities
necessary for the assets to reach the usable or marketable state as intended have begun.
(2) The capitalization of borrowing costs shall be discontinued if the acquisition, construction or production of
an asset that meets the conditions for capitalization is abnormally interrupted for more than 3 successive months.
The borrowing costs incurred during the period of interruption shall be recognized as current expenses until the
acquisition, construction or production of assets is resumed.
(3) The capitalization of borrowing costs shall cease when the purchased, constructed or produced assets that
meet the conditions for capitalization reaches the intended usable or marketable state.
3. Capitalized amount of borrowing costs
If special borrowings are for the purpose of purchase, construction or production of assets that meet the
conditions for capitalization, the amount of interest to be capitalized shall be determined as the interest expenses
actually incurred (including the amortization of discounts or premiums determined with the effective interest rate
method) in the current period of the special borrowing minus the interest income from the unused borrowings that
have been deposited in the bank or the profit from temporary investment by the unused borrowings. If general
borrowings are used for the purpose of purchase, construction or production of assets that meet the conditions for
capitalization, the amount of interest to be capitalized shall be determined as the weighted average of asset
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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 commencement date of the lease term, the Company recognizes the right-of-use assets and lease
liabilities for the leases, except for simplified short-term leases and low-value asset leases.
The Company initially measures the right-of-use assets at 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;
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
should be calculated and withdrawn as depreciation over the shorter one of the lease term or the remaining service
life.
The Company determines whether the right-of-use assets are impaired in accordance with the Accounting
Standards for Business Enterprises No. 8 - Asset Impairment, and carries out accounting treatment for the identified
impairment losses.
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30. Intangible assets
(1) Valuation method, service life and impairment test
1. Intangible assets include land usage right, software, patent rights and non-patent technologies, etc., and are
initially measured at cost.
2. Intangible assets with limited service life shall be systematically and reasonably amortized according to the
expected realization mode of economic benefits related within the service life, and in case the expected realization
mode cannot be reliably determined, the straight-line method shall be adopted for amortization.
The land usage right shall be averagely amortized within the remaining service life (generally 50 years), the
software shall be averagely amortized within 3-5 years, and the patent rights and non-patent technologies within 5-
10 years.
3. In case of evidence of impairment of intangible assets with defined service life on the balance sheet date,
corresponding provision for impairment shall be made according to the difference between the book value and the
recoverable amount; For intangible assets with uncertain service life and intangible assets that have not reached the
serviceable state, the impairment tests shall be carried out every year, whether there are signs of impairment or not.
(2) 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 consolidation and intangible assets with uncertain service life shall be tested for
impairment every year, no matter whether there is any sign of impairment.
In case of following signs, the assets may be impaired:
(1) Market price of assets falls sharply in the current period, which is significantly higher than the expected
decline due to time or normal use; (2) There are significant changes in current and future economic, technological
or legal environment in which the enterprise operates and the market where assets are located, bringing adverse
effects on the enterprise; (3) The market interest rate or other market return on investment has been increased in the
current period, affecting the discount rate of the enterprise to calculate the present value of the expected future cash
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flow of the assets and resulting in a significant decrease in the recoverable amount of the assets; (4) There exists
evidence showing that the assets have become obsolete or the entity has been damaged; (5) Assets have been or
will be idle, terminated or planned to be disposed in advance; (6) Evidence in the internal report of the enterprise
shows that economic performance of assets has been or will be lower than the expected, for instance, the net cash
flow arising from assets or the realized operating profit (or loss) is far lower (or higher) than the expected amount,
etc. (7) Other indications showing that assets may have been impaired.
In case of signs of assets impairment, corresponding recoverable amount shall be estimated.
Recoverable amount shall be determined based on the higher of the net amount of fair value of assets minus
the disposal expenses and the present value of expected future cash flow of assets.
Disposal expenses include legal expenses, relevant taxes and handling fees related to disposal of assets as well
as direct expenses incurred to make the assets marketable.
Present value of expected future cash flow of assets shall be determined by selecting an appropriate discount
rate based on the expected future cash flow generated during continuous use and final disposal of the assets.To
estimate present value of future cash flow of assets, measures shall be taken to comprehensively consider factors as
the expected future cash flow, service life and discount rate of the assets.
In case of measurement result of recoverable amount showing that recoverable amount of the asset is lower
than its book value, the book value shall be written down to the recoverable amount, and the written down amount
shall be recognized as the loss of asset impairment and included in the current profits and losses; besides,
corresponding provision for asset impairment shall be made at the same time.
32. Long-term deferred expenses
Long-term deferred expenses shall be recorded according to the actual amount, and shall be averagely
amortized in the benefit period or the specified period. In case future accounting period cannot benefit from long-
term deferred expenses, all unamortized value of the item shall be transferred into the current profits and losses.
33. Contractual liabilities
The Company presents contractual assets or contract liabilities in the balance sheet based on the relationship
between performance obligations and customer payments. The Company's obligation to transfer commodities or
services to customers for consideration received or receivable by the Company is listed as contract liability.
34. Employee compensation
(1) Accounting treatment of short-term compensation
Employee wages refer to the remuneration or compensation in various forms which the Company pays to its
employees for their services or severing of labor relations, Employee compensation includes short-term
compensation, post-employment benefits, dismissal benefits and other long-term employee benefits. Benefits
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provided by the Company to employees' spouses, children and dependants, family members of deceased employees
as well as other beneficiaries shall also be included in employee compensation.
Share-based payments issued by the enterprise to its employees shall also be included in employee
compensation, and shall be handled in accordance with relevant provisions of Accounting Standards for Business
Enterprises No. 11 - Share-based Payments.
During the accounting period when employees provide service for the Company, the actual short-term
remuneration is recognized as liabilities and included in the current profits and losses or the relevant assets cost.
Where, non-monetary welfare shall be measured at fair value.
(2) Accounting treatment of post-employment benefits
Dismissal welfare mainly includes basic endowment insurance, unemployment insurance and so on. Post-
employment benefit plan includes defined contribution plan. Where the defined contribution plan is used, the
corresponding amount shall be recorded into relevant asset costs or current profits and losses.
(3) Accounting treatment of dismissal benefits
In case the Company terminates labor relationship with employees prior to the expiration of employee's labor
contract, or offers compensation to encourage employees to accept the layoff voluntarily, it shall confirm the
compensation for termination of labor relationship with employees and include the compensation amount in the
current profits and losses at the earlier time when it fails to unilaterally withdraw labor relationship termination
plan or layoff proposal and confirms costs related to reorganization involving the payment of dismissal benefits.
(4) Accounting treatment of other long-term employee benefits.
None
35. Lease liabilities
On the commencement date of the lease term, the Company recognizes the right-of-use assets and lease
liabilities for the leases, except for simplified short-term leases and low-value asset leases.
Lease liabilities are initially measured at the present value of outstanding lease payments from lease date.
Lease payment refers to the amount paid by the Company to the lessor in connection with the right to use the
leased assets during the lease term, including:
1. For fixed payment and the actual fixed payment with lease incentives, the relevant amount of it shall be
deducted;
2. The amount of variable lease payments depending on the index or ratio, which is recognized at the initial
measurement according to the index or ratio on the starting date of the lease term;
3. The exercise price of the purchase option; provided that this option will be exercised base on the reasonable
determination of the Company;
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4. The amount to be paid for exercising the option to terminate the lease; provided that in the lease term, it
reflects that the Company will exercise the option to terminate the lease;
5. The amount expected to be paid based on the guaranteed balance provided by the Company.
When calculating the present value of the lease payments, the Company adopts the interest rate implicit in
lease as the discount rate, but if the interest rate implicit in lease cannot be reasonably determined, the incremental
borrowing rate of the Company will be used as the discount rate.
36. Estimated liabilities
None
37. Share-based payment
1. Types of share-based payment
It includes equity-settled share-based payment and cash-settled share-based payment
2. Determination method of fair value of equity instrument
(1) In case of active market, it shall be determined according to the quoted price in the active market.
(2) In case of no active market, it shall be determined by adopting valuation technologies, including referring
to prices used in recent market transactions by parties familiar with the situation and willing to trade, current fair
value of other financial instruments that are essentially the same, discounted cash flow method and option pricing
model.
3. Basis for confirming the best estimate of vesting equity instruments
Estimation shall be based on the latest available changes on vesting employee number and other subsequent
information.
4. Accounting treatment of implementing, modifying and terminating share-based payment plan
(1) Equity-settled share-based payment
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
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the acquisition date and shall be included in relevant costs or expenses; besides, the owner's equity shall be
increased accordingly.
(2) Cash-settled share-based payment
Cash-settled share-based payment in exchange for employee services that can be exercised immediately after
the grant shall be included in relevant costs or expenses according to the fair value of the liabilities undertaken by
the Company on the grant date, and the liabilities shall be increased accordingly. For cash-settled share-based
payment in exchange for employee services only after completing service within the waiting period or reaching the
specified performance conditions, it is required to include the services obtained in the current period into relevant
costs or expenses and relevant liabilities according to the best estimate of vesting situation and the fair value of the
liabilities assumed by the Company on each balance sheet date within the waiting period.
(3) Modification and termination of share-based payment plan
In case of increase of fair value of the equity instruments granted due to modification, the Company shall
recognize the increase of services obtained based on the increase of fair value of equity instruments; In case of
increase of the number of equity instruments granted due to modification, the Company shall recognize the fair
value of the increased equity instruments as the increase of services obtained accordingly. Besides, if the Company
modifies vesting conditions in a way beneficial to employees, it shall consider all modified vesting conditions when
dealing with the vesting conditions.
In case of decrease of fair value of the equity instruments granted due to modification, the Company shall
continue to recognize the amount of services obtained based on the fair value of equity instruments on the grant
date without considering the decrease of fair value of equity instruments; In case of decrease of the number of
equity instruments granted due to modification, the Company shall recognize the decreased part as the cancellation
of granted equity instruments; Besides, if the Company modifies vesting conditions in a way not beneficial to
employees, it shall not consider the modified vesting conditions when dealing with vesting conditions.
In case the Company cancels or settles the granted equity instruments within the waiting period (except those
cancelled due to failure to meet the vesting conditions), the cancellation or settlement shall be accelerated for
vesting, and the amount originally recognized in the remaining waiting period shall be recognized immediately.
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.
⑤ Customers have accepted the commodities.
⑥ Other indications that customers have obtained the control right of commodities.
The specific policies of revenue recognition of the Company are as follows:
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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.
3. Measurement of revenue
The Company shall measure revenue according to the transaction price allocated to each individual
performance obligation. In determining the transaction price, the Company shall consider the influence of variable
consideration, significant financing components in the Contract, non-cash consideration, consideration payable to
customers as well as other factors.
(1) Variable consideration
The Company shall determine the best estimate of variable consideration according to the expected value or
the most likely amount, but the transaction price including the variable consideration shall not exceed the
accumulated recognized revenue that will not be significantly reversed when relevant uncertainty is eliminated.
When evaluating whether the accumulative recognized revenue is unlikely to be significantly reversed, the
enterprise shall further consider the possibility and proportion of revenue reversal.
(2) Significant financing components
In case of significant financing components in the Contract, the Company shall determine the transaction price
according to the amount payable in cash when assuming that customers obtain the control right of commodities.
Difference between the transaction price and the contract consideration shall be amortized by adopting the effective
interest rate method during the contract period.
(3) Non-cash consideration
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.
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(4) Consideration payable to customers
Consideration payable to customers shall be written down against the transaction price, and the current income
shall be offset at the later of confirming relevant income or paying (or promising to pay) customer's consideration,
except that the consideration payable to customers is to obtain other clearly distinguishable commodities from
customers.
In case the consideration payable by an enterprise to customers is to obtain other clearly distinguishable
commodities from customers, the purchased commodities shall be confirmed in a way consistent with other
purchases of the enterprise. In case the consideration payable by an enterprise to customers exceeds the fair value
of a clearly distinguishable commodity obtained from the customer, the excess amount shall be used to offset the
transaction price. In case the fair value of clearly distinguishable commodities obtained from customers cannot be
reasonably estimated, the enterprise shall offset the transaction price with the consideration payable to customers in
full.
Differences in revenue recognition accounting policies caused by different business models of similar businesses
None
40. Government subsidies
1. Government subsidies include government subsidies related to assets and government subsidies related to
income.
2. In case the government subsidies can be included in monetary assets, they shall be measured according to
the amount received or receivable; In case the government subsidies can be classified as non-monetary assets, they
shall be measured at fair value, and once the fair value cannot be obtained reliably, they shall be measured in
nominal amount.
3. Government subsidies calculated by adopting the gross method:
(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
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recognized; subsidies used to compensate relevant expenses or losses incurred shall be directly used to offset
related costs.
5.For government subsidies including asset-related part and income-related part, measures shall be taken to
distinguish different parts and carry out accounting treatment separately; Part difficult to distinguish shall be
classified as government subsidies related to income.
6. The government subsidies related to the daily activities of the Company shall be included into other
incomes or used to write down related costs and expenses in accordance with the essence of economic operations;
the government subsidies independent of the daily activities shall be included into the non-operating income and
expense.
7. For discount interest of preferential policy loans to be obtained by the Company, two measures shall be
adopted, including that the Ministry of Finance allocates the discount funds to the lending banks and that the
Ministry of Finance allocates the discount funds to the Company:
(1) In case the Ministry of Finance allocates the discount funds to the lending banks, and the lending bank
provides loans to the Company at preferential policy interest rate, the Company shall choose the following methods
for accounting treatment:
1) Taking the loan amount actually received as the entry value of the loan, and calculating relevant borrowing
costs based on the loan principal and the preferential policy interest rate.
2) Taking the fair value of loan as the entry value, calculate the borrowing costs by adopting the effective
interest rate method, and recognizing the difference between the actual received amount and the fair value of the
loan as deferred income. Deferred income shall be amortized by adopted the effective interest rate method within
the duration of loan to offset relevant borrowing costs.
(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.
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
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deferred tax assets shall be written down. If it is likely to obtain enough taxable income, the write down amount
shall be reversed.
4. The current income tax and deferred tax of the Company shall be recognized as income tax expense or
income, and shall be included in the current profits and losses, except for income tax arising from the following
circumstances: (1) consolidation; (2) transactions or matters directly recognized in the owner's equity.
42. Lease
(1) Accounting treatment of operating lease
1. Lessee
As the lessee, the Company recognizes the right-of-use assets and lease liabilities for the lease on the
beginning date of the lease term excluding short-term leases and leases of low-value assets to which the simplified
treatment applies.
After the starting date of the lease term, the Company uses the cost model to make subsequent measurement of
the right-of-use assets. The provision for the depreciation of the right-of-use assets shall be made with reference to
the relevant depreciation provisions of the Accounting Standards for Business Enterprises No. 4 - Fixed Assets. If
the lessee can reasonably determine that it will obtain the ownership of the leased assets upon the expiration of the
lease term, provision for depreciation shall be made within the remaining service life of the leased assets. If it is not
reasonable to be certain that the lessee will obtain the ownership of the leased assets at the expiry of the lease term,
the leased assets should be calculated and withdrawn as depreciation over the shorter one of the lease term or the
remaining service life. The Company determines whether the right-of-use assets are impaired in accordance with
the Accounting Standards for Business Enterprises No. 8 - Asset Impairment, and carries out accounting treatment
for the identified impairment losses.
The Company calculates the interest expense of the lease liabilities in each period of the lease at the fixed
periodic interest rate, which is included in the current profits and losses. If the cost should be included in the cost of
relevant assets in accordance with the Accounting Standard for Business Enterprises No. 17 - Borrowing Costs and
other standards, such provisions shall prevail.
For short-term leases and low-value asset leases, the Company shall choose not to recognize right-of-use
assets and lease liabilities, and include the lease payments for short-term leases and low-value asset leases in the
relevant asset cost or current profit and loss according to the straight-line method during each period of the lease
term.
2. Lessor
During each period of the lease term, the Company as the lessor shall adopt the straight-line method to
recognize the rental revenue from operating lease as rental income. The lessor shall capitalize the initial direct cost
related to operating lease, and amortizes and includes such cost into the current profits and losses by installment
according to the same recognition base of the rental revenue during the lease term.
As for the fixed assets subject to operating leases, the Company shall calculate the depreciation of it by
adopting depreciation policy for similar assets. As for other leased assets, systematic and reasonable methods shall
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be adopted for its amortization according to the accounting standards for business enterprises applicable to this
asset. The Company determines whether the operating lease assets are impaired in accordance with Accounting
Standards for Business Enterprises, No. 8 -Asset Impairment, and carries out corresponding accounting treatment.
(2) Accounting treatment of financing lease
Accounting treatment of the Company as the lessee is shown in Note V 29, Note V 35 and Note V 42 (1).
As the lessor, the Company shall confirm the receivable payment for financial lease on the beginning date of
the lease term, terminate the recognition of financial lease assets, and calculate and recognize the interest income of
each period in the lease term according to the fixed periodic interest rate.
43. Other important accounting policies and accounting estimation
Hedge accounting
The hedge means the risk management activity where the enterprise designates the financial instruments as the
hedge instruments for the risk exposure due to the management of the specific risks such as foreign exchange risk,
interest rate risk, price risk, credit risk so that the fair value or the cash flow changes, which is expected to
countervail all or part of the fair value or cash flow change of the hedged projects.
1. In the hedge accounting, the hedge is divided into fair value hedge, cash flow hedge, and net investment
hedge for overseas operation.
2. Only when the fair value hedge, cash flow hedge, or net investment hedge for overseas operation meet the
following conditions at the same time can the hedge accounting method stipulated by the Code for handling:
(1) The hedge relationship is only composed of the hedge instruments and hedged projects that meet the
conditions; (2) When the hedge begins, the enterprise officially designates the hedge instruments and hedged
projects and prepares the written documents about hedge relationship and the risk management strategies and risk
management objectives related to the hedge for the enterprise. These documents at least describe the hedge
instrument, hedged projects, nature of the hedged risks, and evaluation methods on hedge effectiveness (including
the forming reason analysis for invalid part of the hedge and the recognition 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
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unbalance of the relative weight between the hedged projects and hedge instruments, which will cause the hedge
invalidation and may generate the accounting results not consistent with the hedge accounting objectives.
The enterprise shall continuously evaluate whether the hedge relationship conforms to the hedge effectiveness
requirements when the hedge begins and during the sequent periods, especially for the analysis of the forming
reasons why it is expected to affect the hedge relationship due to the invalid part of the hedge during the residual
periods of the hedge. The enterprise shall at least evaluate the hedge relationship on the day of balance sheet and
when the major changes will happen for relevant situations affecting the hedge effectiveness requirements.
If the hedge relationship does not conform to the hedge effectiveness requirements any more due to the hedge
ratio, but the risk management objective to designate the hedge relationship does not change, the enterprise shall re-
balance the hedge relationship.
3. Accounting handling of the hedge.
(1) Fair value hedge
If the fair value hedge meets the conditions of the hedge accounting methods, it shall be handled in accordance
with the provisions below:
(a) The profit or loss generated by the hedge instrument shall be incorporated into the profits and losses. If the
hedge instrument is used to hedge the non-tradable equity instrument investment (or its components) which is
measured at fair value with the changes including in other comprehensive income, the profit or loss generated by
the hedge instruments shall be incorporated into other comprehensive income.
(b) The profit or loss generated by the hedged projects due to the hedge risk exposure shall be incorporated
into the current profit or loss. At the same time, the account value shall be adjusted for the confirmed hedged
projects measured at the fair value.
(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:
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(a) If the profit or loss generated by the hedge instrument belongs to the valid part of the hedge, it shall be
incorporated into other comprehensive income.
When all or part of the overseas business is disposed, the above profit or loss of hedge instruments included in
other comprehensive income shall be transferred out and incorporated into the current profits and losses.
(b) If the profit or loss generated by the hedge instrument belongs to the invalid part of the hedge, it shall be
incorporated into the current profits and losses.
Repurchase shares
If the Company or its subsidiaries shares are acquired due to the reduction of registered capital or reward of
employees, the amount actually paid shall be treated as the treasury share, and the record shall be made for
reference. If the repurchase shares are cancelled, the capital reserve will be offset by the difference between the
total par value of the cancelled shares and the number of cancelled shares and the amount paid for the actual
repurchase. If the capital reserve is insufficient to be offset, the retained earnings shall be offset; If the repurchase
shares are awarded to the employees of the Company as equity-settled share-based payment, when the employees
exercise the right to purchase the shares of the Company or its subsidiaries and receive the price, the cost of
treasury shares delivered to the employees and the accumulated amount of capital reserve (other capital reserves)
during the waiting period shall be resold, and the capital reserve (capital premium or share premium) shall be
adjusted according to the difference.
44. Important accounting policy and accounting estimation changes
(1) Important accounting policy changes
Applicable □ Not applicable
Contents and reasons of the accounting policy change Approval procedures Remarks
On December 30, 2021, the Ministry of Finance issued
Interpretation of Accounting Standards for Business Enterprises
No. 15 (CK [2021] No. 35) (hereinafter referred to as The changes in accounting
Deliberated and passed by the
"Interpretation No. 15"), and the contents of "Accounting policies have no effect on the
32nd Meeting of the 7th Board
treatment of external sales of products or by-products produced financial statements in the
of Directors
by an enterprise before the fixed assets meet the expected reporting period.
conditions for use or during the R&D process" and "Judgment
about loss contract" were implemented from January 1, 2022.
On November 30, 2022, the Ministry of Finance issued
Accounting Standards for Business Enterprises No. 16 (CK
[2022] No. 31, hereinafter referred to as "Interpretation No. 16"),
in which "accounting treatment for deferred income tax related
to assets and liabilities arising from individual transactions that
The changes in accounting
are not exempt from initial recognition" was implemented from Deliberated and passed by the
policies have no effect on the
January 1, 2023, allowing enterprises to execute it in advance 32nd Meeting of the 7th Board
financial statements in the
from the year of publication, and "accounting treatment for the of Directors
reporting period.
income tax impact of dividends related to financial instruments
classified as equity instruments by the issuer" and "accounting
treatment for enterprises modifying cash-settled share-based
payments to equity settled share-based payments" were
implemented from the date of publication.
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(2) Important accounting estimation changes
□ Applicable Not applicable
45. Others
None
VI. Tax
1. Main tax types and tax rate
Tax type Tax basis Tax rate
VAT (value-added tax) Revenue from sales of goods 13%、9%、6%、3%
Consumption tax Paid turnover tax amount 7%
City maintenance and construction tax Paid turnover tax amount 3%
Please refer to the different corporate income tax rates,
Corporate income tax Taxable income subject of taxation and their tax rate disclosures below for
details.
Where there are any taxpayers with different corporate income tax rates, details shall be disclosed.
Name of taxpayer Income tax rate
Shenzhen Topband Co., Ltd. 15%
Shenzhen Topband Software Technology Co., Ltd. 15%
Shenzhen Topband Automation Technology Co., Ltd. 25%
Shenzhen Topband Battery Co., Ltd. 15%
Chongqing Topband Industrial Co., Ltd. 25%
Topband (Hong Kong) Co., Ltd. 16.5%
Huizhou Topband Electrical Technology Co., Ltd. 15%
TOPBAND INDIA PRIVATE LIMITED 25.17%
Shenzhen YAKO Automation Technology Co., Ltd. 15%
Shenzhen Allied Control System Co., Ltd. 15%
Shenzhen Yansheng Software Co., Ltd. 15%
Ningbo Topband Intelligent Control Co., Ltd. 25%
Shenzhen Meanstone Intelligent Technology Co., Ltd. 20%
Hangzhou Zhidong Motor Technology Co., Ltd. 25%
Taixing Ninghui Lithium Battery Co., Ltd. 15%
Shenzhen Topband Supply Chain Services Co., Ltd. 25%
Shenzhen Topband Investment Co., Ltd. 25%
Shenzhen Spark IOT Technology Co., Ltd. 20%
Shenzhen Zhongli Consulting Co., Ltd. 20%
Shenzhen Tunnu Innovation Co., Ltd. 20%
TUNNU INNOVATION,INC 21%
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Shenzhen Senxuan Technology Co., Ltd. 20%
Shenzhen Tengyi Industrial Co., Ltd. 20%
Topband (Qingdao) Intelligent Control Co., Ltd. 20%
Shenzhen Topband Automotive Electronics Co., Ltd. 20%
TOPBAND JAPAN Co.,Ltd 23.2%
Tunnu Innovation (Hong Kong) Limited 8.25%
Topband （Vietnam) Co.,ltd 20%
TOPBAND SMART DONGNAI(VIETNAM) Co.,ltd 20%
Topband Germany GmbH 15.825%
Huizhou Topband Lithium Battery Co., Ltd. 20%
Nantong Topband Youneng Technology Co., Ltd. 25%
Huizhou YAKO Automation Technology Co., Ltd. 25%
Shenzhen Topband Motor Co., Ltd. 20%
Shenzhen Yueshang Robot Co., Ltd. 20%
Shenzhen Xiaoyou Aitu Innovation Technology Co., Ltd. 20%
Huizhou Chiding Technology Co., Ltd. 20%
Q.B.PTE.LTD 17%
TOPBAND MEXICO,S.DE R.L.DE C.V. 30%
TOPBAND SMART EUROPE COMPANY LIMITED S.R.L. 16%
2. Tax preference
On December 11, 2020, the Company obtained the Certificate for High-tech Enterprise that is numbered
GR202044206158 and issued by Shenzhen Science and Technology Innovation Commission, Shenzhen Finance
Bureau and Shenzhen Tax Service, State Taxation Administration. This Certificate is valid within 3 years from the
date of issuance. The corporate income tax rate applicable for the Company from 2021 to 2023 is 15% in
accordance with relevant provisions of the Law of the People's Republic of China on Enterprise Income Tax,
Regulations of the People's Republic of China on the Implementation of Enterprise Income Tax and the
Management Measures for the Certification of High-tech Enterprises.
On December 19, 2022, Shenzhen Topband Software Technology Co., Ltd. obtained the Certificate for High-
tech Enterprise that is numbered GR202244203890 and issued by Shenzhen Science and Technology Innovation
Commission, Shenzhen Finance Bureau and Shenzhen Tax Service, State Taxation Administration. This Certificate
is valid within 3 years from the date of issuance. The corporate income tax rate applicable for the Company from
2022 to 2024 is 15% in accordance with relevant provisions of the Law of the People's Republic of China on
Enterprise Income Tax, Regulations of the People's Republic of China on the Implementation of Enterprise Income
Tax and the Management Measures for the Certification of High-tech Enterprises.
On December 23, 2021, Shenzhen Topband Battery Co., Ltd. obtained the Certificate for High-tech Enterprise
that is numbered GR202144203102 and issued by Shenzhen Science and Technology Innovation Commission,
Shenzhen Finance Bureau and Shenzhen Tax Service, State Taxation Administration. This Certificate is valid
within 3 years from the date of issuance. The corporate income tax rate applicable for the Company from 2021 to
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2023 is 15% in accordance with relevant provisions of the Law of the People's Republic of China on Enterprise
Income Tax, Regulations of the People's Republic of China on the Implementation of Enterprise Income Tax and
the Management Measures for the Certification of High-tech Enterprises.
On December 20, 2021, Huizhou Topband Electrical Technology Co., Ltd. obtained the Certificate for High-
tech Enterprise that is numbered GR202144003640 and issued by the Department of Science and Technology of
Guangdong Province, the Department of Finance of Guangdong Province, and Guangdong Provincial Tax Service,
State Taxation Administration. This Certificate is valid within 3 years from the date of issuance. The corporate
income tax rate applicable for the Company from 2021 to 2023 is 15% in accordance with relevant provisions of
the Law of the People's Republic of China on Enterprise Income Tax, Regulations of the People's Republic of
China on the Implementation of Enterprise Income Tax and the Management Measures for the Certification of
High-tech Enterprises.
On December 23, 2021, Shenzhen YAKO Automation Technology Co., Ltd. obtained the Certificate for High-
tech Enterprise that is numbered GR202144205479 and issued by Shenzhen Science and Technology Innovation
Commission, Shenzhen Finance Bureau and Shenzhen Tax Service, State Taxation Administration. This Certificate
is valid within 3 years from the date of issuance. The corporate income tax rate applicable for the Company from
2021 to 2023 is 15% in accordance with relevant provisions of the Law of the People's Republic of China on
Enterprise Income Tax, Regulations of the People's Republic of China on the Implementation of Enterprise Income
Tax and the Management Measures for the Certification of High-tech Enterprises.
On December 23, 2021, Shenzhen Allied Control System Co., Ltd. obtained the Certificate for High-tech
Enterprise that is numbered GR202144206368 and issued by Shenzhen Science and Technology Innovation
Commission, Shenzhen Finance Bureau and Shenzhen Tax Service, State Taxation Administration. This Certificate
is valid within 3 years from the date of issuance. The corporate income tax rate applicable for the Company from
2021 to 2023 is 15% in accordance with relevant provisions of the Law of the People's Republic of China on
Enterprise Income Tax, Regulations of the People's Republic of China on the Implementation of Enterprise Income
Tax and the Management Measures for the Certification of High-tech Enterprises.
On December 23, 2021, Shenzhen Yansheng Software Co., Ltd. obtained the Certificate for High-tech
Enterprise that is numbered GR202144207744 and issued by Shenzhen Science and Technology Innovation
Commission, Shenzhen Finance Commission and Shenzhen Tax Service, State Taxation Administration. This
Certificate is valid within 3 years from the date of issuance. The corporate income tax rate applicable for the
Company from 2021 to 2023 is 15% in accordance with relevant provisions of the Law of the People's Republic of
China on Enterprise Income Tax, Regulations of the People's Republic of China on the Implementation of
Enterprise Income Tax and the Management Measures for the Certification of High-tech Enterprises.
On November 30, 2021, Taixing Ninghui Lithium Battery Co., Ltd. obtained the Certificate for High-tech
Enterprise that is numbered GR202132010782 and issued by the Jiangsu Provincial Department of Science and
Technology, the Department of Finance of Jiangsu Province, and Jiangsu Provincial Tax Service, State Taxation
Administration. This Certificate is valid within 3 years from the date of issuance. The corporate income tax rate
applicable for the Company from 2021 to 2023 is 15% in accordance with relevant provisions of the Law of the
People's Republic of China on Enterprise Income Tax, Regulations of the People's Republic of China on the
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Implementation of Enterprise Income Tax and the Management Measures for the Certification of High-tech
Enterprises.
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 RMB 1 million in their annual taxable incomes by 25% and that of more than
RMB 1 million but not more than RMB 3 million 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 RMB 1 million. 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 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 Senxuan
Technology Co., Ltd., Shenzhen Tengyi Industrial Co., Ltd., Topband (Qingdao) Intelligent Control Co., Ltd.,
Shenzhen Topband Automotive Electronics Co., Ltd., Shenzhen Yueshang Robot Co., Ltd., Shenzhen Topband
Motor Co., Ltd., Shenzhen Xiaoyou Aitu Innovation Technology Co., Ltd., and Huizhou Chiding Technology Co.,
Ltd. that are subsidiaries and sub-subsidiaries.
3. Others
None
VII. Notes to Items of Consolidated Financial Statements
1. Monetary capital
Unit: RMB
Items Ending balance Beginning balance
Cash on hand 606,436.16 1,015,081.13
Bank deposit 1,210,218,469.79 1,337,414,181.07
Other monetary capital 192,201,165.39 429,150,793.87
Total 1,403,026,071.34 1,767,580,056.07
Including: total amount deposited abroad 412,196,063.34 177,157,407.23
Other description:
1. Other monetary capital mainly includes the large-denomination certificates of deposit of RMB
100,000,000.00 and the fixed-time deposit of RMB 50,000,000.00.
2. At the end of the period, the other restricted monetary capital amounts to RMB 18,937,494.54 million. For
details, please refer to Note "VII. (LXXXI)" in this financial report.
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3. At the end of the period, there is no amount deposited overseas and with the repatriation restricted.
2. Tradable financial assets
Unit: RMB
Items Ending balance Beginning balance
Financial asset at fair value and changes through profit or loss 342,959,450.31 214,999,336.74
Including:
Including: financial products 1,790,866.41 4,000,000.00
Investment in equity instruments 341,168,583.90 210,999,336.74
Including:
Total 342,959,450.31 214,999,336.74
Other description:
3. Derivative financial assets
□ Applicable Not applicable
4. Notes receivable
(1) List of classification of notes receivable
Unit: RMB
Items Ending balance Beginning balance
Bank acceptance instruments 40,056,132.32 141,695,340.12
Commercial acceptance bill 11,735,626.58 19,964,130.09
Total 51,791,758.90 161,659,470.21
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportion Book value Proportion Book value
Amount Proportion Amount of Amount Proportion Amount of
provision provision
Notes
receivable with
40,056,132.32 76.78% 40,056,132.32 150,816,667.92 93.09% 150,816,667.92
single provision
for bad debts
Including:
Bank
40,056,132.32 76.78% 40,056,132.32 141,695,340.12 87.46% 141,695,340.12
acceptance bill
Commercial
9,121,327.80 5.63% 9,121,327.80
acceptance bill
Notes
receivable with 12,111,069.74 23.22% 375,443.16 3.10% 11,735,626.58 11,189,682.44 6.91% 346,880.15 3.10% 10,842,802.29
provision for
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bad debts by
portfolio
Including:
Commercial
12,111,069.74 23.22% 375,443.16 3.10% 11,735,626.58 11,189,682.44 6.91% 346,880.15 3.10% 10,842,802.29
acceptance bill
Total 52,167,202.06 100.00% 375,443.16 0.72% 51,791,758.90 162,006,350.36 100.00% 346,880.15 0.21% 161,659,470.21
Provision for bad debts by portfolio: 375,443.16
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Commercial acceptance bill 12,111,069.74 375,443.16 3.10%
Total 12,111,069.74 375,443.16
Explanation of the basis for determining the portfolio:
If the provision for bad debts on notes receivable is based on the general model of expected credit loss, the
information about the provision for bad debts shall be disclosed by referring to the disclosure method of other
receivables:
□ Applicable Not applicable
(2) Provision for bad debts withdrawn, recovered or reversed in current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Beginning Ending
Category Recover or Write-
balance Provision Other balance
reversal off
Provision for bad debts - notes
346,880.15 28,563.01 375,443.16
receivable
Total 346,880.15 28,563.01 375,443.16
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 period
□ Applicable Not applicable
(4) Notes receivable endorsed or discounted by the Company at the end of the period and not due yet on
balance sheet date
Unit: RMB
Items Amount derecognized at the end of period Amount not derecognized at the end of the period
Bank acceptance instruments 24,122,359.22
Commercial acceptance bill 1,000,000.00
Total 25,122,359.22
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(5) Notes converted into receivables at the end of period due to unfulfillment of drawer
□ Applicable Not applicable
(6) Notes receivable actually written off in the current period
□ Applicable Not applicable
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5. Accounts receivable
(1) Disclosure of accounts receivable by category
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category Proportion Proportion
Book value Book value
Amount Proportion Amount of Amount Proportion Amount of
provision provision
Accounts receivable with
single provision for bad 82,546,521.29 3.04% 82,546,521.29 100.00% 84,081,324.24 3.60% 70,915,243.12 84.34% 13,166,081.13
debts
Including:
Accounts receivable with a
single significant amount
82,546,521.29 3.04% 82,546,521.29 100.00% 82,399,228.54 3.53% 69,233,147.42 84.02% 13,166,081.13
and single bad debt
provision
Receivables with not
significant amount but with
1,682,095.70 0.07% 1,682,095.70 100.00%
single provision for bad
debts
Accounts receivable with
provision for bad debts by 2,634,259,443.00 96.96% 84,525,403.34 3.21% 2,549,734,039.66 2,247,009,076.28 96.40% 72,013,691.92 3.20% 2,174,995,384.35
portfolio
Including:
Accounts receivable with
provision for bad debts by 2,634,259,443.00 96.96% 84,525,403.34 3.21% 2,549,734,039.66 2,247,009,076.28 96.40% 72,013,691.92 3.20% 2,174,995,384.35
aging combination
Total 2,716,805,964.29 100.00% 167,071,924.63 6.15% 2,549,734,039.66 2,331,090,400.52 100.00% 142,928,935.04 6.13% 2,188,161,465.48
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Single provision for bad debts: 82,546,521.29
Unit: RMB
Ending balance
Name Provision for bad Proportion Reasons for
Book balance
debts of provision provision
Receivables with significant individual amount and single It is difficult
82,546,521.29 82,546,521.29 100.00%
provision for bad debts to recover
Total 82,546,521.29 82,546,521.29
Provision for bad debts by portfolio: 84,525,403.34
Unit: RMB
Ending balance
Name Proportion of
Book balance Provision for bad debts
provision
Accounts receivable with provision for bad debts by
2,634,259,443.00 84,525,403.34 3.21%
combination (aging analysis method)
Total 2,634,259,443.00 84,525,403.34
Explanation of the basis for determining the portfolio:
If the provision for bad debts on notes receivable is based on the general model of expected credit loss, the
information about the provision for bad debts shall be disclosed by referring to the disclosure method of other
receivables:
□ Applicable Not applicable
Disclosure by aging
Unit: RMB
Aging Book balance
Within 1 year (including 1 year) 2,634,692,660.36
1-2 years 41,435,174.20
2-3 years 37,842,457.63
Above 3 years 2,835,672.10
3-4 years 1,167,983.94
4-5 years 1,387,990.68
Above 5 years 279,697.48
Total 2,716,805,964.29
(2) Provision for bad debts withdrawn, recovered or reversed in current period
Provision for bad debts in the current period:
Unit: RMB
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Amount changed in the current period
Beginning
Category Recover or Ending balance
balance Provision Write-off Other
reversal
Provision for
142,928,935.04 41,773,385.68 17,907,620.17 277,224.08 167,071,924.63
bad debts
Total 142,928,935.04 41,773,385.68 17,907,620.17 277,224.08 167,071,924.63
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: RMB
Items Write-off amount
Accounts receivable actually written off 17,907,620.17
Of which the significant write-offs of accounts receivable:
Unit: RMB
Whether the
Write-off
Nature of Reason for write- payment is
Name of unit Write-off amount procedures
receivables off generated from
implemented
related transactions
It is expected to be Approved by the
Customer A Payment for goods 15,246,555.50 difficult to recover management of the No
the account Company
Total 15,246,555.50
Explanation of accounts receivable written off:
(4) Accounts receivable of top five ending balances grouped by debtors
Unit: RMB
Ending balance of accounts Proportion to total ending Ending balance of provision
Name of unit
receivable balances of accounts receivable for bad debts
No. 1 879,181,599.43 32.36% 27,272,298.58
No. 2 65,080,405.66 2.40% 65,080,405.66
No. 3 57,925,548.32 2.13% 1,795,692.00
No. 4 54,623,359.26 2.01% 1,693,324.13
No. 5 54,349,143.94 2.00% 1,684,823.46
Total 1,111,160,056.61 40.90%
(5) Amount of assets and liabilities formed by transferring accounts receivable and continuing to be involved
Other description:
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(6) Accounts receivable derecognized due to transfer of financial assets
6. Receivables financing
Unit: RMB
Items Ending balance Beginning balance
Bank acceptance bill 79,652,525.19 26,520,757.05
Accounts receivable 173,392,414.33 10,381,750.80
Yunxin 1,943,263.08
Total 254,988,202.60 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
Other description:
7. Prepayments
(1) List of advance payments by aging
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 52,386,993.93 98.83% 40,538,366.14 98.11%
1-2 years 512,018.85 0.97% 666,816.83 1.61%
2-3 years 16,728.11 0.03% 94,392.13 0.23%
Above 3 years 89,916.06 0.17% 20,709.92 0.05%
Total 53,005,656.95 41,320,285.02
Explanation of the cause for untimely settlement of advance payments aging more than one year with important
amounts:
(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 RMB
24,008,214.25, accounting for 45.29% of the total ending balances of prepayments.
Other description:
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8. Other receivables
Unit: RMB
Items Ending balance Beginning balance
Other receivables 77,743,150.98 50,156,221.82
Total 77,743,150.98 50,156,221.82
(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: RMB
Nature of payment Book balance at the end of the period Book balance at the beginning of the period
Margin, deposit 25,628,574.96 28,560,062.74
Export rebate 21,954,980.84 14,317,249.26
Convertible loan 14,000,000.00
Employee personal loan 12,085,358.61 11,891,648.41
Compensation 10,820,710.33
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Other 882,396.18 638,217.83
Total 85,372,020.92 55,407,178.24
2) Provision for bad debts
Unit: RMB
First stage Second stage Third stage
Provision for bad debts Expected credit loss Expected credit loss for Expected credit loss for the Total
in the next 12 the entire duration (no entire duration (credit
months credit impairment) impairment occurred)
Balance as of January 1, 2022 5,250,956.42 5,250,956.42
Balance as of January 1, 2022 in
the current period
Accrual in the current period 2,344,758.98 2,344,758.98
Amount charged off in the
26,845.33 26,845.33
current period
Other 59,999.87 59,999.87
Balance as of December 31,
7,628,869.94 7,628,869.94
2022
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable Not applicable
Disclosure by aging
Unit: RMB
Aging Book balance
Within 1 year (including 1 year) 58,018,314.16
Subtotal within 1 year 58,018,314.16
1-2 years 18,433,375.67
2-3 years 1,554,331.58
Above 3 years 7,365,999.51
3-4 years 5,508,631.96
4-5 years 728,086.38
Above 5 years 1,129,281.17
Total 85,372,020.92
3) Bad debt provision withdrawn, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Category Beginning balance Ending balance
Provision Recover or reversal Write-off Other
Provision for bad debts 5,250,956.42 2,344,758.98 26,845.33 59,999.87 7,628,869.94
Total 5,250,956.42 2,344,758.98 26,845.33 59,999.87 7,628,869.94
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Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
None
4) Other receivables actually written off in the current period
Unit: RMB
Items Write-off amount
Other accounts receivable cancelled after verification 26,845.33
Of which the significant write-offs of other receivables: None
5) Other receivables of top five ending balances grouped by debtors
Unit: RMB
Name of Nature of Ending Proportion to total ending Ending balance of
Aging
unit payment balance balances of other receivables provision for bad debts
No. 1 Export rebate 21,954,980.84 Within 1 year 25.72%
No. 2 Convertible loan 14,000,000.00 Within 1 year, 1-2 years 16.40%
No. 3 Compensation 10,820,710.33 Within 1 year 12.67% 541,035.52
No. 4 Margin, deposit 3,500,000.00 1-2 years 4.10% 350,000.00
No. 5 Margin, deposit 3,499,529.44 1-2 years 4.10% 349,952.94
Total 53,775,220.61 62.99% 1,240,988.46
6) Receivables involving government subsidies
None
7) Other receivables derecognized due to transfer of financial assets
None
8) Amount of assets and liabilities formed by transferring other receivables and continuing to be involved
None
9. Inventory
Whether the Company is required to comply with the disclosure requirements of the real estate industry
No
(1) Inventory classification
Unit: RMB
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Ending balance Beginning balance
Provision for Provision for
decline in value decline in value
Items of inventories or of inventories or
Book balance provision for Book value Book balance provision for Book value
impairment of impairment of
contract contract
performance cost performance cost
Raw materials 1,173,950,054.61 83,688,904.02 1,090,261,150.59 1,373,010,350.15 87,214,891.71 1,285,795,458.44
Goods in
125,103,265.61 125,103,265.61 108,042,400.38 108,042,400.38
process
Goods on hand 577,199,818.92 12,958,236.03 564,241,582.89 601,322,955.25 15,914,381.24 585,408,574.01
Goods shipped
114,595,833.38 3,797,469.37 110,798,364.01 122,939,046.46 3,114,595.53 119,824,450.93
in transit
Self-
manufactured
107,289,297.10 4,809,578.57 102,479,718.53 80,789,830.11 3,180,906.96 77,608,923.15
semi-finished
product
Materials
entrusted for 2,670.00 2,670.00 7,625,498.26 7,625,498.26
processing
Low priced and
easily worn 65,460.90 65,460.90 97,460.87 97,460.87
articles
Total 2,098,206,400.52 105,254,187.99 1,992,952,212.53 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: RMB
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 59,729,903.67 61,424.83 63,317,316.19 83,688,904.02
Goods on hand 15,914,381.24 4,289,405.37 3,577.15 7,249,127.73 12,958,236.03
Goods shipped in
3,114,595.53 780,920.74 98,046.90 3,797,469.37
transit
Self-manufactured
semi-finished 3,180,906.96 5,157,733.16 3,573.67 3,532,635.22 4,809,578.57
product
Total 109,424,775.44 69,957,962.94 68,575.65 74,197,126.04 105,254,187.99
(3) Explanation of capitalized amount of borrowing costs included in ending balance of inventory
None
(4) Explanation of current amortization amount of contract performance cost
None
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10. Contractual assets
If the provision for bad debts 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:
None
11. Assets held for sale
None
12. Non-current assets due within one year
None
13. Other current assets
Unit: RMB
Items Ending balance Beginning balance
VAT to be deducted 143,163,557.71 92,861,498.25
Other prepaid taxes 10,472,653.58 19,851,631.11
IPO-related fees 1,490,566.02 358,490.57
Total 155,126,777.31 113,071,619.93
Other description:
None
14. Debt investment
□ Applicable Not applicable
Other descriptions: None
15. Other debt investment
□ Applicable Not applicable
Other description:
16. Long-term receivables
(1) Situation of long-term receivables
□ Applicable Not applicable
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(2) Long-term receivables derecognized due to transfer of financial assets
(3) Amount of assets and liabilities formed by transferring long-term receivables and continuing to be
involved
Other descriptions: None
17. Long-term equity investment
Unit: RMB
Ending
Ending balance of
Changes in increase or decrease in the current period balance (book provision
value) for
Beginning impairment
Investee balance (book Profits and Declaratio
value) Decrease losses on Adjustment to Other n of Provision
Additional
in investment other change distributio for Othe
investmen
investmen recognized comprehensiv s in n for cash impairmen r
t
t under equity e income equity dividends t
method or profits
I. Joint venture
II. Associated enterprises
Tai'an
Yuchengxin
9,764,719.1
Power Supply
9
Technology
Co., Ltd.
Shenzhen
Daka
5,975,059.85 -88,713.69 5,886,346.16
Optoelectronic
s Co., Ltd.
Pas Electronic
-
Technology
7,967,433.99 1,038,598.0 6,928,835.90
(Nanjing) Co.,
9
Ltd.
Shanghai
-
Yidong Power 12,176,633.9 10,735,476.8
1,441,157.1
Technology 8 5
3
Co., Ltd.
-
26,119,127.8 23,550,658.9 9,764,719.1
Subtotal 2,568,468.9
2 1 9
1
-
26,119,127.8 23,550,658.9 9,764,719.1
Total 2,568,468.9
2 1 9
1
Other descriptions: None
18. Investment in other equity instruments
None
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19. Other non-current financial assets
None
20. Investment property
(1) Investment property with cost measurement model
Applicable □ Not applicable
Unit: RMB
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 and
24,125,005.55 24,125,005.55
construction in progress
(3) Increment from consolidation
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Ending balance 119,070,562.06 119,070,562.06
II. Accumulated depreciation and accumulated amortization
1. Beginning balance 7,970,442.20 7,970,442.20
2. Increase in the current period 4,857,342.01 4,857,342.01
(1) Provision or amortization 2,592,503.52 2,592,503.52
(2) Depreciation transfer-in of fixed assets 2,264,838.49 2,264,838.49
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Ending balance 12,827,784.21 12,827,784.21
III. Provision for impairment
1. Beginning balance
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Ending balance
IV. Book value
1. Ending book value 106,242,777.85 106,242,777.85
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2. Beginning book value 86,975,114.31 86,975,114.31
(2) Investment property with fair value measurement model
□ Applicable Not applicable
(3) Investment property without property certificate of title
None
21. Fixed assets
Unit: RMB
Items Ending balance Beginning balance
Fixed assets 1,840,358,093.74 1,299,517,887.54
Total 1,840,358,093.74 1,299,517,887.54
(1) Situation about fixed assets
Unit: RMB
Houses and Machinery and Transportation Office equipment
Items Total
buildings equipment equipment and others
I. Original book value:
1. Beginning balance 816,035,996.54 863,846,203.58 2,552,040.27 59,078,081.95 1,741,512,322.34
2. Increase in the current
419,186,324.48 282,998,527.08 621,093.26 10,684,365.39 713,490,310.21
period
(1) Purchase 139,646,793.81 582,718.38 10,319,361.01 150,548,873.20
(2) Transfer into
417,392,956.11 139,326,339.05 556,719,295.16
projects under construction
(3) Increment from
consolidation
(4) Impact of exchange rate
1,793,368.37 4,025,394.22 38,374.88 365,004.38 6,222,141.85
changes
3. Decrease in the current
24,585,353.16 25,832,082.55 220,383.14 2,330,239.36 52,968,058.21
period
(1) Disposal or
25,832,082.55 220,383.14 2,330,239.36 28,382,705.05
scrapping
(2) Decrease of transfer-out of
24,125,005.55 24,125,005.55
investment property
(3) Transfer into projects under
460,347.61 460,347.61
construction
4. Ending balance 1,210,636,967.86 1,121,012,648.11 2,952,750.39 67,432,207.98 2,402,034,574.34
II. Accumulated depreciation
1. Beginning balance 118,546,655.80 293,028,629.51 2,159,834.87 28,259,314.62 441,994,434.80
2. Increase in the current
27,647,052.98 107,387,569.44 338,235.67 9,595,146.22 144,968,004.31
period
(1) Accrual 27,743,709.19 107,672,099.44 334,441.58 9,473,750.89 145,224,001.10
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(2) Impact of exchange rate
-96,656.21 -284,530.00 3,794.09 121,395.33 -255,996.79
changes
3. Decrease in the current
2,264,838.49 20,839,388.93 209,363.98 1,972,367.11 25,285,958.51
period
(1) Disposal or
20,839,388.93 209,363.98 1,972,367.11 23,021,120.02
scrapping
(2) Decrease of transfer-out of
2,264,838.49 2,264,838.49
investment property
4. Ending balance 143,928,870.29 379,576,810. 02 2,288,706.56 35,882,093.73 561,676,480.60
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 1,066,708,097.57 741,435,838.09 664,043.83 31,550,114.25 1,840,358,093.74
2. Beginning book value 697,489,340.74 570,817,574.07 392,205.40 30,818,767.33 1,299,517,887.54
(2) Temporary idle fixed assets
None
(3) Fixed assets leased out through operating lease
None
(4) Fixed assets without certificate of title
Unit: RMB
Items Book value Reasons for failure to complete certificate of title
Vietnam Topband Property 1,148,158.87 The property rights are currently being processed
Plant in Dong Nai, Vietnam 73,052,318.39 Short completion time, the property rights are currently being processed
Topband (India) Plant 87,159,009.95 Short completion time, the property rights are currently being processed
Other description:
None
(5) Disposal of fixed assets
None
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22. Construction in progress
Unit: RMB
Items Ending balance Beginning balance
Construction in progress 234,775,312.11 495,248,025.93
Total 234,775,312.11 495,248,025.93
(1) Projects under construction
Unit: RMB
Ending balance Beginning balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Ningbo Topband
6,548,784.76 6,548,784.76 342,090,917.50 342,090,917.50
Industrial Park
Test equipment to be
90,444,560.92 90,444,560.92 102,011,463.64 102,011,463.64
commissioned
Chongqing Yiyuan 16,356,912.92 16,356,912.92
Topband (India) Plant 5,360,095.79 5,360,095.79 15,671,909.07 15,671,909.07
Vietnam Dong Nai
1,229,894.49 1,229,894.49 7,740,644.30 7,740,644.30
Decoration
Huizhou YAKO
78,399,893.68 78,399,893.68 3,452,853.07 3,452,853.07
Automation Plant
Decoration of Huizhou
1,155,051.38 1,155,051.38 2,966,677.50 2,966,677.50
Plant
Huizhou Electrical No.
2 Industrial Park Phase-I 16,352,994.82 16,352,994.82 2,916,753.17 2,916,753.17
Project
Qingdao Plant 1,804,902.19 1,804,902.19 1,086,337.54 1,086,337.54
Dormitory renovation of
689,406.28 689,406.28 953,557.22 953,557.22
Huizhou plant
Nantong Lithium
5,259,209.25 5,259,209.25
Battery Industrial Park
Sporadic items 3,113,633.24 3,113,633.24
Romania Plant 22,102,695.19 22,102,695.19
Plant Decoration in
2,314,190.12 2,314,190.12
Shenzhen
Total 234,775,312.11 234,775,312.11 495,248,025.93 495,248,025.93
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(2) Changes in the important projects under construction in the current period
Unit: RMB
Proportion Including:
Interest
Amount of of Accumulated interest
Other capitalization Source
Beginning Increase in the transfer into accumulated Project amount of capitalization
Project name Budget decrements Ending balance rate in the of
balance current period fixed assets project progress interest amount in
this period current capitals
this period investment capitalization the current
period
in budget period
Chongqing Capital
230,000,000.00 16,356,912.92 14,443,726.59 0.00 30,800,639.51 0.00 96.44% 100%
Yiyuan raising
Topband
Huizhou No.
800,000,000.00 2,916,753.17 13,436,241.65 0.00 0.00 16,352,994.82 1.68% 2% Other
2 Industrial
Park
Ningbo
Topband
465,704,300.00 342,090,917.50 56,336,651.75 391,878,784.49 0.00 6,548,784.76 85.55% 86% 5,062,500.00 4,941,000.00 4.12% Other
Industrial
Park
Huizhou
YAKO
370,000,000.00 3,452,853.07 74,947,040.61 0.00 0.00 78,399,893.68 20.26% 21% Other
Automation
Plant
Topband
136,004,000.00 15,671,909.07 749,435.36 10,977,014.66 84,233.98 5,360,095.79 85.57% 86% Other
(India) Plant
Plant
Decoration in 31,220,000.00 21,104,060.60 -998,634.59 22,102,695.19 70.80% 71% Other
Romania
Total 2,032,928,300.00 380,489,345.73 181,017,156.56 402,855,799.15 29,886,238.90 128,764,464.24 5,062,500.00 4,941,000.00
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(3) Provision for impairment of project under construction in the current period
None
(4) Engineering materials
Other descriptions: 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: RMB
Items Houses and buildings Total
I. Original book value
1. Beginning balance 74,075,277.49 74,075,277.49
2. Increase in the current period 84,765,139.75 84,765,139.75
(1) New lease 81,307,922.91 81,307,922.91
(2) Contract change 414,889.93 414,889.93
(3) Impact of exchange rate changes 3,042,326.91 3,042,326.91
3. Decrease in the current period 7,617,693.88 7,617,693.88
(1) Contract termination 4,524,536.41 4,524,536.41
(2) Contract change 3,093,157.47 3,093,157.47
4. Ending balance 151,222,723.36 151,222,723.36
II. Accumulated depreciation
1. Beginning balance 15,907,125.61 15,907,125.61
2. Increase in the current period 31,615,539.58 31,615,539.58
(1) Accrual 31,143,855.37 31,143,855.37
(2) Impact of exchange rate changes 471,684.21 471,684.21
3. Decrease in the current period 2,496,843.70 2,496,843.70
(1) Disposal 1,957,544.11 1,957,544.11
(2) Contract change 539,299.59 539,299.59
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4. Ending balance 45,025,821.49 45,025,821.49
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 106,196,901.87 106,196,901.87
2. Beginning book value 58,168,151.88 58,168,151.88
Other description:
None
26. Intangible assets
(1) Situation of intangible assets
Unit: RMB
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 23,753,932.01 9,728,450.00 668,030,120.07
2. Increase in the current
102,556,578.02 92,727,166.97 3,702,926.37 198,986,671.36
period
(1) Purchase 100,690,355.00 3,702,926.37 104,393,281.37
(2) Internal R&D 92,727,166.97 92,727,166.97
(3) Increment from
consolidation
(4) Impact of exchange rate
1,866,223.02 1,866,223.02
changes
3. Decrease in the current
period
(1) Disposal
4. Ending balance 340,787,809.19 435,321.58 488,608,352.28 27,456,858.38 9,728,450.00 867,016,791.43
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 current
5,660,627.69 78,437,175.55 2,671,302.82 541,024.02 87,310,130.08
period
(1) Accrual 5,840,158.87 78,437,175.55 2,671,302.82 541,024.02 87,489,661.26
(2) Impact of exchange rate
-179,531.18 -179,531.18
changes
3. Decrease in the current
period
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(1) Disposal
4. Ending balance 21,339,657.64 435,321.58 269,000,149.04 22,759,462.08 6,165,886.52 319,700,476.86
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 319,448,151.55 219,608,203.24 4,697,396.30 3,562,563.48 547,316,314.57
2. Beginning book value 222,552,201.22 205,318,211.82 3,665,772.75 4,103,587.50 435,639,773.29
The proportion of intangible assets formed through internal R&D in the balance of intangible assets at the end of
the period accounted for 40.12%.
(2) Situation of land usage right without property certificate of title
Unit: RMB
Items Book value Reasons for failure to complete certificate of title
Topband Huizhou No. 2 In the process of bidding in succession; the property certificate of title
160,665,255.00
Industrial Park will be uniformly processed after all bidding is completed
Other description:
27. Development expenditure
Unit: RMB
Decrease amount in the current
Increase in the current period
period
Beginning Transferred
Items Internal Recognized as Ending balance
balance to current
development Other intangible
profit and
expenditure assets
loss
Intelligent controller
43,894,360.09 85,684,563.60 59,315,150.54 70,263,773.15
project
Lithium battery project 6,675,242.57 15,624,502.69 9,609,964.21 12,689,781.05
Motor and control
10,500,319.42 20,867,627.51 13,374,187.99 17,993,758.94
system project
Other projects 5,288,485.40 5,139,378.83 10,427,864.23
Total 66,358,407.48 127,316,072.63 92,727,166.97 100,947,313.14
Other description:
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None
28. Goodwill
(1) Original book value of goodwill
Unit: RMB
Decrement in
Increase in the current
the current
Beginning period
Name of investees or items forming goodwill period Ending balance
balance
Disposal formed by
consolidation
Shenzhen YAKO Automation Technology Co.,
107,314,446.71 107,314,446.71
Ltd.
Shenzhen Allied Control System Co., Ltd. 53,768,699.68 53,768,699.68
Shenzhen Meanstone Intelligent Technology Co.,
3,006,892.59 3,006,892.59
Ltd.
Hangzhou Zhidong Motor Technology Co., Ltd. 1,322,921.77 1,322,921.77
Taixing Ninghui Lithium Battery Co., Ltd. 1,962,891.12 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: RMB
Decrement in
Increase in the
Beginning the current
Name of investees or items forming goodwill current period Ending balance
balance period
Provision
Shenzhen Allied Control System Co., Ltd. 53,768,699.68 53,768,699.68
Shenzhen Meanstone Intelligent Technology Co., Ltd. 3,006,892.59 3,006,892.59
Total 56,775,592.27 56,775,592.27
Information about the asset group or portfolio of goodwill
None
Explanation 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
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29. Long-term deferred expense
Unit: RMB
Increase in the Amortization in the Other reduced
Items Beginning balance Ending balance
current period current period amount
Decoration cost 94,763,914.58 74,545,676.87 35,494,154.27 1,724,608.74 132,090,828.44
Other 387,701.80 138,734.83 118,230.18 130,736.79
Total 95,151,616.38 74,545,676.87 35,632,889.10 1,842,838.92 132,221,565.23
Other description:
None
30. Deferred tax assets/deferred tax liabilities
(1) Non-offset deferred tax assets
Unit: RMB
Ending balance Beginning balance
Items Deductible temporary Deferred tax Deductible temporary Deferred tax
differences assets differences assets
Provision for asset impairment 281,652,280.08 43,628,391.64 261,692,978.84 40,332,191.17
Deductible loss 188,813,388.08 39,381,980.91 69,221,226.16 13,336,499.73
Amortization differences on intangible
94,689,166.74 14,203,375.01 60,259,563.87 9,038,934.58
assets
Deferred income 13,245,250.14 1,986,787.52 14,150,200.00 2,122,530.00
Equity incentive expenses 62,111,490.83 9,316,723.62 253,046,279.23 37,956,941.88
Total 640,511,575.87 108,517,258.70 658,370,248.10 102,787,097.36
(2) Deferred tax liabilities without offset
Unit: RMB
Ending balance Beginning balance
Items Taxable temporary Deferred tax Taxable temporary Deferred tax
difference liabilities difference liabilities
Valuation and appreciation of
assets of business consolidation 857,693.62 128,654.04 2,589,919.73 388,487.96
under different control
Changes in fair value of tradable
235,561,014.47 39,250,529.22 147,744,707.31 22,161,706.10
financial assets
Book-tax difference of fixed assets
51,414,751.05 10,622,182.15 10,334,504.12 2,570,545.66
depreciation
Book-tax difference of rental
4,571,154.88 1,142,788.72 4,638,866.49 1,159,716.62
income
Total 292,404,614.02 51,144,154.13 165,307,997.65 26,280,456.34
(3) Deferred tax assets or liabilities listed by net amount after offset
Unit: RMB
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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 108,517,258.70 102,787,097.36
Deferred tax liabilities 51,144,154.13 26,280,456.34
(4) Details of unrecognized deferred tax assets
Unit: RMB
Items Ending balance Beginning balance
Deductible temporary differences 13,989,990.57 6,322,216.54
Deductible loss 73,447,423.03 32,682,476.84
Total 87,437,413.60 39,004,693.38
(5) Deductible loss of unrecognized deferred tax assets will mature in the following years
Unit: RMB
Year Ending amount Beginning amount Remarks
2023
2024
2025 2,034,722.96
2026 14,435,579.52 2,183,482.54
2027 27,240,120.80
No time limit 29,736,999.75 30,498,994.30
Total 73,447,423.03 32,682,476.84
Other description:
The deductible losses of unrecognized deferred tax assets with no maturity period are recoverable losses of
overseas subsidiaries, and there are no local policy requirements for deductible periods.
31. Other non-current assets
Unit: RMB
Ending balance Beginning balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Prepayment for
172,371,288.80 172,371,288.80 72,041,428.40 72,041,428.40
long-term assets
Total 172,371,288.80 172,371,288.80 72,041,428.40 72,041,428.40
Other description:
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32. Short-term loans
(1) Classification of short-term borrowings:
Unit: RMB
Items Ending balance Beginning balance
Credit loan 12,325,580.00 150,321,259.95
Letter of credit 265,000,000.00 250,000,000.00
Bills receivable discounted but not due 6,025,915.57 9,209,847.31
Total 283,351,495.57 409,531,107.26
Explanation of classification of short-term loans:
(2) Overdue short-term loans
The total amount of overdue but not repaid short-term loans at the end of the current period is RMB 0.00, of which
the important overdue but not repaid short-term loans are as follows:
None
The Company has no overdue and outstanding short-term loans.
33. Tradable financial liabilities
Other descriptions: None
34. Derivative financial liabilities
None
35. Notes payable
Unit: RMB
Category Ending balance Beginning balance
Bank acceptance bill 1,065,652,340.80 1,231,106,148.24
Total 1,065,652,340.80 1,231,106,148.24
The total amount of notes payable due but unpaid at the end of the current period was RMB.
36. Accounts payable
(1) Accounts payable listed
Unit: RMB
Items Ending balance Beginning balance
Within 1 year (including 1 year) 1,601,875,172.01 1,493,504,084.34
1-2 years (including 2 years) 940,565.81 11,697,003.66
216
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2-3 years (including 3 years) 2,570,462.09 4,533,633.55
Above 3 years 1,060,004.11 1,550,275.01
Total 1,606,446,204.02 1,511,284,996.56
(2) Significant accounts payable aged over 1 year
Other descriptions: None
37. Advances received
(1) Advances received listed
Unit: RMB
Items Ending balance Beginning balance
Within 1 year (including 1 year) 1,130,165.23 353,895.16
Total 1,130,165.23 353,895.16
(2) Important advance receipts with aging over 1 year
None
38. Contractual liabilities
Unit: RMB
Items Ending balance Beginning balance
Advances on sales 138,281,929.17 93,328,006.70
Total 138,281,929.17 93,328,006.70
Amount of and reasons for significant changes in book value during the reporting period
None
39. Employee compensation payable
(1) Presentation of employee pay payable
Unit: RMB
Increase in the current Decrement in the
Items Beginning balance Ending balance
period current period
I. Short-term
198,774,619.59 1,505,670,146.03 1,497,633,790.18 206,810,975.44
compensation
II. Post-employment
benefits - defined 89,176.43 73,955,182.36 73,875,561.08 168,797.71
contribution plan
Total 198,863,796.02 1,579,625,328.39 1,571,509,351.26 206,979,773.15
217
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(2) Reporting of short-term remuneration
Unit: RMB
Increase in the current Decrement in the
Items Beginning balance Ending balance
period current period
1. Wages, bonuses, allowances
196,488,729.39 1,413,593,339.14 1,406,403,090.58 203,678,977.95
and subsidies
2. Employee benefits 647,448.84 35,734,430.35 36,338,653.04 43,226.15
3. Social insurance expense 146,677.04 26,901,696.38 26,518,870.09 529,503.33
Including: medical
141,117.22 24,127,660.38 23,743,673.24 525,104.36
insurance premiums
Industrial injury
3,334.60 934,123.20 933,058.83 4,398.97
insurance expense
Maternity
2,225.22 1,839,912.80 1,842,138.02
insurance expense
4. Housing provident fund 27,790,066.90 27,790,066.90
5. Trade union funds and staff
249.29 306,927.56 257,086.95 50,089.90
education funds
8. Others 1,491,515.03 1,343,685.70 326,022.62 2,509,178.11
Total 198,774,619.59 1,505,670,146.03 1,497,633,790.18 206,810,975.44
(3) List of defined contribution plan
Unit: RMB
Increase in the current Decrement in the
Items Beginning balance Ending balance
period current period
1. Basic endowment
87,064.50 72,671,711.71 72,596,976.84 161,799.37
insurance
2. Unemployment
2,111.93 1,283,470.65 1,278,584.24 6,998.34
insurance expense
Total 89,176.43 73,955,182.36 73,875,561.08 168,797.71
Other description:
None
40. Taxes payable
Unit: RMB
Items Ending balance Beginning balance
VAT (value-added tax) 53,017,545.90 1,412,358.17
Corporate income tax 19,648,268.34 435,351.06
Individual income tax 11,251,522.04 13,324,912.30
City maintenance and construction tax 336,488.64 145,831.34
Education surcharge 240,581.55 103,910.96
Property tax 3,647,511.72 751,908.84
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Land use tax 174,669.06
Stamp duty and others 88,927.40 80,269.78
Total 88,405,514.65 16,254,542.45
Other description:
None
41. Other payables
Unit: RMB
Items Ending balance Beginning balance
Other account payable 335,047,520.52 318,632,275.66
Total 335,047,520.52 318,632,275.66
(1) Interest payable
Other descriptions: None
(2) Dividends payable
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: RMB
Items Ending balance Beginning balance
restricted stock repurchase obligations 231,812,873.60 242,525,433.60
Expenses 25,199,800.55 23,828,359.68
Long-term assets 42,160,937.47 32,124,975.07
Margin, deposit 7,162,370.39 5,830,893.34
Intercourse funds 17,398,987.82 0.00
Other 11,312,550.69 14,322,613.97
Total 335,047,520.52 318,632,275.66
2) Other significant payables aged over 1 year
Unit: RMB
Reasons for not repaying or carrying
Items Ending balance
forward
restricted stock repurchase obligations 231,812,873.60 Repurchase obligation undue
Total 231,812,873.60
Other descriptions: None
219
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42. Liabilities held for sale
Other description:
None
43. Non-current liabilities due within one year
Unit: RMB
Items Ending balance Beginning balance
Long-term borrowings due within one year 37,135,000.00 27,209,500.00
Lease liabilities due within one year 38,221,303.72 20,512,195.74
Total 75,356,303.72 47,721,695.74
Other descriptions: None
44. Other current liabilities
Unit: RMB
Items Ending balance Beginning balance
Tax amount to be resold 3,379,987.09 2,874,899.86
Notes receivable that have been endorsed but
19,096,443.65 104,189,643.96
not derecognized
Total 22,476,430.74 107,064,543.82
Increase/decrease of short-term bond payable: Other descriptions:
None
45. Long-term loans
(1) Classification of long-term loan
Unit: RMB
Items Ending balance Beginning balance
Pledged borrowings 156,520,000.00
Guaranteed loan 84,000,000.00 120,000,000.00
Credit loan 497,500,000.00 198,500,000.00
Total 581,500,000.00 475,020,000.00
Explanation of long-term loan classification: None
Additional notes, including interest rate ranges: None
46. Bonds payable
(1) Bonds payable
None
220
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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)
None
(3) Explanation of share transfer conditions and time of convertible bonds
None
(4) Explanation of other financial instruments classified as financial liabilities
None
47. Lease liabilities
Unit: RMB
Items Ending balance Beginning balance
Rental payment 86,053,288.78 49,741,467.06
Unrecognized financing expenses -12,442,497.69 -9,451,064.92
Total 73,610,791.09 40,290,402.14
Other description:
48. Long-term accounts payable
None
49. Long-term employee compensation payable
None
50. Estimated liabilities
None
51. Deferred income
Unit: RMB
Increase in the Decrement in the
Items Beginning balance Ending balance Reasons of formation
current period current period
Governmental Governmental subsidies
14,385,200.00 5,744,000.00 6,758,949.86 13,370,250.14
subsidies related to assets
Total 14,385,200.00 5,744,000.00 6,758,949.86 13,370,250.14 --
Items involving government subsidies:
Unit: RMB
221
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Amount Amount
accounted Amount of write-
Newly
into non- included in down Asset-
Beginning increased Other Ending
Liability items operating other income costs in related/revenue-
balance subsidy in the changes balance
revenue in in the current the related
current period
the current period current
period period
Special fund for
the
industrialization
of high-
efficiency 1,105,000.00 195,000.00 910,000.00 Asset-related
energy-saving
rare-earth
permanent
magnet motor
R&D equipment
project of
intelligent home
management
131,500.00 131,500.00 0.00 Asset-related
system such as
IoT cloud
computing
technology
R&D project of
key technology
for clean energy 175,000.00 50,000.00 125,000.00 Asset-related
DC system
measurement
Nano lithium
iron phosphate
500,000.00 250,000.00 250,000.00 Asset-related
power battery
project
Key technology
R&D of 18650-
357,000.00 204,000.00 153,000.00 Asset-related
2.8A.h high
power battery
Intelligent grid
connected
project of
60,000.00 60,000.00 0.00 Asset-related
distributed
photovoltaic
power station
R&D project of
60A solar
charging
controller with 410,000.00 120,000.00 290,000.00 Asset-related
peak power
tracking
technology
R&D project of
unmanned robot 2,550,000.00 600,000.00 1,950,000.00 Asset-related
cleaner
Key technology
R&D project of
4,000,000.00 1,969,049.86 2,030,950.14 Asset-related
rare-earth
permanent
222
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magnet brushless
DC motor and
controller with
high speed ratio
and variable
frequency
Monthly
Acceptance
Amortization of
Huizhou Anti-
epidemic
2,912,210.00 832,060.00 2,080,150.00 Asset-related
National Debt
Technical
Transformation
Project (2006)
for 5 Years
Monthly
Acceptance
Amortization of
Technical
Transformation
Project of
Intelligent
Controller in
Huizhou
2,184,490.00 624,140.00 1,560,350.00 Asset-related
Province and
Technical
Transformation
of Lithium
Battery
Automation
Production Line
in 2006 for 5
Years
Monthly
acceptance
amortization of
provincial-level
enterprise
technology
transformation 5,744,000.00 1,723,200.00 4,020,800.00 Asset-related
fund (2106)
special for
promoting high-
quality economic
development for
5 years in 2022
Other description:
None
52. Other non-current liabilities
None
223
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53. Share capital
Unit: RMB
Increase or decrease of change this time (+, -)
Conversion
Beginning balance of Ending balance
Issuance of Stock
accumulation Other Subtotal
new shares dividend
fund into
shares
Total number
1,256,978,072.00 14,049,300.00 -1,492,000.00 12,557,300.00 1,269,535,372.00
of shares
Other description:
Note: The share capital increased by RMB 12,557,300.00 in the current period, including RMB 14,049,300.00
due to the exercise of stock options, and the repurchase and cancellation decreased by RMB 1,492,000.00 due to
the dimission of incentive objects.
54. Other equity instruments
None
55. Capital reserve
Unit: RMB
Increase in the Decrement in the
Items Beginning balance Ending balance
current period current period
Capital premium (share premium) 2,076,431,608.14 54,522,812.37 9,220,560.00 2,121,733,860.51
Other capital reserves 63,621,541.60 140,174,019.60 59,387,223.27 144,408,337.93
Total 2,140,053,149.74 194,696,831.97 68,607,783.27 2,266,142,198.44
Additional descriptions, including the changes in increase or decrease in the current period and the reasons for
changes:
Note 1: The share premium increased by RMB 54,522,812.37 this year, of which due to the unlocking of
options, the Company transferred RMB 18,697,097.37 of equity incentive expenses previously included in other
capital reserves into the share premium, and the share capital premium increased by RMB 35,825,715.00 through
exercise capital contributions. The decrease of RMB 9,220,560.00 in share premium this year is due to the
incentive objects to leave the Company to repurchase and cancel stocks to release the share premium.
Note 2: Other capital reserves increased by RMB 140,174,019.60 in the current year, including RMB
135,155,878.90 of share-based payment expenses confirmed by issuing restricted stock in the current period and
RMB 5,018,140.70 of share-based payment confirmed by Huizhou YAKO Automation Technology Co., Ltd.
(subsidiary).Other capital reserves decreased by RMB 59,387,223.27 this year, including a decrease of RMB
31,262,827.12 due to the release of deferred tax assets based on the expected pre-tax deduction of stock equity
incentive expenses for future exercise, a decrease of other capital reserves of RMB 18,697,097.37 due to the
transfer of capital premium from the exercise of stock options, a decrease of other capital reserves of RMB
224
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5,817,273.57 due to releasing share-based payment expenses from the resignation of incentive objects, and a
decrease of consolidation-level capital reserve of RMB 3,610,025.21 due to acquisition of Taixing Ninghui Lithium
Battery Co., Ltd.
56. Treasury shares
Unit: RMB
Beginning Increase in the Decrement in the
Items Ending balance
balance current period current period
restricted stock repurchase obligations 242,525,433.60 10,712,560.00 231,812,873.60
Repurchase of company shares in
52,444,981.31 52,444,981.31
competitive trading
Total 242,525,433.60 52,444,981.31 10,712,560.00 284,257,854.91
Additional descriptions, including the changes in increase or decrease in the current period and the reasons for
changes:
Note: The increase in treasury shares in the current period is RMB 52,444,981.31 of company shares repurchased by the
Company, and the decrease in the current period is RMB 10,712,560.00 of restricted stock repurchased and canceled due to the
resignation of incentive objects.
57. Other comprehensive income
Unit: RMB
Amount incurred in the current period
Minus: profits
Minus: current
and losses
retained
included in
Amount of earnings
Beginning other Minus: Attributable Attributable Ending
Items pre-income included in
balance comprehensive income to parent to minority balance
tax incurred other
income tax company after shareholders
in the current comprehensive
previously and expense tax after tax
period income in the
transferred in
previous
the current
period
period
II. Other
comprehensive
-
income that is -91,831,496.88 83,351,874.53 83,351,874.53
8,479,622.35
reclassified into
profits and losses
Translation
difference of -
-92,201,606.29 83,721,983.94 83,721,983.94
foreign currency 8,479,622.35
financial statements
Other 370,109.41 -370,109.41 -370,109.41 0.00
Total amount of
other -
-91,831,496.88 83,351,874.53 83,351,874.53
comprehensive 8,479,622.35
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:
225
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None
58. Special reserve
None
59. Surplus reserve
Unit: RMB
Beginning Increase in the current Decrement in the
Items Ending balance
balance period current period
Statutory surplus reserve 186,397,631.76 28,366,562.38 214,764,194.14
Total 186,397,631.76 28,366,562.38 214,764,194.14
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: RMB
Items Current period Previous period
Retained earnings at the end of the previous period before adjustment 1,779,243,483.61 1,324,944,369.91
Total retained earnings at the beginning of the period (+ for increase, -
-19,061,969.80
for decrease)
Retained earnings at the beginning of last period after adjustment 1,779,243,483.61 1,305,882,400.11
Plus: net profit attributable to owners of parent company in current year 582,655,258.38 564,964,282.18
Minus: withdrawal of statutory surplus reserve 28,366,562.38 35,037,674.23
Common stock dividends payable 62,713,008.60 56,565,524.45
Retained earnings at the end of the period 2,270,819,171.01 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 RMB 0.00.
2). Due to the change of accounting policy, the retained earnings at the beginning of the period was RMB 0.00.
3). Due to the correction of major accounting errors, the undistributed profit at the beginning of the period was
RMB 0.00.
4). Due to the change in consolidation under the same control, the retained earnings at the beginning of the period
was RMB 0.00.
5). The retained earnings at the beginning of the period were RMB 0.00 with other adjustments.
61. Operating income and operating costs
Unit: RMB
226
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Amount incurred in the current period Amount incurred in prior period
Items
Income Cost Income Cost
Main business 8,836,386,705.11 7,078,885,305.98 7,717,976,814.04 6,107,767,617.78
Other business 38,712,431.95 8,341,680.90 49,058,020.99 6,763,737.09
Total 8,875,099,137.06 7,087,226,986.88 7,767,034,835.03 6,114,531,354.87
Whether the lower of net profit before and after deduction of non-recurring profits and losses upon the audit was
negative
□ Yes No
Income-related information:
Unit: RMB
Contract classification Intelligent Controller Division Total
Types of commodities
Including:
Tool 3,240,010,210.60 3,240,010,210.60
Home appliances 3,091,915,524.39 3,091,915,524.39
New energy 2,035,748,139.21 2,035,748,139.21
Industry 248,342,753.93 248,342,753.93
Intelligent solutions 188,747,795.73 188,747,795.73
Total 8,875,099,137.06 8,875,099,137.06
Classified by business area
Including:
Domestic 3,524,383,375.76 3,524,383,375.76
Foreign 5,350,715,761.30 5,350,715,761.30
Total 8,875,099,137.06 8,875,099,137.06
Information related to performance obligations:
Not applicable
Information related to the transaction price allocated to the remaining performance obligations:
Other description:
None
62. Taxes and surcharges
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
City maintenance and construction tax 22,104,766.90 9,880,306.75
Education surcharge 15,789,417.57 7,057,104.39
Property tax 10,105,204.62 7,220,449.07
Land use tax 1,640,955.29 768,937.95
Stamp duty 9,544,596.67 4,088,571.43
Other 209,827.30 38,498.12
Total 59,394,768.35 29,053,867.71
227
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Other description:
None
63. Sales expenses
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Employee compensation 154,170,333.91 117,940,781.05
Low priced and easily worn articles 4,674,650.75 4,721,582.36
Business entertainment expenses 15,604,369.50 16,931,032.05
Travel expenses 8,814,511.30 11,055,029.71
Intermediary service expenses 19,354,887.13 19,280,507.23
Exhibition expenses 2,771,660.29 2,256,350.43
Materials expenses 11,175,625.80 12,365,975.47
Mail expenses 1,954,588.01 3,187,394.23
Option fee 22,864,675.20 4,731,183.73
Advertising expenses 4,788,150.81 4,568,296.26
Customs charges 2,883,673.61 2,542,454.90
Rentals 1,775,051.00 1,980,077.01
Other 9,348,993.57 7,002,154.67
Total 260,181,170.88 208,562,819.10
Other descriptions: None
64. Administrative expenses
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Employee compensation 202,600,465.16 155,978,506.36
Decoration cost 20,922,117.86 17,168,830.94
Intermediary service expenses 14,920,006.17 12,359,796.94
Depreciation and amortization 42,055,068.30 19,379,537.14
Rent and utilities 6,564,412.32 6,233,831.28
Low priced and easily worn articles 9,426,710.31 2,819,301.47
Property insurance expenses 5,465,439.61 4,833,375.18
Office expenses 9,427,291.32 8,227,084.07
Option fee 30,803,647.94 10,472,082.30
Travel expenses 7,853,325.04 4,686,846.18
Recruitment expenses 1,479,131.93 2,814,710.51
Royalties 3,928,633.31 3,844,108.79
Business entertainment expenses 3,154,186.69 1,936,130.95
Maintenance fees 1,880,084.37 2,493,243.02
Other 9,022,225.03 5,097,646.76
Total 369,502,745.36 258,345,031.89
Other description:
None
65. R&D expenses
Unit: RMB
228
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Items Amount incurred in the current period Amount incurred in prior period
Employee compensation 335,394,101.32 270,040,042.63
Depreciation and amortization 92,403,641.99 67,822,294.92
Material expenses 30,803,656.42 32,453,761.31
Option fee 56,384,583.55 13,876,403.61
Tooling expenses 20,693,229.51 19,674,097.73
Intermediary service expenses 10,656,282.28 8,558,169.27
Low priced and easily worn articles 5,457,987.48 5,380,174.29
Testing expense 7,199,211.70 6,429,992.15
Decoration cost 5,203,379.48 3,724,447.95
Utilities 7,629,464.57 4,942,111.11
Travel expenses 3,544,510.11 4,141,146.62
Rentals 2,684,107.73 1,266,488.74
Other 14,291,979.95 11,640,921.78
Total 592,346,136.09 449,950,052.11
Other description:
None
66. Financial expenses
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Interest expense 35,262,744.35 24,677,917.47
Minus: interest income 22,969,451.22 8,722,530.08
Profit or loss on exchange -138,431,161.16 44,680,917.00
Other 2,964,605.13 3,149,246.09
Total -123,173,262.90 63,785,550.48
Other description:
None
67. Other revenues
Unit: RMB
Source for other revenues Amount incurred in the current period Amount incurred in prior period
Governmental subsidies 33,217,045.91 16,456,682.22
Added-value tax refund on demand 5,231,680.35 8,646,329.13
Return of individual income tax service charge 734,101.69 1,105,035.34
Total 39,182,827.95 26,208,046.69
68. Investment income
Unit: RMB
Amount incurred in the current Amount incurred in prior
Items
period period
Long-term equity investment income accounted by the cost
-2,568,468.91 -2,883,400.31
method
Investment revenue from disposal of tradable financial assets 38,226,720.08
Investment income of financial products 139,141.31 9,914,763.48
Forward foreign exchange contract settlement profit and loss 2,994,236.07 9,569,000.00
Total 564,908.47 54,827,083.25
229
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Other description:
None
69. Net exposure hedging revenue
None
70. Fair value change revenue
Unit: RMB
Sources of income from change in fair value Amount incurred in the current period Amount incurred in prior period
Tradable financial assets 87,818,625.99 85,670,316.15
Total 87,818,625.99 85,670,316.15
Other description:
71. Credit impairment loss
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Bad debt loss of other receivables -2,344,758.98 -3,478,279.55
Bad debt loss of receivables -46,998,677.15 -81,957,775.77
Bad debt loss of notes receivable -28,563.01 -157,573.76
Total -49,371,999.14 -85,593,629.08
Other description:
72. Asset impairment loss
Unit: RMB
Amount incurred in the current Amount incurred in prior
Items
period period
II. Loss on inventory valuation and contract performance cost
-69,957,962.94 -99,995,344.56
impairment loss
Total -69,957,962.94 -99,995,344.56
Other description:
73. Assets disposal revenue
Unit: RMB
Source of assets disposal revenue Amount incurred in the current period Amount incurred in prior period
Revenue from disposal of non-current
-1,612,652.02 -415,086.11
assets
Right-of-use asset derecognition 10,696.36
Total -1,612,652.02 -404,389.75
230
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74. Non-operating income
Unit: RMB
Amount incurred in Amount incurred in Amount included in the current
Items
the current period prior period non-recurring profit and loss
Accepting donations 22,475.87
Gain on non-current assets damage and retirement 906,885.79 906,885.79
Other 5,436,495.16 2,237,879.87 5,436,495.16
Total 6,343,380.95 2,260,355.74 6,343,380.95
Government subsidy included in the current profits and losses: None
75. Non-operating expenses
Unit: RMB
Amount incurred in Amount incurred in Amount included in the current
Items
the current period prior period non-recurring profit and loss
External donations 300,000.00
Loss on damage and scrapping of non-current assets 2,439,687.26 384,846.54 2,439,687.26
Customer quality deduction expenses 5,072,526.83 4,211,737.26 5,072,526.83
Other 1,797,787.24 641,709.14 1,797,787.24
Total 9,310,001.33 5,538,292.94 9,310,001.33
Other description:
76. Income tax expenses
(1) Table of income tax expenses
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Current income tax expenses 63,736,073.65 47,133,452.67
Deferred tax expense -12,227,860.17 994,237.09
Total 51,508,213.48 48,127,689.76
(2) Adjustment process of accounting profits and income tax expenses
Unit: RMB
Items Amount incurred in the current period
Total profits 633,277,720.33
Income tax expenses calculated at statutory/applicable tax rates 94,991,658.05
Influence of different tax rates applicable to subsidiary 10,382,981.40
Effect of income tax adjustment in previous period -3,896,247.97
Impact of non-taxable income 633,245.86
Impact of non-deductible cost, expense and loss 2,468,905.23
Impact of deductible loss of unrecognized deferred tax assets in previous period -15,534.79
Impact of deductible temporary differences or deductible losses of unrecognized
2,739,199.82
deferred tax assets in the current period
231
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The impact of changes in tax rates on the initial balance of deferred tax -77,037.06
Additional deduction of technical development cost -36,930,824.02
Vietnamese subsidiaries enjoy halved taxation and tax exemption effects -21,270,522.10
Impact of other adjustments 2,482,389.06
Income tax expenses 51,508,213.48
Other descriptions: None
77. Other comprehensive income
See Note 57 for details.
78. Items of cash flow statement
(1) Other cash received related to operating activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Intercourse funds 66,422,718.48 57,806,582.88
Interest income 22,969,451.22 8,722,530.08
Governmental subsidies 32,202,096.05 16,217,112.22
Deposit and earnest money received 3,458,869.84 3,213,112.84
Other 3,848,757.03 3,784,144.14
Total 128,901,892.62 89,743,482.16
Explanation of other cash received related to operating activities:
None
(2) Other cash paid related to operating activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Service charge 2,964,605.13 3,149,246.09
Out-of-pocket expenses 243,947,454.24 273,704,414.80
Margin and deposit expenses 8,772,578.49 15,969,153.96
Other 7,204,934.27 8,980,140.75
Total 262,889,572.13 301,802,955.60
Explanation of other cash paid related to operating activities:
None
(3) Other cash received related to investment activities
None
(4) Other cash paid related to investment activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Convertible loan 9,000,000.00
Total 9,000,000.00
232
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Explanation of other cash paid related to investment activities:
None
(5) Other cash received related to financing activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Margins for bills and notes 16,164,446.24 18,039,024.44
Bills receivable discounted but not due 4,734,492.75 9,209,847.31
Total 20,898,938.99 27,248,871.75
Explanation of other cash received related to financing activities: None
(6) Other cash paid related to financing activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Margins for bills and notes 25,597,956.24
Stock issue cost 1,266,137.03
Share repurchase amount 63,157,541.31
Lease payments paid 33,787,128.23 13,333,649.93
Total 96,944,669.54 40,197,743.20
Explanation of other cash paid related to financing activities: None
79. Supplementary information of cash flow statement
(1) Supplementary materials of cash flow statement
Unit: RMB
Amount in the Amount in the
Supplementary information
current period previous period
1.Adjusting net profit to cash flow from operating activities:
Net profit 581,769,506.85 572,112,614.61
Plus: impairment of assets 119,329,962.08 184,862,507.33
Depreciation of fixed assets, depletion of oil and gas assets, depreciation of
144,630,956.80 106,211,599.68
productive biological assets
Depreciation of right-of-use assets 31,615,539.58 16,234,413.73
Amortization of intangible assets 86,884,445.54 65,392,596.89
Amortization of long-term deferred expenses 35,618,497.97 27,180,925.99
Loss from disposal of fixed assets, intangible assets and other long-term assets
415,188.40
(income marked with "-") 1,612,652.02
Losses on scrapping of fixed assets (income marked with "-") 374,047.89
1,532,801.47
Loss from fair value change (income marked with "-") -87,818,625.99 -85,670,316.15
Financial expenses (income marked with "-") -3,114,719.50 52,717,851.97
Investment loss (income marked with "-") -564,908.47 -54,827,083.25
233
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Decrease in deferred tax assets (increase marked with "-") -37,224,039.39 -12,739,891.64
Increase in deferred tax liabilities (decrease marked with "-") 24,996,179.22 14,523,480.93
Decrease in inventory (increase marked with "-") 130,052,908.43 -1,161,081,258.04
Decrease in operating receivables (increase marked with "-") -623,114,911.84 -593,959,509.24
Increase in operating payables (decrease marked with "-") -51,504,228.20 608,846,276.29
Other 136,353,059.76 34,844,008.75
Net cash flow from operating activities 491,055,076.33 -224,562,545.86
2Major investment and financing activities not involving cash receipts and payments:
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets acquired under finance leases
3.Net change in cash and cash equivalents:
Ending balance of cash 1,374,281,693.23 1,736,104,958.20
Minus: beginning balance of cash 1,736,104,958.20 1,196,835,834.92
Plus: ending balance of cash equivalents
Minus: beginning balance of cash equivalents
Net increase in cash and cash equivalents -361,823,264.97 539,269,123.28
(2) Net cash paid for obtaining subsidiaries in current period
None
(3) Net cash received for disposal of subsidiaries in current period
None
(4) Composition of cash and cash equivalents
Unit: RMB
Items Ending balance Beginning balance
I. Cash 1,374,281,693.23 1,736,104,958.20
Including: cash in stock 606,436.16 1,015,081.13
Bank deposit available for payment at any time 1,210,002,652.40 1,337,414,181.07
Other monetary capital for payment at any time 163,672,604.67 397,675,696.00
III. Balance of cash and cash equivalents at the end of the period 1,374,281,693.23 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:
81. Assets with limited ownership or use right
Unit: RMB
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Book value at the end of
Items Restricted reasons
the period
Apply to the bank for the issuance of bills and guarantee
Monetary capital 18,937,494.54
deposits; amount of freezing of property
Total 18,937,494.54
Other descriptions: None
82. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Foreign currency balance Exchange rate for Balance converted into RMB
Items
at the end of the period conversion at the end of the period
Monetary capital 860,674,253.68
Including: US dollars 104,800,835.10 6.964600 729,895,896.14
Euros 2,208,019.48 7.422900 16,389,907.80
Hong Kong dollars 3,298,122.34 0.893270 2,946,113.74
Vietnamese Dong 27,035,459,402.00 0.000295 7,975,460.52
Indian Rupee 1,180,874,319.03 0.084127 99,343,413.84
Romanian Leu 1,514,035.65 1.499408 2,270,157.17
Mexican Peso 1,989,735.36 0.357679 711,686.55
Japanese Yen 21,804,078.00 0.052358 1,141,617.92
Accounts receivable 1,439,309,967.11
Including: US dollars 187,823,448.85 6.964600 1,308,115,191.86
Euros 1,022,795.74 7.422900 7,592,110.50
Hong Kong dollars 1,095,534.72 0.893270 978,608.30
Japanese Yen 5,093,384.00 0.052358 266,679.40
Indian Rupee 1,023,097,257.79 0.084127 86,070,103.01
Vietnamese Dong 123,007,708,619.00 0.000295 36,287,274.04
Receivables financing 72,022,255.79
Including: US dollars 25,692,723.21 6.964600 178,939,540.07
Other receivables 8,888,447.78
Including: Romanian Leu 928,539.45 1.499408 1,392,259.48
US dollars 611,412.27 6.964600 4,258,241.90
Mexican Peso 245,982.91 0.357679 87,982.92
Euros 15,785.83 7.422900 117,176.64
Japanese Yen 3,305,248.00 0.052358 173,056.17
Indian Rupee 15,193,144.00 0.084127 1,278,153.63
Vietnamese Dong 5,361,278,095.00 0.000295 1,581,577.04
Accounts payable 72,022,255.79
Including: HKD 196,143.32 0.893270 175,208.94
Romanian Leu 2,598,485.17 1.499408 3,896,189.45
US dollars 7,448,625.86 6.964600 51,876,699.66
Euros 125,142.98 7.422900 928,923.83
Japanese Yen 107,482,219.00 0.052358 5,627,554.02
Indian Rupee 66,559,185.85 0.084127 5,599,424.63
Vietnamese Dong 13,282,221,205.00 0.000295 3,918,255.26
Other account payable 38,739,474.78
Including: Romanian Leu 1,043,621.74 1.499408 1,564,814.79
US dollars 2,817,768.59 6.964600 19,624,631.12
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Mexican Peso 1,774,894.02 0.357679 634,842.32
Indian Rupee 89,213,646.99 0.084127 7,505,276.48
Vietnamese Dong 31,898,000,242.00 0.000295 9,409,910.07
Other descriptions: None
(2) Explanation of overseas business entities, including for important overseas business entities, disclosure of
main overseas business locations, recording currency and selection basis as well as disclosure of reasons for
changes in recording currency.
Applicable □ Not applicable
1. Topband India Private Limited, a subsidiary of the Company, is mainly located in Pune City, Maharashtra, India,
with Indian Rupee as the recording currency;
2. Topband (Vietnam) Co., Ltd., a sub-subsidiary of the Company, is mainly located in Binh Duong, Vietnam, with
Vietnamese Dong as the recording currency;
3. TOPBAND SMART DONG NAI (VIETNAM) Co., Ltd., a sub-subsidiary of the Company, is mainly located in
Dong Nai, Vietnam, with Vietnamese Dong as the recording currency;
4. Topband Germany GmbH, a sub-subsidiary of the Company, is mainly located in Unterfhring, Germany, with
Euro as the recording currency;
5. TOPBAND JAPAN Co., Ltd., a sub-subsidiary of the Company, is mainly located in Nagoya, Japan, with
Japanese Yen as the recording currency;
6. Q.B.PTE.LTD, the sub-subsidiary of Topband, is located in Singapore, with Singapore dollar as the bookkeeping
base currency;
7. TOPBAND SMART EUROPE COMPANY LIMITED S.R.L., the sub-subsidiary of Topband, is located in
Timisoara, Romania, with Lei as the bookkeeping base currency the bookkeeping base currency;
8. TOPBAND MEXICO, S.DER.L.DEC.V, the sub-subsidiary 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:
84. Government subsidies
(1) Basic situation of government subsidies
Unit: RMB
Amount
included in the
Category Amount Items presented
current profits
and losses
Technological transformation supported by 2020 anti-epidemic national
832,060.00 Deferred income 832,060.00
debt funds
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R&D equipment project of intelligent home management system such as
131,500.00 Deferred income 131,500.00
IoT cloud computing technology
Nano lithium iron phosphate power battery project 250,000.00 Deferred income 250,000.00
High rate 18650-2.8Ah power battery key technology research and
204,000.00 Deferred income 204,000.00
development project
Special fund for the industrialization of high-efficiency energy-saving rare-
195,000.00 Deferred income 195,000.00
earth permanent magnet motor
R&D project of 60A solar charging controller with peak power tracking
120,000.00 Deferred income 120,000.00
technology
Intelligent grid connected project of distributed photovoltaic power station 60,000.00 Deferred income 60,000.00
R&D project of key technology for clean energy DC system measurement 50,000.00 Deferred income 50,000.00
R&D project of unmanned robot cleaner 600,000.00 Deferred income 600,000.00
Special fund for intelligent controller and lithium battery technology
624,140.00 Deferred income 624,140.00
transformation
Key technology R&D project of rare-earth permanent magnet brushless DC
1,969,049.86 Deferred income 1,969,049.86
motor and controller with high speed ratio and variable frequency
Provincial-level enterprise technology transformation fund for promoting
1,723,200.00 Deferred income 1,723,200.00
high-quality economic development in 2022
Single champion award program and funding plan in manufacturing
2,000,000.00 Other income 2,000,000.00
industry in 2022
Technical breakthrough projects in 2022 ("2022014 important 3D objects
500,000.00 Other income 500,000.00
based on SLAM")
Internet Development Support Plan 2,990,000.00 Other income 2,990,000.00
Funding plan of 2022 Shenzhen enterprise technology center construction
2,770,000.00 Other income 2,770,000.00
project
2022 central funding (foreign investment cooperation subsidy) 120,000.00 Other income 120,000.00
Support and subsidy for corporate expansion and efficiency enhancement 268,512.72 Other income 268,512.72
Corporate R & D subsidy 834,600.00 Other income 834,600.00
Export credit insurance subsidy 2,228,261.00 Other income 2,228,261.00
Industrial and commercial electricity subsidy 231,468.12 Other income 231,468.12
Position stabilization subsidy and position creation subsidy 1,907,023.79 Other income 1,907,023.79
Technological transformation and promotion project subsidy 610,710.00 Other income 610,710.00
Special funds for foreign trade development of enterprises 146,103.00 Other income 146,103.00
Special fund for industrial and information technology development in
645,800.00 Other income 645,800.00
Huizhou City
Patent subsidy 9,000.00 Other income 9,000.00
Financial support fund of Xinqiao Town of Songjiang District of Shanghai 60,000.00 Other income 60,000.00
Subsidy on retention training 3,792,585.00 Other income 3,792,585.00
Cultivation subsidy for high-tech enterprises 2,070,000.00 Other income 2,070,000.00
Award of industrial enterprises expanding production capacity 1,990,000.00 Other income 1,990,000.00
Subsidy of corporate relief development 946,800.80 Other income 946,800.80
Subsidy of corporate epidemic prevention and the sterilization 208,300.00 Other income 208,300.00
Subsidy of scientific and technological enterprise training project 900,000.00 Other income 900,000.00
Award of specialized and sophisticated enterprises that produce new and
200,000.00 Other income 200,000.00
unique products in 2022
Supporting funds for the innovation and development of municipal private
200,000.00 Other income 200,000.00
enterprise and small and medium-sized enterprises in 2022
Special plan development and technology enterprise cultivation project in 300,000.00 Other income 300,000.00
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high-tech zone in 2022
Other projects 528,931.62 Other income 528,931.62
(2) Situation of government subsidies refund
Applicable □ Not applicable
Unit: RMB
Items Amount Reason
The overpayment by the special subsidy funds for the central foreign trade and economic
8,465.00 Return of overpayment
development was refunded (treasury deposit of Shenzhen Finance Bureau) in 2020
Other descriptions: None
85. Others
None
VIII. Changes in the scope of consolidation
1. Consolidation under different control
(1) Consolidation under different control occurred in the current period
Unit: RMB
Revenue of
Net profit
the acquiree
of acquiree
Basis for from the
Date of Cost of Ratio of Equity from the
Name of Date of determination date of
equity equity equity acquired acquisition
acquiree purchasing of acquisition purchasing
acquired acquisition acquired via date to the
date to the end
end of the
of the
period
period
Other descriptions: None
(2) Combined cost and business reputation
None
(3) Identifiable assets and liabilities of the acquiree on the acquisition date
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 consolidation step by step through multiple transactions and obtained control
during the reporting period
□ Yes No
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(5) Relevant explanations for the inability to reasonably determine the consolidation 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
None
(6) Other descriptions
None
2. Consolidation under the same control
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 consolidation
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 consolidation due to other reasons
Explanations for the changes in the scope of the consolidation caused by other reasons (e.g., establishment of new
subsidiaries, or liquidation of subsidiaries, etc.) and relevant circumstances:
During the reporting period, the Company established a total of 4 new subsidiaries (grandson companies), as
follows:
Shareholding ratio
Date of
No. Name of subsidiary Registered place
registration
Direct Indirect
1 Shenzhen Topband Motor Co., Ltd. Shenzhen, Guangdong 2022-3-29 100%
2 Shenzhen Yueshang Robot Co., Ltd. Shenzhen, Guangdong 2022-3-28 100%
Shenzhen Xiaoyou Aitu Innovation
3 Shenzhen, Guangdong 2022-3-7 100%
Technology Co., Ltd.
4 Huizhou Chiding Technology Co., Ltd. Huizhou, Guangdong 2022-9-19 100%
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6. Others
None
IX. Interests in Other Entities
1. Equities in subsidiaries
(1) Composition of enterprise group
Principal Shareholding ratio
Registered Nature of
Name of subsidiary place of Acquisition method
place business Direct Indirect
business
Shenzhen Topband Software Technology Production
Shenzhen Shenzhen 100.00% Establishment
Co., 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
Topband (Hong Kong) Co., Ltd. Hong Kong Investment 100.00% Establishment
Kong
Huizhou Topband Electrical Technology Co., Production
Huizhou Huizhou 100.00% Establishment
Ltd. and sales
Production
TOPBANDINDIAPRIVATELIMITED India India 100.00% Establishment
and sales
Shenzhen YAKO Automation Technology Production Consolidation under
Shenzhen Shenzhen 71.54%
Co., Ltd. and sales different control
Production Consolidation under
Shenzhen Allied Control System Co., Ltd. Shenzhen Shenzhen 100.00%
and sales different control
Production
Huizhou Topband Lithium Battery Co., Ltd. Huizhou Huizhou 100.00% Establishment
and sales
Production
Ningbo Topband Intelligent Control Co., Ltd. Ningbo Ningbo 100.00% Establishment
and sales
Shenzhen Meanstone Intelligent Technology Production Consolidation under
Shenzhen Shenzhen 77.25%
Co., Ltd. and sales different control
Production Consolidation under
Shenzhen Yansheng Software Co., Ltd. Shenzhen Shenzhen 71.54%
and sales different control
Hangzhou Zhidong Motor Technology Co., Production Consolidation under
Hangzhou Hangzhou 53.66%
Ltd. and sales different control
Production
Topband（Vietnam)Co.,ltd Vietnam Vietnam 100.00% Establishment
and sales
TOPBANDSMARTDONGNAI(VIETNAM) Production
Vietnam Vietnam 100.00% Establishment
COMPANYLIMITED and sales
TopbandGermanyGmbH Germany Germany Sales 100.00% Establishment
TOPBANDJAPANCo.,Ltd Japan Japan Sales 100.00% Establishment
Shenzhen Topband Supply Chain Services
Shenzhen Shenzhen Sales 100.00% Establishment
Co., Ltd.
Shenzhen Topband Investment Co., Ltd. Shenzhen Shenzhen Sales 100.00% Establishment
Shenzhen Spark IOT Technology Co., Ltd. Shenzhen Shenzhen Sales 100.00% Establishment
Shenzhen Tunnu Innovation Co., Ltd. Shenzhen Shenzhen Sales 100.00% Establishment
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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
Production Consolidation under
Taixing Ninghui Lithium Battery Co., Ltd. Taixing Taixing 90.48%
and sales different control
Shenzhen Topband Automotive Electronics
Shenzhen Shenzhen Sales 100.00% Establishment
Co., Ltd.
Q.B.PTE.LTD Singapore Singapore Sales 100.00% Establishment
Production
TOPBANDMEXICO,S.DER.L.DEC.V. Mexico Mexico 100.00% Establishment
and sales
Hong
Tunnu Innovation (Hong Kong) Limited Hong Kong Sales 100.00% Establishment
Kong
TOPBANDSMARTEUROPECOMPANYLI
Romania Romania Sales 100.00% Establishment
MITEDS.R.L.
Huizhou YAKO Automation Technology Production
Shenzhen Shenzhen 71.54% Establishment
Co., Ltd. and sales
Shenzhen Zhongli Consulting Co., Ltd. Shenzhen Qingdao Sales 100.00% Establishment
The United The United
TUNNUINNOVATION,INC Sales 100.00% Establishment
States States
Nantong Topband Youneng Technology Co., Production
Nantong Nantong 100.00% Establishment
Ltd. and sales
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
Shenzhen Xiaoyou Aitu Innovation
Shenzhen Shenzhen Sales 100.00% Establishment
Technology Co., Ltd.
Production
Huizhou Chiding Technology Co., Ltd. Huizhou Huizhou 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:
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:
(2) Important non-wholly-owned subsidiaries
Unit: RMB
Profits and losses Dividends declared
Shareholding attributable to and distributed to Ending balance of
Name of subsidiary ratio of minority minority minority shareholders minority shareholders'
shareholders shareholders during during the current equity
the current period period
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Shenzhen YAKO Automation Technology
28.46% 317,022.94 0.00 83,645,322.00
Co., Ltd.
Explanation of the shareholding ratio of minority shareholder in subsidiary shareholder being different from the
voting rights ratio:
None
Other description:
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(3) Major financial information of important non-wholly-owned subsidiaries
Unit: RMB
Ending balance Beginning balance
Name of
subsidiary Current Non-current Current Non-current Total Current Non-current Current Non-current Total
Total assets Total assets
assets assets liabilities liabilities liabilities assets assets liabilities liabilities liabilities
Shenzhen
YAKO
Automation 242,689,924.08 136,833,968.50 379,523,892.58 79,730,092.08 5,379,639.90 85,109,731.98 308,879,580.82 61,169,539.31 370,049,120.13 74,267,013.30 9,059,144.56 83,326,157.86
Technology
Co., Ltd.
Unit: RMB
Amount incurred in the current period Amount incurred in prior period
Name of subsidiary Operating Total comprehensive Cash flow from operating Operating Total comprehensive Cash flow from operating
Net profit Net profit
income income activities income income activities
Shenzhen YAKO Automation
248,511,066.02 676,743.90 676,743.90 22,473,846.35 296,759,371.59 29,933,264.92 29,933,264.92 -14,283,982.69
Technology Co., Ltd.
Other descriptions: None
(4) Significant restrictions on the use of enterprise group assets and the liquidation of enterprise group debts
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None
(5) Financial support or other support provided to structured entities included in the scope of the
consolidated financial statements
None
Other description:
None
2. Transactions causing the owner's equity share change but still controlling the subsidiary
(1) Explanation of changes in owner's equity share in the subsidiary
Not applicable
(2) The impact of the transaction on the minority shareholders' equity and the owners' equity attributable to
the parent company:
Not applicable
3. Interests in joint venture arrangements or associated enterprises
(1) Important joint ventures or associated enterprises
Not applicable
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
None
(3) Major financial information of important associated enterprises
None
(4) Summarized financial information of unimportant joint ventures and associated enterprises
Unit: RMB
Ending balance/amount incurred in current Beginning balance/Amount incurred in the
period previous period
Joint venture:
Sum of the following items calculated
according to the shareholding ratio
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Associated enterprises:
Total book value of investment 23,550,658.91 26,119,127.82
Sum of the following items calculated
according to the shareholding ratio
-- Net profit -2,568,468.91 -2,883,400.31
-- Total comprehensive income -2,568,468.91 -2,883,400.31
Other descriptions: None
(5) Statement that there is a material limitation on the ability of the joint venture or associated enterprise to
transfer funds to the Company
None
(6) Excess losses incurred by the joint ventures or associated enterprises
None
(7) Unconfirmed commitments related to the investment of joint ventures
None
(8) Contingent liabilities related to the investment of joint ventures or associated enterprises
None
4. Important joint operation
None
5. Rights and interests in structured entities not included in the scope of the consolidated financial
statements
Relevant explanations of structured entities not included in the scope of the consolidated financial statements:
Not applicable
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 Note VI. The risks associated with these financial instruments and the risk management
policies adopted by the Company to mitigate these risks are described below. In order to ensure all the above risks
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to be controlled within a limited scope, the management of the Company has controlled and supervised the risk
exposure.
Sensitivity analysis technique is used for analyzing reasonableness of risk variable and possible impacts from
its variation on current profits and losses or shareholder's equity. Since any risk variable rarely changes in isolation,
and the correlation between the variables will have a significant effect on the final amount affected by a change in a
risk variable, the following contents are based on the assumption that changes in each variable are made in isolation.
The main risks arising from the Company's financial instruments include the credit risk, liquidity risk and market
risk.
(I) Risk management objective and policy
The Company's risk management objective is to strike an appropriate balance between risks and returns,
reduce the negative impact of risks on the Company's business performance to the lowest level, and maximize the
interests of shareholders and other equity investors. Based on this risk management objective, the basic risk
management strategy of the Company is to determine and analyze various risks faced by it, establish an appropriate
risk bearing bottom line and carry out risk management, and conduct timely and reliable supervision of various
risks to control risks within the limited scope.
1. Market risk
(1) Foreign exchange risk
Foreign exchange risk refers to the risk of loss due to exchange rate fluctuations. The Company's exposure to
foreign exchange risks is mainly related to US dollars and Hong Kong dollars. Except for the Company and its
subsidiary, Topband (HK) Co., Limited, which purchases and sells some materials and products in US dollars,
Euros and Hong Kong dollars, TOPBAND INDIA PRIVATE LIMITED, the subsidiary, uses Indian Rupee,
Topband (Vietnam) Co., Ltd. and TOPBAND SMART DONG NAI (VIETNAM)Co., Ltd., the sub-subsidiaries,
use Vietnamese Dong, and Topband Germany GmbH, the sub-subsidiary, uses Euros; TOPBAND JAPAN Co.,
Ltd., the sub-subsidiary, uses Japanese Yen, Q.B.PTE.LTD, the sub-subsidiary, uses Singapore dollars, and
TOPBAND MEXICO, S.DER.L.DEC.V., the sub-subsidiary, uses Mexican Peso; TOPBAND SMART 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 December 31, 2022, the assets and
liabilities of the Company are RMB balances, except that the assets or liabilities stated in VI. (LVIII) foreign
currency monetary items are US dollars, Hong Kong dollars, Euros, Vietnamese Dong, Japanese Yen, Indian
Rupee, Romanian Leu and Mexican Peso balances. 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.
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2. Credit risk
On December 31, 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 are taken to recover overdue claims. In addition, the Company reviews the recovery of each individual
receivable on each balance sheet date to ensure that adequate provision is made for uncollectible amounts. As a
result, the Management of the Company believes that the credit risk assumed by the Company has been
significantly reduced.
The Company's working capital is deposited in a bank with a high credit rating, so the credit risk of working
capital is low.
The Company has adopted necessary policies to ensure that all sales customers have good credit records. The
Company has no other major credit concentration risk.
3. Flow risk
When managing liquidity risk, the Company maintains sufficient cash and cash equivalents as deemed by the
management and monitors them to meet the Company's operational needs and reduce the impact of cash flow
fluctuations. The management of the Company monitors the use of bank loans and ensures compliance with loan
agreements.
(II) Transfer of financial assets
There were no events related to the transfer of financial assets in the Company this year.
(III) Offsetting between financial assets and financial liabilities
There were no events related to the offsetting between financial assets and financial liabilities in the Company
this year.
XI. Disclosure of Fair Value
1. Ending fair value of assets and liabilities measured at fair value
Unit: RMB
Ending fair value
Items The second level of
The first level of fair The third level of fair
fair value Total
value measurement value measurement
measurement
I. Continuous fair value
-- -- -- --
measurement
(I) Tradable financial assets 342,959,450.31 342,959,450.31
1. Financial asset at fair value 342,959,450.31 342,959,450.31
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and changes through current
profits and losses
(1) Debt instrument investment 1,790,866.41 1,790,866.41
(2) Equity instrument
341,168,583.90 341,168,583.90
investment
(II) Receivables financing 254,988,202.60 254,988,202.60
(1) Bank acceptance bill 79,652,525.19 79,652,525.19
(2) Accounts receivable 173,392,414.33 173,392,414.33
(3) Yunxin 1,943,263.08 1,943,263.08
Total assets continuously
597,947,652.91 597,947,652.91
measured at fair value
II. Non-continuous fair value
-- -- -- --
measurement
2. The basis for determining the market price of continuous and non-continuous first-level fair value
measurement items
None
3. Continuous and non-continuous second-level fair value measurement items, valuation techniques adopted
and qualitative and quantitative information of important parameters
None
4. Continuous and non-continuous third-level fair value measurement items, valuation techniques adopted
and qualitative and quantitative information of important parameters
None
5. Continuous third-level fair value measurement items, adjustment information between beginning and
ending book value and sensitivity analysis of unobservable parameters
None
6. For continuous fair value measurement items, if the conversion occurs among different levels in the
current period, the reasons for the conversion and the policies for determining the conversion time point
None
7. Technical changes in valuation during the current period and the reasons for such changes
None
8. Fair value of financial assets and financial liabilities not measured at fair value
None
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9. Others
None
XII. Related Parties and Related Transactions
1. Profile of parent company of the Company
Proportion of the
Shareholding ratio
Name of parent parent company's
Registered place Nature of business Registered capital of parent company
company voting rights in the
to the Company
Enterprise
Wu Yongqiang Shenzhen 16.68% 16.68%
Profile of parent company of the Company
The first majority shareholder and actual controller of the Company
The ultimate controller of the Company is Wu Yongqiang.
Other description:
2. Profile of subsidiaries of the Company
For details of the subsidiaries of the Company, please refer to Note IX 1.
3. Information on the joint ventures and associated enterprises of the Enterprise
See the Note IX.3 on key joint ventures or associated enterprises of the enterprise.
Other joint ventures or associated enterprises having related-party transaction in current period or in previous
period to form balance are listed as follows:
None
4. Other related parties
Names of other related parties Relationship between other related parties and the Enterprise
A company substantially controlled by the relative of the
Shenzhen Jizhiguang Electronics Co., Ltd.
Company's legal representative
Shenzhen Lianghui Technology Co., Ltd. Shareholding companies of the Company
Shenzhen ORVIBO Technology Co., Ltd. Shareholding companies of the Company
Shenzhen HANSC Intelligent Technology Co., Ltd. Shareholding companies of the Company
Guangdong Zhongchuang Zhijia Scientific Research Co., Ltd. Shareholding companies of the Company
Guangdong Huixin Semiconductor Co., Ltd. Shareholding companies of the Company
Fujian Mini Dolphin New Energy Technology Co., Ltd. Shareholding companies of the Company
Chengdu Senwei Technology Co., Ltd. Shareholding companies of the Company
Shenzhen Youbi Technology Co., Ltd. Shareholding companies of the Company
Shanghai Yidong Power Technology Co., Ltd. Shareholding companies of the Company
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Pas Electronic Technology (Nanjing) Co., Ltd. Shareholding companies of the Company
Jiangsu Donghai Semiconductor Co., Ltd. Shareholding companies of the Company
Jiangxi Sarui Microelectronics Technology Co., Ltd. Shareholding companies of the Company
Shanghai Xinggan Semiconductor Co., Ltd. Shareholding companies of the Company
Shenzhen Jizhi Laser Technology Co., Ltd. Shareholding companies of the Company
Other description:
None
5. Related party transaction
(1) Related transactions involving the purchase and sale of goods and the provision and acceptance of
services
List of goods purchased/services received
Unit: RMB
Is the
Amount Amount
Related transaction Approved transaction
Related party incurred in the incurred in
content transaction limit limit
current period prior period
exceeded
Shenzhen Jizhiguang Electronics Co.,
Raw materials 16,943,886.18 27,000,000.00 No 18,415,795.03
Ltd.
Shenzhen ORVIBO Technology Co.,
Raw materials 28,062.77 No
Ltd.
Jiangsu Donghai Semiconductor Co.,
Raw materials 38,775.00 No
Ltd.
List of goods sold/services provided
Unit: RMB
Related transaction Amount incurred in the current Amount incurred in prior
Related party
content period period
Shenzhen ORVIBO Technology Co.,
Goods on hand 23,106,968.00 32,048,669.89
Ltd.
Related transactions involving the purchase and sale of goods and the provision and acceptance of services
(2) Relevant entrusted management/contracting and entrusted management/outsourcing
None
(3) Related lease
None
(4) Related party guarantee situation
None
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(5) Interbank lending of related parties
None
(6) Asset transfer and debt restructuring of related parties
None
(7) Remuneration of key management personnel
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Remuneration of key management personnel 12,635,800.00 10,758,300.00
(8) Other related transactions
None
6. Payables due to related parties
(1) Item receivable
Unit: RMB
Ending balance Beginning balance
Project name Related party Provision for Provision for
Book balance Book balance
bad debts bad debts
Accounts
Shenzhen ORVIBO Technology Co., Ltd. 6,487,666.99 201,117.68 10,396,665.72 322,296.64
receivable
Accounts Fujian Mini Dolphin New Energy
1,753,420.02 158,509.17
receivable Technology Co., Ltd.
(2) Payables
Unit: RMB
Book balance at the end of the Book balance at the beginning
Project name Related party
period of the period
Accounts
Shenzhen Jizhiguang Electronics Co., Ltd. 1,411,710.91 3,099,592.01
payable
Accounts
Jiangsu Donghai Semiconductor Co., Ltd. 43,708.50
payable
Notes payable Shenzhen Jizhiguang Electronics Co., Ltd. 110,000.00 2,376,908.03
Contractual Guangdong Zhongchuang Zhijia Scientific
132,075.47
liabilities Research Co., Ltd.
7. Commitment of related parties
None
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8. Others
None
XIII. Share-based payment
1. General situation of share-based payments
Applicable □ Not applicable
Unit: RMB
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 1,816,000.00
current period
On November 2, 2021, the Company granted restricted stocks to incentive objects at a grant
price of RMB 7.23 per share, including 1,224 registered objects and 33.54432 million
restricted stocks in total. Topband carried out the performance appraisal for companies and
The range of the exercise price of the
the individual incentive objects once in each fiscal year, taking the performance appraisal
Company's other equity instruments
target as the unlocking condition for restricted stocks. This incentive plan was valid from
outstanding at the end of the period and
the grant date of restricted stocks to the date when all restricted stocks were unlocked or
the remaining term of the contract
canceled, with the maximum time of 48 months. After 12 months from the 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:
Explanation 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 million stock options to 684 eligible
incentive objects at a grant price of RMB 3.80 per share.
On July 26, 2019, the 15th Meeting of the 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 RMB 3.80 to RMB 3.70 due to the Company's 2018
annual equity distribution.
On March 30, 2020, the Company held the 22nd Meeting of the 6th Board of Directors, deliberating and
approving the Proposal on the First Exercise Period of 2018 Stock Option Incentive Plan Meeting the Exercise
Conditions and Exercisable Rights and the Proposal on Adjustment of the Incentive Objects and the Number of
Stock Options of 2018 Stock Option Incentive Plan: In the first exercise period of the 2018 stock option incentive
plan of the Company, a total of 606 incentive objects with 12.0147 million stock options in total were eligible for
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exercise. In May 2020, a total of 606 incentive objects with 12.0147 million 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
million 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 passed 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 10.9506 million stock options, that meet the exercise conditions and 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, 10.9506 million 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 passed 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
14.0493 million 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 14.0493 million.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, 14.0493 million 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 deliberated and
passed 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 million restricted stocks to 1,250 incentive objects.
On November 2, 2021, the Company held the 16th (Extraordinary) Meeting of the 7th Board of Directors and
the 13th (Extraordinary) Meeting of the 7th Board of Supervisors, to deliberate and approve the Proposal on
Adjusting the Number of Granted Options and List of Incentive Objects in Restricted Stock Incentive Plan in
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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 adjusted from 1,250 to 1,246, and the total restricted stocks granted for the first time was
changed from 34 million to 33.951 million.
On December 7, 2021, the Company held the 17th (Extraordinary) Meeting of the 7th Board of Directors, to
deliberate and approve the Proposal on Adjusting the Number of Granted Options and List of Incentive Objects in
Restricted Stock Incentive Plan in 2021.The 21st 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 21st adjusted the grant objects and grant quantities of this incentive plan. After
adjustment, the number of incentive objects under the Restricted Stock Incentive Plan in 2021 decreased from
1,246 to 1,224, and the number of restricted stocks granted decreased from 33.951 million to 33.54432 million.
On March 30, 2022, the 23rd (Extraordinary) Meeting of the 7th Board of Directors and the 19th
(Extraordinary) Meeting of the 7th Board of Supervisors of the Company deliberated and passed 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 201,000 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.
On July 25, 2022, the 26th Meeting of the 7th Board of Directors and the 22nd Meeting of the 7th Board of
Supervisors deliberated and passed the Proposal on Adjusting the Repurchase Price of Restricted Stock Incentive
Plan in 2021. The 2021 annual equity distribution plan was implemented, and the repurchase price was adjusted
from RMB 7.23 per share to RMB 7.18 per share accordingly.
On August 19, 2022, the 27th (Extraordinary) Meeting of the 7th Board of Directors and the 22nd
(Extraordinary) Meeting of the 7th Board of Supervisors of the Company deliberated and passed the Proposal on
the Proposal on Repurchase and Cancellation of Some Restricted Stocks from Restricted Stock Incentive Plan in
2021. 66 incentive objects, including Wei Yin and Li Xinwei in the Restricted Stock Incentive Plan in 2021,
resigned from the Company due to personal reasons and no longer met conditions for becoming stock incentive
objects. Therefore, their 1.291 million 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 1,214 to 1,148.
2. Equity-settled share-based payments
Applicable □ Not applicable
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Unit: RMB
Method for determining the fair value of the equity instrument on Fair value of equity instruments = (market price on grant date -
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
239,742,584.41
included in capital reserves
Total amount of expenses recognized by equity-settled share-
129,338,605.34
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
None
5. Others
None
XIV. Commitments and contingencies
1. Important commitments
Important commitments that existed on the balance sheet date
As of December 31, 2022, the Company has no commitment that needs to be disclosed.
2. Contingencies
(1) Significant contingencies on the balance sheet date
As of December 31, 2022, the Company has no contingency that needs to be disclosed.
(2) The important contingencies not required to be disclosed shall be explained as well
No signification contingencies need to be disclosed by the Company.
3. Others
None
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XV. Events after the balance sheet date
1. Important non-adjusting matters
None
2. Profit distribution
None
3. Sales return
None
4. Explanation of other events after the balance sheet date
None
XVI. Other important matters
1. Correction of early accounting errors
(1) Retrospective restatement method
None
(2) Prospective application method
None
2. Debt restructuring
None
3. Asset replacement
None
4. Annuity plan
None
5. Discontinued operation
None
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6. Division information
(1) Basis for recognition and accounting policies of reportable divisions
None
(2) Financial information of reportable divisions
None
(3) If the Company has no reportable segments, or fails to disclose the total assets and liabilities of each
segment, the reasons shall be given.
None
(4) Other descriptions
None
7. Other important transactions and matters that have an impact on investors' decisions
None
8. Others
None
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XVII. Notes to main items of financial statements of the parent company
1. Accounts receivable
(1) Disclosure of accounts receivable by category
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportion of Book value Proportion of Book value
Amount Proportion Amount Amount Proportion Amount
provision provision
Accounts receivable with single
450,165,784.04 25.14% 450,165,784.04 231,814,138.25 15.06% 231,814,138.25
provision for bad debts
Including:
Accounts receivable with a single
significant amount and single bad 449,954,452.01 25.13% 449,954,452.01 231,795,120.17 15.06% 231,795,120.17
debt provision
Accounts receivable with
insignificant single amount but 211,332.03 0.01% 211,332.03 19,018.08 0.00% 19,018.08
separate bad debt provision
Accounts receivable with
provision for bad debts by 1,340,185,677.97 74.86% 43,496,510.19 3.25% 1,296,689,167.78 1,306,965,149.94 84.94% 41,858,033.85 3.20% 1,265,107,116.09
portfolio
Including:
Accounts receivable with
provision for bad debts by
1,340,185,677.97 74.86% 43,496,510.19 3.25% 1,296,689,167.78 1,306,965,149.94 84.94% 41,858,033.85 3.20% 1,265,107,116.09
combination (aging analysis
method)
Total 1,790,351,462.01 100.00% 43,496,510.19 2.43% 1,746,854,951.82 1,538,779,288.19 1.00% 41,858,033.85 2.72% 1,496,921,254.34
Single provision for bad debts: 0
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision Reasons for provision
Receivables with significant individual amount and single provision 449,954,452.01
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for bad debts
Receivables with not significant amount but with single provision
211,332.03
for bad debts
Total 450,165,784.04
Provision for bad debts by portfolio: 43,496,510.19
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Accounts receivable with provision for bad debts by combination (aging analysis
1,340,185,677.97 43,496,510.19 3.25%
method)
Total 1,340,185,677.97 43,496,510.19
Explanation of the basis for determining the portfolio:
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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: RMB
Aging Book balance
Within 1 year (including 1 year) 1,781,879,318.05
1-2 years 5,015,015.44
2-3 years 1,465,220.68
Above 3 years 1,991,907.84
3-4 years 659,343.12
4-5 years 1,332,564.72
Above 5 years 0.00
Total 1,790,351,462.01
(2) Provision for bad debts withdrawn, recovered or reversed in current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Beginning
Category Recover or Ending balance
balance Provision Write-off Other
reversal
Provision for
41,858,033.85 1,537,879.86 -100,596.48 43,496,510.19
bad debts
Total 41,858,033.85 1,537,879.86 -100,596.48 43,496,510.19
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
None
(4) Accounts receivable of top five ending balances grouped by debtors
Unit: RMB
Ending balance of accounts Proportion to total ending Ending balance of provision
Name of unit
receivable balances of accounts receivable for bad debts
No. 1 551,671,878.51 30.81% 17,106,763.12
No. 2 358,663,142.99 20.03%
No. 3 68,175,617.40 3.81%
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No. 4 57,925,548.32 3.24% 1,795,692.00
No. 5 54,349,143.94 3.04% 1,684,823.46
Total 1,090,785,331.16 60.93%
(5) Amount of assets and liabilities formed by transferring accounts receivable and continuing to be
involved
Other descriptions: None
(6) Accounts receivable derecognized due to transfer of financial assets
2. Other receivables
Unit: RMB
Items Ending balance Beginning balance
Other receivables 902,544,005.07 141,619,648.22
Total 902,544,005.07 141,619,648.22
(1) Interest receivable
1) Classification of interest receivable
None
2) Significant overdue interest
None
3) Provision for bad debts
□ Applicable Not applicable
(2) Dividends receivable
1) Classification of interest receivable
None
2) Important dividends receivable aged over 1 year: None
3) Provision for bad debts
□ Applicable Not applicable
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Other descriptions: None
(3) Other receivables
1) Classification of other receivables by nature of amount
Unit: RMB
Nature of payment Book balance at the end of the period Book balance at the beginning of the period
Export rebate 13,029,637.12 0.00
Employee loans 7,933,323.35 6,888,020.46
Margin, deposit 6,090,182.95 5,474,993.31
Receivables and payables 878,703,958.79 131,639,091.99
Other 30,456.33 7,693.46
Total 905,787,558.54 144,009,799.22
2) Provision for bad debts
Unit: RMB
First stage Second stage Third stage
Provision for bad debts Expected credit loss for Expected credit loss for Total
Expected credit loss in
the entire duration (no the entire duration (credit
the next 12 months
credit impairment) impairment occurred)
Balance as of January 1, 2022 2,390,151.00 2,390,151.00
Balance as of January 1, 2022 in
the current period
Accrual in the current period 862,460.59 862,460.59
Amount charged off in the
9,058.12 9,058.12
current period
Balance as of December 31,
3,243,553.47 3,243,553.47
2022
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable Not applicable
Disclosure by aging
Unit: RMB
Aging Book balance
Within 1 year (including 1 year) 899,507,615.15
Total within 1 year 899,507,615.15
1-2 years 1,718,310.98
2-3 years 877,475.83
Above 3 years 3,684,156.58
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3-4 years 2,500,962.00
4-5 years 69,484.58
Above 5 years 1,113,710.00
Total 905,787,558.54
3) Bad debt provision withdrawn, recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Category Beginning balance Ending balance
Provision Recover or reversal Write-off Other
Provision for bad debts 2,390,151.00 862,460.59 9,058.12 3,243,553.47
Total 2,390,151.00 862,460.59 9,058.12 3,243,553.47
4) Other receivables actually written off in the current period
None
5) Other receivables of top five ending balances grouped by debtors
Unit: RMB
Proportion to total Ending balance of
Name of
Nature of payment Ending balance Aging ending balances of provision for bad
unit
other receivables debts
No. 1 Transactions with related parties 704,552,468.64 Within 1 year 77.78%
No. 2 Transactions with related parties 139,616,541.34 Within 1 year 15.41%
No. 3 Transactions with related parties 23,261,228.00 Within 1 year 2.57%
No. 4 Export tax rebate 13,029,637.12 Within 1 year 1.44%
No. 5 Transactions with related parties 3,503,540.00 Within 1 year 0.39%
Total 883,963,415.10 97.59%
6) Receivables involving government subsidies
None
7) Other receivables derecognized due to transfer of financial assets
None
8) Amount of assets and liabilities formed by transferring other receivables and continuing to be involved
None
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3. Long-term equity investment
Unit: RMB
Ending balance Beginning balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in
3,952,516,773.78 3,952,516,773.78 2,941,581,406.04 2,941,581,406.04
subsidiaries
Investment in
associated
18,320,001.21 12,433,655.05 5,886,346.16 18,408,714.90 12,433,655.05 5,975,059.85
enterprises and
joint ventures
Total 3,970,836,774.99 12,433,655.05 3,958,403,119.94 2,959,990,120.94 12,433,655.05 2,947,556,465.89
(1) Investment in subsidiaries
Unit: RMB
Changes in increase or decrease in the current Ending
period balance of
Beginning balance Ending balance
Investee Decrease Provision provision
(book value) Additional (book value)
in for Other for
investment impairment
investment impairment
Shenzhen Topband Software Technology
18,699,450.44 5,395,624.24 24,095,074.68
Co., Ltd.
Shenzhen Topband Battery Co., Ltd. 5,963,808.90 617,193,739.55 623,157,548.45
Shenzhen Topband Automation
34,634,741.13 1,108,629.30 35,743,370.43
Technology Co., Ltd.
Chongqing Topband Industrial Co., Ltd. 210,330,745.87 809,138.72 211,139,884.59
Topband (Hong Kong) Co., Ltd. 364,511,500.00 163,897,000.00 528,408,500.00
Huizhou Topband Electrical Technology
1,007,281,720.35 17,443,269.29 1,024,724,989.64
Co., Ltd.
Ningbo Topband Intelligent Control Co.,
519,868,835.07 150,714,633.48 670,583,468.55
Ltd.
Shenzhen Allied Control System Co., Ltd. 122,145,544.81 3,499,900.70 125,645,445.51
Shenzhen Meanstone Intelligent
10,000,000.00 10,000,000.00
Technology Co., Ltd.
TOPBANDINDIAPRIVATELIMITED 195,026,748.97 195,026,748.97
Shenzhen YAKO Automation Technology
350,014,659.96 350,014,659.96
Co., Ltd.
Shenzhen Topband Investment Co., Ltd. 60,092,202.62 40,144,265.56 100,236,468.18
Shenzhen Topband Supply Chain Services
5,000,000.00 0.00 5,000,000.00
Co., Ltd.
Shenzhen Senxuan Technology Co., Ltd. 8,011,447.92 62,800.02 8,074,247.94
Topband (Qingdao) Intelligent Control
30,000,000.00 0.00 30,000,000.00
Co., Ltd.
Shenzhen Topband Motor Co., Ltd. 10,666,366.88 10,666,366.88
Total 2,941,581,406.04 1,010,935,367.74 3,952,516,773.78
(2) Investment in associated enterprises and joint ventures
Unit: RMB
264
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
Changes in increase or decrease in the current period
Profits and
Declaration Ending
Beginning losses on Ending
Adjustment to Other of balance of
Investment unit balance Decrease investment Provision balance
Additional other changes distribution
(book value) investment in recognized for Other (book value) provision for
comprehensive in for cash impairment
investment under impairment
income equity dividends
equity
or profits
method
I. Joint venture
II. Associated enterprises
Shenzhen Daka
Optoelectronics 5,975,059.85 -88,713.69 5,886,346.16
Co., Ltd.
Tai'an
Yuchengxin
Power Supply 12,433,655.05
Technology
Co., Ltd.
Subtotal 5,975,059.85 -88,713.69 5,886,346.16 12,433,655.05
Total 5,975,059.85 -88,713.69 5,886,346.16 12,433,655.05
(3) Other descriptions
None
4. Operating income and operating cost
Unit: RMB
Amount incurred in the current period Amount incurred in prior period
Items
Income Cost Income Cost
Main business 5,013,119,851.86 4,207,791,500.54 4,371,958,034.40 3,624,790,477.82
Other business 189,528,792.86 170,094,464.62 192,086,856.35 167,351,318.23
Total 5,202,648,644.72 4,377,885,965.16 4,564,044,890.75 3,792,141,796.05
Income-related information:
None
Information related to performance obligations:
Not applicable
Other description:
None
5. Return on investment
Unit: RMB
265
Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
Items Amount incurred in the current period Amount incurred in prior period
Long-term equity investment income
14,053,405.97
accounted with cost method
Long-term equity investment income
-88,713.69 -527,468.28
accounted by the cost method
Investment revenue from disposal of
38,226,720.08
tradable financial assets
Forward foreign exchange settlement
2,994,236.07 9,569,000.00
profit and loss
Income of financial products 7,977,806.26
Total 2,905,522.38 69,299,464.03
6. Others
None
XVIII. Supplementary Information
1. Schedule of current non-recurring profits and losses
Applicable □ Not applicable
Unit: RMB
Items Amount Description
Profits and losses on disposal of non-current assets -3,145,453.49
Government subsidies included in current profits and losses (except those that
are closely related to the normal business of the Company, conform to
33,217,045.91
national policies and 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 financial assets and liabilities and available-for-sale 90,812,862.06
financial assets, except for the effective hedging business related to the
normal business of the Company
Reversal of the provision for impairment in receivables for which impairment
120,596.48
tests are carried out separately
Other non-operating income and expenses other than those mentioned above 373,250.06
Other items of profits and losses that meet the definition of non-recurring
270,112.67
profits and losses
Minus: amount affected by income tax 22,265,407.68
Impact amount of minority shareholders' equity 430,808.43
Total 98,952,197.58 --
Details of other items of profits and losses that conformto the definition of non-recurring profits and losses:
□ Applicable Not applicable
None.
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Full Text of Annual Report 2022 of Shenzhen Topband Co., Ltd.
Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profits and Losses
as recurring profit and loss items
□ Applicable Not applicable
2. Return on equity and earnings per share
Earnings per share
Weighted return on Diluted
Profits of the reporting period Basic earnings
average equity earnings per
per share
share
(RMB/share)
(RMB/share)
Net income attributable to the ordinary shareholders of the Company 10.85% 0.46 0.46
Net profit attributable to the ordinary shareholders of the Company after
9.00% 0.38 0.38
deduction of non-recurring 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
None
4. Others
None
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