Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Suzhou Dongshan Precision Manufacturing Co., Ltd.
Semi-Annual Report 2024
August 20, 2024
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Section I Important Note, Table of Contents and Definitions
The Board of Directors, the Board of Supervisors, directors, supervisors and senior executives
of the Company hereby warrant that the information contained in this Semi-Annual Report is
true, accurate and complete without any misrepresentation, misleading statement or material
omission, and agree to assume joint and several liabilities for this Semi-Annual Report.
YUAN Yonggang, Principal of the Company, CFO WANG Xu and Accounting Supervisor
ZHU Deguang hereby represent that the financial statements contained in this Semi-Annual
Report are true, accurate and complete.
All directors of the Company attended the meeting of the Board of Directors reviewing this
Semi-Annual Report.
Forward-looking statements such as those on future development plans in this Report do not
constitute substantial commitments by the Company to the investors. The investors should
make investments rationally and keep an eye on the associated risks.
In this Report, the Company has elaborated relevant potential risk factors and
countermeasures, as can be referred to in “X. Risk Exposures to the Company and
Countermeasures” under “Section III Management’s Discussion and Analysis”, to which the
investors should pay attention.
The Company had no plan to pay cash dividends, distribute bonus shares or convert any capital
reserve to the share capital.
Note:
This document is a translated version of the Chinese Semi-Annual Report 2024 ("2024 年半年度报告"). In
case of any discrepancies, the Semi-Annual Report 2024 published in the Chinese version shall prevail. The
full Chinese Semi-Annual Report 2024 is available at www.cninfo.com.cn.
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Table of Contents
Section I Important Note, Table of Contents and Definitions ............................................................................2
Section II Company Profile and Financial Highlights ........................................................................................7
Section III Management’s Discussion and Analysis ........................................................................................10
Section IV Corporate Governance ....................................................................................................................31
Section V Environmental and Social Responsibilities .....................................................................................33
Section VI Significant Matters .........................................................................................................................39
Section VII Changes in Shares and Shareholders.............................................................................................48
Section VIII Preferred Shares ...........................................................................................................................53
Section IX Bonds..............................................................................................................................................54
Section X Financial Report ..............................................................................................................................55
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
List of References
1. Financial statements signed and chopped by Mr. YUAN Yonggang, legal representative, Mr. WANG Xu, CFO,
and Mr. ZHU Deguang, Accounting Supervisor of the Company.
2. Originals of all documents of the Company publicly disclosed during the reporting period and related
announcements.
3. Original of the Semi-Annual Report 2024 stamped with the seal and signed by the legal representative of the
Company.
4. Place keeping such documents for inspection: Securities Department of the Company at Building 12#, Yunhe
Town Headquarters Industrial Park, 99 East Taihu Road, Wuzhong District, Suzhou.
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Definitions
Term means Definition
Company, we or DSBJ means Suzhou Dongshan Precision Manufacturing Co., Ltd.
One of our three major business segments, including research and development (R&D),
Printed circuit board (PCB) means
design, manufacturing and sale of FPCs, rigid PCBs, rigid-flex PCBs and other products.
One of our three major business segments, including R&D, design, manufacturing and
Photoelectric display means
sale of LED devices, touch panels, liquid crystal display modules and other products.
One of our three major business segments, including design, manufacturing and sale of
Precision manufacturing means
precision metal structural components and assemblies and other products.
means Suzhou Yongchuang Metal Science and Technology Co., Ltd., a wholly owned
Yongchuang Tech
subsidiary of the Company.
means Hong Kong Dongshan Precision Union Optoelectronic Co., Limited, a wholly owned
Hong Kong Dongshan
subsidiary of the Company.
Dragon Holdings means Dragon Electronix Holdings Inc., a wholly owned subsidiary of Hong Kong Dongshan.
MFLEX means Multi-Fineline Electronix, Inc., a wholly owned subsidiary of Dragon Holdings.
MFLEX Suzhou means MFLEX Suzhou Co., Ltd., a wholly owned subsidiary of MFLEX.
MFLEX Yancheng means MFLEX Yancheng Co., Ltd., a wholly owned subsidiary of MFLEX.
Hong Kong Dongshan
means Hong Kong Dongshan Holding Limited, a wholly owned subsidiary of the Company.
Holding
Multek Group (Hong Kong) Limited, a wholly owned subsidiary of Hong Kong
Multek Group means
Dongshan Holding.
Multek Industries means Multek Industries Limited, a wholly owned subsidiary of Multek Group.
Multek Technology means Multek Technology (Zhuhai) Co., Ltd., a wholly owned subsidiary of Multek Group.
Multek Zhuhai means Multek Zhuhai Limited, a wholly owned subsidiary of Multek Group.
Multek China means Multek China Ltd., a wholly owned subsidiary of Multek Group.
Yancheng Dongshan Precision Manufacturing Co., Ltd., a wholly owned subsidiary of
Yancheng Dongshan means
the Company.
Suzhou JDI means Suzhou JDI Electronics Inc. a wholly owned subsidiary of the Company.
5G means The 5th generation mobile communication technology.
AI means Artificial Intelligence, the simulation of human intelligence using computer programs.
Augmented Reality, a technology that combines and integrates the virtual world on
AR means screen with the real world, based on precise calculation of position and angle of camera
images and image analysis technology.
Virtual Reality, a computer-simulated 3D virtual world with scenes and objects that
VR means
appear to be real.
Internet of Things, a system of interrelated computing devices, mechanical and digital
IoT means machines, that has a unique identifier (UID) and is capable of transmitting data over the
network.
Printed Circuit Board, a finished product with insulated substrates and conductors as
PCB means materials, designed and made into printed circuits, printed components or a combination
of conductive patterns according to the pre-designed circuit schematic diagram.
FPC means Flexible Printed Circuit.
Light-emitting diode, a conductor diode that emits incoherent light when current flows
through it, and the recombination of electrons and electron holes in the semiconductor
LED or LED device means
produces radiation, for the purpose of this Report, including LED particles, LED light
bars, LED backlight modules, LED lighting devices and other LED products.
Mini LED means Sub-millimeter light emitting diode, an LED device with a grain size of about 50-200μm.
LCD module or LCD display module, formed by assembling LCD display device with
LCM means the relevant connectors, control, driver and other peripheral circuits, PCB circuit board,
backlight source, structural components and other components.
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
A device under the protection of transparent glass that detects touches using sensors, and
Touch panel means
processes and transmits the relevant information.
AOA means The Articles of Association of Suzhou Dongshan Precision Manufacturing Co., Ltd.
CSRC means The China Securities Regulatory Commission.
Reporting period means The period from January 1, 2024, to June 30, 2024.
RMB and RMB0’000 means Renminbi and ten thousand Yuan respectively.
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Section II Company Profile and Financial Highlights
I. Company Profile
Stock short name DSBJ Stock code 002384
Stock exchange Shenzhen Stock Exchange
Chinese name 苏州东山精密制造股份有限公司
Chinese short name (if any) 东山精密
English name (if any) Suzhou Dongshan Precision Manufacturing Co., Ltd.
English short name (if any) DSBJ
Legal representative YUAN Yonggang
II. Contact Person and Contact Information
Board Secretary Securities Affairs Representative
Name MAO Xiaoyan ZHOU Hao
Building 12#, Yunhe Town Headquarters Building 12#, Yunhe Town Headquarters
Address Industrial Park, 99 East Taihu Road, Industrial Park, 99 East Taihu Road,
Wuzhong District, Suzhou, Jiangsu Wuzhong District, Suzhou, Jiangsu
Telephone 0512-80190019 0512-80190019
Facsimile 0512-80190029 0512-80190029
Email maoxy@dsbj.com hao.zhou@dsbj.com
III. Other Information
1. Contact information of the Company
Whether there is any change in the Company’s registered address, office address and corresponding postal code, website, and email
address, etc. during the reporting period?
□Applicable N/A
There has been no change in our registered address, office address and corresponding postal code, website and email address, etc., as
detailed in the Annual Report 2023.
2. Media for information disclosure and place for keeping the Report
Whether there is any change in the media for information disclosure and place for keeping the report during the reporting period?
□Applicable N/A
The website of the stock exchange and the media and its website disclosing our semi-annual report, as well as the place for keeping
our semi-annual report remain unchanged, as detailed in the Annual Report 2023.
3. Other related information
Whether there is any change in other related information during the reporting period?
□Applicable N/A
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
IV. Key Accounting Data and Financial Indicators
Did the Company need to retrospectively adjust or restate any accounting data of prior years?
□Yes No
The same period of the
The reporting period Y/Y % change
previous year
Operating revenue (RMB) 16,628,586,195.56 13,667,087,825.06 21.67%
Net profit attributable to shareholders of the
560,600,936.27 824,548,652.98 -32.01%
Listed Company (RMB)
Net profit attributable to shareholders of the
Listed Company after deduction of non- 516,020,496.59 577,620,808.52 -10.66%
recurring gain or loss (RMB)
Net cash flow from operating activities
2,088,969,399.28 2,613,900,836.02 -20.08%
(RMB)
Basic earnings per share (RMB/share) 0.33 0.48 -31.25%
Diluted earnings per share (RMB/share) 0.33 0.48 -31.25%
Weighted average return on net assets 3.05% 4.95% -1.90%
The end of the reporting The end of the previous
% Change
period year
Total assets (RMB) 45,619,022,558.56 44,371,719,028.28 2.81%
Net assets attributable to shareholders of the
18,171,951,396.35 18,143,026,745.54 0.16%
Listed Company (RMB)
V. Differences in Accounting Data under the Chinese Accounting Standards for Business
Enterprises (the “CASBEs”) and Overseas Accounting Standards
1. Differences in net profit and net assets disclosed in the financial report prepared under the CASBEs and
the International Financial Reporting Standards (IFRS)
□Applicable N/A
There was no difference in net profit and net assets disclosed in the financial report for the reporting period prepared under the
CASBEs and the IFRS.
2. Differences in net profit and net assets disclosed in the financial report prepared under the CASBEs and
overseas accounting standards
□Applicable N/A
There was no difference in net profit and net assets disclosed in the financial report for the reporting period prepared under the
CASBEs and overseas accounting standards.
VI. Items and Amounts of Non-recurring Gains or Losses
Applicable □N/A
In RMB
Item Amount Remark
Gain or loss on disposal of non-current assets (including allowance for impairment of
-36,219,263.01
assets that has been written off)
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Government grants recognized in profit or loss (excluding the government grants that are
closely related to the business of the Company, conform to the applicable polices of the
145,779,443.11
country, are provided in accordance with the established standards, and continuously affect
the Company’s profit or loss)
Gain or loss on changes in fair value of financial assets and financial liabilities held by
non-financial entities, and gain or loss on disposal of financial assets and financial -59,013,703.39
liabilities, except for effective hedges held in the ordinary course of business
Other non-operating revenues and expenses 3,644,170.97
Less: Effect on income tax 9,842,216.40
Effect on minority interests (exclusive of tax) -232,008.40
Total 44,580,439.68
Other items of gain or loss within the meaning of non-recurring gains or losses:
□Applicable N/A
We do not have any other item of gain or loss within the meaning of non-recurring gains or losses.
Classification of any item of non-recurring gain or loss defined by the Explanatory Announcement No. 1 on Information Disclosure
by Companies Publicly Offering Securities - Non-recurring Gain or Loss as recurring gain or loss:
□Applicable N/A
We have not classified any item of non-recurring gain or loss defined by the Explanatory Announcement No. 1 on Information
Disclosure by Companies Publicly Offering Securities - Non-recurring Gain or Loss as recurring gain or loss.
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Section III Management’s Discussion and Analysis
I. Situations of Our Primary Business during the Reporting Period
(I) During the reporting period, our primary business has not undergone any material change.
We focus on the R&D and manufacturing of core components for the intelligently interconnected world, and the provision of
comprehensive intelligent interconnection solutions to customers all over the world. We are primarily engaged in the R&D,
manufacturing and sale of PCBs, precision components, touch panel modules and LED display devices, which are widely used in
consumer electronics, new energy vehicles, communication equipment, industrial equipment, AI, medical appliances and other fields.
(II) During the reporting period, our main business model has not undergone any material change.
We leverage our complete business chain to provide our customers with comprehensive, one-stop, industrial-leading services,
continuously increase the depth of cooperation and adhesion with our customers, and maintain long-term, stable collaboration with
premium customers taking the lead in the global consumer electronics, new energy vehicle and communication equipment industries.
We manufacture main products based on market demands and adopt the production model that determines production according to
sales, under which we develop production plans and deliver products taking into account the purchase orders placed by customers, the
product quantities demanded by the customers under such purchase orders, as well as our production capacity and supply of raw
materials.
(1) Our main products and their applications
Product Product
No. Product features Application scenarios
category name
FPCs are printed circuit boards made of flexible substrates, composed of
metal conductor foils, adhesives and insulating base films, which are light,
FPC thin, bendable and suitable for three-dimensional assembly, and optimal for
electronic products with requirements for miniaturization, lightweight, and
mobility.
Rigid circuit boards are classified into single-layer boards, double-layer
boards, ordinary multi-layer boards, high-layer boards, HDI boards and
ELIC boards. Ordinary multi-layer boards typically have four or more Consumer electronics, new
layers; high-layer boards typically have more than 18 layers; HDI boards energy vehicles,
Rigid PCB refer to high-density interconnect boards, which are capable of high-density communication equipment,
1 PCBs
wiring; ELIC boards refer to Every Layer Interconnection boards, which industrial equipment, AI,
are high-end products in HDI boards. Generally, the more layers a PCB has, servers, medical devices,
the better it is for achieving fast signal transmission and improving data etc.
processing performance.
Rigid-flex PCBs combine FPCs and rigid PCBs through lamination and
other processes according to the relevant process requirements, and have
Rigid-flex the features of both FPCs and rigid PCBs. Rigid-flex PCBs can be used in
PCB products with special requirements. As they have both flexible area and
rigid areas, they can save internal space, reduce volume, and greatly
improve the performance of the finished products.
Precision metal components are formed through die casting, stamping,
New energy vehicles,
Precision panel beating, precision machining and other processes to meet the
Precision energy storage,
2 metal customers’ demand for precision, including functional structural
components communication equipment,
products components for new energy vehicles, base station antennas and filters for
consumer electronics, etc.
mobile communication, etc.
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Touch Touch panels and LCMs are important components for display modules of
Smart phones, laptops,
panel smart phones, tablets and other consumer electronic products. We are able
tablet PCs, smart watches,
Touch to provide customers with touch panels, and LCMs as separate components,
LCM etc.
3 panel or complete touch display modules.
modules On-board On-board display modules are used in display devices for vehicles. They Automotive central control
display are typically assemblies integrating display screen and control circuits and screens, dashboards,
module used to display various information and images inside vehicles. rearview mirrors, etc.
Indoor and outdoor small-
LED display devices are products formed by packaging LED chips and pitch, high-definition
4 LED display devices brackets with epoxy resin or organic silicon. Our LED display devices displays, and other
include 0606, 0808, 1010, 1515, 2121, 1921, 2525, 2727, and other models. professional fields, and
display backlight products
(2) Applications of our products in new energy vehicles
Cold plates (automatic HUDs, dashboards, and Body in white Automotive electronics
drive and central central control displays Seat framework (BMS, MCU, ECU,
control) Passenger/rear seat assembly etc.)
Heat dissipation entertainment displays,
modules and multi-connected
displays
Streaming electronic
rearview mirrors, and
armrest displays
Electric drive and Rigid PCBs and rigid-
electric control casings flex PCBs for central
Domain control casings control system/GPS
Rigid PCBs and rigid-
flex PCBs for
information &
entertainment systems/
Internet of Vehicles
Camera brackets and Casings and rigid PCBs Cell casings Charging station
assemblies for laser radars and Battery pack trays and framework and casing
Rigid PCBs and rigid- millimeter wave radars assemblies assemblies
flex PCBs for cameras Rigid PCBs for Rigid PCBs and CCS
advanced driving for battery packs
assistance system and
central computing unit
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
(3) Our situation in the industry
In the field of PCB, according to the research data published by Prismark, in terms of sales revenues in 2023, we are ranked second in
the field of FPC and third in the field of PCB in the world. We have strong technology R&D, quality control, and smart factory
management capabilities in the PCB industry, and can provide customers with high-quality products and services. Our major PCB
customers are well-known global consumer electronics and new energy vehicle manufacturers, so we have a good customer base and
strong competitiveness.
In the field of precision components, we are one of the largest specialized precision component suppliers, provide structural components
for new energy vehicles, communication equipment and other fields, and mainly serve well-known global new energy vehicle and
communication equipment manufacturers. We have strong competencies in the industry and are one of the few vendors able to provide
the new energy vehicle manufacturers with PCBs (including FPCs), on-board displays, functional and structural components, and other
products and integrated solutions. In the future, we will leverage our advantages in the coverage of multiple industry chains and the
provision of integrated solutions to further improve customer adhesion.
In the field of touch panel modules and LED display devices, we are one of the largest touch panel modules and LED display device
manufacturers in China. With the completion of our acquisition and integration of Suzhou JDI, we further expand our on-board display
module business and strengthen our overall competence in the field of touch panel modules.
II. Core Competencies of DSBJ
(I) Advantage in customers: Premium domestic and foreign customer base
Our products find favor with top customers in different areas throughout the world and have a premium customer base, which has a
good demonstration effect and will help us further enhance our capability to develop new customers and acquire larger market shares
in the future competition. Our customers come from consumer electronics, new energy vehicles, communication equipment and other
industries. Such a diversified customer base enables us to fend off the impact of seasonal and cyclical fluctuations of different industries,
and improve our core competencies while maintaining stable growth of business.
(II) Advantage in products: Wide range of products and integrated industry chain
In recent years, focusing on the R&D and production of core components related to consumer electronics and new energy industry, we
have continuously improved our industrial and product mix through acquisitions and internal development, broken development
bottlenecks, and introduced superior businesses to build up new growth drivers. At present, our product offerings cover three business
segments, namely PCB, photoelectric display and precision manufacturing. We are able to provide consumer electronics and new
energy vehicle manufacturers with a variety of basic and core components for intelligent interconnection. In the field of PCB, we have
grown into a leading company in the industry. We actively leverage the synergistic effect of all business segments in R&D, technology,
supply chain, products, marketing and other areas, through the integration of internal resources and coordinated development, gradually
achieve the synergy advantage of a vertically integrated industry chain, and strive to provide comprehensive, one-stop and
technologically advanced integrated product solutions to our customers and satisfy their customization requirements to the maximum
extent.
(III) Advantage in technology: Stick to the principle that technological innovation capability is the primary production factor
We attach great importance to technological innovation in our business development and drive our development through innovation.
Through participation in the preliminary development projects of industry-leading customers, we keep in step with the development of
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
cutting-edging technologies and have built a complete open R&D system and efficient R&D mechanisms, and a global R&D team with
outstanding professional level, rich industrial experience and strong innovation capabilities. Through continuous funding for R&D of
new materials, new technologies and new production processes, we have vigorously explored frontier production technologies for core
components in the field of intelligent interconnection, and laid solid foundations for serving emerging businesses, such as AR/VR, IoT,
Mini LED and new energy vehicles. While improving product technologies, we attach great importance to the innovation and upgrading
of production technologies and have gained certain effects in the integrated development of informatization and industrialization. By
promoting the integrated development of informatization and industrialization, we have vigorously implemented intelligent
manufacturing and built smart factories.
(IV) Advantage in management: Advanced concept, complete system and efficient execution
We advocate the corporate spirit of “openness, inclusion and pragmatism”, stick to the management principle of “overall planning, the
delegation of powers in business operation, support by the platform and centralized supervision”, give full play to the initiative and
creativity of all organizations, and have built a scientific and efficient management system. Our management team has practical
experience in the management of the advanced manufacturing industry, has wide global visions, can make accurate strategic judgments
and decisions on the trends of industry and opportunities for development, and has strong cohesion and executive ability. We embrace
a pragmatic and enterprising approach in day-to-day management and operation, make periodic benchmarking analyses to compare
our performance against historic data, budget targets and the results of outstanding peers, and effectively improve the quality and
efficiency of our operations and timely adjust our operational strategy, by setting examples and objectives, identifying breakthrough
points, focusing on implementation and reviewing what has been done, to lay solid foundations for our sustainable high-quality
development.
(V) Advantage in scale: Promote development in reliance on advantage in scale and increase benefits based on synergistic effect
Our customers are well-known domestic and international hi-tech companies that have high purchase quantities, strict requirements for
the delivery of products, and high requirements for the scale of production and production efficiency of suppliers. Through years of
development and accumulation, we have grown into a supplier of core components for intelligent interconnection with relatively strong
overall capabilities in China. Our large scale of production can satisfy the purchase demands of major downstream customers, creating
a big advantage in scale. Our advantage in scale provides us with strong bargaining power in the purchase of raw materials, resulting
in the reduction of the unit production costs. On the other hand, through effective integration of internal resources, we can reduce
operating costs, thereby increasing our superiority over our competitors, further consolidating and enhancing our position in the
industry, and improving our core competencies.
(VI) Advantage in internationalization: Promote the establishment of a “dual circulation” development pattern
We closely follow the national development strategies, actively take part in global economic competitions, and continuously enhance
the integration of high-quality resources of the industry. After the completion of two overseas acquisitions, we have successfully
entered the PCB industry that has broader prospects for development, optimized our industrial structure, and laid solid foundations for
our high-quality development. We have achieved growth in both scale of operation and results of operations through such lead-forward
development. In recent years, we have established operating entities with different functions in North America, Europe, Southeast Asia
and other countries and regions. In 2022, to implement our new-round development strategy and grasp the development opportunities
brought about by the new energy vehicle industry, we established the “two-wheel drive” strategy and decided to focus our efforts on
the two core fields, namely consumer electronics and new energy vehicles. To actively respond to the demands of customers, we have
accelerated the construction and production of overseas production bases. These actions will further improve our global operating
capabilities, promote the establishment of a “dual circulation” development pattern, and enable us to actively cope with the complicated
competition environment.
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
III. Analysis of Primary Business
In the first half of 2024, we have been proactive in adapting to and integrating with the new economic development cycle with the
rapid emergence of new products and technologies, etc., amidst multiple opportunities and challenges. Leveraging thorough market
research and analysis, we have maintained a steadfast approach and resilience, reinforcing our strategic resolve and organizational
capabilities for corporate growth. Adhering to our strategic vision and a commitment to high-quality and sustainable operation, we
have vigorously invested in research and development, and intensified our efforts in nurturing and recruiting key talents, with our
comprehensive initiatives encompassing industrial restructuring, innovation in product portfolio, expansion of customer base,
integration of information technology and industrialization, and management of costs. During the reporting period, our core business
of PCB has seen steady growth, while our new energy business has progressed in an orderly fashion. For the first six months of 2024,
we recorded an operating revenue of RMB16,628,586,200, a year-on-year increase of 21.67%. However, the significant non-recurring
revenue in the same period of the previous year, coupled with the exchange rate fluctuations and the ramp-up of new product mass
production, has exerted certain pressures on our current period’s financial performance. Consequently, for the reporting period, we
have achieved a net profit of RMB560,600,900, reflecting a year-on-year decrease of 32.01%. Our main endeavors from January to
June 2024 can be seen as follows:
I. Core business strengths and organic growth
In the PCB sector, we have adeptly seized the opportunities presented by industry development. We maintain a consistent and stable
presence in our core customer base, industry forecast, product technology, and production capacity planning, allowing us to fortify our
competitive edge and expand our field into broader market segments. With the advent of AI, we have intensified our R&D efforts in
the creation of PCB (including FPC) products tailored for AI servers, cloud computing, and automotive sector, among others, and are
proactively engaging with new customer development. By ongoing investment in R&D to bolster our technological prowess, we are
actively positioning ourselves at the forefront of innovative technology products, to capitalize on emerging industry trends and embrace
the dawn of a new era of sci-tech innovation.
II. Rapid growth of emerging businesses and enhanced development resilience
During the reporting period, our new energy sector achieved a revenue of RMB3.81 billion, a year-on-year increase of approximately
29.33%, further elevating its share in our overall revenue. We have taken various measures to mobilize resources, strengthen internal
and external collaboration, and implement agile marketing strategies, fostering a positive trajectory for our new energy business which
has become a robust engine propelling us towards a future of sustainable development. With the gradual release of new production
capacity and the smooth delivery of new products, our consumer electronics and new energy businesses have synergized to form a
resilient portfolio, laying a solid foundation for our high-quality development.
III. Concentration on high-quality revenue streams and adjustment to non-core businesses
In the intricate and dynamic competitive landscape of our industry, we observed a plateau in the operational efficiency of our non-core
businesses, particularly in the LED sector. To address this, we have promptly realigned our business strategy, by implementing a lean
management approach to drive continuous cost reduction and efficiency improvement across the entire value chain on the one hand,
and making adjustments to our customer and product portfolios, as well as our operation mode, on the other hand, to ensure the steady
development of the business sector in the pursuit of an early success.
IV. Innovative talent pool cultivation and organizational capabilities improvement
We are committed to creating a people-centric culture, attracting and retaining top-tier talent from across the globe. Aligned with our
strategic vision and bolstered by our industry operations, we are dedicated to building an agile and efficient organizational structure.
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Through internal development programs and external hiring initiatives, we ensure a steady pipeline of talents for our critical roles, and
further strengthen our organizational capabilities, which helps achieve effective business growth, thereby bringing a win-win situation
for both the Company and the employees.
V. Efficient business-finance integration system and data governance
Constructing an efficient business-finance integration system and enhancing operational management efficiency based on data
governance are essential for sustainable development and continuous upgrading of our enterprise. With great emphasis on this regard,
we have made active deployment, accordingly, deeply integrating business and financial data through a unified information platform,
actively optimizing resource allocation within the enterprise, enhancing the scientific rigor and precision of our business decisions, and
implementing strict risk control for comprehensive business oversight, to support our ongoing enhancement and optimization.
Year-on-year changes in key financial data
In RMB
The reporting The same period of Y/Y %
Reason for change
period the previous year change
16,628,586,195.5
Operating revenue 13,667,087,825.06 21.67%
6
14,455,695,057.5
Operating cost 11,831,369,939.99 22.18%
1
Selling expenses 198,461,411.65 170,543,696.07 16.37%
Administrative expenses 513,932,018.38 427,064,667.98 20.34%
Mainly due to exchange rate fluctuations
Financial expenses -27,540,920.14 -39,094,547.94 29.55% during the same period of the previous year,
resulting in exchange gains.
Income tax expenses 124,174,716.66 121,848,672.48 1.91%
Net cash flows from operating
2,088,969,399.28 2,613,900,836.02 -20.08%
activities
Mainly due to the acquisition of Suzhou JDI
and Aranda in the same period of the
previous year to improve industrial layout,
Net cash flows from investing
-1,813,918,499.58 -3,422,844,648.27 47.01% and a significant decrease in cash payments
activities
for the acquisition and construction of fixed
assets and intangible assets in the current
period.
Mainly due to the increase in cash received
Net cash flows from financing from loans for mergers and acquisitions and
35,241,082.03 560,451,468.64 -93.71%
activities other projects in the same period of the
previous year.
Mainly due to a significant decrease in cash
Net increase in cash and cash
406,867,075.93 163,708,277.65 148.53% flows from investing activities in the current
equivalents
period.
Whether there is a significant change in the components or sources of profits during the reporting period of the Company?
□Applicable N/A
There have been no significant changes in the components or sources of profits during the reporting period of the Company.
Components of operating revenue
In RMB
15
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
The reporting period The same period of the previous year
% of % of Y/Y % change
Amount operating Amount operating
revenue revenue
Total operating
16,628,586,195.56 100% 13,667,087,825.06 100% 21.67%
revenue
By segment
Computer,
communication and 16,521,772,107.69 99.36% 13,595,558,213.91 99.48% 21.52%
others
Others 106,814,087.87 0.64% 71,529,611.15 0.52% 49.33%
By product
PCBs 10,850,236,100.11 65.25% 8,972,283,939.36 65.65% 20.93%
LED display devices 437,960,520.69 2.63% 419,906,375.52 3.07% 4.30%
Touch panels and
3,122,349,556.40 18.78% 2,218,634,131.10 16.23% 40.73%
LCMs
Precision components 2,111,225,930.49 12.70% 1,984,733,767.93 14.52% 6.37%
Others 106,814,087.87 0.64% 71,529,611.15 0.52% 49.33%
By region
Domestic market 3,206,081,274.20 19.28% 2,663,920,474.21 19.49% 20.35%
Overseas market 13,422,504,921.36 80.72% 11,003,167,350.85 80.51% 21.99%
Segments, products, or regions representing more than 10% of operating revenue or profit
Applicable □N/A
In RMB
Y/Y % Y/Y % Y/Y %
Gross change in change in change in
Operating revenue Operating cost
margin operating operating gross
revenue cost margin
By segment
Computer,
communication and 16,521,772,107.69 14,408,130,744.18 12.79% 21.52% 22.11% -0.42%
others
By product
PCBs 10,850,236,100.11 8,961,485,051.28 17.41% 20.93% 23.08% -1.44%
LED display devices 437,960,520.69 555,725,301.97 -26.89% 4.30% -9.94% 20.06%
Touch panels and
3,122,349,556.40 2,998,825,987.36 3.96% 40.73% 35.91% 3.41%
LCMs
Precision components 2,111,225,930.49 1,892,094,403.57 10.38% 6.37% 11.65% -4.24%
By region
Domestic market 3,206,081,274.20 3,073,410,884.20 4.14% 20.35% 26.12% -4.38%
Overseas market 13,422,504,921.36 11,382,284,173.31 15.20% 21.99% 21.16% 0.58%
Note:
1. During the reporting period, the gross margin on LED display devices decreased by 20.06% compared to the previous year, mainly
due to the significant impact of price reductions in the same period of the previous year. Meanwhile, during the reporting period, the
Company actively adjusted its business strategy, gradually improving operational efficiency and significantly reducing losses.
2. During the reporting period, the overall revenue from the new energy business was approximately RMB3.81 billion, a year-on-year
increase of about 29.33%.
16
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
In case of any adjustment to the statistic scale for primary business data, the primary business data of the most recent reporting period
as adjusted according to the statistic scale applied at the end of the reporting period:
□Applicable N/A
IV. Analysis of Non-primary Business
□Applicable N/A
V. Analysis of Assets and Liabilities
1. Material changes in the components of assets
In RMB
The end of the reporting period The end of the previous year
Y/Y % Reason for
% of total % of total change significant change
Amount Amount
assets assets
Cash and bank
balances 7,954,476,596.69 17.44% 7,190,036,231.06 16.20% 1.24%
Accounts receivable 6,634,848,769.35 14.54% 7,713,164,772.05 17.38% -2.84%
Inventories 6,191,742,129.70 13.57% 6,293,879,276.54 14.18% -0.61%
Investment
properties 909,984.68 0.00% 1,038,840.26 0.00% 0.00%
Long-term equity
investment 151,095,048.38 0.33% 155,406,879.89 0.35% -0.02%
Fixed assets 12,712,146,406.50 27.87% 12,415,251,689.80 27.98% -0.11%
Construction in
progress 2,212,779,454.69 4.85% 1,842,525,188.54 4.15% 0.70%
Right-of-use assets 1,268,794,116.83 2.78% 1,252,668,050.83 2.82% -0.04%
Short-term
borrowings 5,605,192,891.45 12.29% 5,156,100,217.01 11.62% 0.67%
Primarily due to the
increase in
consideration
received or
receivable from
Contract liabilities 47,925,820.33 0.11% 28,982,676.07 0.07% 0.04% customers
recognized in
accordance with the
revenue standards
during the reporting
period.
Long-term
borrowings 5,230,423,595.11 11.47% 4,706,280,338.76 10.61% 0.86%
Lease liabilities 1,880,994,634.25 4.12% 1,842,799,193.80 4.15% -0.03%
2. Main overseas assets
Applicable □N/A
In RMB
Method of Mode of Controls Proportion Whether it
Assets Amount Location Income
acquisition operation for of overseas involves
17
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
guaranteein assets to risk of
g the net assets material
security of impairment
assets loss
Its
manufactur
Dragon 23,286,696 R&D and 504,108,04
Established USA ing entity is 38.50% No
Holdings ,469.94 sales 2.99
located in
China
Its
Hong manufactur
Multek 4,591,758, R&D and 64,491,255
Established Kong, ing entity is 14.72% No
Group 824.18 sales .47
China located in
China
3. Assets and liabilities at fair value
Applicable □N/A
In RMB
Impairmen
Aggregate Amount
Gain or t loss Amount
changes in acquired
Opening loss on recognized sold in the Other Closing
Item fair value in the
balance changes in in the current changes balance
recorded current
fair value current period
in equity period
period
Financial assets
1. Financial assets
held for trading
47,442,038.61 1,628,643.87 45,813,394.74
(excluding derivative
financial assets)
2. Derivative
26,920,185.50 878,826.55 -5,788,330.68 332,547,414.10 328,775,586.82 25,782,508.65
financial assets
4. Investment in other
71,779,147.66 10,712,107.78 13,171,126.62 69,320,128.82
equity instruments
Subtotal of financial
146,141,371.77 878,826.55 -5,788,330.68 343,259,521.88 343,575,357.31 140,916,032.21
assets
Total 146,141,371.77 878,826.55 -5,788,330.68 343,259,521.88 343,575,357.31 140,916,032.21
Financial liabilities 104,174,076.23 15,944,462.47 168,116,100.36 107,659,497.52 180,575,141.54
Is there a significant change in the measurement attributes for the Company’s main assets during the reporting period?
□Yes No
4. Restrictions on assets as of the end of the reporting period
In RMB
Closing balance Opening balance
Item Carrying Type of Book Carryin Type of
Book balance Reason of restriction
value restriction balance g value restriction
Security
Cash and bank 1,903,122,50 1,903,122, 1,315,351,78 1,315,351, Security
Pledge deposit for Pledge
balances 2.45 502.45 3.39 783.39 deposit
notes, etc.
18
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
for notes,
etc.
Discounte
Notes 115,000,000. 115,000,00 Discounted 130,000,000. 130,000,0
Pledge Pledge d and not
receivable 00 0.00 and not mature 00 00.00
mature
Security
Security for
784,051,228. 354,652,16 784,051,228. 418,641,7 Mortga for loans,
Fixed assets Mortgage loans, sales
85 9.33 85 01.59 ge sales and
and leaseback
leaseback
Accounts
85,726,047.9 85,726,047 172,685,965. 172,685,9 Pledge of
receivable Pledge Pledge of notes Pledge
6 .96 02 65.02 notes
financing
Right-of-use 1,594,403,24 1,268,794, 1,535,413,00 1,252,668, Mortga Finance
Mortgage Finance lease
assets 0.92 116.83 1.39 050.83 ge lease
Accounts 96,168,092.6 96,168,09
Pledge Factoring Pledge Factoring
receivable 6 2.66
4,482,303,02 3,727,294, 4,033,670,07 3,385,515,
Total
0.18 836.57 1.31 593.49
VI. Analysis of Investments
1. Overview
Applicable □N/A
Amount of investment in the reporting Amount of investment in the same period
Y/Y % change
period (RMB) of the previous year (RMB)
568,500,000.00 462,235,700.00 22.99%
2. Major equity investments acquired during the reporting period
□Applicable N/A
3. Major non-equity investments that have not yet been completed in the current period
□Applicable N/A
4. Investment in financial assets
(1) Investment in securities
□Applicable N/A
We have not invested in any securities during the reporting period.
(2) Investment in derivatives
Applicable □N/A
1) Investment in derivatives for hedging purposes during the reporting period
Applicable □N/A
In RMB0’000
19
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
% of net
Aggregate
Gain or Amount Amount assets at
Initial changes in
Type of investment in Opening loss on acquired in sold in the Closing the end
investment fair value
derivatives balance changes in the current current balance of the
amount recorded in
fair value period period reporting
equity
period
Commodity futures 16,561.58 9,940.16 2,087.93 0 39,793.46 26,466.08 25,355.47 0.55%
Total 16,561.58 9,940.16 2,087.93 0 39,793.46 26,466.08 25,355.47 0.55%
Hedge accounting policies
and principles adopted for
the reporting period and
significant changes in such None
policies and principles
compared to the previous
reporting period
Actual profit or loss for the
The loss on commodity futures transactions recorded in profit or loss was RMB20,879,300.
reporting period
We prohibit any risky speculative behavior for the purpose of locking in costs and avoiding the risks of
Effect of hedging commodity price fluctuations, in order to better avoid the risks associated with commodity price fluctuations
and enhance our financial soundness.
Source of funds for
Self-owned funds
investment in derivatives
Analysis of risks associated
with the derivatives held in
the current period
(including without
Refer to the Announcement of Commodity Futures Hedging Transactions (2023-074) disclosed by us on
limitation market risk,
December 30, 2023, for the relevant risk analysis and controls.
liquidity risk, credit risk,
operational risk and legal
risk) and related risk
control measures
Changes in the market
price or fair value of the
derivatives held in the
current period (in the We are mainly engaged in hedging transactions with mainstream products on major domestic futures markets.
analysis of the fair value of The derivatives traded by us have a transparent and active market, and their transaction prices and settlement
derivatives, the specific prices can fully reflect their fair value.
approaches, assumptions
and parameters used shall
be disclosed)
Litigation involved (if
N/A
applicable)
Disclosure date of the
announcement of the board
of directors approving the December 30, 2023
investment in derivatives
(if any)
5. Use of offering proceeds
Applicable □N/A
20
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
(1) Summary of use of offering proceeds
Applicable □N/A
In RMB0’000
Total
Total Aggreg
amount
amount ate Percent
of
of amount age of
Total Aggreg offering
offering of offering Purpose
amount ate Total proceed
proceed offering proceed and
of amount amount s that
Total Net s the proceed s the wherea
Method offering of of has
Year of offering offering purpose s the purpose bouts of
of proceed offering unused remaine
offering proceed proceed of purpose of unused
offering s used proceed offering d
s s which of which offering
in the s proceed unused
was which has proceed
current already s for
change has been s
period used more
d in the been change
than
current change d
two
period d
years
Continu
Private
289,225 286,395 9,468.9 270,604 22,449. 84,015. 16,613. ous
2020 placem 29.05%
.58 .39 7 .33 78 25 54 investm
ent
ent
289,225 286,395 9,468.9 270,604 22,449. 84,015. 16,613.
Total -- 29.05% -- 0
.58 .39 7 .33 78 25 54
Description of the overall use of offering proceeds
With the approval of the CSRC under the Reply on Approval of Private Placement of Shares by Suzhou Dongshan Precision
Manufacturing Co., Ltd. (Zheng Jian Xu Ke [2020] No. 980), we privately offered 103,294,850 RMB-denominated ordinary A-shares
at the offer price of RMB28.00 per share to specified investors through the lead underwriter Tianfeng Securities Co., Ltd., and raised
RMB2,892,255,800 in total, and after deduction of the underwriter’s fee and sponsor’s fee totaling RMB22,169,800 (exclusive of tax),
the balance of the offering proceeds, RMB2868755800, was remitted to our supervisory account of offering proceeds by Tianfeng
Securities Co., Ltd. on July 13, 2020. After the deduction of the accountant’s fee, attorney’s fee, legal information disclosure fee and
other external costs directly relating to the offering of equity securities, totaling RMB6,132,100 (exclusive of tax), the amount of net
offering proceeds was RMB2863953900 (exclusive of tax). Pan-China Certified Public Accountants LLP verified the receipt of such
offering proceeds and issued the Capital Verification Report (PCCPA Capital Verification [2020] No. 5-9).
(2) Committed investment projects using offering proceeds
Applicable □N/A
In RMB0’000
Aggrega Whether
Progress
te there’s
Whether of Whether
Total amount Date that any
the Total investme the
investme Amount already the Income significa
Committed project committ nt as of project
nt invested invested project earned nt
investment project has been ed the end has
amount in the as of the is ready in the change
and use of over- changed investme of the produce
as current end of for its current in the
raised funds or nt reporting d the
adjusted period the intended period feasibilit
partially amount period desired
(1) reporting use y of the
changed (3) result
period project
=(2)/(1)
(2)
Committed investment project
21
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
400,000 m2 fine
line FPC
80,338.4 80,338.4 79,798.3 January 10,377.9
production and No 99.33% Yes No
8 8 4 5, 2022 9
assembly capacity
expansion project
Ultra-fine circuit
board project of 22,449.7
No 5,845.98 5,845.98 26.04% N/A No
MFLEX 8
Yancheng
Multek 5G high-
speed high-
frequency and 65,958.4 43,508.6
Yes 3,622.99 43,312.7 99.55% 1,678.42 No Yes
high-density PCB 6 8
technology
upgrading project
Multek PCB
production line 72,805.8 72,805.8 71,858.3 April 19,
No 98.70% 4,495.13 Yes No
technology 9 9 3 2023
upgrading project
FPC for new
energy application
and assembly 61,565.4 August
No 61,368.3 99.68% 3,032.61 Yes No
project of 7 24, 2023
MFLEX
Yancheng
Wireless module
production and
construction
project of
70,122.7
Yancheng Yes 8,557.28 8,420.68 98.40% N/A Yes
5
Dongshan
Communication
Technology Co.,
Ltd.
289,225. 289,225. 270,604. 19,584.1
Subtotal -- 9,468.97 -- -- -- --
58 58 33 5
Use of over-raised funds
None
289,225. 289,225. 270,604. 19,584.1
Total -- 9,468.97 -- -- -- --
58 58 33 5
Failure to meet
the scheduled
progress and
produce the
desired result and
reason thereof Affected by the international environment in terms of chip supply, technical support, equipment procurement and market
(please describe prospect, among others in China’s 5G industry, the progress of the 5G project construction in China was slowed down.
on a project-by- In light of other factors such as changes in domestic and international economic environment and market demand, and
project basis, intensified competition within the industry, etc., the benefit of the “Multek 5G high-speed high-frequency and high-
including the density PCB technology upgrading project” grew slowly and fell short of expectation. Therefore, during the reporting
reason for period, we changed the “Multek 5G high-speed high-frequency and high-density PCB technology upgrading project”
selecting N/A in into the “ultra-fine circuit board project of MFLEX Yancheng”.
the column
“whether the
project has
produced the
desired result”)
22
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
1. Under the effect of changes in the macroeconomic environment and the international environment in recent years,
the progress of the 5G project construction in China was slowed down and failed to meet the expectation. In light of
other factors such as changes in domestic and international economic environment and market demand, and intensified
competition within the industry, etc., the progress of investment in the original “Multek 5G high-speed high-frequency
and high-density PCB technology upgrading project” was slow. Therefore, in order to improve the efficient use of
offering proceeds, we have decided to cease the production and construction of such change, and to change the same
Reason for into the “ultra-fine circuit board project of MFLEX Yancheng”.
significant change 2. Due to the bottleneck in the development of 5G communication, weak downstream demands and other unfavorable
in the feasibility factors, the progress of the “Wireless module production and construction project of Yancheng Dongshan
of the project Communication Technology Co., Ltd.” fell short of expectations. In light of the rapid development of the new energy
vehicle market and rising demands of the on-board FPC market, as a component supplier for the international leading
new energy vehicle manufacturers, we need to further improve our industrial deployment, capability to serve the
downstream customers, and overall competencies. Therefore, in order to ensure the efficient use of offering proceeds,
we have decided to change the “wireless module production and construction project of Yancheng Dongshan
Communication Technology Co., Ltd.” into the “FPC for new energy application and assembly project of MFLEX
Yancheng”.
Amount and use
of over-raised
offering proceeds N/A
and progress of
use thereof
Change in the
place of the
N/A
committed
investment project
Adjustment of the
method of
implementation of N/A
the committed
investment project
Funds pre- Applicable
invested in the At the 3rd meeting of the 5th Board of Directors, the Proposal for Replacing the Self-raised Funds Pre-invested in the
investment project Committed Investment Projects with the Idle Offering Proceeds was considered and adopted, approving the replacement
and replacement of the funds of RMB 399,591,400 pre-invested in the committed investment projects with the offering proceeds. The
thereof replacement was completed in 2020.
Applicable
Temporary
At the 2nd meeting of the 6th Board of Directors held on June 12, 2023, the Proposal for Temporary Replenishment of
replenishment of
Working Capital with the Idle Offering Proceeds was considered and adopted, approving the temporary replenishment
working capital
of working capital with the idle offering proceeds up to RMB250 million. As of June 30, 2024, we have returned all of
with the idle
the above idle offering proceeds temporarily replenishing the working capital to the dedicated account of offering
offering proceeds
proceeds.
Applicable
The “400,000 m2 fine line FPC production and assembly capacity expansion project”, the “Multek PCB production line
Amount of technology upgrading project” and the “FPC for new energy application and assembly project of MFLEX Yancheng”
surplus offering have been completed with the investment as committed. RMB6,651,800, or 0.23%, of the offering proceedings
proceeds and designated for these projects were left unused. Such surplus was achieved because we followed the principle of
reason thereof reasonableness, economy and effectiveness, used the offering proceeds prudently, enhanced control, supervision and
management of all kinds of expenses, reasonably allocated and optimized all kinds of resources, and reasonably reduced
the relevant costs and expenses. In addition, we earned certain interest income from the offering proceeds.
Purpose and
As of June 30, 2024, the amount of unused offering proceeds was RMB172,787,200, of which, RMB166,135,400 was
whereabouts of
deposited in the dedicated account of offering proceeds, and the surplus offering proceeds of RMB6,651,800 after the
unused offering
completion of projects used to permanently replenish the working capital.
proceeds
Problems or other
situations in the None
use and disclosure
23
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
of offering
proceeds
(3) Changes in the committed investment projects using offering proceeds
Applicable □N/A
In RMB0’000
Amount
Whether
of Aggregat Progress Whether
Date that there’s
offering e amount of the
Amount the Income any
proceeds already investmen project
Original invested project is earned in significan
New to be invested t as of the has
committe in the ready for the t change
project invested as of the end of the produced
d project current its current in the
in the end of the reporting the
period intended period feasibility
new reporting period (3) desired
use of the
project period (2) =(2)/(1) result
project
(1)
Multek
5G high-
speed
Ultra-fine high-
circuit frequency
board and high-
22,449.78 5,845.98 5,845.98 26.04% N/A No
project of density
MFLEX PCB
Yancheng technolog
y
upgrading
project
Wireless
module
productio
FPC for
n and
new
constructi
energy
on project
applicatio
of August
n and 61,565.47 0 61,368.3 99.68% 3,032.61 Yes No
Yancheng 24, 2023
assembly
Dongshan
project of
Communi
MFLEX
cation
Yancheng
Technolo
gy Co.,
Ltd.
Total -- 84,015.25 5,845.98 67,214.28 -- -- 3,032.61 -- --
1. Regarding the original “Multek 5G high-speed high-frequency and high-density PCB
technology upgrading project” which was mainly intended for the field of mobile
communication, we arranged the investment schedule based on market demand, with the
amount of input primarily used for equipment purchase and installation. The related assets
Reason for change, decision-making
can still be used in the future, in furtherance of our overall automation level and production
procedures and information
efficiency. Meanwhile, the project had come into service and generated investment benefits.
disclosure (please describe on a
However, due to the impact of the international environment on chip supply, technical
project-by-project basis)
support, equipment procurement, and market prospects of China’s 5G industry, etc., the
progress of 5G project construction in China was slowed down. In light of other factors
such as changes in domestic and international economic environment and market demand,
as well as intensified competition within the industry, the investment in the project showed
24
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
slow progress. Therefore, we have decided to change such project into the “ultra-fine circuit
board project of MFLEX Yancheng”. The corresponding change in the use of offering
proceeds was approved at the 9th meeting of the 6th Board of Directors and the 7th meeting
of the 6th Board of Supervisors held on April 16, 2024, and the annual general meeting in
2023 held on May 10, 2024, which has been disclosed on www.cninfo.com.cn, and our
designated newspapers for information disclosure.
2. Due to the bottleneck in the development of 5G communication, weak downstream
demands and other unfavorable factors, the progress of the “wireless module production
and construction project of Yancheng Dongshan Communication Technology Co., Ltd.” fell
short of expectations. In light of the rapid development of the new energy vehicle market
and rising demands of the on-board FPC market, as a component supplier for the
international leading new energy vehicle manufacturers, we need to further improve our
industrial deployment, capability to serve the downstream customers, and overall
competencies. Therefore, in order to ensure the efficient use of offering proceeds, we have
decided to change the “wireless module production and construction project of Yancheng
Dongshan Communication Technology Co., Ltd.” into the “FPC for new energy application
and assembly project of MFLEX Yancheng”. Such change in the use of offering proceeds
was approved at the 19th meeting of the 5th Board of Directors and the 13th meeting of the
5th Board of Supervisors held on February 17, 2022, and the first extraordinary general
meeting in 2022 held on March 8, 2022, and disclosed on www.cninfo.com.cn, and our
designated newspapers for information disclosure.
Failure to meet the scheduled
progress and produce the desired
result and reason thereof (please N/A
describe on a project-by-project
basis)
Reason for significant change in the
N/A
feasibility of the project
VII. Sale of Material Assets and Equities
VIII. Analysis of Major Subsidiaries and Associates
Applicable □N/A
Major subsidiaries and associates representing more than 10% of the net profit of the Company:
In RMB
Type
Company of Registered Operating Operating
Primary business Total assets Net assets Net profit
name compa capital revenue profit
ny
Design, R&D,
sale and after-
Dragon Subsid sale services in USD113,45 23,286,696 7,012,087, 17,150,298 607,153,06 504,108,04
Holdings iary respect of PCBs; 0,100 ,469.94 155.34 ,346.87 6.63 2.99
investment
holding
R&D, sale and
after-sale services
Multek Subsid in respect of USD218,2 4,591,758, 2,680,181, 1,936,419, 77,877,604 64,491,255
Group iary PCBs; 48,360.27 824.18 701.78 646.79 .47 .47
investment
holding
25
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
IX. Structured Entities Controlled by the Company
□Applicable N/A
X. Risk Exposures to the Company and Countermeasures
1. Risk of concentration of customers
We have good customer resources. Our major customers are well-known domestic and international companies in the relevant
industries that are of sound credit and have established stable cooperation relationships with us. However, our top 5 customers constitute
a large proportion of our total sales revenue, which may further increase in the future. Any material adverse change in the business
situation of such major customers could have an adverse effect on our business.
We will give full play to our advantages, make active deployment in the new energy and other emerging industries and strive to develop
new customers, in order to mitigate the adverse effect of the relative concentration of customers on us.
2. Risks brought by rapid technology upgrading of the industry
Our business covers PCB, photoelectric display, precision manufacturing and other technology-intensive industries, and our products
are widely applied in consumer electronics, new energy vehicles, communication equipment, industrial equipment, and other fields, all
of which are characterized by rapid technology upgrading. If our R&D and manufacturing capabilities fail to keep pace with the rapid
technology upgrading of downstream products, our products and technologies may become obsolete.
We will follow up on the new technologies and new processes of the industry from the strategic perspective and strive to keep our
technologies and processes at the advanced level through continuous and effective R&D funding.
3. Risk of changes in the global trade environment
Our major customers include some well-known international companies, and our export sales have grown steadily for years. Though
China has established good economic and trade cooperation relationships with major countries in the world, the increasingly fierce
regional frictions in recent years may cause uncertainties in the applicable trade policies, which could affect our international trade.
We will follow up on the development of international trade frictions, strengthen communication with our customers, and continue to
foster our competencies and customer adhesion.
4. Risk of market exploitation
We are a strong R&D and manufacturing enterprise in the fields of PCB, photoelectric display and precision manufacturing. Due to
our stable product quality and efficient customer services, we have remarkable competencies, and are able to provide the downstream
enterprises with “one-stop” products and services, and satisfy their demands for systemic manufacturing solutions. However, our
downstream industries are characterized by rapid upgrading and rapid changes in the preferences of consumers, among others. If our
26
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
major customers are at a disadvantage in the market, or we are unable to satisfy the demands of customers or fail to acquire new
customers, the sales and margin rate of our products may decrease.
We will continue to increase R&D funding, optimize our product mix and process structure, enhance our competencies, and actively
cope with market competition.
5. Environmental risk
In our production, the electroplating, etching and other processes produce wastewater, waste gases and solid wastes, and therefore are
subject to strict requirements for environmental protection. We cannot exclude the possibility that environmental incidents may happen
during our production due to negligence in management, force majeure or otherwise. If we meet with any environmental incident, that
cause pollution to the environment or violates the applicable environmental protection laws and regulations, our reputation and
operations could be adversely affected. Along with the vigorous development of a green and low-carbon circular economic
development system and improvement of people’s living standard in China, and increasingly enhanced awareness of environmental
protection of people, the country attaches increasingly great importance to environmental protection. If the country puts forward stricter
environmental protection requirements, we may need to increase the funding for environmental protection, which would increase our
environmental protection costs and in turn affect our results.
We have set the building of an environment-friendly enterprise as a key goal of our sustainable development strategy, attached great
importance to and increased the funding for environmental protection in our production and operation, actively responded to the
requirements of the latest environmental protection laws and regulations, enhanced environmental protection training and employees’
awareness of environmental protection, taken control measures at source, established and improved the environmental management
system, and implemented the requirements related to environmental safety in all of our key business activities, to reduce the
environmental risks.
6. Foreign exchange risk
Export sales constitute a large proportion of our total sales revenue. Because our day-to-day operation involves transactions in USD
and other foreign currencies, and our consolidated accounts are presented in RMB, the changes in the exchange rate between RMB and
USD may cause foreign exchange risk to our future operations.
We will pay close attention to the changes in the relevant foreign exchange rates, strive to control the exposure to foreign exchange
risk at a reasonable level, and hedge or otherwise reduce exposure to such risk.
7. Quality control risk of auto parts products
The new energy automobile industry in which we are engaged is subject to a strict quality management and product certification system.
Vehicle manufacturers have extremely high requirements for the quality and safety of auto parts products, taking product quality as an
important indicator for them to choose auto parts suppliers.
27
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
In response, we will improve the construction of a quality management system, strictly control the procurement of raw materials,
production process and product testing, and establish a sound traceability mechanism, for the sake of timely recall and handling in case
of problems. Meanwhile, we will have closer cooperation with and strengthen supervision over suppliers to ensure stable and reliable
quality of auto parts.
XI. Implementation of the Action Plan to Improve the Quality and Returns
Whether the Company has disclosed its action plan announcement to improve the quality and returns?
Yes □No
I. Focus on the primary business, and adhere to the “two-wheel drive” strategy
For decades, we have focused on expanding and optimizing our primary business through internal development and acquisitions, and
gradually formed three industrial segments, namely PCB, photoelectric display and precision manufacturing. Our products are widely
used in consumer electronics, new energy vehicles, communication equipment, industrial equipment, AI, servers, medical appliances
and other fields. In recent years, leveraging our technical advantages accumulated in the fields of consumer electronics and
communication equipment, we have actively explored the wholly new field of new energy vehicles with a view to making contributions
to the green transition of the global energy structure, and built an industrial development pattern with consumer electronics and new
energy vehicle business at the core.
In the field of consumer electronics, we have closely followed the steps of leading customers in strategic innovation, actively expanded
global deployment while maintaining superior products, and through the improvement of technical capabilities, increased the
application of our PCB products in emerging fields. In the field of new energy vehicles, in response to the demands of our customers,
we have actively promoted the construction of domestic and overseas production bases, completed the acquisition of Suzhou JDI and
US Aranda, continuously expanded our production lines, and strived to provide the customers with one-stop products and services.
Between January and September 2023, we recorded an operating revenue of RMB22.501 billion and a net profit of RMB1.333 billion
attributable to the shareholders of the Listed Company, maintaining strong profitability; we also continuously optimized the structure
of our core business, recorded a sales revenue of about RMB4.5 billion from the new energy business, and further increased the
proportion of products with higher growth potentials in our operating revenues and profits. In the future, in order to promote our long-
term and high-quality development and implement our corporate strategy to focus on the two key fields of consumer electronics and
new energy vehicles, we will further increase the production capacity of high-end PCB products and precision structural component
products, strive to satisfy the customer demands for supply chain management and innovative products in the fields of consumer
electronics and new energy vehicles, supply core products to key customers to seize the opportunities for rapid growth, continuously
create values for our customers, and actively enhance our core competencies.
28
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
II. Persist in innovation-driven development, and continuously promote digital transition
We have adhered to long-termism, promoted innovation-driven development, closely followed the frontier technologies, continuously
increased R&D funding, and improved our R&D system; through participation in the preliminary development projects of leading
customers of the industry, enhanced technical innovation, improved production technologies and process capabilities, and continuously
cultivated new quality productive forces, to promote our high-quality development; further explored the frontier manufacturing
technologies for core components in the field of intelligent interconnection, to lay a solid foundation for serving the future innovative
business fields, and further respond to customer demands; continuously promoted the integration of informatization and
industrialization, focused on the application of cutting-edge big data and AI technologies, vigorously promoted intelligent
manufacturing and built smart factories. In 2023, some of our subsidiaries were named “National Model Factory for Intelligent
Manufacturing” and “5G Factory of Jiangsu”, and awarded other honorary titles. While promoting the integration of informatization
and industrialization, we have also improved system and data governance, fully aroused the initiative and creativity of all organizations,
established and improved a scientific and efficient management system, and enhanced our core competencies in an all-around way
from the system and organization levels.
III. Enhance corporate governance and improve the level of operational compliance
We have continuously consolidated the basis of corporate governance, actively improved the level of corporate governance, and
promoted the sound operation of general meetings of shareholders, board of directors, board of supervisors and management;
established and improved the internal control system, enhanced risk management, and improved the decision-making level, to enter
into a virtuous circle in our development, and vigorously protect the legitimate rights and interests of our shareholders. Our Board of
Directors has seriously implemented all resolutions of shareholders, and faithfully performed their duty of loyalty. Our management
has seriously performed all duties assigned by the Board of Directors, further improved their management capabilities, and continuously
enhanced our core competencies, profitability and overall risk management capabilities, to achieve sustainable development and strive
to maximize returns to our shareholders.
IV. Put investors first, and attach great importance to returns to investors
(I) Attach great importance to the quality of information disclosures. We have strictly complied with the information disclosure
principles of “truthfulness, accuracy, completeness, timeliness and fairness”, strived to satisfy the demands of investors, continuously
improved the quality and effectiveness of information disclosures, and disclosed complete information related to our business and other
affairs at multiple layers and from multiple perspectives. In the future, we will, taking into account our actual business situations and
development characteristics, perform our information disclosure obligations with high quality, continuously optimize the ways to
disclose our business information, proactively disclose useful information for the investors to make their investment decisions,
29
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
emphasize on the disclosure of important and well-targeted information, enhance the disclosure of critical information related to
industrial competition, business operation and risk factors, and reduce the disclosure of redundant information.
(II) Enhance communications with investors. We have attached great importance to the management of investor relations, continuously
improved the working mechanisms and content of the management of investor relations, through performance briefings,
teleconferences, on-site visits and investigations or otherwise, deepened the investors’ understanding of our production and business
situations and other activities, and enhanced their acceptance of and confidence in us, to achieve the objectives of respecting investors,
offering returns to investors and protecting investors. In the future, we will continue to build the ecosystem for active interactions with
investors, provide conveniences for all kinds of investors to participate in the decision-making on material matters, and create long-
term values for investors.
(III) Attach great importance to returns to investors. While focusing on our own development, we have attached great importance to
returns to investors, and always put investors first. Since our listing, we have distributed cash dividends in strict accordance with the
profit distribution policy set forth in our Articles of Association and shared our development results with the investors. In the future,
we will maintain a dynamic balance among our development, performance growth and returns to shareholders, according to the profit
distribution principle taking into account our development stage, seriously implement the mechanism of “long-term, stable and
sustainable” returns to shareholders, and continuously enhance the investors’ sense of gain.
We will remain true to our original aspiration, consolidate the foundation of our enterprise, keep pace with the times, and start a new
journey. We will always bear in mind returns to shareholders, put investors first, actively implement the action plan to improve the
quality and returns, strive to improve our operating quality and investment value, effectively enhance the investors’ sense of gain, and
make positive contributions to the stabilization of market and confidence.
30
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Section IV Corporate Governance
I. Particulars of Annual General Meeting and Extraordinary General Meetings Held during
the Reporting Period
1. General meetings held during the reporting period
Percentage
of investors Resolution of the
Session Type of meeting Date of meeting Disclosure date
attending meeting
the meeting
Extraordinary Announcement of the
general meeting resolutions of the 1st
1st extraordinary
extraordinary general
general meeting in 37.43% January 23, 2024 January 24, 2024
meeting in 2024
2024
(Announcement No.:
2024-007)
Extraordinary Announcement of the
general meeting resolutions of the 2nd
2nd extraordinary
extraordinary general
general meeting in 42.51% March 29, 2024 March 30, 2024
meeting in 2024
2024
(Announcement No.:
2024-024)
Annual general Announcement of the
meeting resolutions of the 2023
2023 annual
40.32% May 10, 2024 May 11, 2024 annual general meeting
general meeting
(Announcement No.:
2024-046)
2. Convening of extraordinary general meetings of shareholders at the request of preferred shareholders
with restituted voting rights
□Applicable N/A
II. Changes in Directors, Supervisors and Senior Executives
□Applicable N/A
There has been no change in our directors, supervisors and senior executives during the reporting period, as detailed in the Annual
Report 2023.
III. Profit Distribution and Capitalization of Capital Reserve during the Reporting Period
□Applicable N/A
We have no plan to pay cash dividends, distribute bonus shares or convert any capital reserve to the share capital during the reporting
period.
IV. Share Incentive Plans, Employee Stock Ownership Plans or Other Employee Incentives
Applicable □N/A
31
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
1. Share incentives
2. Employee stock ownership plans (ESOPs)
Applicable □N/A
Effective ESOPs in the reporting period:
No. of Total shares % of total share
Scope of employees Changes Source of funds
employees held capital
Legal remunerations of
Key officers and technical personnel of the Company the employees, self-raised
or its subsidiaries, excluding directors, supervisors and funds or otherwise
308 1,366,120 None 0.08%
senior executives of the Company (2022 ESOP for key permitted by the
officers and technical personnel)1 applicable laws and
administrative regulations
Legal remunerations of
Certain employees who do full-time jobs for, receive
the employees, self-raised
salaries from and have valid employment contracts
funds or otherwise
with the Company or its controlled subsidiaries, 366 4,847,178 None 0.28%
permitted by the
excluding directors, supervisors and senior executives
applicable laws and
of the Company (2022 second ESOP) 2
administrative regulations
Note:
1. As of the end of the reporting period, the vesting period for the 2022 ESOP for key officers and technical personnel has expired, under which, the first
installment of shares, representing 50% of the total shares granted thereunder were already vested, and the second installment of shares, representing 50%
of the total shares granted thereunder, has entered the vesting period.
2. As of the end of the reporting period, the lock-up period for the 2022 second ESOP was expired on April 25, 2024.
Shares held by the directors, supervisors and senior executives under the ESOPs during the reporting period: None
Changes in asset manager during the reporting period:
□Applicable N/A
Changes in equity due to disposal of shares by the holders or otherwise during the reporting period:
□ Applicable N/A
Exercise of shareholder rights during the reporting period: None.
Other information related to the ESOPs during the reporting period and the relevant explanation:
□ Applicable N/A
Changes in the members of the ESOP management committee during the reporting period:
□ Applicable N/A
The financial effect of the ESOPs on the Listed Company during the reporting period and the relevant accounting treatment:
□ Applicable N/A
Termination of the ESOPs during the reporting period:
□Applicable N/A
Other information: None
3. Other employee incentives
□Applicable N/A
32
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Section V Environmental and Social Responsibilities
I. Material Environmental Issues
Whether the Listed Company and its subsidiaries have been identified as major polluters by the environmental protection authorities?
Yes □ No
Policies and industrial standards related to environmental protection:
During the reporting period, we and our subsidiaries identified as major polluters have strictly complied with the Environmental
Protection Law of the People’s Republic of China, the Law of the People’s Republic of China on Prevention and Control of Atmospheric
Pollution, the Law of the People’s Republic of China on Prevention and Control of Water Pollution, the Law of the People’s Republic
of China on Prevention and Control of Environmental Pollution by Solid Wastes, the Law of the People’s Republic of China on
Prevention and Control of Noise Pollution, the Law of the People’s Republic of China on Prevention and Control of Soil Pollution, the
Law of the People’s Republic of China on Environmental Impact Assessment, the Work Safety Law of the People’s Republic of China,
the Fire Protection Law of the People’s Republic of China and other laws and regulations related to environmental protection, and
implemented the Emission Standard for Odor Pollutants (GB14554-93), the Integrated Emission Standard for Air Pollutants
(DB32/4041-2021), the Emission Standard of Air Pollutants for Boilers (GB13271-2014), the Emission Standard of Air Pollutants for
Industrial Furnaces and Kilns (DB32/3728-2021), the Standard for Pollution Control on Hazardous Waste Storage (GB18597-2001),
the Emission Standard for Pollutants from Electroplating (GB21900-2008), the Emission Standard for Industrial Enterprises Noise at
Boundary (GB12348-2008), the Standard for Fugitive Emission of Volatile Organic Compounds (GB37822-2019), the Discharge
Standard of Water Pollutants for Electronic Industry (GB39731-2020), the Integrated Wastewater Discharge Standard (GB8978-1996),
the Wastewater Quality Standards for Discharge to Municipal Sewers (GB/T31962-2015), the Standard for Pollution Control on the
Non-Hazardous Industrial Solid Waste Storage and Landfill (GB18599-2020) and other national and industrial standards related to
environmental protection.
Environmental Permits
Environmental permits held by the Company and its subsidiaries identified as major polluters during the reporting period:
Company name No. Validity period
Suzhou Dongshan Precision
91320500703719732P001U From January 15, 2023, to January 14, 2028
Manufacturing Co., Ltd.
Multek Technology (Zhuhai) Co., Ltd. 914404007718663989001X From November 28, 2022, to November 27, 2027
Multek Industries Limited 91440400714732019J001W From August 17, 2023, to August 16, 2028
Multek Zhuhai Limited 9144040061749918XX001Y From April 12, 2022, to April 11, 2027
33
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Multek China Limited 914404006182559377001W From December 20, 2021, to December 19, 2026
Yancheng Dongshan Precision
91320903MA1P7PG85D001X From October 8, 2023, to October 7, 2028
Manufacturing Co., Ltd.
MFLEX Yancheng Co., Ltd. 91320903MA1P7PLE6D001T From October 8, 2023, to October 7, 2028
MFLEX Suzhou Co., Ltd. 91320500738277671B001V From August 14, 2023, to August 13, 2028
MFLEX Suzhou Co., Ltd. 91320500738277671B002U From January 31, 2022, to January 30, 2027
Suzhou JDI Electronics Inc. 913205056082373800001C From June 27, 2022, to June 26, 2027
Industrial discharge standards and the pollutants discharged in our production and operating activities:
Category Descriptio
Approved
of main n of main Location Applicable
No. of Pollutant Total total
Company pollutants pollutants Method of of pollutant Excessive
discharge concentrat volume volume
name and and discharge discharge discharge discharge
outlets ion discharged dischargea
specific specific outlets standard
ble
pollutants pollutants
Organized Roof of 2.03mg/m
DSBJ Waste gas NMHC 1 60mg/m3 0.125370 / No
discharge building A 3
Organized Roof of 4.01mg/m
DSBJ Waste gas NMHC 1 50mg/m3 0.296175 / No
discharge building F 3
Organized Roof of
DSBJ Waste gas Particles 1 2.4mg/m3 20mg/m3 0.148221 / No
discharge building A
Organized Roof of
DSBJ Waste gas Particles 1 2.5mg/m3 10mg/m3 0.184648 / No
discharge building F
Tin and its Roof of
Organized
DSBJ Waste gas compound 2 building ND 5mg/m3 / / No
discharge
s A/F
Organized Roof of 1.76mg/m
DSBJ Waste gas Acetone 1 / 0.129992 / No
discharge building F 3
Organized Roof of 0.219mg/
DSBJ Waste gas IPA 1 / 0.016175 / No
discharge building F m3
Organized Roof of
DSBJ Waste gas Particles 3 ND 20mg/m3 / / No
discharge building B
Organized Roof of
DSBJ Waste gas Fluoride 1 0.3mg/m3 3mg/m3 0.000325 / No
discharge building B
Organized Roof of 0.67mg/m
DSBJ Waste gas NMHC 1 60mg/m3 0.007701 / No
discharge building B 3
Multek
Wastewate
Industries
r from the Continuou Within
and
general COD s 1 factory 21.3mg/L 160mg/L 17.04t 242.36t No
Multek
discharge discharge boundary
Technolog
outlet
y
Multek
Wastewate
Industries
r from the Continuou Within
and Ammonia
general s 1 factory 7.48mg/L 30mg/L 6.03t 45.44t No
Multek nitrogen
discharge discharge boundary
Technolog
outlet
y
Multek
Wastewate
Industries
r from the Continuou Within
and Total 27.78
general s 1 factory 40mg/L 22.19t 60.59t No
Multek nitrogen mg/L
discharge discharge boundary
Technolog
outlet
y
Multek Wastewate Intermitte Within
Total 0.11
Industries r from nt 1 factory 0.5mg/L 0.000869t 0.055t No
nickel mg/L
and Class I discharge boundary
34
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Multek waste
Technolog discharge
y outlet
Wastewate
r from the Continuou Within
Multek
general COD s 1 factory 14.5mg/L 160mg/L 1.09t 33.643t No
Zhuhai
discharge discharge boundary
outlet
Wastewate
r from the Continuou Within
Multek Ammonia 1.37
general s 1 factory 30mg/L 0.1t 6.308t No
Zhuhai nitrogen mg/L
discharge discharge boundary
outlet
Wastewate
r from the Continuou Within
Multek Total 9.3
general s 1 factory 40mg/L 0.65t 28.6748t No
Zhuhai nitrogen mg/L
discharge discharge boundary
outlet
Wastewate
r from
Intermitte Within
Multek Class I Total 0.003mg/ 0.0000048
nt 1 factory 0.5mg/L 0.358t No
Zhuhai waste nickel L t
discharge boundary
discharge
outlet
Wastewate
r from the Continuou Within
Multek
general COD s 1 factory 25.5mg/L 160mg/L 4.95t 216.372t No
China
discharge discharge boundary
outlet
Wastewate
r from the Continuou Within
Multek Ammonia
general s 1 factory 8.55mg/L 30mg/L 1.58t 40.5697t No
China nitrogen
discharge discharge boundary
outlet
Wastewate
r from the Continuou Within
Multek Total 18.46mg/
general s 1 factory 40mg/L 3.4t 54.093t No
China nitrogen L
discharge discharge boundary
outlet
Wastewate
r from
Intermitte Within
Multek Class I Total
nt 1 factory 0mg/L 0.5mg/L 0t 1.3523t No
China waste nickel
discharge boundary
discharge
outlet
Wastewate
r from
Intermitte Within
Multek Class I Total
nt 1 factory 0.03mg/L 0.1mg/L 0.00001t 0.270465t No
China waste silver
discharge boundary
discharge
outlet
General
discharge
MFLEX Wastewate Total Indirect
1 outlet at 17.2mg/L 40mg/L 11.02t 84.183t No
Yancheng r nitrogen discharge
east of the
factory
MFLEX Wastewate Ammonia Indirect 1 General 1mg/L 35mg/L 1.287t 75.729t No
35
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Yancheng r nitrogen discharge discharge
outlet at
east of the
factory
General
discharge
MFLEX Wastewate Indirect
COD 1 outlet at 39mg/L 500mg/L 20t 844.263t No
Yancheng r discharge
east of the
factory
General
Total discharge
MFLEX Wastewate Indirect
phosphoru 1 outlet at 0.33mg/L 3.5mg/L 0.22t 7.744t No
Yancheng r discharge
s east of the
factory
Facility
discharge
MFLEX Wastewate Indirect
Nickel 1 outlet at 0.01mg/L 0.5mg/L 0.018t 0.085t No
Yancheng r discharge
east of the
factory
General
wastewate
r discharge
Yancheng Wastewate Indirect outlet at 85.39mg/ 4.1928006
COD 1 500mg/L 232.467t No
Dongshan r discharge the L 27t
southeast
of the
factory
General
wastewate
r discharge
Yancheng Wastewate Ammonia Indirect outlet at 0.2163953
1 5.14mg/L 35mg/L 14.058t No
Dongshan r nitrogen discharge the 15t
southeast
of the
factory
General
wastewate
r discharge
Total
Yancheng Wastewate Indirect outlet at 0.0101712
phosphoru 1 0.20mg/L 3.5mg/L 1.743t No
Dongshan r discharge the 57t
s
southeast
of the
factory
General
wastewate
r discharge
Yancheng Wastewate Total Indirect outlet at 18.08mg/ 0.9027907
1 40mg/L 19.054t No
Dongshan r nitrogen discharge the L 8t
southeast
of the
factory
General
wastewate
Yancheng Wastewate Total Indirect r discharge 0.1985mg/ 0.0002300
1 0.3mg/L 0.022t No
Dongshan r silver discharge outlet at L 22t
the
southeast
36
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
of the
factory
General
wastewate
r discharge
Yancheng Wastewate Total Indirect outlet at 0.057mg/ 0.0001910
1 0.5mg/L 0.033t No
Dongshan r nickel discharge the L 88t
southeast
of the
factory
Roof of
Yancheng Organized
Waste gas VOCs 6 buildings 2.6 mg/m3 60mg/m3 1.126t 12.04t No
Dongshan discharge
4# and 5#
Wastewate
r from the Continuou Within
MFLEX 22.924mg/
general COD s 1 factory 500mg/L 18.661t 471.035t No
Suzhou L
discharge discharge boundary
outlet
Wastewate
r from the Continuou Within
MFLEX Ammonia 0.381mg/
general s 1 factory 25mg/L 0.31t 26.020t No
Suzhou nitrogen L
discharge discharge boundary
outlet
Wastewate
r from the Continuou Within
MFLEX Total 0.220mg/
general s 1 factory 2.0mg/L 0.179t 0.9405t No
Suzhou copper L
discharge discharge boundary
outlet
Wastewate
r from
Continuou Within
MFLEX Class I Total 0.013mg/
s 1 factory 0.5mg/L 0.011t 0.057t No
Suzhou waste nickel L
discharge boundary
discharge
outlet
Wastewate
r from the Continuou Within
MFLEX
general COD s 1 factory 30mg/L 500mg/L 1.591t 92.893t No
Suzhou
discharge discharge boundary
outlet
Wastewate
r from the Continuou Within
MFLEX Ammonia
general s 1 factory 10.5mg/L 30mg/L 0.557t 7.963t No
Suzhou nitrogen
discharge discharge boundary
outlet
Treatment of pollutants: With respect to the wastewater, waste gas, solid wastes and other wastes generated during our production, we
have proper pollution treatment facilities in place, which are operated and maintained by ourselves or the service providers engaged
by us. We designate special personnel to monitor the operation of equipment and discharge of pollutants and maintain and repair the
equipment and facilities on a regular basis, to ensure the discharge and disposal of pollutants in accordance with the applicable standards
and regulations. Solid wastes generated during production are treated pursuant to relevant laws and regulations. With these efforts, we
seek to minimize the impact of pollutants from our production and operation on the environment. During the reporting period, our
discharge of pollutants complied with the applicable standards and regulations.
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Environmental emergency response plans: We have developed environmental emergency response plans in accordance with the
National Environmental Emergency Response Plan, filed the same with the local ecological and environmental protection authority,
and carried out exercises on a regular basis, to improve our capability to respond to environmental emergencies, and reduce harm to
the environment and impact on the society.
Expenditures on environmental governance and protection, and payment of environmental protection tax: We have made continuous
investments in environmental governance and protection, regularly maintained the waste gas, wastewater, noise and solid waste
treatment and other environmental protection facilities to ensure their effective operation, and discharged of all kinds of pollutants in
conformity with the applicable standards, in addition to which, we have paid environmental protection tax on time in accordance with
relevant provisions of the Environmental Protection Tax Law of the People’s Republic of China, to promote our sustainable
development.
Environmental self-monitoring plans: We have developed environmental self-monitoring plans in accordance with the applicable laws
and regulations, and installed automatic monitoring equipment or engaged qualified third-party inspection institutions to monitor the
wastewater, waste gas, noise and other pollutants on a regular basis. During the reporting period, the results of our environmental
monitoring complied with the applicable standards and regulations.
Administrative penalties imposed on the Company due to environmental issues during the reporting period: None
Other environmental information that should be disclosed: None
Measures taken for reducing carbon emission during the reporting period and their effect:
Applicable □N/A
During the reporting period, we have actively conducted energy-saving management, reducing energy consumption and carbon
emissions by promoting energy-saving projects, optimizing and renovating high-energy consumption facilities and equipment, etc.
II. Social Responsibility
During the reporting period, while maintaining steady growth and generating economic and social value, we have actively fulfilled our
social responsibilities, continuing to channel resources into charitable giving, social welfare initiatives, and other philanthropic
endeavors, to give back to the society.
38
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Section VI Significant Matters
1. Covenants made by the actual controllers, shareholders, affiliates and acquirer of the
Company, the Company itself and other related parties that have been fulfilled during the
reporting period or that fail to be fulfilled on time as of the end of the reporting period
Applicable □N/A
Time Validity
Background Covenanto Type of of period of Status of
Content of covenant
of covenant r covenant covena the fulfillment
nt covenant
Each of the shareholders YUAN Yongfeng and
YUAN Yonggang, as director and senior executive
As of the
of the Company, covenants that so long as I remain
end of the
Covenant a director and senior executive of the Company, I
YUAN Covenants reporting
relating to will not transfer more than 25% of the total shares
Yongfeng related to April Permane period, the
initial public held by me in the Company each year; and if I cease
and restrictions 9, ntly covenantor
offering or to be a director and senior executive of the Company,
YUAN on the sale 2010 binding s have
subsequent I will not transfer any shares held by me in the
Yonggang of shares complied
fundraisings Company within half a year, and will not transfer
with such
more than 50% of the total shares held by me in the
covenants.
Company through the stock exchange within 12
months thereafter.
Covenants As of the
YUAN related to end of the
Covenant Covenants related to horizontal competition: Each of
Fugen, horizontal reporting
relating to the shareholders YUAN Yongfeng and YUAN
YUAN competition, April Permane period, the
initial public Yonggang covenants that I will not, directly or
Yongfeng related-party 9, ntly covenantor
offering or indirectly, engage in any business in competition
and transactions 2010 binding s have
subsequent with the business actually conducted by the
YUAN and complied
fundraisings Company.
Yonggang occupation with such
of funds covenants.
To ensure the effective implementation of the
remedial measures against dilution of earnings to be
taken by the Company, each of the controlling
shareholders and actual controllers of the Company
covenants that: (i) I will not interfere with the
management and operation of the Company beyond
As of the
my powers, or infringe on the interest of the
YUAN end of the
Covenant Company; (ii) from the date of this Letter of
Fugen, reporting
relating to Undertaking till the completion of this offering, in
YUAN March Permane period, the
initial public Other case of any new regulatory provisions promulgated
Yongfeng 12, ntly covenantor
offering or covenants by the SCRC, the SZSE or other competent
and 2024 binding s have
subsequent securities authorities regarding the remedial
YUAN complied
fundraisings measures against dilution of earnings and related
Yonggang with such
covenants, as a result of which the covenants set
covenants.
forth above no longer comply with such new
provisions, I will make additional covenants in
accordance with such new provisions; and (iii) I will
seriously implement the remedial measures against
dilution of earnings adopted by the Company and
fulfill my covenants in connection therewith, and if
39
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
I breach or refuse to fulfill any covenant set forth
above, accept the penalties or other regulatory
actions that may be imposed or taken by the SCRC,
the SZSE or other competent securities authorities
against me, and indemnify the Company or the
investors for the losses arising therefrom according
to law.
To ensure the effective implementation of the
remedial measures against dilution of earnings to be
taken by the Company, each of the directors and
senior executives of the Company covenants that: (i)
I will not transfer benefits to any other entity or
individual without compensation or on unfair terms,
or otherwise damage the interest of the Company;
(ii) I will exercise self-discipline in consumption in
performing my duties; (iii) I will not use the assets
of the Company to engage in any investment or
consumption activities not in connection with my
duties; (iv) I will link the compensation system
adopted by the Board of Directors or the
YUAN Compensation Committee with the implementation
Yongfeng of the Company’s remedial measures against
and dilution of current earnings; (v) if the Company
As of the
YUAN implements any share incentive plan in the future, I
end of the
Covenant Yonggang, will link the vesting conditions under such share
reporting
relating to ZHAO incentive plan with the implementation of the
March Permane period, the
initial public Xiutian, Other Company’s remedial measures against dilution of
12, ntly covenantor
offering or SHAN covenants current earnings; (vi) from the date of this Letter of
2024 binding s have
subsequent Jianbin, Undertaking till the completion of this offering, in
complied
fundraisings WANG case of any new regulatory provisions promulgated
with such
Xu, MAO by the SCRC, the SZSE or other competent
covenants.
Xiaoyan securities authorities regarding the remedial
and MA measures against dilution of earnings and related
Liqiang covenants, as a result of which the covenants set
forth above no longer comply with such new
provisions, I will make additional covenants in
accordance with such new provisions; and (vii) I will
seriously implement the remedial measures against
dilution of earnings adopted by the Company and
fulfill my covenants in connection therewith, and if
I breach or refuse to fulfill any covenant set forth
above, accept the penalties or other regulatory
actions that may be imposed or taken by the SCRC,
the SZSE or other competent securities authorities
against me, and indemnify the Company or the
investors for the losses arising therefrom according
to law.
Whether the
covenants
have been Yes
fulfilled on
time
If any
covenant
fails to be N/A
fulfilled on
time, please
40
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
explain the
reason and
the relevant
actions to be
taken in
detail
II. Occupation by the Controlling Shareholders and their Affiliates of the Funds of the
Company for Non-Operating Purpose
□Applicable N/A
Our controlling shareholders and their affiliates have not occupied our funds for non-operating purposes during the reporting period.
III. External Guarantees in Violation of the Regulations
□Applicable N/A
We have not provided any external guarantee in violation of the applicable regulations during the reporting period.
IV. Engagement and Termination of Engagement of Accounting Firm
Has the semi-annual financial report been audited?
□Yes No
The semi-annual report has not been audited.
V. Explanation by the Board of Directors and the Board of Supervisors about the Modified
Auditor’s Report Issued by the Accounting Firm for the Reporting Period
□Applicable N/A
VI. Explanation by the Board of Directors about the Modified Auditor’s Report of the
Previous Year
□Applicable N/A
VII. Matters Relating to Bankruptcy and Reorganization
□Applicable N/A
We have not been involved in any bankruptcy or reorganization proceedings during the reporting period.
VIII. Litigation
Material litigation and arbitration proceedings
□Applicable N/A
We have not been involved in any material litigation or arbitration proceedings during the reporting period.
Other litigation proceedings
□Applicable N/A
41
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
IX. Punishments and Rectifications
□Applicable N/A
We have not been involved in any punishment and rectification during the reporting period.
X. Credit Standing of the Company and its Controlling Shareholders and Actual Controllers
□Applicable N/A
XI. Material Related-party Transactions
1. Related-party transactions relating to day-to-day operation
□ Applicable N/A
There has been no related-party transaction relating to day-to-day operation during the reporting period.
2. Related-party transactions involving the acquisition or sale of assets or equities
□ Applicable N/A
There has been no related-party transaction involving the acquisition or sale of assets or equities during the reporting period.
3. Related-party transactions involving joint external investment
□ Applicable N/A
There has been no related-party transaction involving joint external investment during the reporting period.
4. Debts owed by and to related parties
□ Applicable N/A
There has been no debt owed by or to related parties during the reporting period.
5. Dealings with affiliated financial companies
□ Applicable N/A
There has been no deposit, loan, facility or other financial business between us and any of our affiliated financial companies.
6. Dealings with financial companies controlled by the Company and its affiliates
□ Applicable N/A
There has been no deposit, loan, facility or other financial business between any of our controlled financial companies and affiliates.
7. Other material related-party transactions
□ Applicable N/A
There has been no other material related-party transaction during the reporting period.
42
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
XII. Particulars and Performance of Material Contracts
1. Trusteeship, contracting and leases
(1) Trusteeship
□ Applicable N/A
No such case during the reporting period.
(2) Contracting
□ Applicable N/A
No such case during the reporting period.
(3) Leases
□ Applicable N/A
No such case during the reporting period.
2. Material guarantees
Applicable □N/A
In RMB0’000
External guarantees provided by the Company and its subsidiaries (excluding those provided for the subsidiaries)
Disclosu
re date
of
Whether
announc Maximu Counter
Effective Actual Collatera or not
ement of m Type of guarante Term of Whether
date of amount l (if provided
Obligor the amount guarante e (if guarante or not
guarante guarante applicabl for a
maximu guarante e applicabl e expired
e ed e) related
m ed e)
party
amount
guarante
ed
Other
sharehol
ders
have
Suzhou Joint and
provided
Toprun several
equal
Electric 3,000 2,000 liability No Yes
guarante
Equipment guarante
es or
Co., Ltd. e
counter
guarante
es in
proporti
43
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
on to
their
respectiv
e
contribut
ions.
Suzhou
LEGATE
Intelligent 3,000
Equipment
Corp., Ltd.
Other
sharehol
ders
have
provided
equal
guarante
Joint and
Shanghai Fu es or
several
Shan Precision counter
3,000 3,000 liability No Yes
Manufacturing guarante
guarante
Co., Ltd. es in
e
proporti
on to
their
respectiv
e
contribut
ions.
Total amount of
Total amount of external external guarantee
guarantee approved during 9,000 actually provided 5,000
the reporting period (A1) during the reporting
period (A2)
Total amount of
Total amount of external external guarantee
guarantee approved as at actually provided as
9,000 5,000
the end of the reporting at the end of the
period (A3) reporting period
(A4)
Guarantees provided by the Company for its subsidiaries
Disclosu
re date
of
Whether
announc Maximu Effective Counter
Actual Collatera or not
ement of m date of Type of guarante Term of Whether
amount l (if provided
Obligor the amount the guarante e (if guarante or not
guarante applicabl for a
maximu guarante guarante e applicabl e expired
ed e) related
m ed e e)
party
amount
guarante
ed
Dragon Joint and
Electronix several
280,000 224,900 No No
Holdings Inc. liability
and its guarante
44
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
controlled e
subsidiaries
Hong Kong Joint and
Dongshan several
Holding 280,000 10,000 liability No No
Limited and guarante
its subsidiaries e
Joint and
several
Yancheng 73,385.0
120,000 liability No No
Dongshan 8
guarante
e
Multek Group Joint and
(Hong Kong) several
66,048.2
Limited and 150,000 liability No No
2
its controlled guarante
subsidiaries e
Joint and
several
Mutto 26,509.7
100,000 liability No No
Optronics 4
guarante
e
Joint and
several
Yongchuang 20,601.6
80,000 liability No No
Tech 9
guarante
e
Joint and
Chaowei
several
Microelectroni
60,000 30,000 liability No No
cs (Yancheng)
guarante
Co., Ltd.
e
Yancheng Joint and
Dongshan several
Communicatio 13,000 6,861.34 liability No No
n Technology guarante
Co., Ltd. e
Joint and
several
RF Top
5,000 880.13 liability No No
Electronic
guarante
e
Hong Kong
5,000
Dongshan
Suzhou Joint and
Chengjia several
Precision 8,000 4,293.46 liability No No
Manufacturing guarante
Co., Ltd. e
Suzhou
Dongyue New
Energy 20,000
Technology
Co., Ltd.
Yancheng Joint and
56,856.4
Dongchuang 100,000 several No No
6
Precision liability
45
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Manufacturing guarante
Co., Ltd. e
Total amount of
Total amount of guarantee guarantee actually
approved to be provided provided for
1,221,000 679,170.16
for subsidiaries during the subsidiaries during
reporting period (B1) the reporting period
(B2)
Total amount of
Total amount of guarantee
guarantee actually
approved to be provided
provided for
for subsidiaries as at the 1,221,000 520,336.11
subsidiaries as at the
end of the reporting period
end of the reporting
(B3)
period (B4)
Guarantees provided by subsidiaries for each other
Disclosu
re date
of
Whether
announc Maximu Effective Counter
Actual Collatera or not
ement of m date of Type of guarante Term of Whether
amount l (if provided
Obligor the amount the guarante e (if guarante or not
guarante applicabl for a
maximu guarante guarante e applicabl e expired
ed e) related
m ed e e)
party
amount
guarante
ed
Total amount of guarantee provided by the Company (i.e., the sum of the top three items)
Total amount of
Total amount of guarantee
guarantee actually
approved during the
1,230,000 provided during the 684,170.16
reporting period
reporting period
(A1+B1+C1)
(A2+B2+C2)
Total amount of
Total amount of guarantee
guarantee actually
approved as at the end of
1,230,000 provided as at the 525,336.11
the reporting period
end of the reporting
(A3+B3+C3)
period (A4+B4+C4)
Ratio of the total amount of guarantee actually
provided (A4+B4+C4) to the net assets of the 28.91%
Company
Where:
Outstanding guarantees provided for shareholders,
5,000
actual controllers and their affiliates (D)
Outstanding guarantees directly or indirectly
provided for obligors whose debt-to-assets ratio 61,856.46
exceeds 70% (E)
Portion of the total amount of guarantee in excess
0
of 50% of the net assets (F)
Total (D+E+F) 61,856.46
Explanation about the joint and several liability
that have been or might be incurred in respect of
None
outstanding guarantees during the reporting period
(if any)
Explanation about external guarantees provided in
None
contravention of the established procedures (if any)
46
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
3. Entrusted wealth management
Applicable □N/A
In RMB0’000
Impairment loss
recognized for
Outstanding
Type Source of funds Total amount Overdue amount overdue wealth
amount
management
products
Bank wealth
management Self-owned funds 88,752.56 80,522.72 0 0
product
Total 88,752.56 80,522.72 0 0
High-risk entrusted wealth management products that are significant individually, illiquid or not principal protected:
□ Applicable N/A
Entrusted wealth management products the principal of which may be unrecoverable, or which may otherwise be impaired:
□ Applicable N/A
4. Other material contracts
□Applicable N/A
We have not entered into any other material contract during the reporting period.
XIII. Other Significant Matters
□Applicable N/A
There’s no other significant matter needing to be explained for the reporting period.
XIV. Significant Matters of Subsidiaries
□Applicable N/A
47
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Section VII Changes in Shares and Shareholders
I. Changes in Shares
1. Changes in shares
Unit: Share
Before the change +/- After the change
Bon Capitaliza
New us tion of Othe Subtot
Number % Number %
shares shar capital rs al
es reserves
I. Non-tradable shares 319,591,987 18.69% 319,591,987 18.69%
1. Shares held by the State
2. Shares held by State-
owned corporations
3. Shares held by other
319,591,987 18.69% 319,591,987 18.69%
domestic investors
Incl.: Shares held by
domestic non-State-
owned corporations
Shares held by
319,591,987 18.69% 319,591,987 18.69%
domestic natural persons
4. Shares held by foreign
investors
Incl.: Shares held by
foreign corporations
Shares held by
foreign natural persons
II. Tradable shares 1,390,275,340 81.31% 1,390,275,340 81.31%
1. RMB-denominated
1,390,275,340 81.31% 1,390,275,340 81.31%
ordinary shares
2. Foreign currency-
denominated shares listed
domestically
3. Foreign currency-
denominated shares listed
overseas
4. Others
III. Total shares 1,709,867,327 100.00% 1,709,867,327 100.00%
Reasons for changes in shares
□Applicable N/A
Approval for changes in shares
□Applicable N/A
Transfer of shares in relation to the changes
48
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
□Applicable N/A
Progress in the implementation of share repurchase
Applicable □N/A
On December 28, 2023, we held the 6th meeting of the 6th Board of Directors, at which the Proposal on Repurchase of the Company’s
Shares was deliberated and approved, agreeing to use our self-owned funds to repurchase the RMB-denominated ordinary shares (A-
shares) issued by the Company through the Shenzhen Stock Exchange by aggregate auction for the purpose of employee stock
ownership plans or equity incentives. The total repurchase funds shall range from RMB20 million (inclusive) to RMB30 million
(inclusive), and the repurchase price shall not exceed RMB 27.40 per share.
As of January 15, 2024, we have repurchased a total of 1,588,800 shares of us, accounting for 0.093% of our total share capital, through
the Shenzhen Stock Exchange by aggregate auction using our self-owned funds, at a price from RMB15.59 per share to RMB15.89
per share, with the total transaction amount being RMB24,997,000 (excluding transaction costs). The above-mentioned share
repurchase complies with the provisions of laws and regulations and our share repurchase plan.
Progress of sale or repurchase of shares by aggregate auction
□Applicable N/A
The impact of changes in shares on financial indicators such as basic earnings per share and diluted earnings per share, as well as net
assets per share attributable to ordinary shareholders of the Company for the most recent year and period
□Applicable N/A
Other information deemed necessary by the Company or required by securities regulatory authorities to be disclosed
□Applicable N/A
2. Changes in non-tradable shares
□Applicable N/A
II. Offering and Listing of Securities
□Applicable N/A
III. Number of shareholders and shareholding structure of the Company
Unit: Share
Total number of preferred shareholders whose
Total number of ordinary shareholders
109,447 voting rights had been restituted at the end of the 0
at the end of the reporting period
reporting period (if any) (Note 8)
Shareholding by ordinary shareholders holding more than 5% of the shares or top 10 ordinary shareholders (excluding the shares lent via refinancing)
No. of Pledge, attachment or freeze
Changes in
ordinary No. of non- No. of
shareholding
Status of Shareholding shares held at tradable tradable
Name of shareholder during the Status of
shareholder percentage the end of the ordinary ordinary Number
reporting shares
reporting shares held shares held
period
period
YUAN Yongfeng Domestic
13.01% 222,388,153 0 166,791,115 55,597,038 Pledge 132,010,000
natural person
YUAN Yonggang Domestic
11.83% 202,226,196 0 151,669,647 50,556,549 Pledge 94,730,000
natural person
Domestic
YUAN Fugen 3.44% 58,796,052 0 0 58,796,052 N/A 0
natural person
Hong Kong Foreign 3.03% 51,726,475 -14,286,127 0 51,726,475 N/A 0
49
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Securities Clearing corporation
Company Limited
Taikang Life
Insurance –
Traditional –
Others 1.03% 17,663,115 2,189,900 0 17,663,115 N/A 0
General Insurance
Product -019L-
CT001 Shenzhen
Agricultural Bank of
China Limited –
China Securities 500
Others 0.95% 16,213,800 8,706,900 0 16,213,800 N/A 0
Exchange-Traded
Index Securities
Investment Fund
Taikang Life
Insurance –
Dividends –
Others 0.92% 15,808,955 2,780,900 0 15,808,955 N/A 0
Personal Dividends -
019L-FH002
Shenzhen
New China Life
Insurance Company
Ltd. – Dividends –
Others 0.85% 14,500,148 14,500,148 0 14,500,148 N/A 0
Personal Dividends -
018L-FH002
Shenzhen
Taikang Life
Insurance –
Investment Linked
Others 0.78% 13,331,606 7,462,800 0 13,331,606 N/A 0
Insurance – Multi-
strategy
Optimization
GF Fund
Management Co.,
Ltd. – Social Others 0.71% 12,214,112 2,415,100 0 12,214,112 N/A 0
Security Fund
Portfolio 420
Strategic investors or general
corporations becoming top 10 ordinary
N/A
shareholders as a result of rights issue
(if any) (Note 3)
Among the shareholders listed above, YUAN Yonggang and YUAN Yongfeng are sons of YUAN Fugen, and YUAN
Yongfeng is the elder brother of YUAN Yonggang. YUAN Fugen, YUAN Yongfeng and YUAN Yonggang are our actual
Affiliates or concert parties among the
controllers. We are not aware whether there are affiliates or concert parties within the meaning of the Administrative
shareholders listed above
Measures for Information Disclosure by the Listed Companies Relating to Changes in Shares Held by Shareholders among
other shareholders listed above.
Delegation or waiver of voting rights
or ownership of voting rights by or to N/A
the shareholders listed above
Special explanation about any
dedicated account for repurchase
N/A
opened by any top 10 shareholder (if
any) (Note 11)
Shareholding by the top 10 holders of tradable ordinary shares (Excluding the shares lent via refinancing and the lock-up shares for senior executives)
Name of shareholder Number of tradable ordinary shares held at the end of the reporting period Type and number of shares
50
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Type Number
RMB-
denominated
YUAN Fugen 58,796,052 58,796,052
ordinary
share
RMB-
denominated
YUAN Yongfeng 55,597,038 55,597,038
ordinary
share
RMB-
Hong Kong Securities Clearing denominated
51,726,475 51,726,475
Company Limited ordinary
share
RMB-
denominated
YUAN Yonggang 50,556,549 50,556,549
ordinary
share
RMB-
Taikang Life Insurance – Traditional
denominated
– General Insurance Product -019L- 17,663,115 17,663,115
ordinary
CT001 Shenzhen
share
RMB-
Agricultural Bank of China Limited –
denominated
China Securities 500 Exchange-Traded 16,213,800 16,213,800
ordinary
Index Securities Investment Fund
share
RMB-
Taikang Life Insurance – Dividends
denominated
– Personal Dividends -019L-FH002 15,808,955 15,808,955
ordinary
Shenzhen
share
RMB-
New China Life Insurance Company
denominated
Ltd. – Dividends – Personal 14,500,148 14,500,148
ordinary
Dividends -018L-FH002 Shenzhen
share
RMB-
Taikang Life Insurance – Investment
denominated
Linked Insurance – Multi-strategy 13,331,606 13,331,606
ordinary
Optimization
share
RMB-
GF Fund Management Co., Ltd. Social denominated
12,214,112 12,214,112
Security Fund Portfolio 420 ordinary
share
Affiliates or concert parties among the Among the shareholders listed above, YUAN Yonggang and YUAN Yongfeng are sons of YUAN Fugen, and YUAN
top 10 holders of tradable ordinary Yongfeng is the elder brother of YUAN Yonggang. YUAN Fugen, YUAN Yongfeng and YUAN Yonggang are our
shares, and among the top 10 holders actual controllers. We are not aware whether there are affiliates or concert parties within the meaning of the
of tradable ordinary shares and top 10 Administrative Measures for Information Disclosure by the Listed Companies Relating to Changes in Shares Held by
ordinary shareholders Shareholders among other shareholders listed above.
Securities margin trading conducted
by top 10 ordinary shareholders (if N/A
any) (Note 4)
Share lending by shareholders holding more than 5% of the shares, top 10 shareholders and top 10 holders of tradable shares via
refinancing:
Applicable □N/A
Unit: Share
Share lending by shareholders holding more than 5% of the shares, top 10 shareholders and top 10 holders of tradable shares via refinancing
51
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Shares held in ordinary account Outstanding shares lent via Shares held in ordinary account Outstanding shares lent via
and margin trading account at the refinancing at the beginning of and margin trading account at refinancing at the end of the
Full name of
beginning of the current period the current period the end of the current period current period
shareholder
% of total % of total % of total % of total
Total number Total number Total number Total number
share capital share capital share capital share capital
Agricultural Bank
of China Limited
– China Securities
500 Exchange- 16,194,400.00 0.95% 2,217,500.00 0.13% 16,213,800.00 0.95% 626,900.00 0.04%
Traded Index
Securities
Investment Fund
Changes compared to the previous period due to shares lending via refinancing/returning by the top 10 shareholders and the top 10
holders of tradable shares
□Applicable N/A
Whether the top 10 ordinary shareholder or top 10 holders of tradable ordinary shares has conducted any transaction under the
repurchase agreement during the reporting period?
□Yes No
No top 10 ordinary shareholder or top 10 holders of tradable ordinary shares has conducted any transaction under the repurchase
agreement during the reporting period.
IV. Changes in Shareholding of Directors, Supervisors, and Senior Executives
□Applicable N/A
There has been no change in the shareholding of our directors, supervisors, and senior executives during the reporting period, as
detailed in the Annual Report 2023.
V. Changes in Controlling Shareholders and Actual Controllers
Change in the controlling shareholders during the reporting period:
□Applicable N/A
There has been no change in our controlling shareholders during the reporting period.Change in the actual controllers during the
reporting period:
□Applicable N/A
There has been no change in our actual controllers during the reporting period.
52
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Section VIII Preferred Shares
□Applicable N/A
We did not have any preferred share during the reporting period.
53
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Section IX Bonds
□Applicable N/A
54
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Section X Financial Report
I. Financial Report
Has the semi-annual report been audited?
□Yes No
This semi-annual financial report has not been audited.
II. Financial Statements
The amounts in the statements contained in the notes to the financial statements are presented in RMB.
1. Consolidated balance sheet
Prepared by: Suzhou Dongshan Precision Manufacturing Co., Ltd.
In RMB
Item Closing balance Opening balance
Current assets:
Cash and bank balances 7,954,476,596.69 7,190,036,231.06
Settlement deposit
Loans to banks and other financial
institutions
Financial assets held for trading 140,916,032.21 146,141,371.77
Derivative financial assets
Notes receivable 25,236,878.62 3,407,623.49
Accounts receivable 6,634,848,769.35 7,713,164,772.05
Accounts receivable financing 199,435,267.61 290,477,095.22
Advances to suppliers 68,612,672.57 79,782,739.11
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves
receivable
Other receivables 98,014,969.32 77,134,897.39
Incl.: Interest receivable
Dividends receivable
Financial assets held under resale
agreements
Inventories 6,191,742,129.70 6,293,879,276.54
Incl.: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 1,086,141,825.81 651,719,745.68
55
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Total current assets 22,399,425,141.88 22,445,743,752.31
Non-current assets:
Loans and advances to clients
Debt investments
Other debt investments
Long-term receivable 30,000,000.00 30,000,000.00
Long-term equity investments 151,095,048.38 155,406,879.89
Investments in other equity
283,657,110.00 278,157,110.00
instruments
Other non-current financial assets
Investment properties 909,984.68 1,038,840.26
Fixed assets 12,712,146,406.50 12,415,251,689.80
Construction in progress 2,212,779,454.69 1,842,525,188.54
Productive biological assets
Oil and gas assets
Right-of-use assets 1,268,794,116.83 1,252,668,050.83
Intangible assets 995,721,202.51 863,692,421.74
Incl.: Data resources
Development expenses
Incl.: Data resources
Goodwill 2,205,652,600.95 2,209,199,500.98
Long-term deferred expenses 917,009,459.65 866,872,191.21
Deferred tax assets 1,128,406,535.94 1,078,140,428.38
Other non-current assets 1,313,425,496.55 933,022,974.34
Total non-current assets 23,219,597,416.68 21,925,975,275.97
Total assets 45,619,022,558.56 44,371,719,028.28
Current liabilities:
Short-term borrowings 5,605,192,891.45 5,156,100,217.01
Borrowings from Central Bank
Borrowings from banks and other
financial institutions
Financial liabilities held for trading 180,575,141.54 104,174,076.23
Derivative financial liabilities
Notes payable 979,409,601.51 909,171,215.93
Accounts payable 8,353,477,330.14 8,039,107,176.52
Advances from clients
Contract liabilities 47,925,820.33 28,982,676.07
Financial assets sold under repurchase
agreements
Deposits from clients and other banks
Funds received as stockbroker
Funds received as underwriter of
securities
56
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Employee benefits payable 458,029,549.03 553,178,980.68
Taxes payable 322,276,046.63 475,576,206.83
Other payables 81,678,161.65 80,188,628.54
Incl.: Interest payable
Dividends payable
Fees and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
2,476,592,843.67 2,496,716,906.35
year
Other current liabilities 2,348,195.83 6,556,017.38
Total current liabilities 18,507,505,581.78 17,849,752,101.54
Non-current liabilities:
Provision for insurance contracts
Long-term borrowings 5,230,423,595.11 4,706,280,338.76
Bonds payable
Incl.: Preferred shares
Perpetual bonds
Lease liabilities 1,880,994,634.25 1,842,799,193.80
Long-term payables 254,675,989.48 296,995,789.48
Long-term employee benefits payable
Provisions 49,855,521.53 60,785,210.44
Deferred income 656,700,278.49 733,456,685.17
Deferred tax liabilities 821,262,633.39 691,293,111.83
Other non-current liabilities
Total non-current liabilities 8,893,912,652.25 8,331,610,329.48
Total liabilities 27,401,418,234.03 26,181,362,431.02
Owners’ equity:
Share capital 1,709,867,327.00 1,709,867,327.00
Other equity instruments
Incl.: Preferred shares
Perpetual bonds
Capital reserve 8,064,875,551.23 8,063,768,409.73
Less: Treasury shares 150,907,657.63 125,906,811.33
Other comprehensive income -797,128,107.05 -714,664,578.64
Special reserve
Surplus reserve 184,866,869.73 184,866,869.73
General risk reserve
Retained profits 9,160,377,413.07 9,025,095,529.05
Total owners’ equity attributable to the
18,171,951,396.35 18,143,026,745.54
parent company
Minority interests 45,652,928.18 47,329,851.72
Total owners’ equity 18,217,604,324.53 18,190,356,597.26
57
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Total liabilities and owners’ equity 45,619,022,558.56 44,371,719,028.28
Legal Representative: YUAN Yonggang CFO: WANG Xu Accounting Supervisor: ZHU Deguang
2. Standalone balance sheet
In RMB
Item Closing balance Opening balance
Current assets:
Cash and bank balances 1,176,558,804.09 1,121,824,500.79
Financial assets held for trading
Derivative financial assets
Notes receivable 182,944.04
Accounts receivable 2,502,768,793.12 2,084,703,275.22
Accounts receivable financing 32,023,800.26 16,445,639.29
Advances to suppliers 35,668,019.63 264,702,649.93
Other receivables 7,222,201,550.53 5,252,635,539.56
Incl.: Interest receivable
Dividends receivable 1,559,915,617.48 2,203,111,413.70
Inventories 864,339,912.27 1,299,182,931.81
Incl.: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 44,856,716.42 50,271,463.84
Total current assets 11,878,417,596.32 10,089,948,944.48
Non-current assets:
Debt investments
Other debt investments
Long-term receivables 30,000,000.00 30,000,000.00
Long-term equity investments 9,499,318,105.96 9,466,303,266.56
Investments in other equity
171,322,110.00 171,322,110.00
instruments
Other non-current financial assets
Investment properties
Fixed assets 709,506,279.12 1,292,621,445.22
Construction in progress 161,716,719.55 237,324,474.45
Productive biological assets
Oil and gas assets
Right-of-use assets 3,587,650.94 4,566,101.24
Intangible assets 61,332,010.58 61,083,591.40
Incl.: Data resources
Development expenses
58
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Incl.: Data resources
Goodwill
Long-term deferred expenses 84,745,746.26 87,384,070.37
Deferred tax assets 249,940,604.24 189,735,608.41
Other non-current assets 91,931,554.42 163,595,104.57
Total non-current assets 11,063,400,781.07 11,703,935,772.22
Total assets 22,941,818,377.39 21,793,884,716.70
Current liabilities:
Short-term borrowings 2,441,570,489.61 2,911,521,728.06
Financial liabilities held for trading
Derivative financial assets
Notes payable 690,321,901.66 449,069,523.81
Accounts payable 1,432,214,384.46 1,326,777,885.36
Advances from clients
Contract liabilities 76,212,727.55 11,196,344.94
Employee benefits payable 21,452,235.13 53,045,775.35
Taxes payable 5,143,612.03 3,260,417.40
Other payables 5,500,643,227.09 3,680,367,551.64
Incl.: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one
1,280,570,007.74 834,828,298.62
year
Other current liabilities 131,499.68 3,373,087.29
Total current liabilities 11,448,260,084.95 9,273,440,612.47
Non-current liabilities:
Long-term borrowings 2,131,424,310.83 2,405,437,622.23
Bonds payable
Incl.: Preferred shares
Perpetual bonds
Lease liabilities 1,890,299.00 2,741,061.12
Long-term payables 226,168,789.48 226,168,789.48
Long-term employee benefits payable
Provisions 1,233,646.57 1,852,066.56
Deferred income 17,938,333.53 19,403,333.49
Deferred tax liabilities 842,205.13 920,551.61
Other non-current liabilities
Total non-current liabilities 2,379,497,584.54 2,656,523,424.49
Total liabilities 13,827,757,669.49 11,929,964,036.96
Owners’ equity:
Share capital 1,709,867,327.00 1,709,867,327.00
Other equity instruments
Incl.: Preferred shares
59
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Perpetual bonds
Capital reserve 7,963,346,198.27 7,962,239,056.77
Less: Treasury shares 150,907,657.63 125,906,811.33
Other comprehensive income -350,000,000.00 -350,000,000.00
Special reserve
Surplus reserve 184,866,869.73 184,866,869.73
Retained profits -243,112,029.47 482,854,237.57
Total owners’ equity 9,114,060,707.90 9,863,920,679.74
Total liabilities and owners’ equity 22,941,818,377.39 21,793,884,716.70
3. Consolidated income statement
In RMB
Item The reporting period The same period of the previous year
I. Total operating revenue 16,628,586,195.56 13,667,087,825.06
Incl.: Operating revenue 16,628,586,195.56 13,667,087,825.06
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 15,860,085,715.70 12,897,109,453.48
Incl.: Operating costs 14,455,695,057.51 11,831,369,939.99
Interest expenses
Fee and commission expenses
Surrenders
Net payments for insurance
claims
Net insurance claim reserves
Policyholder dividends
Reinsurance expenses
Taxes and surcharges 97,314,539.31 49,836,214.17
Selling expenses 198,461,411.65 170,543,696.07
Administrative expenses 513,932,018.38 427,064,667.98
Research and development
622,223,608.99 457,389,483.21
expenses
Financial expenses -27,540,920.14 -39,094,547.94
Incl.: Interest expenses 229,752,660.54 230,762,342.33
Interest income 141,164,259.09 109,254,733.76
Add: Other income 176,411,848.89 147,287,144.35
Investment income (loss
-48,423,970.21 11,634,384.72
expressed with “-”)
Incl.: Investment income from
-4,311,831.51 -633,126.48
associates and joint ventures
Gain on derecognition of
financial assets at amortized cost
60
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Exchange gain (loss expressed
with “-”)
Net exposure hedging income
(loss expressed with “-”)
Gain on changes in fair value
-15,065,635.92 -8,871,765.01
(loss expressed with “-”)
Credit loss (loss expressed with
-57,244,335.30 -64,859,876.70
“-”)
Impairment loss on assets (loss
-105,585,722.55 -60,359,147.92
expressed with “-”)
Gain on disposal of assets (loss
-34,905,446.22 -4,613,581.75
expressed with “-”)
III. Operating profit (loss expressed with
683,687,218.55 790,195,529.27
“-”)
Add: Non-operating revenue 4,983,059.69 161,498,484.47
Less: Non-operating expenses 5,571,548.85 5,202,156.55
IV. Profit before tax (total loss expressed
683,098,729.39 946,491,857.19
with “-”)
Less: Income tax expenses 124,174,716.66 121,848,672.48
V. Net profit (net loss expressed with “-”) 558,924,012.73 824,643,184.71
(I) Classified by continuity of operation
1. Net profit from continuing operation
558,924,012.73 824,643,184.71
(net loss expressed with “-”)
2. Net profit from discontinued
operation (net loss expressed with “-”)
(II) Classified by ownership attribution
1. Net profit attributable to owners of
the parent company (net loss expressed 560,600,936.27 824,548,652.98
with “-”)
2. Profit attributable to minority
-1,676,923.54 94,531.73
interests (net loss expressed with “-”)
VI. Other comprehensive income, net -82,463,528.41 -242,092,889.62
Other comprehensive income
attributable to owners of the parent -82,463,528.41 -242,092,889.62
company, net after tax
(I) Other comprehensive income that
cannot be reclassified to profit or loss
1. Changes arising from
remeasurement of defined benefit plans
2. Other comprehensive income that
cannot be reclassified to profit or loss
under equity method
3. Change in fair value of
investments in other equity instruments
4. Change in fair value of the
corporation’s credit risk
5. Others
(II) Other comprehensive income -82,463,528.41 -242,092,889.62
61
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
that will be reclassified to profit or loss
1. Other comprehensive income that
can be reclassified to profit or loss under
equity method
2. Change in fair value of other debt
investments
3. Financial assets reclassified to
other comprehensive income
4. Provision for credit impairment of
other debt investments
5. Reserves for cash flow hedge -72,795,178.35 -210,146,157.46
6. Differences in translation of
-9,668,350.06 -31,946,732.16
foreign currency financial statements
7. Others
Other comprehensive income
attributable to minority interests, net after
tax
VII. Total comprehensive income 476,460,484.32 582,550,295.09
Total comprehensive income
attributable to owners of the parent 478,137,407.86 582,455,763.36
company
Total comprehensive income
-1,676,923.54 94,531.73
attributable to minority interests
VIII. Earnings per share:
(I) Basic earnings per share 0.33 0.48
(II) Diluted earnings per share 0.33 0.48
Legal Representative: YUAN Yonggang CFO: WANG Xu Accounting Supervisor: ZHU Deguang
4. Standalone income statement
In RMB
Item The reporting period The same period of the previous year
I. Operating revenue 2,146,603,495.20 1,754,338,591.17
Less: Operating costs 2,082,748,511.41 1,709,683,165.19
Taxes and surcharges 14,450,087.28 4,069,998.89
Selling expenses 24,066,524.34 29,824,017.76
Administrative expenses 124,363,216.37 179,521,807.47
Research and development
103,191,448.64 68,267,790.44
expenses
Financial expenses 108,373,027.07 82,583,512.29
Incl.: Interest expenses 175,228,306.42 171,933,961.80
Interest income 37,981,858.78 52,992,726.19
Add: Other income 28,294,000.51 2,216,893.07
Investment income (loss
-5,578,349.99 -196,349.56
expressed with “-”)
Incl.: Investment income from
-2,927,211.16 -633,126.48
associates and joint ventures
62
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Gain on derecognition of
financial assets at amortized cost
Net exposure hedging income
(loss expressed with “-”)
Gain on changes in fair value
-13,243,914.03
(loss expressed with “-”)
Credit loss (loss expressed with
-57,838,856.00 -66,854,224.95
“-”)
Impairment loss on assets (loss
206,582.75 -10,495,876.53
expressed with “-”)
Gain on disposal of assets (loss
389,609.87 62,663.71
expressed with “-”)
II. Operating profit (loss expressed with
-358,360,246.80 -394,878,595.13
“-”)
Add: Non-operating revenue 5,000.00 3,000.00
Less: Non-operating expenses 2,575,310.30 692,096.95
III. Profit before tax (total loss expressed
-360,930,557.10 -395,567,692.08
with “-”)
Less: Income tax expenses -60,283,342.31 -67,146,858.77
IV. Net profit (loss expressed with “-”) -300,647,214.79 -328,420,833.31
(I) Net profit from continuing
-300,647,214.79 -328,420,833.31
operation (net loss expressed with “-”)
(II) Net profit from discontinued
operation (net loss expressed with “-”)
V. Other comprehensive income, net -4,538,660.00
(I) Other comprehensive income
that cannot be reclassified to profit or
loss
1. Changes arising from
remeasurement of defined benefit plans
2. Other comprehensive income that
cannot be reclassified to profit or loss
under equity method
3. Change in fair value of
investments in other equity instruments
4. Change in fair value of the
corporation’s credit risk
5. Others
(II) Other comprehensive income
-4,538,660.00
that will be reclassified to profit or loss
1. Other comprehensive income that
can be reclassified to profit or loss under
equity method
2. Change in fair value of other debt
investments
3. Financial assets reclassified to
other comprehensive income
4. Provision for credit impairment
63
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
of other debt investments
5. Reserves for cash flow hedge -4,538,660.00
6. Differences in translation of
foreign currency financial statements
7. Others
VI. Total comprehensive income -300,647,214.79 -332,959,493.31
VII. Earnings per share:
(I) Basic earnings per share -0.18 -0.19
(II) Diluted earnings per share -0.18 -0.19
5. Consolidated cash flow statement
In RMB
Item The reporting period The same period of the previous year
I. Cash flows from operating activities
Proceeds from sale of goods and
17,706,958,316.93 14,691,146,180.23
rendering of services
Net increase in deposits from clients
and other banks
Net increase in borrowings from
Central Bank
Net increase in borrowings from other
financial institutions
Proceeds from premiums under prior
insurance contracts
Net proceeds from reinsurance
business
Net increase in insured’s deposits and
investments
Proceeds from interest, fees and
commissions
Net increase in borrowings from banks
and other financial institutions
Net increase in receipts under
repurchase transactions
Net cash received as stockbroker
Tax refunds received 524,915,907.68 663,078,350.52
Other proceeds relating to operating
592,490,973.79 859,746,689.37
activities
Subtotal of cash inflows from operating
18,824,365,198.40 16,213,971,220.12
activities
Payments for purchase of goods and
12,996,139,860.06 10,247,616,298.54
receipt of services
Net increase in loans and advances
from clients
Net increase in deposits in Central
Bank and other banks
64
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Payment of claims under prior
insurance contracts
Net increase in loans to banks and
other financial institutions
Payment of interest, fees and
commissions
Payment of policyholder dividends
Payments to and for employees 2,392,154,841.93 2,122,560,726.35
Taxes paid 519,477,522.80 384,150,962.59
Other payments relating to operating
827,623,574.33 845,742,396.62
activities
Subtotal of cash outflows from operating
16,735,395,799.12 13,600,070,384.10
activities
Net cash flows from operating activities 2,088,969,399.28 2,613,900,836.02
II. Cash flows from investing activities
Proceeds from disposal of investments 308,155,031.33 2,384,653,805.97
Proceeds from return on investments -29,218,011.67 25,329,030.89
Net proceeds from the disposal of
fixed assets, intangible assets and other 19,280,110.65 7,093,828.69
long-term assets
Net proceeds from the disposal of
subsidiaries and other business entities
Other proceeds relating to investing
419,424,782.41 28,655,922.05
activities
Subtotal of cash inflows from investing
717,641,912.72 2,445,732,587.60
activities
Payments for the acquisition of fixed
assets, intangible assets and other long- 1,644,034,818.83 2,229,459,699.60
term assets
Payments for investments 356,562,777.83 2,636,079,853.45
Net increase in mortgage loans
Net Payments for the acquisition of
876,484,369.67
subsidiaries and other business entities
Other cash payments relating to
530,962,815.64 126,553,313.15
investing activities
Subtotal of cash outflows from investing
2,531,560,412.30 5,868,577,235.87
activities
Net cash flows from investing activities -1,813,918,499.58 -3,422,844,648.27
III. Cash flows from financing activities
Proceeds from investors
Incl.: Proceeds of subsidiaries from
minority shareholders’ investments
Cash receipts from borrowings 5,465,543,117.47 8,961,069,158.05
Other proceeds relating to financing
329,197,076.44 458,901,268.55
activities
Subtotal of cash inflows from financing
5,794,740,193.91 9,419,970,426.60
activities
65
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Repayment of borrowings 4,327,541,972.24 7,750,861,104.95
Payment of distribution of dividends
608,693,016.38 394,903,937.46
and profits or for interest
Incl.: Dividends and profits distributed
by subsidiaries to minor shareholders
Other payments relating to financing
823,264,123.26 713,753,915.55
activities
Subtotal of cash outflows from financing
5,759,499,111.88 8,859,518,957.96
activities
Net cash flows from financing activities 35,241,082.03 560,451,468.64
IV. Effect of exchange rate changes on
96,575,094.20 412,200,621.26
cash and cash equivalents
V. Net increase in cash and cash
406,867,075.93 163,708,277.65
equivalents
Add: Opening balance of cash and
5,644,487,018.31 5,457,026,822.70
cash equivalents
VI. Closing balance of cash and cash
6,051,354,094.24 5,620,735,100.35
equivalents
6. Standalone cash flow statement
In RMB
Item The reporting period The same period of the previous year
I. Cash flows from operating activities
Proceeds from the sale of goods and
1,443,818,515.88 1,263,974,579.05
rendering of services
Tax refunds received 29,497,769.17 114,584,436.24
Other proceeds relating to operating
1,514,065,178.51 2,848,540,868.63
activities
Subtotal of cash inflows from operating
2,987,381,463.56 4,227,099,883.92
activities
Payments for purchase of goods and
1,465,458,913.36 1,485,613,777.47
receipt of services
Payments to and for employees 222,379,192.36 205,137,158.65
Taxes paid 63,148,735.28 9,503,576.65
Other payments relating to operating
1,536,093,507.96 2,925,607,425.96
activities
Subtotal of cash outflows from operating
3,287,080,348.96 4,625,861,938.73
activities
Net cash flows from operating activities -299,698,885.40 -398,762,054.81
II. Cash flows from investing activities
Proceeds from disposal of investments 798,766,541.67
Proceeds from return on investments 636,744,542.27 5,719,676.92
Net proceeds from the disposal of
fixed assets, intangible assets and other 1,973,928.00 4,527,689.31
long-term assets
Net proceeds from the disposal of
66
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
subsidiaries and other business entities
Other proceeds relating to investing
52,970,680.65
activities
Subtotal of cash inflows from investing
691,689,150.92 809,013,907.90
activities
Payments for the acquisition of fixed
assets, intangible assets and other long- 96,735,594.65 192,834,847.36
term assets
Payments for investments 35,000,000.00 2,172,517,047.69
Net payments for the acquisition of
subsidiaries and other business entities
Other payments relating to investing
377,108,817.47
activities
Subtotal of cash outflows from investing
508,844,412.12 2,365,351,895.05
activities
Net cash flows from investing activities 182,844,738.80 -1,556,337,987.15
III. Cash flows from financing activities
Proceeds from investors
Proceeds from borrowings 2,006,208,006.67 4,210,580,000.00
Other proceeds relating to financing
2,229,593,452.48 2,269,632,667.18
activities
Subtotal of cash inflows from financing
4,235,801,459.15 6,480,212,667.18
activities
Repayment of borrowings 2,303,446,666.67 2,625,913,500.00
Payment of distribution of dividends
522,672,772.48 291,401,627.99
and profits or for interest
Other payments relating to financing
1,418,793,147.62 1,720,686,959.92
activities
Subtotal of cash outflows from financing
4,244,912,586.77 4,638,002,087.91
activities
Net cash flows from financing activities -9,111,127.62 1,842,210,579.27
IV. Effect of exchange rate changes on
18,646,929.18 706,222.03
cash and cash equivalents
V. Net increase in cash and cash
-107,318,345.04 -112,183,240.66
equivalents
Add: Opening balance of cash and
478,844,238.56 1,034,143,525.12
cash equivalents
VI. Closing balance of cash and cash
371,525,893.52 921,960,284.46
equivalents
7. Consolidated statement of changes in owners’ equity
The reporting period
In RMB
The reporting period
Item Owners’ equity attributable to the parent Min Tota
Shar Other equity Capi Less Oth Spe Surp Gen Reta Oth Subt ority l
67
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
e instruments tal : er cial lus eral ined ers otal inter own
capi rese Trea com rese rese risk prof ests ers’
tal Pref Perp rve sury preh rve rve rese it equi
erre etua shar ensi rve ty
Oth
d l es ve
ers
shar bon inco
es ds me
- 18,1 18,1
I. Balance at 1,70 8,06 125, 184, 9,02 47,3
714, 43,0 90,3
the end of 9,86 3,76 906, 866, 5,09 29,8
664, 26,7 56,5
the previous 7,32 8,40 811. 869. 5,52 51.7
578. 45.5 97.2
year 7.00 9.73 33 73 9.05 2
64 4 6
Add:
Changes in
0.00
accounting
policies
Correction of
previous 0.00
period errors
Others 0.00
II. Balance at - 18,1 18,1
1,70 8,06 125, 184, 9,02 47,3
the 714, 43,0 90,3
9,86 3,76 906, 866, 5,09 29,8
beginning of 664, 26,7 56,5
7,32 8,40 811. 869. 5,52 51.7
the current 578. 45.5 97.2
7.00 9.73 33 73 9.05 2
year 64 4 6
III.
Increase/(dec
-
rease) in the 25,0 135, 28,9 - 27,2
1,10 82,4
current 00,8 281, 24,6 1,67 47,7
7,14 63,5
period 46.3 884. 50.8 6,92 27.2
1.50 28.4
(decrease 0 02 1 3.54 7
1
expressed
with “-”)
-
560, 478, - 476,
(I) Total 82,4
600, 137, 1,67 460,
comprehensi 63,5
936. 407. 6,92 484.
ve income 28.4
27 86 3.54 32
1
(II) - -
25,0
Investment/( 1,10 23,8 23,8
00,8
divestment) 7,14 93,7 93,7
46.3
by 1.50 04.8 04.8
0
shareholders 0 0
1.
Contribution
s from
0.00
holders of
ordinary
shares
2.
Contribution
s from 0.00
holders of
other equity
68
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
instruments
3. Share-
based
1,10 1,10 1,10
payments
7,14 7,14 7,14
recorded in
1.50 1.50 1.50
owners’
equity
- -
25,0
25,0 25,0
00,8
4. Others 00,8 00,8
46.3
46.3 46.3
0
0 0
- - -
(III) 425, 425, 425,
Distribution 319, 319, 319,
of profits 052. 052. 052.
25 25 25
1. Surplus
0.00
reserve
2. General
0.00
risk reserve
3. - - -
Distributions 425, 425, 425,
to owners 319, 319, 319,
(shareholders 052. 052. 052.
) 25 25 25
4. Others 0.00
(IV) Internal
transfer of
0.00
owners’
equity
1. Transfer of
capital
reserve to 0.00
(share)
capital
2. Transfer of
surplus
reserve to 0.00
(share)
capital
3. Make-up
of losses by
0.00
surplus
reserve
4. Transfer of
changes in
defined
0.00
benefit plans
to retained
earnings
5. Transfer of
0.00
other
69
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
comprehensi
ve income to
retained
earnings
6. Others 0.00
(V) Special
0.00
reserve
1.
Appropriated
0.00
in the current
period
2. Used in
the current 0.00
period
(VI) Others 0.00
- 18,1 18,2
IV. Balance 1,70 8,06 150, 184, 9,16 45,6
797, 71,9 17,6
at the end of 9,86 4,87 907, 866, 0,37 52,9
128, 51,3 04,3
the current 7,32 5,55 657. 869. 7,41 28.1
107. 96.3 24.5
period 7.00 1.23 63 73 3.07 8
05 5 3
The same period of the previous year
In RMB
The same period of the previous year
Owners’ equity attributable to the parent
Other equity Oth Tota
instruments Less er Min l
Gen
Item Shar Capi : com Spe Surp Reta ority own
Pref Perp eral
e tal Trea preh cial lus ined Oth Subt inter ers’
erre etua risk
capi Oth rese sury ensi rese rese prof ers otal ests equi
d l rese
tal ers rve shar ve rve rve it ty
shar bon rve
es inco
es ds me
- 16,3 16,4
I. Balance at 1,70 8,05 125, 135, 7,27 46,9
692, 59,4 06,3
the end of 9,86 4,89 906, 347, 8,20 17,9
976, 29,4 47,4
the previous 7,32 4,08 811. 835. 3,05 68.1
005. 80.4 48.6
year 7.00 0.77 33 10 4.12 6
21 5 1
Add:
Changes in
accounting
policies
Correction of
previous
period errors
Others
II. Balance at - 16,3 16,4
1,70 8,05 125, 135, 7,27 46,9
the 692, 59,4 06,3
9,86 4,89 906, 347, 8,20 17,9
beginning of 976, 29,4 47,4
7,32 4,08 811. 835. 3,05 68.1
the current 005. 80.4 48.6
7.00 0.77 33 10 4.12 6
year 21 5 1
III. 5,56 - 636, 400, 94,5 400,
70
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Increase/(dec 1,26 242, 665, 134, 31.7 228,
rease) in the 6.10 092, 691. 068. 3 600.
current 889. 99 47 20
period 62
(decrease
expressed
with “-”)
-
824, 582, 582,
(I) Total 242, 94,5
548, 455, 550,
comprehensi 092, 31.7
652. 763. 295.
ve income 889. 3
98 36 09
62
(II)
Investment/( 5,56 5,56 5,56
divestment) 1,26 1,26 1,26
by 6.10 6.10 6.10
shareholders
1.
Contribution
s from
holders of
ordinary
shares
2.
Contribution
s from
holders of
other equity
instruments
3. Share-
based
5,56 5,56 5,56
payments
1,26 1,26 1,26
recorded in
6.10 6.10 6.10
owners’
equity
4. Others
- - -
(III) 187, 187, 187,
Distribution 315, 315, 315,
of profits 150. 150. 150.
99 99 99
1. Surplus
reserve
2. General
risk reserve
3. - - -
Distributions 187, 187, 187,
to owners 315, 315, 315,
(shareholders 150. 150. 150.
) 99 99 99
4. Others
(IV) Internal
transfer of
owners’
71
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
equity
1. Transfer of
capital
reserve to
(share)
capital
2. Transfer of
surplus
reserve to
(share)
capital
3. Make-up
of losses by
surplus
reserve
4. Transfer of
changes in
defined
benefit plans
to retained
earnings
5. Transfer of
other
comprehensi
ve income to
retained
earnings
6. Others
(V) Special
reserve
1.
Appropriated
in the current
period
2. Used in
the current
period
- - -
567, 567, 567,
(VI) Others
810. 810. 810.
00 00 00
- 16,7 16,8
IV. Balance 1,70 8,06 125, 135, 7,91 47,0
935, 59,5 06,5
at the end of 9,86 0,45 906, 347, 4,86 12,4
068, 63,5 76,0
the current 7,32 5,34 811. 835. 8,74 99.8
894. 48.9 48.8
period 7.00 6.87 33 10 6.11 9
83 2 1
8. Standalone statement of changes in owners’ equity
The reporting period
In RMB
Item The reporting period
72
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Other equity instruments Other
Capita Less: compr Specia Surplu Total
Retain
Share Prefer Perpet l Treasu ehensi l s owner
ed Others
capital red ual Others reserv ry ve reserv reserv s’
profit
shares bonds e shares incom e e equity
e
I. Balance at -
1,709, 7,962, 125,9 184,8 482,8 9,863,
the end of 350,0
867,3 239,0 06,81 66,86 54,23 920,6
the previous 00,00
27.00 56.77 1.33 9.73 7.57 79.74
year 0.00
Add:
Changes in
accounting
policies
Correction of
previous
period errors
Others
II. Balance at
-
the 1,709, 7,962, 125,9 184,8 482,8 9,863,
350,0
beginning of 867,3 239,0 06,81 66,86 54,23 920,6
00,00
the current 27.00 56.77 1.33 9.73 7.57 79.74
0.00
year
III.
Increase/(dec
rease) in the - -
1,107, 25,00
current 725,9 749,8
141.5 0,846.
period 66,26 59,97
0 30
(decrease 7.04 1.84
expressed
with “-”)
- -
(I) Total
300,6 300,6
comprehensi
47,21 47,21
ve income
4.79 4.79
(II)
-
Investment/( 1,107, 25,00
23,89
divestment) 141.5 0,846.
3,704.
by 0 30
80
shareholders
1.
Contribution
s from
holders of
ordinary
shares
2.
Contribution
s from
holders of
other equity
instruments
3. Share- 1,107, 1,107,
based 141.5 141.5
73
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
payments 0 0
recorded in
owners’
equity
-
25,00
25,00
4. Others 0,846.
0,846.
30
30
- -
(III)
425,3 425,3
Distribution
19,05 19,05
of profits
2.25 2.25
1. Surplus
reserve
2.
- -
Distributions
425,3 425,3
to owners
19,05 19,05
(shareholders
2.25 2.25
)
3. Others
(IV) Internal
transfer of
owners’
equity
1. Transfer of
capital
reserve to
(share)
capital
2. Transfer of
surplus
reserve to
(share)
capital
3. Make-up
of losses by
surplus
reserve
4. Transfer of
changes in
defined
benefit plans
to retained
earnings
5. Transfer of
other
comprehensi
ve income to
retained
earnings
6. Others
(V) Special
reserve
74
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
1.
Appropriated
in the current
period
2. Used in
the current
period
(VI) Others
IV. Balance - -
1,709, 7,963, 150,9 184,8 9,114,
at the end of 350,0 243,1
867,3 346,1 07,65 66,86 060,7
the current 00,00 12,02
27.00 98.27 7.63 9.73 07.90
period 0.00 9.47
The same period of the previous year
In RMB
The same period of the previous year
Other equity instruments Other
Capita Less: compr Specia Surplu Total
Item Retain
Share Prefer Perpet l Treasu ehensi l s owner
ed Others
capital red ual Others reserv ry ve reserv reserv s’
profit
shares bonds e shares incom e e equity
e
I. Balance at -
1,709, 7,953, 125,9 135,3 224,4 9,551,
the end of 345,4
867,3 356,3 06,81 47,83 81,65 685,0
the previous 61,34
27.00 66.17 1.33 5.10 3.09 30.03
year 0.00
Add:
Changes in
accounting
policies
Correction of
previous
period errors
Others
II. Balance at
-
the 1,709, 7,953, 125,9 135,3 224,4 9,551,
345,4
beginning of 867,3 356,3 06,81 47,83 81,65 685,0
61,34
the current 27.00 66.17 1.33 5.10 3.09 30.03
0.00
year
III.
Increase/(dec
rease) in the - - -
5,561,
current 4,538, 515,7 514,7
266.1
period 660.0 35,98 13,37
0
(decrease 0 4.30 8.20
expressed
with “-”)
- - -
(I) Total
4,538, 328,4 332,9
comprehensi
660.0 20,83 59,49
ve income
0 3.31 3.31
(II) 5,561, 5,561,
75
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Investment/( 266.1 266.1
divestment) 0 0
by
shareholders
1.
Contribution
s from
holders of
ordinary
shares
2.
Contribution
s from
holders of
other equity
instruments
3. Share-
based
5,561, 5,561,
payments
266.1 266.1
recorded in
0 0
owners’
equity
4. Others
- -
(III)
187,3 187,3
Distribution
15,15 15,15
of profits
0.99 0.99
1. Surplus
reserve
2.
- -
Distributions
187,3 187,3
to owners
15,15 15,15
(shareholders
0.99 0.99
)
3. Others
(IV) Internal
transfer of
owners’
equity
1. Transfer of
capital
reserve to
(share)
capital
2. Transfer of
surplus
reserve to
(share)
capital
3. Make-up
of losses by
surplus
reserve
76
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
4. Transfer of
changes in
defined
benefit plans
to retained
earnings
5. Transfer of
other
comprehensi
ve income to
retained
earnings
6. Others
(V) Special
reserve
1.
Appropriated
in the current
period
2. Used in
the current
period
(VI) Others
IV. Balance - -
1,709, 7,958, 125,9 135,3 9,036,
at the end of 350,0 291,2
867,3 917,6 06,81 47,83 971,6
the current 00,00 54,33
27.00 32.27 1.33 5.10 51.83
period 0.00 1.21
III. General Information of the Company
Suzhou Dongshan Precision Manufacturing Co., Ltd. (the “Company”) is a company limited by shares converted
from Suzhou Dongshan Sheet Metal Co., Ltd., and registered with the Suzhou Municipal Administration for
Industry and Commerce of Jiangsu on December 24, 2007, and is headquartered in Suzhou, Jiangsu, holds a business
license with unified social credit code of 91320500703719732P, and has a registered capital of
RMB1709867327.00, divided into 1,709,867,327 shares with a par value of RMB 1 each, of which, 319,591,987
shares are non-tradable A-shares, and 1,390,275,340 shares are tradable A-shares. The Company’s shares have been
listed and traded on the Shenzhen Stock Exchange since April 9, 2010.
The Company is in the computer, communication and other electronic equipment manufacturing industry, and is
primarily engaged in the provision of core devices for intelligent interconnection, including PCBs, LED display
devices, touch panels, LCMs, and precision components, etc.
These financial statements are published with the approval of the 12th meeting of the 6th Board of Directors of the
Company on August 18, 2024.
77
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
IV. Basis for Preparation of the Financial Statements
1. Basis for preparation
These financial statements have been prepared on the assumption that the Company is a going concern.
2. Going concern
No event or fact may cast significant doubts on the Company’s ability to remain a going concern within 12 months
after the end of the reporting period.
V. Significant Accounting Policies and Accounting Estimates
Note about specific accounting policies and accounting estimates: The Company has established specific accounting
policies and made specific accounting estimates with respect to the impairment of financial instruments, inventories,
depreciation of fixed assets, construction in progress, intangible assets, recognition of revenues and other
transactions and events according to its actual production and operation characteristics.
1. Statement of compliance with the Accounting Standards for Business Enterprises (“CASBEs”)
The financial statements prepared by the Company conform to the requirements of the CASBEs, and truly and
completely reflect the Company’s financial condition, operating results, cash flows and other related information.
2. Accounting period
The Company’s accounting year is from January 1 to December 31 of each calendar year.
3. Operating cycle
The Company has a relatively short operating cycle and determines the liquidity of assets and liabilities on the
basis of 12 months.
4. Functional currency
The Company adopts RMB as its functional currency, MFLEX adopts USD as its functional currency, and the
subsidiaries of MFLEX, Multek and other companies adopt the currencies of the main economic environment in
which they operate as their functional currencies.
5. Determination and basis for selection of materiality criteria
Applicable □N/A
Item Materiality criteria
Significant accounts receivable assessed for impairment loss Individual accounts receivable accounting for over 0.5% of the
individually total assets of the Company are recognized as significant
78
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
accounts receivable.
Significant written off accounts receivable Individual written off accounts receivable accounting for over
0.5% of the total assets of the Company are recognized as
significant written off accounts receivable.
Significant dividends receivable aged over one year Individual dividends receivable aged over one year and
accounting for over 0.5% of the total assets of the Company are
recognized as significant dividends receivable aged over one
year.
Significant constructions in progress Individual constructions in progress accounting for over 0.5% of
the total assets of the Company are recognized as significant
constructions in progress.
6. Accounting treatment of business combinations involving entities under common control and not under
common control
(1) Accounting treatment of business combinations involving entities under common control
Assets and liabilities acquired from a business combination by the Company are measured at the carrying value of
the assets and liabilities of the acquiree in the consolidated financial statements of the ultimate controller at the
combination date. The difference between the carrying value of the owners’ equity of the acquiree as stated in the
consolidated financial statements of the ultimate controller and the carrying value of the total consideration paid or
total par value of the shares issued in connection with the combination is treated as an adjustment to the capital
reserve. In case the capital reserve is not sufficient to absorb the difference, the remaining balance is charged against
the retained earnings.
(2) Accounting treatment of business combinations involving entities not under common control
Where the cost of the combination exceeds the Company’s share of the fair value of the acquiree’s net identifiable
assets, the difference is recognized as goodwill at the acquisition date. Where the cost of combination is lower than
the Company’s share of the fair value of the acquiree’s net identifiable assets, the Company reviews the
measurement of the fair value of each of the identifiable assets, liabilities and contingent liabilities acquired from
the acquiree and the cost of combination, and if the cost of combination as reviewed is still lower than the
Company’s share of the fair value of the acquiree’s net identifiable assets, the difference is recognized in profit or
loss.
7. Determination of control and method of preparation of consolidated financial statements
(1) Determination of control
Control means that the Company has power over the investee, exposure or rights to variable returns from its
involvement with the investee and the ability to use its power to affect the amount of those returns.
79
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
(2) Method of preparation of consolidated financial statements
The parent includes all of its controlled subsidiaries in its consolidated financial statements. The consolidated
financial statements are prepared by the parent in accordance with CASBE 33 “Consolidated Financial Statements”,
on the basis of the respective financial statements of the parent and its subsidiaries, by reference to other relevant
data.
8. Classification of joint arrangements and accounting treatment of joint operations
(1) Joint arrangements are classified as joint operations and joint ventures.
(2) When the Company is a party to a joint operation, the Company recognizes the following items relating to its interest in the joint
operation:
1) the assets individually held by the Company, and the Company’s share of the assets held jointly.
2) the liabilities incurred individually by the Company, and the Company’s share of the liabilities incurred jointly.
3) the Company’s revenue from the sale of its share of the output of the joint operation.
4) the Company’s share of revenue from the sale of assets by the joint operation.
5) the expenses incurred individually by the Company, and the Company’s share of the expenses incurred jointly.
9. Recognition of cash and cash equivalents
For the purpose of the statement of cash flows, cash comprises cash on hand and demand deposits, and cash
equivalents comprise short-term, highly liquid investments that are readily convertible into known amounts of cash
and which are subject to an insignificant risk of changes in value.
10. Translation of foreign currency transactions and foreign currency financial statements
(1) Translation of foreign currency transactions
Upon initial recognition, foreign currency transactions are translated into RMB using the approximate exchange
rates of spot exchange rates at the transaction dates. At the balance sheet date, monetary items denominated in
foreign currencies are translated into RMB using the spot exchange rates then prevailing. Exchange differences
arising from such translations are recognized in profit or loss, except for those attributable to foreign currency
borrowings that have been taken out specifically for the acquisition or construction of qualifying assets and accrued
interest. Non-monetary items denominated in foreign currencies that are measured at historical cost are translated
using the approximate exchange rates of spot exchange rates at the transaction dates, without adjusting the amounts
80
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
in RMB. Non-monetary items denominated in foreign currencies that are measured at fair value are translated using
the foreign exchange rates prevailing at the dates the fair value was determined, with the exchange differences
arising from such translations recognized in profit or loss or other comprehensive income.
(2) Translation of foreign currency financial statements
The asset and liability items in the balance sheet are translated at the spot exchange rates prevailing at the balance
sheet date. The owners’ equity items other than “retained profits” are translated at the spot exchange rates prevailing
at the transaction dates. The income and expense items in the income statement are translated at the approximate
exchange rates of spot exchange rates at the transaction dates. The differences arising from such translation of
foreign currency financial statements are recognized in other comprehensive income.
11. Financial instruments
1. Classification of financial assets and financial liabilities
Upon initial recognition, financial assets are classified as: (i) financial assets at amortized cost; (ii) financial assets
at fair value through other comprehensive income; and (iii) financial assets at fair value through profit or loss.
Upon initial recognition, financial liabilities are classified as: (i) financial liabilities at fair value through profit or
loss; (ii) financial liabilities arising as a result of the transfer of financial assets not meeting the criteria for
derecognition or continuing involvement in the financial assets transferred; (iii) financial guarantee contracts not
falling under items (i) and (ii), and loan commitments not falling under item (i) and below market interest rate; and
(iv) financial liabilities at amortized cost.
2. Recognition, measurement and derecognition of financial assets and financial liabilities
(1) Recognition and initial measurement of financial assets and financial liabilities
When the Company becomes a party to a financial instrument contract, a financial asset or liability is recognized.
Financial assets and liabilities are initially measured at fair value. Transaction costs relating to financial assets or
liabilities at fair value through profit or loss are directly recognized in profit or loss. Transaction costs relating to
other kinds of financial assets or liabilities are included in their initially recognized amount. However, the accounts
receivable that do not contain any significant financing component or are recognized by the Company without taking
into consideration the significant financing components under the contracts with a term of less than one year upon
initial recognition are initially measured at transaction price as defined in CASBE 14 “Revenue”.
(2) Subsequent measurement of financial assets
1) Financial assets at amortized cost
81
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Financial assets at amortized cost are subsequently measured at amortized cost using the effective interest method.
Gains or losses on financial assets at amortized cost that do not belong to any hedging relationship are recognized
in profit or loss upon derecognition, reclassification, amortization using the effective interest method, or recognition
of impairment.
2) Investments in debt instruments at fair value through other comprehensive income
Investments in debt instruments at fair value through other comprehensive income are subsequently measured at
fair value. Interest, impairment losses or gains and exchange gains or losses calculated using the effective interest
method are recognized in profit or loss, while other gains or losses are recognized in other comprehensive income.
Upon derecognition, the aggregate gains or losses previously recognized in other comprehensive income are
transferred to profit or loss.
3) Investments in equity instruments at fair value through other comprehensive income
Investments in equity instruments at fair value through other comprehensive income are subsequently measured at
fair value. Dividends received (other than those received as recovery of investment cost) are recognized in profit or
loss, while other gains or losses are recognized in other comprehensive income. Upon derecognition, the aggregate
gains or losses previously recognized in other comprehensive income are transferred to retained earnings.
4) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are subsequently measured at fair value. Gains or losses thereon,
including interest and dividend income, are recognized in profit or loss, except the financial assets belonging to any
hedging relationship.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading (including
derivatives classified as financial liabilities), and financial liabilities directly designated as at fair value through
profit or loss. Such financial liabilities are subsequently measured at fair value. Changes in the fair value of financial
liabilities designated as at fair value through profit or loss arising out of changes in the Company’s credit risk are
recognized in other comprehensive income, unless such treatment will result in or increase any accounting mismatch
in profit or loss. Other gains or losses on such financial liabilities, including interest expenses and changes in fair
value not arising out of changes in the Company’s credit risk, are recognized in profit or loss, except the financial
liabilities belonging to any hedging relationship. Upon derecognition, the aggregate gains or losses previously
recognized in other comprehensive income are transferred to retained earnings.
82
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
2) Financial liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition
or continuing involvement in the financial assets transferred
Such financial liabilities are measured in accordance with CASBE 23 “Transfer of Financial Assets”.
3) Financial guarantee contracts not falling under items 1) and 2), and loan commitments not falling under item 1)
and below the market interest rate
Such financial liabilities are subsequently measured at the higher of (i) allowance for impairment losses determined
according to the policy for impairment of financial instruments; and (ii) balance of the initially recognized amount
after deduction of the accumulated amortization determined in accordance with CASBE 14 “Revenue”.
4) Financial liabilities at amortized cost
Financial liabilities at amortized cost are subsequently measured at amortized cost using the effective interest
method. Gains or losses on financial liabilities at amortized cost that do not belong to any hedging relationship are
recognized in profit or loss upon derecognition or amortization using the effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
① the contractual right to receive cash flows from the financial assets has expired; or
② the financial assets have been transferred and such transfer meets the criteria for derecognition of financial assets
as set forth in CASBE 23 “Transfer of Financial Assets”.
2) A financial liability (or part thereof) is derecognized when all or part of the outstanding obligations thereunder
have been discharged.
3. Determination and measurement of financial assets transferred
When a financial asset of the Company is transferred, if substantially all the risks and rewards incidental to the
ownership of the financial asset have been transferred, the financial asset is derecognized, and the rights and
obligations incurred or retained in such transfer are separately recognized as assets or liabilities (as the case may
be); if the Company has retained substantially all the risks and rewards incidental to the ownership of the financial
asset, the Company continues to recognize the financial asset transferred. If the Company neither transferred nor
retained a substantial portion of all risks and rewards incidental to the ownership of the financial asset, then: (i) if
the Company does not retain control over the financial asset, the financial asset is derecognized, and the rights and
obligations incurred or retained in such transfer are separately recognized as assets or liabilities (as the case may
be); or (ii) if the Company retains control over the financial asset, the financial asset continues to be recognized to
83
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
the extent of the Company’s continuing involvement in the financial asset transferred, and a corresponding liability
is recognized.
If an entire transfer of a financial asset meets the criteria for derecognition, the difference between (i) the carrying
value of the financial asset transferred at the date of derecognition; and (ii) the sum of the consideration received
from the transfer and the portion of the cumulative amount of changes in fair value directly recorded as other
comprehensive income originally that corresponds to the part derecognized (where the financial asset transferred is
an investment in debt instruments at fair value through other comprehensive income) is recognized in profit or loss.
If part of a financial asset is transferred and the part transferred entirely meets the criteria for derecognition, the total
carrying value of the financial asset immediately prior to the transfer is allocated between the part derecognized and
the part not derecognized in proportion to their relative fair value at the date of transfer, and the difference between
(i) the carrying value of the part derecognized; and (ii) the sum of the consideration received from the transfer of
the part derecognized and the portion of the cumulative amount of changes in fair value directly recorded as other
comprehensive income originally that corresponds to the part derecognized (where the financial asset transferred is
an investment in debt instruments at fair value through other comprehensive income) is recognized in profit or loss.
4. Determination of fair value of financial assets and financial liabilities
The Company adopts the valuation techniques applicable to the current situations and with sufficient data available
and support of other information, to determine the fair value of financial assets and financial liabilities. The
Company classifies the inputs used by the valuation techniques in the following levels and uses them in turn:
(1) Level 1 inputs: quoted market price (unadjusted) in an active market for an identical asset or liability available
at the date of measurement.
(2) Level 2 inputs: inputs other than inputs included within Level 1 that are observable directly or indirectly. This
category includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar
assets or liabilities in inactive markets, observable inputs other than quoted prices (such as interest rate and yield
curves observable during regular intervals of quotation), and inputs validated by the market.
(3) Level 3 inputs: inputs that are unobservable. This category includes interest rate or stock volatility that cannot
be directly observed or validated by observable market data, future cash flows from retirement obligations incurred
in business combinations, and financial forecasts made using own data.
5. Impairment of financial instruments
The Company determines the impairment and assesses allowance for impairment of financial assets at amortized
cost, investments in debt instruments at fair value through other comprehensive income, contract assets, lease
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payments receivable, loan commitments other than financial liabilities designated at fair value through profit or loss,
and financial guarantee contracts other than financial liabilities designated at fair value through profit or loss and
financial liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition or
continuing involvement in the financial assets transferred, on the basis of expected credit losses.
Expected credit loss is the weighted average of credit losses on financial instruments taking into account the
possibility of default. Credit loss is the present value of the difference between all contractual cash flows receivable
under the contract and estimated future cash flows discounted at the original effective interest rate, i.e. the present
value of all cash shortages, where the Company’s purchased or originated financial assets that have become credit
impaired are discounted at their credit-adjusted effective interest rate.
With respect to purchased or originated financial assets that have become credit impaired, at the balance sheet date,
the Company recognizes an impairment loss equal to the cumulative amount of changes in lifetime expected credit
losses since initial recognition.
With respect to lease payments receivable, accounts receivable arising from transactions within the meaning of
CASBE 14 “Revenue”, the Company uses the simplified measurement method and recognizes an impairment loss
equal to the lifetime expected credit losses.
With respect to financial assets not using the measurement methods stated above, at each balance sheet date, the
Company assesses whether the credit risk has increased significantly since initial recognition, and recognizes an
impairment loss equal to the lifetime expected credit losses if the credit risk has increased significantly since initial
recognition, or to the expected credit losses within the next 12 months if the credit risk has not increased significantly
since initial recognition.
The Company uses reasonable and supportable information, including forward-looking information, and compares
the possibility of default at the balance sheet date with the possibility of default upon initial recognition, to determine
whether the credit risk of the financial instruments has increased significantly since initial recognition.
At the balance sheet date, if the Company determines that a financial instrument has low credit risk, the Company
assumes that its credit risk has not increased significantly since initial recognition.
The Company assesses expected credit risk and measures expected credit losses of financial instruments individually
or collectively. When assessing the financial instruments collectively, the Company includes the financial
instruments in different groups according to their common risk characteristics.
At each balance sheet date, the Company re-assesses the expected credit losses, with the amount of increase in or
reversal of impairment loss recognized in profit or loss as impairment losses or gains. With respect to a financial
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asset at amortized cost, its carrying value recorded in the balance sheet is written off against the impairment loss.
With respect to an investment in debt instruments at fair value through other comprehensive income, the Company
recognizes the impairment loss in other comprehensive income, without reducing its carrying value.
6. Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are offset and presented on a net basis in the balance sheet only if: (i) the
Company has a currently enforceable legal right to offset the recognized amounts; and (ii) the Company has an
intention to settle on a net basis or realize the assets and settle the liabilities simultaneously. Except as stated above,
financial assets and financial liabilities are presented in the balance sheet separately, without offsetting each other.
With respect to the transfer of financial assets not meeting the criteria for derecognition, the Company does not
offset the financial assets transferred against the relevant liabilities.
12. Notes receivable
13. Accounts receivable
14. Accounts receivable financing
15. Other receivables
16. Contract assets
Contract assets or contract liabilities are presented in the balance sheet according to the relationship between the
relevant performance obligations and payment by the customer. Contract assets and contract liabilities under the
same contract are presented on a net basis.
The right of the Company to payment that is unconditional, except for the passage of time, is presented as an account
receivable. The right of the Company to payment for goods already transferred to a customer is presented as a
contract asset if that right to payment is conditional on something other than the passage of time.
The Company’s obligation to transfer goods to a customer in exchange for the consideration paid or payable by the
customer is presented as a contract liability.
17. Inventories
1. Classification of inventories
Inventories include finished products or goods held for sale in the ordinary course of business, work in progress and
materials and goods consumed in the process of production or rendering of services.
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2. Valuation of inventories dispatched
The value of inventories dispatched is determined using the weighted average method at the end of the month in
which they were dispatched.
3. Inventory system
The perpetual inventory system is adopted.
4. Amortization of low-value consumables and packing materials
(1) Low-value consumables
Low-value consumables are amortized using the immediate write-off method.
(2) Packing materials
Packing materials are amortized using the immediate write-off method.
5. Inventory provision
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. An amount equal
to the cost of an inventory in excess of its net realizable value is recognized as an inventory provision. The net
realizable value of inventories held directly for sale is the estimated selling price of such inventories less the
estimated selling expenses and related taxes in the ordinary course of business. The net realizable value of
inventories to be further processed is the estimated selling price of finished goods less the estimated cost of
completion, estimated selling expenses and related taxes in the ordinary course of business. At the balance sheet
date, if part of an inventory has a contract price while the remaining part thereof does not have a contract price, the
net realizable value is determined separately, which is compared with their cost, to determine the amount of the
inventory provision recognized or reversed (as applicable).
18. Assets held for sale
19. Debt investments
20. Other debt investments
21. Long-term receivable
22. Long-term equity investments
1. Determination of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions
about the relevant activities require unanimous consent of the parties sharing control. Significant influence is the
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power to participate in the financial and operating policy-making of an entity, but is not control or joint control over
those policies.
2. Determination of investment cost
(1) For an equity investment acquired through a business combination involving entities under common control, if
the acquirer pays consideration for the business combination by cash, transfer of non-monetary assets, assumption
of liabilities or issuance of equity securities, the initial investment cost of the long-term equity investment is the
Company’s share of the carrying value of the owners’ equity of the acquiree in the consolidated financial statements
of the ultimate controller at the combination date. The difference between: (i) the initial investment cost of the long-
term equity investment; and (ii) the carrying value of the consideration paid for the combination or the total par
value of the shares issued (as applicable) is treated as an adjustment to the capital reserve. In case the capital reserve
is not sufficient to absorb the difference, the remaining balance is charged against the retained earnings.
If a business combination is affected through multiple transactions by steps that constitute a package deal, the
Company accounts for such transactions as one deal to gain control. If such transactions do not constitute a package
deal, the initial investment cost is the Company’s share of the carrying value of the owners’ equity of the acquiree
in the consolidated financial statements of the ultimate controller at the combination date; and the difference
between: (i) the initial investment cost of the long-term equity investment at the combination date; and (ii) the sum
of the carrying value of long-term equity investment before the combination and the carrying value of the
consideration paid for acquisition of the additional shares at the combination date is treated as an adjustment to the
capital reserve. In case the capital reserve is not sufficient to absorb the difference, the remaining balance is charged
against the retained earnings.
(2) For an equity investment acquired through a business combination involving entities not under common control,
the initial investment cost is the fair value of the aggregate consideration paid at the date of acquisition.
With respect to a long-term equity investment acquired through a business combination involving entities under
common control that is affected through multiple transactions by steps, the accounting thereof in the standalone
financial statements is different from that in the consolidated financial statements as stated below:
1) In the standalone financial statements, the sum of the carrying value of the equity investment originally held in
the acquiree and the additional investment cost incurred is recorded as the initial investment cost of the equity
investment changed into the cost method.
2) In the consolidated financial statements, if the transactions constitute a package deal, the Company accounts for
such transactions as one deal to gain control. If such transactions do not constitute a package deal, the equity held
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in the acquiree prior to the acquisition date is remeasured at its fair value at the acquisition date, with the difference
between its fair value and carrying value recognized as an investment income for the current period; if the equity
held in the acquiree prior to the acquisition date involves other comprehensive income under the equity method,
such other comprehensive income is transferred to the income for the period in which the acquisition date falls,
except for other comprehensive income arising from remeasurement of changes in net liabilities or net assets of
defined benefit plans.
(3) For an equity investment not acquired through business combination, the initial investment cost is the purchase
price actually paid if it is acquired by cash, or the fair value of the equity securities issued if it is acquired through
issuance of equity securities, or in accordance with CASBE 12 “Debt Restructuring” if it is acquired through debt
restructuring, or CASBE 7 “Exchange of Non-monetary Assets” if it is acquired through exchange of non-monetary
assets.
3. Subsequent measurement and recognition of profit or loss
Long-term equity investments in investees over which the Company exercises control are accounted for using the
cost method. Long-term equity investments in associates and joint ventures are accounted for using the equity
method.
4. Disposal of investment in a subsidiary through multiple transactions by steps until loss of control over the
subsidiary
(1) Criteria for determining a package deal
Where the Company loses control over a subsidiary due to the disposal of equity investment in the subsidiary
through multiple transactions by steps, the Company determines whether such transactions constitute a package
deal taking into account the transaction contract terms, consideration received, the transferee of the equity sold,
method of disposal, time of disposal and other information in respect of each step. If the terms, conditions and
financial effect of such transactions fall under one or more of the circumstances set forth below, such transactions
are accounted for as a package deal generally:
1) such transactions are concluded simultaneously or in consideration of their mutual effect.
2) such transactions will achieve a complete business result only as a whole.
3) the occurrence of a transaction depends on the occurrence of at least another transaction; and/or
4) a transaction may be uneconomical when considered individually, but is economical when considered together
with other transactions.
(2) Accounting treatment of transactions not constituting a package deal
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1) Standalone financial statements
The difference between the carrying value of the equity disposed of and the disposal proceeds actually received is
recognized in profit or loss. If the remaining equity empowers the Company to exercise significant influence or joint
control over the investee, the remaining equity is accounted for using the equity method; if the remaining equity
does not empower the Company to exercise control, joint control or significant influence over the investee, the
remaining equity is accounted for in accordance with CASBE 22 “Recognition and Measurement of Financial
Instruments”.
2) Consolidated financial statements
Before the loss of control, the difference between the disposal proceeds and the Company’s share of the net assets
of the subsidiary corresponding to the long-term equity investment disposed of as calculated continuously from the
acquisition date or combination date is treated as an adjustment to the capital reserve (capital premium). In case the
capital premium is not sufficient to absorb the difference, the remaining balance is charged against the retained
earnings.
Upon loss of control, the remaining equity is remeasured at its fair value at the date of loss of control. The sum of
the consideration received from the disposal of the equity and the fair value of the remaining equity, net of the
Company’s share of the net assets of the subsidiary as calculated continuously from the acquisition date according
to the original shareholding ratio, is included in the investment income for the period during which the control was
lost, and charged against goodwill. Other comprehensive income related to the equity investment in the subsidiary
is transferred to the investment income for the period during which the control was lost.
(3) Accounting treatment of transactions constituting a package deal
1) Standalone financial statements
The Company accounts for such transactions as one deal to dispose of and lose control over the subsidiary; however,
in the standalone financial statements, the difference between the proceeds from each disposal before loss of control
and the carrying value of the long-term equity investment corresponding to the equity disposed of is recognized in
other comprehensive income, which is wholly transferred to profit or loss in the period during which the control
was lost.
2) Consolidated financial statements
The Company accounts for such transactions as one deal to dispose of and lose control over the subsidiary; however,
in the consolidated financial statements, the difference between the proceeds from each disposal before loss of
control and the Company’s share of the net assets of the subsidiary corresponding to the equity disposed of is
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recognized in other comprehensive income, which is wholly transferred to profit or loss in the period during which
the control was lost.
23. Investment property
1. Investment properties include land use rights leased out or held for appreciation and buildings and structures
leased out.
2. An investment property is measured initially at cost, and subsequently using the cost model, and depreciated or
amortized using the same method as fixed assets and intangible assets.
24. Fixed assets
(1) Criteria for recognition
Fixed assets are tangible assets held for the production of goods, rendering of service, lease or operation and management with a
useful life of more than one accounting year. A fixed asset is recognized if the economic benefits relating to it are very likely to flow
to the Company and its cost can be reliably measured.
(2) Depreciation
Estimated useful life Rate of residual value Annual rate of
Category Method of depreciation
(years) (%) depreciation
Buildings and
Straight line method 20-30 5 3.17-4.75
structures
Machinery and
Straight line method 5-10 5 9.50-19.00
equipment
Transportation
Straight line method 5 5 19.00
equipment
Office equipment and
Straight line method 5 5 19.00
others
25. Construction in progress
1. A construction in progress is recognized if the economic benefits relating to it are very likely to flow to the
Company and its cost can be reliably measured. Construction in progress is measured at the actual cost incurred
before it is completed and ready for the intended use.
2. When a construction in progress is ready for intended use, it is transferred to fixed assets at its actual construction
cost. A construction in progress that is ready for intended use but the final settlement of which has not yet been
completed is transferred to fixed assets at estimated value first, and after the completion of the final settlement, the
estimated value is adjusted according to the actual cost, without adjusting the accumulated depreciation.
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Category Criteria and time for transfer of construction in progress to fixed assets
Meet the design requirements or agreed standards after installation and
Machinery and equipment
commissioning
Buildings and structures Meet the building completion acceptance criteria
26. Borrowing costs
1. Recognition of capitalization of borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are
capitalized as part of the cost of the asset when they meet the condition for capitalization. Other borrowing costs
are expensed when they are incurred and recognized in profit or loss.
2. Period of capitalization of borrowing costs
(1) A borrowing cost is capitalized when all of the following conditions are satisfied: (i) the expenditures on the
asset have already been incurred; (ii) the borrowing cost has already been incurred; and (iii) the acquisition,
construction or production activities necessary to prepare the asset for its intended use or sale have already
commenced.
(2) Capitalization of borrowing costs is suspended during the period of abnormal interruption of acquisition,
construction or production of a qualifying asset which lasts for more than three consecutive months. The borrowing
costs incurred during the period of suspension are recognized as expenses for the current period. The capitalization
of borrowing costs is suspended until the resumption of acquisition, construction or production activities.
(3) Capitalization of borrowing costs ceases when a qualifying asset acquired, constructed or produced gets ready
for its intended use or sale.
3. Rate and amount of capitalization of borrowing costs
For borrowings obtained specially for the acquisition, construction or production of a qualifying asset, the amount
of capitalization of the borrowing costs is the cost of the borrowings actually incurred in the current period
(including amortized discount or premium determined using the effective interest method) less the interest income
from the part of borrowings that has not yet been utilized and is deposited in banks or investment income from
temporary investment of the borrowings. For general borrowings occupied for the acquisition, construction or
production of a qualifying asset, the amount of borrowing costs eligible for capitalization is determined by
multiplying the weighted average of the excess of cumulative expenditures on the asset over the special-purpose
borrowings by the capitalization rate of the general borrowings occupied.
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27. Biological assets
28. Oil and gas assets
29. Intangible assets
(1) Useful life and basis for determination of useful life, estimates, method of amortization or review
procedure
1. Intangible assets, including land use rights, patents, non-patent technologies, etc., are initially measured at cost.
2. An intangible asset with a finite useful life is amortized in a systematic and reasonable manner according to the
pattern in which the economic benefits related to the intangible asset are expected to be realized, or if that pattern
cannot be determined reliably, using the straight-line method as follows:
Useful life and basis for determination of Method of
Item
useful life (years) amortization
Land use rights 50 Straight line method
Development expenses 5 Straight line method
Software 3 Straight line method
Trademarks and patents 10 Straight line method
Customer resources 10 Straight line method
Intangible asset with indefinite useful life is not amortized, but its useful life is reviewed annually.
(2) Scope and accounting treatment of research and development (R&D) expenses
3. Scope of R&D expenses
(1) Labor costs
Labor costs comprise the wages, salaries, basic pension insurance, basic medical insurance, unemployment,
worker’s compensation insurance, maternity insurance and housing provident fund contributions paid to or for the
R&D personnel, and service fees of the outsourced R&D personnel.
With respect to the R&D personnel serving a number of R&D projects concurrently, their labor costs are allocated
to the relevant R&D projects on a pro-rata basis according to the record of working hours spent by them in such
R&D projects as provided by the administrative department.
With respect to the Company’s own R&D personnel and outsourced R&D personnel who are directly engaged in
R&D activities and also engaged in non-R&D activities, their labor costs actually incurred are allocated between
R&D expenses and production and business expenses on a pro-rata basis in proportion to the percentage of working
hours spent by them on different posts as recorded, or otherwise reasonably.
(2) Direct costs
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Direct costs refer to the costs actually incurred by the Company in connection with R&D activities, including (i)
costs of materials, fuels and powers directly consumed; (ii) costs of development and fabrication of molds and
process equipment used in pilot trials and trial production, purchasing costs of samples, prototypes and general
testing methods not classified as fixed assets, and inspection costs of trial produces; and (iii) operation, maintenance,
calibration, inspection, testing, repair and other costs of instruments and equipment used in R&D activities.
(3) Depreciation expenses and long-term deferred expenses
Depreciation expenses refer to the depreciation expenses of instruments, equipment and buildings used in R&D
activities.
With respect to the instruments, equipment and buildings used in both R&D activities and non-R&D activities, the
depreciation expenses actually incurred are allocated between R&D expenses and production and business expenses
according to the actual working hours and area used as recorded, or otherwise reasonably.
Long-term deferred expenses refer to the long-term deferred expenses incurred in the alteration, modification,
renovation and repair of R&D facilities, which are recorded according to the amounts actually spent, and amortized
on a straight-line basis over the defined period.
(4) Amortization expenses of intangible assets
Amortization expenses of intangible assets refer to the amortization expenses of software, intellectual properties,
and non-patented technologies (know-how, licenses, designs, computing methods, etc.) used in R&D activities.
(5) Design costs
Design costs refer to the costs incurred in the design of processes, technical specifications, rules of operation and
operating features in connection with the concept, development and manufacturing of new products and new
processes, including the costs of creative design activities conducted for the purpose of developing innovative,
creative and breakthrough products.
(6) Equipment commissioning costs and testing costs
Equipment commissioning costs refer to the costs incurred during the equipment preparation phase of R&D
activities, including the costs of developing special-purpose production machines, changing production and quality
control procedures, developing new approaches and standards, etc.
The costs incurred for general equipment preparation and industrial engineering in connection with large-scale mass
and commercial production are excluded from the scope of aggregation.
Testing costs include clinical trial costs for the development of new drugs, field trial costs for exploration and
development technologies, field experiment costs, etc.
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(7) Outsourced R&D expenses
Outsourced R&D expenses refer to the expenses of R&D activities that the Company engages external entities or
individuals at home or abroad to conduct, provided that the results of such R&D activities will be owned by the
Company and such R&D activities are closely related to the primary business of the Company.
(8) Other expenses
Other expenses refer to the expenses that are not set forth above and directly related to R&D activities, including
the expenses of technical documents and data, translation, advisors and consultants, high and new technology R&D
insurance, retrieval, verification, evaluation, appraisal and acceptance inspection of R&D achievements, application,
registration and agency service in respect of intellectual properties, meetings, travel, communication, etc.
4. Expenditures on an internal R&D project at the research phase are recognized in profit or loss in the period in
which they are incurred. Expenditures on an internal R&D project at the development phase are recognized as an
intangible asset if: (i) it is technically feasible to complete the intangible asset so that it will be available for use of
sale; (ii) it is intended to complete the intangible asset so that it will be available for use of sale; (iii) the pattern in
which the intangible asset will generate economic results can demonstrate the existence of a market for the output
of the intangible asset or the intangible asset itself, or if it is to be used internally, the usefulness of the intangible
asset; (iv) there are sufficient technical, financial and other resources available to complete the development
activities and to use or sell the intangible asset; and (v) the expenditures attributable to the development of the
intangible asset can be reliably measured.
30. Impairment of long-term assets
With respect to long-term equity investments, investment properties at cost, fixed assets, construction in progress,
productive biological assets at cost, oil and gas assets, right-of-use assets, intangible assets with a finite useful life
and other long-term assets, if there’s an indication of impairment at the balance sheet date, the Company assesses
their recoverable amount. Goodwill arising from business combinations and intangible assets with an infinite useful
life are tested for impairment every year regardless of whether there’s an indication of impairment. Goodwill is
tested for impairment together with the relevant groups of assets or combinations of groups of assets.
If the recoverable amount of a long-term asset is less than its carrying value, the difference is measured as an
impairment loss on the asset and recognized in profit or loss.
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31. Long-term deferred expenses
Long-term deferred expenses are expenses that have already been incurred but should be amortized over a period
of more than one year. Long-term deferred expenses are stated as the amount actually incurred, and equally
amortized over the benefit period or established period. If an item of long-term deferred expenses will not benefit
the subsequent periods, the remaining unamortized balance of the item is wholly transferred to profit or loss.
32. Contract liabilities
Contract assets or contract liabilities are presented in the balance sheet according to the relationship between the
relevant performance obligations and payment by the customer. Contract assets and contract liabilities under the
same contract are presented on a net basis.
The Company’s rights to receive consideration from customers unconditionally (which depends only on the passage
of time) are presented as receivables, and the Company’s rights to receive consideration for goods transferred to
customers (which depends on factors other than the passage of time) are presented as contract assets.
The Company’s obligation to transfer goods to a customer in exchange for the consideration paid or payable by the
customer is presented as a contract liability.
33. Employee benefits
(1) Accounting treatment of short-term employee benefits
1. Employee benefits include short-term employee benefits, post-employment benefits, termination benefits and
other long-term employee benefits.
2. Accounting treatment of short-term employee benefits
The short-term employee benefits actually incurred are recognized as liabilities in the accounting period during
which employee services are rendered and included in profit or loss or the cost of related assets.
(2) Accounting treatment of post-employment benefits
Post-employment benefits are classified as defined contribution plans and defined benefit plans.
(1) In the accounting period during which employee services are rendered, the amount contributable as calculated
according to the defined contribution plan is recognized as liabilities and included in profit or loss or the costs of
related assets.
(2) The accounting treatment of a defined benefit plan generally involves the following steps:
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1) According to the projected unit credit method, use unbiased and consistent actuarial assumptions to estimate
demographic variables and financial variables, measure the obligation arising from the defined benefit plan and
determine the period to which the relevant obligation belongs. Meanwhile, discount the obligation arising from the
defined benefit plan, in order to determine the present value of the benefit plan obligation and the current service
cost.
2) If the defined benefit plan has assets, the deficit or surplus resulting after reducing the present value of the defined
benefit obligation by the fair value of the defined benefit plan is recognized as a net liability or asset of the defined
benefit plan. If the defined benefit plan has a surplus, the net assets of the defined benefit plan are measured at the
lower of surplus in the defined benefit plan and asset ceiling.
3) At the end of the current period, the cost of employee benefits arising from the defined benefit plan is recorded
as service cost, net interest on the net liabilities or net assets of the defined benefit plan, and changes arising from
remeasurement of the net liabilities or net assets of the defined benefit plan, where the service cost and the net
interest on the net liabilities or net assets of the defined benefit plan are included in profit or loss or the cost of
related assets, and the changes arising from remeasurement of the net liabilities or net assets of the defined benefit
plan are included in other comprehensive income, which will not be reversed to profit or loss in subsequent periods,
but may be transferred within the scope of equity.
(3) Accounting treatment of termination benefits
When the Company can no longer withdraw the offer of termination benefits as a result of termination of
employment or redundancy, or recognizes the restructuring costs or expenses relating to payment of termination
benefits, whichever the earlier, the employee benefit liabilities arising from recognition of termination benefits are
recognized in profit or loss.
(4) Accounting treatment of other long-term employee benefits
Other long-term employee benefits are accounted for in accordance with the provisions applicable to defined
contribution plans if they are qualified as defined contribution plans, otherwise, are accounted for in accordance
with the provisions applicable to defined benefit plans. In order to simplify the accounting, the total net amount of
the cost of employee benefits arising from the defined benefit plans that is recorded as service cost, net interest on
the net liabilities or net assets of the defined benefit plan, changes arising from remeasurement of the net liabilities
or net assets of the defined benefit plan and other components is included in profit or loss or the cost of related
assets.
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34. Provisions
1. Provisions are recognized when the Company has a present obligation as a result of any external guarantee,
litigations, product quality warranty, onerous contract or other contingencies, and it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation, and the amount of the obligation
can be reliably measured.
2. Provisions are initially measured according to the best estimates of the expenditures required to settle the related
present obligations. The carrying value of provisions is reviewed at the balance sheet date.
35. Share-based payments
1. Types of share-based payments
Share-based payments include equity-settled share-based payments and cash-settled share-based payments.
2. Accounting treatment of implementation, amendment and termination of share-based payment plans
(1) Equity-settled share-based payment
With respect to an equity-settled share-based payment that is granted in exchange for the services of employees, if
the right can be immediately exercised after the grant, at the date of the grant, the fair value of the equity instruments
is included in the relevant costs or expenses, and the capital reserve is adjusted accordingly; if the right may not be
exercised until the vesting period comes to an end or until the specified performance conditions are met, at each
balance sheet date within the vesting period, the services received in the current period are, based on the best
estimate of the exercisable equity, included in the relevant costs or expenses at the fair value of the equity
instruments at the date of grant, and the capital reserve is adjusted accordingly.
An equity-settled share-based payment that is granted in exchange for the services of any other party is measured
at fair value at the date of receipt of such services if the fair value of such services can be reliably measured, or at
the fair value of the equity instruments at the date of receipt of such services if the fair value of such services cannot
be reliably measured but the fair value of the equity instruments can be reliably measured. The services are included
in the relevant costs or expenses, and the owners’ equity is increased accordingly.
(2) Cash-settled share-based payment
With respect to a cash-settled share-based payment that is granted in exchange for the services of employees, if the
right can be immediately exercised after the grant, at the date of grant, the fair value of the liability undertaken by
the Company is included in the relevant costs or expenses, and the liabilities are increased accordingly; if the right
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may not be exercised until the vesting period comes to an end or until the specified performance conditions are met,
at each balance sheet date within the vesting period, the services received in the current period are, based on the
best estimate about the exercisable right, included in the relevant costs or expenses and the corresponding liabilities
at the fair value of the liability undertaken by the Company.
(3) Amendment and termination of share-based payment plans
If such amendment results in an increase in the fair value of the equity instruments granted, the Company recognizes
a corresponding increase in the services received according to the increase in the fair value of the equity instruments.
If such amendment results in an increase in the number of the equity instruments granted, the Company recognizes
a corresponding increase in the services received according to the fair value of the additional equity instruments
granted. If the Company amends the vesting conditions in a manner favorable to the employees, the Company will
take into account the vesting conditions as amended in the accounting thereof.
If such amendment results in a decrease in the fair value of the equity instruments granted, the Company continues
to recognize the services received based on the fair value of the equity instruments at the date of grant, without
taking into account the decrease in the fair value of the equity instruments. If such amendment results in a decrease
in the number of the equity instruments granted, the portion of the equity instruments reduced is deemed canceled.
If the Company amends the vesting conditions in a manner unfavorable to the employees, the Company will not
take into account the vesting conditions as amended in the accounting thereof.
If, during the vesting period, the Company cancels or settles any equity instruments granted (except for those
canceled due to failure to satisfy the vesting conditions), such cancellation or settlement is treated as an acceleration
of vesting, and the amount that would have been recognized in the remaining vesting period is recognized
immediately.
36. Preferred shares, perpetual bonds and other financial instruments
37. Revenue
Accounting policies for recognition and measurement of revenue disclosed by business type
1. Revenue recognition principle
At contract commencement, the Company assesses a contract to identify each single performance obligation
included in the contract and whether such performance obligation shall be satisfied over time or at a point in time.
A performance obligation shall be satisfied over time if it meets one of the following conditions, otherwise, it shall
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be satisfied at a point in time: (i) the customer simultaneously receives and consumes the benefits provided by the
Company’s performance; (ii) the customer can control the work in process created during the Company’s
performance; or (iii) the Company’s performance does not create the goods with an alternative use to the Company
and the Company has an enforceable right to payment for performance completed to date.
With respect to a performance obligation satisfied over time, the Company recognizes revenue over time by
measuring the progress toward complete satisfaction of that performance obligation. If the Company is unable to
reasonably measure the progress of a performance obligation, but expects to recover the costs incurred in satisfying
the performance obligation, the Company recognizes revenue only to the extent of the costs incurred until such time
that it can reasonably measure the progress of the performance obligation. With respect to a performance obligation
satisfied at a point in time, the Company recognizes revenue when the customer obtains control of the relevant
goods or services. In determining whether the customer has obtained control of any goods, the Company considers
the following indicators: (i) the Company has a present right to payment for the goods, i.e. the customer presently
is obliged to pay for the goods; (ii) the Company has transferred the legal title to the goods to the customer, i.e. the
customer has the legal title to the goods; (iii) the Company has transferred physical possession of the goods to the
customer, i.e. the customer physically possesses the goods; (iv) the Company has passed the significant risks and
rewards of ownership of the goods to the customer, i.e. the customer has the significant risks and rewards of
ownership of the goods; (v) the customer has accepted the goods; and (vi) other indicators showing that the customer
has obtained control of the goods.
2. Revenue measurement principle
(1) The Company measures revenue according to the transaction price allocated to each performance obligation.
Transaction price is the amount of consideration to which the Company expects to be entitled in exchange for
transferring the relevant goods or services to a customer, excluding the amounts collected on behalf of third parties
or expected to be returned to the customer.
(2) If a contract has any variable consideration, the Company determines the best estimate of the variable
consideration according to the expected value or the most likely amount, but the Company shall include in the
transaction price some or all of an amount of variable consideration only to the extent that it is probable that a
significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated
with the variable consideration is subsequently resolved.
(3) If a contract contains a significant financing component, the Company determines the transaction price according
to the amount that the customer would have paid for the goods or services if it had paid cash when it obtained control
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of the goods or services. The difference between such transaction price and the contract consideration is amortized
over the term of the contract using the effective interest method.
(4) If a contract includes two or more performance obligations, at contract commencement, the Company allocates
the transaction price to each performance obligation on a relative standalone selling price basis.
3. Methods of revenue recognition
The Company is primarily engaged in the sale of PCBs, LED display devices, touch panels and LCMs, precision
components and other products, the revenues from which constitute performance obligations to be satisfied at a
point in time. Revenue from sale of products on the domestic market is recognized when the Company has delivered
the products to the agreed place of delivery which has been accepted by the customer, has received or has a present
right to payment for the products, and it is probable that the economic benefits associated with the transaction will
flow to the Company. Revenue from sale of products on the overseas market is recognized when the products
delivered by the Company pursuant to the contract have been cleared through customs, and the Company has
received the relevant export declaration form and bill of lading, has received or has a present right to payment for
the products, and it is probable that the economic benefits associated with the transaction will flow to the Company.
Different methods of revenue recognition and measurement for the same business type adopts different business
models.
38. Contract costs
Contract acquisition costs, i.e. the incremental cost of acquiring a contract, are recognized as an asset if they are
expected to be recovered, and if the amortization period is no more than one year, are directly recorded in profit or
loss in the period in which they are incurred.
Contract performance costs, i.e. the costs of fulfilling a contract, are recognized as an asset if they are not addressed
by the standards on inventories, fixed assets and intangible assets and meet all of the following conditions:
1. the costs relate directly to a contract or to an anticipated contract, including direct labor, direct material,
manufacturing costs (or similar costs), costs that are explicitly chargeable to the relevant customer under the contract
and other costs incurred solely in connection with the contract.
2. the costs enhance the resources of the Company that will be used in satisfying the performance obligations in the
future; and
3. the costs are expected to be recovered.
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The assets related to contract costs are amortized on the same basis as the recognition of revenues from goods or
services related to such assets and recognized in profit or loss.
The portion of the carrying value of an asset related to contract costs in excess of the remaining consideration
receivable from the transfer of goods or services related to such asset less the estimated costs that are expected to
be incurred is recognized as an impairment loss. If, as a result of changes in the factors of impairment in the previous
periods, the remaining consideration receivable from the transfer of goods or service related to such asset less the
estimated costs that are expected to be incurred exceeds the carrying value of such asset, the impairment loss is
reversed through profit or loss, provided that the carrying value of the reversed asset shall not exceed its carrying
value at the reversal date assuming such impairment loss were not recognized.
39. Government grants
1. Government grants are recognized if (i) the Company meets the conditions attached to the government grants;
and (ii) the Company will receive the government grants. Government grants in the form of monetary assets are
measured at the amount received or receivable. Government grants in the form of non-monetary assets are measured
at fair value, or if their fair value is unavailable, at a nominal amount.
2. Determination and accounting treatment of government grants related to assets
Government grants related to assets are government grants which are offered for purchasing, constructing or
otherwise acquiring long-term assets as provided by the applicable government documents, or in the absence of
such express provision in the applicable government documents, whose primary condition is that the Company
should purchase, construct or otherwise acquire long-term assets. Government grants related to assets are offset
against the carrying value of the relevant assets or recognized as deferred income. Government grants related to
assets recognized as deferred income are included in profit or loss over the service life of the relevant assets on a
reasonable and systemic basis. Government grants measured at nominal amount are directly recognized in profit or
loss. In case of a sale, transfer, retirement or damage of the relevant assets before the end of the intended service
life, the balance of the unallocated deferred income is transferred to profit or loss for the period in which the assets
are disposed of.
3. Determination and accounting treatment of government grants related to income
Government grants related to income are government grants other than those related to assets. Government grants
related to both assets and income where it is difficult to make a distinction between the portion related to assets and
the portion related to income are wholly classified as government grants related to income. Government grants
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related to income as compensation for expenses or losses to be incurred in subsequent periods are recognized as
deferred income and in the period for recognizing the relevant costs, expenses or losses, included in profit or loss
or offset against the relevant costs. Government grants related to income as compensation for expenses or losses
already incurred are directly included in profit or loss or offset against the relevant costs.
4. Government grants related to day-to-day operations of the Company are recognized in other income or offset
against the relevant costs and expenses depending on the nature of economic business. Government grants not
related to day-to-day operations of the Company are recognized in non-operating revenues or expenses.
5. Accounting treatment of policy loan interest subsidy
If the financial authority directly appropriates any interest subsidy to the Company, the interest subsidy is recognized
as a reduction in the borrowing cost.
40. Deferred tax assets and deferred tax liabilities
1. The difference between the tax base of an asset or liability and its carrying value, or in case of an item not
recognized as an asset or liability whose tax base can be determined according to the applicable tax law, the
difference between its tax base and carrying value, is recognized as a deferred tax asset or deferred tax liability
according to the tax rate applicable to the period in which the asset or liability is expected to be recovered or settled.
2. Deferred tax assets are recognized to the extent of the amount of income tax payable that will be available in
future periods against which deductible temporary differences are deductible. At the balance sheet date, deferred
tax assets not recognized in previous periods are recognized if there’s conclusive evidence that it is probable that
sufficient taxable income will be available in future periods against which the deductible temporary differences are
deductible.
3. At the balance sheet date, the carrying value of deferred tax assets is reviewed and written down to the extent that
it is no longer probable that sufficient taxable income will be available in future periods to allow the benefit of the
deferred tax assets to be utilized. If it is probable that sufficient taxable income will be available, the amount of
write-down is reversed.
4. The income taxes and deferred income taxes are included in profit or loss as income tax expenses or gains, except
the income taxes arising from any: (i) business combination; or (ii) transaction or event directly recognized in
owners’ equity.
5. Deferred income tax assets and deferred income tax liabilities are offset and presented on a net basis if: (i) the
Company has a legal right to settle current tax assets and current tax liabilities on a net basis; and (ii) the deferred
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tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority on either the same
taxable entity or different taxable entities which intend either to settle current tax assets and current tax liabilities
on a net basis or to realize the assets and liabilities simultaneously, in each future period in which significant
amounts of deferred tax assets or liabilities are expected to be reversed.
41. Leases
(1) Accounting treatment of leases under which the Company is lessee
1. The Company as the lessee:
At the lease commencement date, a lease that has a lease term of 12 months or less and does not contain a purchase
option is a short-term lease. A lease of an asset with a low value when new is a lease of a low-value asset. Where
the Company subleases or expects to sublease a leased asset, the original lease is not classified as a lease of a low-
value asset.
Except short-term leases and leases of low-value assets, at the lease commencement date, the Company recognizes
right-of-use assets and lease liabilities for the lease.
(1) Right-of-use assets
A right-of-use asset is a lessee’s right to use an asset over the life of a lease.
At the lease commencement date, a right-of-use asset is initially measured at cost, which comprises: (i) the amount
of the lease liability initially measured; (ii) any lease payments made at or before the commencement date, less any
lease incentives received; (iii) any initial direct costs incurred by the lessee; and (iv) estimated costs to be incurred
by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring
the underlying asset to the condition required by the terms and conditions of the lease.
The Company depreciates the right-of-use assets using the straight-line method. If it is reasonable to be certain that
the ownership of an underlying asset can be acquired by the end of the lease term, the Company depreciates the
right-of-use asset over its remaining useful life. Otherwise, the Company depreciates the right-of-use asset over the
shorter of the lease term and its remaining useful life.
(2) Lease liabilities
At the lease commencement date, the Company measures a lease liability at the present value of the lease payments
that have not been paid at that date. The present value of lease payments is determined using the interest rate implicit
in the lease as the discount rate. If that rate cannot be readily determined, the lessee’s incremental borrowing rate is
used. The difference between the lease payments and their present value is unrecognized financing costs. Interest
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expenses are measured for each period within the lease term using the discount rate for determining the present
value of lease payments, and recognized in profit or loss. Variable lease payments not included in the measurement
of lease liabilities are recognized in profit or loss in the period during which they are incurred.
At the lease commencement date, if there are changes in the in-substance fixed lease payments, amounts expected
to be payable under residual value guarantee, the index or rate used to determine the lease payments, the result of
an assessment of purchase option, renewal option or termination option or the actual exercise of such options, the
Company re-measures the lease liability based on the present value of lease payments as adjusted, and adjusts the
carrying value of the right-of-use assets accordingly. If the carrying value of the right-of-use asset is reduced to zero,
but the lease liability needs to be further reduced, the balance is recognized in profit or loss.
(2) Accounting treatment of leases under which the Company is lessor
2. The Company as the lessor:
At the lease commencement date, the Company classifies a lease that transfers substantially all the risks and rewards
incidental to ownership of an underlying asset to the lessee as a finance lease, and all other leases as operating leases.
(1) Operating lease
Lease receipts are recognized as lease income using the straight-line method over the lease term. Initial direct costs
incurred are capitalized, amortized on the same basis as the recognition of lease income, and recognized in profit or
loss by installments. Variable lease payments related to the operating lease which are not included in the lease
receipts are recognized in profit or loss in the period during which they are incurred.
(2) Finance lease
At the lease commencement date, the Company recognizes the finance lease payments receivable based on the net
investment in the lease (equal to the sum of unguaranteed residual value and the present value of lease receipts that
are not received at the lease commencement date and discounted using the Company’s incremental interest rate),
and derecognizes the assets held under the finance lease. The Company calculates and recognizes interest income
using the interest rate implicit in the lease over the lease term.
Variable lease payments that are not included in the measurement of the net investment in a lease are recognized in
profit or loss when they are incurred.
3. Sale and leaseback
(1) The Company as lessee
In accordance with CASBE 14 - Revenue, the Company assesses and determines whether the transfer of any asset
in a sale and leaseback transaction should be accounted for as a sale of that asset.
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If the transfer of an asset is accounted for as a sale of the asset, the Company measures the right-of-use asset arising
from the leaseback at the proportion of the original carrying value of the asset that relates to the right of use retained
by the Company. Accordingly, the Company recognizes only the amount of any gain or loss that relates to the rights
transferred to the lessor.
Otherwise, the Company continues the recognition of the transferred asset, and recognizes a financial liability equal
to the amount of transfer proceeds in accordance with CASBE 22 - Financial Instruments: Recognition and
Measurement at the same time.
(2) The Company as lessor
In accordance with CASBE 14 - Revenue, the Company assesses and determines whether the transfer of any asset
in a sale and leaseback transaction should be accounted for as a sale of that asset.
If the transfer of an asset is accounted for as a sale of the asset, the Company accounts for the purchase of assets in
accordance with other applicable standards, and accounts for the lease of assets in accordance with CASBE 21 -
Leases.
Otherwise, the Company does not recognize the transferred asset, and instead recognizes a financial asset equal to
the amount of transfer proceeds in accordance with CASBE 22 - Financial Instruments: Recognition and
Measurement.
42. Other Significant accounting policies and accounting estimates
1. Basis for the adoption of hedge accounting and its accounting treatment
(1) Cash flow hedge.
(2) A hedging relationship qualifies for hedge accounting if all of the following conditions are met: (i) the hedging
relationship consists only of eligible hedging instruments and eligible hedged instruments; (ii) at the commencement
of the hedge there is formal designation of hedging instruments and hedged item, and documentation of the hedging
relationship and the Company’s risk management objective and strategy for undertaking the hedge; and (iii) the
hedging relationship meets the hedging effectiveness requirements.
The Company recognizes that the hedging relationship meets effectiveness requirements if all of the following
conditions are met: (i) there is an economic relationship between the hedged item and the hedging instruments; (ii)
the effect of credit risk does not dominate the value changes that result from the economic relationship between the
hedged item and the hedging instruments; and (iii) the hedge ratio of the hedging relationship is the same as the
ratio of the quantity of the hedged item that the Company actually hedges to the number of hedging instruments that
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the Company actually uses to hedge such hedged item, but does not reflect an imbalance between the weightings of
the hedged item and the hedging instrument.
The Company assesses whether a hedging relationship meets the hedge effectiveness requirements at
commencement and on an ongoing basis. If a hedging relationship ceases to meet the hedge effectiveness
requirement relating to the hedge ratio but the risk management objective for that designated hedging relationship
remains the same, the hedging relationship will be rebalanced.
(3) Hedge accounting
1) Fair value hedge
① The gain or loss on a hedging instrument is recognized in profit or loss (or other comprehensive income, if the
hedging instrument hedges a non-trading equity instrument (or a component thereof) at fair value through other
comprehensive income).
② The gain or loss on a hedged item arising from risk exposure is recognized in profit or loss, with a corresponding
adjustment to the book balance of the hedged item not measured at fair value. If the hedged item is a financial asset
(or a component thereof) that is measured at fair value through other comprehensive income in accordance with
Article XVIII of CASBE 22 “Financial Instruments: Recognition and Measurement”, the gain or loss arising from
the risk exposure on the hedged item is recognized in profit or loss, without adjusting its book balance which has
already been measured at fair value; if the hedged item is a non-trading equity instrument (or a component thereof)
for which the Company has elected to present changes at fair value through other comprehensive income, the gain
or loss arising from the risk exposure on the hedged item is recognized in profit or loss, without adjusting its book
balance which has already been measured at fair value.
When a hedged item is an unrecognized firm commitment (or a component thereof), the cumulative change in fair
value of the hedged item subsequent to its designation is recognized as an asset or a liability with a corresponding
gain or loss recognized in profit or loss. When a firm commitment is performed to acquire an asset or assume a
liability, the initial book balance of the asset or the liability is adjusted to include the cumulative change in fair value
of the hedged item that was previously recognized.
For a hedged item that is a financial instrument (or a component thereof) measured at amortized cost, any adjustment
on the book balance of the hedged item is amortized to profit or loss based on a recalculated effective interest rate
at the date that amortization begins. For a financial asset (or a component thereof) that is a hedged item and measured
at fair value through other comprehensive income in accordance with Article XVIII of CASBE 22 “Financial
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Instruments: Recognition and Measurement”, the cumulative gain or loss previously recognized thereon is
amortized in the same manner, and recognized in profit or loss, without adjusting its book balance.
2) Cash flow hedges
① The portion of the gain or loss on a hedging instrument that is determined to be an effective hedge is recognized
in other comprehensive income as cash flow hedge reserve, while the ineffective portion is recognized in profit or
loss. The cash flow hedge reserve is recognized at the lower of the following (in absolute amount): (i) the cumulative
gain or loss on the hedging instrument from the commencement of the hedge; and (ii) the cumulative change in the
present value of the estimated future cash flows of the hedged item from the commencement of the hedge.
② If a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-financial
liability, or a hedged forecast transaction for a non-financial asset or non-financial liability becomes a firm
commitment for which fair value hedge accounting is applied, the Company transfers out the amount of cash flow
hedge reserve previously recognized in other comprehensive income and includes it in the initial cost of the asset
or the liability.
③ For other cash flow hedges, the amount of cash flow hedge reserve previously recognized in other comprehensive
income is transferred to profit or loss in the same period the hedged forecast sale affects profit or loss.
3) Hedges of a net investment in a foreign operation
The portion of the gain or loss on a hedging instrument that is determined to be an effective hedge is recognized in
other comprehensive income and reclassified from other comprehensive income into profit or loss on the disposal
of the foreign operation, while the ineffective portion is recognized in profit or loss.
2. Accounting treatment related to share repurchase
When the Company repurchases its shares for the purpose of reducing its registered capital, rewarding its employees
or otherwise, if the purchased shares are to be held as treasury shares, the treasury shares are recorded at the amount
actually paid and the relevant filing procedures are performed; if the repurchased shares are to be retired, the
difference between the total book value of the shares retired and the amount actually paid therefore is recognized as
a reduction in capital reserve, and if the capital reserve is not sufficient to absorb the difference, the remaining
balance is charged against the retained earnings. If the repurchased shares are granted to the employees as equity-
settled share-based payments, the purchase price paid by the employees upon exercise of their rights is recognized
as a reduction in the cost of the relevant treasury shares vested in the employees and capital reserve (other capital
reserve) accumulated within the vesting period, with a corresponding adjustment to capital reserve (share premium).
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43. Significant changes in accounting policies and accounting estimates
(1) Significant changes in accounting policies
□Applicable N/A
(2) Changes in significant accounting estimates
□Applicable N/A
(3) Adjustment of the opening balance of related financial statement items due to the initial adoption of new accounting
standards since 2024
□Applicable N/A
VI. Taxation
1. Main categories of taxes and tax rates
Category of tax Tax base Tax rate
The output tax is calculated based on
revenue from sales of goods or rendering
13%, 6% or 7%-25% (for the Company’s
Value-added tax of services in accordance with the tax
overseas subsidiaries)
law, net of the input tax deductible in the
current period
Urban maintenance and construction tax Amount of turnover tax actually paid 5% or 7% (China)
15%, 16.50%, 25%, 0, 21%, 0.75%-
Enterprise income tax Amount of taxable income 8.84%, 17%, 10%, 20%, 20.6%, 24% or
30%
If levied on the basis of price, 1.2% *
70% of the original value of the property;
Property tax 1.2% or 12% (China)
if levied on the basis of rental, 12% of
the lease income
Education surcharge Amount of turnover tax actually paid 3% (China)
Local education surcharge Amount of turnover tax actually paid 2% (China)
Different rates of enterprise income tax applicable to the taxpayers:
Taxpayer Income tax rate
The Company, Yongchuang Tech, Mutto Optronics, MFLEX
Yancheng, Yancheng Dongshan, Dongguan Dongshan Precision
Manufacturing Co., Ltd., RF Top Electronic, Suzhou Chengjia, 15.00%
Yancheng Mutto Optronics Science and Technology Co., Ltd.
and Suzhou Dongdai Electronic Tech Co Ltd.
Hong Kong Dongshan and other companies incorporated in
16.50%
Hong Kong
Mutto Optronics Group Limited, Mflex Delaware, Inc., The Dii
0
Group (BVI) Co. Limited
Multi-Fineline Electronix, Inc. and other companies Federal corporate income tax rate, 21%; state corporate income
incorporated in the United States tax rate, 0.75%-8.84%
Multi-Fineline Electronix Singapore Ptd. Ltd. and other 17% (Singapore)
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companies incorporated in Singapore
Multek Technologies Limited 15% (enjoying an 80% tax exemption)
Multek Technology Sweden AB 20.6% (Sweden)
Multek Technology Malaysia SDN.BHD 24% (Malaysia)
DSBJ Mexico, S.DER.L.DEC.V. and other companies in
30.00%
Mexico
Other taxpayers not listed above 25.00%
2. Tax preferences
1. Pursuant to the Notice on Publishing the Filing of the Third Batch of High and New Technology Enterprises
Recognized by the Recognition Authority of Jiangsu Province in 2022 issued by the Office of the National Leading
Group for Recognition Management of High and New Technology Enterprises, the Company and its subsidiaries
Mutto Optronics, Yancheng Dongshan, Yancheng Dongshan Communication Technology Co., Ltd. and MFLEX
Yancheng passed the high and new technology enterprise qualification review with a term of three years from 2022
to 2024, and therefore are subject to an enterprise income tax rate of 15% for the current period.
2. Pursuant to the Notice on Publishing the Filing of the Fourth Batch of High and New Technology Enterprises
Recognized by the Recognition Authority of Jiangsu Province in 2022 issued by the Office of the National Leading
Group for Recognition Management of High and New Technology Enterprises, the Company’s wholly-owned
subsidiary Suzhou Chengjia passed the high and new technology enterprise qualification review with a term of three
years from 2022 to 2024, and therefore is subject to an enterprise income tax rate of 15% for the current period.
3. Pursuant to the Notice on Publishing the Filing the Second Batch of High and New Technology Enterprises
Recognized by the Recognition Authority of Jiangsu Province in 2022 issued by the Office of the National Leading
Group for Recognition Management of High and New Technology Enterprises, the Company’s subsidiary EF Top
Electronic passed the high and new technology enterprise qualification review with a term of three years from 2022
to 2024, and therefore is subject to an enterprise income tax rate of 15% for the current period.
4. Pursuant to the Notice on the Filing of the Third Batch of High and New Technology Enterprises of Jiangsu
Province in 2021, the Company’s wholly owned subsidiary Yancheng Mutto Optronics Science and Technology
Co., Ltd. passed the high and new technology enterprise qualification review with a term of three years from 2021
to 2023, and therefore is subject to an enterprise income tax rate of 15% for the current period.
5. The Company’s subsidiary Suzhou Dongdai Electronic Tech Co., Ltd. was listed in the Notice on Publishing the
Filing of the Second Batch of High and New Technology Enterprises Recognized by the Recognition Authority of
Jiangsu Province in 2023 issued by the Office of the National Leading Group for Recognition Management of High
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and New Technology Enterprises, and temporarily paid enterprise income tax at the rate of 15% for the current
period.
6. Multek Technologies Limited is subject to a corporate income tax rate of 15% under the Mauritius Corporate
Income Tax Act, and as a global Class I company incorporated in Mauritius but operating abroad, enjoys an 80%
tax exemption, so its effective corporate income tax rate is 3%.
VII. Notes to Items of the Consolidated Financial Statements
1. Cash and bank balances
In RMB
Item Closing balance Opening balance
Cash on hand 426,978.14 559,941.39
Bank deposits 6,050,927,116.10 5,874,124,506.28
Other cash and bank balances 1,903,122,502.45 1,315,351,783.39
Total 7,954,476,596.69 7,190,036,231.06
Incl.: Total amounts deposited
2,013,943,521.50 1,917,732,423.09
abroad
2. Financial assets held for trading
In RMB
Item Closing balance Opening balance
Financial assets at fair value through
140,916,032.21 146,141,371.77
profit or loss
Incl.:
Investments in equity instruments 69,320,128.82 71,779,147.66
Derivatives 25,782,508.65 26,920,185.50
Wealth management products 45,813,394.74 47,442,038.61
Total 140,916,032.21 146,141,371.77
3. Derivative financial assets
4. Notes receivable
(1) Notes receivable by category
In RMB
Item Closing balance Opening balance
Commercial acceptance bills 25,236,878.62 3,407,623.49
Total 25,236,878.62 3,407,623.49
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
(2) Notes receivable by method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for Allowance for
Item Book balance Carrying Book balance Carrying
doubtful accounts doubtful accounts
value value
Amount % Amount % Amount % Amount %
Incl.:
Notes
receivab
le with
allowanc
25,363,6 126,818. 25,236,8 3,424,74 17,123.7 3,407,62
e 100.00% 0.50% 100.00% 0.50%
97.11 49 78.62 7.23 4 3.49
recogniz
ed
collectiv
ely
Incl.:
Commer
cial 25,363,6 126,818. 25,236,8 3,424,74 17,123.7 3,407,62
100.00% 0.50% 100.00% 0.50%
acceptan 97.11 49 78.62 7.23 4 3.49
ce bills
25,363,6 126,818. 25,236,8 3,424,74 17,123.7 3,407,62
Total 100.00% 0.50% 100.00% 0.50%
97.11 49 78.62 7.23 4 3.49
Notes receivable with allowance for doubtful accounts recognized collectively by category name:
In RMB
Closing balance
Name Allowance for doubtful
Book balance %
accounts
Group of commercial
25,363,697.11 126,818.49 0.50%
acceptance bills
Total 25,363,697.11 126,818.49
(3) Allowance for doubtful accounts recognized, recovered or reversed in the current period
Allowance for doubtful accounts recognized in the current period:
In RMB
Changes in the current period
Opening
Item Recovered or Closing balance
balance Recognized Written off Others
reversed
Allowance
recognized 17,123.74 109,694.75 126,818.49
collectively
Total 17,123.74 109,694.75 126,818.49
112
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
(4) Notes receivable pledged at the end of the current period
(5) Notes receivable already endorsed or discounted but not yet become due at the balance sheet date
In RMB
Amount derecognized at the end of the Amount not derecognized at the end of
Item
current period the current period
Commercial acceptance bills 100,176,665.82 10,645,152.55
Total 100,176,665.82 10,645,152.55
5. Accounts receivable
(1) Accounts receivable by age
In RMB
Age Closing book balance Opening book balance
Within 1 year (inclusive) 6,476,338,431.58 7,522,771,106.29
Within 6 months 6,280,494,927.37 7,444,151,188.36
7-12 months 195,843,504.21 78,619,917.93
1-2 years 198,670,931.92 285,296,373.77
2-3 years 110,639,020.27 16,989,211.39
Over 3 years 216,418,943.15 369,089,730.68
3-4 years 27,223,572.75 275,176,513.49
4-5 years 129,652,448.32 53,209,221.21
Over 5 years 59,542,922.08 40,703,995.98
Total 7,002,067,326.92 8,194,146,422.13
(2) Accounts receivable by method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for Allowance for
Item Book balance Carrying Book balance Carrying
doubtful accounts doubtful accounts
value value
Amount % Amount % Amount % Amount %
Account
s
receivab
le with
allowanc 51,959,8 51,295,1 664,748. 221,542, 220,877, 664,748.
0.74% 98.72% 2.70% 99.70%
e 68.70 20.00 70 640.42 891.72 70
recogniz
ed
individu
ally
Incl.:
Account 6,950,10 315,923, 6,634,18 7,972,60 260,103, 7,712,50
99.26% 4.55% 97.30% 3.26%
s 7,458.22 437.57 4,020.65 3,781.71 758.36 0,023.35
113
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
receivab
le with
allowanc
e
recogniz
ed
collectiv
ely
Incl.:
7,002,06 367,218, 6,634,84 8,194,14 480,981, 7,713,16
Total 100.00% 5.24% 100.00% 5.87%
7,326.92 557.57 8,769.35 6,422.13 650.08 4,772.05
Accounts receivable with allowance for doubtful accounts recognized collectively by category name: Aging group
In RMB
Closing balance
Item Allowance for doubtful
Book balance %
accounts
Within 6 months
6,279,657,911.21 31,398,289.56 0.50%
7-12 months
194,400,946.27 9,720,047.31 5.00%
1-2 years
198,607,187.62 39,721,437.52 20.00%
2-3 years
105,894,374.87 63,536,624.92 60.00%
Over 3 years
171,547,038.25 171,547,038.25 100.00%
Total
6,950,107,458.22 315,923,437.57
(3) Allowance for doubtful accounts recognized, recovered or reversed in the current period
Allowance for doubtful accounts recognized in the current period:
In RMB
Changes in the current period
Opening
Item Recovered or Closing balance
balance Recognized Written off Others
reversed
Allowance
recognized 220,877,891.72 169,582,771.72 51,295,120.00
individually
Allowance
recognized 260,103,758.36 55,819,679.21 315,923,437.57
collectively
Total 480,981,650.08 55,819,679.21 169,582,771.72 367,218,557.57
(4) Accounts receivable actually written off in the current period
In RMB
Item Amount written off
Accounts receivable actually written off 169,582,771.72
Significant amount of accounts receivable written off:
114
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
In RMB
Whether or not
Write-off
Amount written Reason for write- arising from
Company name Nature of account procedure
off off related-party
performed
transactions
Dongguan
Baofeng
The company has Resolution of the
Intelligent Trade receivable 169,582,771.72 No
gone bankrupt Board of Directors
Technology Co.,
Ltd.
Total 169,582,771.72
(5) Top 5 debtors in terms of closing balance of accounts receivable and contract assets
In RMB
Closing balance of
% of total closing
allowance for
Closing Total closing balance balance of
Closing balance of doubtful accounts
Company name balance of of accounts receivable accounts
accounts receivable receivable and
contract assets and contract assets receivable and
impairment of
contract assets
contract assets
Debtor 1 1,911,438,500.06 1,911,438,500.06 26.65% 11,714,101.58
Debtor 2 577,064,900.41 577,064,900.41 8.05% 2,885,324.50
Debtor 3 538,597,555.74 538,597,555.74 7.51% 2,855,375.61
Debtor 4 299,842,469.82 299,842,469.82 4.18% 3,201,911.90
Debtor 5 240,665,780.25 240,665,780.25 3.36% 1,236,414.03
Total 3,567,609,206.28 3,567,609,206.28 49.75% 21,893,127.62
6. Contract assets
7. Accounts receivable financing
(1) Accounts receivable financing by category
In RMB
Item Closing balance Opening balance
Banker’s acceptance bills 199,435,267.61 290,477,095.22
Total 199,435,267.61 290,477,095.22
(2) Accounts receivable financing by method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for Allowance for
Item Book balance Carrying Book balance Carrying
doubtful accounts doubtful accounts
value value
Amount % Amount % Amount % Amount %
Incl.:
Account 199,435, 100.00% 199,435, 290,477, 100.00% 290,477,
115
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
s 267.61 267.61 095.22 095.22
receivab
le
financin
g with
allowanc
e
recogniz
ed
collectiv
ely
Incl.:
Banker’s
199,435, 199,435, 290,477, 290,477,
acceptan 100.00% 100.00%
267.61 267.61 095.22 095.22
ce bills
199,435, 199,435, 290,477, 290,477,
Total 100.00% 100.00%
267.61 267.61 095.22 095.22
(3) Allowance for doubtful accounts recognized, recovered or reversed in the current period
(4) Accounts receivable financing pledged at the end of the current period
In RMB
Item Amount pledged at the end of the current period
Banker’s acceptance bills 85,726,047.96
Total 85,726,047.96
(5) Accounts receivable financing already endorsed or discounted but not yet become due at the balance
sheet date
In RMB
Amount derecognized at the end of the Amount not derecognized at the end of
Item
current period the current period
Banker’s acceptance bills 603,549,039.91
Total 603,549,039.91
(6) Accounts receivable financing actually written off in the current period
(7) Changes in accounts receivable financing and changes in fair value thereof during the current period
(8) Other information: As the acceptors of banker’s acceptance bills are commercial banks that have high credit ratings, banker’s
acceptance bills are less likely to be dishonored when they become due. Therefore, the Company derecognizes the banker’s acceptance
bills already endorsed or discounted. However, if such bills fail to be paid when they become due, the Company will assume joint and
several liability to the holders thereof pursuant to the Law on Negotiable Instruments.
8. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 98,014,969.32 77,134,897.39
116
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Total 98,014,969.32 77,134,897.39
(1) Interest receivable
(2) Dividends receivable
(3) Other receivables
1) Other receivables by nature
In RMB
Nature of account Closing book balance Opening book balance
Loan and reserve fund 15,378,309.21 3,008,693.20
Security deposit 25,167,459.15 24,179,943.43
Temporary payment receivable and
72,158,116.83 63,320,215.31
others
Total 112,703,885.19 90,508,851.94
2) Other receivables by age
In RMB
Age Closing book balance Opening book balance
Within 1 year (inclusive) 98,010,801.76 71,736,165.38
1-2 years 4,978,854.39 8,616,817.34
2-3 years 847,477.39 2,464,429.36
Over 3 years 8,866,751.65 7,691,439.86
3-4 years 5,122,829.15 3,078,691.14
4-5 years 2,532,848.55 1,718,689.00
Over 5 years 1,211,073.95 2,894,059.72
Total 112,703,885.19 90,508,851.94
3) Other receivables by the method of recognition of allowance for doubtful accounts
Applicable □N/A
In RMB
Closing balance Opening balance
Allowance for Allowance for
Item Book balance Carrying Book balance Carrying
doubtful accounts doubtful accounts
value value
Amount % Amount % Amount % Amount %
Other
receivab
les with
allowanc 2,340,70 2,340,70 2,340,70 2,340,70
2.07% 100.00% 2.59% 100.00%
e 4.91 4.91 4.91 4.91
recogniz
ed
individu
117
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
ally
Incl.:
Other
receivab
les with
allowanc
110,363, 12,348,2 98,014,9 88,168,1 11,033,2 77,134,8
e 97.92% 11.19% 97.41% 12.51%
180.28 10.96 69.32 47.03 49.64 97.39
recogniz
ed
collectiv
ely
Incl.:
112,703, 14,688,9 98,014,9 90,508,8 13,373,9 77,134,8
Total 100.00% 13.03% 100.00% 14.78%
885.19 15.87 69.32 51.94 54.55 97.39
Other receivables with allowance for doubtful accounts recognized collectively: Aging group
In RMB
Closing balance
Item Allowance for doubtful
Book balance %
accounts
Within 1 year 98,010,801.76 4,900,540.09 5.00%
1-2 years 4,978,854.39 497,885.44 10.00%
2-3 years 847,477.39 423,738.70 50.00%
Over 3 years 6,526,046.74 6,526,046.74 100.00%
Total 110,363,180.28 12,348,210.96
Basis for grouping: N/A
Recognition of allowance for doubtful accounts in accordance with the general model of expected credit losses:
In RMB
Stage 1 Stage 2 Stage 3
Allowance for doubtful Lifetime expected Lifetime expected
12-month expected Total
accounts credit loss (not credit credit loss (credit
credit loss
impaired) impaired)
Balance at January 1,
3,586,808.28 861,681.73 8,925,464.54 13,373,954.55
2024
In the current period:
- Transferred to stage 2 -232,625.50 232,625.50
- Transferred to stage 3 -596,421.79 596,421.79
Recognized 1,546,357.31 355,176.18 1,901,533.49
Reversed 586,572.17 586,572.17
Balance at June 30,
4,900,540.09 497,885.44 9,290,490.35 14,688,915.87
2024
6) Top 5 debtors in terms of closing balance of other receivables
In RMB
% of total closing Closing balance of
Company name Nature of account Closing balance Age balance of other allowance for
receivables doubtful accounts
118
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Debtor 1 Government grants 40,256,779.96 Within 1 year 35.72% 2,012,839.00
Temporary payment Within 1 year
Debtor 2 9,860,000.00 8.75% 493,000.00
receivable and others
Temporary payment
Debtor 3 2,340,704.91 Over 3 years 2.08% 2,340,704.91
receivable and others
Debtor 5 Security deposit 2,000,000.00 Within 1 year 1.77% 100,000.00
Temporary payment
Debtor 5 1,790,748.55 Over 3 years 1.59% 1,790,748.55
receivable and others
Total 56,248,233.42 49.91% 6,737,292.46
9. Advances to suppliers
(1) Advances to suppliers by age
In RMB
Closing balance Opening balance
Age
Amount % Amount %
Within 1 year 59,905,077.54 87.31% 72,605,597.90 91.00%
1 to 2 years 5,792,254.85 8.44% 5,581,589.38 7.00%
2 to 3 years 1,349,652.39 1.97% 21,100.35 0.03%
Over 3 years 1,565,687.79 2.28% 1,574,451.48 1.97%
Total 68,612,672.57 79,782,739.11
Reason of failure to timely settle the significant advances to suppliers aged more than one year: N/A
(2) Top 5 suppliers in terms of closing balance of advances to suppliers
% of the total balance of advances to
Company name Book balance (RMB)
suppliers
Supplier 1 9,872,977.95 14.39%
Supplier 2 5,034,321.86 7.34%
Supplier 3 4,605,111.16 6.71%
Supplier 4 3,624,803.07 5.28%
Supplier 5 3,294,993.67 4.80%
Subtotal 26,432,207.71 38.52%
10. Inventories
(1) Categories of inventories
In RMB
Closing balance Opening balance
Inventory Inventory
Item provision or provision or
Book balance allowance for Carrying value Book balance allowance for Carrying value
impairment of impairment of
contract contract
119
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
fulfilling costs fulfilling costs
1,365,351,576. 1,226,347,896. 1,137,854,380.
Raw materials 139,003,679.54 144,036,638.90 993,817,741.50
19 65 40
Work in 1,034,017,371.
118,377,027.89 915,640,343.78 891,174,574.36 125,226,289.12 765,948,285.24
progress 67
4,509,675,210. 4,049,118,366. 4,974,174,253. 4,524,185,231.
Goods on hand 460,556,843.37 449,989,021.71
28 91 58 87
Circulating
635,522.36 635,522.36 9,966,532.81 38,514.88 9,928,017.93
materials
6,909,679,680. 6,191,742,129. 7,013,169,741. 6,293,879,276.
Total 717,937,550.80 719,290,464.61
50 70 15 54
(2) Data resources recognized as inventories
(3) Inventory provision or allowance for impairment of contract fulfilling costs
In RMB
Increase in the current period Decrease in the current period
Opening
Item Reversed or Closing balance
balance Recognized Others Others
written off
Raw materials 144,036,638.90 12,814,882.09 16,485.51 17,864,326.96 139,003,679.54
Work in
125,226,289.12 53,866.30 5,327.70 6,908,455.23 118,377,027.89
progress
Goods on hand 449,989,021.71 92,716,974.16 1,600,208.37 83,749,360.87 460,556,843.37
Circulating
38,514.88 38,514.88
materials
Total 719,290,464.61 105,585,722.55 1,622,021.58 108,560,657.94 717,937,550.80
Reason for
Basis for determining the net reversing the
Item Reason for writing off the inventory provision
realizable value inventory
provision
The inventories
for which an
The net realizable value is the
inventory
estimated selling price of finished The net realizable value is the estimated selling price
provision was
Raw materials goods less the estimated cost of of finished goods less the estimated cost of completion,
recognized at the
completion, estimated selling estimated selling expenses and related taxes.
beginning of the
expenses and related taxes.
current period
have been used.
The inventories
for which an
The net realizable value is the
inventory
estimated selling price of finished The net realizable value is the estimated selling price
Work in provision was
goods less the estimated cost of of finished goods less the estimated cost of completion,
progress recognized at the
completion, estimated selling estimated selling expenses and related taxes.
beginning of the
expenses and related taxes.
current period
have been used.
The net realizable value is the The inventories The net realizable value is the estimated selling price
Goods on
estimated selling price of finished for which an of finished goods less the estimated selling expenses
hand
goods less the estimated selling inventory and related taxes.
120
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
expenses and related taxes. provision was
recognized at the
beginning of the
current period
have been used.
The inventories
for which an
The net realizable value is the
inventory
Other estimated selling price of finished The net realizable value is the estimated selling price
provision was
circulating goods less the estimated cost of of finished goods less the estimated cost of completion,
recognized at the
materials completion, estimated selling estimated selling expenses and related taxes.
beginning of the
expenses and related taxes.
current period
have been used.
11. Assets held for sale
12. Non-current assets due within one year
13. Other current assets
In RMB
Item Closing balance Opening balance
Cost of returned goods receivable 29,097,919.47 29,832,976.30
Deductible input tax 517,975,447.98 340,312,673.44
Prepaid enterprise income tax 35,639,761.39 35,892,887.21
Deferred expenses and others 503,428,696.97 245,681,208.73
Total 1,086,141,825.81 651,719,745.68
14. Debt investments
15. Other debt investments
16. Investment in other equity instruments
In RMB
Aggregate Aggregate
Reason for
Income Loss income loss
designation
recognized recognized recognized recognized Dividend
as at fair
in other in other in other in other income
value
Opening comprehen comprehen comprehen comprehen recognized Closing
Item through
balance sive sive sive sive in the balance
other
income in income in income at income at current
comprehen
the current the current the end of the end of period
sive
period period the current the current
income
period period
Jiangsu
Bohua
Equity 150,000,00 150,000,00
Investment 0.00 0.00
Partnership
(L.P.)
121
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Hai Dixin
Semicondu
21,322,110. 21,322,110.
ctor
00 00
(Nantong)
Co., Ltd.
Hostar
Intelligence 28,800,000. 28,800,000.
Technology 00 00
Co., Ltd.
Dyness
Digital
50,000,000. 50,000,000.
Energy
00 00
Technology
Co., Ltd.
Shinwu
Optronics 22,035,000. 22,035,000.
(Suzhou) 00 00
Co., Ltd.
Jinan
6,000,000.0 10,000,000.
Moviebook
0 00
Co., Ltd.
Shenzhen
Ruoyu 1,500,000.0
0.00
Technology 0
Co., Ltd.
278,157,11 283,657,11
Total
0.00 0.00
Reason for designation as an investment in equity instruments at fair value through other comprehensive income
1) Hai Dixin Semiconductor (Nantong) Co., Ltd. was established on April 6, 2012, with a registered capital of RMB36,152,329.00, in
which the Company holds 10.2345% shares. In consideration that the Company has a close business relationship with Hai Dixin
Semiconductor (Nantong) Co., Ltd., the shares held by the Company in it will help the Company improve its business competencies
and the investment is not held for trading, the Company designated this investment as a financial asset at fair value through other
comprehensive income on January 1, 2019.
2) Jiangsu Bohua Equity Investment Partnership (L.P.) was established on September 27, 2021, with a registered capital of RMB3.3
billion, and is primarily engaged in venture capital investment (in non-listed companies only). In consideration that this investment
will bring a good return to the Company and provide the Company with opportunities to invest in premium fields and assets, and is not
held for trading, the Company designated this investment as a financial asset at fair value through other comprehensive income.
3) Hostar Intelligence Technology Co., Ltd. was established on April 2, 2011, with a registered capital of RMB42,660,000, in which
the Company holds 3.038% shares. In consideration that the shares held by the Company in it will help the Company improve its
business competencies, including procuring raw materials/equipment, and developing and strengthening market and sales teams, and
the investment is not held for trading, the Company designated this investment as a financial asset at fair value through other
comprehensive income in February 2023.
122
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
4) Dyness Digital Energy Technology Co., Ltd. was established on August 17, 2017, with a registered capital of RMB112,023,809, in
which the Company holds 1.7016% shares. In consideration that the shares held by the Company in it will help the Company improve
its business competencies and the investment is not held for trading, the Company designated this investment as a financial asset at fair
value through other comprehensive income in March 2023.
5) Shinwu Optronics (Suzhou) Co., Ltd. was established on October 19, 2006, with a registered capital of RMB57,754,000, in which
the Company holds 1.7169% shares. In consideration that the shares held by the Company in it will help the Company improve its
business competencies and the investment is not held for trading, the Company designated this investment as a financial asset at fair
value through other comprehensive income in May 2023.
6) Jinan Moviebook Co., Ltd. was established on September 6, 2019, with a registered capital of RMB10,000,000, in which the
Company holds 0.1995% shares. In consideration that the shares held by the Company in it will help the Company improve its business
competencies and the investment is not held for trading, the Company designated this investment as a financial asset at fair value
through other comprehensive income in October 2023.
7) Shenzhen Ruoyu Technology Co., Ltd. was established on April 13, 2023, with a registered capital of RMB5,229,300, in which the
Company holds 0.9678% shares. In consideration that the shares held by the Company in it will help the Company improve its business
competencies and the investment is not held for trading, the Company designated this investment as a financial asset at fair value
through other comprehensive income in January 2024.
17. Long-term receivables
(1) Particulars of long-term receivables
In RMB
Closing balance Opening balance
Allowance Range of
Item Allowance
Book for Carrying Carrying discount rate
Book balance for doubtful
balance doubtful value value
accounts
accounts
Security deposit 30,000,000. 30,000,000.0 30,000,000.0 30,000,000.0
for finance lease 00 0 0 0
Account
receivable from
Powerwave 10,703,905.7 10,703,905.7
7.5
Technologies 6 6
(Thailand) Co.,
Ltd.
30,000,000. 30,000,000.0 40,703,905.7 10,703,905.7 30,000,000.0
Total 0.00
00 0 6 6 0
123
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
(2) Long-term receivables by method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for Allowance for
Item Book balance Carrying Book balance Carrying
doubtful accounts doubtful accounts
value value
Amount % Amount % Amount % Amount %
Long-
term
receivab
les with
allowanc 10,703,9 10,703,9
100.00% 100.00%
e 05.76 05.76
recogniz
ed
individu
ally
Incl.:
Incl.:
10,703,9 10,703,9
Total 100.00% 100.00%
05.76 05.76
(3) Allowance for doubtful accounts recognized, recovered or reversed in the current period
(4) Long-term receivables actually written off in the current period
In RMB
Write-off
Nature of Amount written Reason for Whether or not arising from
Company name procedure
account off write-off related-party transactions
performed
Resolution of the
Powerwave Technologies Trade
10,703,905.76 Bankrupt Board of No
(Thailand) Co., Ltd. receivable
Directors
Total 10,703,905.76
18. Long-term equity investments
In RMB
Changes in the current period
Openi Closin
Openi ng Invest Adjust Closin g
Declar
ng balanc ment ment g balanc
ed Allow
balanc e of incom to balanc e of
Additi Reduc Other cash ance
Investee e allowa e or other e allowa
onal ed change divide for
(carryi nce for loss compr Others (carryi nce for
invest invest s in nds or impair
ng impair under ehensi ng impair
ment ment equity profit ment
value) ment equity ve value) ment
distrib loss
loss metho incom loss
ution
d e
I. Joint ventures
II. Associates
124
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Suzhou
Toprun 19,335 51,487 19,354 51,487
19,928
Electric ,028.6 ,204.0 ,957.0 ,204.0
.38
Equipment 2 5 0 5
Co., Ltd.
Shenzhen
Nanfang
17,507 17,507
Blog
,056.4 ,056.4
Technology
7 7
Developmen
t Co., Ltd.
Shanghai Fu
Shan
Precision
Manufacturi
ng Co., Ltd.
Suzhou
LEGATE 23,507 - 22,797
Intelligent ,176.1 709,68 ,488.8
Equipment 5 7.28 7
Co., Ltd.
Suzhou
Dongcan
-
Optoelectro 3,797, 3,349,
447,41
nics 258.35 842.73
5.62
Technology
Co., Ltd.
Jiangsu
Nangao
Intelligent -
4,259, 3,410,
Equipment 848,62
369.62 739.83
Innovation 9.79
Center Co.,
Ltd.
Jiaozuo
Songyang 26,753 - 26,521
Optoelectric ,781.0 232,32 ,458.2
Technology 7 2.81 6
Co., Ltd.
Suzhou
Yongxin
Jingshang 25,915 - 25,206
Venture ,794.0 709,08 ,710.0
Capital 6 4.04 2
Partnership
(L.P.)
ISOTEK
MICROWA 8,539, 8,539,
VE 424.61 424.61
LIMITED
32,358 - 32,003
BVF (BVI)
,873.1 355,57 ,294.7
Holding L.P.
7 8.43 4
Shanghai 19,479 - 18,450
125
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Xinhuarui ,598.8 1,029, ,556.9
Semiconduc 5 041.92 3
tor
Technology
Co., Ltd.
155,40 77,533 - 151,09 77,533
Subtotal 6,879. ,685.1 4,311, 5,048. ,685.1
89 3 831.51 38 3
155,40 77,533 - 151,09 77,533
Total 6,879. ,685.1 4,311, 5,048. ,685.1
89 3 831.51 38 3
19. Other non-current financial assets
20. Investment properties
(1) Investment properties at cost
Applicable □N/A
In RMB
Buildings and Construction in
Item Land use right Total
structures progress
I. Original value
1. Opening balance 5,309,132.17 5,309,132.17
2. Increase
(1) Acquired
(2) Transferred
from inventories/
fixed assets/
construction in
progress
(3) Increased due
to business
combinations
3. Decrease
(1) Disposed
(2) Other transfer-
out
4. Closing balance 5,309,132.17 5,309,132.17
II. Accumulated
depreciation and
amortization
1. Opening balance 4,270,291.91 4,270,291.91
2. Increase 128,855.58 128,855.58
(1) Recognized or
128,855.58 128,855.58
amortized
126
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
3. Decrease
(1) Disposed
(2) Other transfer-
out
4. Closing balance 4,399,147.49 4,399,147.49
III. Allowance for
impairment loss
1. Opening balance
2. Increase
(1) Recognized
3. Decrease
(1) Disposed
(2) Other transfer-
out
4. Closing balance
IV. Carrying value
1. Closing carrying
909,984.68 909,984.68
value
2. Opening carrying
1,038,840.26 1,038,840.26
value
21. Fixed assets
In RMB
Item Closing balance Opening balance
Fixed assets 12,712,146,406.50 12,415,251,689.80
Total 12,712,146,406.50 12,415,251,689.80
(1) Particulars of fixed assets
In RMB
Buildings and Machinery and Transport Office equipment
Item structures equipment equipment and others Total
I. Original value
1. Opening balance
5,132,153,184.39 19,797,161,127.14 89,626,022.07 1,015,562,668.44 26,034,503,002.04
2. Increase
387,957,174.36 907,581,238.65 9,432,828.66 5,972,832.65 1,310,944,074.32
(1) Acquired
1,712,132.71 2,878,066.00 3,322,825.22 7,913,023.93
(2) Transferred from
construction in
386,245,041.65 904,703,172.65 6,110,003.44 5,972,832.65 1,303,031,050.39
progress
(3) Increased due to
business
127
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
combinations
3. Decrease 411,187,089.76 8,330,663.66 33,762,120.41 453,279,873.83
(1) Disposed or
retired 410,687,089.76 8,330,663.66 33,762,120.41 452,779,873.83
(2) Transferred to
construction in
500,000.00 500,000.00
progress
4. Closing balance 5,520,110,358.75 20,293,555,276.03 90,728,187.07 987,773,380.68 26,892,167,202.53
II. Accumulated
depreciation
1. Opening balance 2,220,275,673.46 10,602,887,524.16 62,223,497.82 716,522,202.74 13,601,908,898.18
2. Increase 104,626,418.01 863,457,985.03 2,580,400.41 28,599,424.88 999,264,228.33
(1) Recognized 104,626,418.01 863,457,985.03 2,580,400.41 28,599,424.88 999,264,228.33
3. Decrease 406,415,865.29 6,753,119.38 25,021,514.03 438,190,498.70
(1) Disposed or retired 406,415,865.29 6,753,119.38 25,021,514.03 438,190,498.70
4. Closing balance 2,324,902,091.47 11,059,929,643.90 58,050,778.85 720,100,113.59 14,162,982,627.81
III. Allowance for
impairment loss
1. Opening balance 4,570,236.72 12,078,207.03 693,970.31 17,342,414.06
2. Increase
(1) Recognized
3. Decrease 304,245.84 304,245.84
(1) Disposed or retired 304,245.84 304,245.84
4. Closing balance 4,570,236.72 11,773,961.19 693,970.31 17,038,168.22
IV. Carrying value
1. Closing carrying value 3,190,638,030.56 9,221,851,670.94 32,677,408.22 266,979,296.78 12,712,146,406.50
2. Opening carrying
value 2,907,307,274.21 9,182,195,395.95 27,402,524.25 298,346,495.39 12,415,251,689.80
(2) Temporary idle fixed assets
(3) Fixed assets leased out under operating leases
(4) Fixed assets whose property title certificates have not yet been obtained
In RMB
Reason for not obtaining the property
Item Carrying value
title certificate
Factory buildings of Multek 62,075,953.78 Pending review
22. Construction in progress
In RMB
Item Closing balance Opening balance
Construction in progress 2,212,779,454.69 1,842,525,188.54
Total 2,212,779,454.69 1,842,525,188.54
(1) Particulars of construction in progress
In RMB
128
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Closing balance Opening balance
Allow
ance Allowanc
Item for e for
Book balance Carrying value Book balance Carrying value
impair impairme
ment nt loss
loss
Multek 5G high-speed
high-frequency and high-
20,138,126.54 20,138,126.54
density PCB technology
upgrading project
FPC for new energy
application and assembly
1,983,936.00 1,983,936.00 15,994,322.82 15,994,322.82
project of MFLEX
Yancheng
IC substrate project of
Chaowei
33,983,145.33 33,983,145.33 75,645,464.25 75,645,464.25
Microelectronics
(Yancheng) Co., Ltd.
Large-sized die-casting
project of Yancheng 603,014,099.36 603,014,099.36 658,090,750.03 658,090,750.03
Dongchuang
Kunshan new energy
manufacturing base- 279,066,396.76 279,066,396.76 425,232,448.52 425,232,448.52
related project
Mexico new energy
manufacturing base- 28,554,302.12 28,554,302.12 999,896.91 999,896.91
related project
MFLEX Yancheng Phase
300,859,918.91 300,859,918.91 35,619,454.33 35,619,454.33
II project
MFLEX Suzhou
Guoxiang Phase II and
136,273,170.13 136,273,170.13 82,215,960.20 82,215,960.20
other production
expansion projects
LCM business unit 46,535,180.88 46,535,180.88 46,535,180.88 46,535,180.88
Installation equipment in
408,745,775.13 408,745,775.13 482,053,584.06 482,053,584.06
progress and others
Plant infrastructure
project of Multilayer
373,763,530.07 373,763,530.07
Board (Thailand) Co.
Ltd.
Total 2,212,779,454.69 2,212,779,454.69 1,842,525,188.54 1,842,525,188.54
(2) Changes in significant constructions in progress in the current period
In RMB
Aggre
Rate of
Amou gate Incl.:
% of interes
Openi nt Closin amoun Capital
Other project t Source
ng Increas transfe g Progre t of ized
Project Budget decrea costs capital of
balanc e rred to balanc ss capital interes
ses to the ization funds
e fixed e ized t this
budget this
assets interes year
year
t
Large-sized 1,500, 658,09 260,60 270,19 45,485 603,01 88.37 88% 其他
129
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
die-casting 000,00 0,750. 8,318. 8,973. ,996.2 4,099. %
project of 0.00 03 80 19 8 36
Yancheng
Dongchuang
Kunshan
new energy
1,800, 425,23 475,63 548,74 279,06
manufacturi 57.14 57.14
000,00 2,448. 3,109. 4,267. 6,396. 其他
ng base- % %
0.00 52 11 86 77
related
project
Plant
infrastructur
e project of 980,00 46,873 326,89 373,76
38.14 38.14
Multilayer 0,000. ,232.0 0,298. 3,530. 其他
% %
Board 00 4 03 07
(Thailand)
Co. Ltd.
4,280, 1,130, 1,063, 818,94 45,485 1,255,
Total 000,00 196,43 131,72 3,241. ,996.2 844,02
0.00 0.59 5.94 05 8 6.20
23. Productive biological assets
24. Oil and gas assets
25. Right-of-use assets
(1) Particulars of right-of-use assets
In RMB
Buildings and Machinery and Transportation
Land
Item structures equipment equipment Total
I. Original value
1. Opening
balance 1,413,525,626.05 30,676,878.28 345,470.00 93,200,186.63 1,537,748,160.96
2. Increase
56,655,079.96 56,655,079.96
(1) Leased
(2) Transferred
from construction
56,655,079.96 56,655,079.96
in progress
(3) Differences in
translation of
foreign currency
financial
statements
(4) Increased due
to business
combinations
3. Decrease
130
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
4. Closing balance 1,470,180,706.01 30,676,878.28 345,470.00 93,200,186.63 1,594,403,240.92
II. Accumulated
depreciation
1. Opening
balance 276,837,664.69 971,434.50 269,898.56 7,001,112.38 285,080,110.13
2. Increase
38,740,709.64 976,341.61 70,664.33 741,298.38 40,529,013.96
(1) Recognized
38,740,709.64 976,341.61 70,664.33 741,298.38 40,529,013.96
(2) Differences in
translation of
foreign currency
financial
statements
(3) Increased due
to business
combinations
3. Decrease
(1) Disposed
4. Closing balance 315,578,374.33 1,947,776.11 340,562.89 7,742,410.76 325,609,124.09
III. Allowance for
impairment loss
1. Opening
balance
2. Increase
(1) Recognized
3. Decrease
(1) Disposed
4. Closing balance
IV. Carrying value
1. Closing carrying
1,154,602,331.67 28,729,102.17 4,907.11 85,457,775.88 1,268,794,116.83
value
2. Opening
1,136,687,961.35 29,705,443.78 75,571.44 86,199,074.26 1,252,668,050.83
carrying value
26. Intangible assets
(1) Particulars of intangible assets
In RMB
Land use Unpatented Trademark Developme Customer
Item Patent Software Total
right technology and patent nt costs resources
131
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
I. Original
value
1. Opening 629,094,58 362,386,60 154,718,88 6,733,029.4 207,803,62 1,360,736,7
balance 5.89 8.26 5.76 5 9.23 38.59
152,663,10 29,897,338. 182,562,64
2. Increase 2,205.05
0.95 67 4.67
(1) 2,247,856.6 2,390,419.0
140,357.33 2,205.05
Acquired 2 0
(2) Internal
R&D
(3)
Increased
due to
business
combinatio
ns
(4)
Differences
in
translation
of foreign
currency
financial
statements
(5)
Transferred
from 29,756,981. 30,207,941.
450,959.93
constructio 34 27
n in
progress
(6)
Transferred 149,964,28 149,964,28
from 4.40 4.40
inventories
2,623,545.4 2,623,545.4
3. Decrease
0 0
(1) 2,623,545.4 2,623,545.4
Disposed 0 0
4. Closing 781,757,68 389,660,40 154,721,09 6,733,029.4 207,803,62 1,540,675,8
balance 6.84 1.53 0.81 5 9.23 37.86
II.
Accumulat
ed
amortizatio
n
1. Opening 100,086,78 271,520,23 99,655,603. 6,733,029.4 19,048,666. 497,044,31
balance 0.52 7.29 59 5 01 6.86
6,355,266.4 26,327,089. 7,461,326.7 10,390,181. 50,533,863.
2. Increase
3 29 1 46 89
(1) 6,355,275.0 26,163,532. 5,532,748.3 10,390,181. 48,441,737.
Recognized 2 69 1 46 48
132
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
(2)
Differences
in
translation 1,928,578.4 2,092,126.4
-8.59 163,556.60
of foreign 0 1
currency
financial
statements
2,623,545.4 2,623,545.4
3. Decrease
0 0
(1) 2,623,545.4 2,623,545.4
Disposed 0 0
4. Closing 106,442,04 295,223,78 107,116,93 6,733,029.4 29,438,847. 544,954,63
balance 6.95 1.18 0.30 5 47 5.35
III.
Allowance
for
impairment
loss
1. Opening
balance
2. Increase
(1)
Recognized
3. Decrease
(1)
Disposed
4. Closing
balance
IV.
Carrying
value
1. Closing
675,315,63 94,436,620. 47,604,160. 178,364,78 995,721,20
carrying
9.89 35 51 1.76 2.51
value
2. Opening
529,007,80 90,866,370. 55,063,282. 188,754,96 863,692,42
carrying
5.37 97 17 3.22 1.73
value
27. Goodwill
(1) Original value of goodwill
In RMB
Increase Decrease
Investee or event giving
Opening balance Arising from Dispose Closing balance
rise to goodwill
business d
133
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
combination
MFLEX 1,770,752,915.84 1,770,752,915.84
Multek 179,329,062.90 179,329,062.90
Mutto Optronics 153,957,647.78 153,957,647.78
RF Top Electronic 135,001,580.53 135,001,580.53
Aranda asset group 50,502,380.96 3,546,900.03 46,955,480.93
Total 2,289,543,588.01 3,546,900.03 2,285,996,687.98
(2) Allowance for impairment of goodwill
In RMB
Increase Decrease
Investee or event giving rise Opening
Recognize Closing balance
to goodwill balance Disposed
d
Mutto Optronics 67,475,733.00 67,475,733.00
Aranda asset group 4,000,219.86 4,000,219.86
RF Top Electronic 8,868,134.17 8,868,134.17
Total 80,344,087.03 80,344,087.03
28. Long-term deferred expenses
In RMB
Item Opening balance Increase Amortization Other decreases Closing balance
Decoration costs
of fixed assets and 866,872,191.21 167,557,702.44 117,420,434.00 917,009,459.65
others
Total 866,872,191.21 167,557,702.44 117,420,434.00 917,009,459.65
29. Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets not offset
In RMB
Closing balance Opening balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Allowance for
905,698,249.10 144,897,978.00 800,118,130.88 128,429,874.02
impairment of assets
Deductible losses 2,937,798,262.67 441,891,903.19 2,579,402,663.68 389,544,407.25
Fixed assets 55,442,842.70 13,509,629.14 55,181,543.30 13,469,931.13
Accrued expenses 143,027,034.75 26,986,237.52 132,769,288.28 26,353,080.15
Lease liabilities 1,905,076,496.37 352,178,536.12 1,872,497,186.10 342,955,848.83
Unrealized inter-
169,486,981.33 43,076,495.86 255,979,699.52 59,652,829.61
company transactions
Provisions 51,320,866.73 8,814,226.87 57,512,864.31 10,480,061.52
Deferred income 592,973,451.02 97,051,529.24 660,215,044.53 107,254,395.87
Total 6,760,824,184.67 1,128,406,535.94 6,413,676,420.60 1,078,140,428.38
134
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
(2) Deferred tax liabilities not offset
In RMB
Closing balance Opening balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
differences differences
One-off deduction of
depreciation of fixed 2,225,022,467.78 454,213,334.23 1,588,082,312.80 318,338,339.27
assets
Accrued interest
71,640,514.11 15,285,676.57 86,995,017.26 18,917,600.59
income and others
Right-of-use assets 1,268,794,116.83 268,225,787.45 1,252,668,050.83 266,830,422.09
Income tax payable
due to increase in 367,907,563.80 83,537,835.14 384,245,651.82 87,206,749.88
appraised value
Total 3,933,364,662.52 821,262,633.39 3,311,991,032.71 691,293,111.83
(3) Deferred tax assets and deferred tax liabilities presented on a netting basis
In RMB
Closing offset amount Closing balance of Opening offset amount Opening balance of
Item of deferred tax assets deferred tax assets or of deferred tax assets deferred tax assets or
and liabilities liabilities after offset and liabilities liabilities after offset
Deferred tax assets 1,128,406,535.94 1,078,140,428.38
Deferred tax liabilities 821,262,633.39 691,293,111.83
(4) Unrecognized deferred tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary differences 1,056,370,842.80 1,045,519,017.80
Deductible losses 844,548,985.58 470,774,420.57
Total 1,900,919,828.38 1,516,293,438.37
(5) Deductible losses on unrecognized deferred tax assets that will expire in the following years
In RMB
Year Closing balance Opening balance Remark
2024 40,403,329.83 40,403,329.83
2025 100,804,003.97 100,804,003.97
2026 39,377,012.01 39,377,012.01
2027 265,972,000.92 265,972,000.92
2028 24,218,073.84 24,218,073.84
2029 373,774,565.01
Total 844,548,985.58 470,774,420.57
30. Other non-current assets
In RMB
135
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Closing balance Opening balance
Allowanc
Item e for Allowance for
Book balance Carrying value Book balance Carrying value
impairme impairment loss
nt loss
Deferred
income –
unrealized gain 23,294,287.43 23,294,287.43 26,662,462.41 26,662,462.41
or loss on sale
and leaseback
Prepayment for
1,290,131,209.
projects and 1,290,131,209.12 906,360,511.93 906,360,511.93
12
equipment
1,313,425,496.
Total 1,313,425,496.55 933,022,974.34 933,022,974.34
55
31. Assets subject to restrictions on ownership or right of use
In RMB
Closing balance Opening balance
Item Book Carrying Type of Reason of Book Carrying Type of Reason of
balance value restriction restriction balance value restriction restriction
Cash and Security Security
1,903,122,5 1,903,122,5 1,315,351,7 1,315,351,7
bank Pledge deposit for Pledge deposit for
02.45 02.45 83.39 83.39
balances notes, etc. notes, etc.
Discounted Discounted
Notes 115,000,00 115,000,00 130,000,00 130,000,00
Pledge and not Pledge and not
receivable 0.00 0.00 0.00 0.00
mature mature
Security for Security for
Fixed 784,051,22 354,652,16 loans, sales 784,051,22 418,641,70 loans, sales
Mortgage Mortgage
assets 8.85 9.33 and 8.85 1.59 and
leaseback leaseback
Accounts
85,726,047. 85,726,047. Pledge of 172,685,96 172,685,96 Pledge of
receivable Pledge Pledge
96 96 notes 5.02 5.02 notes
financing
Right-of- 1,594,403,2 1,268,794,1 Finance 1,535,413,0 1,252,668,0 Finance
Mortgage Mortgage
use assets 40.92 16.83 lease 01.39 50.83 lease
Accounts 96,168,092. 96,168,092.
Pledge Factoring Pledge Factoring
receivable 66 66
4,482,303,0 3,727,294,8 4,033,670,0 3,385,515,5
Total
20.18 36.57 71.31 93.49
32. Short-term borrowings
(1) Short-term borrowings by category
In RMB
Item Closing balance Opening balance
Pledge loans 235,613,134.92
Credit loans 4,449,694,707.51 4,376,608,244.06
Discounting and factoring of notes,
919,885,049.02 779,491,972.95
letters of credit and accounts receivable
136
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Total 5,605,192,891.45 5,156,100,217.01
33. Financial liabilities held for trading
In RMB
Item Closing balance Opening balance
Financial liabilities held for trading 180,575,141.54 104,174,076.23
Derivative financial liabilities 180,575,141.54 104,174,076.23
Total 180,575,141.54 104,174,076.23
34. Derivative financial liabilities
35. Notes payable
In RMB
Category Closing balance Opening balance
Commercial acceptance bills 29,758,498.95 52,292,024.62
Banker’s acceptance bills 949,651,102.56 856,879,191.31
Total 979,409,601.51 909,171,215.93
36. Accounts payable
(1) Accounts payable
In RMB
Item Closing balance Opening balance
Payment for materials 5,996,719,613.96 6,672,185,481.42
Payment for projects and equipment 1,924,484,403.22 1,055,789,013.23
Others 432,273,312.96 311,132,681.87
Total 8,353,477,330.14 8,039,107,176.52
37. Other payables
In RMB
Item Closing balance Opening balance
Other payables 81,678,161.65 80,188,628.54
Total 81,678,161.65 80,188,628.54
137
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
(1) Interest payable
(2) Dividends payable
(3) Other payables
1) Other payables by nature
In RMB
Item Closing balance Opening balance
Temporary receipts payable 59,152,281.25 60,966,287.79
Others 22,525,880.40 19,222,340.75
Total 81,678,161.65 80,188,628.54
38. Advances from clients
39. Contract liabilities
In RMB
Item Closing balance Opening balance
Trade payables 47,925,820.33 28,982,676.07
Total 47,925,820.33 28,982,676.07
40. Employee benefits payable
(1) Employee benefits payable
In RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term benefits
540,263,955.36 2,067,935,219.71 2,163,623,948.40 444,575,226.67
II. Post-employment
benefits - defined
12,915,025.32 165,965,238.70 165,425,941.66 13,454,322.36
contribution plans
III. Termination
benefits 26,833,776.36 26,833,776.36
Total 553,178,980.68 2,260,734,234.77 2,355,883,666.42 458,029,549.03
(2) Short-term employee benefits
In RMB
Item Opening balance Increase Decrease Closing balance
1. Wages, bonuses,
allowances and 530,225,015.61 1,810,644,113.56 1,906,586,246.75 434,282,882.42
subsidies
2. Staff welfare 96,311,325.63 96,311,325.63
3. Social insurance
5,627,610.15 77,689,441.45 77,425,178.99 5,891,872.61
contributions
138
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Workers’ compensation
434,364.36 5,265,815.52 5,226,834.99 473,344.89
insurance
Medical and maternity
5,193,245.79 72,423,625.93 72,198,344.00 5,418,527.72
insurance
4. Housing provident
2,654,388.88 78,549,348.89 78,576,860.38 2,626,877.39
fund
5. Trade union fund
and employee 1,756,940.72 4,740,990.18 4,724,336.65 1,773,594.25
education fund
Total 540,263,955.36 2,067,935,219.71 2,163,623,948.40 444,575,226.67
(3) Defined contribution plans
In RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension
12,317,238.58 160,944,182.45 160,451,190.91 12,810,230.12
insurance
2. Unemployment
597,786.74 5,021,056.25 4,974,750.75 644,092.24
insurance
Total 12,915,025.32 165,965,238.70 165,425,941.66 13,454,322.36
41. Taxes payable
In RMB
Item Closing balance Opening balance
Value-added tax 10,814,735.87 15,906,070.71
Enterprise income tax 280,996,725.80 425,307,243.33
Individual income tax 4,948,949.06 7,474,547.48
Urban maintenance and construction tax 4,779,385.53 6,227,121.91
Property tax 8,921,684.24 8,141,101.87
Stamp duty 5,453,069.52 6,471,998.78
Education surcharge 2,331,092.68 2,672,083.16
Land use tax 509,660.39 735,915.46
Local education surcharge 1,478,493.79 1,781,388.79
Other taxes 2,042,249.75 858,735.34
Total 322,276,046.63 475,576,206.83
42. Liabilities held for trading
43. Non-current liabilities due within one year
In RMB
Item Closing balance Opening balance
Long-term borrowings due within one
year 2,431,130,581.55 2,467,018,914.05
Lease liabilities due within one year
24,081,862.12 29,697,992.30
139
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Long-term payables due within one year 21,380,400.00
Total 2,476,592,843.67 2,496,716,906.35
44. Other current liabilities
In RMB
Item Closing balance Opening balance
Output tax to be recognized 2,348,195.83 6,556,017.38
Total 2,348,195.83 6,556,017.38
45. Long-term borrowings
(1) Long-term borrowings by category
In RMB
Item Closing balance Opening balance
Pledge loans 764,600,000.00 764,600,000.00
Credit loans 4,265,823,595.11 3,741,405,477.65
Mortgage and guaranteed loans 200,000,000.00 200,274,861.11
Total 5,230,423,595.11 4,706,280,338.76
46. Bonds payable
47. Lease liabilities
In RMB
Item Closing balance Opening balance
Lease obligations payable 2,084,072,600.33 2,098,735,814.79
Less: Unrecognized financing costs -203,077,966.08 -255,936,620.99
Total 1,880,994,634.25 1,842,799,193.80
48. Long-term payables
In RMB
Item Closing balance Opening balance
Long-term payables 254,675,989.48 296,995,789.48
Total 254,675,989.48 296,995,789.48
(1 )Long-term payables by nature
In RMB
Item Closing balance Opening balance
Share purchase price 254,675,989.48 296,995,789.48
140
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
49. Long-term employee benefits payable
50. Provisions
In RMB
Item Closing balance Opening balance Reason
Product warranty 20,667,870.06 30,235,945.92
Provision for sales return 29,187,651.47 30,549,264.52
Total 49,855,521.53 60,785,210.44
51. Deferred income
In RMB
Item Opening balance Increase Decrease Closing balance Reason
Government grants 733,456,685.17 2,774,900.00 79,531,306.68 656,700,278.49 Government grants
Total 733,456,685.17 2,774,900.00 79,531,306.68 656,700,278.49
52. Other non-current liabilities
53. Share capital
In RMB
+/-
Opening Capitalizatio Closing
balance New issue Bonus shares n of capital Others Subtotal balance
reserve
1,709,867,32 1,709,867,32
Total shares
7.00 7.00
54. Other equity instruments
55. Capital reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (share
7,896,510,906.74 7,896,510,906.74
premium)
Other capital reserve 167,257,502.99 1,107,141.50 168,364,644.49
Total 8,063,768,409.73 1,107,141.50 8,064,875,551.23
Other information (including a description on the change in the current period and the reasons of the change): The change in capital
reserve was due to share-based payments recognized under ESOPs in the current period.
56. Treasury shares
In RMB
Item Opening balance Increase Decrease Closing balance
141
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Treasury shares 125,906,811.33 25,000,846.30 150,907,657.63
Total 125,906,811.33 25,000,846.30 150,907,657.63
Other information (including a description on the change in the current period and the reasons of the change): The treasury shares
were increased in the reporting period due to share repurchase.
57. Other comprehensive income
In RMB
The current period
Less: Other Less: Other
comprehen comprehen Amount Amount
Opening sive sive Less: attributable attributable Closing
Item Amount
balance income income Income tax to the to minor balance
before tax
reclassified reclassified expenses parent after interest
to profit or to retained tax after tax
loss earnings
I. Other
comprehen
sive
- -
income that
350,000,00 350,000,00
cannot be
0.00 0.00
reclassified
to profit or
loss
Change in
fair value
of - -
investment 350,000,00 350,000,00
s in other 0.00 0.00
equity
instruments
II. Other
comprehen
sive
- - - - -
income that 1,655,710.3
364,664,57 92,295,791. 11,487,973. 82,463,528. 447,128,10
will be 0
8.64 72 60 41 7.05
reclassified
to profit or
loss
Reserves - - - - -
1,655,710.3
for cash 17,554,493. 82,627,441. 11,487,973. 72,795,178. 90,349,671.
0
flow hedge 64 66 60 35 99
Differences
in
translation - - - -
of foreign 347,110,08 9,668,350.0 9,668,350.0 356,778,43
currency 5.00 6 6 5.06
financial
statements
Total other
- - - - -
comprehen 1,655,710.3
714,664,57 92,295,791. 11,487,973. 82,463,528. 797,128,10
sive 0
8.64 72 60 41 7.05
income
142
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
58. Special reserve
59. Surplus reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
184,866,869.73 184,866,869.73
reserve
Total 184,866,869.73 184,866,869.73
60. Retained profits
In RMB
Item Amount for the current period Amount for the previous period
Balance of retained profits at the end of
9,025,095,529.05 7,297,404,445.02
the previous period before adjustment
Opening balance of retained profits after
9,025,095,529.05 7,297,404,445.02
adjustment
Add: Net profit attributable to owners of
560,600,936.27 1,964,525,269.65
the parent
Less: Appropriation to statutory surplus
49,519,034.63
reserve
Dividends payable to the ordinary
425,319,052.25 187,315,150.99
shareholders
Closing balance of retained profits 9,160,377,413.07 9,025,095,529.05
61. Operating revenue and operating costs
In RMB
Amount for the current period Amount for the previous period
Item
Revenue Cost Revenue Cost
Primary business 16,521,772,107.69 14,408,130,744.18 13,595,558,213.91 11,799,102,145.57
Other business 106,814,087.87 47,564,313.33 71,529,611.15 32,267,794.42
Total 16,628,586,195.56 14,455,695,057.51 13,667,087,825.06 11,831,369,939.99
62. Taxes and surcharges
In RMB
Item Amount for the current period Amount for the previous period
Urban maintenance and construction tax 39,773,020.05 16,034,842.60
Education surcharge 17,685,634.63 6,864,289.26
Property tax 15,390,414.84 10,133,715.20
Land use tax 957,701.07 856,124.48
Vehicle and vessel tax 346,386.74 310,255.48
Stamp duty 10,533,280.44 10,268,413.75
Local education surcharge 11,790,423.12 5,289,100.78
Environmental protection tax 837,678.42 79,472.62
Total 97,314,539.31 49,836,214.17
143
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
63. Administrative expenses
In RMB
Item Amount for the current period Amount for the previous period
Employee benefits 254,096,243.15 204,055,142.08
Termination benefits 26,833,776.36 10,512,978.52
Depreciation and amortization 78,433,107.26 57,376,174.57
Consulting service fees 35,623,428.59 28,580,878.83
Office expenses 17,832,051.29 13,373,346.20
Entertainment expenses 22,812,086.03 28,499,318.50
Travel expenses 8,598,359.09 12,731,400.90
Rents 5,215,929.06 9,290,906.49
Repair costs 12,620,656.93 8,956,548.70
Taxes 1,039,457.29 280,638.41
Others 50,826,923.33 53,407,334.78
Total 513,932,018.38 427,064,667.98
64. Selling expenses
In RMB
Item Amount for the current period Amount for the previous period
Employee benefits
108,354,693.68 101,518,619.94
Sales service fees
34,177,964.33 20,586,293.81
Export charges
12,199,315.29 13,465,877.87
Travel expenses
6,760,920.66 5,181,482.07
Entertainment expenses
10,223,544.60 10,223,544.60
Sample expense 20,130,408.96 15,351,017.61
Others 6,614,564.13 4,216,860.17
Total 198,461,411.65 170,543,696.07
65. R&D expenses
In RMB
Item Amount for the current period Amount for the previous period
Materials 284,790,576.60 171,995,246.32
Labor costs 267,132,170.20 221,188,241.37
Depreciation 45,587,062.83 38,704,246.34
Others 24,713,799.36 25,501,749.18
Total 622,223,608.99 457,389,483.21
66. Financial expenses
In RMB
Item Amount for the current period Amount for the previous period
Interest expenses 193,330,353.30 206,902,687.71
Interest on leases and financing fees 36,422,307.24 38,373,636.33
Less: Interest income 141,164,259.09 109,254,733.76
144
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Add: Exchange loss -125,881,081.93 -187,351,446.58
Bank charges and others 9,751,760.34 12,235,308.36
Total -27,540,920.14 -39,094,547.94
67. Other income
In RMB
Sources of other income Amount for the current period Amount for the previous period
Government grants related to assets 79,531,306.68 77,760,625.57
Government grants related to income 66,248,136.43 68,280,829.16
Refund of individual income tax
991,704.86 1,245,689.62
withholding service fees
Value-added tax credits 24,380,280 26
Tax preferences 5,260,420.66
68. Net exposure hedging income
69. Gain on changes in fair value
In RMB
Source of gain on changes in fair value Amount for the current period Amount for the previous period
Financial assets held for trading -15,065,635.92 -8,871,765.01
Total -15,065,635.92 -8,871,765.01
70. Investment income
In RMB
Item Amount for the current period Amount for the previous period
Income from long-term equity
-4,311,831.51 -633,126.48
investments under the equity method
Investment income from the disposal of
-43,948,067.47 11,067,076.03
financial assets held for trading
Income from debt restructuring 2,062,881.90
Discount loss on accounts receivable
-3,082,914.57 -1,215,084.94
financing
Income from bank wealth management
855,961.44 2,415,520.11
products
Total -48,423,970.21 11,634,384.72
71. Credit loss
In RMB
Item Amount for the current period Amount for the previous period
Loss from doubtful accounts -57,244,335.30 -64,859,876.70
Total -57,244,335.30 -64,859,876.70
145
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
72. Impairment loss on assets
In RMB
Item Amount for the current period Amount for the previous period
I. Impairment of inventories and contract
-105,585,722.55 -60,359,147.92
fulfilling costs
Total -105,585,722.55 -60,359,147.92
73. Gain on disposal of assets
In RMB
Source of gain on disposal of assets Amount for the current period Amount for the previous period
Gain on disposal of fixed assets -34,905,446.22 -4,613,581.75
74. Non-operating revenue
In RMB
Amount for the previous Amount recognized in non-
Item Amount for the current period
period recurring gain or loss
Gain on business combination 158,433,706.74
Revenue from penalties and
3,574,668.97 232,648.74 3,574,668.97
forfeitures
Amounts that cannot be paid 384,586.86 1,909,625.59 384,586.86
Others 1,023,803.86 922,503.40 1,023,803.86
Total 4,983,059.69 161,498,484.47 4,983,059.69
75. Non-operating expenses
In RMB
Amount for the previous Amount recognized in non-
Item Amount for the current period
period recurring gain or loss
Donations
2,032,060.00 712,176.97 2,032,060.00
Loss on destruction and
retirement of non-current
1,313,816.79 3,041,247.98 1,313,816.79
assets
Penalties, overdue fines and
liquidated damages 121,263.86 649,883.50 121,263.86
Others
2,104,408.20 798,848.10 2,104,408.20
Total 5,571,548.85 5,202,156.55 5,571,548.85
76. Income tax expenses
(1) Statement of income tax expenses
In RMB
Item Amount for the current period Amount for the previous period
Income tax expense 47,382,680.04 245,495,348.06
146
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Deferred income tax expenses 76,792,036.62 -123,646,675.58
Total 124,174,716.66 121,848,672.48
(2) Reconciliation of income tax expenses to accounting profit
In RMB
Item Amount for the current period
Total profit 683,098,729.39
Income tax expenses 124,174,716.66
77. Other comprehensive income
See Note 57.
78. Items of the cash flow statement
(1) Cash flows related to operating activities
Other cash receipts related to operating activities:
In RMB
Item Amount for the current period Amount for the previous period
Security deposit for acceptance bills 292,804,080.02 568,591,615.97
Government grants 75,652,600.37 89,183,807.74
Interest income 141,164,259.09 109,254,733.76
Temporary receipts payable and others 82,870,034.31 92,716,531.90
Total 592,490,973.79 859,746,689.37
Other cash payments related to operating activities
In RMB
Item Amount for the current period Amount for the previous period
Security deposit for acceptance bills 450,511,403.51 557,165,873.88
Selling expenses and administrative
346,654,910.34 275,041,587.05
expenses in cash
Bank charges 9,751,760.34 12,235,308.36
Temporary payments receivable and
20,705,500.14 1,299,627.33
others
Total 827,623,574.33 845,742,396.62
(2) Cash flows related to investing activities
Other cash receipts related to investing activities
In RMB
Item Amount for the current period Amount for the previous period
Recovery of term deposits 419,424,782.41 28,655,922.05
Total 419,424,782.41 28,655,922.05
Other cash payments related to investing activities
In RMB
147
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Item Amount for the current period Amount for the previous period
Term deposits 530,962,815.64 126,553,313.15
Total 530,962,815.64 126,553,313.15
(3) Cash flows related to financing activities
Other cash receipts related to financing activities
In RMB
Item Amount for the current period Amount for the previous period
Proceeds from discounts on acceptance
329,197,076.44 458,901,268.55
bills and letters of credit
Total 329,197,076.44 458,901,268.55
Other cash payments related to financing activities
In RMB
Item Amount for the current period Amount for the previous period
Security deposits 193,427,617.44 3,376,021.50
Payment of rents 93,422,168.32 148,009,080.25
Payments under bill financing 511,413,491.20 562,368,813.80
Repurchase of treasury shares 25,000,846.30
Total 823,264,123.26 713,753,915.55
Changes in liabilities arising from financing activities
□Applicable N/A
79. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
In RMB
Supplementary information Amount for the current period Amount for the previous period
1. Reconciliation of net profit to cash
flows from operating activities:
Net profit 558,924,012.73 824,643,184.71
Add: Allowance for impairment of assets 106,066,217.85 45,552,358.04
Depreciation of fixed assets, oil and gas
999,264,228.33 872,030,135.94
assets, and productive biological assets
Depreciation of right-of-use assets 40,529,013.96 41,821,214.76
Amortization of intangible assets 48,441,737.48 36,614,756.69
Amortization of long-term deferred
117,420,434.00 58,334,203.60
expenses
Loss on disposal of fixed assets,
intangible assets and other long-term 34,905,446.22 4,613,581.75
assets (gain expressed with “-”)
Loss on retirement of fixed assets (gain
1,313,816.79 3,041,247.98
expressed with “-”)
Loss on changes in fair value (gain
1,821,721.89 8,871,765.01
expressed with “-”)
148
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Financial expenses (income expressed
103,871,578.61 42,195,614.06
with “-”)
Investment loss (income expressed with
61,667,884.24 -11,634,384.72
“-”)
Decrease in deferred tax assets (increase
-50,266,107.56 -114,378,550.51
expressed with “-”)
Increase in deferred tax liabilities
133,638,436.31 -15,728,963.52
(decrease expressed with “-”)
Decrease in inventories (increase
103,490,060.63 -97,553,947.06
expressed with “-”)
Decrease in trade receivables (increase
273,447,550.24 549,292,336.67
expressed with “-”)
Increase in trade payables (decrease
-445,566,632.44 366,186,282.62
expressed with “-”)
Others
Net cash flows from operating activities 2,088,969,399.28 2,613,900,836.02
2. Significant investing and financing
activities not involving cash receipts and
payments:
Debt-to-capital swap
Convertible corporate bonds due within
one year
Fixed assets acquired under finance
leases
3. Net changes in cash and cash
equivalents:
Closing balance of cash 6,051,354,094.24 5,620,735,100.35
Less: Opening balance of cash 5,644,487,018.31 5,457,026,822.70
Add: Closing balance of cash equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash equivalents 406,867,075.93 163,708,277.65
(2) Net cash paid for the acquisition of subsidiaries in the current period
(3) Net cash received from the disposal of subsidiaries in the current period
(4) Components of cash and cash equivalents
In RMB
Item Closing balance Opening balance
I. Cash 6,051,354,094.24 5,644,487,018.31
Incl.: Cash on hand 426,978.14 559,941.39
Bank deposits immediately
6,050,927,116.10 5,643,927,076.92
available for withdrawal
III. Closing balance of cash and cash
6,051,354,094.24 5,644,487,018.31
equivalents
149
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
(5) Amounts subject to restriction on use but still presented as cash and cash equivalents
In RMB
Amount for the current Amount for the Reason for presentation as cash and cash
Item
period previous period equivalents
Immediately available for withdrawal despite
Offering proceeds 166,116,411.96 30,654,962.53
of restriction on use
Total 166,116,411.96 30,654,962.53
(6) Cash and bank balances not classified as cash and cash equivalents
In RMB
Amount for the Amount for the Reason for not classified as cash and cash
Item
current period previous period equivalents
Security deposit for term May be unavailable for payment due to
791,544,001.77 690,180,814.95
deposits pledge, freeze or otherwise
May be unavailable for payment due to
Security deposit for bills 537,443,017.99 497,103,353.58
pledge, freeze or otherwise
Security deposit for the May be unavailable for payment due to
230,197,429.36 230,197,429.36
acquisition pledge, freeze or otherwise
Security deposit for letters of May be unavailable for payment due to
61,127,995.41 73,225,915.43
credit pledge, freeze or otherwise
Security deposit for letters of May be unavailable for payment due to
70,997,096.62 54,841,699.43
guarantee pledge, freeze or otherwise
May be unavailable for payment due to
Security deposit for loans 211,812,961.30
pledge, freeze or otherwise
Total 1,903,122,502.45 1,545,549,212.75
80. Notes to items of the statement of changes in owners’ equity
81. Monetary items denominated in foreign currencies
(1) Monetary items denominated in foreign currencies
In RMB
Closing balance in foreign
Item Exchange rate Closing balance in RMB
currency
Cash and bank balances
Incl.: USD 530,338,989.42 7.1268 3,779,619,909.80
EUR 519,911.40 7.6617 3,983,405.17
HKD 81,799.07 0.9127 74,658.01
KRW 12,946,659.00 0.0052 67,322.63
SGD 2,725,675.37 5.279 14,388,840.28
NTD 175,979.00 0.2234 39,313.71
JPY 220,097.03 0.0447 9,838.34
SEK 33,074.71 0.6737 22,282.43
MXN 19,053,026.76 0.3857 7,348,752.42
150
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Accounts receivable
Incl.: USD 651,873,021.75 7.1268 4,645,768,651.41
EUR 26,690.33 7.6617 204,493.30
HKD
NTD 1,462,528.51 0.2234 326,728.87
Long-term borrowings
Incl.: USD 8,306,932.28 7.1268 59,201,844.97
EUR
HKD
Other receivables
Incl.: USD 251,396,925.19 7.1268 1,791,655,606.44
SGD 87,538.05 5.279 462,113.37
Short-term borrowings
Incl.: USD 144,501,328.85 7.1268 1,029,832,070.45
Accounts payable
Incl.: USD 281,020,802.66 7.1268 2,002,779,056.40
EUR 359,160.81 7.6617 2,751,782.38
SGD 38,172.36 5.2790 201,511.89
NTD 36,605.00 0.2234 8,177.56
JPY 763,869,956.00 0.0447 34,144,987.03
SEK 2,650.00 0.6737 1,785.31
MXN 2,291,768.38 0.3857 883,935.06
Employee benefits payable
Incl.: USD 4,569,366.81 7.1268 32,564,963.38
MXN 1,033,308.83 0.3857 398,547.22
Taxes payable
Incl.: USD 11,641,581.21 7.1268 82,967,220.97
MXN 8,542,023.88 0.3857 3,294,658.61
Other payables
Incl.: USD 213,233,051.89 7.1268 1,519,669,314.21
SGD 9,070.11 5.279 47,881.11
JPY 781,745.00 0.0447 34,944.00
Notes payable
Incl.: USD 63,507,320.49 7.1268 452,603,971.67
JPY 6,750,000.00 0.0447 301,725.00
Non-current liabilities due
within one year
Incl.: USD 28,515,030.87 7.1268 203,220,922.00
(2) Information about overseas operating entities, including main places of business and functional
currencies of major overseas operating entities, basis for the choice of functional currencies, and reasons
for changes in functional currencies:
□Applicable N/A
151
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
VIII. Research and Development Expenses
In RMB
Item Amount for the current period Amount for the previous period
Direct costs 284,790,576.60 171,995,246.32
Labor costs 267,132,170.20 221,188,241.37
Depreciation 45,587,062.83 38,704,246.34
Others 24,713,799.36 25,501,749.18
Total 622,223,608.99 457,389,483.21
IX. Changes in the Scope of Consolidation
X. Interests in Other Entities
1. Interests in subsidiaries
(1) Composition of the enterprise group
In RMB
Principal Place of Shareholding
Registere Nature of percentage Method of
Subsidiary place of incorporatio
d capital business acquisition
business n Direct Indirect
Business
combination
Suzhou Yongchuang Metal s involving
Manufacturin 100.00
Science and Technology Suzhou Suzhou entities
g %
Co., Ltd. under
common
control
Suzhou Dongkui Lighting Manufacturin 100.00
Suzhou Suzhou Established
Co., Ltd. g %
Manufacturin 100.00
Suzhou Chengjia Suzhou Suzhou Established
g %
Dongguan Dongshan
Manufacturin
Precision Manufacturing Dongguan Dongguan 95.00% 5.00% Established
g
Co., Ltd.
Suzhou Dongjiyuan Metal Manufacturin 100.00
Suzhou Suzhou Established
Technology Co., Ltd. g %
Manufacturin
Yancheng Dongshan Yancheng Yancheng 95.00% 5.00% Established
g
Suzhou Jebson Intelligent Manufacturin
Suzhou Suzhou 51.00% Established
Technology Co., Ltd. g
Suzhou Dongdai Electronic Manufacturin
Suzhou Suzhou 51.00% Established
Technology Co., Ltd. g
Suzhou Dongyan
Manufacturin
Electronic Technology Co., Suzhou Suzhou 51.00% Established
g
Ltd.
Yancheng Dongshan Yancheng Yancheng Property 95.00% 5.00% Established
152
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Business Management Co., management
Ltd.
Yancheng Dongshan
Manufacturin 100.00
Communication Yancheng Yancheng Established
g %
Technology Co., Ltd.
Shanghai Chengjia
Business & 100.00
Consulting Management Shanghai Shanghai Established
investment %
Co., Ltd.
Yancheng Mutto Optronics Manufacturin 100.00
Yancheng Yancheng Established
Technology Co., Ltd. g %
Dowell Smart Suzhou Co., Manufacturin 100.00
Suzhou Suzhou Established
Ltd. g %
MFLEX Yancheng Co., Manufacturin 100.00
Yancheng Yancheng Established
Ltd. g %
Business
combination
s involving
Manufacturin 100.00
MFLEX Suzhou Suzhou Suzhou entities not
g %
under
common
control
Business
combination
s involving
Manufacturin 100.00
MFLEX Chengdu Co., Ltd. Chengdu Chengdu entities not
g %
under
common
control
Business
combination
s involving
Manufacturin
RF Top Electronic Suzhou Suzhou 93.51% entities not
g
under
common
control
Business
combination
s involving
Manufacturin 100.00
Mutto Optronics Suzhou Suzhou entities not
g %
under
common
control
Business
combination
s involving
Multek Technology Manufacturin 100.00
Zhuhai Zhuhai entities not
(Zhuhai) Co., Ltd. g %
under
common
control
Business
combination
Manufacturin 100.00
Multek Industries Zhuhai Zhuhai s involving
g %
entities not
under
153
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
common
control
Business
combination
s involving
Manufacturin 100.00
Multek Electronics Zhuhai Zhuhai entities not
g %
under
common
control
Business
combination
s involving
Manufacturin 100.00
Multek Zhuhai Zhuhai Zhuhai entities not
g %
under
common
control
Business
combination
s involving
Manufacturin 100.00
Multek China Zhuhai Zhuhai entities not
g %
under
common
control
Multek Zhuhai Enterprise Business & 100.00
Zhuhai Zhuhai Established
Management Co., LTD investment %
Suzhou Dongbo Precision Manufacturin
Suzhou Suzhou 51.00% Established
Manufacturing Co., Ltd. g
100.00
MFLEX Shanghai Co., Ltd. Shanghai Shanghai Wholesale Established
%
Shenzhen Qindao
Business &
Dongchuang Investment Shenzhen Shenzhen 76.92% Established
investment
Partnership (L.P.)
Suzhou Dongke Real Estate 100.00
Suzhou Suzhou Real estate Established
Co., Ltd. %
Yancheng Dongchuang
Manufacturin 100.00
Precision Manufacturing Yancheng Yancheng Established
g %
Co., Ltd.
Suzhou Dongchen
Manufacturin 100.00
Intelligent Equipment Suzhou Suzhou Established
g %
Manufacturing Co., Ltd.
Shanghai Dongxin New
Manufacturin
Energy Technology Co., Shanghai Shanghai 95.00% 5.00% Established
g
Ltd.
Shanghai Donglan New
Manufacturin 100.00
Energy Technology Co., Shanghai Shanghai Established
g %
Ltd.
Suzhou Dongyue New
Manufacturin
Energy Technology Co., Kunshan Kunshan 90.00% 10.00% Established
g
Ltd.
Suzhou Dongshan
Business & 100.00
Industrial Investment Co., Suzhou Suzhou Established
investment %
Ltd.
154
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Suzhou Dongdi Holding Business & 100.00
Suzhou Suzhou Established
Limited investment %
Manufacturin 100.00
Suzhou JDI Suzhou Suzhou
g %
Chaowei Microelectronics Manufacturin 100.00
Yancheng Yancheng Established
(Yancheng) Co., Ltd. g %
Business & 100.00
Hong Kong Dongshan Hong Kong Hong Kong Established
investment %
Business
combination
s involving
Mutto Optronics Group Business & 100.00
BVI entities not
Limited investment %
under
common
control
Business & 100.00
DSBJ holdings Inc. USA Established
investment %
Business & 100.00
DSBJ International Inc. USA Established
investment %
Business & 100.00
DSBJ Solutions INC USA Established
investment %
Dragon Electronix Business & 100.00
USA Established
Holdings INC. investment %
Business
combination
s involving
Multi-Fineline Electronix, Business & 100.00
USA entities not
Inc. investment %
under
common
control
Business
combination
s involving
Business & 100.00
MFLEX Delaware, Inc. Delaware entities not
investment %
under
common
control
Business
combination
s involving
Multi-Fineline Electronix Business & 100.00
Singapore entities not
Singapore Pte. Ltd. investment %
under
common
control
Business
combination
s involving
Netherland Business & 100.00
MFLEX B.V. entities not
s investment %
under
common
control
Hong Kong Dongshan Business & 100.00
Hong Kong Established
Holding Limited investment %
155
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Business & 100.00
DSBJ PTE. LTD. Singapore Established
investment %
Multek Group (Hong Business & 100.00
Hong Kong Established
Kong) Limited investment %
Business & 100.00
Multek Technology, Inc. USA Established
investment %
Business
combination
s involving
Multek Technologies Business & 100.00
Mauritius entities not
Limited investment %
under
common
control
Business
combination
s involving
The Dii Group (BVI) Co. Business & 100.00
BVI entities not
Limited investment %
under
common
control
Business
combination
s involving
The Dii Group Asia Business & 100.00
Hong Kong entities not
Limited investment %
under
common
control
Business
combination
s involving
Multek Hong Kong Business & 100.00
Hong Kong entities not
Limited investment %
under
common
control
Business
combination
s involving
Business & 100.00
Astron Group Limited Hong Kong entities not
investment %
under
common
control
Business
combination
s involving
Vastbright PCB (Holding) Business & 100.00
Hong Kong entities not
Limited investment %
under
common
control
Business
combination
Multek Technology Business & 100.00 s involving
Germany
Germany GmbH investment % entities not
under
common
156
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
control
Multek Technology Business & 100.00
Sweden Established
Sweden AB investment %
Multek Technology Business & 100.00
Malaysia Established
Malaysia SDN.BHD investment %
Korea branch office of Business & 100.00
Korea Established
DSBJ Pte. Ltd. investment %
Business
combination
s involving
Autotech Producti on de Manufacturin 100.00
Mexico entities not
Mexico S. de R. L. de C.V. g %
under
common
control
Business
combination
s involving
Manufacturin 100.00
Aranda Tooling, Inc. USA entities not
g %
under
common
control
Business
combination
s involving
AutoTech Production Manufacturin 100.00
USA entities not
Services, Inc. g %
under
common
control
DSBJ
Manufacturin 100.00
MEXICO,S.DER.L.DEC.V Mexico Established
g %
.
Multi-Fineline Electronics Manufacturin 100.00
Thailand Established
(Thailand) Co., Ltd. g %
Hong Kong Dongdi Business & 100.00
Hong Kong Established
Holding Limited investment %
XI. Government Grants
1. Government grants recognized at the amount receivable at the end of the reporting period
Applicable □N/A
Closing balance of government grants receivable: RMB40,256,780.00.
Reason for failure to receive expected government grants at the expected time:
□Applicable N/A
2. Liabilities related to government grants
Applicable □N/A
In RMB
157
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Amount of
non- Amount
New grants Other
operating transferred to Related to
Opening received in changes in Closing
Item revenue other income assets/incom
balance the current the current balance
recognized in in the current e
period period
the current period
period
Deferred 656,700,278. Related to
733,456,685.17 2,774,900.00 79,531,306.68
income 49 assets
3. Government grants recognized in profit or loss
Applicable □N/A
In RMB
Item Amount for the current period Amount for the previous period
Government grants recognized in other
145,779,443.11 146,761,931.98
income
Effect of financial interest subsidy on
156,000.00
total profit
XII. Risks Associated with Financial Instruments
1. Risks arising from financial instruments
The Company’s objectives of risk management are to maintain a balance between risk and income, minimize the negative effect of
risks on the operating results of the Company and maximize the interests of the shareholders and other equity investors. On the basis
of such objectives of risk management, the Company’s basic risk management policy is designed to identify and analyze all kinds of
risks facing the Company, set appropriate risk thresholds in risk management, and monitor risks and adherence to limits in a timely
and reliable manner.
The Company faces a variety of risks associated with financial instruments in its daily activities, mainly including credit risk, liquidity
risk and market risk. Below is a summary of the policies for managing such risks considered and approved by the management.
(I) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to discharge an
obligation.
1. Credit risk management practice
(1) Assessment of credit risk
At each balance sheet date, the Company assesses whether the credit risk of a financial instrument has increased significantly since
initial recognition. In assessing whether the credit risk has increased significantly since initial recognition, the Company takes into
account reasonable and supportable information, which is available without undue cost or effort, including qualitative and quantitative
158
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
analysis based on historical data, external credit risk rating, and forward-looking information. The Company determines the changes
in default risk of financial instruments during their estimated lifetime through a comparison of the default risk at the balance sheet date
and the initial recognition date, on an individual or collective basis.
The Company determines that the credit risk of a financial instrument has increased significantly when one or more of the following
qualitative and quantitative standards are met:
1) Quantitative standard, mainly relates to the scenario in which, at the balance sheet date, the probability of default in the remaining
lifetime has risen by more than a certain percentage compared with the initial recognition; and/or
2) Qualitative standard mainly relates to significant adverse changes in the debtor’s business situation or financial position, and present
or expected changes in technology, market, economy or legal environment that will have a material adverse effect on the debtor’s
ability to repay.
(2) Definition of default and credit-impaired assets
A financial instrument is in default or credit impaired when one or more of the following conditions are met:
1) significant financial difficulty of the debtor.
2) any breach by the debtor of contract terms binding on it.
3) it becomes probable that the debtor will enter bankruptcy or other financial reorganization.
4) the creditors of the debtor, for economic or contractual reasons relating to the debtor’s financial difficulty, having granted to the
debtor a concession that the creditors would not otherwise consider.
2. Measurement of expected credit losses
The key factors in the measurement of expected credit losses include the probability of default, loss given default, and exposure to
default risk. The Company has developed a model of the probability of default, loss given default and exposure to default risk on the
basis of quantitative analysis of historical data (e.g. counterparty rating, guarantee measures and collateral type, payment method, etc.)
and forward-looking information.
3. See Notes V(I)3, V(I)4, V(I)7 and V(I)10 for the conciliation table of opening balances and closing balances of allowance for
impairment loss on financial instruments.
4. Credit risk exposure and credit risk concentration
The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In order to control such risks, the
Company has taken the following measures:
(1) Cash and bank balances
The Company deposits its bank balances and other monetary capital in financial institutions with relatively high credit ratings, so its
credit risk is relatively low.
159
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
(2) Accounts receivable
The Company performs credit assessments on customers using credit settlement on an ongoing basis. The Company selects approved
and creditworthy customers based on the result of credit assessment, and monitors the balance of accounts receivable from them on an
ongoing basis, to avoid significant risk of doubtful accounts.
As the Company only deals with approved and creditworthy third parties, no collateral is required. As of June 30, 2024, the Company
faced certain credit concentration risks. In particular, 49.75% (December 31, 2023: 60.39%) of the Company’s accounts receivable
came from the top 5 customers, without any collateral or other credit enhancement.
The Company’s maximum exposure to credit risk is the carrying value of each financial asset in the balance sheet.
(II) Liquidity risk
Liquidity risk is the risk that the Company may not have enough cash to satisfy its obligation to deliver cash or other financial assets,
due to the inability to liquidate financial assets at fair value in a timely manner, or failure of counterparties to discharge their contract
liabilities, acceleration of debts, failure to generate expected cash flows, or otherwise.
In order to control such risk, the Company utilizes a variety of financing tools such as settlement by means of notes, bank loans, etc.,
combines long-term and short-term financing to optimize financing structure, and maintains a balance between financing
sustainability and flexibility. The Company has obtained lines of credit from many commercial banks to satisfy its working capital
requirements and capital expenditures.
Financial liabilities classified by remaining maturity
In RMB
As of the end of the current period
Item Undiscounted
Carrying value Within 1 year 1-3 years Over 3 years
contract amount
Bank loans (including
non-current liabilities 13,266,747,068.11 13,771,254,176.22 8,289,023,807.20 4,013,967,725.26 1,468,262,643.76
due within one year)
Financial liabilities held
180,575,141.54 180,575,141.54 180,575,141.54
for trading
Notes payable
979,409,601.51 979,409,601.51 979,409,601.51
Accounts payable
8,353,477,330.14 8,353,477,330.14 8,353,477,330.14
Other payables
81,678,161.65 81,678,161.65 81,678,161.65
Lease liabilities
(including non-current
1,905,076,496.37 2,053,841,740.42 25,498,078.10 1,594,309,427.07 434,034,235.25
liabilities due within
one year)
Long-term payables
(including non-current
276,056,389.48 276,056,389.48 21,380,400.00 254,675,989.48
liabilities due within
one year)
Subtotal 25,043,020,188.80 25,696,292,540.96 17,931,042,520.13 5,862,953,141.81 1,902,296,879.02
160
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
(Continued)
As of the end of the previous year
Item Undiscounted
Carrying value Within 1 year 1-3 years Over 3 years
contract amount
Bank loans (including non-
12,329,399,469.8 12,883,478,634.7 3,054,956,512.8 1,846,846,346.3
current liabilities due 7,981,675,775.53
2 1 4 4
within one year)
Financial liabilities held for
104,174,076.23 104,174,076.23 104,174,076.23
trading
Notes payable
909,171,215.93 909,171,215.93 909,171,215.93
Accounts payable
8,039,107,176.52 8,039,107,176.52 8,039,107,176.52
Other payables
80,188,628.54 80,188,628.54 80,188,628.54
Lease liabilities (including
1,609,372,610.7
non-current liabilities due 1,872,497,186.10 2,130,134,243.16 77,293,792.42 443,467,840.03
1
within one year)
Long-term payables
(including non-current
296,995,789.48 296,995,789.48 296,995,789.48
liabilities due within one
year)
23,631,533,542.6 24,443,249,764.5 4,961,324,913.0 2,290,314,186.3
Subtotal 17,191,610,665.17
2 7 3 7
(III) Market Risk
Market risk is the risk of fluctuation in the fair value or future cash flows of financial instruments due to changes in market prices.
Market risk mainly includes interest risk and foreign exchange risk.
1. Interest risk
Interest risk is the risk of fluctuation in the fair value or future cash flows of financial instruments due to changes in market interest
rates. Interest-bearing financial instruments with fixed interest rates expose the Company to fair value interest rate risk, while interest-
bearing financial instruments with floating interest rates expose the Company to cash flow interest rate risk. The Company determines
the proportion of fixed-rate financial instruments and floating-rate financial instruments based on the market environment, and reviews
and monitors the appropriateness of its portfolio of financial instruments on a regular basis. The cash flow interest rate risk that the
Company faces is primarily associated with the floating-rate bank loans owed by the Company, which amounted to
RMB2,447,213,171.46 as of June 30, 2024 (December 31, 2023: RMB1,406,781,793.94). Supposing the interest rate changes by 50
basic points while other variables remain unchanged, the Company’s total profit and shareholders’ interest will not be materially
affected.
2. Foreign exchange risk
Foreign exchange risk is the risk of fluctuation in the fair value or future cash flows of financial instruments due to changes in exchange
rates. The Company’s foreign exchange risk relates mainly to foreign currency denominated monetary assets and liabilities. When a
161
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
short-term imbalance occurs on foreign currency denominated assets and liabilities, the Company may trade foreign currencies at
market exchange rates when necessary, in order to maintain the net risk exposure at an acceptable level.
See Note V(V)2 to the Financial Statements for details of foreign currency denominated monetary assets and liabilities as of the end
of the reporting period.
2. Hedging
3. Financial assets
XIII. Fair Value Disclosures
1. Closing balance of the fair value of assets and liabilities measured at fair value
In RMB
Closing balance of fair value
Item Level 1 fair
Level 2 fair value Level 3 fair value
value Total
measurement measurement
measurement
I. Recurring fair value measurement -- -- -- --
1. Financial assets at fair value through
140,916,032.21 140,916,032.21
profit or loss
(2) Investment in equity instruments 69,320,128.82 69,320,128.82
(4) Derivatives 25,782,508.65 25,782,508.65
(5) Bank wealth management products 45,813,394.74 45,813,394.74
(II) Other debt investments 199,435,267.61 199,435,267.61
(III) Investment in other equity
283,657,110.00 283,657,110.00
instruments
Total assets measured at fair value on a
624,008,409.82 624,008,409.82
recurring basis
(VI) Financial liabilities held for trading 180,575,141.54 180,575,141.54
Total liabilities measured at fair value on a
180,575,141.54 180,575,141.54
recurring basis
II. Fair value measurement on a non-
-- -- -- --
recurring basis
XIV. Related Parties and Related-party Transactions
1. Parent of the Company
The Company’s actual controllers are YUAN Yonggang, YUAN Yongfeng and YUAN Fugen, who hold 11.83%, 13.01% and 3.44%
of the total shares and votes of the Company respectively, and 28.27% of the total shares and votes of the Company in aggregate.
162
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
2. Subsidiaries of the Company
The particulars of the subsidiaries of the Company are set forth in “Interests in Other Entities”.
3. Joint ventures and associates of the Company
The particulars of the joint ventures and associates of the Company are set forth in “Interests in Other Entities”.
Other joint ventures or associates that have carried out related-party transactions with the Company in the current period or the
previous periods with balances recorded in the current period:
Name of joint venture or associate Relationship with the Company
Suzhou Toprun Electric Equipment Co., Ltd. Associate
Suzhou Dongcan Optoelectronics Technology Co., Ltd. Associate
4. Other related parties
Name of other related party Relationship with the Company
Hai Dixin Semiconductor (Nantong) Co., Ltd. Associate
Anhui Landun Photoelectron Co., Ltd. A company controlled by the actual controllers of the Company
Shanghai Corkuna New Material Technologies Co., Ltd. A company controlled by the actual controllers of the Company
Suzhou Corkuna New Material Technologies Co., Ltd. A company controlled by the actual controllers of the Company
5. Related-party transactions
(1) Related-party commodity and service transactions
Purchase of goods and receipt of services from related parties
In RMB
Amount for Transaction Whether or not
Subject Amount for the
Related party the current quota exceed the
matter previous period
period approved transaction quota?
Suzhou Toprun Electric Equipment Purchase of
No
Co., Ltd. goods
Shanghai Corkuna New Material Purchase of
6,839,456.25 No
Technologies Co., Ltd. goods
Suzhou Corkuna New Material Purchase of
1,373,169.59 No
Technologies Co., Ltd. goods
Suzhou Dongcan Optoelectronics Purchase of
28,320.00 No 11,688.80
Technology Co., Ltd. goods
Sale of goods and rendering of services to related parties
In RMB
Amount for the previous
Related party Subject matter Amount for the current period
period
Suzhou Toprun Electric Equipment Co.,
Sale of services 101,886.79
Ltd.
Suzhou Toprun Electric Equipment Co.,
Sale of equipment
Ltd.
Suzhou Dongcan Optoelectronics
Sale of goods
Technology Co., Ltd.
Suzhou Dongcan Optoelectronics Rendering of
25,776.74 63,630.55
Technology Co., Ltd. services
163
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Rendering of
Anhui Landun Photoelectron Co., Ltd. 269,820.00
services
Suzhou Corkuna New Material
Sale of equipment
Technologies Co., Ltd.
(2) Related-party entrusted management/contracts
(3) Related-party leases
(4) Related-party guarantees
The Company as guarantor:
In RMB
Whether the obligation
Amount Effective date of Expiry date of
Obligor guaranteed has been
guaranteed guarantee guarantee
discharged
Suzhou Toprun Electric Equipment
5,400,000.00 August 24, 2023 August 23, 2024 No
Co., Ltd.
Suzhou Toprun Electric Equipment
6,600,000.00 September 5, 2023 September 4, 2024 No
Co., Ltd.
Suzhou Toprun Electric Equipment
8,000,000.00 January 24, 2024 January 23, 2025 No
Co., Ltd.
Shanghai Fu Shan Precision
30,000,000.00 October 12, 2023 October 11, 2024 No
Manufacturing Co., Ltd.
The Company as obligor:
In RMB
Whether the obligation
Effective date of Expiry date of
Guarantor Amount guaranteed guaranteed has been
guarantee guarantee
discharged
YUAN Yonggang and No
500,000,000.00 March 22, 2018 August 28, 2024
YUAN Yongfeng
(5) Related-party loans
(6) Related-party asset transfer and debt restructuring
(7) Remunerations of key officers
In RMB
Item Amount for the current period Amount for the previous period
Remunerations of key officers 11,522,600.00 10,614,800.00
6. Amounts receivable from/payable to related parties
(1) Amounts receivable from related parties
In RMB
Closing balance Opening balance
Item Related party
Book balance Allowance for Book balance Allowance for
164
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
doubtful accounts doubtful accounts
Suzhou Dongcan
Accounts
Optoelectronics Technology 282,823.95 50,538.47 257,026.80 22,356.61
receivable
Co., Ltd.
Accounts Suzhou Toprun Electric
129,457.70 1,150.29
receivable Equipment Co., Ltd.
Accounts Hai Dixin Semiconductor
1,607,132.92 1,607,132.92 1,607,132.92 1,607,132.92
receivable (Nantong) Co., Ltd.
Accounts Suzhou Corkuna New Material
339,816.02 1,699.08
receivable Technologies Co., Ltd.
Other Hai Dixin Semiconductor
1,790,748.55 1,790,748.55 1,790,748.55 1,790,748.55
receivables (Nantong) Co., Ltd.
(2) Amounts payable to related parties
In RMB
Item Related party Closing book balance Opening book balance
Suzhou Dongcan Optoelectronics
Accounts payable 262,791.75 310,347.77
Technology Co., Ltd.
Shanghai Corkuna New Material
Accounts payable 4,518,253.61 7,338,661.31
Technologies Co., Ltd.
Suzhou Corkuna New Material
Accounts payable 1,399,264.96
Technologies Co., Ltd.
Suzhou Toprun Electric Equipment
Contract liabilities 74,822.30
Co., Ltd.
XV. Share-based Payments
1. Summary of share-based payments
Applicable □N/A
In RMB
Granted in the current Exercised in the Expired in the current
Vested in the current period
Type of period current period period
grantees Number of Number of Number Number of
Amount Amount Amount Amount
shares shares of shares shares
Administra
tive 559,889 10,973,815.00 33,560 657,766.00
personnel
R&D
58,370 1,144,052.00 1,213 23,775.00
personnel
Sales
64,799 1,270,060.00
personnel
Total 683,058 13,387,927.00 34,773 681,541.00
2. Equity-settled share-based payments
Applicable □N/A
In RMB
Method for determining the fair value of equity instruments at Closing price of the Company’s stock at the date the relevant
the grant date employee stock ownership plan was approved by the general
165
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
meeting of shareholders
The number approved by the Board of Directors and the
Important parameters for the fair value of equity instruments at
general meeting of shareholders of the Company, taking into
the grant date
account the performance indicators
Basis for determining the number of exercisable equity
N/A
instruments
Reason of significant differences between the current estimates
None
and previous estimates
Aggregate amount of equity-settled share-based payments
26,716,385.96
recorded in capital reserve
Total amount of equity-settled share-based payments
1,107,141.50
recognized in expenses in the current period
3. Cash-settled share-based payments
4. Share-based payments in the current period
Applicable □N/A
In RMB
Type of grantees Equity-settled share-based payments Cash-settled share-based payments
Administrative personnel 910,450.75
R&D personnel 94,609.70
Sales personnel 102,081.05
Total 1,107,141.50
XVI. Commitments and Contingencies
XVII. Subsequent Events
XVIII. Other Significant Information
XIX. Notes to Key Items of the Standalone Financial Statements
1. Accounts receivable
(1) Accounts receivable by age
In RMB
Age Closing book balance Opening book balance
Within 1 year (inclusive) 2,271,202,511.02 1,278,554,642.91
Within 6 months 2,139,214,083.54 1,195,439,845.81
7-12 months 131,988,427.48 83,114,797.10
1-2 years 224,371,577.97 689,194,247.06
2-3 years 97,746,067.54 4,893,435.36
Over 3 years 81,216,880.17 227,083,256.45
166
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
3-4 years 8,755,345.18 195,473,911.72
4-5 years 42,314,052.73 9,831,416.31
Over 5 years 30,147,482.26 21,777,928.42
Total 2,674,537,036.70 2,199,725,581.78
(2) Accounts receivable by method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for Allowance for
Item Book balance Carrying Book balance Carrying
doubtful accounts doubtful accounts
value value
Amount % Amount % Amount % Amount %
Account
s
receivab
le with
allowanc 12,127,4 12,127,4 12,127,4 12,127,4
0.45% 100.00% 0.55% 100.00%
e 13.92 13.92 13.92 13.92
recogniz
ed
individu
ally
Incl.:
Account
s
receivab
le with
allowanc 2,662,40 159,640, 2,502,76 2,187,59 102,894, 2,084,70
99.55% 6.00% 99.45% 4.70%
e 9,622.78 829.66 8,793.12 8,167.86 892.64 3,275.22
recogniz
ed
collectiv
ely
Incl.:
2,674,53 171,768, 2,502,76 2,199,72 115,022, 2,084,70
Total 100.00% 6.42% 100.00% 5.23%
7,036.70 243.58 8,793.12 5,581.78 306.56 3,275.22
Accounts receivable with allowance recognized collectively by category name:
In RMB
Closing balance
Item Allowance for doubtful
Book balance %
accounts
Group of related parties
within the scope of 1,528,387,645.68
consolidation
Aging group 1,134,021,977.10 159,640,829.66 14.08%
Total 2,662,409,622.78 159,640,829.66
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
(3) Allowance for doubtful accounts recognized, recovered or reversed in the current period
(4) Accounts receivable actually written off in the current period
(5) Top 5 debtors in terms of closing balance of accounts receivable and contract assets
In RMB
Closing balance of
Total closing % of total closing
allowance for
Closing balance of balance of balance of
Closing balance of doubtful accounts
Company name accounts accounts accounts
contract assets receivable and
receivable receivable and receivable and
impairment of
contract assets contract assets
contract assets
Debtor 1 675,656,845.42 675,656,845.42 25.26%
Debtor 2 455,870,292.70 455,870,292.70 17.04%
Debtor 3 214,492,463.80 213,386,916.35 8.02% 1,105,547.45
Debtor 4 145,003,763.36 144,278,744.54 5.42% 725,018.82
Debtor 5 143,534,517.06 143,534,517.06 5.37%
Total 1,634,557,882.34 1,632,727,316.07 61.11% 1,830,566.27
2. Other receivables
In RMB
Item Closing balance Opening balance
Dividends receivable 1,559,915,617.48 2,203,111,413.70
Other receivables 5,662,285,933.05 3,049,524,125.86
Total 7,222,201,550.53 5,252,635,539.56
(1) Dividends receivable
1) Dividends receivable by category
In RMB
Item (or investee) Closing balance Opening balance
HongKongDongshanHoldingLimited 1,293,915,617.48 1,817,111,413.70
Yancheng Dongshan 266,000,000.00 266,000,000.00
Suzhou JDI 120,000,000.00
Total 1,559,915,617.48 2,203,111,413.70
2) Significant dividends receivable aged over one year
In RMB
Whether or not
Reason for failure to
Item (or investee) Closing balance Age impaired and the basis
collect
for determination
To support the
2-3
Hong Kong Dongshan Holding Limited 179,100,539.32 development of the
years
subsidiary
168
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
To support the
2-3
Yancheng Dongshan 266,000,000.00 development of the
years
subsidiary
Total 445,100,539.32
(2) Other receivables
1) Other receivables by nature
In RMB
Nature of account Closing book balance Opening book balance
Current accounts 5,647,610,932.99 3,043,264,560.13
Security deposit 1,963,238.00 2,042,208.17
Loans and reserve fund 12,885,662.09 2,562,780.89
Temporary payment receivable 3,515,919.51 4,250,557.91
Total 5,665,975,752.59 3,052,120,107.10
2) Other receivables by age
In RMB
Age Closing book balance Opening book balance
Within 1 year (inclusive) 3,737,088,391.59 2,918,638,154.04
1-2 years 1,804,522,093.79 123,650,779.00
2-3 years 121,595,000.00 1,451,851.51
Over 3 years 2,770,267.21 8,379,322.55
3-4 years 691,360.66 8,199,590.38
4-5 years 1,930,398.55 39,000.00
Over 5 years 148,508.00 140,732.17
Total 5,665,975,752.59 3,052,120,107.10
3) Other receivables by the method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for Allowance for
Item Book balance Carrying Book balance Carrying
doubtful accounts doubtful accounts
value value
Amount % Amount % Amount % Amount %
Incl.:
Other
receivab
les with
allowanc 5,665,97 3,689,81 5,662,28 3,052,12 2,595,98 3,049,52
100.00% 0.09% 100.00% 0.09%
e 5,752.59 9.54 5,933.05 0,107.10 1.24 4,125.86
recogniz
ed
collectiv
169
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
ely
Incl.:
5,665,97 3,689,81 5,662,28 3,052,12 2,595,98 3,049,52
Total 100.00% 0.09% 100.00% 0.09%
5,752.59 9.54 5,933.05 0,107.10 1.24 4,125.86
Other receivables with allowance recognized collectively:
In RMB
Closing balance
Item Allowance for doubtful
Book balance %
accounts
Group of related parties
within the scope of 5,647,610,932.99
consolidation
Aging group 18,364,819.60 3,689,819.54
Incl.: Within 1 year 14,798,058.15 739,902.91 5.00%
1-2 years 546,494.24 54,649.42 10.00%
2-3 years 250,000.00 125,000.00 50.00%
Over 3 years 2,770,267.21 2,770,267.21 100.00%
Total 5,665,975,752.59 3,689,819.54
Recognition of allowance for doubtful accounts in accordance with the general model of expected credit losses:
In RMB
Stage 1 Stage 2 Stage 3
Allowance for doubtful Lifetime expected Lifetime expected
12-month expected Total
accounts credit loss (not credit credit loss (credit
credit loss
impaired) impaired)
Balance on January 1,
182,023.10 230,577.90 2,183,380.24 2,595,981.24
2024
In the current period:
- Transferred to stage 2 -6,382.75 6,382.75
- Transferred to stage 3 -182,311.23 182,311.23
Recognized 564,262.56 529,575.74 1,093,838.30
Balance on June 30,
739,902.91 54,649.42 2,895,267.21 3,689,819.54
2024
4) Allowance for doubtful accounts recognized, recovered or reversed in the current period
5) Other receivables actually written off in the current period
6) Top 5 debtors in terms of closing balance of other receivables
In RMB
% of total closing Closing balance of
Nature of
Company name Closing balance Age balance of other allowance for
account
receivables doubtful accounts
Current Within 1
Mutto Optronics 1,125,143,324.11 21.00%
accounts year
Mutto Optronics Current 33,047,515.78 1-2 years 0.62%
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
accounts
Current Within 1
Yancheng Dongshan 359,676,253.19 6.71%
accounts year
Current
Yancheng Dongshan 520,664,694.87 1-2 years 9.72%
accounts
Hong Kong Dongshan Holding Current Within 1
180,782,948.50 3.37%
Limited accounts year
Hong Kong Dongshan Holding Current
344,990,119.22 1-2 years 6.44%
Limited accounts
Hong Kong Dongshan Holding Current
121,345,000.00 2-3years 2.27%
Limited accounts
Current
MFLEX Yancheng 565,716,111.78 1-2 years 10.56%
accounts
Dongguan Dongshan Precision Current Within 1
484,524,251.89 9.04%
Manufacturing Co., Ltd. accounts year
Total 3,735,890,219.34 69.73%
3. Long-term equity investments
In RMB
Closing balance Opening balance
Item Allowance for Allowance for
Book balance Carrying value Book balance Carrying value
impairment loss impairment loss
Investments in 9,551,215,019. 9,417,525,019. 9,515,272,968. 9,381,582,968.
133,690,000.00 133,690,000.00
subsidiaries 51 51 95 95
Investments in
associates and 99,300,142.92 17,507,056.47 81,793,086.45 102,227,354.08 17,507,056.47 84,720,297.61
joint ventures
9,650,515,162. 9,499,318,105. 9,617,500,323. 9,466,303,266.
Total 151,197,056.47 151,197,056.47
43 96 03 56
(1) Investments in subsidiaries
In RMB
Opening Changes in the current period Closing
Opening balance of Closing balance of
balance allowance Allowance balance allowance
Investee Additional Reduced for
(carrying for Others (carrying for
value) impairment investment investment impairment value) impairment
loss loss loss
Dongguan
Dongshan
342,000,00 342,000,00
Precision
0.00 0.00
Manufacturing
Co., Ltd.
Hainan Chengjia
Technology
0.00
Consulting Co.,
Ltd.
MFLEX
2,023,777.3 2,023,777.3
Shanghai Co.,
0 0
Ltd.
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Shenzhen
Qindao
Dongchuang 100,000,00 100,000,00
Investment 0.00 0.00
Partnership
(L.P.)
RF Top 372,863,93 372,880,05
16,115.30
Electronic 9.84 5.14
Suzhou Chengjia
Precision 80,104,811. 80,109,368.
4,557.02
Manufacturing 22 24
Co., Ltd.
Suzhou Dongbo
Precision 5,100,000.0 5,100,000.0
Manufacturing 0 0
Co., Ltd.
Suzhou Dongdai
1,530,000.0 1,530,000.0
Electronic Tech
0 0
Co Ltd.
Suzhou
Dongjiyuan
52,600,000. 52,600,000.
Metal
00 00
Technology Co.,
Ltd.
Suzhou Dongke
152,389,09 152,389,09
Real Estate Co.,
6.00 6.00
Ltd.
Suzhou Dongkui
12,100,000. 12,100,000.
Lighting Co.,
00 00
Ltd.
Suzhou Dongyan
Electronic 1,530,000.0 1,530,000.0
Technology Co., 0 0
Ltd.
Suzhou Jebson
Intelligent
255,000.00 255,000.00
Technology Co.,
Ltd.
Yongchuang 451,576,72 451,582,71
5,983.74
Tech 6.89 0.63
Suzhou Yuanshi
Electronic
0.00
Technology Co.,
Ltd.
Hong Kong 3,744,565,1 133,690,00 3,744,565,1 133,690,00
Dongshan 50.00 0.00 50.00 0.00
Hong Kong
452,677,88 452,677,88
Dongshan
0.00 0.00
Holding Limited
Yancheng 1,093,572,9 1,093,619,6
46,650.42
Dongshan 60.50 10.92
Yancheng 3,064,464.4 2,802.80 3,067,267.2
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Dongshan 0 0
Business
Management
Co., Ltd.
Yancheng
Dongshan
280,383,77 280,401,40
Communication 17,633.48
0.29 3.77
Technology Co.,
Ltd.
1,382,684,0 1,382,684,0
Suzhou JDI
03.83 03.83
Suzhou
Dongshan
20,010,000. 20,010,000.
Industrial
00 00
Investment Co.,
Ltd.
Shanghai
Dongxin New
80,000,000. 80,000,000.
Energy
00 00
Technology Co.,
Ltd.
Yancheng
Dongchuang
270,000,00 270,000,00
Precision
0.00 0.00
Manufacturing
Co., Ltd.
Suzhou Dongyue
New Energy 465,000,00 35,000,000. 500,000,00
Technology Co., 0.00 00 0.00
Ltd.
Multek China 68,352.66 2,971.86 71,324.52
Mutto Optronics 867,088.50 36,148.98 903,237.48
6,894,726.6 7,193,259.6
MFLEX Suzhou 298,532.96
4 0
Yancheng Mutto
Optronics
45,568.40 1,981.24 47,549.64
Technology Co.,
Ltd.
MFLEX 4,298,839.8 4,484,974.3
186,134.44
Yancheng 8 2
Multek 2,355,919.4 2,458,350.7
102,431.28
Industries 4 2
Multek Zhuhai 287,084.72 12,481.96 299,566.68
Dowell Smart
12,639.46 1,576.80 14,216.26
Suzhou Co., Ltd.
Multek Zhuhai
Enterprise
721,168.98 206,048.28 927,217.26
Management
Co., LTD
9,381,582,9 133,690,00 35,000,000. 9,417,525,0 133,690,00
Total 942,050.56
68.95 0.00 00 19.51 0.00
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
2) Investments in associates and joint ventures
In RMB
Changes in the current period
Openi Closin
Openi ng Invest Adjust Closin g
Declar
ng balanc ment ment g balanc
ed Allow
balanc e of incom to balanc e of
Additi Reduc Other cash ance
Investee e allowa e or other e allowa
onal ed change divide for
(carryi nce for loss compr Others (carryi nce for
invest invest s in nds or impair
ng impair under ehensi ng impair
ment ment equity profit ment
value) ment equity ve value) ment
distrib loss
loss metho incom loss
ution
d e
I. Joint ventures
II. Associates
Suzhou
Toprun 11,641 11,661
19,928
Electric ,777.5 ,705.9
.38
Equipment 5 3
Co., Ltd.
Shenzhen
Nanfang
17,507 17,507
Blog
,056.4 ,056.4
Technology
7 7
Developmen
t Co., Ltd.
Shanghai Fu
Shan
Precision
Manufacturi
ng Co., Ltd.
Suzhou
LEGATE 12,352 - 11,642
Intelligent ,316.9 709,68 ,629.6
Equipment 6 7.28 8
Co., Ltd.
Suzhou
Dongcan
-
Optoelectro 3,797, 3,349,
447,41
nics 258.35 842.73
5.62
Technology
Co., Ltd.
Jiangsu
Nangao
Intelligent -
4,259, 3,410,
Equipment 848,62
369.62 739.83
Innovation 9.79
Center Co.,
Ltd.
Jiaozuo
Songyang 26,753 - 26,521
Optoelectric ,781.0 232,32 ,458.2
Technology 7 2.81 6
Co., Ltd.
Suzhou 25,915 - 25,206
174
Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
Yongxin ,794.0 709,08 ,710.0
Jingshang 6 4.04 2
Venture
Capital
Partnership
(L.P.)
84,720 17,507 - 81,793 17,507
Subtotal ,297.6 ,056.4 2,927, ,086.4 ,056.4
1 7 211.16 5 7
84,720 17,507 - 81,793 17,507
Total ,297.6 ,056.4 2,927, ,086.4 ,056.4
1 7 211.16 5 7
4. Operating revenue and operating costs
In RMB
Amount for the current period Amount for the previous period
Item
Income Cost Income Cost
Primary business 2,063,759,581.25 1,991,893,561.96 1,674,220,405.88 1,691,465,686.19
Other business 82,843,913.95 25,663,449.45 80,118,185.29 18,217,479.00
Total 2,146,603,495.20 2,017,557,011.41 1,754,338,591.17 1,709,683,165.19
5. Investment income
In RMB
Item Amount for the current period Amount for the previous period
Income from long-term equity
436,776.92
investments under cost method
Income from long-term equity
-2,927,211.16 -633,126.48
investments under the equity method
Investment income from the disposal of
-2,651,138.83
financial assets held for trading
Total -5,578,349.99 -196,349.56
XX. Supplementary Information
1. Statement of non-recurring gain or loss for the current period
Applicable □N/A
In RMB
Item Amount Remark
Gain or loss from disposal of non-current assets -36,219,263.01
Government grants recognized in profit or loss (excluding the government grants
that are closely related to the business of the Company, conform to the applicable
145,779,443.11
policies of the country, are provided in accordance with the established standards,
and continuously affect the Company’s profit or loss)
Gain or loss on changes in fair value of financial assets and financial liabilities held
by non-financial entities, and gain or loss on disposal of financial assets and -59,013,703.39
financial liabilities, except for effective hedges held in the ordinary course of
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Suzhou Dongshan Precision Manufacturing Co., Ltd. Semi-Annual Report 2024
business
Other non-operating revenues and expenses 3,644,170.97
Less: Effect on income tax 9,842,216.40
Effect on minority interests (exclusive of tax) -232,008.40
Total 44,580,439.68 --
Other items of gain or loss within the meaning of non-recurring gain or loss:
□Applicable N/A
We do not have any other items of gain or loss within the meaning of non-recurring gain or loss.
Classification of any item of non-recurring gain or loss defined by the Explanatory Announcement No. 1 on Information Disclosure
for Companies Publicly Offering Securities - Non-recurring gain or Loss as recurring profit or loss:
□Applicable N/A
2. Return on equity and earnings per share
Weighted Earnings per share
Profit for the reporting period average return Basic earnings per share Diluted earnings per share
on net assets (RMB/share) (RMB/share)
Net profit attributable to ordinary
3.09% 0.33 0.33
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after deduction 2.84% 0.30 0.30
of non-recurring gain or loss
3. Differences in accounting data under the CASBEs and overseas accounting standards
(1) Differences in net profit and net assets disclosed in the financial report prepared under the CASBEs and
the IFRS
□Applicable N/A
(2) Differences in net profit and net assets disclosed in the financial report prepared under the CASBEs and
overseas accounting standards
□Applicable N/A
Suzhou Dongshan Precision Manufacturing Co., Ltd.
Legal Representative: YUAN Yonggang
August 20, 2024
176
