Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Hangzhou ROBAM Appliances Co., Ltd.
2023 Annual Report
April 2024
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
2023 Annual Report
Section 1 Important Notes, Contents and Definitions
The board of directors, the board of supervisors and directors, supervisors and senior
management of the Company hereby guarantee that no false or misleading statement or
major omission was made to the materials in this annual report and that they will assume
all the responsibility, individually and jointly, for the authenticity, accuracy and
completeness of the contents of the annual report.
Ren Jianhua, the head of the Company, Zhang Guofu, the head of accounting work, and
Zhang Guofu, the head of accounting body (accountant in charge), guarantee the
authenticity, accuracy and completeness of the financial report in the annual report.
All directors of the Company personally attended the board meeting for reviewing this
report.
The Company has risks such as policy fluctuations in the real estate market, price
fluctuations of raw materials and intensifying market competition. Please pay attention to
the investment risks.
The preplanned profit distribution deliberated and approved by the board of directors:
taking 944,094,916 shares as the radix (the existing total share capital of 949,024,050 shares,
excluding 4,929,134 shares repurchased), the Company will send cash dividends of RMB 5
(tax inclusive) and 0 bonus share (tax inclusive) to all shareholders for every 10 shares, and
instead of converting capital reserve into share capital.
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Contents
Section 1 Important Notes, Contents and Definitions .................................................................... 2
Section 2 Company Profile and Major Financial Indicators ......................................................... 6
Section 3 Management Discussion and Analysis ........................................................................... 10
Section 4 Corporate Governance .................................................................................................... 22
Section 5 Environmental and Social Responsibility ..................................................................... 39
Section 6 Important Matters ........................................................................................................... 40
Section 7 Changes in Shares and Shareholders ............................................................................ 45
Section 8 Information Related to Preferred Shares ...................................................................... 50
Section 9 Bond-related Information ............................................................................................... 51
Section 10 Financial Report ............................................................................................................ 52
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Directory of documents available for inspection
I. Financial statements containing signatures of the legal representative, the head of accounting work, and the head of accounting
body with seals.
II. Original audit report stamped by ShineWing Certified Public Accountants (Special general partnership) and signed and stamped
with the certified public accountants.
III. Original copies of the documents and announcement of the Company published on the newspaper designated by the CSRC in
the reporting period.
IV. 2023 annual report of the Company signed by the legal representative.
V. Other relevant information.
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Definitions
Terms Refers to Definition
The Company, company, Robam
Refers to Hangzhou ROBAM Appliances Co., Ltd.
Appliances
Mingqi Refers to Hangzhou Mingqi Electric Co., Ltd.
Shengzhou Kinde Intelligent Kitchen
Kinde Intelligent Refers to
Electric Co., Ltd.
Hangzhou Jinhe Electric Appliances Co.,
Jinhe Electric Appliances Refers to
Ltd
Hangzhou Robam Industrial Group Co.,
ROBAM Group Refers to Ltd., controlling shareholder of the
Company
Reporting period Refers to Year 2023
Beijing All View Cloud Data Technology
AVC Refers to
Co., Ltd.
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Section 2 Company Profile and Major Financial Indicators
I. Company Information
Stock abbreviation ROBAM Stock code 002508
Stock exchange for stock listing Shenzhen Stock Exchange
Company name in Chinese Hangzhou ROBAM Appliances Co., Ltd.
Company short name in
ROBAM
Chinese
Company name in foreign
HANGZHOU ROBAM APPLIANCES CO.,LTD.
language (if any)
Company short name in English
ROBAM
(if any)
Legal representative of the
Ren Jianhua
Company
No. 592 Linping Av., Yuhang Economic Development Zone, Yuhang District, Hangzhou City,
Registered address
Zhejiang Province
Postal code of the registered
311100
address
Historical changes of the
N/A
Company's registered address
Office address No. 592 Linping Av., Linping District, Hangzhou, China
Postal code of the office
311100
address
Company website www.robam.com
Email robam@robam.com
II. Contact Person and Contact Information
Secretary to the board of directors Securities affairs representative
Name Wang Gang
No. 592 Linping Av., Linping District,
Contact address:
Hangzhou, China
Tel 0571-86187810
Fax 0571-86187769
Email wg@robam.com
III. Information Disclosure and Keeping Place
The website(s) of the stock exchange where the Company Securities Times, China Securities Journal, Securities Daily,
discloses the annual report Shanghai Securities News
The name and website of the media where the Company discloses
http://www.cninfo.com.cn
the annual report
Place of preparation of the Company's annual report Board office
IV. Registration Changes
Uniform social credit code 91330000725252053F
Changes in main business since the Company's listing (if any) N/A
Changes of controlling shareholders (if any) N/A
V. Other Relevant Information
Accounting firm engaged by the Company
Shinewing Certified Public Accountants (special general
Name of the accounting firm
partnership)
9/F, Block A, Fuhua Mansion, No.8 Chaoyangmen North Street,
Office address of the accounting firm
Dongcheng District, Beijing
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Name of signatory accountant Lei Yongxin, Wang Qing
The sponsor institution engaged by the Company to perform the continuous supervision responsibility during the reporting period
□ Applicable Not applicable
The financial advisor engaged by the Company to perform the continuous supervision responsibility during the reporting period
□ Applicable Not applicable
VI. Major Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of the previous years
□ Yes No
Increase/decrease in this
2023 2022 year as compared to the 2021
previous year
Operating income (yuan) 11,201,895,774.27 10,271,500,571.04 9.06% 10,147,706,035.35
Net profits attributable to
shareholders of listed 1,732,789,332.13 1,572,404,918.21 10.20% 1,331,712,059.03
companies (yuan)
Net profits attributable to
shareholders of the listed
company after deduction 1,583,568,042.64 1,479,102,088.00 7.06% 1,276,853,316.64
of non-recurring profits
and losses (yuan)
Net cash flow from
operating activities 2,391,921,812.71 1,944,786,304.02 22.99% 1,365,377,219.33
(yuan)
Basic EPS (yuan/share) 1.83 1.67 9.58% 1.41
Diluted EPS
1.83 1.67 9.58% 1.41
(yuan/share)
Weighted average return
16.78% 17.21% Decreased by 0.43% 15.78%
on net assets
Increase/decrease at the
end of this year as
End of 2023 End of 2022 End of 2021
compared to the end of
the previous year
Total assets (yuan) 16,779,531,315.72 15,039,825,287.53 11.57% 13,906,035,181.12
Net assets attributable to
shareholders of listed 10,522,938,731.68 9,732,463,766.91 8.12% 8,627,026,739.27
companies (yuan)
The lower net profit of the Company before and after deducting non-recurring profit and loss in the last three fiscal years is
negative, and the audit report of the latest year shows that the Company's ability to continue as a going concern is uncertain
□ Yes No
The lower net profit before and after deducting non-recurring profit and loss is negative
□ Yes No
VII. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences between net profits and net assets in financial statements disclosed according to the
International Accounting Standards (IAS) and Chinese Accounting Standards simultaneously
□ Applicable Not applicable
No difference between net profits and net assets in financial statements disclosed according to the International Accounting
Standards (IAS) and Chinese Accounting Standards during the reporting period.
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
2. Differences between net profits and net assets in financial statements disclosed according to the
Overseas Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable Not applicable
No difference between net profits and net assets in financial statements disclosed according to the Overseas Accounting Standards
and Chinese Accounting Standards during the reporting period.
VIII. Key Quarterly Financial Indicators
Unit: yuan
Q1 Q2 Q3 Q4
Operating income 2,177,271,694.59 2,757,598,105.56 2,998,449,763.72 3,268,576,210.40
Net profits attributable to
shareholders of listed 388,734,141.35 440,984,209.34 543,262,685.56 359,808,295.88
companies
Net profits attributable to
shareholders of the listed
company after deduction 341,448,848.17 405,243,129.21 536,650,325.69 300,225,739.57
of non-recurring profits
and losses
Net cash flow from
181,762,454.94 777,970,398.29 434,844,723.63 997,344,235.85
operating activities
Whether there is significant difference between the above financial indicators or the total sum of them and the financial indicators
related to the quarterly report and semiannual report disclosed by the Company
□ Yes No
IX. Non-recurring Profit and Loss Items and Amount
Applicable □ Not applicable
Unit: yuan
Item Amount in 2023 Amount in 2022 Amount in 2021 Description
Profits and losses on the disposal of non-current
assets (including the write-off of the provision -1,212,528.65 113,456.26 -2,290,187.24
for asset impairment)
Government subsidies included into current
profits and losses (except those government
subsidies that are closely related to normal
business of the Company, comply with national 82,547,062.16 101,963,275.49 65,893,969.94
policies and regulations, enjoyed according to
defined criteria, and have an ongoing impact on
the Company's profit or loss)
Reversal of impairment provision for receivables
98,986,397.46 24,667,546.54 1,034,992.00
subject to separate impairment test
Income and expenditure other than those
-1,838,686.70 -2,044,818.28 -2,306,626.52
mentioned above
Minus: Amount affected by income tax 27,437,027.69 26,789,339.27 6,738,387.65
Amount of minority shareholders' equity
1,823,927.09 4,607,290.53 735,018.14
affected (after tax)
Total 149,221,289.49 93,302,830.21 54,858,742.39 --
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□ Applicable Not applicable
The Company does not have any other profit and loss items that meet the definition of non-recurring profit and loss.
Description of recurring profit and loss items
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Applicable □ Not applicable
Item Amount involved (yuan) Cause
VAT exemption or reduction or refund 90,681,056.87 National tax policies, recurring business
Individual income tax service charge
684,354.91 National tax policies, recurring business
refund
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Section 3 Management Discussion and Analysis
I. Industry Situation of the Company During the Reporting Period
In 2023, the kitchen appliance industry experienced a recovery after five years of consecutive decline. The demand for updating
kitchen appliances began to be gradually released, and the overall sales of the industry improved, but we could see that he strong
will be strong forever. According to the retail data released by All View Cloud (AVC), the retail sales of kitchen and bathroom
appliances (such as range hoods, gas hobs, electric water heaters, gas water heaters, sterilizer cabinets, dishwashers, built-in
appliances, water purifiers, and integrated stoves) in 2023 amounted to RMB 166.9 billion, representing a year-on-year increase of
5.3%. Among them, the total sales of rigid demand categories (range hoods, gas hobs, electric water heaters, gas water heaters)
was RMB 99.8 billion, representing a year-on-year increase of 6.5%; the total sales of the categories with a demand for quality
(sterilizer cabinets, dishwashers, built-in appliances, water purifiers) was RMB 42.3 billion, representing a year-on-year increase
of 8.6%; the total sales of integrated stoves was RMB 24.9 billion, representing a year-on-year decrease of 4.0%.
Accompanied by consumer grading, the kitchen appliance industry in China is experiencing a new stage of development, and the
transformation of kitchen life centered on health, wholeness and intelligence is constantly speeding up. Consumers pursue
products with powerful functions and comfortable experience, and their demand for health and aesthetics acts as a product
innovation driving factor. The kitchen appliance industry will develop in an intelligent and integrated way. With the continuous
development of Internet of Things, artificial intelligence and other technologies, kitchen appliance products will become more
intellect, and integrated design will also improve kitchen space utilization and product aesthetics. In addition, environmental
protection and energy saving are also the future development priorities of the kitchen appliance product industry. With the
increasing global environmental awareness, more attention to sustainable development will be paid in the design of kitchen
appliance products. As the concentration of brands in the industry continues to improve, consumers are increasingly trusting in
well-known brands. At the same time, with the expansion of market scale and the intensification of competition, there will be more
opportunities and challenges in the kitchen appliance industry in the future.
According to the National Economic and Social Development Statistics Bulletin 2023 issued by the National Bureau of Statistics,
at the end of 2023, the urbanization rate of the permanent population in China was 66.2%, representing an increase of 0.98% over
the end of the previous year. Compared to the urbanization rate of over 80% in developed countries, there is a broad development
prospect for the kitchen appliance industry. The urbanization in China is developing in the middle stage, and is developing towards
the goal of high-quality. In 2023, the demand for upgrading was increasing, and the trend of upgrading kitchen appliance
categories in China will continue.
II. Main Business of the Company during Reporting Period
Dedicated to creating a new quality kitchen for millions of families, the Company takes foot in the kitchen field and focuses on the
development, production, sales and comprehensive services of kitchen appliances, including range hoods, gas hobs, dishwashers,
steam oven-oven and integrated stoves, etc., and it is committed to creating a more "convenient, healthy and interesting" kitchen
life for millions of families. After 45 years of development and growth, the Company has become the manufacturer with the
longest history, the highest market share and the largest production capacity in the Chinese kitchen appliance industry.
According to product attributes and cooking methods, the Company's products are mainly divided into three categories. The first
category refers to the product group represented by range hoods. The second category refers to the electrified cooking product
group represented by steam oven-oven, steamer and oven. The third category refers to the water kitchen appliance product group
represented by dishwashers, gas water heater and water purifier. In addition, it also includes integrated product groups represented
by integrated stoves and integrated range hoods, etc., as well as refrigerators and other categories, providing consumers with a full
set of kitchen appliance solutions.
The channel layout of the Company is complete, forming three major channels focusing on offline retail, online e-commerce and
refined decoration engineering, as well as overseas channels.
1) Offline retail channels: mainly based on the national agent model of ROBAM, with the main channels divided into specialty
stores (agent specialty stores, Red Star Macalline, Easyhome, etc.), KA (Suning, Five Star and local chain channels), home
decoration channels (home decoration companies and gas companies), customization channel (whole house customization
companies) and sinking channels (JD specialty stores, Tmall Youpin, Suning Retail Cloud etc.).
2) Online e-commerce channels: mainly directly operated by the Company's e-commerce department. The main channels
include online platforms such as JD, Tmall and Douyin, as well as other media platforms (new media social networking,
official website, private domain, TV shopping, etc.).
3) Refined decoration engineering channels: central enterprises and state-owned enterprises (national real estate enterprises
with state-owned assets background), strategic consumers (well-managed national private real estate enterprises) and
regional engineering customers (mainly local urban investment and urban construction units at present).
4) Overseas channels: North America, Oceania, Malaysia, Thailand and ASEAN region.
III. Analysis of Core Competitiveness
No significant change in the Company's core competitiveness during the reporting period: The Company's core competitiveness is
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
mainly reflected in the high-end positioned the brand capacity, continuous innovative research and development capacity,
comprehensive and efficient operation capacity.
1. Brand capability of high-end positioning
Founded in 1988, the ROBAM continues to deepen the positioning of "big suction" and create high-end brand experience. "Big
suction" has become the synonym of "high-end range hood", and the ROBAM has become one of the most famous and favorite
professional high-end kitchen appliance brands in China. Since 1991, ROBAM range hood has won the only "Quality Silver
Award of the People's Republic of China", "China Famous-brand Product", "National Inspection-free Product" in the kitchen
appliance industry; ROBAM has been recognized as "China Famous Brand"; ROBAM has won "Most Influential Brand in China's
Kitchen Appliance Industry" and "China's 500 Most Valuable Brands". In addition, ROBAM Appliances has been rated as one of
the "BrandZ Top 100 Most Valuable Chinese Brands" for 7 consecutive years, and awarded the "Top 500 Asian Brands" for 15
consecutive years. In 2018, ROBAM Appliances put forward a new brand concept, that is, to "Creating China's new kitchen."
ROBAM Appliances became the CCTV's leading national brand in the world and won the 2019-2020 High-end Brand Award
from China National Household Electric Appliances Commercial Association. ROBAM range hoods and built-in gas hobs have
led the global sales for 9 consecutive years, and large kitchen appliances for cooking have led the global sales for 3 consecutive
years.
2. R&D capability of continuous innovation
The Company adheres to the principle of "product leading" and constantly pursues "technology leading". The Company now has a
national enterprise technology center, a national industrial design center, acting as a national intellectual property advantage
enterprise and a model enterprise, and has set up California Innovation Research Institute, Shenzhen Innovation Research Institute
and workstation for academicians from Tsinghua University. With industry-leading national industry designs, intelligent
manufacturing technology and superior product quality, ROBAM Appliances has already evolved into a market leader, an industry
standard advocate, and a CSR forerunner. In 2023, the Company won the first, second and third prizes of Science and Technology
Progress Award by China National Light Industry Council, the honor of advanced collective in standardization work in 2021-2022,
the China Patent Award for Excellent Appearance awarded by China National Intellectual Property Administration, the Award for
Innovation Achievement of Household Appliances by China Household Electrical Appliances Association, and the second prize of
Quality Project Award by China Association for Quality. At the same time, it has been standing at the industry leading level in
R&D team, R&D patents, standard formulation and other aspects. Since 2008, ROBAM Appliances has won more than 80 product
design awards, including authoritative awards at home and abroad, such as Germany IF, Germany Red Dot, and China Red Star,
leading the trend of kitchen appliance product design. The Company has authorized a total of 4,484 patents, covering all major
categories of kitchen ecology supporting easy cooking with superb technologies.
3. Comprehensive and efficient operation capability
The Company has the leading marketing capability in the industry: by adopting the only agency marketing mode in the industry,
the Company has created the most comprehensive, efficient and responsive marketing system in the industry through strong
management and control, equity incentive and the de facto business partner system. The Company deepens intelligent
manufacturing and refined operation. It was awarded the "National Top 100 Quality Inspection Integrity Benchmark" and
"National Excellent Quality and Excellent Credit Enterprise" in 2020. The Company focuses on global manufacturing and strives
to become a first-class manufacturing benchmark in China. In 2021, it listed in the first batch of enterprises that were awarded the
"Future Factory" medals by the Economy and Information Technology Department of Zhejiang. In addition, the Company
accelerates the integration of digitization and informatization, focuses on the interactive innovation and continuous optimization of
data, technology, business process and organizational structure, constantly improves new capabilities in the informatization
environment, and improves the sustainable competitiveness in domestic and foreign markets. At the same time, the Company is
also a provincial industrial Internet platform and has become one of the first batch of "Kunpeng" enterprises in Hangzhou.
IV. Main Business Analysis
1. Overview
In 2023, with the market environment gradually getting back on track, household consumption gradually recovered, but the
recovery speed of home appliance market lagged behind the overall consumption. Due to the fact that the real estate market is still
in the process of clearing, and that the kitchen appliance products market in China has not fully entered the stock market, the
kitchen appliance products market has achieved a slight growth. In terms of retail channel, according to the monthly report on
offline retail market monitoring of All View (hereinafter referred to as "All View Offline Report"), the retail sales of main
categories of kitchen appliances, such as range hoods and gas hobs, decreased by 6.1% and 4.5% respectively as compared to the
same period of last year. In terms of e-commerce channel, according to the monthly report on online retail market monitoring of
All View (hereinafter referred to as "All View Online Report"), the online retail sales of kitchen appliance products increased by
5.9 % as compared to the same period of last year. In terms of engineering channel, according to the monitoring data of All View
Cloud (AVC), there were 1,524 projects of kitchen appliances in the fine decoration market as a whole (range hoods, gas hobs,
sterilizers, dishwashers, single-function machines and all-in-one machines), representing a year-on-year decrease of 21.2%, and
the market scale was 2,531,500 sets, representing a year-on-year decrease of 32.9%.
As the industry leader, the Company closely focused on the annual business philosophy of "building dreams and traveling far,
innovating and reforming for success", to make the market share of various categories stay ahead in the industry, and the market
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
concentration increasing. According to All View Online Report, the retail sales market share of the ROBAM kitchen appliance
package was 31.5%, increasing by 1.00% as compared to the same period of last year. According to All View Offline Report, the
retail sales market share of ROBAM's range hoods, gas hobs and built-in dishwasher were 31.0%, 30.0% and 19.6% respectively,
staying ahead in the industry. In the face of severe external environment, the Company achieved an annual operating income of
RMB 11.202 billion, representing a year-on-year increase of 9.06%. The net profit attributable to shareholders of listed companies
was RMB 1.733 billion, representing a year-on-year increase of 10.20%, which were significantly superior to the average level of
the industry.
As of December 31, 2023, according to the All View offline report, the market share and market position of the offline retail sales
of Company's major product categories are shown in the following table:
Range hood Gas hobs Built-in steam Built-in Built-in electric Built-in electrical Sterilizer cabinet
oven-oven dishwasher oven steam oven
30.97% 30.02% 31.45% 19.59% 27.52% 26.81% 19.99%
1 1 1 2 2 2 2
As of December 31, 2023, according to the All View online report, the market share and market position of the online retail sales
of Company's major product categories are shown in the following table:
Range hood and Kitchen Range hood Gas hobs Built-in steam Built-in electrical Built-in
gas hob packages appliance oven-oven steam oven dishwasher
packages
32.86% 31.47% 17.95% 12.44% 15.06% 17.58% 8.66%
1 1 1 3 3 3 5
As of December 31, 2023, according to the All View Cloud (AVC) Real Estate Report, the market share of ROBAM in refined
decoration channel was 31.9%, ranking first in the industry.
In 2023, the technology sector continued to focus on product innovation, technology innovation and management innovation. In
terms of product innovation, the Company developed 263 new products and completed the development of 163 projects. At the
end of the reporting period, the Company had 4,484 valid patents, including 161 invention patents; In 2023, it applied for 1,530
patents, including 617 invention patents. In terms of technology innovation, the Company realized voice control, voiceprint
recognition and multi dialect recognition in all product categories, and realized an increase of the satisfaction of user commands by
8%. The Company completed IoT platform construction, supporting the long connection of hundreds of millions of devices, and
the fastest App communication speed increased by 300%, meeting users' requirements for daily online needs and the
responsiveness during peak hours. It upgraded image and AI algorithms and applied them to the recognition of ingredients and
cooking maturity, achieving a breakthrough application in all-in-one machine products. In terms of management innovation, the
Company set up the Digital Kitchen Appliance Research Institute to rapidly iterate the organizational structure and realize the
dual-wheel drive of traditional kitchen appliances and digital kitchen appliances. During the reporting period, the Company led the
formulation of 12 industry standards, including 1 international proposal, 1 national standard, 1 industry standard and 9 group
standards. It also participated in the formulation of 18 standards, including 7 national standards, 2 industrial standards and 9 group
standards.
In 2023, the marketing sector focused on "cooking, reconstructing the future of the enterprise", becoming a provider of overall
solutions for the entire cooking link, comprehensively promoting the great transformation from the view point of users and
reformation from the view point of sales on the basis of meeting user demands and growth requirements. In terms of retail
channels, the Company adhered to the high-end positioning of the brand, continuously optimized the layout of stores, increased the
proportion of larger stores, and achieved remarkable results in the construction of high-end brands; expanded penetration into the
low-end market and completed the sampling of thousands of booths and thousands of stores; made its effort from the view point of
users to consistently improve performance of the specialty stores. In terms of e-commerce channels, the Company strengthened
brand positioning, made new and old media work together, efficiently tapped traffic value and revitalized the potential of stock
market. In terms of engineering channels, the Company optimized customer structure and strengthened risk management
awareness, kept the market advantage of old categories, and stimulated the improvement of permeability of new categories. In
terms of overseas channels, the Company accelerated the market layout in North America, Australia and Southeast Asia, and the
opening of the largest overseas flagship exhibition hall, i.e., the flagship exhibition hall in Gold Coast, Australia, and the first
flagship store in Southeast Asia; accelerated the mode transformation, established the Hong Kong subsidiary, and actively
promoted the transformation of overseas markets to "localized" operations; upgraded the Australian brand strategy, and established
the agency engineering company to enter the local engineering market.
In 2023, under the guidance of the Company's three-year strategy, the production sector took "making all efforts, and focusing on
innovation and change" as the core, focused on users and resources, constantly evolving and innovating, and realizing business
fission and upgrading. The Company made every effort to meet marketing and market demand, and strove to become one of the
manufacturing benchmarks with the strongest comprehensive competitiveness in China manufacturing industry. It deepened the
comprehensive cost management system, built refined cost management ability, realized the evolution of whole-link organization
management thinking, and established a reasonable analysis model of all elements such as procurement, manufacturing, logistics
and quality to provide a basis for scientific cost decision-making; Identified the core factors affecting cost to realize a scientific
cost control.
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
In 2023, the brand sector adhered to the high-end positioning and showed the new charm of technological kitchens. It built the
world's first global culinary arts center with a scale of more than 8,000 square meters, which is based on an international
perspective, links the past and the future, and spread China's culinary culture to the world through four dimensions of physical
sensation and emotion, inheritance and innovation, science and humanity, China and the world; held the first China Kitchen
Ecology Summit, put forward the new idea of "reconstructing the whole cooking link" ushering in the new positioning of the
corporate brand as "a solution provider of the whole cooking chain"; With the help of popular spokesperson Wang YiBo, the brand
became more rejuvenated and was known outside of fixed circle, and the brand awareness was effectively improved; made a
contribution to the Green Asian Games with science and technology, and combined international sports events with high-end
brand of kitchen appliances, to comprehensively help the brand to be a high-end and international brand. In addition, the Company
took "new pragmatism" as the new positioning of famous brands, made a significant impact and debuted in the industry through
the ecological conference. After years of brand operation, it has formed a diversified brand matrix with ultra-high-end Dize, high-
end ROBAM, practical Mingqi, young DACHOO and dedicated Kinde.
In 2023, the Company strengthened the brand positioning of new pragmatism kitchen appliances of Mingqi, realizing the
complementary positioning with the brand of ROBAM, and meeting the needs of consumers at more levels. In 2023, the Company
focused on e-commerce and fully integrate sinking channels; Reconstruct the existing channels of Mingqi, and vigorously layout
specialty stores through channel efficiency reform to achieve high-quality and rapid development.
In 2023, the Company continued to be recognized by the capital market in terms of corporate governance, information disclosure
and shareholder return. It was awarded level A (Excellent) in the 2022 Annual Information Disclosure Assessment of listed
companies in Shenzhen Stock Exchange, and has won this award for ten consecutive years. Its MSCI ESG rating was grade BBB,
ranking high among global peer (household durable goods) companies. In 2023, the Company adopted an annual special dividend
plan to realize a high-frequency dividend plan of two dividends each year.
The company has gradually built a normalized long-term incentive mechanism for employees, and launched the 2023 Stock Option
Incentive Plan in 2023, with the intention of providing stock option incentives for the Company's middle-level core business and
technical backbones, so as to stabilize the constitution of cadres and consolidate the Company's long-term development foundation.
At the same time, the Company has been adhering to standard operation, focusing on the culinary field, adhering to the value
investment concept, so as to promote continuous high-quality development of the Company.
2. Revenue and Costs
(1) Operating income composition
Unit: yuan
2023 2022
Year-on-year
Proportion in Proportion in increase / decrease
Amount Amount
operating income operating income
Total operating
11,201,895,774.27 100% 10,271,500,571.04 100% 9.06%
income
By industry
Home and kitchen &
10,897,226,245.68 97.28% 9,981,652,062.48 97.18% 9.17%
bath appliances
Other business
304,669,528.59 2.72% 289,848,508.56 2.82% 5.11%
income
By product
First category group
Including: Range
5,321,818,112.20 47.51% 4,832,350,321.78 47.05% 10.13%
hood
Gas hobs 2,671,006,229.35 23.84% 2,456,953,764.20 23.92% 8.71%
Sterilizer cabinet 469,017,537.92 4.19% 477,168,426.61 4.65% -1.71%
Second category
group:
Including: Steam
687,442,329.04 6.14% 739,678,668.33 7.20% -7.06%
oven-oven
Steamer 67,504,610.84 0.60% 99,986,752.60 0.97% -32.49%
Oven 72,428,048.34 0.65% 82,492,751.09 0.80% -12.20%
Third category
group
Including:
759,704,720.62 6.78% 593,794,747.49 5.78% 27.94%
Dishwasher
Water purifier 40,342,365.31 0.36% 54,081,866.41 0.53% -25.41%
Water heaters 233,127,380.39 2.08% 192,404,223.01 1.87% 21.17%
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Integrated stove 464,053,178.10 4.14% 384,843,160.10 3.75% 20.58%
Other small home
110,781,733.57 0.99% 67,897,380.86 0.66% 63.16%
appliances
Other business
304,669,528.59 2.72% 289,848,508.56 2.82% 5.11%
income
By region
East China 5,710,688,604.56 50.98% 5,264,129,155.10 51.25% 8.48%
South China 1,374,869,975.07 12.27% 1,269,202,599.03 12.36% 8.33%
Central China 928,415,707.26 8.29% 859,455,161.51 8.37% 8.02%
North China 1,122,210,085.76 10.02% 1,250,622,282.44 12.18% -10.27%
Northeast China 508,004,826.92 4.53% 484,194,864.36 4.71% 4.92%
Northwest China 571,241,367.26 5.10% 444,338,961.01 4.33% 28.56%
Southeast China 918,587,632.28 8.20% 637,508,722.80 6.21% 44.09%
Overseas regions 67,877,575.16 0.61% 62,048,824.79 0.60% 9.39%
Distribution model
Sales by proxy 2,922,898,630.55 26.09% 2,446,494,399.39 23.82% 19.47%
Sales by dealers 238,597,540.87 2.13% 301,984,213.55 2.94% -20.99%
Direct sales 5,862,114,658.80 52.33% 5,402,928,683.48 52.60% 8.50%
Engineering 2,075,246,482.42 18.53% 2,058,478,176.62 20.04% 0.81%
Other 103,038,461.63 0.92% 61,615,098.00 0.60% 67.23%
(2) Industries, products, regions and sales models that account for more than 10% of the Company's
operating income or profit
Applicable □ Not applicable
Unit: yuan
Year-on-year Year-on-year Year-on-year
Gross increase / increase / increase /
Operating income Operating cost
margin ratio decrease of decrease of decrease of gross
operating income operating cost margin ratio
By industry
Home and
kitchen &
10,897,226,245.68 5,369,816,850.21 50.72% 9.17% 6.95% 1.02%
bath
appliances
By product
Range hood 5,321,818,112.20 2,448,401,656.97 53.99% 10.13% 4.97% 2.26%
Gas hobs 2,671,006,229.35 1,181,321,519.98 55.77% 8.71% 5.94% 1.16%
By region
East China 5,710,688,604.56 2,628,225,105.38 53.98% 8.48% 6.06% 1.05%
South
1,374,869,975.07 744,925,498.58 45.82% 8.33% 8.20% 0.07%
China
North
1,122,210,085.76 522,974,774.14 53.40% -10.27% -15.74% 3.03%
China
Distribution model
Sales by
2,922,898,630.55 1,628,494,098.25 44.28% 19.47% 13.30% 3.03%
proxy
Direct sales 5,862,114,658.80 2,461,006,814.46 58.02% 8.50% 2.21% 2.58%
Engineering 2,075,246,482.42 1,204,600,439.46 41.95% 0.81% 12.47% -6.02%
In the case that the statistical standards for main business data of the Company are adjusted during the reporting period, the main
business data of the Company in recent 1 year are subject to those after the adjustment of the statistical standards at the end of the
reporting period
□ Applicable Not applicable
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
(3) Whether the Company's physical sales revenue is greater than the service revenue
Yes □ No
Year-on-year
Industry category Item Unit 2023 2022
increase / decrease
Sales quantity Unit 8,443,155 7,757,460 8.84%
Home and kitchen & Production output Unit 8,183,261 7,557,374 8.28%
bath appliances Inventory Unit 1,815,258 2,075,152 -12.52%
Reasons for more than 30% year-on-year changes in the relevant data
□ Applicable Not applicable
(4) Performance of major sales contracts and major purchase contracts signed by the Company up to the reporting
period
□ Applicable Not applicable
(5) Composition of operating cost
Industry and product categories
Unit: yuan
2023 2022
Year-on-year
Industry category Item Proportion in increase /
Proportion in
Amount Amount operating decrease
operating cost
cost
Manufacturi
539,639,570.43 9.76% 517,639,044.69 10.07% -0.31%
Home and ng costs
kitchen & bath Raw
4,817,498,668.82 87.15% 4,425,668,122.58 86.15% 1.00%
appliances materials
Labor 170,510,467.04 3.08% 194,061,590.88 3.78% -0.70%
Unit: yuan
2023 2022
Year-on-year
Product Proportion Proportion in
Item increase /
Classification Amount in operating Amount operating decrease
cost cost
Manufactur
295,799,517.99 5.36% 282,015,436.10 5.49% -0.13%
ing costs
Range hood Raw
2,060,227,230.75 37.27% 1,946,232,805.60 37.88% -0.61%
materials
Labor 92,374,908.23 1.67% 104,134,091.03 2.03% -0.36%
Manufactur
55,020,078.83 1.00% 58,395,892.78 1.14% -0.14%
ing costs
Gas hobs Raw
1,107,454,139.18 20.03% 1,031,439,648.62 20.08% -0.05%
materials
Labor 18,847,301.97 0.34% 25,298,764.37 0.49% -0.15%
Manufactur
40,428,624.44 0.73% 39,309,333.79 0.77% -0.04%
ing costs
Dish-washing
Raw
machine 356,401,487.47 6.45% 275,583,128.32 5.36% 1.09%
materials
Labor 11,707,351.31 0.21% 12,107,381.36 0.24% -0.03%
Manufactur
35,045,428.88 0.63% 37,886,184.41 0.74% -0.11%
ing costs
Steam oven-oven Raw
288,290,318.22 5.22% 317,516,080.41 6.18% -0.96%
materials
Labor 13,706,404.30 0.25% 16,540,158.74 0.32% -0.07%
Other Manufactur 113,345,920.29 2.05% 100,032,197.61 1.95% 0.10%
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
ing costs
Raw
1,005,125,493.20 18.18% 854,896,459.63 16.64% 1.54%
materials
Labor 33,874,501.23 0.61% 35,981,195.38 0.70% -0.09%
(6) Whether the consolidation scope changes in the reporting period
Yes □ No
This year, the consolidation scope of the Company was expanded due to the establishment of ROBAM
Appliances (Hong Kong) Holdings Limited and ROBAM International (Hong Kong) Trading Co., Ltd.
(7) Major changes or adjustments of business, products or services of the Company during the reporting period
□ Applicable Not applicable
(8) Major sales customers and major suppliers
Major sales customers of the Company
Total sales amount of top five customers (yuan) 3,257,684,970.96
Proportion of total sales amount of top five customers in total
29.08%
annual sales
Among the sales amount of top five customers, proportion of
0.00%
sales amount of related parties in total annual sales
Top 5 customers of the Company
No. Customer name Sales Amount (yuan) Proportion in total annual sales
1 Unit 1 2,059,743,978.25 18.39%
2 Unit 2 425,775,717.09 3.80%
3 Unit 3 310,634,662.78 2.77%
4 Unit 4 301,210,212.83 2.69%
5 Unit 5 160,320,400.01 1.43%
Total -- 3,257,684,970.96 29.08%
Other information of major customers
□ Applicable Not applicable
Major suppliers of the Company
Total purchase amount of top five suppliers (yuan) 748,045,432.37
Proportion of total purchase amount of top five suppliers in total
16.79%
annual purchase amount
Among the purchase amount of top five suppliers, proportion of
purchase amount of related parties in total annual purchase 0.00%
amount
Top 5 suppliers of the Company
Proportion in total annual
No. Supplier name Purchase amount (yuan)
purchase amount
1 Unit 1 209,031,127.99 4.69%
2 Unit 2 182,048,964.93 4.09%
3 Unit 3 130,788,476.89 2.94%
4 Unit 4 116,363,171.88 2.61%
5 Unit 5 109,813,690.68 2.47%
Total -- 748,045,432.37 16.79%
Other information of major suppliers
□ Applicable Not applicable
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
3. Expenses
Unit: yuan
Year-on-year increase / Description of major
2023 2022
decrease changes
Selling expenses 3,002,418,651.54 2,613,626,073.89 14.88% /
Management costs 469,622,072.60 430,968,403.74 8.97% /
Financial expenses -188,927,736.59 -157,222,288.61 20.17% /
Research and
387,368,591.97 391,614,805.38 -1.08% /
development expenses
4. R&D investment
Applicable □ Not applicable
R&D personnel of the Company
2023 2022 Proportion of change
Number of R&D personnel
919 929 -1.08%
(person)
Proportion of R&D personnel 16.76% 18.23% -1.47%
Educational structure of R&D personnel
Bachelor 677 683 -0.88%
Master 152 146 4.11%
Age composition of R&D personnel
Under 30 years old 285 297 -4.04%
30~40 years old 492 476 3.36%
R&D investment of the Company
2023 2022 Proportion of change
R&D investment amount
387,368,591.97 391,614,805.38 -1.08%
(yuan)
Proportion of R&D investment
3.46% 3.81% -0.35%
in operating revenue
Capitalized amount of R&D
0.00 0.00 0.00%
investment (yuan)
Proportion of capitalized R&D
0.00% 0.00% 0.00%
investment in R&D investment
Reasons and effects of major changes in the composition of R&D personnel of the Company
□ Applicable Not applicable
Reasons for significant changes in the proportion of total R&D investment amount in operating revenue as compared to the
previous year
□ Applicable Not applicable
Reasons for the great changes of R&D investment capitalization rate and description of its rationality
□ Applicable Not applicable
5. Cash flow
Unit: yuan
Year-on-year increase /
Item 2023 2022
decrease
Subtotal cash inflows from
12,586,117,255.55 11,572,752,136.63 8.76%
operating activities
Subtotal cash outflows from 10,194,195,442.84 9,627,965,832.61 5.88%
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
operating activities
Net cash flow from operating
2,391,921,812.71 1,944,786,304.02 22.99%
activities
Subtotal cash inflows from
2,398,275,667.27 3,038,030,947.22 -21.06%
investment activities
Subtotal cash outflows from
7,673,482,106.87 3,082,085,886.40 148.97%
investment activities
Net cash flow from investment
-5,275,206,439.60 -44,054,939.18 Not applicable
activities
Subtotal cash inflows from
92,260,296.65 66,662,732.06 38.40%
financing activities
Subtotal cash outflows from
528,201,490.92 496,668,186.35 6.35%
financing activities
Net cash flow from financing
-435,941,194.27 -430,005,454.29 Not applicable
activities
Net increase of cash and cash
-3,318,247,983.65 1,476,425,521.39 -324.75%
equivalents
Description of main influencing factors of significant changes in relevant data on a year-on-year basis
Applicable □ Not applicable
During the reporting period, the cash outflows from investment activities increased by 148.97% year on year, which was mainly
due to the holding to maturity of the bank time deposit plan, which was classified as an impact on investment activities according
to accounting standards.
During the reporting period, the cash inflows from financing activities increased by 38.40% year on year, which was mainly due to
the increase in bank loan and factoring amount received with recourse.
Reasons for significant difference between the net cash flow from operating activities of the Company and the net profit of the
current year in the reporting period
□ Applicable Not applicable
V. Non-main Business Analysis
□ Applicable Not applicable
VI. Analysis of Assets and Liabilities
1. Major changes in asset composition
Unit: yuan
End of 2023 Beginning of 2023
Proportion Proportion Description of
Proportion in change major changes
Amount in total Amount
total assets
assets
The increase in
unmatured
large-amount
certificates of
deposit this year
Monetary
1,985,050,745.11 11.83% 5,292,762,670.94 35.19% -23.36% are presented
capital
separately in
other current
assets and other
non-current
assets
Accounts
1,810,015,596.33 10.79% 1,689,606,828.94 11.23% -0.44% /
receivable
Inventory 1,524,274,720.24 9.08% 1,610,110,798.10 10.71% -1.63% /
Investment
91,136,832.31 0.54% 55,887,198.54 0.37% 0.17% /
properties
Long-term 8,427,450.24 0.05% 8,718,505.62 0.06% -0.01% /
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
equity
investment
Fixed assets 1,720,724,257.46 10.25% 1,622,235,227.74 10.79% -0.54% /
Construction in
359,768,699.68 2.14% 406,258,146.69 2.70% -0.56% /
progress
Right-of-use
13,802,458.98 0.08% 22,220,144.13 0.15% -0.07% /
assets
Short-term
95,003,320.70 0.57% 51,723,429.99 0.34% 0.23% /
borrowing
Contract
1,019,942,923.58 6.08% 959,915,567.03 6.38% -0.30% /
liabilities
Lease liabilities 10,750,792.90 0.06% 18,588,966.67 0.12% -0.06% /
The proportion of overseas assets is relatively high
□ Applicable Not applicable
2. Assets and liabilities measured with fair value
Applicable □ Not applicable
Unit: yuan
Item Opening balance Closing balance
1. Trading financial assets (excluding derivative financial assets) 2,511,844,508.00 2,730,000,000.00
4. Other equity instrument investments 2,116,023.22 2,116,023.22
5. Other non-current financial assets 480,000,000.00
Total 2,513,960,531.22 3,212,116,023.22
Financial liabilities 0.00 0.00
Other changes
During the reporting period, there was no significant change in the measurement attributes of the Company's mainly assets.
□ Yes No
3. Limitation on the assets and rights as of the end of the reporting period
Item Year-end balance Year-beginning balance
Guarantee deposit 83,153,343.90 76,092,305.89
Bill deposit 23,717,043.12 20,243,023.31
ETC deposit 14,000.00 13,000.00
Fixed assets 99,401,869.39
Intangible assets 25,884,399.80
Total 232,170,656.21 96,348,329.20
VII. Analysis of Investment
1. Overall situation
□ Applicable Not applicable
2. Significant equity investments acquired during the reporting period
□ Applicable Not applicable
3. Significant ongoing non-equity investments during the reporting period
□ Applicable Not applicable
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
4. Financial asset investment
(1) Securities investments
□ Applicable Not applicable
The Company had no securities investments in the reporting period.
(2) Derivatives investment
□ Applicable Not applicable
The Company had no derivatives investments in the reporting period.
5. Use of funds raised
□ Applicable Not applicable
No funds raised are used in the reporting period.
VIII. Sales of Major Assets and Equities
1. Sales of major assets
□ Applicable Not applicable
The Company did not sell major assets in the reporting period.
2. Sales of major equities
□ Applicable Not applicable
IX. Analysis of Main Holding and Joint-stock Companies
Applicable □ Not applicable
Joint-stock companies that affect the net profits of the Company by more than 10% and main subsidiaries
Unit: yuan
Compan Registered
Company name Main business Total assets Net assets Operating income Operating profit Net profit
y type capital
Sales of
Shanghai ROBAM
Subsidia kitchen
Electric Appliance Sales 5000000 67,134,261.10 -29,054,984.52 436,895,754.03 -31,355,406.40 -31,567,117.47
ry appliance
Co., Ltd.
products
Sales of
Beijing ROBAM Electric Subsidia kitchen
5000000 78,993,404.66 38,269,878.69 272,095,407.85 -2,973,382.84 -2,841,643.89
Appliance Sales Co., Ltd. ry appliance
products
Sales of
Hangzhou Mingqi Subsidia kitchen
50000000 180,177,694.43 36,036,569.13 453,350,093.28 -14,191,217.68 -14,134,887.70
Electric Co., Ltd. ry appliance
products
Production and
Shengzhou Kinde
Subsidia sales of kitchen
Intelligent Kitchen 32653061 450,515,484.94 213,943,713.65 148,506,855.32 -34,323,268.83 -32,142,248.55
ry appliance
Electric Co., Ltd.
products
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable Not applicable
Description of main holding and joint-stock companies
X. Structured Entities Controlled by the Company
□ Applicable Not applicable
XI. Prospect of the Company's Future Development
Mission: To render happiness of kitchen life for more families
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Vision: To be a world-class century-old leader of cooking innovation
Strategic direction: Focus, innovation, transformation
Strategy description: Company development strategy (2023--2025)
Focus on the cooking track, on the basis of "upgrading value, focusing on users, promoting synergy and
creating growth", and drive "product innovation, model innovation and system innovation" through digital
kitchen appliances, continuously expand the core business advantages, quickly break through the strategic
business bottleneck, build the core competitiveness based on "science + humanity" and create a new ROBAM!
Strategic objective:
Create a new Robam by 2025.
XII. Reception, Research, Communication, Interview and Other Activities During the
Reporting Period
Applicable □ Not applicable
Main points of
Type of received Basic information
Reception time Reception place Reception way Received object discussion and
object index of the survey
information provided
Record Chart of Record Chart of
Investor Relation Investor Relation
January 10, 2023 Company Field survey Organization Organization
Activities on January Activities on January
10-11, 2023 10-11, 2023
Record Chart of Record Chart of
Investor Relation Investor Relation
September 12,
Company Field survey Organization Organization Activities on Activities on
2023
September 12-14, September 12-14,
2023 2023
Record Chart of Record Chart of
December 05, Investor Relation Investor Relation
Company Field survey Organization Organization
2023 Activities on Activities on
December 5, 2023 December 5, 2023
XIII. Implementation of the Action Plan of "Double Improvement of Quality and Return"
Whether the Company has disclosed the Action Plan for "Double Improvement of Quality and Return".
□ Yes No
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Section 4 Corporate Governance
I. Basic State of Corporate Governance
In the reporting period, the Company constantly improved the corporate governance structure, established and improved internal
management and control systems, and continued to carry out in-depth corporate governance activities in strict accordance with the
Company law, the Securities Law, the Governance Guidelines for Listed Companies, the Rules for Stock Listing of Shenzhen Stock
Exchange and relevant laws and regulations of China Securities Regulatory Commission to further regulate the Company
operation and improve the corporate government level. By the end of the reporting period, the actual situation of corporate
governance conformed to the normative documents on listed corporate governance issued by China Securities Regulatory
Commission.
During the reporting period, the Company operated in strict accordance with national laws and regulations, Rules for Stock Listing
of Shenzhen Stock Exchange and the Guidelines on the Standardized Operation of Listed Companies on the Main Board, and
performed its obligations of information disclosure in a timely, complete, true, accurate and fair manner. The Company has not
received the relevant documents of administrative supervision measures taken by the regulatory authorities.
(1) Shareholders and shareholders' meeting
In strict accordance with the Rules of the Shareholders' Meeting of Listed Companies and the Rules of Procedure of the
Shareholders' Meeting, the Company shall convene the shareholders' meeting to ensure that all shareholders, especially minority
shareholders, enjoy equal status and fully exercise their rights.
(2) Company and controlling shareholders
The Company has independent business and operational independence and is independent from the controlling shareholders in
business, personnel, assets, institutions and finance. The Company's board of directors, the board of supervisors and internal
organize operate independently. The controlling shareholders of the Company can strictly regulate their own behaviors, without
directly or indirectly intervening in the Company's decision-making and business activities beyond the shareholders' meeting.
(3) Directors and board of directors
The Company elects its directors in strict accordance with the recruiting procedures stipulated in the Articles of Association; all the
directors of the Company can carry out their work in accordance with the Rules of Procedure of the Board of Directors and
Guidelines on the Behaviors of Directors of Listed Companies, attend the board of directors and shareholders' meetings earnestly,
actively participate in the training of relevant knowledge, and be familiar with relevant laws and regulations.
(4) Supervisors and Board of Supervisors
The Company shall elect supervisors in strict accordance with the relevant provisions of the Company Law and the Articles of
Association, and the number and composition of the board of supervisors shall meet the requirements of laws and regulations. In
accordance with the requirements of the Rules of Procedure of the Board of Supervisors, the Company's supervisors can earnestly
perform their duties, effectively supervise the Company's major issues, related transactions, financial condition, and the
performance of directors and managers, and express independent opinions.
(5) Performance Evaluation and Incentive and Restraint Mechanisms
The Company is gradually establishing a fair and transparent performance evaluation standard and incentive and restraint
mechanism for directors, supervisors and managers. The appointment of the Company's managers is open and transparent and
conforms to the provisions of laws and regulations.
(6) Information Disclosure and Transparency
The Company carries out information disclosure and investor relations management under the board secretary responsibility
system; the Company performs the information disclosure procedure in strict accordance with the Measures for the Administration
of Information Disclosure and discloses the information on the designated information disclosure media such as Securities Times,
China Securities Journal, Securities Daily, Shanghai Securities News and cninfo in a true, accurate, complete and timely manner
according to law; meanwhile, according to the requirements of the Measures for the Investor Relations Management, the Company
standardizes investor reception procedures, receives visits and inquiries from shareholders, and ensures that all shareholders have
equal access to the Company information.
(7) Stakeholder
The Company fully respects and safeguards the legitimate rights and interests of relevant stakeholders, realizes the coordination
and balance of interests of the society, shareholders, the Company and employees, and jointly promotes the sustainable and steady
development of the Company.
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
(8) Internal Audit System
The Company has established an internal audit system and set up an internal audit department. The board of directors has
appointed the person in charge of internal audit to effectively control the Company's daily operation and management, internal
control system and major issues of the Company. There is no significant difference between the actual situation of corporate
governance and the normative documents on listed corporate governance issued by China Securities Regulatory Commission.
Whether there is significant difference between the actual situation of corporate governance and the laws, administrative
regulations and the provisions on the listed corporate governance issued by China Securities Regulatory Commission.
□ Yes No
There is no significant difference between the actual situation of corporate governance and the laws, administrative regulations and
the provisions on the listed corporate governance issued by China Securities Regulatory Commission.
II. Independence of the Company Relative to the Controlling Shareholders and Actual
Controllers in Ensuring the Company's Assets, Personnel, Finance, Organization, Business,
etc.
The Company operates in strict accordance with the Company Law and the Articles of Association, establishes and improves the
corporate governance structure, is completely separated from the controlling shareholders in terms of business, personnel, assets,
institutions and finance, and has independent and complete business and independent operation capability.
III. Horizontal Competition
□ Applicable Not applicable
IV. Information About the Annual General Meeting of Shareholders and Extraordinary
General Meeting of Shareholders Held During the Reporting Period
1. General meeting of shareholders during the reporting period
Investor
Meeting session Meeting type participation Convening date Date of disclosure Meeting resolution
proportion
Announcement of Resolutions
Annual general of 2022 Annual General
Annual general meeting
meeting of 61.55% May 18, 2023 May 19, 2023 Meeting of Shareholders
of shareholders in 2022
shareholders (Announcement No.: 2023-
025)
Announcement of Resolutions
First extraordinary Extraordinary
of 2023 First Extraordinary
general meeting of general meeting 61.11% August 18, 2023 August 19, 2023
General Meeting of
shareholders in 2023 of shareholders
Shareholders (2023-039)
Announcement of Resolutions
Second extraordinary Extraordinary of 2023 Second Extraordinary
general meeting of general meeting 62.68% December 29, 2023 December 30, 2023 General Meeting of
shareholders in 2023 of shareholders Shareholders (Announcement
No.: 2023-057)
2. The preferred shareholders with voting rights restored request an extraordinary general meeting of
shareholders
□ Applicable Not applicable
V. Directors, Supervisors and Senior Management
1. Basic information
Number of shares
Number of shares held at
Gen Status of held at the
Name Age Position Start date of tenure End date of tenure the end of the period
der service beginning of the
(shares)
period (shares)
Ren Mal Incumbe
67 Chairman August 18, 2023 August 17, 2026 5,923,150 5,923,150
Jianhua e nt
Ren Fujia Mal 40 Deputy Incumbe August 18, 2023 August 17, 2026 2,100,075 2,100,075
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Number of shares
Number of shares held at
Gen Status of held at the
Name Age Position Start date of tenure End date of tenure the end of the period
der service beginning of the
(shares)
period (shares)
e chairman, nt
general
manager
Director and
Xia Mal deputy Incumbe
48 August 18, 2023 August 17, 2026 411,950 411,950
Zhiming e general nt
manager
Director and
He Mal deputy Incumbe
49 August 18, 2023 August 17, 2026 411,950 411,950
Yadong e general nt
manager
Zhao Mal Incumbe
61 Director August 18, 2023 August 17, 2026 1,267,565 1,267,565
Jihong e nt
Director,
Wang Mal secretary to Incumbe
48 August 18, 2023 August 17, 2026 576,750 576,750
Gang e the board of nt
directors
Ren
Mal Leaving
Luozhon 61 Director August 18, 2020 August 17, 2023 1,267,562 1,267,562
e office
g
Shen Mal Leaving
58 Director August 18, 2020 August 17, 2023 1,143,264 1,143,264
Guoliang e office
Chen Mal Independent Incumbe
46 August 18, 2023 August 17, 2026 0 0
Yuanzhi e director nt
Yu Mal Independent Incumbe
46 August 18, 2023 August 17, 2026 0 0
Lieming e director nt
Cheng Mal Independent Incumbe
44 August 18, 2023 August 17, 2026 0 0
Zhiyong e director nt
He Mal Independent Leaving
68 August 18, 2020 August 17, 2023 0 0
Yuanfu e director office
Ren Chairman of
Mal Incumbe
Luozhon 61 the board of August 18, 2023 August 17, 2026 1,267,562 1,267,562
e nt
g supervisors
Zhang Mal Incumbe
58 Supervisor August 18, 2023 August 17, 2026 834,315 834,315
Linyong e nt
Shen Mal Incumbe
58 Supervisor August 18, 2023 August 17, 2026 1,143,264 1,143,264
Guoliang e nt
Tang Mal Employee Incumbe
63 August 18, 2023 August 17, 2026 834,312 834,312
Genquan e supervisor nt
Fe
Wang Employee Incumbe
mal 34 August 18, 2023 August 17, 2026 0 0
Fang supervisor nt
e
Zhang Mal Leaving
57 Supervisor August 18, 2020 August 17, 2023 834,312 834,312
Songnian e office
Shen Mal Leaving
64 Supervisor August 18, 2020 August 17, 2023 53,875 53,875
Yueming e office
Fe
Zhang Employee Leaving
mal 45 August 18, 2020 August 17, 2023 0 0
Huifen supervisor office
e
Deputy
Zhou Mal Incumbe
48 general August 18, 2023 August 17, 2026 0 0
Haixin e nt
manager
Chief
Zhang Mal Incumbe
54 financial August 18, 2023 August 17, 2026 411,950 411,950
Guofu e nt
officer
Total -- -- -- -- -- -- 18,481,856 18,481,856
24
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
During the reporting period, whether there was any resignation of directors and supervisors and dismissal of senior management
during their term of office
□ Yes No
Change of directors, supervisors and senior management
Applicable □ Not applicable
Name Position held Type Date Cause
Elected in re-election of
Xia Zhiming Director Elected August 18, 2023
the board of directors
Elected in re-election of
He Yadong Director Elected August 18, 2023
the board of directors
Elected in re-election of
Cheng Zhiyong Independent director Elected August 18, 2023
the board of directors
Resignation in re-
Leave office upon
Ren Luozhong Director August 18, 2023 election of the board of
expiration of tenure
directors
Resignation in re-
Leave office upon
Shen Guoliang Director August 18, 2023 election of the board of
expiration of tenure
directors
Resignation in re-
Leave office upon
He Yuanfu Independent director August 18, 2023 election of the board of
expiration of tenure
directors
Elected in re-election of
Ren Luozhong Supervisor Elected August 18, 2023
the board of supervisors
Elected in re-election of
Shen Guoliang Supervisor Elected August 18, 2023
the board of supervisors
Elected in re-election of
Wang Fang Employee supervisor Elected August 18, 2023 employee representative
supervisors
Resignation in re-
Leave office upon
Zhang Songnian Supervisor August 18, 2023 election of the board of
expiration of tenure
supervisors
Resignation in re-
Leave office upon
Shen Yueming Supervisor August 18, 2023 election of the board of
expiration of tenure
supervisors
Resignation in re-
Leave office upon election of employee
Zhang Huifen Employee supervisor August 18, 2023
expiration of tenure representative
supervisors
2. Service status
Professional background, main work experience and main responsibilities currently in the Company of current directors,
supervisors and senior management of the Company
1) Resume of current directors
Mr. Ren Jianhua, Han nationality, born in August 1956, Chinese, without permanent residency abroad; junior high school
education, member of Communist Party of China, economist. He began to work in 1978 and successively served as the supply and
marketing section chief and factory director of Yuhang Hongxing Hardware Factory, the chairman, general manager and Secretary
of the Party branch of Hangzhou ROBAM Industrial Group Co., Ltd., and the chairman and general manager of Hangzhou
ROBAM Home Appliances & Kitchen Sanitary Co., Ltd. He has won the titles of national model worker and outstanding member
of Communist Party of Zhejiang Province, and was elected as the deputy to the 8th and 10th National People's Congress of
Zhejiang Province, deputy to the 11th National People's Congress of Hangzhou City, the Party representative, deputy to the 12th
and 13th National People's Congress of Hangzhou City, and the 12th Fengyun Zhejiang Merchants. At present, he is the chairman
of Hangzhou ROBAM Appliances Co., Ltd., Hangzhou Robam Industrial Group Co., Ltd., Hangzhou Nbond Nonwoven Co., Ltd.,
Hangzhou Guoguang Touring Commodity Co., Ltd., Hangzhou Amblem Kitchenware Co., Ltd., the executive director and general
manager of Hangzhou Mingqi Electric Co., Ltd., the executive director and general manager of Hangzhou ROBAM Fuchuang
Investment Management Co., Ltd., the deputy chairman of Garden Hotel Hangzhou, the chairman of Hangzhou ROBAM Gas
Station Co., Ltd., the executive director of Zhejiang Hangzhou Yuhang Rural Commercial Bank Company Limited, Hangzhou
25
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Dongming Forest Park Co., Ltd., Hangzhou Bonyee Daily Necessity Technology Co., Ltd., the executive director and general
manager of Hangzhou Jinchuang Investment Co., Ltd., the executive partner of Hangzhou Jinnuochang Investment Management
Partnership (Limited Partnership).
Mr. Ren Fujia, Han nationality, born in January 1983, Chinese, without permanent residency abroad; bachelor degree. He used to
be the product manager of marketing department and the deputy general manager of R&D center of Hangzhou ROBAM Industrial
Group Co., Ltd., the deputy general manager of Hangzhou ROBAM Home Appliances & Kitchen Sanitary Co., Ltd.; now he is the
director of Hangzhou Nbond Nonwoven Co., Ltd., the deputy chairman and general manager of Hangzhou ROBAM Appliances
Co., Ltd., the director of Hangzhou Amblem Kitchenware Co., Ltd., and the deputy chairman of De Dietrich Trade (Shanghai) Co.,
Ltd.
Mr. Xiazhiming, Han nationality, born in May 1975, Chinese, without permanent residency abroad; college degree. He began to
work in 1996 and successively served as the production section chief of Qiaori Electric Products Factory, the manufacturing
director of Foxconn Technology Co., Ltd. and the production director of the Company's production center. At present, he is
director and deputy general manager of the Company.
Mr. He Yadong, Han nationality, born in August 1974, Chinese, without permanent residency abroad; bachelor degree, senior
economist. He began to work in 2000 and successively served as the marketing section chief, director of marketing department and
deputy general manager of marketing center of ROBAM Group, the assistant to general manager of ROBAM Home Appliances,
and director of the Company. At present, he is director and deputy general manager of the Company.
Mr. Zhaojihong, Han nationality, born in December 1962, Chinese, without permanent residency abroad; master degree, senior
economist. He successively served as the chairman and general manager of Hubei Huangshi Jinye Group Co., Ltd, the deputy
general manager and general manager of the marketing center of ROBAM Group, the deputy general manager and general
manager of the marketing center of ROBAM Home Appliances, and the deputy general manager of the Company. He has
successively won the titles of national outstanding entrepreneur, outstanding Hangzhou merchant in the World, "Top 10 influential
figures in China's kitchen and bathroom industry", "Top 10 personalities in China's home appliance industry", and twice won the
Mondale world economic man achievement award and was selected into the dictionary of Chinese experts and celebrities. At
present, he is the director of the Company, the director of uTransHub Technologies Co., Ltd., the director and general manager of
Hangzhou ROBAM Appliances Co., Ltd., the director of Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd., and the chairman
of Zhejiang Cooking Future Technology Co., Ltd.
Wang Gang, born in October 1975, Chinese, without permanent residency abroad; master degree, a member of the Communist
Party of China, certified public accountant, senior economist. He used to be an inspector of Haining Local Taxation Bureau of
Zhejiang Province, the R&D director of Shanghai Realize Investment Consulting Co., Ltd., the secretary of the board of directors,
director of human resources, general manager assistant of Shanghai Hailong Software Co., Ltd, and the secretary of the board of
directors of Hangzhou ROBAM Home Appliances & Kitchen Sanitary Co., Ltd. At present, he is the director of Hangzhou Nbond
Nonwoven Co., Ltd., the director and secretary of the board of directors of Hangzhou Robam Appliances Co., Ltd., the director of
Dize Home Appliances Trading (Shanghai) Co., Ltd., the director of Hangzhou Fortune Gas Cryogenic Group Co.,Ltd., the
director of De Dietrich Trade (Shanghai) Co., Ltd., the director of Hangzhou Guoguang Touring Commodity Co., Ltd, the
supervisor of Hangzhou Robam Fuchuang Investment Management Co., Ltd., the director of Shengzhou Kinde Intelligent Kitchen
Electric Co., Ltd., the supervisor of Shanghai MXCHIP Information Technology Co., Ltd., the director of Versolsolar Hangzhou
Co., Ltd., the independent director of Hangzhou Great Star Industrial Co., Ltd., the independent director of Hanjia Design Group
Co., Ltd., the independent director of Hangzhou XZB Tech Co., Ltd., and the legal representative and secretary general of
association of listed companies of Linping District, Hangzhou City.
Mr. Chen Yuanzhi, Han nationality, born in November 1977, Chinese, member of Communist Party of China, doctor degree in
management, is now the independent director of the Company, a professor of China Executive Leadership Academy Pudong, an
adjunct professor of East China Normal University, an adjunct researcher in the Research Center of Technological Innovation,
Tsinghua University, the executive director of China Soft Science Research Society, a managing director of the Chinese Institute
of Business Administration, and an expert of Shanghai Science and Technology Expert Database.
Mr. Yu Lieming, born in December 1977, Han nationality, Chinese, without permanent residency abroad; master degree. He began
to work in 1994 and successively served as the deputy director of the Administration Committee of Yuhang Economic and
Technological Development Zone of Hangzhou, the vice president of Chunfeng Holdings Group Co., Ltd., chairman of the board
of supervisors of Zhejiang CFMOTO Power Co., Ltd., and the executive vice president and secretary of the board of directors of
Hamaton Automotive Technology Co., Ltd. At present, he is an independent director of the Company and the executive director of
Hangzhou Xinlan Energy Engineering Co., Ltd.
Mr. Cheng Zhiyong, born in March 1980, Han nationality, a member of the Communist Party of China, Chinese, without
residency abroad; bachelor degree. He served as senior manager of BDO China Shu Lun Pan CPAs from July 2004 to September
2010, and then served as deputy general manager, secretary of the board of directors and chief financial officer of Zhejiang Kaier
New Materials Co., Ltd. from October 2010 to March 2017. At present, he is the independent director of the Company, the general
manager of Zhejiang Tenghua Assets Management Co., Ltd., the executive director and general manager of Hangzhou
Weifengheng Enterprise Management Consulting Co., Ltd., the independent director of Jiangsu Zeyu Intelligent Electric Power
Co., Ltd., the independent director of Zhejiang Debao Communication Technologies Co., Ltd., and the independent director of
Everich and Tomic Housewares Co., Ltd.
26
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
2) Resume of current supervisors
Mr. Ren Luozhong, Han nationality, born in August 1962, Chinese, without permanent residency abroad; EMBA, assistant
economist. He began to work in 1982 and successively served as the operation director of Yuhang Hongxing Hardware Factory,
the deputy general manager, general manager of the marketing center, general manager of the technology center and director of the
first production department of ROBAM Group, the director and deputy general manager of ROBAM Home Appliances, and the
deputy general manager of the Company. At present, he is the chairman of the board of supervisors of the Company, the deputy
chairman of Hangzhou ROBAM Industrial Group Co., Ltd., the director of Hangzhou Amblem Kitchenware Co., Ltd., the
president of Hangzhou Linping District ROBAM Charity Foundation.
Mr. Zhang Linyong, Han nationality, born in August 1965, Chinese, without permanent residency abroad; high school education,
member of Communist Party of China, assistant economist. He began to work in 1984 and successively served as the office
director of Yuhang Hongxing Hardware Factory, the general manager, director of the engineering department of Hangzhou Huafa
Electric Appliance Co., Ltd., and the director of ROBAM Home Appliances. At present, he is the supervisor of the Company, the
director of Hangzhou ROBAM Industrial Group Co., Ltd.
Mr. Shen Guoliang, Han nationality, born in November 1965, Chinese, without permanent residency abroad; high school
education. He began to work in 1982 and successively served as the chief of the transportation section, chief financial officer and
the deputy general manager of the marketing center of Yuhang Hongxing Hardware Factory, the director of ROBAM Home
Appliances, and the chairman of the board of supervisors of the Company. At present, he is the supervisor of the Company, the
director of Hangzhou ROBAM Industrial Group Co., Ltd., the deputy chairman of Shengzhou Kinde Intelligent Kitchen Electric
Co., Ltd., the director of Zhejiang Cooking Future Technology Co., Ltd., the supervisor of Hangzhou Amblem Kitchenware Co.,
Ltd., and the supervisor of Beijing ROBAM Electric Appliance Sales Co., Ltd.
Mr. Tang Genquan, Han nationality, born in October 1960, Chinese, without permanent residency abroad; college degree, engineer.
He began to work in 1979 and successively served as the mould workshop director and technical director of Yuhang Hongxing
Hardware Factory, the deputy general manager of technology, general manager of production quality and director of the third
production department of ROBAM Group, the director of ROBAM Home Appliances. In 1993-1994 and 2005-2006, he was
awarded as the outstanding scientific and technological worker of Hangzhou. In 2004, he was selected into the "new century talent
project 139 youth talent cultivation candidate list", applied for 1 national invention patent, 7 utility model patents and 10 design
patents. He has been employed as a member of China daily hardware industry expert committee since 1996 and the deputy
secretary general of fifth China daily hardware industry expert committee since 2006. At present, he is the employee representative
supervisor of the Company, the director of Hangzhou ROBAM Industrial Group Co., Ltd., the supervisor of Hangzhou ROBAM
Gas Station Co., Ltd., and the secretary general of Hangzhou Linping District ROBAM Charity Foundation.
Ms. Wang Fang, born in July 1989, Han nationality, Chinese, without permanent residency abroad; college degree, junior
accountant. She began to work in 2012 and successively served as cashier and tax manager of Hangzhou ROBAM Appliances Co.,
Ltd. At present, she is the employee representative supervisor of the Company.
3) Resume of current senior management
Mr. Ren Fujia, who is currently the general manager of the Company. Please refer to the resume of the directors of the Company
for the introduction.
Mr. Xia Zhiming, who is currently the deputy general manager of the Company. Please refer to the resume of the directors of the
Company for the introduction.
Mr. He Yadong, who is currently the deputy general manager of the Company. Please refer to the resume of the directors of the
Company for the introduction.
Mr. Zhou Haixin, Han nationality, born in February 1975, Chinese, without permanent residency abroad; doctor degree, senior
engineer. He began to work in 2001 and successively served as the researcher of Agilent Technologies Software Co. Ltd., the
project manger of Sony Ericsson Mobile Communication Products Co., Ltd., the project director of Qingdao Haier Telecom Co.,
Ltd., the R&D director of Guangbao Mobile Electronic and Telecommunication Components Co., Ltd., and the senior R&D
director of the Company. At present, he is the deputy general manager of the Company.
Mr. Wang Gang, who is currently the secretary of the board of directors of the Company. Please refer to the resume of the
directors of the Company for the introduction.
Mr. Zhang Guofu, Han nationality, born in December 1969, Chinese, without permanent residency abroad; bachelor degree. He
began to work in 1990 and successively served as the capital section chief, director of the financial center of Hangzhou ROBAM
Industrial Group Co., Ltd., and financial chief of Hangzhou ROBAM Home Appliances & Kitchen Sanitary Co., Ltd. At present,
he is the chief financial officer of the Company, the supervisor of Hangzhou Mingqi Electric Co., Ltd., the director of Shengzhou
Kinde Intelligent Kitchen Electric Co., Ltd., and the director of De Dietrich Trade (Shanghai) Co., Ltd.
Service status in the shareholder unit
27
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Applicable □ Not applicable
Position held in shareholder Whether to receive remuneration or
Name of staff Shareholder unit name
unit allowance in the shareholder unit
Hangzhou ROBAM Industrial
Ren Jianhua Chairman No
Group Co., Ltd.
Hangzhou Jinchuang Investment
Ren Jianhua Executive director No
Co., Ltd.
Hangzhou ROBAM Industrial
Ren Luozhong Deputy chairman No
Group Co., Ltd.
Hangzhou ROBAM Industrial
Zhao Jihong Director, general manager No
Group Co., Ltd.
Hangzhou ROBAM Industrial
Shen Guoliang Director No
Group Co., Ltd.
Hangzhou ROBAM Industrial
Zhang Linyong Director No
Group Co., Ltd.
Hangzhou ROBAM Industrial
Tang Genquan Director No
Group Co., Ltd.
Service status in other unit
Applicable □ Not applicable
Name of staff Other unit name Position held in other unit
Ren Jianhua Hangzhou Amblem Kitchenware Co., Ltd. Chairman
Ren Jianhua Garden Hotel Hangzhou Deputy chairman
Ren Jianhua Hangzhou Dongming Forest Park Co., Ltd. Director
Ren Jianhua Hangzhou Nbond Nonwoven Co., Ltd. Chairman
Zhejiang Hangzhou Yuhang Rural Commercial
Ren Jianhua Director
Bank Company Limited
Ren Jianhua Hangzhou ROBAM Gas Station Co., Ltd. Chairman
Hangzhou Jinnuochang Investment Management
Ren Jianhua Executive partner
Partnership (Limited Partnership)
Hangzhou Bonyee Daily Necessity Technology Co.,
Ren Jianhua Executive director
Ltd.
Hangzhou ROBAM Fuchuang Investment
Ren Jianhua Executive director and general manager
Management Co., Ltd.
Ren Jianhua Hangzhou Mingqi Electric Co., Ltd. Executive director and general manager
Ren Fujia De Dietrich Trade (Shanghai) Co., Ltd. Deputy chairman
Ren Fujia Hangzhou Amblem Kitchenware Co., Ltd. Director
Ren Fujia Hangzhou Nbond Nonwoven Co., Ltd. Director
Shengzhou Kinde Intelligent Kitchen Electric Co.,
Zhao Jihong Chairman
Ltd.
Zhao Jihong uTransHub Technologies Co., Ltd. Director
Zhao Jihong Zhejiang Cooking Future Technology Co., Ltd. Chairman
Wang Gang Hangzhou Nbond Nonwoven Co., Ltd. Director
Wang Gang Dize Home Appliances Trading (Shanghai) Co., Ltd. Director
Wang Gang Hangzhou Fortune Gas Cryogenic Group Co., Ltd. Director
Wang Gang De Dietrich Trade (Shanghai) Co., Ltd. Director
Wang Gang Hangzhou Guoguang Touring Commodity Co., Ltd. Director
Hangzhou ROBAM Fuchuang Investment
Wang Gang Supervisor
Management Co., Ltd.
Shengzhou Kinde Intelligent Kitchen Electric Co.,
Wang Gang Director
Ltd.
Shanghai MXCHIP Information Technology Co.,
Wang Gang Supervisor
Ltd.
Wang Gang Versolsolar Hangzhou Co., Ltd. Director
Wang Gang Hangzhou Great Star Industrial Co., Ltd. Independent director
28
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Wang Gang Hanjia Design Group Co., Ltd. Independent director
Wang Gang Hangzhou XZB Tech Co., Ltd. Independent director
Chen Yuanzhi China Executive Leadership Academy Pudong Professor
Research Center of Technological Innovation,
Chen Yuanzhi Researcher
Tsinghua University
Yu Lieming Hangzhou Xinlan Energy Engineering Co., Ltd. Executive director
Cheng Zhiyong Zhejiang Tenghua Assets Management Co., Ltd. General Manager
Hangzhou Weifengheng Enterprise Management
Cheng Zhiyong Executive director and general manager
Consulting Co., Ltd.
Cheng Zhiyong Jiangsu Zeyu Intelligent Electric Power Co., Ltd. Independent director
Zhejiang Debao Communication Technologies Co.,
Cheng Zhiyong Independent director
Ltd.
Cheng Zhiyong Everich and Tomic Housewares Co., Ltd. Independent director
Ren Luozhong Hangzhou Amblem Kitchenware Co., Ltd. Director
Shen Guoliang Hangzhou Amblem Kitchenware Co., Ltd. Supervisor
Shengzhou Kinde Intelligent Kitchen Electric Co.,
Shen Guoliang Deputy chairman
Ltd.
Shen Guoliang Beijing ROBAM Electric Appliance Sales Co., Ltd. Supervisor
Shen Guoliang Zhejiang Cooking Future Technology Co., Ltd. Director
Zhang Guofu De Dietrich Trade (Shanghai) Co., Ltd. Director
Zhang Guofu Hangzhou Mingqi Electric Co., Ltd. Supervisor
Shengzhou Kinde Intelligent Kitchen Electric Co.,
Zhang Guofu Director
Ltd.
Tang Genquan Hangzhou ROBAM Gas Station Co., Ltd. Supervisor
Punishment of current directors, supervisors and senior management of the Company and those who left during the reporting
period by securities regulators in recent three years
□ Applicable Not applicable
3. Remuneration of Directors, Supervisors and Senior Management
Decision making procedures, determination basis and actual payment of remuneration of directors, supervisors and senior
management
The Company has established a sound performance appraisal system and salary system for senior management, whose work
performance is directly linked to their income. The remuneration and appraisal committee of the board of directors is responsible
for the year-end assessment of the working ability, performance of duties, completion of responsibility objectives, etc. of the
senior management, and preparing the remuneration plan and submitting it to the board of directors of the Company for approval.
The remuneration of directors, supervisors and senior management shall be paid on time.
Remuneration of directors, supervisors and senior management during the reporting period
Unit: 10,000 yuan
Whether to get
Total pretax
remuneration
remuneration
Name Gender Age Position Status of service from related
received from
parties of the
the Company
Company
Ren Jianhua Male 67 Chairman Incumbent 86.91 No
Deputy chairman,
Ren Fujia Male 40 Incumbent 130.65 No
general manager
Director and deputy
Xia Zhiming Male 48 Incumbent 139.92 No
general manager
Director and deputy
He Yadong Male 49 Incumbent 161.31 No
general manager
Zhao Jihong Male 61 Director Incumbent 84.11 No
Director, secretary to
Wang Gang Male 48 Incumbent 102.97 No
the board of directors
Ren Luozhong Male 61 Chairman of the Incumbent 81.31 No
29
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Whether to get
Total pretax
remuneration
remuneration
Name Gender Age Position Status of service from related
received from
parties of the
the Company
Company
board of supervisors
Zhang Linyong Male 58 Supervisor Incumbent 65.61 No
Shen Guoliang Male 58 Supervisor Incumbent 72.14 No
Employee
Tang Genquan Male 63 representative Incumbent 82.99 No
supervisor
Employee
Wang Fang Female 34 representative Incumbent 12.38 No
supervisor
Zhang Songnian Male 57 Supervisor Leaving office 54.06 No
Shen Yueming Male 64 Supervisor Leaving office 20.81 No
Employee
Zhang Huifen Female 45 representative Leaving office 9.75 No
supervisor
Chen Yuanzhi Male 46 Independent director Incumbent 9.52 No
Yu Lieming Male 46 Independent director Incumbent 9.52 No
Cheng Zhiyong Male 44 Independent director Incumbent 3.97 No
He Yuanfu Male 68 Independent director Leaving office 5.56 No
Deputy general
Zhou Haixin Male 48 Incumbent 328.73 No
manager
Zhang Guofu Male 54 Chief financial officer Incumbent 118.61 No
Total -- -- -- -- 1,580.83 --
Other information
□ Applicable Not applicable
VI. Performance of Duties by Directors During the Reporting Period
1. Board of Directors during this reporting period
Meeting session Convening date Date of disclosure Meeting resolution
Announcement of the
The 14th Meeting of the Fifth Resolution of ROBAM's 14th
April 05, 2023 April 26, 2024
Board of Directors Meeting of the Fifth Board of
Directors
Announcement of the
The 15th Meeting of the Fifth Resolution of ROBAM's 15th
June 20, 2023 June 21, 2023
Board of Directors Meeting of the Fifth Board of
Directors
Announcement of the
The 16th Meeting of the Fifth Resolution of ROBAM's 16th
August 01, 2023 August 02, 2023
Board of Directors Meeting of the Fifth Board of
Directors
Announcement of the
The 1st Meeting of the Sixth Resolution of ROBAM's 1st
August 18, 2023 August 19, 2023
Board of Directors Meeting of the Sixth Board of
Directors
Announcement of the
The 2nd Meeting of the Sixth Resolution of ROBAM's 2nd
August 23, 2023 August 24, 2023
Board of Directors Meeting of the Sixth Board of
Directors
Announcement of the
The 3rd Meeting of the Sixth Resolution of ROBAM's 3rd
October 25, 2023 October 26, 2023
Board of Directors Meeting of the Sixth Board of
Directors
30
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Announcement of the
The 4th Meeting of the Sixth Resolution of ROBAM's 4th
December 13, 2023 December 14, 2023
Board of Directors Meeting of the Sixth Board of
Directors
2. Attendance of directors at the board meetings and the general meeting of shareholders
Attendance of directors at the board meetings and the general meeting of shareholders
Number of Whether not to
Number of
board Number of Number of personally
board Number of Number of
meetings to be board board attend the
Name of meetings board shareholders'
attended meetings meetings board meeting
director attended by meetings meetings
during this attended on delegated to for two
correspondenc absent attended
reporting site attend consecutive
e
period times
Ren Jianhua 7 6 1 0 0 No 3
Ren Fujia 7 6 1 0 0 No 3
Xia Zhiming 4 4 0 0 0 No 2
He Yadong 4 4 0 0 0 No 2
Zhao Jihong 7 6 1 0 0 No 3
Wang Gang 7 6 1 0 0 No 3
Ren Luozhong 3 2 1 0 0 No 1
Shen Guoliang 3 2 1 0 0 No 1
Chen Yuanzhi 7 5 2 0 0 No 3
Yu Lieming 7 6 1 0 0 No 3
Cheng
4 3 1 0 0 No 2
Zhiyong
He Yuanfu 3 2 1 0 0 No 1
Description on failure to personally attend the board meeting for two consecutive times
3. Objections made by directors on relevant matters
Whether the director raises any objection to the relevant matters of the Company
□ Yes No
During the reporting period, the directors did not raise any objection to the relevant matters of the Company.
4. Other description on the performance of duties by the directors
Whether the relevant suggestions of the director to the Company have been adopted
□ Yes No
Explanation of the relevant suggestions of the director to the Company have or have not been adopted
N/A
VII. Special Committees Under the Board of Directors During the Reporting Period
Num
ber
of
Name of committee Member Convening date Meeting content
meet
ings
held
He Yuanfu, Chen Yuanzhi, Ren 1. Review the 2022 Audit Work Plan of the
Audit committee 1 January 16, 2023
Luozhong Company
1. Review the 2022 Audit Report of the Company;
2. Review the 2022 Internal Control Evaluation
He Yuanfu, Chen Yuanzhi, Ren
Audit committee 1 April 24, 2023 Report;
Luozhong
3. Review the Proposal on Renewing the
Appointment of the Company's Audit Institution
31
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
for 2023;
4. Review the Full Text of First Quarter Report of
the Company in 2023.
Cheng Zhiyong, Chen Yuanzhi, 1. Review the Semiannual Report of the Company
Audit committee 1 August 23, 2023
Wang Gang in 2023
Cheng Zhiyong, Chen Yuanzhi, 1. Review the Third Quarter Report of the
Audit committee 1 October 25, 2023
Wang Gang Company in 2023
1. Review the Proposal on Nominating the
Nomination Chen Yuanzhi, He Yuanfu, Ren
1 August 01, 2023 Members of Sixth Board of Directors of the
committee Jianhua
Company
1. Review The 2023 Stock Option Incentive Plan
(draft) of Hangzhou ROBAM Appliances Co.,
Ltd. and its Abstract;
Remuneration and Yu Lieming, Chen Yuanzhi, Ren
1 April 25, 2023 2. Review the Implementation, Assessment and
assessment committee Fujia
Management Measures for the 2023 Stock
Option Incentive Plan of Hangzhou ROBAM
Appliances Co., Ltd.;
Ren Jianhua, Ren Fujia, Yu 1. Review the Proposal on the Company's New
Strategic committee 1 August 21, 2023
Lieming Three-Year Strategic Plan
VIII. Work of Board of Supervisors
Whether the board of supervisors finds any risk of the Company in the supervision activities during the reporting period
□ Yes No
The board of supervisors has no objection to the supervisory matters during the reporting period.
IX. Company Employees
1. Number of employees, professional composition and education background
Number of employees in the parent company at the end of the 3,913
reporting period (person)
Number of employees in major subsidiaries at the end of the
1,569
reporting period (person)
Total number of employees at the end of the reporting period
5,482
(person)
Total number of employees receiving salary in the current period
5,466
(person)
Number of retired employees whose expenses need to be borne
98
by the parent company and major subsidiaries (person)
Professional composition
Professional composition categories Number of professionals (person)
Production personnel 1,850
Sales personnel 1,758
Technical personnel 881
Financial personnel 178
Administrative personnel 815
Total 5,482
Education background
Education background categories Number (person)
Doctor 8
Master 244
Bachelor 1,618
College 1,040
Other 2,572
Total 5,482
32
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
2. Pay policy
The Company has formulated Salary Management Standards and the Performance Management Standards, and established a
salary management system based on the post value and centered on the competency and performance evaluation of employees,
according to the salary status of the regional market and industry.
3. Training plan
In 2023, the Company carried out various trainings, including Lemon, Blue Whale, Sunflower, Ivy League and other projects as
well as the Elite Plan; As the Company's own mobile learning online platform, Chestnut School played an important role in the
achievement transformation of the development course of internal trainer, and the Company's employees' participation in learning
has been greatly improved.
4. Labor outsourcing
Applicable □ Not applicable
Total hours of labor outsourcing (hours) 3,527,583.64
Total remuneration paid for labor outsourcing (yuan) 141,340,202.94
X. Profit Distribution and Share Capital Increase from Capital Surplus
Profit distribution policy during the reporting period, especially the formulation, implementation or adjustment of cash dividend
policy
Applicable □ Not applicable
After deliberation and approval at the 5th meeting of the sixth Board of Directors, by taking 944,094,916 shares as the radix (the
existing total share capital of 949,024,050 shares, excluding 4,929,134 shares repurchased), the Company proposed to distribute
cash dividends of RMB 5 (tax inclusive) for every 10 shares to all shareholders, amounting up to a total of RMB 472,047,458.00.
Description for cash dividend policy
Whether it meet the requirements of the Company's articles of
Yes
association and of the resolutions of shareholders' meeting:
Whether the dividend distribution standard and proportion are
Yes
specific and clear:
Whether relevant decision-making procedures and mechanisms
Yes
are complete:
Whether the independent directors have performed their duties
Yes
and fulfilled their due roles:
If the Company has not distributed cash dividends, the specific
reasons should be disclosed, and as well as the measures to be Not applicable
taken next to enhance investor returns:
Whether the minor shareholders have the chance to fully express
their opinions and demands, and whether their legal rights and Yes
interests have been fully protected:
Whether the conditions and procedures are normative and
transparent in case of adjustments or changes of the cash dividend Yes
policy:
The Company made profits during the reporting period and the profits available for distribution to shareholders of the parent
company were positive, but no proposal for the distribution of cash dividend was put forward
□ Applicable Not applicable
Profit distribution and share capital increase from capital surplus during the reporting period
Applicable □ Not applicable
Bonus shares per 10 shares (shares) 0
Dividend per 10 shares (yuan) (tax inclusive) 5
Equity base of distribution plan (shares) 944,094,916
Amount of cash dividend (yuan) (tax inclusive) 472,047,458.00
Amount of cash dividend in other forms (e.g. share repurchase)
0.00
(yuan)
33
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Amount of cash dividend (including other forms) (yuan) 472,047,458.00
Distributable profit (yuan) 9,038,684,224.97
Ratio of total amount of cash dividend (including other forms) to
100%
total amount of distributable profit
Cash dividend distribution in this period
Should the Company be in a growing stage and have major capital expenditure arrangements, the cash dividend should account for a
minimum of 20% of the profit distribution when the profit is distributed.
Description for details of profit distribution or share capital increase from capital surplus plan
According to the standard unqualified audit report issued by ShineWing Certified Public Accountants, the Company's net profit
attributable to the parent company owner in 2023 was RMB 1,826,289,990.48 (number of parent company), plus the undistributed
profit (parent company) of RMB 8,156,489,150.49 at the beginning of the year, minus the cash dividend of profit distribution of
2022, i.e., RMB 472,047,458.00, minus the cash dividend of special dividend distribution of 2023, i.e., RMB 472,047,458.00, the
Company's profit available to shareholders at the end of 2023 was RMB 9,038,684,224.97.
Taking 944,094,916 shares as the radix (the existing total share capital of 949,024,050 shares, excluding 4,929,134 shares
repurchased), the Company distributed cash dividends of RMB 5 (tax inclusive) for every 10 shares to all shareholders, amounting up
to a total of RMB 472,047,458.00.
In case of any change due to the listing of new shares, the exercising of equity incentive, the conversion of convertible bonds into
shares, share repurchase, etc. during the period from the disclosure of the distribution plan to the equity registration date when the
profit distribution is implemented, the distribution proportion will be adjusted accordingly according to the principle that the total
amount of cash dividends will remain unchanged.
XI. Implementation of the Company's Equity Incentive Plan, Employee Stock Ownership
Plan or Other Employee Incentive Measures
Applicable □ Not applicable
1. Equity incentive
2021 stock option plan:
1. On April 14, 2021, the Company held the 4th meeting of the fifth board of directors, deliberated and adopted the Proposal
on 2021 Stock Option Incentive Plan (Draft) of the Company and its Abstract and other relevant proposals, and the
independent directors expressed their agreed independent opinions on the matters related to the Company's stock option
incentive plan. The 4th meeting of the fifth Board of Supervisors of the Company deliberated and adopted the above-
mentioned relevant proposals and expressed their consent. The Company disclosed the above matters on April 15, 2021.
2. From April 15, 2021 to April 24, 2021, the Company publicized the names and positions of the incentive objects of the stock
option incentive plan through internal posting. On April 27, 2021, the board of supervisors of the Company issued the
Review Opinions and Announcement of the Board of Supervisors on the List of Incentive Objects of the 2021 Stock Option
Incentive Plan. On the same day, the Company disclosed the Self-inspection Report on Insiders' and Incentive Objects'
Trading of Company Stock with Inside Information of 2021 Restricted Stock Incentive Plan.
3. On April 30, 2021, the Company held the first extraordinary general meeting of shareholders in 2021, deliberated and
adopted the Proposal on 2021 Stock Option Incentive Plan (draft) of the Company and its Abstract and other relevant
proposals. The plan was approved by the first extraordinary general meeting of shareholders in 2021, and the board of
directors was authorized to determine the grant date of stock option, grant stock option to incentive objects when they meet
the conditions and handle all matters necessary for granting equity.
4. On May 10, 2021, the Company's 6th meeting of the fifth Board of Directors and the 6th meeting of the fifth Board of
Supervisors reviewed and adopted the Proposal on Granting Stock Options to Incentive Objects. The board of supervisors
once again verified the list of incentive objects granted and expressed their consent. The independent directors of the
Company expressed their independent opinions on this.
5. On April 19, 2022, the Company held the 10th meeting of the fifth Board of Directors and the 10th meeting of the fifth
Board of Supervisors, deliberated and adopted the Proposal on the Cancellation of Partial Stock Options in the 2021 Stock
Option Incentive Plan and the Proposal on Cancellation of the 2021 Stock Option Incentive Plan for Failure to Meet the
Exercise Conditions during the First Exercise Period. The board of supervisors verified and expressed their consent. The
independent directors of the Company expressed their independent opinions thereon.
6. On April 25, 2023, the Company held the 14th meeting of the fifth Board of Directors and the 14th meeting of the fifth
Board of Supervisors, deliberated and adopted the Proposal on the Cancellation of Partial Stock Options in the 2021 Stock
Option Incentive Plan and the Proposal on Cancellation of the 2021 Stock Option Incentive Plan for Failure to Meet the
Exercise Conditions during the Second Exercise Period. The board of supervisors verified and expressed their consent. The
independent directors of the Company expressed their independent opinions thereon.
2022 stock option plan:
34
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
1. On March 31, 2022, the Company held the 9th meeting of the fifth Board of Directors, deliberated and adopted the Proposal
on 2022 Stock Option Incentive Plan (draft) of the Company and its Abstract and other relevant proposals, and the
independent directors expressed their independent consent on the matters related to the Company's stock option incentive
plan. The 9th meeting of the fifth Board of Supervisors of the Company deliberated and adopted the above-mentioned
relevant proposals and issued the consent. The Company disclosed the above matters on April 01, 2022.
2. From April 1, 2022 to April 10, 2022, the Company publicized the names and positions of the incentive objects of the stock
option incentive plan through internal posting. On April 13, 2022, the board of supervisors of the Company issued the
Review Opinions and Announcement of the Board of Supervisors on the List of Incentive Objects of the 2022 Stock Option
Incentive Plan. On the same day, the Company disclosed the Self-inspection Report on Insiders' and Incentive Objects'
Trading of Company Stock with Inside Information of 2022 Restricted Stock Incentive Plan.
3. On April 21, 2022, the Company held the first extraordinary general meeting of shareholders in 2022, deliberated and
adopted the Proposal on 2022 Stock Option Incentive Plan (draft) of the Company and its Abstract and other relevant
proposals. The plan was approved by the first extraordinary general meeting of shareholders in 2022, and the board of
directors was authorized to determine the grant date of stock option, grant stock option to incentive objects when they meet
the conditions and handle all matters necessary for granting equity.
4. On May 10, 2022, the Company's 11th meeting of the fifth Board of Directors and the 11th meeting of the fifth Board of
Supervisors deliberated and adopted the Proposal on Granting Stock Options to Incentive Objects. The board of supervisors
once again verified the list of incentive objects granted and expressed their consent. The independent directors of the
Company expressed their independent opinions on this.
5. On April 25, 2023, the Company held the 14th meeting of the fifth Board of Directors and the 14th meeting of the fifth
Board of Supervisors, deliberated and adopted the Proposal on the Cancellation of Partial Stock Options in the 2022 Stock
Option Incentive Plan and the Proposal on Cancellation of the 2022 Stock Option Incentive Plan for Failure to Meet the
Exercise Conditions during the Second Exercise Period. The board of supervisors verified and expressed their consent. The
independent directors of the Company expressed their independent opinions thereon.
2023 stock option plan:
1. On April 25, 2023, the Company held the 14th meeting of the fifth board of directors, deliberated and adopted the Proposal
on 2023 Stock Option Incentive Plan (draft) of the Company and its Abstract and other relevant proposals, and the
independent directors expressed their independent consent on the matters related to the Company's stock option incentive
plan. The 14th meeting of the fifth Board of Supervisors of the Company deliberated and adopted the above-mentioned
relevant proposals and expressed their consent. The Company disclosed the above matters on April 26, 2023.
2. From April 26, 2023 to May 08, 2023, the Company publicized the names and positions of the incentive objects of the stock
option incentive plan through internal posting. On May 09, 2023, the board of supervisors of the Company issued the Review
Opinions and Announcement of the Board of Supervisors on the List of Incentive Objects of the 2023 Stock Option Incentive
Plan. On the same day, the Company disclosed the Self-inspection Report on Insiders' and Incentive Objects' Trading of
Company Stock with Inside Information of 2023 Restricted Stock Incentive Plan.
3. On May 18, 2023, the Company held the first extraordinary general meeting of shareholders in 2022, deliberated and
adopted the Proposal on 2023 Stock Option Incentive Plan (draft) of the Company and its Abstract and other relevant
proposals. The plan was approved by the first extraordinary general meeting of shareholders in 2022, and the board of
directors was authorized to determine the grant date of stock option, grant stock option to incentive objects when they meet
the conditions and handle all matters necessary for granting equity.
4. On June 20, 2023, the Company's 15th meeting of the fifth Board of Directors and the 15th meeting of the fifth Board of
Supervisors deliberated and adopted the Proposal on Granting Stock Options to Incentive Objects. The board of supervisors
once again verified the list of incentive objects granted and expressed their consent. The independent directors of the
Company expressed their independent opinions on this.
Equity incentive obtained by directors and senior management of the Company
□ Applicable Not applicable
Evaluation mechanism and incentive of senior managers
1. On April 14, 2021, the Company held the 4th meeting of the fifth board of directors, deliberated and adopted the Proposal
on Business Partner Shareholding Plan (draft) of the Company and its Abstract and other relevant proposals, and the
independent directors expressed their independent consent on the matters related to the Company's business partner
shareholding plan. The 4th meeting of the fifth Board of Supervisors of the Company deliberated and adopted the above-
mentioned relevant proposals and expressed their consent. The Company disclosed the above matters on April 15, 2021.
2. On April 30, 2021, the Company held the 1t extraordinary general meeting of shareholders in 2021, deliberated and adopted
the Proposal on Business Partner Shareholding Plan (Draft) of the Company and its Abstract and other relevant proposals.
The plan was approved by the first extraordinary general meeting of shareholders in 2021, and the board of directors was
authorized to determine and handle all matters related to the plan.
35
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
3. On April 20, 2022, the Company disclosed the Announcement on the Failure to Meet the 2021 Assessment Conditions for the
Business Partner Shareholding Plan. According to relevant provisions of the shareholding plan, in case of a failure of
meeting the 2021 assessment conditions for the business partner shareholding plan, the Company will not withdraw the
special funds for the shareholding plan this year.
4. On April 25, 2023, the Company disclosed the Announcement on the Failure to Meet the 2022 Assessment Conditions for the
Business Partner Shareholding Plan. According to relevant provisions of the shareholding plan, in case of a failure of
meeting the 2022 assessment conditions for the business partner shareholding plan, the Company will not withdraw the
special funds for the shareholding plan this year.
2. Implementation of the employee stock ownership plan
□ Applicable Not applicable
3. Other employee incentives
□ Applicable Not applicable
XII. Construction and Implementation of Internal Control System During the Reporting
Period
1. Construction and implementation of internal control
See the 2023 Internal Control Self-evaluation Report disclosed by the Company on the designated information disclosure website
http://www.cninfo.com.cn for details.
2. Details of significant internal control defects discovered during the reporting period
□ Yes No
XIII. Management and Control of Subsidiaries during the Reporting Period
Problems Measures taken
Integration Resolution Follow-up
Company name Integration plan encountered in to resolve the
progress progress resolution plan
integration problem
N/A N/A N/A N/A N/A N/A N/A
XIV. Internal Control Evaluation Report or Internal Control Audit Report
1. Internal control evaluation report
Full disclosure date of internal control self-
April 25, 2024
evaluation report
Index of full disclosure of internal control
Cninfo: Full text of 2023 internal control self-evaluation report of ROBAM
evaluation report
Proportion of the total assets of the unit
included in the evaluation scope to the total
100.00%
assets of the consolidated financial
statement of the Company
Proportion of operating income of the unit
included in the evaluation scope to the
100.00%
operating income of the consolidated
financial statement of the Company
Defect identification standard
Category Financial report Non-financial report
Signs of major defects in the financial Signs of major defects in the non-financial
report include: report include:
1) Corrupt practice of directors, 1) The defects in non-financial reports
supervisors and senior management; are mainly determined according to
2) Misstatement correction of material the influence of the defects on the
Qualitative standard errors in financial reports that have business process effectiveness and
been announced by the Company; the possibility of occurrence;
3) Material misstatement in the current 2) The defects with high possibility that
financial report, which is not found will seriously reduce the work
by the internal control in the process efficiency or effect, or seriously
of operation; increase the uncertainty of the effect,
36
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
4) Ineffective control and supervision of or make it seriously deviate from the
the Company's external and internal expected goal are major defects.
financial reports by the audit Signs of important defects in the non-
committee and audit department. financial report include:
Signs of important defects in the financial 1) The defects in non-financial reports
report include: are mainly determined according to
1) Failure to select and apply the influence of the defects on the
accounting policies in accordance business process effectiveness and
with generally accepted accounting the possibility of occurrence;
principles; 2) The defects with high possibility that
2) No anti-fraud procedures and control will significantly reduce the work
measures have been established; efficiency or effect, or significantly
3) There is no corresponding control increase the uncertainty of the effect,
mechanism established or no or make it significantly deviate from
implementation of and no the expected goal are important
corresponding compensatory control defects.
for the accounting treatment of non- Signs of common defects in the non-
routine or special transactions; financial report include:
4) One or more defects in the control of 1) The defects in non-financial reports
the final financial reporting process are mainly determined according to
and no reasonable assurance that the the influence of the defects on the
financial statements will achieve the business process effectiveness and
objective of authenticity and the possibility of occurrence;
completeness. 2) The defects with low possibility that
Common defects in financial reports refer will reduce the work efficiency or
to control defects other than the major effect, or increase the uncertainty of
defects and important defects mentioned the effect, or make it deviate from
above. the expected goal are common
defects.
The quantitative standard takes the
operating income and the total assets as the
measurement index.
1) The internal control defects that may
cause losses or whose losses are
related to the income statement are
measured on the basis of operating
income:
Major defect: misstatement amount > 2%
of operating income;
2) The internal control defects that may
cause losses or whose losses are
related to the assets management are
measured on the basis of total assets:
Major defect: misstatement amount > 1%
Major defect: direct property loss > RMB
of total assets;
20 million;
The quantitative standard takes the
Important defect: RMB 5 million < direct
Quantitation standard operating income and the total assets as the
property loss < RMB 20 million;
measurement index.
1) The internal control defects that may
Common defect: direct property loss <
cause losses or whose losses are
RMB 5 million;
related to the income statement are
measured on the basis of operating
income:
Important defect: 1% of operating income
< misstatement amount < 2% of operating
income;
2) The internal control defects that may
cause losses or whose losses are
related to the assets management are
measured on the basis of total assets:
Important defect: 0.5% of total assets <
misstatement amount < 1% of total assets;
The quantitative standard takes the
operating income and the total assets as the
37
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
measurement index.
1) The internal control defects that may
cause losses or whose losses are
related to the income statement are
measured on the basis of operating
income:
Common defect: misstatement amount <
1% of operating income;
2) The internal control defects that may
cause losses or whose losses are
related to the assets management are
measured on the basis of total assets:
Common defect: misstatement amount <
0.5% of total assets;
Number of major defects in financial
0
reports
Number of major defects in non-financial
0
reports
Number of important defects in financial
0
reports
Number of important defects in non-
0
financial reports
2. Internal control audit report
Applicable □ Not applicable
Deliberations in the internal control audit report
On December 31, 2023, ROBAM maintained effective internal control over financial reporting in all major aspects in accordance
with the Basic Standards for Enterprise Internal Control and relevant regulations.
Disclosure of internal control audit report Disclosure
Disclosure date of the full text of internal control audit report April 25, 2024
Disclosure index of the full text of internal control audit report Cninfo: Full text of 2023 internal control audit report of ROBAM
Type of the opinions on internal control audit report Standard unqualified opinions
Whether there are significant defects in non-financial reports No
Whether the accounting firm issues an internal control audit report with non-standard opinions
□ Yes No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report of the board of
directors
Yes □ No
38
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Section 5 Environmental and Social Responsibility
I. Major Environmental Issues
Whether the listed company and its subsidiaries are key pollutant discharging units announced by environmental protection
authorities
□ Yes No
Administrative punishment for environmental problems during the reporting period
Impact on
Rectification
Company or Cause of production and
Violation details Punishment results measures of the
subsidiary name punishment operation of listed
Company
companies
N/A N/A N/A N/A N/A N/A
Other environmental information disclosed by reference to key pollutant discharging units
N/A
Measures taken to reduce carbon emissions during the reporting period and relevant effects
□ Applicable Not applicable
Reasons for non-disclosure of other environmental information
N/A
II. Social Responsibility
See the 2023 Environmental, Social and Corporate Governance Report disclosed by the Company on the designated information
disclosure media http://www.cninfo.com.cn for details.
III. Consolidate and Expand the Achievements of Poverty Alleviation and Rural
Revitalization
See the 2023 Environmental, Social and Corporate Governance Report disclosed by the Company on the designated information
disclosure media http://www.cninfo.com.cn for details.
39
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Section 6 Important Matters
I. Performance in Fulfilling Commitments
1. Commitments fulfilled within and not fulfilled by the end of the reporting period by the Company's
actual controller, shareholders, related parties, acquirer and other commitment parties
Applicable □ Not applicable
Time
Commit limit Degree of
Commitment Commitment Commitmen
ment Commitment content for performanc
reason party t time
type accepta e
nce
Directors, After the expiry of the 36-month sales
supervisors and Commit restriction period, the shares transferred each
Commitment senior ment to year during his/her tenure shall not exceed 25%
Strict
made at the time management of the total number of shares held directly or
restrictio November Long-
performanc
of IPO or directly or n on indirectly in the Company; the Company 23, 2010 term
e
refinancing indirectly sales ofshares directly or indirectly held shall not be
holding shares shares transferred within six months after the
of the Company resignation.
1. The Company/I and other enterprises under
the control of the Company/me do not, and
will not, directly or indirectly, engage in
any activities that constitute horizontal
competition with the existing and future
business of ROBAM and its holding
subsidiaries; 2. If any business opportunity
obtained the Company/I and other
Commit
enterprises under the control of the
Hangzhou ment on
Commitment Company/me from any third party
ROBAM avoiding Strict
made at the time constitutes or may constitute substantial November Long-
Industrial Group horizont performanc
of IPO or competition with the business of ROBAM, 23, 2010 term
Co., Ltd.; Ren al e
refinancing the Company/I will immediately notify
Jianhua competit
ROBAM and transfer such business
ion
opportunity to ROBAM; 3. The Company/I
and other enterprises under the control of
the Company/me commit not to provide
technical information, process flow,
marketing channels or other trade secrets to
other companies, enterprises, organizations
or individuals whose business constitutes
competition with the business of ROBAM.
Whether the
commitment is Yes
fulfilled on time
If the
commitment is
not fulfilled on
time, the specific
reasons for the
failure of
N/A
fulfilling the
commitment and
the next step of
the work plan
should be
detailed
2. In case the Company's asset or project saw earning expectation, and the reporting period is still
covered by the term of the earning expectation, the Company shall make a statement about the asset
or project fulfilling the original expectation and the reasons thereof.
□ Applicable Not applicable
40
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
II. Non-operating Occupation of Funds of Listed Companies by Controlling Shareholders
and Other Related Parties
□ Applicable Not applicable
No non-operating occupation of funds of listed companies by controlling shareholders and other related parties during the
reporting period.
III. Illegal External Guarantee
□ Applicable Not applicable
No illegal external guarantee of the Company during the reporting period.
IV. Statement of the Board of Directors on the Latest "Non-standard Audit Report"
□ Applicable Not applicable
V. Statement of the Board of Directors, the Board of Supervisors and Independent
Directors (if any) on the "Non-standard Audit Report" of the Accounting Firm during the
Reporting Period
□ Applicable Not applicable
VI. Description of Changes in Accounting Policy and Accounting Estimates or Significant
Accounting Error Correction as Compared to the Financial Statements of the Previous
Year
□ Applicable Not applicable
There is no change in accounting policy, accounting estimate or significant accounting error correction in the reporting period.
VII. Description of Changes in the Scope of Combined Financial Statements as Compared
to Financial Statements of the Previous Fiscal Year
□ Applicable Not applicable
No changes in the scope of combined financial statements in the reporting period.
VIII. Appointment of and Dismissal of Accounting Firms
Accounting firm currently appointed
Shinewing Certified Public Accountants (special general
Name of Chinese accounting firm
partnership)
Remuneration (10,000 yuan) 145
Term of audit services 5
CPAs Lei Yongxin, Wang Qing
Term of auditing services of CPAs 5
Has the accounting firm been changed within the reporting period?
□ Yes No
Employment of internal control audit accounting firm, financial advisor or sponsor
Applicable □ Not applicable
ShineWing Certified Public Accountants (Special general partnership) served as the internal control audit agency of the Company
in 2023, with an audit fee of RMB 1,450,000, including: RMB 1,150,000 for financial statement audit and RMB 300,000 for
internal control audit.
IX. Delisting Confronted upon Disclosure of the Annual Report
□ Applicable Not applicable
41
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
X. Bankruptcy Reorganization
□ Applicable Not applicable
No bankruptcy reorganization of the Company during the reporting period.
XI. Major Litigation, Arbitration Matters
□ Applicable Not applicable
No major litigation or arbitration matters of the Company during the reporting period.
XII. Punishment and Rectification
□ Applicable Not applicable
No punishment or rectification of the Company during the reporting period.
XIII. Credit Conditions of the Company, its Controlling Shareholders and Actual
Controllers
□ Applicable Not applicable
XIV. Major Related Transactions
1. Related transactions related to daily operation
□ Applicable Not applicable
No related transactions related to daily operation of the Company during the reporting period.
2. Related transactions arising from the acquisition or sale of assets or equity
□ Applicable Not applicable
No Related transactions arising from the acquisition or sale of assets or equity of the Company during the reporting period.
3. Related transactions of joint foreign investment
□ Applicable Not applicable
No related transactions of joint foreign investment of the Company during the reporting period.
4. Related claims and debts
□ Applicable Not applicable
No related claims and debts of the Company during the reporting period.
5. Transactions with related financial companies
□ Applicable Not applicable
There is no deposit, loan, credit or other financial business between the Company and the related financial companies and the
related parties.
6. Transactions between the financial companies controlled by the Company and related parties
□ Applicable Not applicable
There is no deposit, loan, credit or other financial business between the financial companies controlled by the Company and the
related parties.
7. Other major related transactions
□ Applicable Not applicable
No other major related transactions of the Company during the reporting period.
42
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
XV. Major Contracts and Their Performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ Applicable Not applicable
No trusteeship of the Company during the reporting period.
(2) Contracting
□ Applicable Not applicable
No contracting of the Company during the reporting period.
(3) Lease
□ Applicable Not applicable
No lease of the Company during the reporting period.
2. Major guarantee
□ Applicable Not applicable
No major guarantee of the Company during the reporting period.
3. Entrusted cash asset management
(1) Entrusted financing
Applicable □ Not applicable
Entrusted financing during the reporting period
Unit: 10,000 yuan
Overdue amount of
impairment accrued
Source of funds for Amount incurred in Overdue amount not
Specific type Outstanding balance for financial
entrusted financing entrusted financing recovered
management not
recovered
Bank financial
Owned fund 301,000 321,000 0 0
products
Total 301,000 321,000 0 0
Specific circumstance of high-risk entrusted financing with significant single amount or with low security and poor liquidity
□ Applicable Not applicable
The entrusted financing is expected not to recover the principal or has other circumstances that may cause impairment
□ Applicable Not applicable
(2) Entrusted loans
□ Applicable Not applicable
No entrusted loans of the Company during the reporting period.
4. Other major contracts
□ Applicable Not applicable
No other major contracts of the Company during the reporting period.
XVI. Description of Other Important Events
□ Applicable Not applicable
No other important events to be described during the reporting period.
43
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
XVII. Major Events of Subsidiaries
□ Applicable Not applicable
44
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Section 7 Changes in Shares and Shareholders
I. Change in Shares
1. Change in shares
Unit: share
Before this change Increase/decrease (+, -) After this change
Sh
ar
e
ca
pit
N al
e in
w Sh cr
is are ea
Proportio su do se
Quantity Other Subtotal Quantity Proportion
n e nat fr
of io o
sh n m
ar re
es se
rv
ed
fu
nd
s
I. Restricted shares 12,053,269 1.27% 208,578 208,578 12,261,847 1.29%
1. State shareholding
2. State legal person
shareholding
3. Other domestic
12,053,269 1.27% 208,578 208,578 12,261,847 1.29%
shareholding
Wherein: domestic legal
person shareholding
Domestic natural person
12,053,269 1.27% 208,578 208,578 12,261,847 1.29%
shareholding
4. Foreign shareholding
Wherein: foreign legal
person shareholding
Foreign natural person
shareholding
II. Unrestricted shares 936,970,781 98.73% -208,578 -208,578 936,762,203 98.71%
1. RMB common share 936,970,781 98.73% -208,578 -208,578 936,762,203 98.71%
2. Foreign shares listed in
China
3. Foreign shares listed
abroad
4. Other
III. Total amount of shares 949,024,050 100.00% 0 0 949,024,050 100.00%
Causes for change in shares
□ Applicable Not applicable
Approval of changes in shares
□ Applicable Not applicable
Transfer of share changes
□ Applicable Not applicable
45
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Influence of share changes on the basic EPS, diluted EPS, net assets per share attributable to common shareholders of the
Company and other financial indexes in the most recent year and the most recent period
□ Applicable Not applicable
Other information the Company deems necessary or required by the securities regulatory authorities to disclose
□ Applicable Not applicable
2. Changes in restricted shares
Applicable □ Not applicable
Unit: share
Number of
Number of Number of Number of
shares released
Shareholder's restricted shares restricted shares restricted shares Reasons for Date of lifting
from restricted
name at the beginning increased in at the end of the restricted sale the restricted sale
sale in current
of the period current period period
period
Resigned from
the board of 6 months after
Zhang Songnian 625,734 208,578 0 834,312 supervisors at the expiration of
end of term of term of office
office
Total 625,734 208,578 0 834,312 -- --
II. Securities Issuance and Listing
1. Securities issuance (excluding preferred shares) during the reporting period
□ Applicable Not applicable
2. Description of changes in the total number of shares, shareholder structure, asset and liability
structure of the Company
□ Applicable Not applicable
3. Existing internal employee shares
□ Applicable Not applicable
III. Shareholders and Actual Controllers
1. Number and shareholding of the Company's shareholders
Unit: share
Total
number of Total
common number of
shareholder preferred
Total number of preferred
s at the end shareholders
shareholders with voting
Total number of of the with voting
rights restored at the end
common shareholders at previous rights
63,957 51,077 0 of the previous month 0
the end of the reporting month restored at
before the disclosure date
period (household) before the the end of
of the annual report (if
disclosure the reporting
any) (see Note 8)
date of the period (if
annual any) (see
report Note 8)
(household)
Shareholdings of the shareholders holding more than 5% shares or the top 10 shareholders (excluding shares lent through refinancing)
Number of Increase or Pledge, mark or freeze
Number of Number of
shares held at decrease
Shareholder Shareholdin shares held with shares held with Status
Shareholder's name the end of the during the
nature g ratio limited sales unlimited sales of Quantity
reporting reporting
conditions conditions shares
period period
46
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Hangzhou Robam Domestic non-
Industrial Group Co., state legal 49.68% 471,510,000 0.00 471,510,000
Ltd. person
-
Hong Kong Securities Overseas legal
7.23% 68,586,135 20,510,396.0 68,586,135
Clearing Company Ltd. person
0
TEMASEK
Overseas legal
FULLERTON ALPHA 1.82% 17,265,617 535,556.00 17,265,617
person
PTELTD
Domestic natural
Shen Guoying 1.29% 12,240,000 0.00 12,240,000
person
National Social Security 12,115,200.0
Other 1.28% 12,115,200 12,115,200
Fund 413 Portfolio 0
Domestic non-
Hangzhou Jinchuang
state legal 0.70% 6,640,085 0.00 6,640,085
Investment Co., Ltd.
person
Domestic non-
Hangzhou Yinchuang
state legal 0.67% 6,318,000 0.00 6,318,000
Investment Co., Ltd.
person
Domestic natural
Ren Jianhua 0.62% 5,923,150 0.00 4,442,362 1,480,788
person
Industrial and
Commercial Bank of
China Limited－
Other 0.61% 5,787,141 0.00 5,787,141
Penghua selects hybrid
securities investment
funds with ingenuity
China Pacific Life
Insurance Co., Ltd -
Traditional - Other 0.61% 5,762,400 2,358,557.00 5,762,400
General Insurance
Products
Situation of strategic investors or general
legal persons becoming the top 10
N/A
shareholders due to the allotment of new
shares (if any) (see note 3)
The actual controller of the Company's controlling shareholder Hangzhou ROBAM Industrial Group Co.,
Description of the above-mentioned Ltd. and the shareholder Hangzhou Jinchuang Investment Co., Ltd. is Mr. Ren Jianhua, and the natural
shareholder association or concerted action person shareholder Shen Guoying is the wife of Ren Jianhua. The above shareholders have the possibility
of acting in unison.
Description of the above shareholders
involved in entrusting / entrusted voting N/A
right and waiver of voting right
Special note on the existence of special
repurchase accounts among the top 10 N/A
shareholders (if any) (see Note 10)
Shareholding of top 10 shareholders with unlimited sales conditions
Share type
Number of shares with unlimited sales conditions held at the end of the
Shareholder's name Share
reporting period Quantity
type
Hangzhou Robam Industrial Group Co., RMB
Ltd. 471,510,000 commo 471,510,000
n share
RMB
Hong Kong Securities Clearing Company
68,586,135 commo 68,586,135
Ltd.
n share
RMB
TEMASEK FULLERTON ALPHA PTE
17,265,617 commo 17,265,617
LTD
n share
RMB
Shen Guoying 12,240,000 12,240,000
commo
47
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
n share
RMB
National Social Security Fund 413
12,115,200 commo 12,115,200
Portfolio
n share
RMB
Hangzhou Jinchuang Investment Co., Ltd. 6,640,085 commo 6,640,085
n share
RMB
Hangzhou Yinchuang Investment Co., Ltd. 6,318,000 commo 6,318,000
n share
Industrial and Commercial Bank of China RMB
Limited－Penghua selects hybrid securities 5,787,141 commo 5,787,141
investment funds with ingenuity n share
RMB
China Pacific Life Insurance Co., Ltd -
5,762,400 commo 5,762,400
Traditional - General Insurance Products
n share
RMB
CITIC Securities Company Limited -
5,565,600 commo 5,565,600
Social Security Fund 1106 Portfolio
n share
Description of the association or concerted
action between top 10 public shareholders The actual controller of the Company's controlling shareholder Hangzhou ROBAM Industrial Group Co.,
with unlimited sales conditions, and Ltd. and the shareholder Hangzhou Jinchuang Investment Co., Ltd. is Mr. Ren Jianhua, and the natural
between top 10 public shareholders with person shareholder Shen Guoying is the wife of Ren Jianhua. The above shareholders have the possibility
unlimited sales conditions and top 10 of acting in unison.
shareholders
Securities margin trading business attended
by top 10 common shareholders (if any) N/A
(see note 4)
Lending of shares by the top ten shareholders in the refinancing business
□ Applicable Not applicable
Change in the top ten shareholders from the previous period
□ Applicable Not applicable
Whether the Company's top 10 common shareholders and op 10 common shareholders with unlimited sales conditions agreed on a
repurchase transaction during the reporting period
□ Yes No
The Company's top 10 common shareholders and op 10 common shareholders with unlimited sales conditions did not agree on a
repurchase transaction during the reporting period
2. Controlling shareholders of the Company
Nature of controlling shareholder: natural person holding
Type of controlling shareholder: legal person
Controlling shareholder's Legal Representative /
Date of establishment Organization code Main business
name Head of Unit
Hangzhou Robam Industrial investment,
Industrial Group Co., Ren Jianhua March 22, 1995 913301101438402503 import and export of
Ltd. goods
Equity of other domestic
and foreign listed
companies controlled The controlling shareholder of Hangzhou Nbond Nonwoven Co., Ltd., and the participating shareholder of
and participated by Zhejiang CFMOTO Power Co., Ltd., Hangzhou Fortune Gas Cryogenic Group Co., Ltd. and Hangzhou
controlling shareholders SFR Chain Technology Co., Ltd.
during the reporting
period
Change of controlling shareholders during the reporting period
48
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
□ Applicable Not applicable
No change in controlling shareholders during the reporting period.
3. Actual controller of the Company and the person acting in concert
Nature of actual controller: domestic natural person
Type of actual controller: natural person
Whether to obtain the right of
Relationship with actual
Actual controller's name Nationality residence in other countries or
controller
regions
Ren Jianhua Self Chinese No
Main occupations and positions Please refer to the resume of the Company's directors for details
Domestic and foreign listed
Actual controller of Hangzhou ROBAM Appliances Co., Ltd. and Hangzhou Nbond Nonwoven
companies that have held shares
Co., Ltd.
in the past 10 years
Changes in actual controller during the reporting period
□ Applicable Not applicable
No change in actual controller during the reporting period.
Block diagram of property right and control relationship between the Company and actual controller
Ren Jianhua
Jinchuang
ROBAM Group
Investment
Hangzhou ROBAM Appliances Co., Ltd.
The actual controller controls the Company through trust or other asset management methods
□ Applicable Not applicable
4. The cumulative number of pledged shares of the Company's controlling shareholder or the largest
shareholder and its persons acting in concert accounts for 80% of the Company's shares held by
them
□ Applicable Not applicable
5. Other legal person shareholders holding more than 10%
□ Applicable Not applicable
6. Restricted share reduction of controlling shareholders, actual controller, reorganizers and other
commitment subjects
□ Applicable Not applicable
IV. Specific Implementation of Share Repurchase in the Reporting Period
Implementation progress of share repurchase
□ Applicable Not applicable
Implementation progress of reducing repurchased shares by centralized competitive bidding trading
□ Applicable Not applicable
49
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Section 8 Information Related to Preferred Shares
□ Applicable Not applicable
No preferred shares of the Company during the reporting period.
50
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Section 9 Bond-related Information
□ Applicable Not applicable
51
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Section 10 Financial Report
I. Audit Report
Type of audit opinion Standard unqualified opinion
Date of signing of audit report April 24, 2024
Shinewing Certified Public Accountants (special general
Name of audit institution
partnership)
Audit Report No. XYZH/2024BJAA10B0229
Name of Certified Public Accountant Lei Yongxin, Wang Qing
Main body of audit report
Audit Report
XYZH/2024BJAA10B0229
Hangzhou ROBAM Appliances Co., Ltd.
To all shareholders of Hangzhou ROBAM Appliances Co., Ltd.:
Audit opinion
We have audited the accompanying financial statements of Hangzhou ROBAM Appliances Co., Ltd.
(hereinafter referred to as ROBAM), including the consolidated balance sheet and the balance sheet of
parent company as of December 31, 2023, consolidated income statement and income statement of parent
company, consolidated cash flow statement and cash flow statement of parent company, consolidated
statement of change in equity and statement of change in equity of parent company for the year 2023 and
notes to relevant financial statements.
In our opinion, the attached financial statements of your company have been prepared in accordance with
the provisions of the Accounting Standards for Business Enterprises and give a true and fair view of the
consolidated financial position and financial position of parent company of ROBAM as of December 31,
2023 and of the financial performance and cash flows for the year 2023 in all significant terms.
Basis for audit opinion
We conducted our audit in accordance with the Standards on Auditing for Certified Public Accountants.
The "responsibility of certified public accountants for audit of financial statements" in the audit report
further expounds our responsibilities under such standards. We were independent of ROBAM and fulfill
other responsibilities in terms of professional ethics according to the code of professional ethics. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Key audit items
The key audit items are those that we consider most important to audit the financial statements of the
current period in our professional judgment. The response to these items is based on the audit of the
financial statements as a whole and the formation of an audit opinion. We do not comment on these items
separately. We have identified the following items as key audit items to be communicated in the audit
report.
1. Revenue recognition - agency model and engineering channels
Key audit items Response in audit
Refer to Notes to financial statements IV. For the income recognition of the agency mode and engineering
34 and VI. 39 Operating income and channels, the audit procedures we implemented mainly include:
operating cost. 1. Understand key internal controls related to income recognition,
52
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
In 2023, the operating income of evaluate and test the effectiveness of internal control design and
ROBAM was RMB 1,120,189.58, implementation;
representing an increase of RMB 2. Check the information of the shareholders and main personnel of
930,395,200 as compared to 2022, the agency company and evaluate whether there is any
including the agency mode income of correlation;
RMB 2,922,898,600 and the engineering 3. Evaluate whether the income recognition method and recognition
channel income of RMB 2,075,246,500, time point comply with the relevant provisions of the Accounting
totally accounting for 44.62% of revenue Standards for Business Enterprises in combination with the
of the period. contract terms and business nature and the terms related to the
Since the agency mode income and time point of commodity control transfer;
engineering channel income account for 4. Carry out substantive analysis procedures on operating income
large proportion in the operating income and gross margin ratio by channels, customers, products, etc.,
and are one of the key performance identify whether there are significant or abnormal fluctuations,
indicators of ROBAM, there may be an and analyze the causes of fluctuations;
inherent risk that the management may 5. Check the original documents of the income recognition for major
recognize the income in the wrong way customers according to the income recognition policy and
to reach the specific goal or expected settlement process and evaluate the authenticity and accuracy of
goal. Therefore, we regard income operating income recognition;
recognition as a key audit issue. 6. Confirm current sales to main customers by sampling combined
with the confirmation of accounts receivable;
7. Carry out the cut-off test procedure of income, check the
supporting documents such as outbound delivery order and
acceptance certificate for the operating income recognized before
and after the balance sheet date, and evaluate whether the
operating income is recognized within an appropriate period;
8. Check whether the information relating to operating income has
been properly presented and disclosed in the financial statements.
2. Impairment of accounts receivable
Key audit items Response in audit
Refer to Notes to financial statements IV. For the impairment of accounts receivable, the audit procedures we
13, and VI. 4 Accounts receivable. implemented mainly include:
As of December 31, 2023, the balance of 1. Understand key internal controls for accounts receivable of
accounts receivable was RMB Robam, evaluate and test the effectiveness of internal control
3,034,197,200, and the provision for bad design and implementation;
debt was RMB 1,224,181,600. 2. Check the contracts of main customers according to the income
Due to the large amount of accounts status, understand the settlement terms, pay attention to the
receivable at the end of the period, the customers who have not made payment after the settlement
management needs to use material credit period, and analyze the reasons. Judge the solvency of
accounting estimate and judgment when customers by understanding their operating and financial
determining the recoverable amount, so we conditions;
regard the impairment of accounts 3. Analyze the implementation of the new financial instrument
receivable as the key audit items. standards for receivables, including the rationality of
determination and estimation of the expected credit loss model
for the receivables of Robam, calculate the expected credit loss
amount on the balance sheet date, and analyze whether the
credit loss is fully accounted for in the receivables period;
4. Verify the rationality of expected credit loss of receivables
combined with the receivables confirmation procedure and
post-dated collection by analyzing the aging of accounts
receivable;
5. Check the post-dated recovery status of accounts receivable
from main customers, record the amount of accounts receivable
53
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
collected after the post-dated period, and check the supporting
documents, such as bank receipt and other vouchers, for those
with large amounts of notes receivable;
6. Check whether the information relating to accounts receivable
has been properly presented and disclosed in the financial
statements.
Other information
The management of ROBAM (hereinafter referred to as the management) is responsible for other
information, including the information covered in ROBAM annual report for 2023, but excluding the
financial statements and our audit report.
Our audit opinion on the financial statements does not cover other information and we does not express
any form of verification conclusions on other information.
Combined with our audit of the financial statements, it's our responsibility to read other information. In
this process, we shall consider whether material inconsistency or material misstatement of other
information with the financial statements or the situation understood by us in the audit process.
Based on the work that has been executed by us, we should report the fact of material misstatement
confirmed in other information. We have nothing to report in this regard.
Responsibility of management and government for the financial statements
The management is responsible for preparing the financial statements in accordance with the provisions of
the Accounting Standards for Business Enterprises and giving a true and fair view; designing,
implementing and maintaining necessary internal control, so that the financial statements are free from
material misstatement, whether due to fraud or error.
When preparing the financial statements, the management is responsible for evaluating the going-concern
ability of ROBAM, disclosing the matters related to the going-concern (if applicable) and using the going-
concern assumption, unless the management plans to liquidate ROBAM or stop operation or no other
realistic options.
The government is responsible for supervising the financial reporting process of ROBAM.
Responsibility of certified public accountants for audit of financial statements
Our goal is to obtain reasonable guarantee on inexistence of the material misstatement of the financial
statements whether due to fraud or error and to issue an audit report including audit opinion. Reasonable
guarantee is high level guarantee, but it cannot guarantee that a material misstatement of the audit executed
according to the auditing standards will always be found. Misstatement may be caused by fraud or error. If
the reasonable expected misstatements may affect the economic decision made by the financial statement
user according to the financial statements, whether individually or collectively, the misstatement is
generally believed material.
We made professional judgment and maintained professional skepticism in the audit process according to
the auditing standards. We also performed the following:
1. Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and implement audit procedures to address these risks, and obtain sufficient
and appropriate audit evidence as the basis for audit opinion. Since the fraud may involve
collusion, forge, intentional omission, false statement or above internal control, the risk of
material misstatement caused by fraud is higher than that caused by error.
2. Understand internal control related to the audit in order to design audit procedures that are
appropriate in the circumstances.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
54
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
estimates and relevant disclosure.
4. Draw a conclusion about the appropriateness of the going-concern assumption used by the
management. Meanwhile, draw a conclusion about the major uncertainty of the matters or
circumstances possibly resulting in major concerns about the going-concern ability of ROBAM
according to the audit evidence obtained. If we draw a conclusion that major uncertainty exists,
the auditing standards require us to request the statement user to notice relevant disclosure in the
financial statements in the audit report; in case of insufficient disclosure, we should issue a
modified audit report. Our conclusion is made on the basis of the information available as of the
audit report date. However, the future matters or circumstances may result in going concern
failure of Robam.
5. Evaluate the overall presentation, structure and content of the financial statements and evaluate
whether the financial statements give a true and fair view of relevant transactions and matters.
6. Obtain adequate and appropriate audit evidence for the financial information of ROBAM entity
or business activities to express an opinion on the financial statements. We are responsible for
guiding, supervising and implementing the group audit and take full responsibility for the audit
opinions.
We communicate with the governance on the planned audit scope, time arrangement and major audit
findings, including the internal control defects identified by us in the audit and worthing attention.
We also provide the governance with a statement of compliance with the ethical requirements relating to
our independence and communicate with the governance with respect to all relations and other matters that
may reasonably be considered to affect our independence and the relevant precautions (if applicable).
From the items communicated with the governance, we determine which items are most important to the
audit of current financial statements and thus constitute the key audit items. We describe these items in our
audit report, unless the disclosure of these matters is prohibited by law or regulation, or, in rare
circumstances, we determine that we should not communicate the items in our audit report if it is
reasonably expected that the negative consequences of communicating an item outweigh the benefits in the
public interest.
II. Financial Statements
Unit of statements in financial notes: CNY
1. Consolidated Balance Sheet
Unit: Hangzhou ROBAM Appliances Co., Ltd.
December 31, 2023
Unit: yuan
Item December 31, 2023 January 01, 2023
Current assets:
Monetary capital 1,985,050,745.11 5,292,762,670.94
Deposit reservation for balance
Lending funds
Trading financial assets 2,730,000,000.00 2,511,844,508.00
Derivative financial assets
Notes receivable 696,284,931.64 881,773,341.71
Accounts receivable 1,810,015,596.33 1,689,606,828.94
Receivables financing
Advances to suppliers 139,713,471.58 177,500,353.37
Premiums receivables
Reinsurance accounts receivable
Provision of cession receivable
55
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Item December 31, 2023 January 01, 2023
Other receivables 53,368,667.34 80,429,057.84
Including: Interest receivable
Dividends receivable
Redemptory monetary capital for sale
Inventory 1,524,274,720.24 1,610,110,798.10
Contract assets
Assets held for sales
Non-current assets due within a year
Other current assets 2,647,808,620.70 334,348.76
Total current assets 11,586,516,752.94 12,244,361,907.66
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 8,427,450.24 8,718,505.62
Other equity instrument investments 2,116,023.22 2,116,023.22
Other non-current financial assets 480,000,000.00
Investment properties 91,136,832.31 55,887,198.54
Fixed assets 1,720,724,257.46 1,622,235,227.74
Construction in progress 359,768,699.68 406,258,146.69
Productive biological assets
Oil and gas assets
Right-of-use assets 13,802,458.98 22,220,144.13
Intangible assets 214,553,739.31 221,356,558.38
Development expenditure
Goodwill 12,223,271.67 60,573,832.56
Long-term unamortized expenses 5,034,659.37 5,852,899.90
Deferred income tax assets 362,897,841.89 340,811,345.96
Other non-current assets 1,922,329,328.65 49,433,497.13
Total non-current assets 5,193,014,562.78 2,795,463,379.87
Total assets 16,779,531,315.72 15,039,825,287.53
Current liabilities:
Short-term borrowing 95,003,320.70 51,723,429.99
Borrowings from central bank
Borrowing funds
Trading financial liabilities
Derivative financial liabilities
Notes payable 1,098,720,000.58 872,550,306.86
Accounts payable 2,548,743,762.06 2,418,755,167.31
Advance from customers
Contract liabilities 1,019,942,923.58 959,915,567.03
Financial assets sold for repurchase
Deposits from customers and interbank
Acting trading securities
Acting underwriting securities
Payroll payable 177,923,042.01 153,942,329.88
Tax payable 154,365,676.80 152,351,620.58
Other payables 755,964,919.76 281,878,208.25
Including: Interest payable
56
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Item December 31, 2023 January 01, 2023
Dividends payable 472,047,458.00
Fees and commissions payable
Dividend payable for reinsurance
Liabilities held for sales
Non-current liabilities due within a year 4,522,658.42 5,720,175.21
Other current liabilities 118,041,351.23 120,126,501.73
Total current liabilities 5,973,227,655.14 5,016,963,306.84
Non-current liabilities:
Reserve fund for insurance contracts
Long-term borrowing
Bonds payable
Including: preferred stock
Perpetual bond
Lease liabilities 10,750,792.90 18,588,966.67
Long-term payable
Long-term payroll payable
Estimated liabilities
Deferred income 136,538,254.74 123,912,110.43
Deferred income tax liabilities 28,418,565.01 22,107,934.58
Other non-current liabilities
Total non-current liabilities 175,707,612.65 164,609,011.68
Total liabilities 6,148,935,267.79 5,181,572,318.52
Owner's equity:
Share capital 949,024,050.00 949,024,050.00
Other equity instruments
Including: preferred stock
Perpetual bond
Capital reserve 411,778,214.22 409,997,665.58
Minus: treasury stock 199,995,742.59 199,995,742.59
Other comprehensive income -100,157,634.16 -100,157,634.16
Special reserve
Surplus reserves 474,516,412.50 474,516,412.50
General risk preparation
Undistributed profit 8,987,773,431.71 8,199,079,015.58
Total owners' equities attributable to the
10,522,938,731.68 9,732,463,766.91
owners of parent company
Minority equity 107,657,316.25 125,789,202.10
Total owners' equities 10,630,596,047.93 9,858,252,969.01
Total liabilities and owners' equities 16,779,531,315.72 15,039,825,287.53
Legal representative: Ren Jianhua Head of accounting work: Zhang Guofu Head of accounting body: Zhang Guofu
2. Balance sheet of parent company
Unit: yuan
Item December 31, 2023 January 01, 2023
Current assets:
Monetary capital 1,810,087,936.08 5,054,810,287.04
Trading financial assets 2,730,000,000.00 2,500,000,000.00
Derivative financial assets
Notes receivable 662,718,295.18 879,223,549.33
Accounts receivable 1,755,848,590.56 1,620,543,528.97
Receivables financing
57
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Advances to suppliers 127,173,134.27 167,724,048.79
Other receivables 46,761,052.06 83,900,676.77
Including: Interest receivable
Dividends receivable 10,200,000.00
Inventory 1,404,838,448.75 1,499,780,747.70
Contract assets
Assets held for sales
Non-current assets due within a year
Other current assets 2,644,890,957.65
Total current assets 11,182,318,414.55 11,805,982,838.60
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 255,471,029.63 251,769,849.44
Other equity instrument investments 2,116,023.22 2,116,023.22
Other non-current financial assets 480,000,000.00
Investment properties 8,735,897.94 4,426,211.90
Fixed assets 1,528,320,306.82 1,396,227,874.68
Construction in progress 359,768,699.68 406,258,146.69
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 148,054,087.98 149,864,689.61
Development expenditure
Goodwill
Long-term unamortized expenses 2,703,497.73 1,486,622.90
Deferred income tax assets 346,004,342.16 323,776,879.25
Other non-current assets 1,922,135,328.65 49,433,497.13
Total non-current assets 5,053,309,213.81 2,585,359,794.82
Total assets 16,235,627,628.36 14,391,342,633.42
Current liabilities:
Short-term borrowing 14,003,320.70 573,429.99
Trading financial liabilities
Derivative financial liabilities
Notes payable 1,042,067,981.92 810,820,603.91
Accounts payable 2,416,687,934.76 2,282,866,624.07
Advance from customers
Contract liabilities 947,538,425.82 890,640,445.28
Payroll payable 145,416,052.40 121,417,848.03
Tax payable 140,518,721.35 130,548,651.54
Other payables 725,701,383.40 254,460,632.28
Including: Interest payable
Dividends payable 472,047,458.00
Liabilities held for sales
Non-current liabilities due within a year
Other current liabilities 107,860,993.92 109,801,716.95
Total current liabilities 5,539,794,814.27 4,601,129,952.05
Non-current liabilities:
Long-term borrowing
Bonds payable
58
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Including: preferred stock
Perpetual bond
Lease liabilities
Long-term payable
Long-term payroll payable
Estimated liabilities
Deferred income 101,473,668.84 86,923,728.32
Deferred income tax liabilities 20,898,710.27 13,804,141.19
Other non-current liabilities
Total non-current liabilities 122,372,379.11 100,727,869.51
Total liabilities 5,662,167,193.38 4,701,857,821.56
Owner's equity:
Share capital 949,024,050.00 949,024,050.00
Other equity instruments
Including: preferred stock
Perpetual bond
Capital reserve 411,389,124.26 409,608,575.62
Minus: treasury stock 199,995,742.59 199,995,742.59
Other comprehensive income -100,157,634.16 -100,157,634.16
Special reserve
Surplus reserves 474,516,412.50 474,516,412.50
Undistributed profit 9,038,684,224.97 8,156,489,150.49
Total owners' equities 10,573,460,434.98 9,689,484,811.86
Total liabilities and owners' equities 16,235,627,628.36 14,391,342,633.42
3. Consolidated Statement of Income
Unit: yuan
Item Year 2023 Year 2022
I. Total operating income 11,201,895,774.27 10,271,500,571.04
Including: Operating income 11,201,895,774.27 10,271,500,571.04
Interest revenue
Premium earned
Fee and commission income
II. Total operating costs 9,296,781,893.88 8,494,920,336.60
Including: Operating costs 5,527,648,706.29 5,137,368,758.15
Interest expenditure
Fee and commission expense
Surrender value
Net payments for insurance
claims
Net reserve fund extracted for
insurance contracts
Bond insurance expense
Reinsurance costs
Taxes and surcharges 98,651,608.07 78,564,584.05
Selling expenses 3,002,418,651.54 2,613,626,073.89
Management costs 469,622,072.60 430,968,403.74
Research and development
387,368,591.97 391,614,805.38
expenses
Financial expenses -188,927,736.59 -157,222,288.61
Including: interest expenditure 8,773,638.31 10,249,057.76
Interest revenue 198,559,145.09 162,232,029.99
59
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Plus: other incomes 173,912,473.94 148,475,570.29
Income from investment (loss expressed
82,963,414.69 98,961,069.15
with "-")
Including: Income from
investment of joint venture and -291,055.38 -826,624.29
cooperative enterprise
Income from derecognition of financial
assets measured at amortized cost
Exchange gain (loss
expressed with "-")
Net exposure hedging gain (loss
expressed with "-")
Income from fair value changes (loss
expressed with "-")
Credit impairment losses (loss expressed
-102,136,793.39 -224,114,601.65
with "-")
Assets impairment losses (loss expressed
-70,692,389.97 -24,998,305.92
with "-")
Income from disposal of assets (loss
-1,211,854.70 143,437.75
expressed with "-")
III. Operating profits (loss expressed with
1,987,948,730.96 1,775,047,404.06
"-")
Plus: Non-operating income 4,742,209.59 3,268,479.05
Minus: non-operating expenditure 6,580,896.29 5,343,278.82
IV. Total profits (total loss expressed with
1,986,110,044.26 1,772,972,604.29
"-")
Minus: Income tax expenses 271,452,597.98 214,666,153.99
V. Net profits (net loss expressed with "-") 1,714,657,446.28 1,558,306,450.30
(I) Classified by business continuity
1. Net profits from going concern (net
1,714,657,446.28 1,558,306,450.30
loss expressed with "-")
2. Net profits from discontinuing
operation (net loss expressed with "-")
(II) Classified by ownership
1. Net profits attributable to shareholders
1,732,789,332.13 1,572,404,918.21
of parent company
2. * Minority interest income -18,131,885.85 -14,098,467.91
VI. Net of tax of other comprehensive
income
Net amount of other comprehensive
income after tax attributed to parent
company owners
(I) Other comprehensive income that can't
be reclassified into profit and loss
1. Remeasure the variation of net
indebtedness or net asset of defined
benefit plan
2. Other comprehensive income that can't
be reclassified into profit and loss in
the invested enterprise under equity
method
3. Fair value change of other equity
instrument investments
4. Fair value change of enterprise credit
risks
5. Other
(II) Other comprehensive income that will
60
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
be reclassified into profit and loss
1. Other comprehensive income that will
be reclassified into profit and loss in
the invested enterprise under equity
method
2. Fair value change of other debt
investments
3. Amount of financial assets reclassified
into other comprehensive income
4. Provision for credit impairment of
other debt investments
5. Cash flow hedging reserve
6. Balance arising from the translation of
foreign currency financial statements
7. Other
Net amount of other comprehensive
income after tax attributed to minority
shareholders
VII. Total comprehensive income 1,714,657,446.28 1,558,306,450.30
Total comprehensive income attributed
1,732,789,332.13 1,572,404,918.21
to parent company owners
Total comprehensive income belonging
-18,131,885.85 -14,098,467.91
to minority shareholders
VIII. Earnings Per Share
(I) Basic EPS 1.83 1.67
(II) Diluted EPS 1.83 1.67
In case of business combination involving enterprises under common control in current period, the net profits achieved by the
merged party before combination were RMB 0.00 and achieved by the merged party in previous period were RMB 0.00.
Legal representative: Ren Jianhua Head of accounting work: Zhang Guofu Head of accounting body: Zhang Guofu
4. Income statement of parent company
Unit: yuan
Item Year 2023 Year 2022
I. I. Operating income 10,193,069,154.46 9,524,550,185.59
Minus: Operating costs 5,238,879,913.20 4,901,492,041.67
Taxes and surcharges 85,142,081.03 69,828,676.76
Selling expenses 2,383,042,375.37 2,218,801,283.55
Management costs 343,719,928.86 304,689,831.15
Research and development
378,521,686.25 376,891,023.54
expenses
Financial expenses -191,174,106.65 -156,113,652.92
Including: interest
4,712,177.65 8,322,009.99
expenditure
Interest revenue 195,758,915.10 158,191,509.22
Plus: other incomes 162,403,507.36 131,366,920.67
Income from investment (loss expressed
83,122,617.59 107,771,898.15
with "-")
Including: Income from investment of
71,218.69 -514,676.57
joint venture and cooperative enterprise
Income from derecognition of financial
assets measured at amortized cost (loss
expressed with “-")
Net exposure hedging gain (loss
expressed with "-")
Income from fair value changes (loss
61
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Item Year 2023 Year 2022
expressed with "-")
Credit impairment losses (loss expressed
-81,329,927.58 -165,304,249.28
with "-")
Assets impairment losses (loss expressed
-22,002,511.90 -4,982,572.64
with "-")
Income from disposal of assets (loss
-1,303,213.39 -157,339.21
expressed with "-")
II. Operating profits (loss expressed with "-
2,095,827,748.48 1,877,655,639.53
")
Plus: Non-operating income 3,523,977.82 3,023,087.48
Minus: non-operating expenditure 5,908,300.05 4,201,871.53
III. Total profits (total loss expressed with
2,093,443,426.25 1,876,476,855.48
"-")
Minus: Income tax expenses 267,153,435.77 219,250,083.01
IV. Net profits (net loss expressed with "-
1,826,289,990.48 1,657,226,772.47
")
(I) Net profits from going concern (net loss
1,826,289,990.48 1,657,226,772.47
expressed with "-")
(II) Net profits from discontinuing
operation (net loss expressed with "-")
V. Net of tax of other comprehensive
income
(I) Other comprehensive income that can't
be reclassified into profit and loss
1. Remeasure the variation of net
indebtedness or net asset of defined
benefit plan
2. Other comprehensive income that can't
be reclassified into profit and loss in
the invested enterprise under equity
method
3. Fair value change of other equity
instrument investments
4. Fair value change of enterprise credit
risks
5. Other
(II) Other comprehensive income that will
be reclassified into profit and loss
1. Other comprehensive income that will
be reclassified into profit and loss in
the invested enterprise under equity
method
2. Fair value change of other debt
investments
3. Amount of financial assets reclassified
into other comprehensive income
4. Provision for credit impairment of
other debt investments
5. Cash flow hedging reserve
6. Balance arising from the translation of
foreign currency financial statements
7. Other
VI. Total comprehensive income 1,826,289,990.48 1,657,226,772.47
VII. Earnings Per Share
(I) Basic EPS
(II) Diluted EPS
62
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
5. Consolidated Statement of Cash Flow
Unit: yuan
Item Year 2023 Year 2022
I. Cash flow from operating activities:
Cash from selling commodities or
12,266,993,968.64 11,217,554,991.80
offering labor
Net increase of customer deposit and
deposit from other banks
Net increase of borrowings from central
bank
Net increase of borrowing funds from
other financial institutions
Cash from obtaining original insurance
contract premium
Cash received from insurance premium
of original insurance contract
Net increase of deposit and investment of
insured
Cash from interest, handling charges and
commissions
Net increase of borrowing funds
Net increase of repurchase of business
funds
Net cash from acting trading securities
Refund of tax and levies 46,868,485.73 52,622,361.53
Other cash received related to operating
272,254,801.18 302,574,783.30
activities
Subtotal cash inflows from operating
12,586,117,255.55 11,572,752,136.63
activities
Cash paid for selling commodities or
5,268,131,276.52 5,130,311,485.16
offering labor
Net increase of customer loans and
advances
Net increase of amount due from central
bank and interbank
Cash paid for original insurance contract
claims payment
Net increase of lending funds
Cash paid for interest, handling charges
and commissions
Cash paid for policy dividend
Cash paid to and for employees 1,048,926,471.94 1,014,928,118.78
Taxes and fees paid 971,661,528.13 924,067,905.31
Other cash paid related to operating
2,905,476,166.25 2,558,658,323.36
activities
Subtotal cash outflows from operating
10,194,195,442.84 9,627,965,832.61
activities
Net cash flow from operating activities 2,391,921,812.71 1,944,786,304.02
II. Cash flow from investment activities:
Cash from investment withdrawal 2,314,144,508.00 2,935,774,392.00
Cash from investment income 83,300,616.60 101,112,262.32
Net cash from disposal of fixed assets,
intangible assets and other long-term 830,542.67 1,144,292.90
assets
Net cash received from the disposal of
subsidiaries and other business entities
63
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Item Year 2023 Year 2022
Other cash received related to investment
activities
Subtotal cash inflows from investment
2,398,275,667.27 3,038,030,947.22
activities
Cash paid for the purchase and
construction of fixed assets, intangible 327,437,806.87 502,585,886.40
assets and other long term assets
Cash paid for investment 3,012,300,000.00 2,579,500,000.00
Net cash received from reinsurance
business
Net cash paid for obtaining subsidiaries
and other business units
Other cash paid related to investment
4,333,744,300.00
activities
Subtotal cash outflows from investment
7,673,482,106.87 3,082,085,886.40
activities
Net cash flow from investment activities -5,275,206,439.60 -44,054,939.18
III. Cash flow from financing activities:
Receipts from equity securities 2,750,000.00 11,000,000.00
Including: Cash received from subsidies'
absorption of minority shareholders' 2,750,000.00 11,000,000.00
investment
Cash received from borrowings 76,000,000.00 54,650,000.00
Other cash received related to financing
13,510,296.65 1,012,732.06
activities
Subtotal cash inflows from financing
92,260,296.65 66,662,732.06
activities
Cash repayments of amounts borrowed 46,150,000.00 3,500,000.00
Cash paid for distribution of dividends or
474,928,024.93 482,408,349.01
profits and for interest expenses
Including: Dividends and profits paid by
9,800,000.00
subsidiaries to minority shareholders
Other cash paid related to financing
7,123,465.99 10,759,837.34
activities
Subtotal cash outflows from financing
528,201,490.92 496,668,186.35
activities
Net cash flow from financing activities -435,941,194.27 -430,005,454.29
IV. Impact of exchange rate movements on
977,837.51 5,699,610.84
cash and cash equivalents
V. Net increase of cash and cash
-3,318,247,983.65 1,476,425,521.39
equivalents
Plus: Balance of cash and cash
5,196,414,341.74 3,719,988,820.35
equivalents at the beginning of the period
VI. Balance of cash and cash equivalents at
1,878,166,358.09 5,196,414,341.74
the beginning of the period
6. Cash flow statement of parent company
Unit: yuan
Item Year 2023 Year 2022
I. Cash flow from operating activities:
Cash from selling commodities or
11,177,115,048.54 10,511,492,286.98
offering labor
Refund of tax and levies 45,894,461.03 45,959,892.74
Other cash received related to operating
243,673,487.58 244,654,467.09
activities
64
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Item Year 2023 Year 2022
Subtotal cash inflows from operating
11,466,682,997.15 10,802,106,646.81
activities
Cash paid for selling commodities or
4,964,239,535.47 4,928,332,766.89
offering labor
Cash paid to and for employees 773,324,582.87 741,560,434.55
Taxes and fees paid 873,573,314.72 851,796,665.44
Other cash paid related to operating
2,411,772,941.62 2,277,803,150.69
activities
Subtotal cash outflows from operating
9,022,910,374.68 8,799,493,017.57
activities
Net cash flow from operating activities 2,443,772,622.47 2,002,613,629.24
II. Cash flow from investment activities:
Cash from investment withdrawal 2,300,000,000.00 2,800,000,000.00
Cash from investment income 93,285,361.16 99,306,676.81
Net cash from disposal of fixed assets,
intangible assets and other long-term 612,252.00 620,992.90
assets
Net cash received from the disposal of
subsidiaries and other business entities
Other cash received related to investment
activities
Subtotal cash inflows from investment
2,393,897,613.16 2,899,927,669.71
activities
Cash paid for the purchase and
construction of fixed assets, intangible 284,465,179.85 448,805,021.56
assets and other long term assets
Cash paid for investment 3,013,588,900.00 2,510,000,000.00
Net cash paid for obtaining subsidiaries
and other business units
Other cash paid related to investment
4,333,744,300.00
activities
Subtotal cash outflows from investment
7,631,798,379.85 2,958,805,021.56
activities
Net cash flow from investment activities -5,237,900,766.69 -58,877,351.85
III. Cash flow from financing activities:
Receipts from equity securities
Cash received from borrowings
Other cash received related to financing
13,510,296.65 1,012,732.06
activities
Subtotal cash inflows from financing
13,510,296.65 1,012,732.06
activities
Cash repayments of amounts borrowed
Cash paid for distribution of dividends or
472,047,458.00 472,047,458.00
profits and for interest expenses
Other cash paid related to financing
4,030,091.57
activities
Subtotal cash outflows from financing
472,047,458.00 476,077,549.57
activities
Net cash flow from financing activities -458,537,161.35 -475,064,817.51
IV. Impact of exchange rate movements on
977,837.51 5,699,610.84
cash and cash equivalents
V. Net increase of cash and cash
-3,251,687,468.06 1,474,371,070.72
equivalents
Plus: Balance of cash and cash
4,978,704,981.15 3,504,333,910.43
equivalents at the beginning of the period
65
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Item Year 2023 Year 2022
VI. Balance of cash and cash equivalents at
1,727,017,513.09 4,978,704,981.15
the beginning of the period
7. Consolidated statement of change in equity
Current amount
Unit: yuan
Year 2023
Owners' equities attributable to the owners of parent company
Item Other equity instruments Other General
Minus: Surplus Minority Total owners'
Share Preferr Capital compre Special risk Undistribut Oth equity equities
Perpetu treasury reserve Subtotal
capital ed Other reserve hensive reserve prepara ed profit er
al bond stock s
stock income tion
-
I. Ending balance in 949,024, 409,997 199,995 474,516 8,199,079,0 9,732,46 125,789,2
100,157 9,858,252,969.01
previous year 050.00 ,665.58 ,742.59 ,412.50 15.58 3,766.91 02.10
,634.16
Plus: Changes in
accounting policies
Prior period error
correction
Other
-
II. Beginning balance 949,024, 409,997 199,995 474,516 8,199,079,0 9,732,46 125,789,2
100,157 9,858,252,969.01
in current year 050.00 ,665.58 ,742.59 ,412.50 15.58 3,766.91 02.10
,634.16
III. Increase/decrease
in the current period -
1,780,5 788,694,41 790,474,
(less to be filled out 18,131,88 772,343,078.92
48.64 6.13 964.77
with the minus sign 5.85
"-")
(I) Total -
1,732,789,3 1,732,78
comprehensive 18,131,88 1,714,657,446.28
32.13 9,332.13
income 5.85
(II) Owner's invested 1,780,5 1,780,54
1,780,548.64
and decreased capital 48.64 8.64
1. Common share
invested by the
owner
2. Capital invested
by other equity
instrument
holders
3. Amount of
share-based
1,780,5 1,780,54
payment 1,780,548.64
48.64 8.64
included in the
owner's equity
4. Other
- -
(III) Profit
944,094,91 944,094, -944,094,916.00
distribution
6.00 916.00
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
preparation
3. Distribution of - -
owners (or 944,094,91 944,094, -944,094,916.00
shareholders) 6.00 916.00
4. Other
(IV) Internal transfer
of owner's equity
1. Capital surplus
transfer to paid-
in capital (or
share capital)
2. Earned surplus
transfer to paid-
in capital (or
66
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Year 2023
Owners' equities attributable to the owners of parent company
Item Other equity instruments Other General
Minus: Surplus Minority Total owners'
Share Preferr Capital compre Special risk Undistribut Oth equity equities
Perpetu treasury reserve Subtotal
capital ed Other reserve hensive reserve prepara ed profit er
al bond stock s
stock income tion
share capital)
3. Earned surplus
covering the
deficit
4. Carryforward
retained earnings
in variation of
defined benefit
plan
5. Carryforward
retained earnings
of other
comprehensive
income
6. Other
(V) Special reserve
1. Draw in this
current
2. Use in this
current
(VI) Other
- 10,522,9
IV. Balance at the 949,024, 411,778 199,995 474,516 8,987,773,4 107,657,3
100,157 38,731.6 10,630,596,047.93
end of current period 050.00 ,214.22 ,742.59 ,412.50 31.71 16.25
,634.16 8
Last term amount
Unit: yuan
Year 2022
Owners' equities attributable to the owners of parent company
Item Other equity instruments Other General Minorit
Minus: Surplus Undistr Total owners' equities
Share Capital compre Special risk Subtota y equity
Preferre Perpetu treasury reserve ibuted Other
capital Other reserve hensive reserve prepara l
d stock al bond stock s profit
income tion
- 7,098,7 8,627,0
I. Ending balance in 949,024 404,918 199,995 474,516 139,031
100,157 21,555. 26,739. 8,766,058,516.23
previous year ,050.00 ,098.15 ,742.59 ,412.50 ,776.96
,634.16 37 27
Plus: Changes in
accounting policies
Prior period error
correction
Other
II. Beginning - 7,098,7 8,627,0
949,024 404,918 199,995 474,516 139,031
balance in current 100,157 21,555. 26,739. 8,766,058,516.23
,050.00 ,098.15 ,742.59 ,412.50 ,776.96
year ,634.16 37 27
III. Increase/decreas
e in the current 1,100,3 1,105,4 -
5,079,5
period (less to be 57,460. 37,027. 13,242, 1,092,194,452.78
67.43
filled out with the 21 64 574.86
minus sign "-")
(I) Total 1,572,4 1,572,4 -
comprehensive 04,918. 04,918. 14,098, 1,558,306,450.30
income 21 21 467.91
(II) Owner's invested 5,079,5 5,079,5 10,655,
15,735,460.48
and decreased capital 67.43 67.43 893.05
1. Common share
344,106 344,106 10,655,
invested by the 11,000,000.00
.95 .95 893.05
owner
2. Capital invested
by other equity
instrument
holders
3. Amount of 4,735,4 4,735,4
4,735,460.48
share-based 60.48 60.48
67
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Year 2022
Owners' equities attributable to the owners of parent company
Item Other equity instruments Other General Minorit
Minus: Surplus Undistr Total owners' equities
Share Capital compre Special risk Subtota y equity
Preferre Perpetu treasury reserve ibuted Other
capital Other reserve hensive reserve prepara l
d stock al bond stock s profit
income tion
payment
included in the
owner's equity
4. Other
- - -
(III) Profit
472,047 472,047 9,800,0 -481,847,458.00
distribution
,458.00 ,458.00 00.00
1. Withdrawal of
surplus reserves
2. Withdrawal of
general risk
preparation
3. Distribution of - - -
owners (or 472,047 472,047 9,800,0 -481,847,458.00
shareholders) ,458.00 ,458.00 00.00
4. Other
(IV) Internal transfer
of owner's equity
1. Capital surplus
transfer to paid-
in capital (or
share capital)
2. Earned surplus
transfer to paid-
in capital (or
share capital)
3. Earned surplus
covering the
deficit
4. Carryforward
retained
earnings in
variation of
defined benefit
plan
5. Carryforward
retained
earnings of
other
comprehensive
income
6. Other
(V) Special reserve
1. Draw in this
current
2. Use in this
current
(VI) Other
- 8,199,0 9,732,4
IV. Balance at the 949,024 409,997 199,995 474,516 125,789
100,157 79,015. 63,766. 9,858,252,969.01
end of current period ,050.00 ,665.58 ,742.59 ,412.50 ,202.10
,634.16 58 91
8. Statement of change in equity of parent company
Current amount
Unit: yuan
Year 2023
Other equity instruments Minus: Other
Item Share Capital Special Surplus Undistribut
Preferred Perpetual treasury comprehen Other Total owners' equities
capital Other reserve reserve reserves ed profit
stock bond stock sive income
-
I. Ending balance in 949,024,05 409,608,57 199,995,74 474,516,41 8,156,489,1
100,157,63 9,689,484,811.86
previous year 0.00 5.62 2.59 2.50 50.49
4.16
Plus: Changes in
accounting policies
68
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Year 2023
Other equity instruments Minus: Other
Item Share Capital Special Surplus Undistribut
Preferred Perpetual treasury comprehen Other Total owners' equities
capital Other reserve reserve reserves ed profit
stock bond stock sive income
Prior period error
correction
Other
-
II. Beginning balance in 949,024,05 409,608,57 199,995,74 474,516,41 8,156,489,1
100,157,63 9,689,484,811.86
current year 0.00 5.62 2.59 2.50 50.49
4.16
III. Increase/decrease in the
current period (less to be 1,780,548.6 882,195,07
883,975,623.12
filled out with the minus 4 4.48
sign "-")
(I) Total comprehensive 1,826,289,9
1,826,289,990.48
income 90.48
(II) Owner's invested and 1,780,548.6
1,780,548.64
decreased capital 4
1. Common share
invested by the owner
2. Capital invested by
other equity
instrument holders
3. Amount of share-
based payment 1,780,548.6
1,780,548.64
included in the 4
owner's equity
4. Other
-
(III) Profit distribution 944,094,91 -944,094,916.00
6.00
1. Withdrawal of
surplus reserves
2. Distribution of -
owners (or 944,094,91 -944,094,916.00
shareholders) 6.00
3. Other
(IV) Internal transfer of
owner's equity
1. Capital surplus
transfer to paid-in
capital (or share
capital)
2. Earned surplus
transfer to paid-in
capital (or share
capital)
3. Earned surplus
covering the deficit
4. Carryforward retained
earnings in variation
of defined benefit
plan
5. Carryforward retained
earnings of other
comprehensive
income
6. Other
(V) Special reserve
1. Draw in this current
2. Use in this current
(VI) Other
-
IV. Balance at the end of 949,024,05 411,389,12 199,995,74 474,516,41 9,038,684,2
100,157,63 10,573,460,434.98
current period 0.00 4.26 2.59 2.50 24.97
4.16
Last term amount
Unit: yuan
Year 2022
Other equity instruments Minus: Other
Item Share Capital Special Surplus Undistribut
Preferred Perpetual treasury comprehen Other Total owners' equities
capital Other reserve reserve reserves ed profit
stock bond stock sive income
-
I. Ending balance in 949,024,05 404,873,11 199,995,74 474,516,41 6,971,309,8
100,157,63 8,499,570,036.91
previous year 0.00 5.14 2.59 2.50 36.02
4.16
Plus: Changes in
accounting policies
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Year 2022
Other equity instruments Minus: Other
Item Share Capital Special Surplus Undistribut
Preferred Perpetual treasury comprehen Other Total owners' equities
capital Other reserve reserve reserves ed profit
stock bond stock sive income
Prior period error
correction
Other
-
II. Beginning balance in 949,024,05 404,873,11 199,995,74 474,516,41 6,971,309,8
100,157,63 8,499,570,036.91
current year 0.00 5.14 2.59 2.50 36.02
4.16
III. Increase/decrease in
the current period (less to 4,735,460.4 1,185,179,3
1,189,914,774.95
be filled out with the 8 14.47
minus sign "-")
(I) Total comprehensive 1,657,226,7
1,657,226,772.47
income 72.47
(II) Owner's invested and 4,735,460.4
4,735,460.48
decreased capital 8
1. Common share
invested by the
owner
2. Capital invested by
other equity
instrument holders
3. Amount of share-
based payment 4,735,460.4
4,735,460.48
included in the 8
owner's equity
4. Other
-
(III) Profit distribution 472,047,45 -472,047,458.00
8.00
1. Withdrawal of
surplus reserves
2. Distribution of -
owners (or 472,047,45 -472,047,458.00
shareholders) 8.00
3. Other
(IV) Internal transfer of
owner's equity
1. Capital surplus
transfer to paid-in
capital (or share
capital)
2. Earned surplus
transfer to paid-in
capital (or share
capital)
3. Earned surplus
covering the deficit
4. Carryforward
retained earnings in
variation of defined
benefit plan
5. Carryforward
retained earnings of
other comprehensive
income
6. Other
(V) Special reserve
1. Draw in this current
2. Use in this current
(VI) Other
-
IV. Balance at the end of 949,024,05 409,608,57 199,995,74 474,516,41 8,156,489,1
100,157,63 9,689,484,811.86
current period 0.00 5.62 2.59 2.50 50.49
4.16
III. Basic status of company
Hangzhou ROBAM Appliances Co., Ltd. (ROBAM or the Company) is a limited liability company established by Hangzhou
ROBAM Home Appliances & Kitchen Sanitary Co., Ltd. by means of overall change on November 7, 2000. Approved by China
Securities Regulatory Commission (ZJXK [2010] No.1512) in 2010, the Company issued 40 million RMB common shares to the
public for the first time on November 23, 2010, with a par value of RMB 1 per share and an issue price of RMB 24.00 and the
stock code of 002508.
As of December 31, 2023, the total share capital of the Company was 949,024,050 shares, and the registered capital was RMB
949,024,050. Unified social credit code: 91330000725252053F, legal representative: Ren Jianhua; registered address: No.592,
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Linping Av., Yuhang Economic Development Zone, Yuhang District, Hangzhou City; headquarters office address: No.592,
Linping Av., Yuhang Economic Development Zone, Yuhang District, Hangzhou City. RMB-denominated common shares (A
shares) issued by the Company have been listed in the Shenzhen Stock Exchange.
Business scope: general items: Home appliance manufacturing; Research and development of kitchenware, sanitary ware and daily
necessities; Wholesale of kitchenware, sanitary ware and daily necessities; Sales of daily glass products; Sales of home appliances;
Home appliance installation services; Research and development of home appliances; Sales of household supplies; Sales of daily
necessities; Manufacturing of daily wooden products; Retail of household appliances; Repair of home appliances; Sales of electric
heating food processing equipment; Wholesale of daily necessities; Technical services, development, consultation, exchange,
transfer, and promotion; Sales of non-electric home appliances; Manufacturing of non-electric home appliances; Production of gas
appliances; Sales of refrigeration and air conditioning equipment; Manufacturing of refrigeration and air conditioning equipment;
Development of basic artificial intelligence software; Manufacturing of smart home consumer equipment; Sales of artificial
intelligence hardware; Manufacturing of special equipment for business, catering and services; Sales of special equipment for
business, catering and services; Import and export of goods; Manufacturing of special equipment for environmental protection;
Sales of special equipment for environmental protection (except for items subject to approval according to law, subject to activities
shall be carried out independently with the business license according to law). License items: production of disinfection equipment;
production of electric heating food processing equipment (Items subject to approval according to the law can only be carried out
after getting the approval of relevant departments. Specific operating projects are subject to the approval results of relevant
departments).
The Company is mainly engaged in the development, production, sales and comprehensive services of kitchen appliances in the
manufacturing industry. Its main products include range hood, gas hob, sterilizer, steamer, oven, dishwasher, water purifier,
microwave, integrated stove and purification tank.
The scope of the Company's consolidated financial statements includes 10 subsidiaries: Beijing ROBAM Electric Appliance Sales
Co., Ltd., Shanghai ROBAM Electric Appliance Sales Co., Ltd., Hangzhou Mingqi Electric Co., Ltd., Dize Home
AppliancesTrading (Shanghai) Co., Ltd., Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd., Hangzhou ROBAM Fuchuang
Investment Management Co., Ltd., Zhejiang Cooking Future Technology Co., Ltd. Hangzhou Jinhe Electric Appliances Co., Ltd.,
ROBAM Appliances (Hong Kong) Holdings Limited and ROBAM International (Hong Kong) Trading Co., Ltd. Compared with
the previous year, the consolidation scope of the Company was expanded due to the establishment of ROBAM Appliances (Hong
Kong) Holdings Limited and ROBAM International (Hong Kong) Trading Co., Ltd.
IV. Preparation Basis of Financial Statements
1. Preparation basis
The Company's financial statement is prepared based on actual transactions and matters, according to relevant regulations of the
Accounting Standards for Business Enterprises issued by the Ministry of Finance and its application guidelines, interpretations and
other relevant provisions (hereinafter collectively referred to as "Accounting Standards for Business Enterprises"), the No.15 of
Compilation Rules for Information Disclosure by Companies Offering Securities to the Public - General Provisions of Financial
Reports (revised in 2023) issued by China Securities Regulatory Commission, and the accounting policies and accounting
estimates set forth in Note "IV. Significant accounting policy and accounting estimate".
2. Going concern
The Company has evaluated its ability to continue as a going concern for the 12 months from December 31, 2023, and has not
found any matters and circumstances that may raise significant doubt on its ability to continue as a going concern. These financial
statements are presented on the basis of going concern assumption.
V. Significant Accounting Policy and Accounting Estimate
Specific accounting policy and accounting estimate:
The specific accounting policies and accounting estimates formulated by the Company according to the actual production and
operation characteristics include the operating cycle, the recognition and measurement of bad debt provision of receivables, the
measurement of issued inventory, the classification and depreciation of fixed assets, the amortization of intangible assets, the
capitalization conditions of R&D expenses, the income recognition and measurement, etc.
1. Statement on complying with Accounting Standards for Business Enterprises
The Company's financial statements comply with the requirements of the Accounting Standards for Business Enterprises and truly,
accurately and completely reflect the Company's financial position as of December 31, 2023, the business performance, cash flows
and other relevant information for the year 2023.
2. Accounting period
The fiscal year of the Company runs from January 1 to December 31 of each calendar year.
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
3. Operating cycle
The Company's normal operating cycle is one year (12 months).
4. Accounting standard money
The bookkeeping currency of the Company is RMB.
5. Importance criteria determination method and selection basis
Applicable □ Not applicable
Item Importance criteria
Important receivables for which provision for bad debts have
The amount of a single item exceeds RMB 10 million
been separately made
The important items with amount of bad debt provision for
The amount of a single item exceeds RMB 5 million
receivables recovered or transferred back
Important accounts receivable write off/debt investment write
The amount of a single item exceeds RMB 5 million
off/other debt investment write off in the current period
Important accounts payable with the aging more than 1 year The amount of a single item exceeds RMB 5 million
Important contract liabilities with the aging more than 1 year The amount of a single item exceeds RMB 10 million
Important other payables with the aging more than 1 year The amount of a single item exceeds RMB 5 million
Increase or decrease in a single item during the year or the
Important projects under construction
closing book value exceeds RMB 20 million
Important investment activities The amount of a single investment exceeds RMB 50 million
The cost of investment in a single company is more than RMB 50
Important non-wholly-owned subsidiaries/cooperative enterprises
million; The income, net profit, net assets and total assets of a
and joint ventures, and important overseas business entities
single entity account for more than 5% of the related items in the
included in the scope of merger
consolidated statements.
6. Accounting process method of business combination involving enterprises under and not under
common control
The assets and liabilities acquired by the Company as the combining party through business combination under common control
are measured on the combination date according to the book value of the combined party in the consolidated statements of the
final controlling party. The difference between the book value of the net assets obtained and the consideration paid for the
combination is adjusted against capital reserve; if the capital reserve is not sufficient to absorb the difference, the retained earnings
shall be adjusted.
The acquiree's identifiable assets, liabilities and contingent liabilities acquired through business combination not under common
control are measured at fair value on the acquisition date. The combined cost is the fair value of the cash or non-cash assets paid,
liabilities incurred or assumed and equity securities issued by the acquirer on the acquiring date for acquisition of the control right
of the acquiree, as well as the sum of direct costs for the business combination (for the business combination realized by steps
through several times, the combined cost is the sum of the costs of each transaction). Where the combined cost exceeds the
acquirer's interest in the fair value of the acquiree's net identifiable assets, the difference is recognized as goodwill; where the
combined cost is less than the acquirer's interest in the fair value of the acquiree's net identifiable assets, the acquirer first
reassesses the fair values of the acquiree's identifiable assets, liabilities and contingent liabilities in combination and the fair values
of non-cash assets or equity securities issued for consolidation consideration. If after reassessment, the combined cost is still less
than the acquirer's interest in the fair value of the acquiree's net identifiable assets, the difference is included in the current non-
operating income.
7. Criteria for determining a control and methods for preparing consolidated financial statements
The Company includes all subsidiaries under its control in the consolidated financial statements.
The scope of consolidation in the consolidated financial statements of the Company is determined on the basis of control, and
includes the Company and all subsidiaries controlled by the Company. The Group believes that control means that the Company
has the power over the invested entity, enjoys variable returns by participating in the relevant activities of the invested entity, and
has the ability to use the power to influence the amount of returns.
In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company and
subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies
and the accounting period of the Company.
All significant internal transactions, current balances and unrealized profits in the consolidation scope shall be set off when the
consolidated statements are prepared. The share of the owner's equity of the subsidiaries not attributable to the parent company and
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
current net profits and losses, other comprehensive income, and the share of other comprehensive income attributable to the
minority interests shall be presented in the consolidated financial statements under "minority equity, minority interest income,
other comprehensive income attributed to minority shareholders and total comprehensive income attributed to minority
shareholders".
For a subsidiary in the business combination under common control, its business performance and cash flows have been
consolidated since the beginning of the consolidation year into the consolidated financial statements. When preparing and
comparing the consolidated financial statements, the Company shall adjust the relevant items of the previous year's financial
statements, which shall be regarded as the subject of the consolidated report that has been in existence since the beginning of the
control by the final controlling party.
For a subsidiary in the business combination not under common control, its business performance and cash flows shall be
incorporated into the consolidated financial statements from the date of the Company's acquisition of control. In preparing the
consolidated financial statements, the financial statements of the subsidiary shall be adjusted on the basis of the fair values of the
identifiable assets, liabilities and contingent liabilities as determined on the acquiring date.
If the Company acquires the equity of the acquiree by steps through several deals and finally forms business combination not
under common control, in the compilation of the consolidated statements, as for the equity interests held in the acquiree before the
acquiring date, they shall be re-measured according to their fair values at the acquiring date; the difference between their fair
values and book value shall be recorded into the investment gains for the period including the acquiring date. Other related
comprehensive gains in relation to the equity interests held in the acquiree under the equity accounting before the acquiring date,
and the changes in owners' equity other than net profit and loss, other comprehensive income and profit distribution shall be
carried forward into profit and loss on investments in the period of the acquiring date, except for other comprehensive income
from the change caused by the remeasurement of the net liabilities or net assets of the defined benefit plan by the investee.
In consolidated financial statements, when the Company disposes of part of long-term equity investment in the subsidiary before
losing control rights, the difference between the disposal price and the long-term equity investment disposed of relative to the
share of the net assets to be enjoyed and continuously calculated from the acquiring date or combination date is adjusted against
capital premium or capital stock premium; if the capital stock premium is not sufficient to absorb the difference, the retained
earnings shall be adjusted.
When the Company loses the control right over the investee due to disposal of part of the equity investment or other reasons, the
residual equity shall be re-measured at its fair value on the date of losing the control right in preparing the consolidated financial
statements. The difference between the sum of the consideration acquired by disposal of the equity and the fair value of the
residual equity, and the share of the net assets of the original subsidiary continuously calculated from the acquiring day or
combination date according to the original shareholding ratio, shall be included in the profit and loss on investments in the period
of lose of the control right and written down against the goodwill. Other comprehensive income related to the equity investment of
the original subsidiary is transferred into the current profit and loss on investments in the period of loss of control right.
8. Joint venture arrangements classification and Co-operation accounting treatment
The Company's joint venture arrangements include cooperative enterprises. Joint venture means the joint venture arrangement in
which the joint venture party has rights only to the net assets of the arrangement.
The investment in the cooperative enterprise is subject to the accounting treatment by the Company as the joint venture party
according to the Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investments.
9. Determining standards of cash and cash equivalents
The cash in the cash flow statement of the Company refers to the cash on hand and deposits readily available for payment. The
cash equivalents represent the short-term (no more than three months) and highly liquid investments that are readily convertible
into known amounts of cash and that are subject to an insignificant risk of change in value.
10. Foreign currency transaction and foreign currency statement translation
Foreign currency transaction:
The foreign currency transaction of the Company is converted to Renminbi at the spot rate on the transaction date. The foreign
currency project, on the balance sheet date, is converted to Renminbi at the spot rate. The resulting converted difference is
included in current profit and loss except the balance of exchange of special foreign currency loan related to acquisition or
construction of assets meeting the capitalization conditions. Non-monetary items in foreign currency measured at fair value are
converted by the spot rate on the recognition date of the fair value. The difference between the bookkeeping currency amount after
conversion and the original bookkeeping currency amount is recorded into the capital reserve if belonging to non-monetary items
in foreign currency of available-for-sale financial assets, or recorded into current profit and loss if belonging to non-monetary
items in foreign currency measured at fair value and with the changes included in current profit and loss. Non-monetary items in
foreign currency measured by the historical cost are still converted by the spot rate on the transaction date without changing the
RMB amount.
Conversion of financial statements denominated in foreign currencies:
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
The assets and liabilities in the balance sheet of a foreign operation are converted at the spot rate on the balance sheet date; all
items of owner's equity, except the "undistributed profit", are converted at the spot rate at the time of occurrence. The income and
expense items in the income statement of a foreign operation are converted at the approximate exchange rate of the spot rate on the
date of transaction. The converted difference of the foreign currency financial statements generated according to the above
translation shall be presented in other comprehensive income. For a foreign currency monetary item which constitutes a net
investment in overseas operations, the exchange difference resulting from the change of exchange rate shall be presented as other
comprehensive income in the compilation of the consolidated financial statements. Upon disposal of an overseas operation, other
comprehensive income related to the overseas operation shall be transferred to the current profit and loss according to the
proportion.
The approximate exchange rate of the spot exchange rate on the date of the cash flows shall be based on for the translation of cash
flows in a foreign currency and in an overseas subsidiary. The effect of a change in exchange rate on cash shall be separately
presented in the cash flow statement.
11. Financial instruments
The Company recognizes a financial asset or financial liability when becoming a party of the financial instrument contract.
1. Financial assets
Classification, recognition basis and measurement method for financial assets
According to the business model of managing financial assets and the contractual cash flow characteristics of financial assets, the
financial assets of the Company are classified into: financial assets measured at the amortized cost; financial assets measured at
fair value of which changes are recorded into other comprehensive income; financial assets at fair value through profit or loss
("FVTPL").
The financial asset of the Company that meets the following conditions simultaneously is classified as financial asset measured at
the amortized cost: ① The business model for managing the financial asset is to collect contractual cash flows. ② According to
the contract terms of the financial asset, the cash flow generated on a specific date is only for the payment of the principal and the
interest based on the outstanding principal amount. Such financial asset is initially measured at the fair value and the relevant
transaction costs are charged to initially recognized amount; further measurement is made at the amortized cost. With the
exception of the hedged item designated as such, the difference between the initial amount and the amount due shall be amortized
in accordance with the effective interest method, and the gains and losses arising from the amortization, impairment, exchange
gains and losses and the derecognition shall be recorded into the current profit and loss.
The financial asset of the Company that meets the following conditions simultaneously is classified as the financial asset measured
at fair value of which changes are recorded into other comprehensive income: ① The business model for managing such financial
assets is to collect contractual cash flows and to sell the financial asset. ② According to the contract terms of the financial asset,
the cash flow generated on a specific date is only for the payment of the principal and the interest based on the outstanding
principal amount. Such financial asset is initially measured at the fair value and the relevant transaction costs are charged to
initially recognized amount. With the exception of the hedged item designated as such, the other gains or losses incurred from such
financial asset, except for credit impairment losses or gains, exchange gains and losses and interest on the financial asset
calculated by effective interest method, shall be included in other comprehensive income; when the financial asset is derecognized,
the accumulated gains or losses previously recorded in other comprehensive income should be transferred from other
comprehensive income in current profit and loss.
The Company recognizes interest income by effective interest method. The interest income is determined by multiplying the book
balance of a financial asset by the effective interest rate, except as follows: ① For an acquired or originated financial asset with
credit impairment, the interest income shall be determined according to the amortized cost of the financial asset and the effective
interest rate adjusted by credit from the initial recognition. ② For an acquired or originated financial asset with credit impairment,
but which has credit impairment in the subsequent period, the interest income of the financial asset shall be determined according
to the amortized cost and the effective interest rate of the financial asset in the subsequent period.
The Company designates the non-transactional equity instruments as the financial assets measured at fair value of which changes
are recorded into other comprehensive income. Such designation, once made, shall not be revoked. The non-transactional equity
instruments measured at fair value of which changes are recorded into other comprehensive income are initially measured at the
fair value and the relevant transaction costs are charged to initially recognized amount; except for the dividends (excluding the part
of investment cost recovery) recorded into the current profit and loss, other related gains and losses (including exchange gains and
losses) are recorded into other comprehensive income and shall not be transferred into the current profit and loss subsequently.
Upon derecognition, the accumulated gains or losses previously recorded in other comprehensive income should be transferred
from other comprehensive income to the retained earnings.
The above financial assets measured at the amortized cost and the financial assets measured at fair value of which changes are
recorded into other comprehensive income are classified as financial assets at fair value through profit or loss ("FVTPL"). Such
financial asset is initially measured at the fair value and the relevant transaction costs are directly charged to the current profit and
loss. Gains or losses on such financial assets are charged to the current profit and loss.
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
The financial assets recognized by the Company through business combination not under common control or constituted by
contingent consideration are classified as financial assets at fair value through profit or loss ("FVTPL").
1. Recognition basis and measurement method for transfer of financial assets
The financial asset is derecognized when meeting any of the following conditions: ① The contract right to charge the cash flow of
the financial asset is terminated; ② The financial asset has been transferred and almost all risks and remuneration of the financial
asset ownership are transferred; ③ The financial asset has been transferred and the Company does neither transfer nor retain
almost all risks and remuneration of the financial asset ownership but gives up the control over the financial asset.
If the overall transfer of the financial asset meets the derecognition conditions, the difference of the book value of the transferred
financial asset from the sum of the consideration received and the derecognized amount in the cumulative amount of the fair value
changes originally included in other comprehensive income (according to the contract terms of the financial asset transferred, the
cash flow generated on a specific date is only for the payment of the principal and the interest based on the outstanding principal
amount) is charged to the current profit and loss.
If the partial transfer of the financial asset meets the derecognition conditions, the overall book value of the transferred financial
asset, between the derecognized part and non-derecognized part, is allocated according to the respective relative fair value. The
difference of the sum of the consideration received from transfer and the derecognized amount in the cumulative amount of the fair
value changes in the derecognized part originally included in other comprehensive income (according to the contract terms of the
financial asset transferred, the cash flow generated on a specific date is only for the payment of the principal and the interest based
on the outstanding principal amount) from the overall book value of the above-mentioned financial asset allocated is charged to
current profit and loss.
Financial liabilities
1. Classification, recognition basis and measurement method for financial liabilities
Financial liabilities, upon initial recognition, are divided into those measured with fair value and with the changes included in
current profit and loss and other financial liabilities.
Financial liabilities measured with fair value and with the changes included in current profit and loss, including the trading
financial liabilities and the financial liabilities measured with fair value and with the changes included in current profit and loss
upon initial recognition. The financial liability is subsequently measured with the fair value. The gain or loss formed from the
changes in the fair value as well as the dividends and interest expenditure related to the financial liability is charged to current
profit and loss.
The other financial liabilities are subsequently measured with the amortized cost by means of effective interest method. Except for
the following items, the financial assets are classified as the financial liabilities measured at amortized cost: ① Financial liabilities
measured with fair value and with the changes included in current profit and loss, including the trading financial liabilities
(including derivative instruments belonging to financial liabilities) and the financial liabilities measured with fair value and with
the changes included in current profit and loss. ② Financial liabilities formed by the transfer of financial assets not conforming to
the derecognition conditions or by continuing to involve in the transferred financial assets. ③ Financial guarantee contracts that do
not fall under the above ① or ② circumstances, and loan commitments to lend at a below-market rate that do not fall under the
above ① circumstance.
The financial liabilities recognized by the Company as the acquirer through business combination not under common control or
formed by contingent consideration are classified as financial liabilities at fair value through profit or loss for accounting.
2. Derecognition of financial liabilities
The Company derecognizes a financial liability (or part of it) only when the underlying present obligation (or part of it) is
discharged. An agreement between the Company and a creditor to replace the existing financial liability with a new one with
substantially different terms is accounted for as the derecognition of the existing financial liability and the recognition of a new
financial liability. When the Company makes material alteration to the contract terms of the existing financial liability (or part of
it), it derecognizes the existing financial liability (or part of it) and recognizes a new one according to the altered terms. The
difference between the book value of the derecognized part and the consideration paid is charged to current profit and loss.
3. Fair value determination method of financial assets and financial liabilities
The fair value of the financial assets and financial liabilities is measured by the Company at the prices in the principal market. If
no principal market exists, the fair value is measured at the most favorable market price by valuation techniques that are applicable
at the time and are supported by sufficient data and other information available. The input value used in the fair value
measurement is divided into three levels. That is, the input value of the first level is the unadjusted quotation of the same assets or
liabilities on the active market that can be obtained on the measurement day. The input value of the second level is the direct or
indirect observable input value of related assets or liabilities other than the input value of the first level. The input value of the
third level is the non-observable input value of the relevant assets or liabilities. The Company prefers the input value of the first
level and finally the input value of the third level. The level of the measurement results of the fair value is determined by the
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
lowest level of the input value that is of great significance to the measurement of fair value as a whole.
The Company measures the equity instrument investment at fair value. However, in limited cases, if the recent information used to
determine the fair value is insufficient, or the possible estimated amount of the fair value is widely distributed, and the cost
represents the best estimate of the fair value within the range, the cost may represent the appropriate estimate of the fair value
within the range.
4. Offset of financial assets and financial liabilities
The financial assets and financial liabilities of the Company are listed respectively in the balance sheet and no mutually offset.
However, when the following conditions are met at the same time, they are listed as net amount after offset in the balance sheet: (1)
the Company has the legal right to offset the recognized amount and may execute the legal right currently; (2) the Company plans
to settle with net amount or realize the financial asset and pay off the financial liability simultaneously.
5. Distinction between financial liabilities and equity instruments and relevant treatment method
The Company distinguishes between a financial liability and an equity instrument in accordance with the following principles :(1)
If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or other financial assets, the
contractual obligation is defined as a financial liability. Although some financial instruments do not explicitly contain terms and
conditions for the obligation to deliver cash or other financial assets, they may indirectly form contractual obligations through
other terms and conditions. (2) If a financial instrument is to be settled by or with the Company's equity instrument, it is necessary
to consider whether the Company's equity instrument used to settle the financial instrument is to be used as a substitute for cash or
other financial assets or to give the holder of the instrument a residual equity in the assets of the issuer after deducting all liabilities.
In the former case, the financial instrument is a financial liability of the issuer; in the latter case, the instrument is the issuer's
equity instrument. If it is stipulated in a financial instrument contract that the Company shall or may settle the financial instrument
by its own equity instruments in some cases, in which, the amount of the contractual rights or contractual obligations is equal to
the number of its equity instruments available or to be delivered multiplied by its fair value at the time of settlement, the contract is
classified as a financial liability, whether the amount of the contractual rights or obligations is fixed or whether it is based in whole
or in part on changes in variables (such as the interest rate, the price of a commodity or the price of a financial instrument) other
than the market price of the Company's equity instruments.
In classifying a financial instrument (or its components) in the consolidated statements, the Company takes into account all terms
and conditions agreed between the members of the Company and the financial instrument holder. The instrument shall be
classified as a financial liability if the Company as a whole is obligated to deliver cash, other financial assets, or settle accounts in
other ways that cause the instrument to become a financial liability as a result of the instrument.
The interest, dividends, profits or losses related to a financial instrument or its components classified as a financial liability, as
well as gains or losses from redemption or refinancing, shall be recorded into the Company's current profit and loss.
The issuance (including refinancing), repurchase, sales or cancellation of financial instrument or its components classified as
equity instruments is handled as the equity changes, and the fair value change of the equity instruments is not recognized.
Impairment of financial instruments
The Company withdraws the provision for impairment for the financial assets measured at the amortized cost, financial assets
measured at fair value of which changes are recorded into other comprehensive income, and financial guarantee contracts based on
the expected credit loss, and recognizes the credit impairment loss.
The expected credit loss refers to the weighted average credit loss of financial instruments weighted by the risk of default. Credit
loss refers to the difference between all contract cash flows discounted by the Company at the original effective interest rate and
receivable according to the contract and all expected cash flows received, that is, the present value of all cash shortage. The
financial assets purchased or originated that have suffered from credit impairment shall be discounted at the effective interest rate
of the financial assets through credit adjustment.
The provision for loss on the accounts receivable from standard transactions in the income guidelines and not containing material
financing elements shall be measured by the Company by simplified measurement according to the amount equivalent to the
expected credit loss in the whole duration.
For the financial assets purchased or originated that have suffered from credit impairment, only the cumulative changes of the
expected credit loss in the whole duration upon initial recognition are recognized as provision for loss on the balance sheet date.
On each balance sheet date, the amount of change in the expected credit loss over the entire duration is recorded as an impairment
loss or gain in the current period. Favorable changes in the expected credit loss are recognized as impairment gains even if the
expected credit loss for the entire duration recognized on the balance sheet date is less than the amount of overdue credit loss
reflected in the estimated cash flow upon initial recognition.
For the financial assets other than those purchased or originated that have suffered from credit impairment by simplified
measurement, the Company shall evaluate whether the credit risk of relevant financial instrument has increased significantly upon
initial recognition on each balance sheet date and measure its provision for loss and recognize the expected credit losses and
changes respectively in the following cases:
1. If the credit risk of the financial instrument has not increased significantly upon initial recognition and is in the first stage, its
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
provision for loss is measured according to the amount equivalent to the expected credit loss of the financial instrument in
the next 12 months, and the interest income is calculated according to the book balance and the effective interest rate.
1) If the credit risk of the financial instrument has significantly increased without credit impairment upon initial recognition and
is in the second stage, its provision for loss is measured according to the amount equivalent to the expected credit loss of the
financial instrument in the whole duration, and the interest income is calculated according to the book balance and the
effective interest rate.
2) If the financial instrument has suffered from credit impairment upon initial recognition and is in the third stage, its provision
for loss is measured according to the amount equivalent to the expected credit loss of the financial instrument in the whole
duration, and the interest income is calculated according to the amortized cost and the effective interest rate.
The amount increased or written back of the provision for credit loss of the financial instrument is recorded as an impairment loss
or gain in the current period. Except for financial assets measured at fair value of which changes are recorded into other
comprehensive income, the book balance of financial assets is offset by the provision for credit losses. For financial assets
measured at fair value of which changes are recorded into other comprehensive income, the Company recognizes its provision for
credit losses in other comprehensive income and does not reduce the book value of the financial assets on the balance sheet.
If the Company has measured the provision for loss in the previous accounting period according to the amount equivalent to the
expected credit loss of the financial instrument in the whole duration but the credit risk of the financial instrument has no longer
been increased significantly upon initial recognition on the current balance sheet date, the Company shall measure the provision
for loss on the financial instrument on the current balance sheet date according to the amount equivalent to the expected credit loss
in the next 12 months and the resulting amount written back from the provision for loss is recorded as an impairment gain in the
current period.
① Significant increase in credit risk
By means of the reasonable and valid forward-looking information available, the Company determines whether the credit risks of
financial instruments have increased significantly upon initial recognition by comparing the default risk of the financial
instruments on the balance sheet date with the default risk on the initial recognition date. For financial guarantee contracts, when
the Company applies the impairment provisions on financial instruments, the date on which the Company becomes a party to make
an irrevocable commitment shall be the initial recognition date. The Company will consider the following factors when assessing
whether the credit risk has increased significantly: whether there are significant changes in the actual or overdue operating results
of the debtor; whether there has been a significant adverse change in the regulatory, economic or technical environment in which
the debtor resides; whether there are significant changes in the value of collateral as collateral for debt or in the quality of
guarantees or credit enhancements provided by third parties, as well as the probability that these changes are expected to reduce
the financial incentive for the debtor to repay on the terms specified in the contract or affect the breach of contract; whether there
has been a significant change in the expected performance and repayment behavior of the debtor; whether the Company's credit
management methods for financial instruments have changed.
For a financial instrument with low credit risk on the balance sheet date, the Company assumes that the credit risk has not
increased significantly upon the initial recognition. The financial instrument is considered to have a low credit risk if the financial
instrument has relatively low default risk, and the borrower has a strong ability to fulfill its contractual cash flow obligations in a
short term, which will not necessarily reduced even if there are adverse changes in the economic situation and operating
environment in a long term.
② Financial assets that have suffered from credit impairment
When one or more events occur that adversely affect the expected future cash flow of a financial asset, the financial asset becomes
a financial asset with credit impairment. The evidence for credit impairment of financial assets includes: the debtor has incurred
major financial difficulties; the debtor breaches a contract, such as by default or exceeding payment of default or late payment of
interest or principal; the creditor gives the debtor concessions that he would not make under any circumstances for economic or
contractual reasons related to the debtor's financial difficulties; the debtor is likely to go bankrupt or undergo other financial
restructuring; the financial difficulties of the issuer or debtor cause the active market for the financial asset to disappear; a
substantial discount at which a financial asset is purchased or originated reflects the fact of credit loss.
The credit impairment of the financial asset may be caused by the joint action of the above events, and may not necessarily be
caused by the events that can be identified separately.
③ Determination of expected credit loss
The Company evaluates the expected credit losses of financial instruments on the basis of individual and combined instruments,
and in assessing the expected credit losses, takes into account reasonable and valid information about past events, current
conditions and projections of future economic conditions.
Based on the characteristics of common credit risks, the Company divides financial instruments into different combinations. The
individual assessment standards and the characteristics of the combination credit risks of relevant financial instruments are detailed
in the accounting policies of relevant financial instruments.
The Company shall determine the expected credit losses of the relevant financial instruments in the following ways:
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In the case of a financial asset, the credit loss is the present value of the difference between the contract cash flow receivable by
the Company and the expected cash flow receivable;
In the case of a financial guarantee contract, the credit loss is the present value of the difference between the estimated amount of
payment to be made by the Company in respect of any credit loss incurred under the contract, and the amount that the Company
expects to receive from the contract holder, debtor or anywhere else;
In the case of a financial asset with credit impairment on the balance sheet date but not purchased or originated with credit
impairment, the credit loss is the difference between the book balance of the financial asset and the present value of the estimated
future cash flow discounted at the original effective interest rate.
12. Notes receivable
Based on the acceptor credit risk of notes receivable as a common risk feature, the Company divides the notes receivable into
different combinations and determines the expected credit loss accounting estimation policy:
Combination classification Basis for recognition of combination Accrual method
The Company believes that the banker's acceptance bill held
Banker's acceptance bill The acceptor is a banking financial
does not have significant credit risk and will not cause major
combination institution
losses due to bank default.
The acceptor is a financial company The Company measures the provision for bad debt of
Commercial acceptance bill
or other non-bank financial commercial acceptance bills receivable according to the
combination
institution or enterprise unit expected credit loss of the entire duration
13. Accounts receivable
The provision for loss on the accounts receivable (whether or containing material financing elements) from standard transactions
in the Accounting Standards for Enterprises No.14 - Revenues and on the lease receivables regulated in the Accounting Standards
for Enterprises No. 21 - Lease shall be measured by the Company by simplified measurement according to the amount equivalent
to the expected credit loss in the whole duration.
The Company shall evaluate whether the credit risks of accounts receivable have increased significantly on the basis of a single
financial instrument or a financial instrument combination. The Company makes single assessment of the credit risks for the
accounts receivable with significantly different credit risks and the following features: accounts receivable in dispute with the
other party or involving litigation or arbitration; accounts receivable with obvious signs that the debtor is likely to be unable to
perform the repayment obligations. It is feasible for the Company to evaluate whether the credit risks increase significantly on the
basis of financial instrument combination if it is unable to obtain sufficient evidence for significant increase in credit risks at
reasonable cost at the level of single financial instrument. The Company can classify financial instruments based on the
characteristics of common credit risk in assessment based on the financial instrument combination.
The Company divides the accounts receivable into the following combinations based on their credit risk characteristics:
Combination classification Basis for recognition of combination Accrual method
Credit loss withdrawn on accounts The receivables with the same aging have similar
Expected credit loss rate
receivable by aging analysis method credit risk characteristics
Related parties in the consolidation Funds of subsidiaries in the consolidation scope
Generally no expected credit loss
scope of controlling shareholders
If there is objective evidence that a credit impairment has occurred in an account receivable, the Company shall withdraw the
provision for bad debts for that account receivable and recognize the expected credit loss.
For the accounts receivable with the credit loss drawn by aging analysis method, based on the actual credit losses of the previous
year and taking into account the forward-looking information of the current year, the Company's accounting estimation policy for
measuring expected credit losses is as follows:
Aging Expected credit loss rate
Within 1 year 5.00%
1~2 years 10.00%
2~3 years 20.00%
3~4 years 50.00%
4~5 years 80.00%
More than 5 years 100.00%
The Company shall calculate the expected credit loss of the accounts receivable on the balance sheet date. If the expected credit
loss is greater than the book amount of the provision for impairment of current accounts receivable, the Company recognizes the
difference as the provision for impairment of accounts receivable, debits the "credit impairment loss" and credits the "provision for
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bad debt". On the contrary, the Company recognizes the difference as an impairment gain and records the opposite.
Where the Company has actually incurred a credit loss and the relevant accounts receivable are determined to be irrecoverable,
and the write-off is approved, the "provision for bad debt" shall be debited and the "accounts receivable" shall be credited
according to the approved write-off amount. If the write-off amount is greater than the provision for loss which has been
calculated, the "credit impairment loss" shall be debited according to the difference.
14. Receivables financing
The financial asset of the Company that meets the following conditions simultaneously is classified as the financial asset measured
at fair value of which changes are recorded into other comprehensive income: the business model for managing such financial
assets is to collect contractual cash flows and to sell the financial asset; according to the contract terms of the financial asset, the
cash flow generated on a specific date is only for the payment of the principal and the interest based on the outstanding principal
amount.
The Company transfers the accounts receivable held in the form of discount or endorsement. Such accounts receivable with
frequent business and large amount involved are measured at fair value and their changes are recorded into other comprehensive
income according to relevant regulations in the financial instrument standards if the management business model is to collect and
sell contractual cash flows.
15. Other receivables
The Company divides the process of credit impairment of other receivables into three stages, and has different accounting
treatment methods for other receivables impairment in different stages:
The credit risks has not increased significantly upon initial recognition (first stage).
For the financial instruments in this stage, the Company should measure the provision for loss according to the expected credit loss
over the next 12 months.
The Company takes aging as the credit risk characteristic to group other receivables and measures them on the basis of
combination, which is equivalent to the expected credit loss in the next 12 months.
The credit risk has significantly increased without credit impairment upon initial recognition (second stage).
For the financial instruments in this stage, the Company should measure the provision for loss according to the expected credit loss
in the whole duration.
Credit impairment upon initial recognition (third stage)
For the financial instruments in this stage, the Company should measure the provision for loss according to the expected credit loss
in the whole duration.
16. Contract assets
Methods and standards for the recognition of contract assets
Contract assets refer to the Company's rights to receive consideration for the transfer of goods to the customer, and such rights are
subject to factors other than the passage of time. If the Company sells two clearly distinguishable commodities to customers, and it
has the right to receive payment due to the delivery of one of the commodities, but the receipt of such payment also depends on the
delivery of another commodity, the Company regards the right to receive payment as a contract asset.
Recognition method and accounting treatment method of the expected credit loss of contract assets
For the recognition method of expected credit loss of contract assets, refer to the above 10. Financial assets and financial liabilities,
12. Notes receivable and 13. Accounts receivable.
The Company shall calculate the expected credit loss of the contract assets on the balance sheet date. If the expected credit loss is
greater than the book amount of the provision for impairment of current contract assets, the Company recognizes the difference as
the provision for impairment, debits the "assets impairment loss" and credits the "provision for impairment of contract assets". On
the contrary, the Company recognizes the difference as an impairment gain and records the opposite.
Where the Company has actually incurred a credit loss and the relevant contract assets are determined to be irrecoverable, and the
write-off is approved, the "provision for impairment of contract assets" shall be debited and the "contract assets" shall be credited
according to the approved write-off amount. If the write-off amount is greater than the provision for loss which has been
calculated, the "assets impairment loss" shall be debited according to the difference.
17. Inventory
The Company's inventory mainly includes low priced and easily worn articles, raw materials, work in process, merchandise
inventory and goods shipped in transit, etc.
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Inventory is initially measured according to the cost. The inventory cost includes purchase cost, processing cost and other costs.
The perpetual inventory system is adopted for the inventories and the inventories are price according to the actual cost when
obtained; the cost of the inventories is recognized by the weighted average method when received or issued. The low priced and
easily worn articles and packages are amortized by one-time writing-off method.
The year-end inventory is priced according to the cost of inventories or net realizable value, whichever is lower. In case of
inventory damage, full or partial obsolescence or selling price below the cost, the non-recoverable part of its cost is expected and
the inventory falling price reserves are withdrawn. The inventory falling price reserves of the merchandise inventory and raw
materials are withdrawn according to the difference between the cost of a single inventory item and its net realizable value; for the
inventories with large quantity and low unit price, the inventory falling price reserves are withdrawn according to the inventory
category.
For the merchandise inventory, work in process, materials for sale and other merchandise inventories directly used for sale, the net
realizable value is recognized by the amount of the estimated sale price of the inventories subtracted by the estimated selling
expenses and related taxes; for the material inventory possessed for production, the net realizable value is recognized by the
amount of the estimated sale price of the finished products subtracted by the estimated cost about to occur in completion,
estimated selling expenses and related taxes.
18. Assets held for sales
If the Company recovers the book value of an asset mainly through the sale (including the non-monetary assets exchange of
commercial nature, the same hereinafter) rather than continuous use of a non-current asset or disposal group, such asset is
classified as an asset held for sales
1. The Company classifies non-current assets or disposal groups as held for sale if they meet the following conditions
simultaneously: (1) immediately available for sale under current conditions in accordance with the usual practice of selling
such type of assets or disposal groups in similar transactions; (2) the sale is highly likely, that is, the Company has resolved a
sale plan and obtained a firm purchase commitment, and the sale is expected to be completed within one year. Where
relevant provisions require the approval of relevant authority or regulatory before the sale, such approval should be
indispensable. Before the Company classifies non-current asset or disposal group as held for sale for the first time, it
measures the book value of non-current asset or each asset and liability in the disposal group in accordance with relevant
accounting standards. Upon initial measurement or remeasurement of the non-current asset and disposal group held for sale
on the balance sheet date, if the book value is higher than the net amount of the fair value minus the selling expense, the
book value is written down to the net amount of the fair value minus the selling expense, the amount written down is
recognized as the assets impairment loss and included in the current profit and loss. The provision for impairment of
available for sale assets is withdrawn.
2. The non-current assets or disposal groups acquired by the Company exclusively for resale are classified as held for sale at
the date of acquisition if, at the date of acquisition, they meet the specified conditions of "sale is expected to be completed
within one year" and are likely to meet other conditions for classification as held for sale within a short period of time
(usually three months). At initial measurement, the lower of the initial measurement amount and the net amount after
deducting selling expenses from fair value, assuming it is not classified as held for sale, is measured. Except for non-current
assets or disposal groups acquired in a business combination, the difference arising from the initial measurement amount of a
non-current asset or disposal group at fair value less selling expenses is recognized in profit or loss.
3. If the Company loses control over the subsidiary due to the sale of its investment in the subsidiary or other reasons, no
matter whether the Company retains part of the equity investment after the sale, when the investment in the subsidiary to be
sold meets the conditions for classification of held for sale, the overall investment in the subsidiary is classified as held for
sale in the individual financial statements of the parent company, and all assets and liabilities of the subsidiary are classified
as held for sale in the consolidated financial statements.
4. If on the subsequent balance sheet date, the net amount of non-current assets held for sale after deducting the selling
expenses increases, the previously written-down amount shall be restored and reversed in the amount of assets impairment
loss recognized after classification as held for sale, with the reversed amount included in current profit and loss. The assets
impairment losses recognized before classification as held for sale shall not be reversed.
5. The amount of asset impairment loss recognized for disposal groups held for sale is offset against the book value of goodwill
in the disposal group, and then against the book value of each non-current asset on a pro rata basis according to its
proportionate of the book value.
If on the subsequent balance sheet date, the net amount of assets in disposal group held for sale after deducting the selling
expenses increases, the previously written-down amount shall be restored and reversed in the amount of the assets impairment loss
recognized for non-current assets applicable to relevant measurement regulations after classification as held for sale, with the
reversed amount included in current profit and loss. The book value of the goodwill written down, and the assets impairment loss
recognized for the non-current assets before classification as held for sale shall not be reversed.
The amount of subsequent reversal of impairment losses recognized for assets in disposal groups held for sale is increased
proportionately to the book value of each non-current asset in the disposal group, other than goodwill, based on its proportionate
share of the carrying amount of the asset.
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The depreciation or amortization is not withdrawn for the non-current assets held for sale or for those in the disposal group, and
the interest and other expenses on liabilities held for sale in the disposal group continue to be recognized.
When the non-current assets or disposal group held for sale are no longer classified as held for sale because they no longer meet
the classification conditions of held for sale, or the non-current assets are removed from the disposal group held for sale, they will
be measured at the lower of the following:
(1) the amount after adjustment according to the depreciation, amortization, or impairment that would have been recognized if it
had not been classified as held for sale category, as for the book value before classified as held for sale category; (2) recoverable
amount. When the non-current assets or disposal groups held for sale are derecognized, the unrecognized gains or losses shall be
included in the current profit and loss.
19. Debt investment
N/A
20. Other debt investments
N/A
21. Long-term receivables
N/A
22. Long-term equity investment
The Company's long-term equity investment mainly consists of investment in subsidiaries, investment in joint ventures and equity
investment in cooperative enterprises.
The Company's judgment on common control is based on the collective control of the arrangement by all participants or a
combination of participants, and the policy on the activities related to the arrangement must be agreed upon by all participants in
the collective control of the arrangement.
When the Company directly or indirectly owns more than 20% (including) but less than 50% voting rights of the investee through
its subsidiaries, it is generally considered to have a significant impact on the investee. When the Company owns less than 20%
voting rights of the investee, it shall be judged to have a significant impact on the investee with comprehensive consideration to
dispatching representatives in the board of directors of the investee or similar authority, participating in the formulation process of
the financial and business policy of the investee, conducting important transactions with the investee, dispatching management to
the investee or providing key technical data for the investee.
The company that forms control over the investee shall be a subsidiary of the Company. For the long-term equity investment
acquired through business combination under common control, the share of the book value of the net assets of the combined party
in the consolidated statements of the final controlling party, on the combination date, is regarded as the initial cost of the long-term
equity investment. If the book value of the net assets of the combined party on the combination date is negative, the long-term
equity investment cost shall be determined as zero.
If the Company acquires the equity of the investee under common control by steps through several deals, finally forms business
combination and such deals belong to package deal, the deals shall be subject to accounting treatment as a deal to obtain the
control right. If the deals do not belong to the package deal, the share of the book value of the net assets of the combined party in
the consolidated financial statements of the final controlling party, on the combination date, is regarded as the initial cost of the
long-term equity investment. The difference between the initial cost of the long-term equity investment and the sum of the book
value of the long-term equity investment before the combination plus the book value of the new consideration for shares on the
combination date is adjusted against capital reserve; if the capital reserve is not sufficient to absorb the difference, the retained
earnings shall be written down.
For the long-term equity investment acquired through business combination not under common control, the combined cost is the
initial investment cost.
If the Company acquires the equity of the investee not under common control by steps through several deals, finally forms
business combination and such deals belong to package deal, the deals shall be subject to accounting treatment as a deal to obtain
the control right. If the deals do not belong to the package deal, the sum of the book value of the equity investment originally held
and newly increased investment cost shall be considered as initial cost of the investment that calculates according to cost method.
If the equity held before the acquiring date is calculated by the equity method, other comprehensive income calculated by the
equity method is not adjusted and shall be subject to accounting treatment when disposing of the investment through adopting the
basis for the direct disposal of relevant assets or liabilities of the investee. If the original equity held before the acquiring date is
calculated at fair value in the available-for-sale financial assets, the change in the cumulative fair value originally included in other
comprehensive income is transferred to the current investment profit and loss on the combination date.
Except for the long-term equity investment acquired through business combination, for the long-term equity investment made by
paying cash, the investment cost shall be the purchase price actually paid; for the long-term equity investment acquired by issuing
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equity securities, the investment cost shall be the fair value of the equity securities issued; for the long-term equity investment
acquired through the exchange of non-monetary assets, the initial investment cost shall be recognized in accordance with the
relevant provisions of the Accounting Standards for Business Enterprises No.7 - Exchange of Non-monetary Assets; for the long-
term equity investment acquired by debt restructuring, the initial investment cost shall be recognized in accordance with the
relevant provisions of the Accounting Standards for Business Enterprises No.12 - Debt Restructuring.
The investment in subsidiaries is measured by the cost method and the investment in joint ventures and cooperative enterprises is
measured by equity method.
For the long-term equity investment calculated by cost method subsequently, the long-term equity investment cost is adjusted
when the investment is added or recovered. The cash dividends or profits declared to be distributed by the investee should be
recognized as current investment income.
The book value of the long-term equity investment measured subsequently by equity method shall be increased or decreased with
the change in the owner's equity of the investee. The share of the net profits and losses of the investee to be enjoyed shall be
recognized after offsetting of the part of the internal deal profits and losses attributable to the Company between the joint venture
and cooperative enterprise according to the shareholding ratio and after adjustment of the new profits of the investee on the basis
of the fair value of the identifiable assets of the investee when the investment is obtained and according to the Company's
accounting policy and accounting period.
In disposal of the long-term equity investment, the balance between the book value and the actual price obtained is charged to
current investment income. If a long-term equity investment calculated by the equity method is included in the owner's equity due
to changes in the owner's equity other than the net profit and loss of the investee, the part originally included in the owner's equity
in the disposal of the investment shall be transferred to the current investment profit and loss by the corresponding proportion.
If the deals for disposal of the equity by steps until the loss of the control right do not belong to the package deal, each deal shall
be subject to accounting treatment respectively. If they belong to a package deal, the deals shall be subject to accounting treatment
as a deal for disposal of subsidiary and loss of the control right; however, the difference between each disposal price and the book
value of the long-term equity investment corresponding to the equity disposed of before the loss of control right is recognized as
other comprehensive income and then transferred into the current profit and loss in the period of loss of control right.
23. Investment properties
Measurement mode of investment properties
Cost method
Method of depreciation or amortization
The Company's investment properties refer to the properties held for rent gain or capital gain or the both thereof, which are
measured by cost model.
The Company's investment properties are depreciated or amortized by the straight-line depreciation method. The estimated service
life, net residual rate and yearly depreciation (amortization) ratio of all types of investment properties are as follows:
Category Depreciation life (year) Expected residual rate (%) Yearly depreciation (%)
Houses and buildings 20 5.00 4.75
Land use right 50 0.00 2.00
24. Fixed assets
(1) Recognition conditions
The Company's fixed assets refer to the tangible assets with a service life of more than one year and a unit value of more than
RMB 5,000, and are held for production of goods, provision of labor, lease (excluding lease of buildings or molds) or operating
management.
The fixed assets can be recognized when the economic benefits related to the fixed assets are likely to flow to the Company and
when the cost of the fixed assets can be reliably measured. The fixed assets, including buildings, machinery equipment,
transportation equipment and other equipment, are entered into the account by actual cost when obtained, in which, the cost of
purchased fixed assets includes buying price, import tariff and other relevant taxes, as well as other expenses incurred before the
fixed assets reach the extended usable status and directly attributable to the assets; cost of self-constructed fixed assets, consisting
of necessary expenses incurred from construction of the asset to the intended serviceable conditions; the cost invested by the
investors in the fixed assets is determined according to the value stipulated in the investment contracts or agreements, except the
value stipulated in the contracts or agreements is not fair; the fixed assets under financing lease shall be recorded in the accounts
according to the lower present value between the fair value of the leased asset on the lease commencement date and the minimum
lease payment.
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(2) Depreciation method
Category Depreciation method Depreciation life Residual rate Yearly depreciation
Houses and buildings Straight-line method 20 5.00% 4.75%
Machinery equipment Straight-line method 10 5.00% 9.50%
Transportation
Straight-line method 5 5.00% 19.00%
equipment
Other equipment Straight-line method 5 5.00% 19.00%
25. Construction in progress
The construction in progress is measured according to the actual cost. The self-run construction shall be measured by direct
materials, direct wages and direct construction costs; the outsourced construction shall be measured according to the paid project
cost; the equipment installation project cost shall be determined according to the value, installation cost and test run expenses of
the equipment installed. The cost of the construction in progress should also include the capitalized borrowing costs.
The fixed assets of the construction shall be carried forward to the fixed assets by the estimated value according to the construction
budget, cost or actual construction cost from the date when they reach the intended usable state, and the depreciation shall be
calculated and withdrawn from the following month. The original value difference of the fixed assets is adjusted after the
completion settlement procedures.
The construction in progress is carried forward to the fixed assets when it reaches the intended serviceable condition, based on the
following criteria:
Item Criteria for carrying forward fixed assets
If (1) the physical construction, including installation, has been fully completed or substantially completed;
(2) the amount of money spent on the purchased and constructed houses and buildings is very small or
almost no longer occurs; (3) the purchased and constructed houses and buildings have met the design or
Houses and building contract requirements, or are basically in line with the design or contract requirements; (4) the construction
work has reached the predetermined usable state but has not yet completed the final settlement, it will be
carried forward as fixed asset at its estimated value based on the actual cost of the construction from the date
of reaching the intended serviceable condition.
The equipment management department and the equipment manufacturer are jointly responsible for
equipment installation and debugging, including equipment hardware debugging, process condition
Machinery equipment
debugging, etc. When the debugging is completed to reach the intended serviceable condition, the equipment
will be carried forward as fixed asset after approval according to the process.
When it reaches the intended serviceable condition, it will be carried forward as fixed asset after approval
Transportation means
according to the process
When it reaches the intended serviceable condition, it will be carried forward as fixed asset after approval
Other equipment
according to the process
26. Borrowing costs
The construction or production borrowing costs incurred and directly attributable to the assets meeting the capitalization
conditions are capitalized and included in relevant asset costs; other borrowing costs are included in the current profit and loss.
Recognition principle of capitalization of borrowing costs: the construction or production borrowing costs incurred and directly
attributable to the assets meeting the capitalization conditions are capitalized and charged to relevant asset costs; other borrowing
costs shall be recognized as costs according to the amount incurred when they occur and shall be included in the current profit and
loss. Assets meeting the capitalization conditions refer to the fixed assets, intangible assets, inventories and other assets which can
reach the intended usable or marketable status only after quite a long time (generally more than 1 year) of construction or
production activities.
Capitalization period of borrowing costs: the borrowing costs related to the assets that meet the capitalization conditions start to be
capitalized when the expenditure to acquire and the borrowing costs have occurred and the construction or production activities
required to make the assets reach the usable or marketable status have started. In case of abnormal interrupt of the assets meeting
the capitalization conditions for more than 3 consecutive months in the construction or production process, the capitalization of the
borrowing costs is suspended; the borrowing costs stop capitalization when the construction or production assets meeting the
capitalization conditions reach the usable or marketable status.
Calculation method for capitalized amount of borrowing costs: when special borrowings are borrowed for construction or
production of the assets meeting the capitalization conditions, the difference between the interest incurred in the period of special
borrowings and the interest income from the unused borrowing fund in the bank or the investment income of temporary
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investment is deemed as the capitalized amount of the interest on the special borrowings. When general borrowings are occupied
for construction or production of assets meeting the capitalized conditions, the weighted average of the expenditure to acquire
exceeding the special borrowings in the cumulative expenditure to acquire is multiplied by the weighted average interest rate of
the general borrowings occupied to calculate and determine the amount of interest to be capitalized on the general borrowings.
27. Biological assets
N/A
28. Oil and gas assets
N/A
29. Intangible assets
(1) Service life and its determination basis, estimation, amortization method or review procedure
The Company's intangible assets mainly include land use rights, software, trademarks, patents, etc. The actual cost of the
purchased intangible assets shall be the actual cost and other relevant expenses. The actual cost of the intangible assets invested by
the investors is determined according to the value stipulated in the investment contracts or agreements. If the value stipulated in
the contracts or agreements is not fair, the actual cost is determined according to the fair value. The intangible assets are amortized
by the straight-line method. The classification and amortization period of the Company's intangible assets are as follows:
Category Amortization period
Land use right 50
Patent 10
Software 3~5 years
Trademark and domain name 10
The Company's land use right is amortized averagely according to the transfer life from the date of transfer; the Company's patent
right, non-patented technology, the right to use the special software and other intangible assets are amortized averagely by the
shortest of the estimated service life, the beneficial life stipulated in the contract and the effective life stipulated by law. The
amortization amount shall be recorded into the current profit and loss or the cost of related assets according to its beneficiary
object.
The expected useful life and amortization methods of the intangible assets with limited useful life are reviewed at the end of each
year and adjusted accordingly in case of change; the expected useful life of the intangible assets with uncertain useful life are
reviewed in each accounting period. If there is evidence that the service life of intangible assets is limited, the service life shall be
estimated and amortized within the expected useful life.
(2) Collection scope of R&D expenditure and related accounting treatment methods
The expenditure of the Company's internal R&D projects is classified into the expenditure at the research stage and the
expenditure at the development stage according to its nature and great uncertainty of the intangible assets eventually formed by
R&D activities.
For intangible assets developed independently, the expenditure in the research stage shall be included in the current profit and loss
when it occurs; The expenditures in the development stage shall be recognized as assets if they meet the following conditions at
the same time:
Technically feasible to complete the intangible assets, so that they can be used or sold;
It is intended to finish and use or sell the intangible assets;
The products generated by the intangible assets can be sold or the intangible assets themselves can be sold;
It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with the support
of sufficient technologies, financial resources and other resources; and
The development expenditures of the intangible assets can be reliably measured.
The expenses at the development stage not meeting above conditions are included in current profits and losses when obtained. The
development expenses included in profits and losses in previous periods are not recognized as assets in subsequent periods. The
capitalized expenses at the development stage are listed as development expenses in the balance sheet and transferred to intangible
assets when the project reaches the intended usable state.
If the expenditure at the research stage and the expenditure at the development stage cannot be distinguished, the R&D
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expenditure incurred is fully charged to the current profit and loss. The cost of intangible assets formed by internal development
activities consists only of the total expenditure incurred between the point at which the conditions for capitalization are met and
the time at which the intangible assets reach their intended use. The expenditure that has been expensed and included in the profit
and loss for the same intangible asset before reaching the capitalization conditions in the development process is no longer
adjusted.
30. Long-term assets impairment
The Company checks the intangible assets determined for the long-term equity investment, fixed assets, construction in progress
and service life of the subsidiaries, joint ventures and cooperative enterprises on each balance sheet date. When there are the
following signs, indicating that the assets may be impaired, the Company will conduct impairment test; for intangible assets with
uncertain goodwill and beneficial life and development expenditure that has not yet reached its intended usable state, impairment
test shall be conducted at the end of each year whether there is any sign of impairment or not. Where it is difficult to test the
recoverable amount of a single asset, the test shall be based on the asset group or the combination of asset groups to which the
asset belongs.
After the impairment test, if the book value of the asset exceeds the recoverable amount, the difference is recognized as an
impairment loss. Once the impairment loss of the said asset is recognized, it will not be carried back in the subsequent accounting
period. The recoverable amount of an asset is the higher of the net amount of the assets fair value subtracted by the disposal costs
and the present value of the expected future cash flow of the assets. Signs of impairment are as follows:
The market price of assets has fallen sharply in the current period, and its decline is significantly higher than the expected decline
due to the passage of time or normal use;
The economic, technical or legal environment in which the enterprise operates and the market in which its assets are
located are undergoing or will undergo significant changes in the current period or in the near future, thus adversely
affecting the enterprise;
The market interest rate or other market return on investment has increased in the current period, which affects the
discount rate of the enterprise in calculating the present value of the expected future cash flow of assets, resulting in a
significant reduction in the recoverable amount of asset;
There is evidence that the assets have become obsolete or its entity has been damaged;
The assets have been or will be idle, terminated or disposed of in advance;
The evidence in the internal report of the enterprise indicates that the economic performance of the assets has been or
will be lower than the expectation, such as the net cash flow created by the assets or the realized operating profit (or loss)
is far lower (or higher) than the expected amount;
Other signs indicating that the assets may have been impaired.
31. Long-term unamortized expenses
The long-term unamortized expenses of the Company refer to the expenses that have been paid, but should be borne in the current
period and subsequent periods with the amortization period of more than one year (excluding one year). Such expenses are
amortized on average in the benefit period. If a long-term unamortized expense item cannot benefit a later accounting period, the
amortized value of the item that has not been amortized is transferred to the current profit and loss.
32. Contract liabilities
Contract liabilities reflect the obligations of the Company to transfer goods to customers for consideration has been received or
receivable from customers. If the customer has paid the contract consideration or the Company has obtained the right to receive
the contract consideration unconditionally before the Company transfers the goods to the customer, the contract liabilities shall be
recognized according to the amount received or receivable at the earlier of the actual payment made by the customer and the due
payment.
33. Employee compensation
(1) Short-term compensation accounting method
The short-term compensation mainly includes salary, bonus, allowances and subsidies, employee services and benefits, housing
fund, labor union expenditure and personnel education fund, medical insurance premiums, industrial injury insurance premium,
birth insurance premium and other social insurance premiums. The short-term compensation actually happened during the
accounting period when the staff offering the service for the Company shall be recognized as liabilities and included in the current
gains and losses or relevant assets cost by the beneficiary object.
(2) Post-employment benefits accounting method
Post-employment benefits mainly include basic endowment insurance, unemployment insurance and enterprise annuity payment
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and are classified as defined contribution plans according to the risks and obligations undertaken by the Company. The sinking
funds made to a separate entity on the balance sheet date in exchange for services rendered by the employee during the accounting
period shall be recognized as liabilities and included in the current gains and losses or relevant assets cost by the beneficiary object.
(3) Termination benefits accounting method
The Company puts forward compensation for an employee to terminate the labor relationship with the employee before expiry of
the employee labor contract. When failing to unilaterally withdraw the dismission welfare due to termination of labor relation plan
or downsizing suggestions, or when recognizing the costs related to restructuring involving payment of dimission welfare
(whichever comes first), the Company recognizes the employee compensation liabilities from the dismission welfare and includes
in current profit and loss. The compensation that is paid beyond a year is included in current profit and loss after discount.
(4) Other long-term employee benefits accounting method
Other long-term employee benefits mainly include the long-term incentive plan and long-term benefits and shall be subject to the
accounting treatment according to relevant provisions in the defined contribution plans.
34. Estimated liabilities
Any business related to contingencies such as external guarantee, pending litigation or arbitration, product quality assurance, staff
reduction plan, loss contract, restructuring obligation, environmental pollution remediation, commitment and fixed asset disposal
obligation, if meeting all of the following conditions, is recognized as a liability: the obligation is the current obligation undertaken
by the Company; performance of the obligation is likely to lead to the outflow of economic benefits; the amount of the obligation
can be reliably measured.
The estimated liabilities are initially recognized according to the best estimate number of the expenditure required to perform
relevant current obligations with consideration to the contingency related risks, uncertainty, time value of money and other factors.
The Company reviews the current best estimate on the balance sheet date, and adjust the book value of estimated liabilities.
Contingent liabilities of the acquiree acquired in a business combination not under the same control are measured at fair value at
the time of initial recognition, and subsequently measured at the higher of the amount expected to be recognized for the liability
and the amount initially recognized less the accumulated amortization determined in accordance with the principles of revenue
recognition.
35. Share-based payment
The term share-based payment refers to a transaction in which the Company grants equity instruments or undertakes equity-
instrument-based liabilities in return for services from employee or other parties. The share-based payments shall consist of equity-
settled share-based payments and cash-settled share-based payments.
The equity-settled share-based payment in return for employee services is measured at the fair value of the equity instruments
granted to the employees. The amount of fair value shall be recognized as relevant costs or expenses and capital reserves on each
balance sheet date during the waiting period, based on the best estimate of the number of equity instruments with exercisable
rights, at the fair value of equity instrument on the grant date, provided that the services obtained during the waiting period are
completed or the prescribed performance conditions are met. The Company shall include the service obtained at the current period
into relevant costs or expenses, and increase the capital reserve accordingly.
If the equity-settled share-based payment is cancelled, it will be treated as an accelerated exercise on the cancellation date, and the
unconfirmed amount will be recognized immediately. If the employee or other party can choose to satisfy the non-exercisable
condition but failed to do so in the waiting period, it will be treated as a cancellation of equity-settled share-based payment.
However, if a new equity instrument is granted and the new equity instrument granted is deemed to be a replacement for the
cancelled equity instrument on the grant date, the granted replacement equity instrument will be handled in the same manner as
any amendment to the terms and conditions of the original equity instrument.
The cash-settled share-based payment settled will be measured according to the fair value of the liability confirmed basing on the
shares borne by the Company and other equity instruments. If the rights can be exercised immediately after being granted, the
payment will be counted into relevant costs or expenses at the fair value of the liabilities assumed and the liability will be
increased correspondingly. If the rights can only be exercised after the situation that service within the waiting period is completed
and set performance is achieved, the service obtained at the current period, according to the fair value amount of the liability borne
by the Company, and basing on the optimum estimation for the condition of exercising rights, will be counted into costs or
expenses on each and every balance sheet date during the waiting period, and the liability will be increased correspondingly.
Each and every balance sheet date and settlement before relevant liability settlement, the fair value of liability will be remeasured,
of which changes occurred will be counted into the current period.
36. Preferred shares, perpetual bonds and other financial instruments
N/A
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37. Income
Accounting policies for disclosure of income recognition and measurement based on business types
The Company's operating income mainly includes income from selling commodities, income from offering labor and transfer of
asset use right.
Income recognition principle
The Company has fulfilled its contractual obligation to recognize income when the customer acquires control of the relevant goods
or services. Obtaining control of the relevant goods or services is the ability to dominate the use of the goods or provision of
services and gain almost all economic benefits from them.
The Company evaluates the contract on the contract commencement date, identifies each individual performance obligation
contained in the contract, and determines whether each individual performance obligation is performed within a certain period of
time or at a certain point in time.
If one of the following conditions is satisfied, the Company shall be deemed to have performed its performance obligation within a
certain period of time; otherwise, it shall be deemed to have performed its performance obligation at a certain time point:
1) The customer obtains and consumes the economic benefits arising from the Company's performance at the same time of the
Company's performance.
2) The customer can control the goods under construction during the Company's performance.
3) The goods produced by the Company during the performance are of irreplaceable use, and the Company shall be entitled to
receive payment for the accumulated part of the performance completed so far during the whole contract period.
For the performance obligations performed within a certain period of time, the Company shall recognize the income in accordance
with the performance progress during that period. If the performance schedule cannot be reasonably determined and the cost
already incurred by the Company is expected to be compensated, the Company shall recognize the income according to the cost
already incurred until the performance schedule can be reasonably determined.
For performance obligations performed at a certain time point, the Company recognizes income at the time point when the
customer acquires control of the relevant goods or services. In determining whether the customer has acquired control of goods or
services, the Company considers the following indications:
1) The Company has the current collection right for the goods or services.
2) The Company has transferred legal ownership to the goods to the customer.
3) The Company has transferred the goods in kind to the customer.
4) The Company has transferred the main risks and rewards on the property in the goods to the customer;
5) The customer has accepted the goods or services, etc.
The Company's right to receive consideration for the transfer of goods or services to the customer is listed as the contract assets,
and the contract assets are depreciated on the basis of expected credit losses. The rights that the Company owns and
unconditionally to collect consideration from the customer are listed as receivables. The obligations of the Company to transfer
goods or services to customers for which consideration has been received or receivable are listed as contractual liabilities.
Income measurement principle
1) If the contract contains two or more performance obligations, the Company shall, at the beginning of the contract, apportion
the transaction price to each individual performance obligation according to the relative proportion of the individual selling
price of the goods or services committed by each individual performance obligation, and measure the income according to
the transaction price apportioned to each single performance obligation.
2) The transaction price means the amount of consideration that the Company is expected to be entitled to collect for the
transfer of goods or services to the customer, excluding payments collected on behalf of third parties. The transaction price
recognized by the Company does not exceed the amount of accumulated recognized income which is highly unlikely to be
materially reversed when the relevant uncertainty is eliminated. The amount expected to be returned to the customer is not
included in the transaction price as a liability.
3) If there is a material financing component in the contract, the Company shall determine the transaction price based on the
amount payable in cash when the customer acquires control of the goods or services. The difference between the transaction
price and the contract consideration shall be amortized by the effective interest method during the contract period. On the
commencement date of the contract, if the Company expects that the interval between the customer's acquisition of control
of the goods or services and the customer's payment of the price will not exceed one year, the material financing elements in
the contract will not be considered.
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Specific methods of revenue recognition
1) Revenue recognized on time
The Company's sales of electrical products, accessories and materials belong to the performance obligation to be performed at a
certain point in time.
Recognition conditions of income from domestic goods: the Company has delivered the products to the customers according to the
contract, the customers have received the goods, the payment for goods has been recovered or the receipt voucher has been
obtained, and the relevant economic benefits are likely to flow into the Company, the main risks and rewards of the ownership of
the goods have been transferred, and the legal ownership and control of the goods have been transferred.
Recognition conditions of income from export goods: the Company has declared the products to leave the port according to the
contract, obtained the bill of lading, recovered the payment for goods or obtained the receipt voucher, and the relevant economic
benefits are likely to flow into the Company, the main risks and rewards of the ownership of the goods have been transferred, and
the legal ownership and control of the goods have been transferred.
2) Revenue recognized according to performance progress
The Company's technical service income and business contracts between operating leases and customers belong to the
performance obligations performed within a certain period of time, and the income shall be recognized according to the
performance progress.
The situation where different business models are used for similar businesses and involve different revenue recognition methods
and measurement methods
38. Contract cost
(1) Recognition method of asset amount related to contract cost
The Company's assets related to contract cost include the contract performance cost and the contract acquisition cost.
The contract performance cost, that is, the cost incurred by the Company for the performance of the contract, which is not within
the scope of other accounting standards for business enterprises and meets the following conditions at the same time, is recognized
as an asset as the contract performance cost: such cost is directly related to a current or prospective contract, including direct labor,
direct materials, manufacturing expenses (or similar expenses), costs clearly borne by the customer and other costs incurred solely
as a result of the contract; Such cost increases the resources used by the Company to fulfill its performance obligations in the
future; And such cost is expected to be recovered.
The contract acquisition cost, that is, the incremental cost incurred by the Company to acquire the contract, which is expected to be
recovered, is recognized as an asset as the contract acquisition cost; If the amortization period of such asset does not exceed one
year, it shall be recorded into the current profit and loss when it occurs. Incremental cost refers to the cost that will not occur if the
Company does not acquire the contract (such as sales commission, etc.). Other expenses incurred by the Company to acquire the
contract other than the expected recoverable incremental costs (such as travel expenses incurred regardless of whether the contract
is acquired or not) shall be recorded into the current profit and loss when it occurs, except those clearly borne by the customer.
(2) Amortization of assets related to contract cost
Assets related to contract costs are amortized on the same basis as income recognition of goods related to the asset, and are
recorded into the current profit and loss when it occurs.
(3) Impairment of assets related to contract cost
When determining the impairment loss of assets related to the contract cost, the Company first determines the impairment loss of
other assets related to the contract recognized in accordance with other relevant accounting standards for business enterprises;
Then, if the book value is higher than the difference between the residual consideration expected to be obtained by the Company
due to the transfer of goods related to the asset and the estimated cost to be incurred for the transfer of relevant goods, the excess
part shall be accrued for impairment provision and recognized as asset impairment loss.
If the factors of impairment in the previous period change so that the difference above is higher than the book value of the asset,
the Company shall reverse the withdrawn asset impairment provision and include it into the current profit and loss, but the book
value of the reversed asset shall not exceed the book value of such asset on the reversal date if the impairment provision is not
withdrawn.
39. Government subsidies
Government subsidies will be recognized when the conditions attached to them are met and received. The Company's government
subsidies include financial allocations. The asset related government subsidies refer to the government subsidies obtained by the
Company and used for acquisition or construction or for formation of long-term assets in other ways; the income related
government subsidies refer to the government subsidies other than the asset related government subsidies. The government
subsidies without subsidy objects specified in government documents shall be judged by the Company according to the above
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principle, or classified into income related government subsidies as a whole if it is difficult to judge.
The government subsidies as the monetary assets are measured according to the amount received. For subsidies allocated in
accordance with fixed quota standards, or if there is evidence at the end of year that the Company can meet relevant conditions
stipulated in the financial support policy and can be expected to receive the financial support fund, the government subsidies are
measured according to receivables. The government subsidies not as the monetary assets are measured according to the fair value,
or measured according to the nominal amount (RMB 1) if the fair value cannot be obtained reliably.
The government subsidies related to assets are recognized as deferred income and equally distributed and charged to the current
profit and loss in the service life of relevant assets.
If the related asset is sold, transferred, scrapped or damaged before the end of the useful life, the deferred income balance not yet
distributed is transferred in the profits and losses in the period of assets disposal.
The income related government subsidies, if used to compensate for related costs or losses in subsequent periods, are recognized
as the deferred income and charged to the current profit and loss when related costs or losses are recognized. The government
subsidies pertinent to the daily activities of the Company shall be included in other income or used to offset relevant costs and
expenses according to the substance of the economic business. The government subsidies irrelevant with the daily activities of the
Company shall be included in non-operating revenues and expenditures.
Where the Company has obtained discount interest on preferential loans, it shall distinguish between the two situations in which
the financial department allocates discount interest funds to the lending bank and the financial department directly allocates
discount interest funds to the Company, and conduct accounting treatment according to the following principles:
1. Where the financial department allocates the discount interest funds to the lending bank, and the lending bank provides the
loan to the Company at the preferential policy interest rate, the Company shall take the actual amount of the loan received as
the entry value of the loan, and calculate the relevant borrowing costs according to the loan principal and the preferential
policy interest rate.
2. Where the financial department directly allocates discount interest funds to the Company, the Company will write down the
corresponding discount interest against the relevant borrowing costs.
If the government subsidy confirmed by the Company needs to be returned, the accounting treatment shall be carried out in
accordance with the following provisions in the current situation of the return:
1) The book value of related assets is adjusted if it is offset upon initial recognition.
2) For those with related deferred income, the book balance of related deferred income is written down and the excess is
accounted into the current profits and losses.
3) In the other cases, they are directly accounted into the current profits and losses.
40. Deferred income tax assets / deferred income tax liabilities
The Company's deferred income tax assets and deferred income tax liabilities are calculated and recognized according to the
difference (temporary difference) between the tax base and book value of the assets and liabilities. For the deductible loss that can
be carried forward to the subsequent year according to the tax law, the corresponding deferred income tax assets are recognized.
For the deductible temporary differences related to the initial recognition of the goodwill, the corresponding deferred income tax
liabilities are not recognized. For the temporary differences related to the initial recognition of the assets or liabilities incurred in
the transaction not for business combination that will not affect the accounting profits and income tax payable (or deductible loss),
the corresponding deferred income tax assets and liabilities are not recognized. The deferred income tax assets and deferred
income tax liabilities are measured on the balance sheet date according to the applicable tax rate in the period of expected recovery
of relevant assets of liquidation of relevant liabilities.
The Company recognizes the deferred income tax assets by deductible temporary differences, within the limit of the income tax
payable that may be obtained in the future and used to offset the deductible temporary differences, the deductible loss and tax
deduction.
41. Lease
(1) Accounting treatment method of lease as lessee
1) Lease recognition
On the beginning date of the lease term, the Company recognizes the right-of-use assets and lease liabilities. See Note IV "24.
Right-of-use assets" and "31. Lease liabilities" for the recognition and measurement of right-of-use assets and lease liabilities.
2) Lease change
Lease change refers to the change of lease scope, lease consideration and lease term beyond the terms of the original contract,
including adding or terminating the right to use one or more leased assets, extending or shortening the lease term specified in the
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contract, etc. The effective date of the lease change refers to the date when both parties reach an agreement on the lease change.
If the lease changes and meets the following conditions, the Company will treat the lease change as a separate lease for accounting:
① the lease change expands the lease scope or extends the lease term by adding the right to use one or more leased assets; ② The
increased consideration is equivalent to the amount of the separate price of the extended part of the lease scope or the extended
part of the lease term as adjusted according to the conditions of the contract.
If the lease change is not treated as a separate lease, on the effective date of the lease change, the Company will apportion the
consideration of the changed contract in accordance with the relevant provisions of the lease standards and re-determine the lease
term after the change; The revised discount rate is adopted to discount the changed lease payment to re-measure the lease liabilities.
When calculating the present value of the lease payment after the change, the Company adopts the interest rate implicit in lease
during the remaining lease period as the discount rate; If the interest rate implicit in lease cannot be determined for the remaining
lease period, the Company will adopt the lessee's incremental loan interest rate on the effective date of the lease change as the
discount rate. With regard to the impact of the above adjustment of lease liabilities, the Company shall distinguish the following
circumstances for accounting treatment: ① if the lease scope is reduced or the lease term is shortened due to the lease change, the
lessee shall reduce the book value of the right-of-use assets, and include the relevant gain or loss of lease under partial or complete
termination into the current profit and loss. ② If the lease liabilities are re-measured due to other lease changes, the lessee shall
adjust the book value of the right-of-use assets accordingly.
3) Short-term lease and low-value asset lease
The Company chooses not to recognize the right-of-use assets and lease liabilities for short-term lease with a lease term of no
more than 12 months and low-value asset lease with a lower value when the single leased asset is a brand-new asset. The
Company will record the lease payment of short-term lease and low-value asset lease into the relevant asset cost or current profit
and loss according to the straight-line method or other systematic and reasonable methods during each period of the lease term.
(2) Accounting treatment method of lease as lessor
On the basis that (1) the evaluated contract is related to lease or includes a lease, the Company, as the lessor, divides the lease into
finance lease and operating lease on the commencement date of the lease.
If a lease substantially transfers almost all the risks and rewards related to the ownership of the leased assets, the lessor classifies
such lease as a finance lease, and other leases other than finance leases as operating leases.
For a lease under one or more of the following circumstances, the Company usually classifies it as a finance lease: ① when the
lease term expires, the ownership of the leased asset is transferred to the lessee; ② The lessee has the option to purchase the leased
asset, and the purchase price is low enough compared with fair value of the leased asset when the option is expected to be
exercised, so it can be reasonably determined that the lessee will exercise the option on the commencement date of the lease; ③
Although the ownership of the asset is not transferred, the lease term accounts for most of the service life of the leased asset (no
less than 75% of the service life of the leased asset); ④ On the commencement date of the lease, the present value of the lease
receipts is almost equal to fair value of the leased asset (no less than 90% of the fair value of the leased asset) ; ⑤ The property of
the leased asset is special. If no major transformation is made, only the lessee can use it. In case of one or more of the following
signs in a lease, the Company may also classify it as a finance lease: ① if the lessee cancels the lease, and the loss to the lessor
caused by the thereby is borne by the lessee; ② The gains or losses arising from the fluctuation of the fair value of the residual
value of assets belong to the lessee; ③ The lessee has the ability to continue the lease for the next period at a rent far below the
market level.
1) Finance lease accounting treatment
Initial measurement
On the beginning date of the lease term, the Company recognizes the finance lease receivables for the finance lease and terminates
the recognition of the finance lease assets. When the Company initially measures the finance lease receivables, the net amount of
the lease investment is taken as the entry value of the finance lease receivables.
The net amount of the lease investment is the sum of the unguaranteed residual value and the present value of the lease receipts not
received on the beginning date of the lease term discounted at the interest rate implicit in lease. Lease receipts refer to the amount
that the lessor should collect from the lessee due to the assignment of the right to use the leased assets during the lease term,
including: ① The fixed payment and substantial fixed payment to be paid by the lessee. In case of a lease incentive, the amount
related to lease incentive shall be deducted; ② The amount of variable lease payments depending on the index or ratio, which is
determined at the initial measurement according to the index or ratio on the beginning date of the lease term; ③ The exercise price
of the call option, provided that it is reasonably determined that the lessee will exercise the option; ④ The amount to be paid by
the lessee to exercise the option to terminate the lease, provided that the lease term reflects that the lessee will exercise the
termination option; ⑤ The guarantee residual value provided by the lessee, the party related to the lessee and an independent third
party with the financial ability to perform the guarantee obligation to the lessor.
Subsequent measurement
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The Company calculates and recognizes the interest income of each period within the lease term according to the fixed periodic
interest rate. The periodic interest rate refers to the implicit discount rate used to determine the net investment of the lease (in the
case of sublease, if the interest rate implicit in lease of the sublease cannot be determined, the discount rate of the original lease
shall be adopted (adjusted according to the initial direct expenses related to the sublease)), or the change of the finance lease is not
accounted for as a separate lease, and if the change takes effect on the commencement date of the lease, the revised discount rate
as determined according to relevant regulations is adopted when the lease will be classified as finance lease conditions.
Accounting treatment of lease change
If the financial lease changes and meets the following conditions, the Company will treat the change as a separate lease for
accounting: ① the change expands the lease scope by adding the right to use one or more leased assets; ② The increased
consideration is equivalent to the amount of the separate price of the extended part of the lease scope as adjusted according to the
conditions of the contract.
If the change of a finance lease is not accounted for as a separate lease and meets the conditions that if the change takes effect on
the commencement date of the lease and the lease will be classified as an operating lease, the Company will account for it as a new
lease from the effective date of the lease change, and take the net investment of the lease before the effective date of the lease
change as the book value of the leased asset.
2) Accounting treatment of operating lease
Treatment of rent
During each period of the lease term, the Company adopts the straight-line method / other systematic and reasonable methods to
recognize the lease receipts of operating lease as rental income.
Incentives provided
If the rent-free period is provided, the Company will apportioned the total rent according to the straight-line method / other
reasonable methods in the whole lease period without deducting the rent-free period, and the rent income shall be recognized
during the rent-free period. If the Company bears some expenses of the lessee, the expenses shall be deducted from the total rental
income and apportioned within the lease term according to the balance of rental income after deduction.
Initial direct costs
The initial direct expenses incurred by the Company in connection with the operating lease shall be capitalized to the cost of the
underlying assets of the lease and included in the current profit and loss by stages on the same recognition basis as the rental
income during the lease term.
Depreciation
For the fixed assets in the operating leased assets, the Company adopts the depreciation policy of similar assets for depreciation;
Other operating leased assets are amortized in systematic and reasonable methods.
Variable lease payments
The variable lease payments obtained by the Company related to operating lease that are not included in the lease receipts are
included in the current profit and loss when actually incurred.
Change of operating lease
If the operating lease is changed, the Company will treat it as a new lease for accounting since the effective date of the change.
The amount of advance receipts or lease receivables related to the lease before the change is regarded as the amount of new lease
receipts.
42. Other significant accounting policy and accounting estimate
When preparing the financial statements, the management of the Company is required to use estimates and assumptions, which
will have an impact on the application of accounting policies and the amount of assets, liabilities, income and expenses. The actual
situation may differ from these estimates. The management of the Company continuously evaluates the judgment of key
assumptions and uncertainties involved in the estimates. The impact of changes in accounting estimates shall be recognized in the
current and future periods of the changes.
The following accounting estimates and key assumptions have significant risks that will lead to major adjustments to the book
value of assets and liabilities in the future periods:
(1) Financial assets impairment
The expected credit loss model is adopted to evaluate the impairment of financial instruments in the financial assets impairment,
which requires major judgment and estimates and requires considering all reasonable and substantiated information, including
forward-looking information. In making such judgments and estimates, the Company deduces the expected changes of the debtor's
credit risks based on historical data combined with economic policies, macroeconomic indicators, industrial risks, external market
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environment, technical environment, changes in customer conditions and other factors.
(2) Provision for inventory impairment
Basis for determining the net realizable value of inventories: the net realizable value of merchandise inventory, materials for sale
and other merchandise inventories directly used for sale is recognized by the amount of the estimated sale price of the inventories
subtracted by the estimated selling expenses and related taxes; For the inventories held to perform the sales contract or labor
contract, the net realizable value is calculated on the basis of contract price; If the number of the inventories held by the enterprise
is greater than the quantity ordered in the sales contract, the net realizable value of the excessive inventories is calculated on the
basis of general sale price.
The method for inventory falling price reserves: it is priced according to the lower of the year-end inventory and the net realizable
value. At the end of the period, on the basis of a comprehensive inventory of the inventories, the inventory falling price reserves
are withdrawn for the part of its cost is expected to be non-recoverable due to the inventory damage, full or partial obsolescence or
selling price below the cost.
If the influence factors writing down the inventory value before have disappeared, resulting in the net realizable value of the
inventories higher than the book value, the amount written down shall be restored and reversed within the originally withdrawn
amount of inventory falling price reserves and the amount reversed is included in current profit and loss.
(3) Accounting estimates of provision for impairment of goodwill
The Company conducts impairment test on goodwill every year. The recoverable amount of asset group or the combination of
asset groups containing goodwill is the present value of its estimated future cash flows, which need to be calculated using
accounting estimates.
If the management revises the gross margin ratio used in the calculation of future cash flows of asset group and the combination of
asset groups, and the revised gross margin ratio is lower than the current gross margin ratio, the Company needs to withdraw
impairment provision for the increase of goodwill.
If the management revises the pre-tax discount rate used for cash flow discount, and the revised gross margin ratio is higher than
the current gross margin ratio, the Company needs to withdraw impairment provision for the increase of goodwill.
If the actual gross margin ratio or pre-tax discount rate is higher or lower than the management's estimates, the Company cannot
reverse the originally accrued goodwill impairment loss.
(4) Accounting estimates of impairment provisions for fixed assets
The Company conducts impairment test on fixed assets such as houses, buildings, machinery and equipment with signs of
impairment on the balance sheet date. The recoverable amount of fixed assets is the higher of the present value of its estimated
future cash flows and the net value of the fair value of the assets minus the disposal expense, which need to be calculated using
accounting estimates.
If the management revises the gross margin ratio used in the calculation of future cash flows of asset group and the combination of
asset groups, and the revised gross margin ratio is lower than the current gross margin ratio, the Company needs to withdraw
impairment provision for the increase of fixed assets.
If the management revises the pre-tax discount rate used for cash flow discount, and the revised gross margin ratio is higher than
the current gross margin ratio, the Company needs to withdraw impairment provision for the increase of fixed assets.
If the actual gross margin ratio or pre-tax discount rate is higher or lower than the management's estimates, the Company cannot
reverse the originally accrued impairment provisions for fixed assets.
(5) Accounting estimates for deferred income tax asset recognition
The estimation of deferred income tax assets requires an estimate of the taxable income and applicable tax rate of each year in the
future. The realization of deferred income tax assets depends on whether the Group is likely to obtain sufficient taxable income in
the future. Changes in future tax rates and the reversal time of temporary differences may also affect income tax expenses (income)
and the balance of deferred income tax. Changes in the above estimates may result in significant adjustments to deferred income
tax.
(6) Useful life of fixed assets and intangible assets
The Company shall review the expected service life of fixed assets and intangible assets at least at the end of each year. The
estimated service life is determined by the management based on the historical experience of similar assets, with reference to the
estimates commonly used in the same industry and in combination with the expected technical updates. When there are significant
changes in previous estimates, the depreciation expenses and amortization expenses for the future period shall be adjusted
accordingly.
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43. Significant accounting policy and accounting estimate change
(1) Changes in significant accounting policies
Applicable □ Not applicable
Unit: yuan
Name item significantly
Content and reasons of changes in accounting policies Amount affected
affected
On December 13, 2022, the Ministry of Finance issued the Notice on
Issuance of Interpretation of Accounting Standards for Business
Enterprises No.16 (C.K. [2022] No. 31), in which: "the deferred income
tax related to assets and liabilities arising from individual transactions shall
not be applicable to the accounting treatment of initial recognition
exemption" takes effect on January 1, 2023; The contents of "accounting Deferred income tax assets,
0
treatment for the income tax impact of dividends related to financial deferred income tax liabilities
instruments classified by the issuer as equity instruments" and "accounting
treatment on the modification of cash-settled share-based payments to
equity-settled share-based payments" come into force from the date of
promulgation. The Company has implemented the Standard Interpretation
No.16 since January 01, 2023.
(2) Significant accounting estimate change
□ Applicable Not applicable
(3) Adjustment of relevant items in financial statements at the beginning of first implementation year as
a result of first implementation of new accounting standards from 2023
□ Applicable Not applicable
44. Other
VI. Tax
1. Main tax categories and tax rates
Tax category Taxation basis Tax rate
Income from selling commodities,
Added value tax technical service income, and income from 13%, 16%, 15%
house lease
Urban maintenance and construction tax Turnover tax payable 7%
Corporate income tax Income tax payable 15%, 25%, 20%
Education surcharge Turnover tax payable 3%
Surcharge for local education Turnover tax payable 2%
70% of original value of the property,
Housing property tax 1.2%, 12%
rental income
Land use tax Total land area 5-10 yuan/m2
If there are taxpayers with different enterprise income tax rates, the disclosure statement shall present
Name of taxpayer Income tax rate
Hangzhou ROBAM Appliances Co., Ltd. 15%
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. 15%
Zhejiang Cooking Future Technology Co., Ltd. 15%
Beijing ROBAM Electric Appliance Sales Co., Ltd. 25%
Shanghai ROBAM Electric Appliance Sales Co., Ltd. 25%
Hangzhou Mingqi Electric Co., Ltd. 25%
Dize Home Appliances Trading (Shanghai) Co., Ltd. 25%
Hangzhou ROBAM Fuchuang Investment Management Co., Ltd. 20%
Hangzhou Jinhe Electric Appliances Co., Ltd 25%
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ROBAM Appliances (Hong Kong) Holdings Limited*1 Two-tier tax system
ROBAM International (Hong Kong) Trading Co., Ltd. *1 Two-tier tax system
*1: ROBAM Appliances (Hong Kong) Holdings Limited and ROBAM International (Hong Kong) Trading Co.,
Ltd., the subsidiaries of the Company, are subject to the profit tax policy in Hong Kong, China, and are subject
to a two-tier system of profit tax. That is, the taxable profits not exceeding HKD 2,000,000 are subject to a
profit tax rate of 8.25%, and the portion of taxable profits exceeding HKD 2,000,000 is subject to a profit tax
rate of 16.50%.
2. Tax preference
Preferential policies for income tax
On December 08, 2023, the Science Technology Department of Zhejiang Province, Zhejiang Provincial Department of Finance,
Zhejiang Provincial Tax Service of State Taxation Administration and Zhejiang Taxation Bureau jointly issued a high-tech
enterprise certificate (No. GR202333003384) and the Company passed the high-tech enterprise identification for 3 years.
According to relevant regulations, after passing the high-tech enterprise identification, the Company can enjoy the relevant
preferential policies of the state on high-tech enterprises for three consecutive years (i.e., the income tax preference period from
January 01, 2023 to December 31, 2025), and the enterprise income tax shall be levied at the rate of 15%.
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. (hereinafter referred to as Shengzhou Kinde), a subsidiary of the Company,
obtained the high-tech enterprise certificate (No. GR202233010421) jointly issued by the Science Technology Department of
Zhejiang Province, Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service of State Taxation
Administration on December 24, 2022 and passed the high-tech enterprise identification. The Company can enjoy the relevant
preferential policies of the state on high-tech enterprises for three consecutive years (i.e., the income tax preference period from
January 1, 2022 to December 31, 2024), and the enterprise income tax shall be levied at the rate of 15%.
Hangzhou ROBAM Fuchuang Investment Management Co., Ltd., a subsidiary of the Company, reduced the taxable income of
small and micro enterprises by 25% according to the Announcement on Tax Policies for Further Supporting the Development of
Small and Micro Enterprises and Individual Business Owners (Announcement [2023] No.12) issued by of the Ministry of Finance
and the State Administration of Taxation, and continued to pay corporate income tax at a rate of 20% until December 31, 2027.
Preferential policies for added-value tax
According to the Notice of the Ministry of Finance and the State Administration of Taxation on VAT Policies for Software
Products (C.S. [2011] No. 100), the Company's embedded software sales products enjoy the value-added tax refunded as soon as
they are collected.
According to the Announcement on VAT Credit Policy for Advanced Manufacturing Enterprises (Announcement [2023] No.43)
issued by of the Ministry of Finance and the State Administration of Taxation, from January 1, 2023 to December 31, 2027, the
Company will be entitled to an additional credit policy for advanced manufacturing enterprises to offset the VAT payable by
adding 5% to the deductible input tax in the current period.
3. Other
VII. Notes to Items in Consolidated Financial Statements
1. Monetary capital
Unit: yuan
Item Ending balance Beginning balance
Cash on hand 62,267.64 85,806.05
Bank deposit 1,877,703,911.46 5,194,887,841.18
Other monetary capital 107,284,566.01 97,789,023.71
Total 1,985,050,745.11 5,292,762,670.94
Including: Total amount deposited
3,588,900.00
abroad
Other description:
Note: Other monetary capital is RMB 107,284,566.01, of which the L/C deposit of RMB 83,153,343.90, bill acceptance deposit of
RMB 23,717,043.12 and ETC deposit of RMB 14,000.00 are limited funds, Alipay balance and Wechat balance of RMB
400,178.99 are non-limited funds that can be withdrawn at any time.
Use of restricted monetary funds
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Item Year-end balance Year-beginning balance
Guarantee deposit 83,153,343.90 76,092,305.89
Bill deposit 23,717,043.12 20,243,023.31
ETC deposit 14,000.00 13,000.00
Total 106,884,387.02 96,348,329.20
2. Trading financial assets
Unit: yuan
Item Ending balance Beginning balance
Financial assets measured with fair value
and with the changes included in current 2,730,000,000.00 2,511,844,508.00
profit and loss
Where:
Financial products 2,730,000,000.00 2,511,844,508.00
Where:
Total 2,730,000,000.00 2,511,844,508.00
3. Notes receivable
(1) Classified presentation of notes receivable
Unit: yuan
Item Ending balance Beginning balance
Bank acceptance bill 690,184,154.22 609,791,571.72
Trade acceptance 6,100,777.42 271,981,769.99
Total 696,284,931.64 881,773,341.71
(2) Classified disclosure by bad debt provision method
Unit: yuan
Ending balance Beginning balance
Provision for bad
Book balance Book balance Provision for bad debt
debt
Category Accruin Book
Accruing Book value
g value Proportio
Amount Proportion Amount Amount Amount proportio
proporti n
n
on
Notes receivable of
12,553,20
provision for bad 1.39% 6,659,943.22 53.05% 5,893,262.58
5.80
debt by single item
Where:
Notes receivable of
provision for bad 321,093 696,284,93 889,884,7
696,606,025.20 100.00% 0.05% 98.61% 14,004,658.56 1.57% 875,880,079.13
debt by .56 1.64 37.69
combination
Where:
Bank acceptance 690,184,15 609,791,5
690,184,154.22 99.08% 67.57% 609,791,571.72
bill 4.22 71.72
321,093 6,100,777. 280,093,1
Trade acceptance 6,421,870.98 0.92% 5.00% 31.04% 14,004,658.56 5.00% 266,088,507.41
.56 42 65.97
321,093 696,284,93 902,437,9
Total 696,606,025.20 100.00% 0.05% 100.00% 20,664,601.78 2.29% 881,773,341.71
.56 1.64 43.49
Provision for bad debt by single item: Notes receivable are provided for bad debts by single item
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Unit: yuan
Beginning balance Ending balance
Name Provision for bad Provision for bad Accruing Reasons for
Book balance Book balance
debt debt proportion provision
Unit 1 9,336,504.18 4,668,252.09
Unit 2 1,300,000.00 650,000.00
Unit 3 1,042,901.00 730,030.70
Unit 4 750,731.20 525,511.84
Unit 5 123,069.42 86,148.59
Total 12,553,205.80 6,659,943.22
Provision for bad debt by combination: Notes receivable are provided for bad debts by combination
Unit: yuan
Ending balance
Name
Book balance Provision for bad debt Accruing proportion
Banker's acceptance bill
690,184,154.22
combination
Commercial acceptance bill
6,421,870.98 321,093.56 5.00%
combination
Total 696,606,025.20 321,093.56
Description of the basis for determining the combination:
If the bad debt provision of notes receivable is withdrawn according to the general model of expected credit loss:
□ Applicable Not applicable
(3) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
Changes in amount in current period
Category Beginning balance Recovered Canceled after Ending balance
Provision Other
or reversed verification
Commercial
20,664,601.78 -20,343,508.22 321,093.56
acceptance bill
Total 20,664,601.78 -20,343,508.22 321,093.56
Where the amount of bad debt provision recovered or transferred back is important:
□ Applicable Not applicable
4. Accounts receivable
(1) Disclosure by aging
Unit: yuan
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 1,557,020,494.66 1,414,611,796.19
1 to 2 years 541,557,234.61 1,310,592,988.91
2 to 3 years 886,738,162.41 52,140,042.25
More than 3 years 48,881,334.70 15,604,054.43
3 to 4 years 35,197,495.87 8,167,899.77
4 to 5 years 6,690,817.20 5,260,654.01
More than 5 years 6,993,021.63 2,175,500.65
Total 3,034,197,226.38 2,792,948,881.78
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(2) Classified disclosure by bad debt provision method
Unit: yuan
Ending balance Beginning balance
Book balance Provision for bad debt Book balance Provision for bad debt
Category Accruin Accruin
g Book value Proport g Book value
Amount Proportion Amount Amount Amount
proporti ion proporti
on on
Accounts
receivable of 1,645,394,9 1,131,734,8 513,660,02 1,639,679, 1,030,780,6
54.23% 68.78% 58.71% 62.86% 608,898,619.62
provision for bad 06.63 80.57 6.06 315.79 96.17
debt by single item
Where:
Accounts
receivable of
1,388,802,3 92,446,749. 1,296,355,5 1,153,269, 72,561,356.
provision for bad 45.77% 6.66% 41.29% 6.29% 1,080,708,209.32
19.75 48 70.27 565.99 67
debt by
combination
Where:
1,388,802,3 92,446,749. 1,296,355,5 1,153,269, 72,561,356.
Aging combination 45.77% 6.66% 41.29% 6.29% 1,080,708,209.32
19.75 48 70.27 565.99 67
3,034,197,2 1,224,181,6 1,810,015,5 2,792,948, 100.00 1,103,342,0
Total 100.00% 40.35% 39.50% 1,689,606,828.94
26.38 30.05 96.33 881.78 % 52.84
Provision for bad debt by single item: Accounts receivable are provided for bad debts by single item
Unit: yuan
Beginning balance Ending balance
Name Provision for bad Accruing
Book balance Book balance Provision for bad debt Reasons for provision
debt proportion
Expected to be difficult
Unit 1 657,344,204.78 657,344,204.78 660,039,726.23 660,039,726.23 100.00%
to recover
Expected to be difficult
Unit 2 607,891,265.65 182,367,379.68 388,093,418.16 116,428,025.44 30.00%
to fully recover
Expected to be difficult
Unit 3 201,626,455.66 86,259,958.01 42.78%
to fully recover
Expected to be difficult
Unit 4 112,811,043.19 42,342,003.78 103,644,563.87 62,549,255.29 60.35%
to fully recover
Expected to be difficult
Unit 5 80,690,330.78 56,483,231.55 78,105,963.23 78,105,963.23 100.00%
to recover
Expected to be difficult
Unit 6 26,306,236.78 5,261,247.36 29,833,027.36 20,883,119.15 70.00%
to fully recover
Expected to be difficult
Unit 7 20,263,294.09 5,751,727.45 28,796,628.81 12,808,177.77 44.48%
to fully recover
Expected to be difficult
Unit 8 27,754,259.57 18,956,340.20 25,826,189.64 17,748,183.70 68.72%
to fully recover
Expected to be difficult
Unit 9 21,370,090.54 14,959,063.38 22,983,529.61 15,004,193.26 65.28%
to fully recover
Expected to be difficult
Unit 10 15,100,611.29 8,471,506.90 56.10%
to fully recover
Expected to be difficult
Unit 11 14,139,851.56 8,965,986.59 13,643,117.43 7,265,607.25 53.25%
to fully recover
Expected to be difficult
Unit 12 16,210,905.78 11,325,134.05 11,403,482.66 6,897,017.86 60.48%
to fully recover
Expected to be difficult
Unit 13 10,185,685.90 2,157,682.25 9,391,156.30 4,698,425.06 50.03%
to fully recover
Expected to be difficult
Unit 14 8,009,318.82 2,345,903.11 8,175,007.62 3,440,071.29 42.08%
to fully recover
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Beginning balance Ending balance
Name Provision for bad Accruing
Book balance Book balance Provision for bad debt Reasons for provision
debt proportion
Expected to be difficult
Unit 15 9,475,265.17 6,632,685.62 7,305,800.75 5,114,060.53 70.00%
to fully recover
Expected to be difficult
Unit 16 4,025,730.93 2,818,011.65 3,921,670.93 2,745,169.65 70.00%
to fully recover
Expected to be difficult
Unit 17 3,616,362.19 2,531,453.53 70.00%
to fully recover
Expected to be difficult
Unit 18 3,317,253.79 1,554,840.55 46.87%
to fully recover
Expected to be difficult
Unit 19 3,310,609.08 1,715,551.82 51.82%
to fully recover
Expected to be difficult
Unit 20 3,056,422.32 1,145,907.85 37.49%
to fully recover
Expected to be difficult
Unit 21 23,201,832.25 13,070,094.72 24,203,909.70 16,328,666.20 67.46%
to fully recover
Total 1,639,679,315.79 1,030,780,696.17 1,645,394,906.63 1,131,734,880.57
Provision for bad debt by combination: accounts receivable of provision for bad debt by expected credit loss combination based on
aging features
Unit: yuan
Ending balance
Name
Book balance Provision for bad debt Accruing proportion
Within 1 year 1,194,156,033.42 59,707,801.66 5.00%
1~2 years 134,766,796.33 13,476,679.63 10.00%
2~3 years 43,529,531.79 8,705,906.36 20.00%
3~4 years 10,346,739.51 5,173,369.76 50.00%
4~5 years 3,101,133.17 2,480,906.54 80.00%
More than 5 years 2,902,085.53 2,902,085.53 100.00%
Total 1,388,802,319.75 92,446,749.48
Description of the basis for determining the combination:
If the bad debt provision of accounts receivable is withdrawn according to the general model of expected credit loss:
□ Applicable Not applicable
(3) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
Changes in amount in current period
Category Beginning balance Recovered or Canceled after Ending balance
Provision Other
reversed verification
Provision for
bad debt of
1,103,342,052.84 220,247,079.47 98,986,397.46 421,104.80 1,224,181,630.05
accounts
receivable
Total 1,103,342,052.84 220,247,079.47 98,986,397.46 421,104.80 1,224,181,630.05
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Where the amount of bad debt provision recovered or transferred back is important:
Unit: yuan
The basis and rationality
Recovered or reversed for determining the
Unit name Reason for reversal Recovery mode
amount proportion of the original
bad debt provision
Bank transfer, deduction
Unit 1 221,825,902.65
of fees
Bank transfer, house
Unit 2 15,782,678.82
mortgage
Bank transfer, house
Unit 3 7,084,588.48
mortgage
Bank transfer, house
Unit 4 6,187,078.87
mortgage
Bank transfer, house
Unit 5 6,076,928.75
mortgage
Bank transfer, house
Unit 6 3,888,813.74
mortgage
Bank transfer, house
Unit 7 3,883,348.75
mortgage
Bank transfer, house
Unit 8 2,483,437.46
mortgage
Bank transfer, house
Unit 9 1,849,551.00
mortgage
Bank transfer, house
Unit 10 1,773,645.05
mortgage
Bank transfer, house
Unit 11 1,392,336.16
mortgage
Bank transfer, house
Unit 12 891,142.34
mortgage
Bank transfer, house
Unit 13 848,351.74
mortgage
Bank transfer, house
Unit 14 1,709,927.91
mortgage
Total 275,677,731.72
(4) Accounts receivable actually written off at the current period
Unit: yuan
Item Write-off amount
Accounts receivable written off actually 421,104.80
Write-off of important accounts receivable:
Unit: yuan
Arising
from
Nature of accounts Write-off Cause for Write-off
Name of creditor related
receivable amount write-off procedures
transact
ions
Expected Approval by
Unit 1 payment for goods 115,502.00 No
irrecoverable management
Expected Approval by No
Unit 2 payment for goods 92,977.60
irrecoverable management
Expected Approval by No
Unit 3 payment for goods 87,416.37
irrecoverable management
Expected Approval by No
Unit 4 payment for goods 41,159.00
irrecoverable management
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Expected Approval by No
Unit 5 payment for goods 27,800.00
irrecoverable management
Subtotal of other accounts Expected Approval by No
payment for goods 56,249.83
receivable irrecoverable management
Total -- 421,104.80 -- -- --
(5) Account receivable and contract assets with top 5 ending balances by debtor
Unit: yuan
Ending balance of
bad debt provision
Proportion in total
Ending balance of of accounts
Ending balance of Ending balance of ending balance of
Unit name accounts receivable receivable and
accounts receivable contract assets accounts receivable
and contract assets impairment
and contract assets
provisions of
contract assets
Unit 1 452,376,997.98 452,376,997.98 14.91% 452,376,997.98
Unit 2 388,093,418.16 388,093,418.16 12.79% 116,428,025.45
Unit 3 193,644,110.23 193,644,110.23 6.38% 9,682,205.51
Unit 4 171,043,456.25 171,043,456.25 5.64% 8,552,172.81
Unit 5 140,791,195.62 140,791,195.62 4.64% 72,571,251.10
Total 1,345,949,178.24 1,345,949,178.24 44.36% 659,610,652.85
5. Other receivables
Unit: yuan
Item Ending balance Beginning balance
Other receivables 53,368,667.34 80,429,057.84
Total 53,368,667.34 80,429,057.84
1) Other receivables classified by nature
Unit: yuan
Nature of payment Ending book balance Beginning book balance
Deposit and margin 35,077,788.86 38,184,552.92
Collection by third party 26,915,796.30 50,695,825.81
Withheld amount 4,274,188.53 4,898,268.76
Imprest 2,365,967.91 2,601,040.33
Project mortgage property 2,094,110.00
Other 330,098.34 519,033.02
Total 71,057,949.94 96,898,720.84
2) Disclosure by aging
Unit: yuan
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 42,909,446.18 70,253,063.08
1 to 2 years 6,665,944.46 9,080,735.82
2 to 3 years 6,322,210.28 4,279,573.74
More than 3 years 15,160,349.02 13,285,348.20
3 to 4 years 3,591,477.42 2,965,976.80
4 to 5 years 2,146,271.80 3,046,691.50
More than 5 years 9,422,599.80 7,272,679.90
Total 71,057,949.94 96,898,720.84
3) Classified disclosure by bad debt provision plan
Category Ending balance Beginning balance
Book balance Provision Book value Book balance Provision for Book value
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for bad debt bad debt
Amount Proportion Amount Accruing Amount Proporti Amount Accruing
proportion on proportion
Provision for bad 2,362,320.00 3.32% 945,141.50 40.01% 1,417,178.5
debt by single item 0
Where:
Provision for bad 68,695,629.94 96.68% 16,744,141. 24.37% 51,951,488. 96,898,720.8 100.00% 16,469,663.0 17.00% 80,429,057.8
debt by combination 10 84 4 0 4
Where:
Aging combination 68,695,629.94 96.68% 16,744,141. 24.37% 51,951,488. 96,898,720.8 100.00% 16,469,663.0 17.00% 80,429,057.8
10 84 4 0 4
Total 71,057,949.94 100.00% 17,689,282. 24.89% 53,368,667. 96,898,720.8 100.00% 16,469,663.0 17.00% 80,429,057.8
60 34 4 0 4
4) Other receivables of which bad debt provision are made in accordance with the general model of
expected credit loss
Stage 1 Stage 2 Stage 3
Expected credit losses
Provision for bad debt Expected credit Expected credit losses Total
over the entire duration
losses over the next over the entire duration
(without credit
12 months (with credit impairment)
impairment)
Balance on January 1, 2023 16,469,663.00 16,469,663.00
Balance on January 1, 2023 in
current period
-- Transferred to stage 2
-- Transferred to stage 3
-- Reserved to stage 2
-- Reserved to stage 1
Withdrawn in current period 274,478.10 756,941.50 188,200.00 1,219,619.60
Reversal in current period
Writing-off in current period
Canceled after verification in
current period
Other alterations
Balance on December 31, 2023 16,744,141.10 756,941.50 188,200.00 17,689,282.60
5) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
Changes in amount in current period
Category Beginning balance Recovered or Write-off or Ending balance
Provision Other
reversed verification
Provision for bad
debt of other 16,469,663.00 1,219,619.60 17,689,282.60
receivables
Total 16,469,663.00 1,219,619.60 17,689,282.60
101
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
6) Other receivables with top 5 ending balances by debtor
Unit: yuan
Proportion in total
Ending balance of
Unit name Nature of payment Ending balance Aging other ending balance
bad debt provision
receivable
Third party
Unit 1 16,946,133.99 Within 1 year 23.85% 847,306.70
Collections
Unit 2 Deposit 4,928,000.00 More than 5 years 6.94% 4,928,000.00
Unit 3 Withheld amount 3,442,166.31 Within 1 year 4.84% 172,108.32
Third party
Unit 4 2,228,080.41 Within 1 year 3.14% 111,404.02
Collections
Third party
Unit 5 1,899,454.80 0~2 years 2.67% 100,572.74
Collections/cash
deposit
Total 29,443,835.51 41.44% 6,159,391.78
6. Advances to suppliers
(1) Presentation of advances to suppliers by aging
Unit: yuan
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 136,637,538.73 97.80% 176,828,710.59 99.62%
1 to 2 years 3,055,581.83 2.19% 331,685.80 0.19%
2 to 3 years 15,823.01 0.01% 309,887.50 0.17%
More than 3 years 4,528.01 30,069.48 0.02%
Total 139,713,471.58 177,500,353.37
(2) Advances to suppliers with top 5 ending balances by prepayment object
The total amount of advances to suppliers with top 5 ending balances by prepayment object in the current year was RMB
73,292,748.68, accounting for 52.46% of total number of ending balance of advances to suppliers.
7. Inventory
Does the Company need to follow the disclosure requirements of real estate industry
No
(1) Inventory classification
Unit: yuan
Ending balance Beginning balance
Inventory falling Inventory falling
Item price reserves or price reserves or
Book balance provision for Book value Book balance provision for Book value
impairment of impairment of
contract contract
102
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2023 Full Annual Report
performance performance
costs costs
Raw materials 81,308,915.01 81,308,915.01 124,228,344.80 124,228,344.80
Work in process 98,820,705.86 98,820,705.86 110,725,274.36 110,725,274.36
Merchandise
434,195,084.18 33,339,505.13 400,855,579.05 433,960,199.87 38,422,564.56 395,537,635.31
inventory
Contract
35,371,916.75 35,371,916.75 44,135,708.88 44,135,708.88
performance cost
Semi-finished
products shipped 891,904,804.32 30,351,019.85 861,553,784.47 946,934,786.68 34,166,612.43 912,768,174.25
in transit
Low priced and
easily worn
46,363,819.10 46,363,819.10 22,715,660.50 22,715,660.50
articles and
wrappage
Total 1,587,965,245.22 63,690,524.98 1,524,274,720.24 1,682,699,975.09 72,589,176.99 1,610,110,798.10
(2) Inventory falling price reserves and provision for impairment of contract performance costs
Unit: yuan
Amount increased in current
Amount decreased in current period
period
Item Beginning balance Ending balance
Reversed or
Provision Other Other
written off
Merchandise
38,422,564.56 585,473.49 5,668,532.92 33,339,505.13
inventory
Semi-finished
products shipped 34,166,612.43 5,351,784.20 9,167,376.78 30,351,019.85
in transit
Total 72,589,176.99 5,937,257.69 14,835,909.70 63,690,524.98
(3) Other debt investment due within one year
8. Other current assets
Unit: yuan
Item Ending balance Beginning balance
Time deposit within one year 2,563,744,300.00
Accrued interest on time deposits 81,146,657.65
Prepaid tax 2,917,663.05 1,334.25
Pending deduct VAT on purchase 333,014.51
Total 2,647,808,620.70 334,348.76
9. Other equity instrument investments
Unit: yuan
Cause for
Losses
Gains Gains Divide designation
included
included accumulated Losses nd to measure at
in other
in other in other accumulated in incom fair value of
compreh
Beginning comprehe comprehensi other e which
Item name Ending balance ensive
balance nsive ve income at comprehensive recogn changes are
income
income in the end of income at the end ized in recorded into
in
current current of current period current other
current
period period period comprehensi
period
ve income
Suzhou
Industrial
100,000,000.00
Park Ruican
Investment
103
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Enterprise
(limited
partnership)
Shanghai
MXCHIP
Information 2,116,023.22 2,116,023.22 17,832,510.78
Technology
Co., Ltd.
Total 2,116,023.22 2,116,023.22 117,832,510.78
10. Long-term equity investment
Unit: yuan
Begi Increase or decrease in current period
nnin Adju Balanc
g stme e of
bala Declare impair
Investment nt of
Beginning nce Furth Capi d ment
gains and other Provisio Ending balance
Invested unit balance (book of Changes payment provisi
er tal losses com n for (book value)
value) imp invest redu recognized by preh in other of cash impairm Other on at
airm ment ction equity dividen the
the equity ensiv ent
ent ds or end of
method e
prov profits period
inco
ision me
I. Cooperative enterprise
De Dietrich
Trade
3,824,460.03 497,269.36 4,321,729.39
(Shanghai) Co.,
Ltd.
Subtotal 3,824,460.03 497,269.36 4,321,729.39
II. Joint venture
Zhejiang
Tingshuo Brand
Operation 1,065,993.31 -426,050.67 639,942.64
Management
Co., Ltd.
Shaoxing
Shuaige Kitchen
and Bathroom 3,828,052.28 -362,274.07 3,465,778.21
Technology Co.,
Ltd.
Subtotal 4,894,045.59 -788,324.74 4,105,720.85
Total 8,718,505.62 -291,055.38 8,427,450.24
The recoverable amount is determined by the net of fair value less disposal costs
□ Applicable Not applicable
The recoverable amount is determined by the present value of expected future cash flow.
□ Applicable Not applicable
Reasons for significant discrepancies between the above information and the information used for impairment tests in previous
years or external information
Reasons for significant discrepancies between the information used for Company's impairment tests in the previous years and the
actual situation in current year
11. Other non-current financial assets
Unit: yuan
Item Ending balance Beginning balance
Financial assets measured with fair value 480,000,000.00
104
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2023 Full Annual Report
and with the changes included in current
profit and loss
Total 480,000,000.00
12. Investment properties
(1) Investment properties using cost measurement mode
Applicable □ Not applicable
Unit: yuan
Item Houses and buildings Land use right Construction in progress Total
I. Original book value
1. Beginning balance 61,641,757.01 1,062,744.00 62,704,501.01
2. Amount increased in
41,510,951.28 41,510,951.28
current period
(1) Purchased
(2) Transfer from
inventory/fixed
41,510,951.28 41,510,951.28
assets/construction in
progress
(3) Increase by business
combination
3. Amount decreased in
current period
(1) Disposal
(2) Other transfer-out
4. Ending balance 103,152,708.29 1,062,744.00 104,215,452.29
II. Accumulated
depreciation and
amortization
1. Beginning balance 6,480,766.87 336,535.60 6,817,302.47
2. Amount increased in
6,245,376.35 15,941.16 6,261,317.51
current period
(1) Accrual or
4,791,280.96 15,941.16 4,807,222.12
amortization
(2) Other transfer-in 1,454,095.39 1,454,095.39
3. Amount decreased in
current period
(1) Disposal
(2) Other transfer-out
4. Ending balance 12,726,143.22 352,476.76 13,078,619.98
III. Provision for
impairment
1. Beginning balance
2. Amount increased in
current period
(1) Provision
3. Amount decreased in
current period
(1) Disposal
(2) Other transfer-out
105
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Item Houses and buildings Land use right Construction in progress Total
4. Ending balance
IV. Book value
1. Ending book value 90,426,565.07 710,267.24 91,136,832.31
2. Beginning book value 55,160,990.14 726,208.40 55,887,198.54
The recoverable amount is determined by the net of fair value less disposal costs
□ Applicable Not applicable
The recoverable amount is determined by the present value of expected future cash flow.
□ Applicable Not applicable
Reasons for significant discrepancies between the above information and the information used for impairment tests in previous
years or external information
Reasons for significant discrepancies between the information used for Company's impairment tests in the previous years and the
actual situation in current year
Other description: The increase in investment properties was mainly due to the further expansion of new plant leasing of
Shengzhou Kinde, a subsidiary of the Company.
(2) Investment properties using fair value measurement mode
□ Applicable Not applicable
13. Fixed assets
Unit: yuan
Item Ending balance Beginning balance
Fixed assets 1,720,724,257.46 1,622,235,227.74
Liquidation of fixed assets
Total 1,720,724,257.46 1,622,235,227.74
(1) Fixed assets
Unit: yuan
Machinery Transportation
Item Houses and building Other equipment Total
equipment equipment
I. Original book
value:
1. Beginning
1,523,220,278.27 772,545,629.62 22,374,395.72 100,291,571.58 2,418,431,875.19
balance
2. Amount
increased in 171,644,314.46 78,302,805.96 3,361,392.98 38,515,056.66 291,823,570.06
current period
(1) Purchase 26,518,379.39 4,773,128.55 3,361,392.98 6,146,062.35 40,798,963.27
(2) Transfer from
construction in 145,125,935.07 73,529,677.41 32,368,994.31 251,024,606.79
progress
(3) Increase by
business
combination
3. Amount
decreased in 41,510,951.28 3,966,698.25 2,682,647.57 884,947.74 49,045,244.84
current period
(1) Disposal or
3,966,698.25 2,682,647.57 884,947.74 7,534,293.56
scrap
(2) Other decreases 41,510,951.28 41,510,951.28
4. Ending balance 1,653,353,641.45 846,881,737.33 23,053,141.13 137,921,680.50 2,661,210,200.41
106
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2023 Full Annual Report
Machinery Transportation
Item Houses and building Other equipment Total
equipment equipment
II. Accumulated
depreciation
1. Beginning
321,138,425.43 395,184,441.84 14,716,378.28 65,157,401.90 796,196,647.45
balance
2. Amount
increased in 73,041,059.80 62,760,024.37 2,187,833.83 12,975,612.72 150,964,530.72
current period
(1) Provision 73,041,059.80 62,760,024.37 2,187,833.83 12,975,612.72 150,964,530.72
3. Amount
decreased in 1,454,095.39 1,885,170.57 1,835,890.73 1,500,078.53 6,675,235.22
current period
(1) Disposal or
1,885,170.57 1,835,890.73 1,500,078.53 5,221,139.83
scrap
(2) Other decreases 1,454,095.39 1,454,095.39
4. Ending balance 392,725,389.84 456,059,295.64 15,068,321.38 76,632,936.09 940,485,942.95
III. Provision for
impairment
1. Beginning
balance
2. Amount
increased in
current period
(1) Provision
3. Amount
decreased in
current period
(1) Disposal or
scrap
4. Ending balance
IV. Book value
1. Ending book
1,260,628,251.61 390,822,441.69 7,984,819.75 61,288,744.41 1,720,724,257.46
value
2. Beginning book
1,202,081,852.84 377,361,187.78 7,658,017.44 35,134,169.68 1,622,235,227.74
value
(2) Impairment test of fixed assets
□ Applicable Not applicable
14. Construction in progress
Unit: yuan
Item Ending balance Beginning balance
Construction in progress 359,768,699.68 406,258,146.69
Total 359,768,699.68 406,258,146.69
(1) Construction in progress
Unit: yuan
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
ROBAM
336,704,853.10 336,704,853.10 192,286,508.04 192,286,508.04
Building project
107
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2023 Full Annual Report
Maoshan
intelligent
manufacturing
192,769,369.56 192,769,369.56
base
infrastructure
project
Project of
production 14,080,754.69 14,080,754.69
department 4
Customized
management 3,182,235.79 3,182,235.79 5,505,845.75 5,505,845.75
software
Project of
production 941,946.89 941,946.89 5,941,592.92 5,941,592.92
department 1
Project of
production 761,150.44 761,150.44 3,855,078.16 3,855,078.16
department 3
Project of
production 130,973.44 130,973.44 1,387,610.64 1,387,610.64
department 2
Other sporadic
3,966,785.33 3,966,785.33 4,512,141.62 4,512,141.62
projects
Total 359,768,699.68 359,768,699.68 406,258,146.69 406,258,146.69
(2) Current changes in major projects under construction
Unit: yuan
Oth
er
dec
Proportion
Amount carried reas Sour
of total
Amount increased forward to fixed es Progress ce of
Item name Budget number Beginning balance Ending balance project
in current period assets in current in of works fund
input to
period curr s
the budget
ent
peri
od
ROBAM Own
Building 724,750,000.00 192,286,508.04 144,418,345.06 336,704,853.10 46.46% 46.46 ed
project fund
Maoshan
Own
intelligent
954,238,416.50 192,769,369.56 17,206,715.24 209,976,084.80 100.00% 100.00 ed
manufactur
fund
ing
Total 1,678,988,416.50 385,055,877.60 161,625,060.30 209,976,084.80 336,704,853.10
(3) Impairment test of construction in progress
□ Applicable Not applicable
15. Right-of-use assets
(1) Right-of-use assets
Unit: yuan
Item Houses and buildings Total
I. Original book value
1. Beginning balance 33,078,049.02 33,078,049.02
2. Amount increased in current period
3. Amount decreased in current period 3,620,141.00 3,620,141.00
108
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2023 Full Annual Report
Item Houses and buildings Total
Disposal 3,620,141.00 3,620,141.00
4. Ending balance 29,457,908.02 29,457,908.02
II. Accumulated depreciation
1. Beginning balance 10,857,904.89 10,857,904.89
2. Amount increased in current period 4,975,042.57 4,975,042.57
(1) Provision 4,975,042.57 4,975,042.57
3. Amount decreased in current period 177,498.42 177,498.42
(1) Disposal 177,498.42 177,498.42
4. Ending balance 15,655,449.04 15,655,449.04
III. Provision for impairment
1. Beginning balance
2. Amount increased in current period
(1) Provision
3. Amount decreased in current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 13,802,458.98 13,802,458.98
2. Beginning book value 22,220,144.13 22,220,144.13
(2) Impairment test of right-of-use assets
□ Applicable Not applicable
16. Intangible assets
(1) Intangible assets
Unit: yuan
Nonpaten
Patent ted
Item Land use right Software Trademark Patent Total
right technolog
y
I. Original book value
1. Beginning balance 224,593,935.95 66,054,963.42 24,624,622.64 7,300,000.00 322,573,522.01
2. Amount increased
7,153,296.11 7,153,296.11
in current period
(1) Purchase 1,411,820.03 1,411,820.03
(2) Internal R&D
(3) Increase by
business combination
(4) Transfer from
construction in 5,741,476.08 5,741,476.08
progress
3. Amount decreased
in current period
(1) Disposal
4. Ending balance 224,593,935.95 73,208,259.53 24,624,622.64 7,300,000.00 329,726,818.12
II. Accumulated
amortization
109
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2023 Full Annual Report
1. Beginning balance 34,355,786.06 50,741,829.14 11,065,502.28 5,053,846.15 101,216,963.63
2. Amount increased
4,497,696.17 5,872,879.84 2,462,462.24 1,123,076.93 13,956,115.18
in current period
(1) Provision 4,497,696.17 5,872,879.84 2,462,462.24 1,123,076.93 13,956,115.18
3. Amount decreased
in current period
(1) Disposal
4. Ending balance 38,853,482.23 56,614,708.98 13,527,964.52 6,176,923.08 115,173,078.81
III. Provision for
impairment
1. Beginning balance
2. Amount increased
in current period
(1) Provision
3. Amount decreased
in current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 185,740,453.72 16,593,550.55 11,096,658.12 1,123,076.92 214,553,739.31
2. Beginning book
190,238,149.89 15,313,134.28 13,559,120.36 2,246,153.85 221,356,558.38
value
The proportion of intangible assets formed through internal research and development of the Company to the balance of intangible
assets at the end of this period.
(2) Impairment test of intangible assets
□ Applicable Not applicable
17. Goodwill
(1) Original book value of goodwill
Unit: yuan
Investee name or Increase in current period Decrease in current period
goodwill forming Beginning balance By business Ending balance
matter Disposal
combination
Shengzhou Kinde
Intelligent Kitchen 80,589,565.84 80,589,565.84
Electric Co., Ltd.
Total 80,589,565.84 80,589,565.84
(2) Provision for impairment of goodwill
Unit: yuan
Investee name or Increase in current period Decrease in current period
goodwill forming Beginning balance Ending balance
matter Provision Disposal
Shengzhou Kinde
Intelligent Kitchen 20,015,733.28 48,350,560.89 68,366,294.17
Electric Co., Ltd.
Total 20,015,733.28 48,350,560.89 68,366,294.17
110
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18. Long-term unamortized expenses
Unit: yuan
Amortization
Amount increased in
Item Beginning balance amount in current Other decreases Ending balance
current period
period
Office decoration
4,975,535.19 2,644,373.55 2,331,161.64
fee
Service charge 568,331.27 5,272,541.46 3,757,582.94 2,083,289.77
Consulting fee 78,916.67 537,431.46 348,615.03 267,733.10
Advertising and
184,204.48 3,911,850.12 3,966,838.47 129,216.10
promotion expenses
Other 45,912.29 6,280,310.56 6,102,964.14 223,258.76
Total 5,852,899.90 16,002,133.60 16,820,374.13 5,034,659.37
Other description:
19. Deferred income tax assets / deferred income tax liabilities
(1) Unoffset deferred income tax assets
Unit: yuan
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Provision for credit
1,228,253,675.11 191,913,813.81 1,140,080,421.22 177,937,345.82
impairment
Recognition for provisional
744,083,389.27 111,612,508.39 775,373,813.20 116,306,071.98
estimate cost
Fair value change of other
equity instrument 117,832,510.80 17,674,876.62 117,832,510.80 17,674,876.62
investments
Recognition for deferred
101,473,668.87 15,221,050.33 86,923,728.33 13,038,559.25
income
Provision for impairment
97,315,669.06 14,597,350.36 75,904,924.33 11,385,738.65
of assets
Unrealized profit of
9,265,235.74 2,316,308.94
internal transaction
Recognition for equity
9,730,756.23 1,510,663.99 7,950,207.60 1,239,475.54
incentive
Income that should be
recognized according to tax
60,810,075.93 9,121,511.39
laws but not yet recognized
by the accountant
Lease liabilities 4,984,267.98 1,246,067.00 3,651,876.63 912,969.16
Total 2,364,484,013.25 362,897,841.89 2,216,982,717.85 340,811,345.96
(2) Unoffset deferred income tax liabilities
Unit: yuan
Ending balance Beginning balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Appreciation of assets
appraisal for business
17,528,191.69 2,629,228.75 21,533,616.61 3,230,042.49
combination not under
common control
Right-of-use assets 3,260,199.24 815,049.81
Taxable temporary
differences due to the 112,448,544.27 16,867,281.64 125,852,613.90 18,877,892.09
pretax deduction of fixed
111
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2023 Full Annual Report
assets
Accrued interest on time
54,046,698.73 8,107,004.81
deposits
Total 187,283,633.93 28,418,565.01 147,386,230.51 22,107,934.58
(3) Deferred income tax assets or liabilities presented as net amount after offset
Unit: yuan
Ending balance of Beginning balance of
Ending offset amount of Beginning offset amount
deferred income tax deferred income tax
Item deferred income tax of deferred income tax
assets and liabilities after assets and liabilities after
assets and liabilities assets and liabilities
offset offset
Deferred income tax
362,897,841.89 340,811,345.96
assets
Deferred income tax
28,418,565.01 22,107,934.58
liabilities
(4) Details of unrecognized deferred income tax assets
Unit: yuan
Item Ending balance Beginning balance
Deductible temporary differences 13,929,952.65
Deductible loss 102,787,541.49 44,298,409.84
Total 116,717,494.14 44,298,409.84
(5) Deductible losses on unrecognized deferred income tax assets will expire in the following year
Unit: yuan
Year Ending amount Beginning amount Remark
2023 6,714.34
2024 5,602.28 5,602.28
2025 9,556,499.12 9,556,499.12
2026 10,380,561.57 10,380,561.57
2027 24,349,032.53 24,349,032.53
2028 58,495,845.99
Total 102,787,541.49 44,298,409.84
Other description:
20. Other non-current assets
Unit: yuan
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Time deposit over
1,770,000,000.00 1,770,000,000.00
one year
Project mortgage
97,041,317.94 33,964,461.28 63,076,856.66 48,666,572.69 3,315,747.32 45,350,825.37
property *1 Note 1
Advance payment
76,602,510.25 76,602,510.25
for house purchase
Advance payment
12,455,961.74 12,455,961.74 4,082,671.76 4,082,671.76
for equipment
Advance payment
194,000.00 194,000.00
for engineering
Total 1,956,293,789.93 33,964,461.28 1,922,329,328.65 52,749,244.45 3,315,747.32 49,433,497.13
Other description:
*1. At the end of the year, the Company signed the debt restructuring agreement and completed the real estate transfer procedures
for the purchase of project mortgage property and parking space with a total price of RMB 97,041,300, and the impairment
112
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
provision of RMB 33,964,500. See "XVIII. Other important matters 1. Debt restructuring matters" in this report for details.
21. Assets with ownership or use rights restricted
Unit: yuan
At the end of the period At the beginning of the period
Restri
Item Type of ction Type of Restrictio
Book balance Book value Book balance Book value
restriction detail restriction n details
s
Monetary Guarantee Guarantee
83,153,343.90 83,153,343.90 76,092,305.89 76,092,305.89
capital deposit deposit
Mortgage
Fixed assets 108,455,603.60 99,401,869.39
loan
Intangible Mortgage
28,181,534.50 25,884,399.80
assets loan
Monetary Bill
23,717,043.12 23,717,043.12 20,243,023.31 20,243,023.31 Bill deposit
capital deposit
Monetary ETC
14,000.00 14,000.00 13,000.00 13,000.00 ETC deposit
capital deposit
Total 243,521,525.12 232,170,656.21 96,348,329.20 96,348,329.20
22. Short-term borrowing
(1) Classification of short-term borrowing
Unit: yuan
Item Ending balance Beginning balance
Mortgage loan 49,500,000.00
Credit loan 31,500,000.00 51,150,000.00
Accounts receivable factoring 14,003,320.70 573,429.99
Total 95,003,320.70 51,723,429.99
Description of classification of short-term borrowing
Credit loan: It is the working capital loan of Shengzhou Kinde (a subsidiary of the Company) and Cooking Future (a subsidiary of
Shengzhou Kinde) from Shaoxing Shengzhou Sub-branch of Bank of Communications Co., Ltd., Shaoxing Shengzhou Sub-branch
of China Construction Bank Co., Ltd., Shaoxing Shengzhou Sub-branch of China Minsheng Banking Corporation Limited and
Shaoxing Shengzhou Small and Micro Enterprise Specialized Sub-branch of Zhejiang Tailong Commercial Bank Co., Ltd. The
loan term is 1 year, and the interest rate range is 3.25%-6.18%.
Mortgage loan: Shengzhou Kinde, a subsidiary of the Company, signed a mortgage loan contract with Shaoxing Shengzhou Sub-
branch of Bank of Communications Co., Ltd. on June 1, 2023, and obtained a loan credit line of RMB 160 million from Bank of
Communications, which was utilized in the current year to the extent of RMB 49.5 million, with the loan interest rate of 3.25%-
3.35%. The collateral is the house and land of Plant No. 1 located at No. 888 Ruanpeng Road, Shengzhou City, with a total net
value of RMB 125 million.
23. Notes payable
Unit: yuan
Type Ending balance Beginning balance
Banker's acceptance bill 1,098,720,000.58 872,550,306.86
Total 1,098,720,000.58 872,550,306.86
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
24. Accounts payable
(1) Presentation of accounts payable
Unit: yuan
Item Ending balance Beginning balance
Payment for materials 1,267,081,255.68 1,179,804,339.04
Costs 1,107,539,973.00 1,004,448,565.06
Project payment 164,258,188.72 202,679,315.68
Payment for equipment 9,864,344.66 31,822,947.53
Total 2,548,743,762.06 2,418,755,167.31
(2) Important accounts payable with the aging over 1 year or overdue
Note: As of December 31, 2023, the Company's balance of important accounts payable with an age over one year were RMB
68,156,576.35, mainly for the outstanding project funds and fees.
25. Other payables
Unit: yuan
Item Ending balance Beginning balance
Dividends payable 472,047,458.00
Other payables 283,917,461.76 281,878,208.25
Total 755,964,919.76 281,878,208.25
(1) Dividends payable
Unit: yuan
Item Ending balance Beginning balance
Common stock dividends 472,047,458.00
Total 472,047,458.00
(2) Other payables
1) Other payables listed by nature
Unit: yuan
Item Ending balance Beginning balance
Margin payable 266,137,376.14 265,582,978.77
Collections for others 4,941,205.70 7,285,543.45
Deposit payable 6,600,507.19 6,122,832.30
Other 6,238,372.73 2,886,853.73
Total 283,917,461.76 281,878,208.25
2) Important other payables with the aging over 1 year
Unit: yuan
Reasons for failure of payment or
Item Ending balance
carryover
Sales deposit 68,156,576.35
Total 68,156,576.35
26. Contract liabilities
Unit: yuan
Item Ending balance Beginning balance
Advances from customers 1,019,942,923.58 959,915,567.03
Total 1,019,942,923.58 959,915,567.03
114
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2023 Full Annual Report
(1) Presentation of payroll payable
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
I. Short-term
150,070,271.37 994,720,896.44 975,802,464.20 168,988,703.61
compensation
II. Welfare after
dismission - defined 3,696,456.80 76,510,989.51 71,385,186.08 8,822,260.23
contribution plan
III. Dismission welfare 175,601.71 1,675,298.12 1,738,821.66 112,078.17
Total 153,942,329.88 1,072,907,184.07 1,048,926,471.94 177,923,042.01
(2) Presentation of short-term compensation
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
1. Wages, bonuses,
allowances and 144,681,781.61 843,221,721.35 825,487,750.12 162,415,752.84
subsidies
2. Employee welfare
37,954,488.12 37,954,488.12
expenses
3. Social insurance
4,319,168.44 51,052,801.81 49,564,928.90 5,807,041.35
premium
Including: medical
4,212,988.20 48,489,005.68 47,209,079.68 5,492,914.20
insurance premium
Industrial injury
106,180.24 2,563,796.13 2,355,849.22 314,127.15
insurance premium
4. Housing fund 664,905.00 46,150,383.55 46,468,148.55 347,140.00
5. Labor union
expenditure and
404,416.32 16,341,501.61 16,327,148.51 418,769.42
personnel education
fund
Total 150,070,271.37 994,720,896.44 975,802,464.20 168,988,703.61
(3) Presentation of defined contribution plans
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
1. Basic endowment
3,571,259.19 73,962,963.40 69,009,336.27 8,524,886.32
insurance
2. Unemployment
125,197.61 2,548,026.11 2,375,849.81 297,373.91
insurance premium
Total 3,696,456.80 76,510,989.51 71,385,186.08 8,822,260.23
27. Tax payable
Unit: yuan
Item Ending balance Beginning balance
Added value tax 61,072,058.37 56,957,133.24
Corporate income tax 61,750,915.22 70,376,526.39
Individual income tax 3,100,246.18 2,226,988.94
Urban maintenance and construction tax 4,330,476.87 3,805,759.15
Housing property tax 13,625,288.12 10,345,173.49
Land use tax 5,696,022.16 4,382,947.50
Education surcharge 1,855,918.59 1,631,039.59
115
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Item Ending balance Beginning balance
Stamp duty 1,697,472.12 1,538,692.42
Surcharge for local education 1,237,279.17 1,087,359.86
Total 154,365,676.80 152,351,620.58
28. Non-current liabilities due within a year
Unit: yuan
Item Ending balance Beginning balance
Lease liabilities due within one year 4,522,658.42 5,720,175.21
Total 4,522,658.42 5,720,175.21
Other description:
29. Other current liabilities
Unit: yuan
Item Ending balance Beginning balance
Output tax to be carried forward 118,041,351.23 120,126,501.73
Total 118,041,351.23 120,126,501.73
30. Lease liabilities
Unit: yuan
Item Ending balance Beginning balance
Lease payments 17,643,054.87 28,173,738.18
Unrecognized financing expenses -2,369,603.55 -3,864,596.28
Non-current liabilities reclassified to due
-4,522,658.42 -5,720,175.23
within a year
Total 10,750,792.90 18,588,966.67
31. Deferred income
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance Causes
period period
Government
123,912,110.43 32,914,193.20 20,288,048.89 136,538,254.74 Government grant
subsidies
Total 123,912,110.43 32,914,193.20 20,288,048.89 136,538,254.74 --
32. Share capital
Unit: yuan
Increase/decrease (+, -)
Beginning balance Share capital Ending balance
New issue of
Share donation increase from Other Subtotal
shares
reserved funds
Total
amount of 949,024,050.00 949,024,050.00
shares
33. Capital reserve
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
Capital premium (capital
401,799,332.67 401,799,332.67
stock premium)
Other capital surplus 8,198,332.91 1,780,548.64 9,978,881.55
Total 409,997,665.58 1,780,548.64 411,778,214.22
116
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2023 Full Annual Report
34. Treasury stock
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
Share repurchase 199,995,742.59 199,995,742.59
Total 199,995,742.59 199,995,742.59
35. Other comprehensive income
Unit: yuan
Amount incurred in current period
Minus:
Minus:
amount
amount
included in
included in
Amo other
other
unt comprehensi
comprehensi
befor ve income in
ve income in Attributable Attributable
Item Beginning balance e previous Minus: Ending balance
previous to the parent to minority
curre period and Income tax
period and company shareholders
nt included in expenses
carried after tax after tax
inco carried
forward to
me forward to
profit and
tax retained
loss in
earnings in
current
current
period
period
I. Other
comprehensive
income that can't be -100,157,634.16 -100,157,634.16
reclassified into
profit and loss
Fair value change of
other equity
-100,157,634.16 -100,157,634.16
instrument
investments
Total other
comprehensive -100,157,634.16 -100,157,634.16
income
36. Surplus reserves
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
Statutory surplus
474,516,412.50 474,516,412.50
reserves
Total 474,516,412.50 474,516,412.50
37. Undistributed profit
Unit: yuan
Item Current period Prior period
Undistributed profit at the end of previous
8,199,079,015.58 7,098,721,555.37
period before adjustment
Undistributed profits at the beginning of
8,199,079,015.58 7,098,721,555.37
the period after adjustment
Plus: Net profits attributable to the owners
1,732,789,332.13 1,572,404,918.21
of parent company in the current period
Common stock dividends payable 944,094,916.00*1 472,047,458.00
Undistributed profits at the end of the
8,987,773,431.71 8,199,079,015.58
period
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*1. According to the Proposal on the Profit Distribution Plan for 2022 passed at the Company's 14th meeting
of the fifth Board of Directors on April 25, 2023, based on the total share capital of 944,094,916.00 as at
December 31, 2022, the Company intends to pay a cash dividend of RMB 5.00 (tax inclusive) per 10 shares to
all shareholders, totaling RMB 472,047,458.00. On May 18, 2023, the Profit Distribution Plan for 2022 was
approved at the Company's 2022 Annual General Meeting, and the profit distribution was made on May 30,
2023.
According to the Proposal on the Special Dividend Plan for Returning Shareholders passed at the Company's
4th meeting of the sixth Board of Directors on December 14, 2023, based on the existing 944,094,916 shares of
the Company, the Company intends to pay a cash dividend of RMB 5.00 (tax inclusive) per 10 shares to all
shareholders, totaling RMB 472,047,458.00. On December 29, 2023, at the second extraordinary general
meeting of shareholders of the Company, the Special Dividend Plan for Returning Shareholders was adopted.
38. Operating income and operating cost
Unit: yuan
Amount incurred in current period Amount incurred in previous period
Item
Income Cost Income Cost
Main business 10,897,226,245.68 5,369,816,850.21 9,981,652,062.48 5,021,006,447.26
Other businesses 304,669,528.59 157,831,856.08 289,848,508.56 116,362,310.89
Total 11,201,895,774.27 5,527,648,706.29 10,271,500,571.04 5,137,368,758.15
39. Taxes and surcharges
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Urban maintenance and construction tax 44,475,351.96 36,866,764.88
Education surcharge 31,768,105.78 26,333,403.43
Housing property tax 15,227,067.94 10,952,011.11
Land use tax 1,342,982.99
Vehicle and vessel use tax 24,240.12 31,382.80
Stamp duty 5,801,185.42 4,372,007.14
Other 12,673.86 9,014.69
Total 98,651,608.07 78,564,584.05
40. Management costs
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Employee compensation 256,829,379.16 232,915,393.30
Depreciation and amortization 79,272,827.17 57,769,379.05
Consulting service charge 36,819,646.61 30,328,558.67
Office allowance 22,833,298.74 19,173,287.07
Rental and property fees 10,388,619.24 16,857,502.46
Business entertainment expenses 10,338,970.38 9,589,758.62
Maintenance expense 7,741,520.94 20,325,200.99
Traveling expense 7,407,518.81 8,655,474.80
Material consumption 6,869,407.96 2,329,956.33
Communication expense 6,067,385.51 5,882,277.89
Car fare 3,940,649.91 3,990,965.03
Equity incentive fee 1,780,548.64 4,735,460.49
Other 19,332,299.53 18,415,189.04
Total 469,622,072.60 430,968,403.74
41. Selling expenses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
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2023 Full Annual Report
Item Amount incurred in current period Amount incurred in previous period
Sales and service fees 1,198,898,829.94 1,025,589,168.39
Advertising and promotion expenses 777,479,186.47 742,763,089.08
Employee compensation 406,543,689.72 377,046,127.44
Booth decoration fee 277,267,106.80 193,012,956.27
Promotion fees 111,160,033.93 101,079,371.35
Material consumption 82,469,966.99 67,685,473.69
Traveling expense 34,611,784.09 27,632,789.17
Intermediary service charge 33,461,629.22 21,405,980.86
Office allowance 29,564,756.90 14,226,573.69
Business entertainment expenses 19,119,295.57 16,132,300.29
Rental fees 17,937,109.93 16,347,878.64
Other 13,905,261.98 10,704,365.02
Total 3,002,418,651.54 2,613,626,073.89
42. Research and development expenses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Employee compensation 231,392,266.56 200,367,321.67
Direct investment 118,236,087.05 153,846,595.26
Depreciation and amortization 14,079,387.74 15,626,975.33
Design fee 4,601,868.90 6,949,423.09
Other expenses 19,058,981.72 14,824,490.03
Total 387,368,591.97 391,614,805.38
43. Financial expenses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Interest expenditure 8,773,638.31 10,249,057.76
Minus: Interest income 198,559,145.09 162,232,029.99
Plus: Exchange gain or loss -1,275,825.96 -7,158,057.38
Plus: Other income 2,133,596.15 1,918,741.00
Total -188,927,736.59 -157,222,288.61
44. Other income
Unit: yuan
Other sources of income Amount incurred in current period Amount incurred in previous period
Embedded software tax rebate 45,894,461.03 45,959,892.74
VAT and surcharges exemption or
44,786,595.84 10,643.41
reduction
Financial support funds for enterprise
39,208,547.00 52,042,148.00
cultivation
Amortization of deferred income 20,288,048.89 18,704,207.99
Special financial funds 11,173,750.00 10,005,040.00
Performance award of Shanghai Hongkou
4,730,000.00 3,010,000.00
District Finance Bureau
Special fund for industrial development 2,587,200.00 3,626,125.00
Job subsidies and social insurance
2,499,238.39 3,508,713.85
subsidies
Service charge refund 684,354.91 541,758.65
Training allowance 360,600.00 706,097.00
Intelligent manufacturing, integrated
6,497,000.00
standardization and new mode application
119
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2023 Full Annual Report
project
Patent reward fund 141,278.00 367,040.00
Subsidies for R&D investment 138,500.00 2,788,200.00
Other subsidies 1,419,899.88 708,703.65
Total 173,912,473.94 148,475,570.29
45. Investment income
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
long-term equity investment gains
-291,055.38 -826,624.29
measured by employing the equity method
Investment income from trading financial
83,254,470.07 99,787,693.44
assets during the holding period
Total 82,963,414.69 98,961,069.15
46. Credit impairment loss
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Loss on bad debts of notes receivable 20,343,508.22 225,624,086.48
Loss on bad debts of accounts receivable -121,260,682.01 -453,885,249.57
Loss on bad debts of other receivables -1,219,619.60 4,146,561.44
Total -102,136,793.39 -224,114,601.65
47. Assets impairment losses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
I. Inventory falling price loss and
impairment loss of contract performance 8,898,652.01 -1,666,825.32
costs
II. Loss on impairment of goodwill -48,350,560.89 -20,015,733.28
III. Other -31,240,481.09 -3,315,747.32
Total -70,692,389.97 -24,998,305.92
48. Income from disposal of assets
Unit: yuan
Source of income from disposal of assets Amount incurred in current period Amount incurred in previous period
Income from disposal of non-current assets 396,961.78 143,437.75
Income from disposal of non-current assets
396,961.78 143,437.75
not classified as held for sale
Including: income from disposal of fixed
405,470.76 -113,948.48
assets
Income from disposal of right-of-
-8,508.98 257,386.23
use assets
Income from disposal of non-current assets
-1,608,816.48
in debt restructuring
Total -1,211,854.70 143,437.75
49. Non-operating income
Unit: yuan
Amounts recorded in the non-
Amount incurred in current Amount incurred in previous
Item recurring gains and losses of
period period
the current period
Liquidated damages and fines 2,361,476.53 2,661,012.65 2,361,476.53
Gain on retirement of non-
410.00 33,060.29 410.00
current assets
120
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Other 2,380,323.06 574,406.11 2,380,323.06
Total 4,742,209.59 3,268,479.05 4,742,209.59
50. Non-operating expenditure
Unit: yuan
Amounts recorded in the non-
Amount incurred in current Amount incurred in previous
Item recurring gains and losses of
period period
the current period
External donations 5,676,407.70 3,734,913.97 5,676,407.70
Abnormal loss 239,238.29 506,839.36 239,238.29
Penalty expenditure 14,750.00 5,300.00 14,750.00
Loss on damage and scrap of
26,133.99 63,041.78 26,133.99
non-current assets
Overdue fines 62,175.03 62,175.03
Other 562,191.28 1,033,183.71 562,191.28
Total 6,580,896.29 5,343,278.82 6,580,896.29
51. Income tax expenses
(1) Table of income tax expenses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Current income tax expenses 287,228,463.48 253,156,740.77
Deferred income tax expenses -15,775,865.50 -38,490,586.78
Total 271,452,597.98 214,666,153.99
(2) Accounting profit and income tax expense adjustment process
Unit: yuan
Item Amount incurred in current period
Total profit 1,986,110,044.26
Income tax expenses calculated at the appropriate/applicable tax
297,916,506.64
rate
Impact of different tax rates applied on subsidiaries -3,465,374.20
Impact of income tax before adjustment 5,357,429.48
Impact of non-deductible costs, expenses and losses 6,577,716.13
Impact of deductible losses on the use of deferred income tax
-374,321.32
assets not previously recognized
Impact of temporary difference or deductible losses on
14,941,398.18
unrecognized deferred income tax assets in the current period
Unrealized internal gains and losses 2,284,592.48
Income tax expenses calculated at the appropriate/applicable tax
297,916,506.64
rate
Tax impact of additional deduction for research and development
-51,608,963.73
expenses (express with "-")
Other -176,385.69
Income tax expenses 271,452,597.98
52. Cash flow statement items
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Income from deposit interest 147,368,118.86 162,232,029.99
Government subsidies 94,765,559.58 94,665,016.15
121
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Agent business 1,261,456.84 1,173,444.43
Imprest 6,208,476.48 3,448,325.00
Margin and deposit 20,750,488.76 30,208,569.09
Other payments 1,900,700.66 10,847,398.64
Total 272,254,801.18 302,574,783.30
Other cash paid related to operating activities
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Period charge 2,813,698,592.70 2,472,346,407.79
Agent business 61,222,865.12 38,185,746.87
Deposit for L/C and acceptance bill 15,438,060.63 28,100,235.97
Margin and deposit 8,589,104.00 9,124,879.36
Imprest 775,895.75 3,431,848.41
Other 5,751,648.05 7,469,204.96
Total 2,905,476,166.25 2,558,658,323.36
(2) Cash related to investment activities
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Time deposit 4,333,744,300.00
Total 4,333,744,300.00
(3) Cash related to financing activities
Other cash received related to financing activities
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Accounts receivable factoring income 13,510,296.65 1,012,732.06
Total 13,510,296.65 1,012,732.06
Other cash paid related to financing activities
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Factoring refund with recourse 4,030,091.57
Rent 7,123,465.99 6,729,745.77
Total 7,123,465.99 10,759,837.34
Changes in liabilities arising from financing activities
□ Applicable Not applicable
53. Further information on cash flow statement
(1) Further information on cash flow statement
Unit: yuan
Further information Current amount Last term amount
1. Reconciliation from net profits to cash
flows from operating activities
Net profit 1,714,657,446.28 1,558,306,450.30
Plus: Provision for impairment of assets 70,692,389.97 24,998,305.92
Depreciation of fixed assets, oil and
gas assets and productive biological 157,225,848.23 129,112,131.14
assets
Depreciation of Right-of-use assets 4,975,042.57 5,561,093.48
Amortization of intangible assets 13,956,115.18 13,484,372.99
122
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Amortization of long-term deferred
16,820,374.13 21,378,537.46
expenses
Loss on disposal of fixed assets,
intangible assets and other long-term 1,211,854.70 -143,437.75
assets (gains expressed with "-")
Loss on retirement of fixed assets
26,133.99 29,981.49
(gains expressed with "-")
Loss from fair value changes (gains
expressed with "-")
Financial expenses (gains expressed
7,816,211.50 4,582,493.50
with "-")
Investment losses (gains expressed
-82,963,414.69 -98,961,069.15
with "-")
Decreased in deferred income tax
-22,086,495.93 -54,463,308.92
assets (increase expressed with "-")
Increase in deferred income tax
6,310,630.43 15,853,171.82
liabilities (decrease expressed with "-")
Decrease in inventories (increase
94,734,729.87 160,454,008.83
expressed with "-")
Decrease in operating receivables
39,094,727.26 59,527,120.84
(increase expressed with "-")
Increase in operating payables
267,313,425.83 -119,048,149.58
(decrease expressed with "-")
Other 102,136,793.39 224,114,601.65
Net cash flow from operating activities 2,391,921,812.71 1,944,786,304.02
2. Significant investment and financing
activities not involving cash deposit
and withdrawal
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets under financing lease
3. Net changes in cash and cash
equivalents:
Ending balance of cash 1,878,166,358.09 5,196,414,341.74
Minus: Beginning balance of cash 5,196,414,341.74 3,719,988,820.35
Plus: Beginning balance of cash
equivalents
Minus: Ending balance of cash
equivalents
Net increase of cash and cash equivalents -3,318,247,983.65 1,476,425,521.39
(2) Composition of cash and cash equivalents
Unit: yuan
Item Ending balance Beginning balance
I. Cash 1,878,166,358.09 5,196,414,341.74
Including: cash on hand 62,267.64 85,806.05
Bank deposit readily available for
1,877,703,911.46 5,194,874,841.18
payment
Other monetary capital readily available
400,178.99 1,453,694.51
for payment
III. Balance of cash and cash equivalents at
1,878,166,358.09 5,196,414,341.74
the beginning of the period
123
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54. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: yuan
Ending balance in foreign Ending balance converted to
Item Conversion exchange rate
currency RMB
Monetary capital
Including: USD 1,756,700.54 7.0827 12,442,182.91
EUR 1,669.52 7.8592 13,121.09
HKD
AUD 858.81 4.8484 4,163.85
Accounts receivable
Including: USD 4,336,447.28 7.0827 30,713,755.15
EUR
HKD
AUD 30.00 4.8484 145.45
Long-term borrowing
Including: USD
EUR
HKD
(2) Description of overseas operating entities, including disclosure of main place of business overseas,
bookkeeping currency and selection basis for important overseas operating entities, and disclosure
of the reasons for any change in the bookkeeping currency.
□ Applicable Not applicable
VIII. R&D Expenditure
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Total 387,368,591.97 391,614,805.38
Including: Expensed R&D expenditure 387,368,591.97 391,614,805.38
IX. Consolidation Scope Changes
1. Change of merger scope for other reasons
Explain the changes in the scope of combination caused by other reasons (such as the establishment of new subsidiaries,
liquidation of subsidiaries, etc.) and relevant information:
On May 29, 2023, the Company invested in the establishment of ROBAM Appliances (Hong Kong) Holdings Limited, with a
registered capital of US$500,000 and a shareholding ratio of 100%. The scope of business is asset and investment management,
and the registered capital has been paid up. As of the end of the reporting period, it is in the preparatory period and has not yet
been actually operated.
On June 7, 2023, ROBAM Appliances (Hong Kong) Holdings Limited, a subsidiary of the Company, invested in the establishment
of ROBAM International (Hong Kong) Trading Co., Ltd., with a registered capital of US$500,000 and a shareholding ratio of
100%, which is mainly engaged in the sales of the Company's kitchen appliance products. Currently, its registered capital of the
company has not been fully paid up, and as of the end of the reporting period, it is in the preparatory period and has not yet been
actually operated.
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X. Interests in Other Entities
1. Interests in a subsidiary
(1) Composition of enterprise group
Unit: yuan
Main Shareholding ratio
Registratio
Subsidiary name Registered capital operation Business nature Way of obtaining
n place Direct Indirect
site
Beijing ROBAM Business combination
Sales of kitchen
Electric Appliance 5,000,000.00 Beijing Beijing 100.00% under common
appliance products
Sales Co., Ltd. control
Shanghai ROBAM Business combination
Sales of kitchen
Electric Appliance 5,000,000.00 Shanghai Shanghai 100.00% under common
appliance products
Sales Co., Ltd. control
Hangzhou Mingqi Sales of kitchen Acquisition by
50,000,000.00 Hangzhou Hangzhou 100.00%
Electric Co., Ltd. appliance products establishment
Dize Home
Sales of kitchen Acquisition by
Appliances Trading 80,000,000.00 Shanghai Shanghai 51.00%
appliance products establishment
(Shanghai) Co., Ltd.
Shengzhou Kinde Production and Business combination
Intelligent Kitchen 32,653,061.00 Shengzhou Shengzhou sales of kitchen 51.00% not under common
Electric Co., Ltd. appliance products control
Hangzhou ROBAM Assets and
Acquisition by
Fuchuang Investment 10,000,000.00 Hangzhou Hangzhou investment 100.00%
establishment
Management Co., Ltd. management
Zhejiang Cooking
Intelligent kitchen Acquisition by
Future Technology 50,000,000.00 Shengzhou Shengzhou 32.13%
design establishment
Co., Ltd.
Hangzhou Jinhe
Sales of kitchen Acquisition by
Electric Appliances 10,000,000.00 Hangzhou Hangzhou 100.00%
appliance products establishment
Co., Ltd
ROBAM Appliances Assets and
Hong Acquisition by
(Hong Kong) 500,000.00 Hong Kong investment 100.00%
Kong establishment
Holdings Limited management
ROBAM International International trade
Hong Acquisition by
(Hong Kong) Trading 0.00 Hong Kong of kitchen 100.00%
Kong establishment
Co., Ltd. appliance products
Unit: yuan
Difference between the shareholding ratio and the voting right ratio in the subsidiary:
The basis that the Company holds half or less of the voting rights of Zhejiang Cooking Future Technology Co., Ltd., but still
controls Zhejiang Cooking Future Technology Co., Ltd. basis: since the Company forms a control relationship with Shengzhou
Kinde, it also forms a control relationship with its holding subsidiary Zhejiang Cooking Future Technology Co., Ltd.
On January 6, 2022, the Company's subsidiary, Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. signed the Equity Transfer
Contract with Gongqingcheng Binglan Investment Partnership (limited partnership) , to stipulate that Shengzhou Kinde Intelligent
Kitchen Electric Co., Ltd. will transfer the subscribed 7% equity of Zhejiang Cooking Future Technology Co., Ltd. to
Gongqingcheng Binglan Investment Partnership (limited partnership) to change its shareholding ratio from 70% to 63%, and
change the shareholding ratio of the Company from 35.70% to 32.13%.
(2) Important non-wholly owned subsidiary
Unit: yuan
Current profits and Current dividends
Minority shareholding Ending balance of
Subsidiary name losses attributable to declared to minority
ratio minority equity
minority shareholders shareholders
Shengzhou Kinde
Intelligent Kitchen 49.00% -13,460,789.98 101,499,182.34
Electric Co., Ltd.
Zhejiang Cooking Future 37.00% -4,671,095.87 6,158,133.91
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2023 Full Annual Report
Technology Co., Ltd.
(3) Main financial information of important non-wholly owned subsidiaries
Unit: yuan
Ending balance Beginning balance
Subsidiary name Non- Non- Non-
Total Current Total Current Total Current Non-current
Current assets current current current Total liabilities
assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets
Shengzhou Kinde
109,441,329. 341,074,1 450,515,4 188,644,2 41,769,39 230,413,6 152,256,7 348,855,7 501,112,4 203,576,22 45,292,175.5
Intelligent Kitchen 248,868,403.30
81 55.13 84.94 46.55 0.83 37.38 97.00 02.41 99.41 7.80 0
Electric Co., Ltd.
Zhejiang Cooking
Future 17,730,954.2 7,438,578 25,169,53 8,525,927 8,525,927 25,723,85 6,669,996 32,393,84 3,125,658.
3,125,658.21
Technology Co., 2 .53 2.75 .58 .58 0.48 .33 6.81 21
Ltd.
Unit: yuan
Amount incurred in current period Amount incurred in previous period
Subsidiary name Total
Cash flow from Operatin Total comprehensive Cash flow from
Operating income Net profit comprehensive Net profit
financing activities g income income financing activities
income
Shengzhou Kinde
170,999,
Intelligent Kitchen 148,506,855.32 -32,142,248.55 -32,142,248.55 -44,183,591.86 -24,500,532.58 -24,500,532.58 -53,403,723.94
666.69
Electric Co., Ltd.
Zhejiang Cooking
1,291,21
Future Technology 10,310,628.73 -12,624,583.43 -12,624,583.43 -16,944,395.45 -11,092,961.31 -11,092,961.31 -19,686,152.21
9.22
Co., Ltd.
2. Equity in joint venture arrangement or joint venture
(1) Summary of financial information of unimportant cooperative enterprises and joint ventures
Unit: yuan
Ending balance/amount incurred in current Beginning balance/amount incurred in
period previous period
Cooperative enterprise:
Total book value of investment 4,321,729.39 3,824,460.03
Total number of following items by
shareholding ratio
- Net profit 497,269.36 162,760.00
- Total comprehensive income 497,269.36 162,760.00
Joint venture:
Total book value of investment 4,105,720.85 4,894,045.59
Total number of following items by
shareholding ratio
- Net profit -788,324.74 -989,384.29
- Total comprehensive income -788,324.74 -989,384.29
Accounting
Name of treatment method
Main
cooperative Registrati Shareholding ratio of investment in
operation Business nature
enterprise and joint on place (%) cooperative
site
venture enterprises and
joint ventures
Direct Indirect
De Dietrich Trade Sales of kitchen
Shanghai Shanghai 51.00 Equity method
(Shanghai) Co., Ltd. appliances
Zhejiang Tingshuo
Brand Operation Hangzhou Hangzhou Retail industry 40.00 Equity method
Management Co.,
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2023 Full Annual Report
Ltd.
Shaoxing Shuaige
Manufacture of
Kitchen and Shaoxing Shaoxing
kitchen 40.00 Equity method
Bathroom City City
appliances
Technology Co., Ltd.
XI. Government Subsidies
1. Government subsidies recognized in accounts receivable at the end of the reporting period
□ Applicable Not applicable
Reasons for a failure of receiving the expected amount of government subsidies at the expected time point
□ Applicable Not applicable
2. Liabilities involving government subsidies
Applicable □ Not applicable
Unit: yuan
Amount
Amount Other
Amount of included in
Accounting transferred to other changes Asset/income
Beginning balance additional subsidy current non- Ending balance
subject income in current in current related
in current period operating
period period
income
Deferred
123,912,110.43 32,914,193.20 20,288,048.89 136,538,254.74 Asset related
income
Total 123,912,110.43 32,914,193.20 20,288,048.89 136,538,254.74
3. Government subsidies included in current profit and loss
Applicable □ Not applicable
Unit: yuan
Accounting subject Amount incurred in current period Amount incurred in previous period
Other income 173,912,473.94 148,475,570.29
Other description:
XII. Risks Associated with Financial Instruments
1. Various types of risks arising from financial instruments
The main financial instruments of the Company include accounts receivable, accounts payable, etc. The detailed description of the
financial instruments is shown in Note VI. The risks associated with these financial instruments and the risk management policies
adopted by the Company to mitigate these risks are described below. The management of the Company shall manage and monitor
these risk exposures to ensure that the above risks are controlled within the limited scope.
1. The Company's various risk management objectives and policies are as follows:
The Company's risk management is to strike an appropriate balance between risks and benefits, minimize the negative impact of
risks on the Company's business performance and maximize the interests of shareholders and other equity investors. Based on this
risk management objective, the basic strategy of the Company's risk management is to determine and analyze various risks faced
by the Company, establish an appropriate bottom line for risk tolerance, make risk management and timely and reliably supervise
various risks to control the risks within the limited scope.
Market risk - price risk
The Company sells the products at market prices and are therefore subject to fluctuations in these prices.
Credit risk
The largest credit risk exposure that may cause financial losses of the Company on December 31, 2023 mainly comes from the
loss of financial assets of the Company caused by the failure of the other party to fulfill its obligations, including the book value of
financial assets recognized in the consolidated balance sheet.
In order to reduce credit risks, the Company shall assign special personnel to determine the credit limit, conduct credit
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2023 Full Annual Report
examination and approval, and implement other monitoring procedures to ensure that necessary measures are taken to recover
overdue claims. Moreover, the Company shall review the recovery of each single receivable on each balance sheet date to ensure
that adequate bad debt provisions are withdrawn for unrecoverable amounts. Therefore, the Company's management believes that
the Company's credit risk has been greatly reduced.
The Company's working capital is deposited in banks with high credit rating, so the credit risk of working capital is low.
There is no significant credit concentration risk due to the Company's risk exposure to multiple parties and customers.
The Company has adopted the necessary policies to ensure that all sales customers have good credit records. The Company has no
significant credit concentration risk.
Total amount of the top 5 accounts receivable: RMB 1,345,949,178.24.
Total amount of the top 5 other receivables: RMB 29,443,835.51.
Liquidity risk:
The risk that the Company is unable to perform its financial obligations at maturity. The Company manages its liquidity risk by
ensuring that it has sufficient liquidity to meet maturing obligations without causing unacceptable losses or damage to the
credibility of the business. The management of the Company has conducted a detailed inspection on the working capital of the
Company and regularly analyzed the debt structure, term and bank line of credit to ensure sufficient funds. The conclusion is that
the Company has sufficient funds to meet the needs of the Company's short-term debts and capital expenditures. The financial
assets and financial liabilities held by the Company are analyzed as follows according to the maturity of undiscounted remaining
contractual obligations:
Amount on December 31, 2023:
More than five
Item Within one year One to two years Two to five years Total
years
Financial assets
Monetary capital 1,985,050,745.11 1,985,050,745.11
Trading financial
2,730,000,000.00 2,730,000,000.00
assets
Notes receivable 696,284,931.64 696,284,931.64
Accounts
1,810,015,596.33 1,810,015,596.33
receivable
Other receivables 53,368,667.34 53,368,667.34
Other current assets 2,644,890,957.65 2,644,890,957.65
Other non-current
financial assets
480,000,000.00 480,000,000.00
Other non-current
assets
1,400,000,000.00 370,000,000.00 1,770,000,000.00
Financial
liabilities
Short-term
95,003,320.70 95,003,320.70
borrowing
Notes payable 1,098,720,000.58 1,098,720,000.58
Accounts payable 2,548,743,762.06 2,548,743,762.06
Other payables 283,917,461.76 283,917,461.76
Payroll payable 177,923,042.01 177,923,042.01
Other current
118,041,351.23 118,041,351.23
liabilities
Non-current
liabilities due 4,522,658.42 4,522,658.42
within a year
Lease liabilities 1,570,819.57 5,628,481.00 3,551,492.33 10,750,792.90
Sensitivity analysis of foreign exchange risk
The Company's exchange rate risk is mainly related to US dollar, Euro, Australian dollar and other currencies. The foreign
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2023 Full Annual Report
exchange risk borne by the Company is mainly related to USD (which shall be modified according to the actual situation), and the
main business activities of the Company are denominated and settled in RMB. As of December 31, 2023, the Company's assets
and liabilities were RMB balance, except the foreign currency balance of the assets and liabilities in Note "VI. Foreign currency
monetary items". The foreign exchange risks arising from the assets and liabilities of such foreign currency balance may have an
impact on the Company's business performance.
The Company pays close attention to the exchange rate movement on its foreign exchange risks, and has not taken any measures to
avoid foreign exchange risks.
XIII. Fair Value Disclosure
1. Ending fair value of assets and liabilities measured with fair value
Unit: yuan
Ending fair value
Item Measurement of fair Measurement of fair Measurement of fair
Total
value at the first level value at the second level value at the third level
I. Continuous fair value
-- -- -- --
measurement
(I) Trading financial
2,730,000,000.00 2,730,000,000.00
assets
1. Financial assets
measured with fair
value and with the
2,730,000,000.00 2,730,000,000.00
changes included in
current profit and
loss
(2) Equity instrument
2,116,023.22 2,116,023.22
investments
Other non-current
480,000,000.00 480,000,000.00
financial assets
Total assets continuously
3,212,116,023.22 3,212,116,023.22
measured at fair value
II. Non-continuous fair
-- -- -- --
value measurement
2. Continuous and non-continuous measurement items of fair value at first level and recognition basis
for market price
3. Continuous and non-continuous measurement items of fair value at second level, qualitative and
quantitative information on valuation techniques adopted and important parameters
4. Continuous and non-continuous measurement items of fair value at third level, qualitative and
quantitative information on valuation techniques adopted and important parameters
Relationship
Significant
December 31, 2023 between
Item Valuation technique unobservab
Fair value unobservable value
le value
and fair value
Investment
Financial products 3,210,000,000.00 Best estimate of fair value —
cost
Other equity instrument Investment
2,116,023.22 Best estimate of fair value —
investments cost
XIV. Related Parties and Related Transactions
1. Parent company of the Company
Shareholding ratio
Voting right ratio of
Parent company of the parent
Registration place Business nature Registered capital the parent company
name company in the
in the Company
Company
Hangzhou Robam Hangzhou, Zhejiang Investment and RMB 60 million 49.68% 49.68%
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2023 Full Annual Report
Industrial Group industrial
Co., Ltd. management
Description of the parent company of the Company
The ultimate controlling party of the Company is Ren Jianhua.
2. Subsidiaries of the Company
See Note X.1 for details of the Company's subsidiaries.
3. Cooperative enterprises and joint ventures
See Note X.2 for important cooperative enterprises or joint ventures of the Company.
Other cooperative enterprises or joint ventures that made related party transactions with the Company in the current period, or
formed the balance of related party transactions with the Company in the previous periods are as follows:
Name of cooperative enterprise or joint venture Relationship with the Company
Hangzhou Amblem Kitchenware Co., Ltd. Controlled by the same final controller
Hangzhou ROBAM Gas Station Co., Ltd. Controlled by the same final controller
Hangzhou Nbond Nonwoven Co., Ltd. Controlled by the same final controller
Hangzhou Yuhang Matt Spray Painting Factory Other related parties
Garden Hotel Hangzhou Other related parties
Hangzhou Bonyee Daily Necessity Technology Co., Ltd. Controlled by the same final controller
Shaoxing Kinde Electric Appliance Co., Ltd. Other related parties
Hangzhou Guoguang Touring Commodity Co., Ltd. Controlled by the same final controller
Hangzhou Seazons Health Care Products Co., Ltd. Controlled by the same final controller
Hangzhou Linping ROBAM Charity Foundation Other related parties
Hangzhou Runqun Hardware Co., Ltd. Other related parties
4. Related transaction
(1) Related transaction of purchases and sales of goods, provision and acceptance of services
Purchase of goods/acceptance of services
Unit: yuan
Whether the
Related transaction Amount incurred in Approved Amount incurred in
Related party transaction quota is
content current period transaction quota previous period
exceeded
Hangzhou Amblem
Kitchenware Co., Product purchase 2,800,166.35 No 28,302,583.22
Ltd.
Hangzhou Yuhang
Matt Spray Painting Labor receiving 805,737.87 No 9,589,975.85
Factory
Hangzhou Seazons
Health Care Product purchase 2,148,302.12 No 2,704,152.47
Products Co., Ltd.
Hangzhou Nbond
Product purchase 100,617.26 No 95,302.65
Nonwoven Co., Ltd.
Hangzhou
Guoguang Touring
Product purchase 22,643.45 No 106,473.99
Commodity Co.,
Ltd.
Hangzhou Bonyee
Daily Necessity
Product purchase 27,036.46 No 8,728.42
Technology Co.,
Ltd.
Shaoxing Shuaige
Kitchen and Product purchase 26,672.57 No 1,983,294.00
Bathroom
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2023 Full Annual Report
Technology Co.,
Ltd.
Hangzhou ROBAM
Gas Station Co., Product purchase 1,052,126.35 No 995,343.75
Ltd.
Hangzhou Runqun
Product purchase 10,698,089.17 No
Hardware Co., Ltd.
Zhejiang Tingshuo
Brand Operation
Labor receiving No 400,760.00
Management Co.,
Ltd.
Selling commodities/offering labor
Unit: yuan
Amount incurred in current Amount incurred in previous
Related party Related transaction content
period period
Hangzhou Amblem
Selling goods 3,531,669.93 5,814,674.29
Kitchenware Co., Ltd.
Hangzhou Linping ROBAM
Selling goods 4,809,131.50 3,914,955.70
Charity Foundation
De Dietrich Trade (Shanghai)
Selling goods 930,819.37 1,326,580.82
Co., Ltd.
Hangzhou Nbond Nonwoven
Selling goods 20,202.78 10,746.90
Co., Ltd.
Hangzhou Runqun Hardware
Selling goods 30,097.35
Co., Ltd.
(2) Related-party lease
The Company as the lessor:
Unit: yuan
Lease income recognized in the Lease income recognized in the
Name of lessee Type of leased assets
current period previous period
Hangzhou Robam Industrial
House 28,800.00 28,800.00
Group Co., Ltd.
The Company as the lessee:
Unit: yuan
Variable
lease
Simplified treatment payments
Interest
of rental costs for not included
expenses Increased right-of-
short-term lease and in the Rent paid
incurred on use assets
low-value asset measuremen
lease liabilities
lease (if applicable) t of lease
Type liabilities (if
of applicable)
Name of lessor
leased Amo Amo
assets Amo
unt unt
unt
Amount Amount incur incu Amount Amount Amount
incurr
incurred incurred red Amount Amount incurred rred incurred incurred incurred
ed in
in in in incurred in in previous in in in in
curre
current previous previ current period period curr previous current previous
nt
period period ous ent period period period
perio
perio peri
d
d od
Hangzhou
Robam Industrial House 550,024.57 550,024.57
Group Co., Ltd.
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2023 Full Annual Report
5. Accounts receivable and payable by related parties
(1) Receivables
Unit: yuan
Ending balance Beginning balance
Item name Related party Provision for bad Provision for bad
Book balance Book balance
debt debt
De Dietrich Trade
Accounts receivable 1,051,825.87
(Shanghai) Co., Ltd.
Hangzhou Amblem
Accounts receivable 1,432,274.00
Kitchenware Co., Ltd.
Hangzhou Seazons
Advance to supplier Health Care Products 3,769.89
Co., Ltd.
Total 1,051,825.87 1,436,043.89
(2) Payables
Unit: yuan
Item name Related party Ending book balance Beginning book balance
Hangzhou Yuhang Matt Spray
Accounts payable 3,043,849.87
Painting Factory
Hangzhou ROBAM Gas
Accounts payable 3,736,997.95 2,548,095.18
Station Co., Ltd.
Hangzhou Guoguang Touring
Accounts payable 6,963.19
Commodity Co., Ltd.
Hangzhou Amblem
Accounts payable 1,366,001.27 4,386,391.83
Kitchenware Co., Ltd.
Shaoxing Shuaige Kitchen and
Accounts payable 298,021.70
Bathroom Technology Co., Ltd.
Hangzhou Runqun Hardware
Accounts payable 4,936,378.35
Co., Ltd.
Hangzhou Amblem
Other payables 5,000.00
Kitchenware Co., Ltd.
Hangzhou Runqun Hardware
Other payables 200,000.00
Co., Ltd.
Hangzhou Yuhang Matt Spray
Other payables 200,000.00
Painting Factory
Hangzhou Guoguang Touring
Other payables 2,000.00 2,000.00
Commodity Co., Ltd.
Total 10,246,377.57 10,485,321.77
XV. Share-based Payment
1. Overall status of share-based payment
Applicable □ Not applicable
Unit: yuan
Invalidated in current
Granted in current period Exercised in current period Unlocked in current period
Granted to period
Quantity Amount Quantity Amount Quantity Amount Quantity Amount
27,577,900.0 10,340,400.0
Management 5,520,000 4,319,000
0 0
27,577,900.0 10,340,400.0
Total 5,520,000 4,319,000
0 0
2. Equity-settled share-based payments
Applicable □ Not applicable
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2023 Full Annual Report
Unit: yuan
Method for determining the fair value of equity instruments on The Company evaluates the fair value of the stock options with
the grant date the internationally recognized BlackScholes option pricing model
Important parameters of the fair value of equity instruments on Optimum estimation for the number of equity instruments with
the grant date exercisable rights
Basis for the determination of the number of equity instruments
N/A
with exercisable rights
Reasons for significant differences between the current estimate
N/A
and the previous estimate
Accumulated amount of equity-settled share-based payments
9,634,774.60
recorded in capital reserves
Total amount of expenses recognized by equity-settled share-
1,780,548.64
based payments in current period
3. Share-based payments in current period
Applicable □ Not applicable
Unit: yuan
Granted to Equity-settled share-based payments Cash-settled share-based payment
Management 1,780,548.64
Total 1,780,548.64
XVI. Commitment and Contingencies
1. Important commitment issues
Important commitments on balance sheet date
1. Investment commitments to subsidiaries and associated companies
The Company has committed to invest RMB 4 million in Zhejiang Tingshuo Brand Operation Management Co., Ltd., an
associated company of the Company. At present, RMB 2 million has been paid in, accounting for 40% of the equity, and RMB 2
million has not been paid.
Except for the above commitment, the Company has no other major commitments.
2. Contingencies
(1) Important contingencies on balance sheet date
The Company had no significant contingencies to be disclosed as of December 31, 2023.
(2) Explanation even if the Company has no important contingencies to be disclosed
The Company has no important contingencies to be disclosed.
XVII. Post-balance Sheet Events
1. Important non-adjustment items
Unit: yuan
Impact on
financial Reasons for inability
Item Contents
condition and to estimate impact
operating results
On April 24, 2024, the 5th meeting of the sixth Board of
Directors of the Company deliberated and approved the
Company's Proposal on 2024 Stock Option Incentive Plan (draft)
of the Company and its Abstract. The incentive plan mainly takes
Issuance of stocks the operating income from 2024 to 2026 as the performance
and bonds evaluation target, and provides stock option incentive to middle
management and core technology (business) backbones working
in the Company (including subsidiaries). The proposal still shall
be subject to the deliberation and approval by the Company's
annual general meeting of shareholders in 2023.
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Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Impact on
financial Reasons for inability
Item Contents
condition and to estimate impact
operating results
1. On January 26, 2024, the General Manager's Office passed
the following resolutions: ROBAM Appliances (Hong Kong)
Holdings Limited will hold 100% of the newly established
Robam Appliances US Holding INC. with a registered capital
of US$ 5,000; The newly established ROBAM Appliances
(Angeles) Trading Co., Ltd., which is held by Robam
Appliances US Holding INC. and WGSZ HOLDING LLC
with ownership of 70% and 30% respectively, has a
registered capital of US$ 10,000, and is mainly engaged in
the sales of large household kitchen appliances.
Important foreign On January 29, 2024, Robam Appliances US Holding INC
investment was formally established with a registration certificate at 8
The Green, Ste A, Dover DE 19901.
2. On March 11, 2024, the General Manager's Office passed the
resolution of establishing a subsidiary in Chengdu. On March
27, 2024, Chengdu ROBAM Innovation Technology Co.,
Ltd. was established with a registered capital of RMB
5,000,000, social unified credit code: of
91510100MADF89W069, legal representative of Ge Hao,
and registered address of No. 2902, 2903 and 2904, Block A,
No. 500, middle section of Tianfu Avenue, Chengdu Hi-tech
Zone, China (Sichuan) Pilot Free Trade Zone. It is mainly
engaged in technology development and services.
As of the reporting date, the newly signed accounts
receivable debt repayment agreement of the Company
amounted to RMB 120,903,600, including RMB
7,210,100 for which online signing and delivery
Important debt
restructuring
procedures have been completed; The amount of debt
repayment agreement entered into in 2023 and earlier
for which online signing and delivery procedures have
been completed between the balance sheet date and the
reporting date is RMB 5,269,000.
2. Profit distribution
Dividend to be distributed for every 10 shares (yuan) 5
Bonus shares to be distributed for every 10 shares (shares) 0
Increase shares to be distributed for every 10 shares (shares) 0
Dividend declared for every 10 shares after deliberation and
472,047,458.00
approval (yuan)
Bonus shares declared for every 10 shares after deliberation and
0
approval (shares)
Increase shares declared for every 10 shares after deliberation and
0
approval (shares)
On April 24, 2024, according to the Proposal on 2023 Annual
Profit Distribution Plan deliberated and adopted by the 5th
meeting of the sixth Board of Directors of the Company, based on
the total share capital of 944,094,916 (the existing total share
capital is 949,024,050 shares, excluding the repurchased
Profit distribution scheme
4,929,134 shares), the Company intends to pay a cash dividend of
RMB 5 (tax inclusive) per 10 shares to all shareholders, for a
total of RMB 472,047,458.00. The proposal still shall be subject
to the deliberation and approval by the Company's annual general
meeting of shareholders in 2023.
134
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XVIII. Other Important Matters
1. Debt restructuring matters
As of December 31, 2023, the Company has signed the following project mortgage property agreements
and completed the online signing procedures of the property as follows:
Amount of those not
Including: Amount of those
Amount of debt completing the online
Item completing the online signing
agreement signed signing or delivery
and delivery procedures
procedures
Real estate customers
438,424,074.19 113,254,178.18 325,169,896.01
(45)
Total 438,424,074.19 113,254,178.18 325,169,896.01
The total amount of accounts receivable involved in the project mortgage property agreements signed between the Company and
the aforementioned real estate customers is RMB 438,424,100, of which RMB 113,254,200 has been completed with online
signing and delivery procedures, the recognition of claims receivable of which has been terminated. The fair value of the
mortgaged property at the time of debt restructuring is reported in other non-current assets. The fair value of the property is RMB
118,637,900, which was confirmed through public market inquiry. The Company pays the difference of RMB 5,383,700 in cash,
the debt restructuring matters do not generate any restructuring gains or losses at the time of restructuring; The remaining RMB
325,169,900 has not yet been completed with online registration of the house and the Company has not terminated the recognition
of claims receivable, and make the provision for bad debts based on an expected credit loss rate of 35%.
XIX. Notes on Main Items of Parent Company's Financial Statement
1. Accounts receivable
(1) Disclosure by aging
Unit: yuan
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 1,489,994,730.67 1,304,372,596.67
1 to 2 years 472,477,129.39 1,288,794,867.92
2 to 3 years 885,752,898.72 51,406,707.51
More than 3 years 45,010,462.60 12,311,962.78
3 to 4 years 34,537,581.13 7,674,961.53
4 to 5 years 6,215,681.25 3,585,776.77
More than 5 years 4,257,200.22 1,051,224.48
Total 2,893,235,221.38 2,656,886,134.88
(2) Classified disclosure by bad debt provision method
Unit: yuan
Ending balance Beginning balance
Provision for bad
Book balance Provision for bad debt Book balance
debt
Category Accrui Book value
Book value
Proporti Accruing Proportio ng
Amount Amount Amount Amount
on proportion n proport
ion
Accounts
receivable of
1,550,300,6 1,053,487 496,813,57 1,543,955,9 972,062,3 571,893,590.
provision for 53.58% 67.95% 58.11% 62.96%
27.39 ,050.41 6.98 86.32 95.33 99
bad debt by
single item
Where:
Accounts
1,342,934,5 83,899,58 1,259,035, 1,112,930,1 64,280,21 1,048,649,93
receivable of 46.42% 6.25% 41.89% 5.78%
93.99 0.41 013.58 48.56 0.58 7.98
provision for
135
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
bad debt by
combination
Where:
Combination
98,882,576. 98,882,576 99,792,768. 99,792,768.3
of related 3.42% 3.76%
05 .05 36 6
party
Aging 1,244,052,0 83,899,58 1,160,152, 1,013,137,3 64,280,21 948,857,169.
43.00% 6.74% 38.13% 6.34%
combination 17.94 0.41 437.53 80.20 0.58 62
2,893,235,2 100.00 1,137,386 1,755,848, 2,656,886,1 1,036,342, 1,620,543,52
Total 39.31% 100.00% 39.01%
21.38 % ,630.82 590.56 34.88 605.91 8.97
Provision for bad debt by single item:
Unit: yuan
Beginning balance Ending balance
Name Accruing
Provision for bad Provision for bad Reasons for
Book balance Book balance proportio
debt debt provision
n
Expected
Unit 1 657,344,204.78 657,344,204.78 660,039,726.23 660,039,726.23 100.00%
irrecoverable
Expected to be
Unit 2 585,673,768.95 175,702,130.69 364,027,062.34 109,208,118.70 30.00% difficult to fully
recover
Expected to be
Unit 3 201,626,455.66 86,259,958.01 42.78% difficult to fully
recover
Expected to be
Unit 4 112,811,043.19 42,342,003.78 103,644,563.87 62,549,255.29 60.35% difficult to fully
recover
Settlement on
Unit 5 26,306,236.78 5,261,247.36 29,833,027.36 20,883,119.15 70.00%
house mortgage
Expected to be
Unit 6 20,263,294.09 5,751,727.45 28,796,628.81 12,808,177.77 44.48% difficult to fully
recover
Expected to be
Unit 7 27,754,259.57 18,956,340.20 25,826,189.64 17,748,183.70 68.72% difficult to fully
recover
Expected to be
Unit 8 21,370,090.54 14,959,063.38 22,983,529.61 15,004,193.26 65.28% difficult to fully
recover
Expected to be
Unit 9 15,100,611.29 8,471,506.90 56.10% difficult to fully
recover
Expected to be
Unit 10 14,139,851.56 8,965,986.59 13,643,117.43 7,265,607.25 53.25% difficult to fully
recover
Expected to be
Unit 11 16,210,905.78 11,325,134.05 11,403,482.66 6,897,017.86 60.48% difficult to fully
recover
Expected to be
Unit 12 10,185,685.90 2,157,682.25 9,391,156.30 4,698,425.06 50.03% difficult to fully
recover
Expected to be
Unit 13 9,181,060.96 6,426,742.67 9,180,961.06 9,180,961.06 100.00% difficult to
recover
Expected to be
Unit 14 8,009,318.82 2,345,903.11 8,175,007.62 3,440,071.29 42.08% difficult to fully
recover
Expected to be
Unit 15 9,475,265.17 6,632,685.62 7,305,800.75 5,114,060.53 70.00% difficult to fully
recover
136
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Beginning balance Ending balance
Name Accruing
Provision for bad Provision for bad Reasons for
Book balance Book balance proportio
debt debt provision
n
Expected to be
Unit 16 4,025,730.93 2,818,011.65 3,921,670.93 2,745,169.65 70.00% difficult to fully
recover
Expected to be
Unit 17 3,616,362.19 2,531,453.53 70.00% difficult to fully
recover
Expected to be
Unit 18 3,317,253.79 1,554,840.55 46.87% difficult to fully
recover
Expected to be
Unit 19 3,310,609.08 1,715,551.82 51.82% difficult to fully
recover
Expected to be
Unit 20 3,056,422.32 1,145,907.85 37.49% difficult to fully
recover
Expected to be
Unit 21 21,205,269.30 11,073,531.75 22,100,988.45 14,225,744.95 64.37% difficult to fully
recover
Total 1,543,955,986.32 972,062,395.33 1,550,300,627.39 1,053,487,050.41
Provision for bad debt by combination: Provision for bad debt of accounts receivable was made by combination of related parties
Unit: yuan
Ending balance
Name
Book balance Provision for bad debt Accruing proportion
Within 1 year 98,882,576.05
1~2 years
2~3 years
3~4 years
4~5 years
More than 5 years
Total 98,882,576.05
Provision for bad debt by combination: Provision for bad debt of accounts receivable was made by aging combination
Unit: yuan
Ending balance
Name
Book balance Provision for bad debt Accruing proportion
Within 1 year 1,054,069,514.58 52,703,475.72 5.00%
1~2 years 132,363,246.03 13,236,324.60 10.00%
2~3 years 42,612,764.05 8,522,552.81 20.00%
3~4 years 9,947,056.51 4,973,528.26 50.00%
4~5 years 2,978,688.77 2,382,951.02 80.00%
More than 5 years 2,080,748.00 2,080,748.00 100.00%
Total 1,244,052,017.94 83,899,580.41
(3) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
Changes in amount in current period
Category Beginning balance Recovered or Canceled after Ending balance
Provision Other
reversed verification
Provision for bad 1,036,342,605.91 200,397,088.17 98,986,397.46 366,665.80 1,137,386,630.82
137
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Changes in amount in current period
Category Beginning balance Recovered or Canceled after Ending balance
Provision Other
reversed verification
debt of accounts
receivable
Total 1,036,342,605.91 200,397,088.17 98,986,397.46 366,665.80 1,137,386,630.82
Where the amount of bad debt provision recovered or transferred back is important:
Unit: yuan
The basis and rationality
Recovered or reversed for determining the
Unit name Reason for reversal Recovery mode
amount proportion of the original
bad debt provision
Bank transfer, deduction
Unit 1 221,825,902.65
of fees
Bank transfer, house
Unit 2 15,782,678.82
mortgage
Bank transfer, house
Unit 3 7,084,588.48
mortgage
Bank transfer, house
Unit 4 6,187,078.87
mortgage
Bank transfer, house
Unit 5 6,076,928.75
mortgage
Bank transfer, house
Unit 6 3,888,813.74
mortgage
Bank transfer, house
Unit 7 3,883,348.75
mortgage
Bank transfer, house
Unit 8 2,483,437.46
mortgage
Bank transfer, house
Unit 9 1,849,551.00
mortgage
Bank transfer, house
Unit 10 1,773,645.05
mortgage
Bank transfer, house
Unit 11 1,392,336.16
mortgage
Bank transfer, house
Unit 12 3,449,421.99
mortgage
Total 275,677,731.72
(4) Accounts receivable actually written off at the current period
Unit: yuan
Item Write-off amount
Accounts receivable written off actually 366,665.80
Write-off of important accounts receivable:
Unit: yuan
Whether the account
Nature of accounts Write-off is generated by
Unit name Write-off amount Cause for write-off
receivable procedures related party
transaction
Expected Approval by
Unit 1 payment for goods 115,502.00 No
irrecoverable management
Expected Approval by
Unit 2 payment for goods 92,977.60 No
irrecoverable management
Expected Approval by
Unit 3 payment for goods 87,416.37 No
irrecoverable management
Expected Approval by
Unit 4 payment for goods 27,800.00 No
irrecoverable management
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2023 Full Annual Report
Expected Approval by
Unit 5 payment for goods 42,969.83 No
irrecoverable management
Total 366,665.80
(5) Account receivable and contract assets with top 5 ending balances by debtor
Unit: yuan
Ending balance of
bad debt provision
Proportion in total
Ending balance of of accounts
Ending balance of Ending balance of ending balance of
Unit name accounts receivable receivable and
accounts receivable contract assets accounts receivable
and contract assets impairment
and contract assets
provisions of
contract assets
Unit 1 452,376,997.98 452,376,997.98 452,376,997.98
Unit 2 364,027,062.34 364,027,062.34 109,208,118.70
Unit 3 169,627,424.37 169,627,424.37 8,481,371.22
Unit 4 140,791,195.62 140,791,195.62 72,571,251.10
Unit 5 121,830,942.68 121,830,942.68 6,091,547.13
Total 1,248,653,622.99 1,248,653,622.99 648,729,286.13
2. Other receivables
Unit: yuan
Item Ending balance Beginning balance
Dividends receivable 10,200,000.00
Other receivables 46,761,052.06 73,700,676.77
Total 46,761,052.06 83,900,676.77
(1) Interest receivable
(2) Dividends receivable
1) Classification of dividends receivable
Unit: yuan
Project (or invested unit) Ending balance Beginning balance
Shengzhou Kinde Intelligent Kitchen
10,200,000.00
Electric Co., Ltd.
Total 10,200,000.00
(3) Other receivables
1) Other receivables classified by nature
Unit: yuan
Nature of payment Ending book balance Beginning book balance
Collection by third party 26,915,796.30 50,695,825.81
Margin and deposit 26,557,958.62 30,213,932.48
Associated contact 4,064,000.00 4,064,000.00
Imprest 1,409,298.88 1,972,794.63
Withheld amount 3,488,318.88 4,337,682.15
Project mortgage property 2,094,110.00
Other 83,894.77 6,022.00
Total 64,613,377.45 91,290,257.07
2) Disclosure by aging
Unit: yuan
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 39,791,252.20 66,837,836.02
139
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2023 Full Annual Report
1 to 2 years 5,238,428.30 6,804,424.74
2 to 3 years 4,102,774.20 3,014,521.11
More than 3 years 15,480,922.75 14,633,475.20
3 to 4 years 2,411,698.15 2,701,746.80
4 to 5 years 1,924,707.80 1,591,300.00
More than 5 years 11,144,516.80 10,340,428.40
Total 64,613,377.45 91,290,257.07
3) Classified disclosure by bad debt provision method
Unit: yuan
Ending balance Beginning balance
Book balance Provision for bad debt Book balance Provision for bad debt
Category Book Book
Accruing value Accruing value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Provision
for bad
2,094,110. 732,938.5 1,361,171.
debt by 3.24% 35.00%
00 0 50
single
item
Where:
Provision
for bad
62,519,26 17,119,38 45,399,88 91,290,25 17,589,58 73,700,67
debt by 96.76% 27.38% 100.00% 19.27%
7.45 6.89 0.56 7.07 0.30 6.77
combinati
on
Where:
Aging
62,519,26 17,119,38 45,399,88 91,290,25 17,589,58 73,700,67
combinati 96.76% 27.38% 100.00% 19.27%
7.45 6.89 0.56 7.07 0.30 6.77
on
64,613,37 17,852,32 46,761,05 91,290,25 17,589,58 73,700,67
Total 100.00% 27.63% 100.00% 19.27%
7.45 5.39 2.06 7.07 0.30 6.77
Provision for bad debt by single item:
Unit: yuan
Beginning balance Ending balance
Name Provision for bad Provision for bad Accruing Reasons for
Book balance Book balance
debt debt proportion provision
Unit 1 800,000.00 280,000.00 35.00% 预计发生减值
Unit 2 636,327.00 222,714.45 35.00% 预计发生减值
Unit 3 657,783.00 230,224.05 35.00% 预计发生减值
Total 2,094,110.00 732,938.50
Provision for bad debt by combination: provision for bad debt was made by aging combination
Unit: yuan
Ending balance
Name
Book balance Provision for bad debt Accruing proportion
Within 1 year (including 1
37,697,142.20 1,884,857.10 5.00%
year)
1--2 years 5,238,428.30 523,842.83 10.00%
2--3 years 4,102,774.20 820,554.84 20.00%
3--4 years 2,411,698.15 1,205,849.08 50.00%
4--5 years 1,924,707.80 1,539,766.24 80.00%
More than 5 years 11,144,516.80 11,144,516.80 100.00%
Total 62,519,267.45 17,119,386.89
140
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
Provision for bad debt was made based on general model of expected credit loss
Unit: yuan
Stage 1 Stage 2 Stage 3
Expected credit losses
Provision for bad debt Expected credit losses Total
Expected credit losses over the entire duration
over the entire duration
over the next 12 months (without credit
(with credit impairment)
impairment)
Balance on January 1,
17,589,580.30 17,589,580.30
2023
Balance on January 1,
2023 in current period
Withdrawn in current
-470,193.41 732,938.50 262,745.09
period
Balance on December
17,119,386.89 732,938.50 17,852,325.39
31, 2023
4) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
Changes in amount in current period
Beginning
Category Recovered or Write-off or Ending balance
balance Provision Other
reversed verification
Provision for bad
debt of other 17,589,580.30 262,745.09 17,852,325.39
receivables
Total 17,589,580.30 262,745.09 17,852,325.39
5) Other receivables with top 5 ending balances by debtor
Unit: yuan
Proportion in total
Ending balance of
Unit name Nature of payment Ending balance Aging other ending balance
bad debt provision
receivable
Collection by third
Unit 1 16,946,133.99 Within 1 year 26.23% 847,306.70
party
Unit 2 Deposit 4,928,000.00 More than 5 years 7.63% 4,928,000.00
Unit 3 Loan 4,064,000.00 More than 5 years 6.29% 4,064,000.00
Unit 4 Withheld amount 3,442,166.31 Within 1 year 5.33% 172,108.32
Collection by third
Unit 5 2,228,080.41 Within 1 year 3.45% 111,404.02
party
Total 31,608,380.71 48.93% 10,122,819.04
3. Long-term equity investment
Unit: yuan
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment
in 270,909,357.60 20,400,000.00 250,509,357.60 267,279,396.10 20,400,000.00 246,879,396.10
subsidiaries
Investment
in associated
enterprises 4,961,672.03 4,961,672.03 4,890,453.34 4,890,453.34
and joint
enterprises
Total 275,871,029.63 20,400,000.00 255,471,029.63 272,169,849.44 20,400,000.00 251,769,849.44
141
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2023 Full Annual Report
(1) Investment in subsidiaries
Unit: yuan
Increase or decrease in current period
Beginning Balance of
Beginning balance balance of Provisio Ending balance impairment
Invested unit Further Capital n for
(book value) impairment Other (book value) provision at the
provision investment reduction impairm end of period
ent
Shengzhou Kinde
Intelligent Kitchen 162,320,000.00 162,320,000.00
Electric Co., Ltd.
Hangzhou Mingqi
52,275,243.18 41,061.50 52,316,304.68
Electric Co., Ltd.
Dize Home
Appliances Trading 630,900.00 20,400,000.00 630,900.00 20,400,000.00
(Shanghai) Co., Ltd.
Shanghai ROBAM
Electric Appliance 5,838,272.10 5,838,272.10
Sales Co., Ltd.
Beijing ROBAM
Electric Appliance 5,814,980.82 5,814,980.82
Sales Co., Ltd.
Hangzhou ROBAM
Fuchuang Investment
10,000,000.00 10,000,000.00
Management Co.,
Ltd.
Hangzhou Jinhe
Electric Appliances 10,000,000.00 10,000,000.00
Co., Ltd
ROBAM Appliances
(Hong Kong) 3,588,900.00 3,588,900.00
Holdings Limited
Total 246,879,396.10 20,400,000.00 3,629,961.50 250,509,357.60 20,400,000.00
(2) Investment in associated enterprises and joint enterprises
Unit: yuan
Increase or decrease in current period
Beginn Adjust Balance
ing ment Declare
Investment of
Beginnin balanc Cap of d
gains and Provisio impairme
g balance e of Further ital other Changes payment Ending balance
Invested unit losses n for nt
(book impair investm red compr in other of cash Other (book value)
recognized by impairm provision
value) ment ent ucti ehensi equity dividen
the equity ent at the end
provisi on ve ds or
method of period
on incom profits
e
I. Cooperative enterprise
De Dietrich
Trade 3,824,460
497,269.36 4,321,729.39
(Shanghai) Co., .03
Ltd.
3,824,460
Subtotal 497,269.36 4,321,729.39
.03
II. Joint venture
Zhejiang
Tingshuo Brand
1,065,993
Operation -426,050.67 639,942.64
.31
Management
Co., Ltd.
1,065,993
Subtotal -426,050.67 639,942.64
.31
142
Hangzhou ROBAM Appliances Co., Ltd.
2023 Full Annual Report
4,890,453
Total 71,218.69 4,961,672.03
.34
4. Operating income and operating cost
Unit: yuan
Amount incurred in current period Amount incurred in previous period
Item
Income Cost Income Cost
Main business 9,896,457,532.30 5,078,924,538.77 9,254,790,315.93 4,792,994,074.50
Other businesses 296,611,622.16 159,955,374.43 269,759,869.66 108,497,967.17
Total 10,193,069,154.46 5,238,879,913.20 9,524,550,185.59 4,901,492,041.67
Information related to the transaction price apportioned to the remaining performance obligations:
The amount of income corresponding to the performance obligations signed but not yet performed or completed at the end of this
reporting period is RMB 1,019,942,923.58.
5. Investment income
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Long-term equity investment income
10,200,000.00
checked by cost method
long-term equity investment gains
71,218.69 -514,676.57
measured by employing the equity method
Investment income from trading financial
83,051,398.90 98,086,574.72
assets during the holding period
Total 83,122,617.59 107,771,898.15
6. Other
XX. Further Information
1. Current non-recurring gain and loss statement
Applicable □ Not applicable
Unit: yuan
Item Amount Description
Profit and loss on disposal of non-current
-1,212,528.65
assets
Government subsidies included into
current profits and losses (except those
government subsidies that are closely
related to normal business of the Company,
82,547,062.16
comply with national policies and
regulations, enjoyed according to defined
criteria, and have an ongoing impact on the
Company's profit or loss)
Reversal of impairment provision for
receivables subject to separate impairment 98,986,397.46
test
Income and expenditure other than those
-1,838,686.70
mentioned above
Minus: Amount affected by income tax 27,437,027.69
Amount of minority shareholders' equity
1,823,927.09
affected (after tax)
Total 149,221,289.49 --
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□ Applicable Not applicable
The Company does not have any other profit and loss items that meet the definition of non-recurring profit and loss.
143
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2023 Full Annual Report
Description of defining the non-recurring profit and loss items enumerated in the Interpretative Announcement No. 1 on
Information Disclosure of Public Securities Issuing Companies - Non-recurrent Profits and Losses as recurrent profit and loss
items
Applicable □ Not applicable
Item Amount involved (yuan) Cause
VAT exemption or reduction or refund 90,681,056.87 National tax policies, recurring business
Individual income tax service charge
684,354.91 National tax policies, recurring business
refund
2. Return on net assets and earnings per share
Weighted average return on net Earnings Per Share
Reporting profit
assets Basic EPS (yuan/share) Diluted EPS (yuan/share)
Net profit attributable to
common shareholders of the 16.78% 1.83 1.83
Company
Net profit attributable to
common shareholders of the
15.29% 1.66 1.66
Company after deduction of
non-recurring profits and losses
3. Differences in Accounting Data under Domestic and Foreign Accounting Standards
(1) Differences between net profits and net assets in financial statements disclosed according to the
International Accounting Standards (IAS) and Chinese Accounting Standards simultaneously
□ Applicable Not applicable
(2) Differences between net profits and net assets in financial statements disclosed according to the
Overseas Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable Not applicable
(3) Causes for differences in accounting data under domestic and foreign accounting standards. If the
difference adjustment has been made to the data audited by the overseas audit institution, the name
of the overseas audit institution shall be indicated
144
