Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2024
Hangzhou Robam Appliances Co., Ltd.
Semi-Annual Report 2024
August 2024
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2024
Chapter 1 Important Notes, Contents and Interpretations
The Board of Directors, the Board of Supervisors, as well as the directors,
supervisors and senior management of Hangzhou Robam Appliances Co., Ltd.
(the Company) hereby guarantee that there are no false representations,
misleading statements, or material omissions in this Semi-Annual Report (“the
Report”), and are severally and jointly liable for the authenticity, accuracy and
completeness of the information contained herein.
Ren Jianhua, the head of the Company, Zhang Guofu, the person in
charge of the Company’s accounting, and Zhang Guofu, the head of the
accounting department (the accountant in charge) hereby declare and warrant
that the financial report contained in the Report is authentic, accurate, and
complete.
All the directors attended a Board meeting during which they reviewed the
Report.
The Company is exposed to risks such as fluctuations in the real estate
market policies, fluctuations in raw material prices and intensified market
competition. Investors are advised to be aware of the investment risks.
The Company's profit distribution plan approved by the Board of
Directors is as follows: based on the total of 944,127,316 shares, a cash
dividend of RMB 5 (inclusive of tax) will be distributed to all shareholders for
every 10 shares held. No bonus shares (inclusive of tax) will be issued, and
there will be no capital reserve converted into capital stock.
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Contents
Chapter 1 Important Notes, Contents and Interpretations ................................................................................. 2
Chapter 2 Company Profile and Major Financial Indicators ............................................................................. 6
Chapter 3 Management Discussion and Analysis ................................................................................................. 9
Chapter 4 Corporate Governance ........................................................................................................................ 21
Chapter 5 Environmental and Social Responsibilities ....................................................................................... 28
Chapter 6 Significant Matters .............................................................................................................................. 29
Chapter 7 Changes in Shares and Shareholders................................................................................................. 33
Chapter 8 Preferred Shares .................................................................................................................................. 38
Chapter 9 Bonds .................................................................................................................................................... 39
Chapter 10 Financial Report ................................................................................................................................ 40
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2024
Documents Available for Reference
1. Financial statements signed and sealed by the legal representative, the person in charge of accounting of the Company, and the
person in charge of the accounting firm.
2. Original copies of documents and announcements of the Company published in the newspaper designated by China Securities
Regulatory Commission during the Reporting Period.
3. The Semi-Annual Report 2024 signed by the legal representative on behalf of the Company.
4. Other documents.
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Interpretations
Item refer(s) to Contents
The Company, Company, Robam Appliances refer(s) to Hangzhou Robam Appliances Co., Ltd.
MingQi refer(s) to Hangzhou MingQi Electric Co., Ltd.
Shengzhou Kinde Intelligent Kitchen Appliance Co.,
Kinde refer(s) to
Ltd.
Jinhe Electric Appliance refer(s) to Hangzhou Jinhe Electric Appliances Co., Ltd.
Hangzhou Robam Industrial Group Co., Ltd.,
Robam Group refer(s) to
controlling shareholder of the Company
The reporting period refer(s) to The first half of 2024
AVC refer(s) to Beijing All View Cloud Data Technology Co., Ltd.
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2024
Chapter 2 Company Profile and Major Financial Indicators
I. Company Profile
Stock abbreviation Robam Stock code 002508
Stocks traded on Shenzhen Stock Exchange
Chinese name of the
Hangzhou Robam Appliances Co., Ltd.
Company
Short Chinese name of the
Robam
Company (if any)
Short English name of the
ROBAM
Company (if any)
Legal representative of the
Ren Jianhua
Company
II. Contact Person and Contact Information
Secretary of the Board of Directors Representative of securities affairs
Name Wang Gang
No. 592, Linping Avenue, Linping
Contact address District, Hangzhou City, Zhejiang
Province
Telephone 0571-86187810
Fax 0571-86187769
E-mail wg@robam.com
III. Other Information
1. Contact information
Whether the registered address, office address and zip code as well as the website and email address of the Company changed
during the reporting period?
□Applicable Not applicable
There were no changes in the registered address, office address and zip code as well as the website and email address of the
Company during the reporting period. For details, please refer to the Annual Report 2023.
2. Information disclosure and filing location
Whether the information disclosure and filing locations changed during the reporting period?
□Applicable Not applicable
During the reporting period, there were no changes in the website of stock exchange and name and website of media designated
for information disclosure of the semi-annual report and the location for filing the semi-annual report of the Company. For details,
please refer to the Annual Report 2023.
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3.Other information
Whether other relevant information changed during the reporting period?
□Applicable Not applicable
IV. Key Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of previous years?
□ Yes No
The reporting period The same period last year YoY change
Operating income (RMB) 4,729,354,071.80 4,934,869,800.15 -4.16%
Net profit attributable to
shareholders of the listed 759,358,954.74 829,718,350.69 -8.48%
company (RMB)
Net profit attributable to
shareholders of the listed
657,758,277.88 746,691,977.38 -11.91%
company after deducting non-
recurring gains/losses (RMB)
Net cash flow from operating
414,005,591.39 959,732,853.23 -56.86%
activities (RMB)
Basic EPS (RMB/share) 0.80 0.87 -8.05%
Diluted EPS (RMB/share) 0.80 0.87 -8.05%
Weighted average return on
7.01% 8.24% A decrease of 1.23%
net assets
End of the reporting period End of last year Change
Total assets (RMB) 15,983,377,229.74 16,779,531,315.72 -4.74%
Net assets attributable to
shareholders of the listed 10,818,961,564.20 10,522,938,731.68 2.81%
company (RMB)
V. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Whether there are differences in the net profit and net asset disclosed in the Financial Report under
International Accounting Standards (IAS) and China’s accounting standards?
□Applicable Not applicable
There is no difference in the net profit and net asset disclosed in the Financial Report under IAS and China’s accounting standards
during the reporting period.
2. Whether there are differences in the net profit and net asset disclosed in the Financial Report under
foreign accounting standards and China’s accounting standards during?
□Applicable Not applicable
There is no difference in the net profit and net asset disclosed in the Financial Report under foreign accounting standards and
China’s accounting standards during the reporting period.
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VI. Items and Amounts of Non-recurring Gains and Losses
Applicable □Not applicable
In RMB
Item Amount Description
Gains and losses on disposal of non-current assets (including the written-off
-762,764.73
part of the provision for asset impairment accrued)
Government subsidies included in current gains and losses (excluding
government subsidies closely related to the Company's normal business,
47,398,220.55
enjoyed in line with national policy and established standards, and having a
sustained impact on the Company's gains and losses).
Reversal of impairment provision for accounts receivable tested for impairment
76,760,426.90
separately
Other non-operating revenues and expenses except the above items -2,205,082.29
Less: Affected amount of income tax 18,416,180.25
Affected amount of minority shareholders’ equity (after tax) 1,173,943.32
Total 101,600,676.86
Other items of gains and losses meeting the definition of non-recurring gains and losses:
□Applicable Not applicable
The Company does not have other items of gains and losses meeting the definition of non-recurring gains and losses
Explanation on the circumstance where items of the non-recurring gains and losses listed in the Explanatory Announcement No. 1
on Information Disclosure for Companies Offering Their Securities to the Public — Non-recurring Gains and Losses (referred to
as “Announcement No.1”) are defined as recurring profits and losses
Applicable □Not applicable
Item Amount (in RMB) Reasons
VAT exemption, reduction or refund 37,394,570.29 National tax policy, regular business
Refund of individual income tax
421,243.63 National tax policy, regular business
handling fee
Total 37,815,813.92
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2024
Chapter 3 Management Discussion and Analysis
I. Main Businesses during the Reporting Period
In the first half of 2024, the domestic real estate industry remained in a phase of clearing and adjustment. The
kitchen appliance industry is affected by intensified market competition and a decline in consumer spending
willingness, leading to a general slowdown in market growth and significant disparities among different channels. In
terms of the retail channel, as shown in AVC monthly data report based on offline retail market monitoring (“AVC
Offline Report”), the year-on-year (YoY) growth of the retail sales of the main categories of kitchen appliances, i.e.
range hoods and gas stoves, registered 6.4% and 7.8% respectively. In terms of the e-commerce channel, as shown in
AVC monthly data report based on online retail market monitoring (“AVC Online Report”), the YoY decline of the
retail sales of the kitchen appliances package registered 6.0%. In terms of the developer channel, as shown in the
AVC Real Estate Big Data (“AVC Real Estate Report”), due to the sluggish sales of new houses/apartments, there
were 301,500 sets of newly launched houses/apartments with fine decoration in the first half of the year, a YoY
decrease of 19.2%; the penetration rate of fine decoration projects was 35.1%, a YoY decrease of 1.7 percentage
points, both showing a continuous downward trend. In the first half of 2024, the completed residential area was
192.59 million square meters, a decrease of 21.7% compared to the high base under the "ensuring housing project
delivery" policy last year. Consequently, the new demand in the kitchen appliance industry has significantly declined.
Facing numerous adverse factors, Robam, has maintained its leading position in the industry by actively
pursuing development under the annual business philosophy of “Dreaming Big, Evolving Boldly - Constructing a
New Blueprint for the Entire Cooking Process”. According to the AVC Offline Report, the retail sales and its market
share of Robam range hood were 31.9% and 26.1% respectively, while the retail sales and its market share of Robam
gas stove were 31.3% and 22.9% respectively. As shown in the AVC Online Report, the retail sales and its market
share of Robam kitchen appliance package were 27.0% and 20.9% respectively; all the above indexes ranking first in
the industry. In the first half of 2024, the Company achieved a revenue of RMB 4.729 billion, representing a YoY
decrease of 4.16%. The net profit attributable to shareholders of the listed company was RMB 759 million, a YoY
decrease of 8.48%.
As of June 30, 2024, according to AVC Offline Report, the market shares and market rankings of the
Company’s main product categories in terms of offline retail sales are shown in the following table:
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2024
Range hoods Gas stove Disinfection Built-in Built-in Built-in Dishwasher Integrated
cabinet Combi-steam Electric steam Electric stove
oven oven baking oven
31.9% 31.3% 19.8% 26.8% 20.9% 17.6% 18.4% 37.6%
1 1 2 1 3 2 2 1
As of June 30, 2024, according to AVC Online Report, the market shares and market rankings of the Company’s
main product categories in terms of online retail sales are shown in the following table:
Kitchen appliance 2-piece package of Range hoods Gas stove Built-in combi- Built-in electric
package range hood and steam oven steam oven
stove
27.0% 28.2% 16.3% 11.9% 11.4% 17.5%
1 1 1 2 3 3
As of June 30, 2024, according to AVC Real Estate Report, the market share of Robam range hoods in the fine
decoration channel was 23.4%, ranking second in the industry.
In the first half of 2024, the technology sector continued to lead industry innovation by focusing on three key
areas: product innovation, digital leadership, and management enhancement, thereby driving the implementation of
comprehensive cooking chain solutions. Throughout the first half of the year, the Company continued to develop and
launch new products, with a particular focus on the research and market introduction of the "Chic Series" product line
and several core products. Significant breakthroughs were achieved in AI cooking models, the development of a
digital kitchen appliance ecosystem, voice and NLP technologies, and the IoT platform. Additionally, the Company
improved its internal standardization processes to enhance its professionalism in management. As of June 30, 2024,
the Company has granted a total of 5,064 authorized patents, including 261 invention patents. The Company also
involved in the formulation of 155 standards, leading the development of 42 of them, which included 2 international
standard proposals and 4 national standards. In February, the international standard proposal for range hoods, led by
the Company under the International Electrotechnical Commission (IEC), was officially released. In addition, the
digital kitchen appliance combi-steam oven iH1 and the Robam high-performance integrated stove black crystalline
steel 9ZC23 respectively won the AWE Top Award and AWE Design Award.
In the first half of 2024, the marketing sector remained committed to a user-centric approach, continuously
advancing business and organizational restructuring. The Company steadfastly promoted the high-end branding of
Robam and the popularization of MingQi brand, facilitating coordinated progress across the multi-brand matrix to
comprehensively cater to diverse needs of users. In retail channels, the focus was on user-oriented organizational
upgrades. The Company has diligently enhanced the all-channels user engagement system, and significantly
strengthened store operations. At the same time, the Company actively responded to China's trade-in policy by
launching a series of initiatives, such as "half-price for new ones with old kitchen appliances". Additionally, the
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2024
Company offered services such as “same-day delivery and installation, with replacement in as fast as 2 hours” and
free cabinet renovation to address any concerns of customers they may have about upgrading their appliances.
Against the backdrop of a generally declining new housing market, the Company made significant efforts to expand
the existing market, which helped the retail channels achieve growth against the trend in the first half of the year. In
the e-commerce channel, the Company conducted in-depth analysis of users' needs, actively engaged in external
promotion, and effectively utilized in-platform traffic resources. By leveraging multi-category collaboration, the
Company improved the structure and quality of channel sales. In the developer channel, the Company expanded
product categories to scale up sales, strictly controlled channel risks, optimized customer structure, and advanced
high-end breakthroughs and diversified innovation. In the overseas market, the Company steadily promoted its going
global strategy and advanced brand internationalization efforts.
In the first half of 2024, the production sector, with the core of "Consolidating Efforts to Restructure and
Connect with the Future," achieved continuous innovation through the synergy of strategic planning, streamlined
processes and consolidated efforts. The sector made significant progress in three main areas: user focus, operational
efficiency, and transformative change. This approach facilitated business evolution, organizational thinking
advancement, and the development of new organizational capabilities, all aimed at meeting users' needs and
positioning the Company as one of the most competitive benchmarks in China's manufacturing industry. Starting
from the principle of "User First," the Company aimed to build differentiated manufacturing and supply capabilities,
enhanced quality control, and improved product delivery. Focused on operational efficiency, the Company developed
refined cost management capabilities and established mechanisms for the effective utilization of resources.
Embracing innovation and leading development, the Company drove end-to-end integrated supply chain
transformation, reconstructed digital manufacturing capabilities, and enhanced digital supply chain management. This
approach supported business transformation and lean innovation, positioning the Company as a leader in
manufacturing excellence.
In the first half of 2024, the brand sector continued to anchor itself in the cooking industry, adhering to a path of
integrating technology with cultural development. Embracing its new identity as a "comprehensive solution provider
for the entire cooking process", the sector redefined the meaning and value of cooking while striving to establish
itself as the leading high-end kitchen appliance brand in China. Focusing on the comprehensive cooking process and
digital cooking technology experience, the sector showcased its multi-brand matrix under the theme "Welcome to the
Digital Cooking World" at 2024 AWE (Appliance and Electronics World Expo). In addition, Robam Appliances held
the 2024 Robam Appliances Range Hood Ultra-Slim Trend Conference, and released the Double Ultra-slim U Series
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Range Hood. In collaboration with TikTok Shop's Super Brand Day, the Company held the "Philosophy in the Chic
Kitchen" new product launch event. The highlight of the event was the introduction of the Chic Series G1 set,
followed by the comprehensive upgrade and launch of the Guangyan S1 Plus dishwasher disinfector. In March, the
Company collaborated with the Color Research Institute of China Academy of Art to create the artist version of gas
water heater Chuan HT730. This product was showcased at the "Great Rivers, Ultimate Beauty" art exhibition held at
the K11 Art Mall in Shanghai. In April, the Company partnered with Xiaohongshu's IP "Home Life Design
Competition" to co-create the "Exploring Kitchen Aesthetics". At the same time, the Company once again joined
forces with "The Treasured Voice 5" to present a crossover event that blends music and kitchen experiences, pushing
the boundaries of traditional kitchen concepts. At the "Return to the Future" brand launch event held in June, the
Company unveiled China's first AI cooking model, "God of Cookery", and introduced a new brand value —"Enjoy
Creation". The brand and retail store images were comprehensively updated. Additionally, the brand department
collaborated with the Eidos Humanities Society to host an event, where renowned scholars discussed the relationships
between users and society, technology and civilization, contributing to the preservation and advancement of cooking
culture.
In the era where the kitchen appliance industry witnesses more fierce competitions in the existing market, the
Company will continue to commit to its cooking beliefs, and uphold a dual-engine approach, driving business model
transformation through both digital kitchen appliances and user operations. The Company will persist in optimizing
its dual-brand operation model with Robam and MingQi.
In the first half of 2024, the Company introduced the AI-powered cooking model "God of Cookery" in the realm
of digital kitchen appliances. This innovation not only advances the hardware iteration but also strengthens the
underlying software support, exploring the cutting-edge application of AI technology in the cooking field, and
providing users with tailor-made cooking solutions. Unlike traditional kitchen appliances that serve merely as
hardware tools, "God of Cookery" functions as an intelligent partner capable of understanding users' needs, emotions,
and habits. It integrates smart planning across kitchen appliances based on users' roles, identities, emotions, actions,
health conditions, and dietary preferences, delivering a comprehensive solution from ingredient selection to cooking
processes, and achieving a personalized cooking experience for each individual. This represents a fusion of
"technology + culture" by Robam Appliances and marks another milestone in the pursuit of developing new
productive forces, following the creation of the industry's first "unmanned factory" and the launch of the first "digital
kitchen appliances" set.
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In the first half of 2024, in terms of user operations, the Company continued to build a systematic user full-
process data asset and experience feedback system to support the transformation of the Company's operations from
channel-oriented to user-centric. The Company has successfully established a Customer Data Platform (CDP),
creating a comprehensive system for user lifecycle data and a robust feedback mechanism. This platform allows for
broader capture of user behavior, which is integrated into our analytical framework. Additionally, the Company is
expanding user touchpoints through diversified channels such as the ROKI app, WeChat mini-programs, and WeCom
community, focusing on cooking as a core interest to attract and engage users, thus building a private community that
stimulates user engagement, interaction, and creativity. The Company is also advancing the Robam Appliances Net
Promoter Score (NPS) evaluation framework as a key component of future operational metrics, which will help
accurately measure and enhance reputation from users, thereby developing a more comprehensive and effective user
feedback and summary system.
In the first half of 2024, the MingQi brand was revitalized with a new focus on "New Pragmatic Kitchen
Appliances". Targeting the mid-end market, the brand adheres to three core standards: "Excellent Performance,"
"Practical Functions," and "Durable Quality." The new product forms are designed to effectively cater to the needs of
a wider audience, addressing the demand for high-quality, cost-effective, stable, and long-lasting products for
pragmatic consumers. De Dietrich brand continued to receive orders from the developer channel and had already
established a presence in the luxury house decoration market.
In the first half of 2024, the Company continued to gain recognition from the capital market in terms of
corporate governance, information disclosure and shareholder returns. It has been rated as A level (excellent) in the
information disclosure assessment on listed companies by the Shenzhen Stock Exchange for ten consecutive years.
Meanwhile, based on improvement and excellent performance in corporate governance and employee welfare
programs, the Company is rated as BBB level in terms of MSCI ESG ratings. The Company has established a long-
term incentive mechanism and launched the 2024 Stock Option Incentive Plan in the first half of the year. In response
to the long-term support of investors, the Company has introduced the Three-Year Shareholder Return Plan (2024-
2026), which guarantees a special annual dividend to provide investors with stable and substantial returns. 2024
marks a pivotal year in the Company's new three-year strategy. The Company will continue to focus on cooking as its
core, constantly aligning with user needs to enhance both the software and hardware capabilities of its products. The
aim is to convey the technological value and humanistic care of the products, offering consumers a diverse cooking
experience. By navigating through economic cycles, the Company strives to achieve long-term, stable, and high-
quality growth.
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II. Analysis of Core Competitiveness
There is no significant change in the Company’s core competitiveness during the reporting period. The Company’s core
competitiveness is mainly reflected in its high-end brand positioning, R&D capability for continuous innovation, comprehensive
and efficient operation capability, as shown in the Annual Report 2023.
III. Analysis of Main Business
Overview
See the relevant content in the “I. Main Businesses during the Reporting Period”.
Year-on-year changes in key financial data
In RMB
The same period last
The reporting period YOY change Reason for change
year
Operating income 4,729,354,071.80 4,934,869,800.15 -4.16%
Operating costs 2,417,617,979.67 2,372,095,971.50 1.92%
Sale expenses 1,189,754,400.18 1,360,821,373.41 -12.57%
Administrative
214,267,083.09 203,425,816.25 5.33%
expenses
Financial expense -95,390,413.45 -68,958,985.09 Not Applicable
Income tax expense 137,595,570.63 151,830,927.51 -9.38%
R&D input 178,373,820.48 172,734,141.15 3.26%
The slowdown in
payment collection in
Net cash flow from the period was due to
414,005,591.39 959,732,853.23 -56.86%
operating activities the increase in the
settlement of matured
bank acceptance bills.
Net cash flow from
-346,629,453.74 63,023,246.17 Not Applicable
investment activities
Due to the two
dividend distributions
Net cash flow from in the period: the 2023
-928,670,536.81 -443,777,479.65 Not Applicable
financing activities annual dividend and
the 2023 special
dividend.
Net increase in cash
-861,277,057.45 581,455,567.34 Not Applicable
and cash equivalents
Major changes on profit composition or profit resources in reporting period
□Applicable Not applicable
No major changes on profit composition or profit resources occurred in reporting period
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Composition of operating income
In RMB
The reporting period The same period last year
% of operating % of operating YOY change
Amount Amount
income income
Total operating
4,729,354,071.80 100% 4,934,869,800.15 100% -4.16%
income
By industry
Kitchen and bathroom
4,604,808,674.29 97.37% 4,793,316,106.76 97.13% -3.93%
appliances
Other businesses 124,545,397.51 2.63% 141,553,693.39 2.87% -12.02%
By product category
Category 1
Incl: Range hood 2,258,608,055.24 47.76% 2,324,953,220.91 47.11% -2.85%
Gas stove 1,169,304,461.08 24.72% 1,183,171,484.38 23.98% -1.17%
Disinfection
179,381,531.42 3.79% 208,586,939.17 4.23% -14.00%
cabinet
Category 2
Incl: All-purpose
282,119,593.77 5.97% 317,829,778.22 6.44% -11.24%
oven
Steam oven 27,610,887.93 0.58% 33,863,980.47 0.69% -18.47%
Baking oven 25,506,949.12 0.54% 33,333,913.56 0.68% -23.48%
Category 3
Incl: Dishwasher 318,347,953.95 6.73% 331,655,582.50 6.72% -4.01%
Water purifier 14,653,776.44 0.31% 19,178,086.59 0.39% -23.59%
Water heater 110,776,505.83 2.34% 96,459,546.77 1.95% 14.84%
Integrated stove 183,045,699.18 3.87% 204,932,714.33 4.15% -10.68%
Other small
35,453,260.33 0.76% 39,350,859.86 0.80% -9.90%
appliances
Other operating
124,545,397.51 2.63% 141,553,693.39 2.87% -12.02%
income
By region
East China-Main
2,240,767,978.16 47.38% 2,465,263,265.33 49.96% -9.11%
Products
East China-Others 124,470,315.80 2.63% 141,553,693.39 2.87% -12.07%
South China 524,496,954.45 11.09% 505,445,895.60 10.24% 3.77%
Central China 472,330,747.34 9.99% 414,023,176.19 8.39% 14.08%
North China 516,471,998.11 10.92% 519,977,554.25 10.54% -0.67%
Northeast China 238,293,211.47 5.04% 264,181,426.54 5.35% -9.80%
Northwest China 238,856,066.29 5.05% 268,067,121.49 5.43% -10.90%
Southwest China 344,973,086.06 7.29% 328,679,596.66 6.66% 4.96%
Overseas 28,693,714.12 0.61% 27,678,070.70 0.56% 3.67%
Industries, products and regions accounting for more than 10% of the Company’s operating income or profit
Applicable □Not applicable
In RMB
YoY
YoY change
Gross change in YoY change in
Operating income Operating costs in the gross
margin operating operating costs
margin
income
By industry
Kitchen and
4,604,808,674.29 2,381,821,304.07 48.28% -3.93% 3.33% -3.64%
bathroom appliances
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By product category
Range hoods 2,258,608,055.24 1,111,513,185.01 50.79% -2.85% 6.47% -4.31%
Gas stove 1,169,304,461.08 549,521,919.73 53.00% -1.17% 6.84% -3.52%
By region
East China-Main
2,240,767,978.16 1,125,601,403.28 49.77% -9.11% 0.34% -4.73%
Products
South China 524,496,954.45 283,031,848.91 46.04% 3.77% 8.14% -2.18%
North China 516,471,998.11 249,036,733.50 51.78% -0.67% 7.04% -3.47%
Main business data of the Company in the recent reporting period according to adjusted statistical caliber at the end of the
reporting period is applied in case that the statistical caliber of such data is adjusted during the reporting period
□Applicable Not applicable
IV. Analysis of Non-core Business
□Applicable Not applicable
V. Analysis of Assets and Liabilities
1. Significant changes in assets composition
In RMB
End of the reporting period End of last year Note on
Change in
% of total % of total significant
Amount Amount percentage
assets assets changes
Cash and cash
1,147,837,731.76 7.18% 1,985,050,745.11 11.83% -4.65%
equivalents
Accounts
1,863,130,927.89 11.66% 1,810,015,596.33 10.79% 0.87%
receivable
Inventory 1,399,070,238.66 8.75% 1,524,274,720.24 9.08% -0.33%
Investment real
87,514,098.16 0.55% 91,136,832.31 0.54% 0.01%
estate
Long-term
equity 4,978,936.31 0.03% 8,427,450.24 0.05% -0.02%
investment
Fixed assets 1,664,948,226.73 10.42% 1,720,724,257.46 10.25% 0.17%
Construction in
444,829,440.01 2.78% 359,768,699.68 2.14% 0.64%
process
Right-of-use
11,204,929.62 0.07% 13,802,458.98 0.08% -0.01%
assets
Short-term
115,003,320.70 0.72% 95,003,320.70 0.57% 0.15%
loans
Contract
777,554,890.02 4.86% 1,019,942,923.58 6.08% -1.22%
liabilities
Lease liabilities 10,343,459.83 0.06% 10,750,792.90 0.06% 0.00%
2. Major overseas assets
□Applicable Not applicable
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3.Assets and liabilities measured at fair value
□Applicable Not applicable
4.Restricted asset rights by the end of the reporting period
Item Ending book value Reasons for limit
Cash and cash
89,105,875.26 L/G margin
equivalents
Cash and cash
41,826,555.86 Bill acceptance margin
equivalents
Cash and cash
16,000.00 ETC security deposits
equivalents
Fixed assets 135,979,588.89 Mortgage loan
Intangible assets 31,222,615.70 Mortgage loan
Total 298,150,635.71 —
VI. Analysis of Investment
1. Overview
□Applicable Not applicable
2. Major equity investments obtained during the reporting period
□Applicable Not applicable
3. Major ongoing non-equity investments during the reporting period
□Applicable Not applicable
4.Financial asset investment
(1) Securities investment
□Applicable Not applicable
The Company had no securities investment during the reporting period.
(2) Derivative investment
□Applicable Not applicable
The Company had no derivatives investment during the reporting period.
5. Use of the raised funds
□Applicable Not applicable
The Company did not use the raised funds during the reporting period.
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VII. Sale of Major Assets and Equities
1. Sale of major assets
□Applicable Not applicable
The Company did not sell major assets during the reporting period.
2. Sale of major equities
□Applicable Not applicable
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VIII. Analysis of Main Holding and Joint-stock Companies
Applicable □Not applicable
Main subsidiaries and joint-stock companies affecting more than 10% of the Company’s net profit
In RMB
Comp
Company Main Registere Operating Operating
any Total assets Net assets Net profit
name business d capital income profit
type
Beijing Robam Sales of
Subsidi
Appliances Sales kitchen 5,000,000 70,521,280.46 33,404,842.29 107,209,197.15 -5,224,274.24 -4,865,036.40
ary
Co., Ltd. appliances
Shanghai Robam Sales of
Subsidi
Appliances Sales kitchen 5,000,000 84,299,627.57 -39,303,847.26 154,221,576.08 -10,186,526.30 -10,248,862.74
ary
Co., Ltd. appliances
Hangzhou Sales of
Subsidi
MingQi Electric kitchen 50,000,000 206,182,234.82 40,060,187.91 228,662,308.30 3,707,142.71 3,742,645.56
ary
Co., Ltd. appliances
Shengzhou
Kinde Intelligent Sales of
Subsidi
Kitchen kitchen 32,653,061 441,361,739.93 201,847,845.91 52,276,506.48 -17,024,719.34 -16,380,401.60
ary
Appliance Co., appliances
Ltd.
Hangzhou Jinhe
Sales of
Electric Subsidi
kitchen 10,000,000 145,878,350.96 24,129,921.90 138,025,762.14 2,574,042.61 1,563,020.69
Appliances Co., ary
appliances
Ltd.
Acquisition and disposal of subsidiaries during the reporting period
□Applicable Not applicable
IX. Structured Entities Controlled by the Company
□Applicable Not applicable
X. Risks and Responses
(1) Risk of fluctuations in the real estate market
The Company has been engaged in the kitchen appliances business for a long time, offering various kitchen appliances, such
as range hoods, gas stoves, dishwashers, combi-steam oven, disinfection cabinets, integrated stoves, etc. The demands for kitchen
appliances are closely related to the kitchen decoration, with certain "decoration" and "furniture" attributes. At present, the demand
for our main products is still closely related to the real estate market. The Company is able to resist the market fluctuations by
virtue of its market leadership, although fluctuations in the real estate market will still have an impact on the Company’s operating
performances.
(2) Risk of price fluctuation of raw materials
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The main raw materials of the Company’s equipment are stainless steel, cold-rolled sheet, copper and glass, etc., whose price
fluctuations will directly affect the cost of the Company’s products and in turn have an impact on its profitability.
(3) Risk of intensified market competition
In recent years, due to the tightening macro environment of the kitchen appliance industry, the continuous increase in
industry concentration, the comprehensive brands' increasing investment in the kitchen appliance market and the decline in people'
consumption willingness, the market competition in the kitchen appliances industry has become increasingly fierce, and the
intensification of market competition will have a certain impact on the Company’s operating performances.
XI. Implementation of the "Dual Improvement in Quality and Returns" Action Plan
Has the Company disclosed the announcement of the "Dual Improvement in Quality and Returns" action plan?
□ Yes No
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Chapter 4 Corporate Governance
I. Annual General Meeting of Shareholders and Extraordinary General Meeting of
Shareholders during the Reporting Period
1. Shareholders’ meeting during the reporting period
Proportio
Type of n of Date of Date of
Session of meeting Resolutions
meeting attending meeting disclosure
investors
The Announcement of
Resolutions of the 2023
Annual General
2023 Annual General Meeting Annual General Meeting of
Meeting of 64.28% May 16, 2024 May 17, 2024
of Shareholders Shareholders of Robam
Shareholders
Appliances (Announcement
No. 2024-031)
The Announcement of
Resolutions of the 2024
Extraordinary
The first extraordinary general First Extraordinary General
general
meeting of shareholders in 62.46% June 19, 2024 June 20, 2024 Meeting of Shareholders of
meeting of
2024 Robam Appliances
shareholders
(Announcement No. 2024-
045)
2. Preferred shareholders with voting rights recovered requested to convene an extraordinary general
meeting of shareholders
□Applicable Not applicable
II. Changes in Directors, Supervisors and Senior Management
□Applicable Not applicable
There was no change in directors, supervisors, and senior management of the Company during the reporting period. For details,
please refer to the Annual Report 2023.
III. Profit Distribution and Conversion of Capital Reserve into Capital Stock during the
Reporting Period
Applicable □Not applicable
Number of bonus shares per 10 shares (shares) 0
Dividend per 10 shares (RMB) (including tax) 5
The share capital base for the distribution plan (shares) 944,127,316
Cash dividend amount (RMB) (including tax) 472,063,658.00
Cash dividend amount by other means (e.g., share repurchase)
0.00
(RMB)
Total cash dividend amount (including other methods) (RMB) 472,063,658.00
Distributable profit (RMB) 9,349,860,281.22
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Proportion of total cash dividends (including other methods) to
100%
total profit distribution
Cash dividend distribution for this time
For businesses in the growth stage with significant capital expenditure plans, the cash dividend proportion in the current profit
distribution should be at least 20%
Detailed explanation of profit distribution and capital reserve conversion plan
As of June 30, 2024, the undistributed profits of the parent company amounted to RMB 9,349,860,281.22. According to the
resolution of the board of directors, the Company plans to implement mid-term dividend distribution to reward its shareholders.
The specific dividend distribution plan is as follows:
(1) The Company plans to distribute cash dividends of RMB 5 per 10 shares (including tax) to all shareholders, based on the total
share capital of 944,127,316 shares as of July 31, 2024. The total amount of dividends to be distributed is RMB 472,063,658.00.
(2) Purpose of mid-term dividend distribution: first, to meet the needs of the Company's long-term stable and healthy
development; second, to increase cash dividend distribution to boost market confidence, while ensuring that the Company's
normal operations and long-term development are not affected; third, to actively reward shareholders, share the Company's
development dividends with them, and enhance their sense of gain.
If the Company’s share capital changes due to reasons such as new shares being listed, stock option exercises, convertible bonds
being converted into shares, or share repurchases between the announcement of the distribution plan and the equity registration
date for the dividend distribution, adjustments will be made based on the principle of "maintaining the distribution ratio and
adjusting the total distribution amount accordingly".
IV. Implementation of the Equity Incentive Plan, Employee Stock Ownership Plan or other
Employee Incentives
Applicable □Not applicable
1. Equity incentive
2021 Stock Option Incentive Plan:
1.On April 14, 2021, the Company held the Fourth Meeting of the Fifth Session of the Board of Directors, during which the
Proposal on 2021 Stock Option Incentive Plan (Draft) of the Company and Its Summary and other related proposals were
deliberated and approved, and the independent directors expressed their independent opinions on and approved the matters related
to the Company’s stock option incentive plan. The Fourth Meeting of the Fifth Session of the Board of Supervisors of the
Company deliberated and approved the above-mentioned proposal and expressed its concurring opinion. The Company disclosed
the above matters on April 15, 2021.
2. From April 15, 2021 to April 24, 2021, the Company internally disclosed the names and titles of the incentive targets of the
stock option incentive plan. On April 27, 2021, the Company’s Board of Supervisors published the Review Opinions of the Board
of Supervisors on the List of Incentive Targets of the Stock Option Incentive Plan in 2021 and Explanation on the Publicity. On
the same day, the Company disclosed the Self-inspection Report on the Purchase and Sale of the Company’s Shares by Insiders
and Incentive Targets of the Stock Option Incentive Plan in 2021.
3. On April 30, 2021, the Company held its first extraordinary general meeting of shareholders, where it reviewed and approved
the Proposal on the Company’s 2021 Stock Option Incentive Plan (Draft) and Its Summary, among other related proposals. This
plan was approved at the Company’s first extraordinary general meeting of shareholders in 2021, and the board of directors was
authorized to determine the grant date for stock options. The board is also responsible for granting stock options to eligible
incentive recipients and handling all matters necessary for granting these stock options.
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4. On May 10, 2021, the Sixth Meeting of the Fifth Session of the Board of Directors and the Sixth Meeting of the Fifth Session of
the Board of Supervisors of the Company deliberated and approved the Proposal on the Granting Stock Options to Incentive
Targets. The Board of Supervisors verified the list of incentive targets again and expressed its agreement, and the independent
directors of the Company expressed their independent opinion on it.
5. The Company held the 10th meeting of the 5th Board of Directors and the 10th meeting of the 5th Board of Supervisors on
April 19, 2022, deliberating and adopting the Proposal on the Cancellation of Part of the Stock Options under the 2021 Stock
Option Incentive Plan and the Proposal on the Cancellation of Stock Options for Failure to Meet the Exercise Conditions during
the First Exercise Period of the 2021 Stock Option Incentive Plan and other proposals. The Board of Supervisors verified it and
expressed its agreement, and the independent directors of the Company expressed their independent opinion on it.
6. On April 26, 2022, after being reviewed and confirmed by the Shenzhen Branch of China Securities Depository and Clearing
Corporation Limited, the cancellation of the aforementioned 1,264,000 stock options has been completed. The Company cancelled
a total of 1,264,000 stock options, accounting for 0.13% of the Company's current total capital stock. This cancellation of stock
options complies with relevant laws and regulations, the Articles of Association of Hangzhou Robam Appliances Co., Ltd., and
the provisions of the Incentive Plan (Draft), etc. The stock options cancelled this time have not been exercised, and the
cancellation will not have any impact on the Company's capital stock. The capital structure has not changed.
7. The Company held the 14th meeting of the 5th Board of Directors and the 14th meeting of the 5th Board of Supervisors on
April 25, 2023, deliberating and adopting the Proposal on the Cancellation of Part of the Stock Options under the 2021 Stock
Option Incentive Plan and the Proposal on the Cancellation of Stock Options for Failure to Meet the Exercise Conditions during
the Second Exercise Period of the 2021 Stock Option Incentive Plan and other proposals. The Board of Supervisors verified it and
expressed its agreement, and the independent directors of the Company expressed their independent opinion on it.
8. On May 9, 2023, after being reviewed and confirmed by the Shenzhen Branch of China Securities Depository and Clearing
Corporation Limited, the cancellation of the aforementioned 945,000 stock options has been completed. The Company cancelled a
total of 945,000 stock options, accounting for 0.10% of the Company's current total capital stock. This cancellation of stock
options complies with relevant laws and regulations, the Articles of Association of Hangzhou Robam Appliances Co., Ltd., and
the provisions of the Incentive Plan (Draft), etc. The stock options cancelled this time have not been exercised, and the
cancellation will not have any impact on the Company's capital stock. The capital structure has not changed.
9. The Company held the 5th meeting of the 6th Board of Directors and the 5th meeting of the 6th Board of Supervisors on April
24, 2024, deliberating and adopting the Proposal on the Cancellation of Part of the Stock Options under the 2021 Stock Option
Incentive Plan and the Proposal on the Cancellation of Stock Options for Failure to Meet the Exercise Conditions during the Third
Exercise Period of the 2021 Stock Option Incentive Plan and other proposals. The board of supervisors has verified this and
expressed its concurring opinion.
10. On May 23, 2024, after being reviewed and confirmed by the Shenzhen Branch of China Securities Depository and Clearing
Corporation Limited, the cancellation of the aforementioned 831,000 stock options has been completed. The Company cancelled a
total of 831,000 stock options, accounting for 0.09% of the Company's current total capital stock. This cancellation of stock
options complies with relevant laws and regulations, the Articles of Association of Hangzhou Robam Appliances Co., Ltd., and
the provisions of the Incentive Plan (Draft), etc. The stock options cancelled this time have not been exercised, and the
cancellation will not have any impact on the Company's capital stock. The capital structure has not changed.
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2022 Stock Option Incentive Plan:
1. On March 31, 2022, the Company held the 9th Meeting of the 5th Board of Directors, during which the Proposal on 2022 Stock
Option Incentive Plan (Draft) of the Company and Its Summary and other related proposals were deliberated and approved, and
the independent directors expressed their independent opinions on and approved the matters related to the Company's stock option
incentive plan. The 9th Meeting of the 5th Board of Supervisors of the Company deliberated and approved the above-mentioned
proposal and expressed its concurring opinion. The Company disclosed the above matters on April 01, 2022.
2. From April 1, 2022 to April 10, 2022, the Company internally disclosed the names and titles of the incentive targets of the stock
option incentive plan. On April 13, 2022, the Company’s Board of Supervisors published the Review Opinions of the Board of
Supervisors on the List of Incentive Targets of the Stock Option Incentive Plan in 2022 and Explanation on the Publicity. On the
same day, the Company disclosed the Self-inspection Report on the Purchase and Sale of the Company’s Shares by Insiders and
Incentive Targets of the Stock Option Incentive Plan in 2022.
3. On April 21, 2022, the Company held its first extraordinary general meeting of shareholders, where it reviewed and approved
the Proposal on the Company’s 2022 Stock Option Incentive Plan (Draft) and Its Summary, among other related proposals. This
plan was approved at the Company’s first extraordinary general meeting of shareholders in 2022, and the board of directors was
authorized to determine the grant date for stock options. The board is also responsible for granting stock options to eligible
incentive recipients and handling all matters necessary for granting these stock options.
4. On May 10, 2022, the 11th meeting of the 5th Board of Directors and the 11th meeting of the 5th Board of Supervisors of the
Company deliberated and approved the Proposal on the Granting Stock Options to Incentive Targets. The Board of Supervisors
verified the list of incentive targets again and expressed its agreement, and the independent directors of the Company expressed
their independent opinion on it.
5. The Company held the 14th meeting of the 5th Board of Directors and the 14th meeting of the 5th Board of Supervisors on
April 25, 2023, deliberating and adopting the Proposal on the Cancellation of Part of the Stock Options under the 2022 Stock
Option Incentive Plan and the Proposal on the Cancellation of Stock Options for Failure to Meet the Exercise Conditions during
the First Exercise Period of the 2022 Stock Option Incentive Plan and other proposals. The Board of Supervisors verified it and
expressed its agreement, and the independent directors of the Company expressed their independent opinion on it.
6. On May 9, 2023, after being reviewed and confirmed by the Shenzhen Branch of China Securities Depository and Clearing
Corporation Limited, the cancellation of the aforementioned 1,609,000 stock options has been completed. The Company cancelled
a total of 1,609,000 stock options, accounting for 0.17% of the Company's current total capital stock. This cancellation of stock
options complies with relevant laws and regulations, the Articles of Association of Hangzhou Robam Appliances Co., Ltd., and
the provisions of the Incentive Plan (Draft), etc. The stock options cancelled this time have not been exercised, and the
cancellation will not have any impact on the Company's capital stock. The capital structure has not changed.
7. The Company held the 5th meeting of the 6th Board of Directors and the 5th meeting of the 6th Board of Supervisors on April
24, 2024, deliberating and adopting the Proposal on the Cancellation of Part of the Stock Options under the 2022 Stock Option
Incentive Plan and the Proposal on the Cancellation of Stock Options for Failure to Meet the Exercise Conditions during the
Second Exercise Period of the 2022 Stock Option Incentive Plan and other proposals. The board of supervisors has verified this
and expressed its concurring opinion.
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8. On May 23, 2024, after being reviewed and confirmed by the Shenzhen Branch of China Securities Depository and Clearing
Corporation Limited, the cancellation of the aforementioned 1,451,000 stock options has been completed. The Company cancelled
a total of 1,451,000 stock options, accounting for 0.15% of the Company's current total capital stock. This cancellation of stock
options complies with relevant laws and regulations, the Articles of Association of Hangzhou Robam Appliances Co., Ltd., and
the provisions of the Incentive Plan (Draft), etc. The stock options cancelled this time have not been exercised, and the
cancellation will not have any impact on the Company's capital stock. The capital structure has not changed.
2023 Stock Option Incentive Plan:
1.On April 25, 2023, the Company held the 14th Meeting of the 5th Board of Directors, during which the Proposal on 2023 Stock
Option Incentive Plan (Draft) of the Company and Its Summary and other related proposals were deliberated and approved, and
the independent directors expressed their independent opinions on and approved the matters related to the Company’s stock option
incentive plan. The 14th meeting of the 5th Board of Supervisors of the Company deliberated and adopted the above-mentioned
proposals and expressed its concurring opinion. The Company disclosed the above matters on April 26, 2023.
2. From April 26, 2023 to May 8, 2023, the Company internally disclosed the names and titles of the incentive targets of the stock
option incentive plan. On May 9, 2023, the Company’s Board of Supervisors published the Review Opinions of the Board of
Supervisors on the List of Incentive Targets of the Stock Option Incentive Plan in 2023 and Explanation on the Publicity. On the
same day, the Company disclosed the Self-inspection Report on the Purchase and Sale of the Company’s Shares by Insiders and
Incentive Targets of the Stock Option Incentive Plan in 2023.
3. On May 18, 2023, the Company held its annual general meeting of shareholders for 2022, where it reviewed and approved the
Proposal on the Company’s 2023 Stock Option Incentive Plan (Draft) and Its Summary, among other related proposals. This plan
was approved at the Company’s annual general meeting of shareholders in 2022, and the board of directors was authorized to
determine the grant date for stock options. The board is also responsible for granting stock options to eligible incentive recipients
and handling all matters necessary for granting these stock options.
4. On June 20, 2023, the 15th meeting of the 5th Board of Directors and the 15th meeting of the 5th Board of Supervisors of the
Company deliberated and approved the Proposal on the Granting Stock Options to Incentive Targets. The Board of Supervisors
verified the list of incentive targets again and expressed its agreement, and the independent directors of the Company expressed
their independent opinion on it.
5. On April 25, 2024, the Company held the 5th meeting of the 6th board of directors and the 5th meeting of the 6th board of
supervisors, and approved the Proposal on the Cancellation of Part of the Stock Options under the 2023 Stock Option Incentive
Plan and other proposals. The board of supervisors has verified this and expressed its concurring opinion.
6. On May 23, 2024, after being reviewed and confirmed by the Shenzhen Branch of China Securities Depository and Clearing
Corporation Limited, the cancellation of the aforementioned 908,800 stock options has been completed. The Company cancelled a
total of 908,800 stock options, accounting for 0.10% of the Company's current total capital stock. This cancellation of stock
options complies with relevant laws and regulations, the Articles of Association of Hangzhou Robam Appliances Co., Ltd., and
the provisions of the Incentive Plan (Draft), etc. The stock options cancelled this time have not been exercised, and the
cancellation will not have any impact on the Company's capital stock. The capital structure has not changed.
7. On June 20, 2024, the Company held the 8th meeting of the 6th board of directors and the 8th meeting of the 6th board of
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supervisors, and approved the Proposal on the Achievement of Exercise Conditions for the First Exercise Period of the 2023 Stock
Option Incentive Plan. The board of supervisors has verified this and expressed its concurring opinion.
2024 Stock Option Incentive Plan:
1. On April 24, 2024, the Company held the 5th Meeting of the 6th Board of Directors, during which the Proposal on 2024 Stock
Option Incentive Plan (Draft) of the Company and Its Summary and other related proposals were deliberated and approved, and
the independent directors expressed their independent opinions on and approved the matters related to the Company's stock option
incentive plan. The 5th Meeting of the 6th Board of Supervisors of the Company deliberated and approved the above-mentioned
proposal and expressed its concurring opinion. The Company disclosed the above matters on April 25, 2024.
2. From April 26, 2024 to May 6, 2024, the Company internally disclosed the names and titles of the incentive targets of the stock
option incentive plan. On May 08, 2024, the Company’s Board of Supervisors published the Review Opinions of the Board of
Supervisors on the List of Incentive Targets of the Stock Option Incentive Plan in 2024 and Explanation on the Publicity. On the
same day, the Company disclosed the Self-inspection Report on the Purchase and Sale of the Company’s Shares by Insiders and
Incentive Targets of the Stock Option Incentive Plan in 2024.
3. On May 16, 2024, the Company held its annual general meeting of shareholders for 2023, where it reviewed and approved the
Proposal on the Company’s 2024 Stock Option Incentive Plan (Draft) and Its Summary, among other related proposals. This plan
was approved at the Company’s annual general meeting of shareholders in 2023, and the board of directors was authorized to
determine the grant date for stock options. The board is also responsible for granting stock options to eligible incentive recipients
and handling all matters necessary for granting these stock options.
4. On May 20, 2024, the 6th meeting of the 6th Board of Directors and the 6th meeting of the 6th Board of Supervisors of the
Company approved the Proposal on Adjusting the List of Incentive Recipients and the Number of Grants for the 2024 Stock Option
Incentive Plan and the Proposal on Granting Stock Options to Incentive Recipients. The proposal has been approved by the
Remuneration and Assessment Committee of the 6th Board of Directors of the Company in the third review of 2024. The Board of
Supervisors also re-verified the list of incentive recipients and expressed its approval.
2. Implementation of the employee stock ownership plan
□Applicable Not applicable
3. Other employee incentive plans
Applicable □Not applicable
Phase I Partner Equity Ownership Plan
1. On April 14, 2021, the Company held the 4th Meeting of the 5th Session of the Board of Directors, during which the Proposal
on Partner Equity Ownership Plan (Draft) of the Company and Its Summary and other related proposals were deliberated and
approved, and the independent directors expressed their independent opinions on and approved the matters related to the
Company’s Partner Equity Ownership Plan. The Fourth Meeting of the Fifth Session of the Board of Supervisors of the Company
deliberated and approved the above-mentioned proposal and expressed its concurring opinion. The Company disclosed the above
matters on April 15, 2021.
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2. On April 30, 2021, the Company held its first extraordinary general meeting of shareholders for 2021, where it reviewed and
approved the Proposal on the Company's Partner Equity Ownership Plan (Draft) and Its Summary, among other related proposals.
This plan was approved at the Company’s first extraordinary general meeting of shareholders in 2021, authorizing the board of
directors to decide on or handle matters related to this plan.
3. On April 20, 2022, the Company disclosed the Announcement on the Failure to Meet the Assessment Conditions for the 2021
Partner Equity Ownership Plan. According to the relevant provisions of the ownership plan, the assessment conditions for the
2021 Partner Equity Ownership Plan were not met, and the Company will not allocate the special fund for the ownership plan for
that year.
4. On April 26, 2023, the Company disclosed the Announcement on the Failure to Meet the Assessment Conditions for the 2022
Partner Equity Ownership Plan. According to the relevant provisions of the ownership plan, the assessment conditions for the
2022 Partner Equity Ownership Plan were not met, and the Company will not allocate the special fund for the ownership plan for
that year.
5. On April 25, 2024, the Company disclosed the Announcement on the Failure to Meet the Assessment Conditions for the 2023
Partner Equity Ownership Plan. According to the relevant provisions of the ownership plan, the assessment conditions for the
2023 Partner Equity Ownership Plan were not met, and the Company will not allocate the special fund for the ownership plan for
that year.
Phase II Partner Equity Ownership Plan
On April 24, 2024, the Company held the 5th meeting of the 6th Board of Directors, where it reviewed and approved the Proposal
on the Company's Phase II Partner Equity Ownership Plan (Draft) and Its Summary, among other related proposals. The second
meeting of the Remuneration and Assessment Remuneration and Assessment Committee of the 6th board of directors reviewed
and approved the forementioned proposals. The 5th Meeting of the 6th Board of Supervisors of the Company deliberated and
approved the above-mentioned proposal and expressed its concurring opinion. The Company disclosed the above matters on April
25, 2024.
On May 16, 2024, the Company held its annual shareholder meeting for the year 2023 and approved the Proposal on the
Company's Phase II Partner Equity Ownership Plan (Draft) and Its Summary and other related proposals. This plan was approved
by the Company's annual shareholder meeting for the year 2023, authorizing the board of directors to decide on or handle matters
related to this plan.
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Chapter 5 Environmental and Social Responsibilities
I. Major Environmental Issues
Whether the listed company and its subsidiaries are the key pollution-discharging units announced by the environmental protection
authorities.
□ Yes No
Administrative penalties due to environmental issues during the reporting period.
Impact on the
The Company's
Name of company Reasons for production and
Violations Penalties rectification
or subsidiary penalties operation of the
measures
listed company
N/A N/A N/A N/A N/A N/A
Refer to other environmental information disclosed by key pollutant discharging units.
N/A
Measures taken to reduce carbon emissions during the reporting period and their effects
□Applicable Not applicable
Reasons for not disclosing other environmental information
N/A
II. Social Responsibility
The Company discloses its annual CSR Report or ESG Report, as detailed in the Robam Appliances 2023 Environmental, Social
and Corporate Governance (ESG) Report disclosed on www.cninfo.com.cn.
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Chapter 6 Significant Matters
I. Commitments made by the Company’s actual controllers, shareholders, affiliates,
purchasers and the Company itself and other relevant parties already fulfilled during the
reporting period and not yet fulfilled at the end of the reporting period
□Applicable Not applicable
I. There were no commitments made by the Company’s actual controllers, shareholders, affiliates, purchasers and the Company
itself and other relevant parties already fulfilled during the reporting period and not yet fulfilled at the end of the reporting period
II. Non-operating Occupation of Funds of the Listed Company by the Controlling
Shareholder and Other Affiliated Parties
□Applicable Not applicable
There was no non-operating occupation of funds of the listed company by the controlling shareholder and other affiliated parties
during the reporting period.
III. Illegal External Guarantee
□Applicable Not applicable
The Company had no illegal external guarantees during the reporting period.
IV. Appointment and Dismissal of Accounting Firm
Whether the semi-annual financial report has been audited
□ Yes No
The semi-annual financial report of the Company has not been audited.
V. Statements of the Board of Directors and the Board of Supervisors on the “Non-standard
Audit Report” Issued by the Accounting Firm for the Reporting Period
□Applicable Not applicable
VI. Statements of the Board of Directors on the “Non-standard Audit Report” for the Last
Year
□Applicable Not applicable
VII. Matters Related to Bankruptcy Reorganization
□Applicable Not applicable
The Company did not have any matters related to bankruptcy reorganization during the reporting period.
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VIII. Litigation Matters
Material litigation and arbitration
□Applicable Not applicable
The Company had no major litigation and arbitration during the reporting period.
Other litigation matters
□Applicable Not applicable
IX. Punishment and Rectification
□Applicable Not applicable
There was no punishment or rectification during the reporting period.
X. Integrity Conditions of the Company and its Controlling Shareholders
□Applicable Not applicable
XI. Major Connected Transactions
1. Connected transactions concerning daily operations
□Applicable Not applicable
The Company had no connected transactions concerning daily operations during the reporting period.
2. Connected transactions related to the acquisition or sales of assets or equity
□Applicable Not applicable
The Company had no connected transactions related to the acquisition or sales of assets or equity during the reporting period.
3. Connected transactions related to joint outward investment
□Applicable Not applicable
The Company had no connected transactions related to joint outward investment during the reporting period.
4. Connected transactions on credit and debt
□Applicable Not applicable
The Company had no connected transactions on credit and debt during the reporting period.
5.Transactions with connected finance companies
□Applicable Not applicable
There were no deposits, loans, credits or other financial operations between the Company and connected finance companies and
affiliates.
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6.Transactions between finance companies controlled by the Company and affiliates
□Applicable Not applicable
There were no deposits, loans, credits or other financial operations between finance companies controlled by the Company and
affiliates.
7. Other major connected transactions
□Applicable Not applicable
There were no other major connected transactions during the reporting period.
XII. Major Contracts and Their Performance
1. Entrustment, contracting and leasing
(1) Entrustment
□Applicable Not applicable
The Company had no entrustment during the reporting period.
(2) Contracting
□Applicable Not applicable
There was no contracting during the reporting period.
(3) Leasing
□Applicable Not applicable
There was no leasing during the reporting period.
2. Material guarantee
□Applicable Not applicable
The Company had no material guarantee during the reporting period.
3. Financial management entrusting
Applicable □Not applicable
Unit: RMB 10,000
Impairment
amount accrued of
Overdue
overdue but not
Specific type Fund source Amount incurred Undue balance amount not
recovered financial
recovered
management
products
Bank financial
Own funds 40,619.00 313,100.00 0 0
products
Total 40,619.00 313,100.00 0 0
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The specific situation of high-risk entrusted financial management with large single-item amount or low safety and poor liquidity
□Applicable Not applicable
Conditions where the capital of entrusted financial management cannot be recovered or may be impaired
□Applicable Not applicable
4. Other material contracts
□Applicable Not applicable
The Company had no other material contracts during the reporting period.
XIII. Explanation of Other Significant Matters
□Applicable Not applicable
The Company had no other significant matters that need to be explained during the reporting period.
XIV. Significant Matters of Subsidiaries of the Company
□Applicable Not applicable
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Chapter 7 Changes in Shares and Shareholders
I. Changes in Shares
1. Changes in shares
Unit: Share
Before change Change (+. -) After change
Bo
Shares
nu
Percen Issue converte
s Sub-tot Percent
Number tage of new d from Others Number
sh al age (%)
(%) shares capital
are
reserve
s
I. Shares subject to sales
12,261,847 1.29% -874,718 -874,718 11,387,129 1.20%
restrictions
1. Shares held by the
state
2. Shares held by the
state-owned legal persons
3. Shares held by other
12,261,847 1.29% -874,718 -874,718 11,387,129 1.20%
domestic investors
Including: shares held
by domestic legal persons
Including: shares held
by domestic natural 12,261,847 1.29% -874,718 -874,718 11,387,129 1.20%
persons
4. Shares held by
overseas investors
Including: shares held
by overseas legal persons
Shares held by
overseas natural persons
II. Shares without sales
936,762,203 98.71% 874,718 874,718 937,636,921 98.80%
restrictions
1. RMB ordinary shares 936,762,203 98.71% 874,718 874,718 937,636,921 98.80%
2. Domestically listed
foreign shares
3. Overseas listed
foreign shares
4. Others
100.00
III. Total shares 949,024,050 949,024,050 100.00%
%
Reason for share changes
□Applicable Not applicable
Approval of changes in shares
□Applicable Not applicable
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Transfer of ownership of changes in shares
□Applicable Not applicable
Progress in the implementation of shares repurchase
□Applicable Not applicable
Progress of transferring repurchased shares by means of centralized bidding
□Applicable Not applicable
The impact of changes in shareholding on the financial indicators such as basic earnings per share (EPS), diluted EPS, and net
assets per share attributable to common shareholders for the latest year and the latest period.
□Applicable Not applicable
Other information deemed necessary by the Company or required to be disclosed by securities regulatory authorities.
□Applicable Not applicable
2. Changes in shares subject to sales restrictions
Applicable □Not applicable
Unit: Share
Number of
Number of
Restricted
Initial Restricted Ending Date of
Name of Shares Reason for
Restricted Shares Added Restricted Restriction
shareholder Released Restriction
Shares During the Shares Release
During the
Current Period
Current Period
End of board of 6 Months After
Zhang
834,312 834,312 0 0 supervisors’ Term
Songnian
term departure Expiration
End of board of 6 Months After
Shen Yueming 40,406 40,406 0 0 supervisors’ Term
term departure Expiration
Total 874,718 874,718 0 0 -- --
II. Securities Issuance and Listing
□Applicable Not applicable
III. Number of Shareholders of the Company and Their Shareholdings
Unit: Share
Total number of preference shareholders
Total number of common
with voting rights recovered at the end
shareholders at the end of the 50,752 0
of the reporting period (if any) (see
reporting period
Note 8)
Shareholdings of common shareholders holding more than 5% of the Company’s shares or top 10 common shareholders (excluding
share lent through refinancing)
Number of Number Number of Pledged, marked or frozen
Change
Shareh common of shares shares shares
Name of Nature of during the
olding shares held subject to without
shareholder shareholder reporting
ratio at the end of sales sales Status Number
period
the restriction restrictions
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reporting s
period
Hangzhou Robam Domestic non-
Not
Industrial Group state-own ed 49.68% 471,510,000 471,510,000
Applicable
Co., Ltd. corporation
Hong Kong
Securities Overseas Not
9.37% 88,885,033 20,298,898 88,885,033
Clearing corporation Applicable
Company Limited
TEMASEK
FULLERTON Overseas Not
1.79% 16,950,061 -315,556 16,950,061
ALPHA PTE corporation Applicable
LTD
413 Portfolio of
Not
National Social Others 1.36% 12,902,204 787,004 12,902,204
Applicable
Security Fund
Domestic natural Not
Shen Guoying 1.29% 12,240,000 12,240,000
person Applicable
Schroder
Investment
Management
(Hong Kong)
Overseas Not
Limited - 0.86% 8,202,175 8,202,175 8,202,175
corporation Applicable
Schroder Global
Equity Fund
China A-Shares
(Exchange)
406 Portfolio of
Not
National Social Others 0.83% 7,829,500 7,829,500 7,829,500
Applicable
Security Fund
Hangzhou
Domestic non-
Jinchuang Not
state-own ed 0.70% 6,640,085 6,640,085
Investment Co., Applicable
corporation
Ltd.
Hangzhou
Domestic non-
Yinchuang Not
state-own ed 0.67% 6,318,000 6,318,000
Investment Co., Applicable
corporation
Ltd.
Domestic natural Not
Ren Jianhua 0.62% 5,923,150 4,442,362 1,480,788
person Applicable
Strategic investor or general legal
person who becomes one of the
N/A
top 10 common shareholders due
to rights issue (if any) (see Note 3)
Mr. Ren Jianhua is the actual controller of the controlling shareholder of the Company -
Description of the associated
Hangzhou Robam Industrial Group Co., Ltd., and the shareholder of the Company - Hangzhou
relationship or consistent actions
Jinchuang Investment Co., Ltd.; and the natural person shareholder, Shen Guoying, is his wife.
of the above shareholders
Therefore, there is a possibility that these shareholders will act in concert.
Statements of the above
shareholders on proxy/trustee
N/A
voting rights and abstention from
voting rights
Special note on the presence of
repurchase accounts among the
N/A
top 10 shareholders (if any) (see
Note 11)
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Shareholdings of the top 10 common shareholders not subject to sales restrictions (excluding shares lent through refinancing and
executive locked shares)
Type of share
Number of shares without sales restrictions held at the end of the
Name of shareholder Type of
reporting period Number
share
RMB
Hangzhou Robam Industrial Group
471,510,000 ordinary 471,510,000
Co., Ltd.
shares
RMB
Hong Kong Securities Clearing
88,885,033 ordinary 88,885,033
Company Limited
shares
RMB
TEMASEK FULLERTON ALPHA
16,950,061 ordinary 16,950,061
PTE LTD
shares
RMB
413 Portfolio of National Social
12,902,204 ordinary 12,902,204
Security Fund
shares
RMB
Shen Guoying 12,240,000 ordinary 12,240,000
shares
Schroder Investment Management
RMB
(Hong Kong) Limited - Schroder
8,202,175 ordinary 8,202,175
Global Equity Fund China A-Shares
shares
(Exchange)
RMB
406 Portfolio of National Social
7,829,500 ordinary 7,829,500
Security Fund
shares
RMB
Hangzhou Jinchuang Investment Co.,
6,640,085 ordinary 6,640,085
Ltd.
shares
RMB
Hangzhou Yinchuang Investment Co.,
6,318,000 ordinary 6,318,000
Ltd.
shares
RMB
Agricultural Bank of China Co., Ltd. -
5,793,600 ordinary 5,793,600
CSI 500 Exchange Traded Fund
shares
Description on associated
relationship or consistent actions
among the top 10 common Mr. Ren Jianhua is the actual controller of the controlling shareholder of the Company -
shareholders not subject to sales Hangzhou Robam Industrial Group Co., Ltd., and the shareholder of the Company - Hangzhou
restrictions and between the top 10 Jinchuang Investment Co., Ltd.; and the natural person shareholder, Shen Guoying, is his wife.
common shareholders not subject Therefore, there is a possibility that these shareholders will act in concert.
to sales restrictions and the top 10
common shareholders
Description on the top 10 common
shareholders engaging in securities
N/A
margin trading (if any) (see Note
4)
Shares lending through refinancing involving shareholders holding more than 5% of the shares, the top 10 shareholders, and the
top 10 shareholders of unrestricted circulating shares
□Applicable Not applicable
Compared to the previous period, the change is due to the top 10 shareholders and the top 10 unrestricted circulating shareholders
lending/returning shares for refinancing purposes.
□Applicable Not applicable
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Did any of the top 10 common shareholders and the top 10 common shareholders not subject to sales restrictions of the Company
have any agreed repurchase trading during the reporting period?
□ Yes No
There was no agreed repurchase trading between the top 10 common shareholders and the top 10 common shareholders not subject
to sales restrictions of the Company during the reporting period.
IV. Changes in Shares Held by Directors, Supervisors, and Senior Management
□Applicable Not applicable
There was no change in the shareholdings of directors, supervisors, and senior management of the Company during the reporting
period.
V. Changes in the Controlling Shareholder and the Actual Controller
Changes in the controlling shareholder during the reporting period
□Applicable Not applicable
There was no change in the controlling shareholder of the Company during the reporting period.
Changes in the actual controller during the reporting period
□Applicable Not applicable
There was no change in the actual controller of the Company during the reporting period.
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Chapter 8 Preferred Shares
□Applicable Not applicable
The Company had no preferred shares during the reporting period.
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Chapter 9 Bonds
□Applicable Not applicable
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Chapter 10 Financial Report
I. Audit Report
Whether the semi-annual report has been audited
□ Yes No
The semi-annual financial report of the Company has not been audited.
II. Financial Statements
The financial statement notes are represented in RMB.
1. Consolidated Balance Sheet
Prepared by: Hangzhou Robam Appliances Co., Ltd.
June 30, 2024
In RMB
Item Ending balance Beginning balance
Current assets:
Cash and cash equivalents 1,147,837,731.76 1,985,050,745.11
Deposit reservation for balance
Lendings to banks and other
Financial assets held for trading 2,551,000,029.50 2,730,000,000.00
Derivative financial assets
Notes receivable 368,798,633.67 696,284,931.64
Accounts receivable 1,863,130,927.89 1,810,015,596.33
Accounts receivable financing
Prepayments 185,682,213.92 139,713,471.58
Receivable premium
Reinsurance accounts receivable
Provision of cession receivable
Other receivables 86,770,440.47 53,368,667.34
Including: Interests receivable
Dividends receivable
Redemptory monetary capital for sale
Inventory 1,399,070,238.66 1,524,274,720.24
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 1,548,608,076.94 2,647,808,620.70
Total current assets 9,150,898,292.81 11,586,516,752.94
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Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term accounts receivable
Long-term equity investment 4,978,936.31 8,427,450.24
Investment in other equity instruments 2,116,023.22 2,116,023.22
Other non-current financial assets 580,000,000.00 480,000,000.00
Investment real estate 87,514,098.16 91,136,832.31
Fixed assets 1,664,948,226.73 1,720,724,257.46
Construction in process 444,829,440.01 359,768,699.68
Productive biological assets
Oil and gas assets
Right-of-use assets 11,204,929.62 13,802,458.98
Intangible assets 209,040,350.53 214,553,739.31
Including: Data resources
Development expenses
Including: Data resources
Goodwill 12,223,271.67 12,223,271.67
Long-term prepaid expenses 3,277,650.70 5,034,659.37
Deferred tax assets: 394,083,237.85 362,897,841.89
Other non-current assets 3,418,262,772.13 1,922,329,328.65
Total non-current assets 6,832,478,936.93 5,193,014,562.78
Total assets 15,983,377,229.74 16,779,531,315.72
Current liabilities:
Short-term loans 115,003,320.70 95,003,320.70
Borrowings from the central bank
Borrowings from banks and other
financial institutions
Borrowings from banks and other
financial institutions
Financial liabilities held for trading
Derivative financial liabilities
Notes payables 993,551,028.00 1,098,720,000.58
Accounts payable 2,384,005,428.78 2,548,743,762.06
Advance receipts
Contract liabilities 777,554,890.02 1,019,942,923.58
Financial assets sold for repurchase
Deposits from customers and
interbank
Receivings from vicariously traded
securities
Receivings from vicariously sold
securities
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Payroll payable 39,032,647.38 177,923,042.01
Taxes payable 205,803,940.00 154,365,676.80
Other payables 290,336,577.77 755,964,919.76
Including: Interests payable
Dividends payable 472,047,458.00
Fees and commissions payable
Dividends payable for reinsurance
Liabilities held for sale
Non-current liabilities due within one
2,163,637.20 4,522,658.42
year
Other current liabilities 94,072,365.82 118,041,351.23
Total current liabilities 4,901,523,835.67 5,973,227,655.14
Non-current liabilities:
Reserves for insurance contracts
Long-term loans
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 10,343,459.83 10,750,792.90
Long-term accounts payable
Long-term payroll payable
Estimated liabilities
Deferred income 125,499,549.27 136,538,254.74
Deferred income tax liabilities 29,831,173.39 28,418,565.01
Other non-current liabilities
Total non-current liabilities 165,674,182.49 175,707,612.65
Total liabilities 5,067,198,018.16 6,148,935,267.79
Owner’s equity
Capital stock 949,024,050.00 949,024,050.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 420,477,027.47 411,778,214.22
Less: treasury stock 199,995,742.59 199,995,742.59
Other comprehensive income -100,145,111.63 -100,157,634.16
Special reserve
Surplus reserve 474,516,412.50 474,516,412.50
General risk reserve
Undistributed profits 9,275,084,928.45 8,987,773,431.71
Total owners’ equity attributable to the
10,818,961,564.20 10,522,938,731.68
parent company
Minority interests 97,217,647.38 107,657,316.25
Total owners’ equity 10,916,179,211.58 10,630,596,047.93
Total liabilities and owner’s equity 15,983,377,229.74 16,779,531,315.72
Legal representative: Ren Jianhua Person in charge of accounting: Zhang Guofu Head of the accounting department: Zhang Guofu
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2. Balance Sheet of the Parent Company
In RMB
Item Ending balance Beginning balance
Current assets:
Cash and cash equivalents 933,698,210.45 1,810,087,936.08
Financial assets held for trading 2,550,000,000.00 2,730,000,000.00
Derivative financial assets
Notes receivable 348,583,175.36 662,718,295.18
Accounts receivable 1,879,406,959.27 1,755,848,590.56
Accounts receivable financing
Prepayments 154,637,824.61 127,173,134.27
Other receivables 78,302,506.11 46,761,052.06
Including: Interests receivable
Dividends receivable
Inventory 1,263,539,923.32 1,404,838,448.75
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 1,545,379,791.00 2,644,890,957.65
Total current assets 8,753,548,390.12 11,182,318,414.55
Non-current assets:
Debt investment
Other debt investments
Long-term accounts receivable
Long-term equity investment 269,939,495.45 255,471,029.63
Investment in other equity instruments 2,116,023.22 2,116,023.22
Other non-current financial assets 580,000,000.00 480,000,000.00
Investment real estate 7,497,512.14 8,735,897.94
Fixed assets 1,479,292,114.87 1,528,320,306.82
Construction in process 444,829,440.01 359,768,699.68
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 145,036,856.24 148,054,087.98
Including: Data resources
Development expenses
Including: Data resources
Goodwill
Long-term prepaid expenses 1,642,891.91 2,703,497.73
Deferred tax assets: 376,250,883.78 346,004,342.16
Other non-current assets 3,418,068,772.13 1,922,135,328.65
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Total non-current assets 6,724,673,989.75 5,053,309,213.81
Total assets 15,478,222,379.87 16,235,627,628.36
Current liabilities:
Short-term loans 14,503,320.70 14,003,320.70
Borrowings from banks and other
financial institutions
Financial liabilities held for trading
Derivative financial liabilities
Notes payables 942,426,745.42 1,042,067,981.92
Accounts payable 2,262,309,293.28 2,416,687,934.76
Advance receipts
Contract liabilities 688,622,509.14 947,538,425.82
Payroll payable 20,529,379.35 145,416,052.40
Taxes payable 196,275,701.17 140,518,721.35
Other payables 263,384,328.95 725,701,383.40
Including: Interests payable
Dividends payable 472,047,458.00
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities 82,538,001.71 107,860,993.92
Total current liabilities 4,470,589,279.72 5,539,794,814.27
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term accounts payable
Long-term payroll payable
Estimated liabilities
Deferred income 91,396,861.47 101,473,668.84
Deferred income tax liabilities 22,900,934.20 20,898,710.27
Other non-current liabilities
Total non-current liabilities 114,297,795.67 122,372,379.11
Total liabilities 4,584,887,075.39 5,662,167,193.38
Owner’s equity
Capital stock 949,024,050.00 949,024,050.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 420,087,937.51 411,389,124.26
Less: treasury stock 199,995,742.59 199,995,742.59
Other comprehensive income -100,157,634.16 -100,157,634.16
Special reserve
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Surplus reserve 474,516,412.50 474,516,412.50
Undistributed profits 9,349,860,281.22 9,038,684,224.97
Total owners’ equity 10,893,335,304.48 10,573,460,434.98
Total liabilities and owner’s equity 15,478,222,379.87 16,235,627,628.36
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3. Consolidated Income Statement
In RMB
Item Semi-annual 2024 The first half of 2023
I. Total operating income 4,729,354,071.80 4,934,869,800.15
Inc: Operating income 4,729,354,071.80 4,934,869,800.15
Interest income
Earned premium
Fee and commission income
II. Total operating costs 3,939,853,384.87 4,072,326,288.42
Inc: Operating costs 2,417,617,979.67 2,372,095,971.50
Interest expenses
Fee and commission expenses
Surrender value
Net payments for insurance
claims
Net allotment of reserves for
insurance liabilities
Policy dividend expenditures
Reinsurance expenses
Taxes and surcharges 35,230,514.90 32,207,971.20
Sale expenses 1,189,754,400.18 1,360,821,373.41
Administrative expenses 214,267,083.09 203,425,816.25
R&D expenses 178,373,820.48 172,734,141.15
Financial expense -95,390,413.45 -68,958,985.09
Inc: Interest expenses 1,294,179.47 2,707,272.10
Interest income 97,172,965.14 69,274,034.42
Add: other income 85,214,034.47 70,659,558.76
Investment income (“-” for
18,060,180.26 21,723,618.81
losses)
Inc: Income from investment
-3,448,513.93 -1,263,184.05
in joint ventures and affiliated enterprises
Gains on
derecognition of financial assets
measured at amortized cost
Exchange gains (“-” for losses)
Net exposure hedging gains (“-”
for losses)
Gains from changes in fair value
("-" for losses)
Losses from credit impairment
3,339,683.67 23,290,586.40
(“-” for losses)
Losses from asset impairment (“-
-6,645,269.34 -3,921,456.14
” for losses)
Gains on disposal of assets (“-”
-761,243.36 -576,718.41
for losses)
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III. Operating profits (“-” for losses) 888,708,072.63 973,719,101.15
Add: non-operating income 885,943.04 2,803,959.50
Less: non-operating expenditure 3,092,546.70 1,449,874.49
IV. Total profits (“-” for total losses) 886,501,468.97 975,073,186.16
Minus: income tax expense s 137,595,570.63 151,830,927.51
V. Net profits (“-” for net losses) 748,905,898.34 823,242,258.65
(I) By operational sustainability
1. Net profits from continuing
748,905,898.34 823,242,258.65
operations (“-” for net losses)
2. Net profits from discontinued
operations (“-” for net losses)
(II) By ownership
1. Net profit attributable to
shareholders of the parent company (“-” 759,358,954.74 829,718,350.69
for net losses)
2. Minority shareholders’ gains and
-10,453,056.40 -6,476,092.04
losses (“-” for net losses)
VI. After-tax net amount of other
25,910.06
comprehensive income
After-tax net amount of other
comprehensive income attributable to 12,522.53
owners of the parent company
(I) Other comprehensive income
that cannot be reclassified into gains and
losses
1. Changes in re-measured and
defined benefit plans
2. Other comprehensive income
which cannot be transferred to gains or
losses under the equity method
3. Changes in fair value of the
investment in other equity instruments
4. Changes in fair value of the
credit risk of the Company
5. Others
(II) Other comprehensive income
which will be reclassified into gains and 12,522.53
losses
1. Other comprehensive income
which can be transferred into gains and
losses under the equity method
2. Changes in fair value of other
debt investments
3. Amount of financial assets
reclassified into other comprehensive
income
4. Provision for credit impairment
of other debt investments
5. Cash flow hedge reserve
6. Converted difference in foreign
12,522.53
currency statements
7. Others
After-tax net amount of other
comprehensive income attributable to 13,387.53
minority shareholders
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VII. Total comprehensive income 748,931,808.40 823,242,258.65
Total comprehensive income
attributable to owners of the parent 759,371,477.27 829,718,350.69
company
Total comprehensive income
-10,439,668.87 -6,476,092.04
attributable to minority shareholders
VIII. Earnings per share (EPS):
(I) Basic EPS 0.80 0.87
(II) Diluted EPS 0.80 0.87
Legal representative: Ren Jianhua Person in charge of accounting: Zhang Guofu Head of the accounting department: Zhang Guofu
4. Income Statement of the Parent Company
In RMB
Item Semi-annual 2024 The first half of 2023
I. Operating income 4,369,901,782.29 4,490,148,776.21
Less: Operating costs 2,287,778,860.63 2,272,924,581.00
Taxes and surcharges 29,970,386.67 26,445,659.50
Sale expenses 986,325,349.96 1,071,915,930.73
Administrative expenses 160,556,379.13 139,991,185.53
R&D expenses 174,732,034.55 167,969,738.37
Financial expense -96,913,621.82 -69,761,406.60
Inc: Interest expenses -464,790.04 646,283.95
Interest income 96,441,907.69 67,688,700.69
Add: other income 81,216,465.62 61,866,650.16
Investment income (“-” for
18,230,432.05 21,795,614.09
losses)
Inc: Income from investment
-3,261,567.95 -1,019,723.65
in joint ventures and affiliated enterprises
Gains on derecognition
of financial assets measured at amortized
cost (“-” for losses)
Net exposure hedging gains (“-”
for losses)
Gains from changes in fair value
("-" for losses)
Losses from credit impairment
4,911,356.58 22,393,985.99
(“-” for losses)
Losses from asset impairment (“-
-6,645,269.34 -3,921,456.14
” for losses)
Gains on disposal of assets (“-”
-710,053.68 -607,881.96
for losses)
II. Operating profits (“-” for losses) 924,455,324.40 982,189,999.82
Add: non-operating income 813,935.67 2,738,086.37
Less: non-operating expenditure 2,850,861.57 1,067,871.65
III. Total profits (“-” for total losses) 922,418,398.50 983,860,214.54
Minus: income tax expense s 139,194,884.25 148,240,769.05
IV. Net profits (“-” for net losses) 783,223,514.25 835,619,445.49
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(I) Net profits from continuing
783,223,514.25 835,619,445.49
operations (“-” for net losses)
(II) Net profits from discontinued
operations (“-” for net losses)
V. After-tax net amount of other
comprehensive income
(I) Other comprehensive income
that cannot be reclassified into gains and
losses
1. Changes in re-measured and
defined benefit plans
2. Other comprehensive income
which cannot be transferred to gains or
losses under the equity method
3. Changes in fair value of the
investment in other equity instruments
4. Changes in fair value of the
credit risk of the Company
5. Others
(II) Other comprehensive income
which will be reclassified into gains and
losses
1. Other comprehensive income
which can be transferred into gains and
losses under the equity method
2. Changes in fair value of other
debt investments
3. Amount of financial assets
reclassified into other comprehensive
income
4. Provision for credit impairment
of other debt investments
5. Cash flow hedge reserve
6. Converted difference in foreign
currency statements
7. Others
VI. Total comprehensive income 783,223,514.25 835,619,445.49
VII. EPS:
(I) Basic EPS
(II) Diluted EPS
5. Consolidated Cash Flow Statement
In RMB
Item Semi-annual 2024 The first half of 2023
I. Cash flow from operating activities:
Cash received for the sale of goods
5,222,048,354.18 5,549,357,254.19
and rendering of services
Net increase in clients’ deposits and
deposits from banks and other financial
institutions
Net increase in borrowings from the
central bank
Net increase in borrowings from other
financial institutions
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Cash received from receiving
insurance premium of the original
insurance contract
Net cash from receiving reinsurance
premium
Net increase in deposits and
investment of insured persons
Cash received from interests, fees and
commissions
Net increase in borrowed funds
Net increase in repurchase business
funds
Net cash received from vicariously
traded securities
Refunds of taxes 18,261,517.10 9,479,183.31
Cash received relating to other
115,508,317.54 162,988,244.01
operating activities
Subtotal of cash inflow from operating
5,355,818,188.82 5,721,824,681.51
activities
Cash paid for purchased products and
2,672,099,590.55 2,509,505,444.23
received services
Net increase in loans and advances to
customers
Net increase in deposits with the
central bank and other financial
institutions
Cash paid for claims of original
insurance contract
Net increase in lending funds
Cash paid for interests, fees and
commissions
Cash paid for policy dividends
Cash paid to and on behalf of
581,145,832.14 531,293,363.95
employees
Cash paid for taxes 387,905,697.88 432,835,037.24
Cash paid related to other operating
1,300,661,476.86 1,288,457,982.86
activities
Subtotal of cash outflow from operating
4,941,812,597.43 4,762,091,828.28
activities
Net cash flow from operating activities 414,005,591.39 959,732,853.23
II. Cash flow from investing activities:
Cash received from return of
485,189,970.50 856,237,901.17
investments
Cash received from return on
21,509,695.82 23,031,053.03
investments
Net cash received from disposal of
fixed assets, intangible assets and other 439,702.31 156,960.00
long-term assets
Net cash received from disposal of
subsidiaries and other business entities
Cash received related to other
3,147,278,944.57
investment activities
Subtotal of cash inflow from investment
3,654,418,313.20 879,425,914.20
activities
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Cash paid for purchase and
construction of fixed assets, intangible 144,857,241.94 156,402,668.03
assets and other long-term assets
Cash paid to investments 406,190,525.00 660,000,000.00
Net increase in pledged loans
Net cash from subsidiaries and other
operating entities
Cash paid related to other investment
3,450,000,000.00
activities
Subtotal of cash outflow from investment
4,001,047,766.94 816,402,668.03
activities
Net cash flow from investment activities -346,629,453.74 63,023,246.17
III. Cash flow from financing activities:
Cash from acquiring investments
Including: Cash received by
subsidiaries from investments of
minority shareholders
Cash from acquiring debts 63,000,000.00 38,500,000.00
Other cashes received in relation to
500,000.00 6,482,178.88
financing activities
Subtotal of cash inflow from financing
63,500,000.00 44,982,178.88
activities
Cash repayments of debts 43,500,000.00 13,500,000,00
Cash paid for distribution of
945,472,097.73 472,047,458.00
dividends, profits or interest expenses
Including: Dividends and profits paid
by the subsidiaries to minority
shareholders
Other cashes paid in relation to
3,198,439.08 3,212,200.53
financing activities
Subtotal of cash outflow from financing
992,170,536.81 488,759,658.53
activities
Net cash flow from financing activities -928,670,536.81 -443,777,479.65
IV. Effect of change in exchange rate on
17,341.71 2,476,947.59
cash and cash equivalents
V. Net increase in cash and cash
-861,277,057.45 581,455,567.34
equivalents
Plus: Beginning balance of cash and
1,878,166,358.09 5,196,414,341.74
cash equivalents
VI. Ending balance of cash and cash
1,016,889,300.64 5,777,869,909.08
equivalents
6. Cash Flow Statement of the Parent Company
In RMB
Item Semi-annual 2024 The first half of 2023
I. Cash flow from operating activities:
Cash received for the sale of goods
4,731,776,324.89 5,061,947,996.39
and rendering of services
Refunds of taxes 18,242,540.73 9,453,997.74
Cash received relating to other
81,546,549.08 127,408,820.55
operating activities
Subtotal of cash inflow from operating
4,831,565,414.70 5,198,810,814.68
activities
Cash paid for purchased products and 2,526,136,695.74 2,388,027,327.89
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received services
Cash paid to and on behalf of
450,240,546.01 388,171,541.48
employees
Cash paid for taxes 354,648,101.70 376,468,624.51
Cash paid related to other operating
1,078,695,569.23 1,093,033,326.17
activities
Subtotal of cash outflow from operating
4,409,720,912.68 4,245,700,820.05
activities
Net cash flow from operating activities 421,844,502.02 953,109,994.63
II. Cash flow from investing activities:
Cash received from return of
480,000,000.00 850,000,000.00
investments
Cash received from return on
21,492,000.00 33,049,300.00
investments
Net cash received from disposal of
fixed assets, intangible assets and other 27,800.00 117,000.00
long-term assets
Net cash received from disposal of
subsidiaries and other business entities
Cash received related to other
3,147,278,944.57
investment activities
Subtotal of cash inflow from investment
3,648,798,744.57 883,166,300.00
activities
Cash paid for purchase and
construction of fixed assets, intangible 141,568,948.02 133,509,231.58
assets and other long-term assets
Cash paid to investments 417,414,675.00 660,000,000.00
Net cash from subsidiaries and other
operating entities
Cash paid related to other investment
3,450,000,000.00
activities
Subtotal of cash outflow from investment
4,008,983,623.02 793,509,231.58
activities
Net cash flow from investment activities -360,184,878.45 89,657,068.42
III. Cash flow from financing activities:
Cash from acquiring investments
Cash from acquiring debts
Other cashes received in relation to
500,000.00 6,482,178.88
financing activities
Subtotal of cash inflow from financing
500,000.00 6,482,178.88
activities
Cash repayments of debts
Cash paid for distribution of
944,094,916.00 472,047,458.00
dividends, profits or interest expenses
Other cashes paid in relation to
financing activities
Subtotal of cash outflow from financing
944,094,916.00 472,047,458.00
activities
Net cash flow from financing activities -943,594,916.00 -465,565,279.12
IV. Effect of change in exchange rate on
16,826.80 2,476,788.62
cash and cash equivalents
V. Net increase in cash and cash
-881,918,465.63 579,678,572.55
equivalents
Plus: Beginning balance of cash and
1,727,017,513.09 4,978,704,981.15
cash equivalents
VI. Ending balance of cash and cash
845,099,047.46 5,558,383,553.70
equivalents
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7. Consolidated Statement of Changes in Owners’ Equity
Current amount
In RMB
Semi-annual 2024
Owners’ equity attributable to the parent company
Other equity S
instruments p
e G
c en
Pr i er O
Pe
Item ef O a al t
Other Minority Total owners’
rpe
er t Less: treasury l ris h interests
Capital stock Capital reserve comprehensive Surplus reserve Undistributed profits Sub-total equity
tua
re h stock r k e
l income
d e e re r
bo
sh r s se s
nd
ar s e rv
s
es r e
v
e
I. Ending balance of 10,630,596,04
949,024,050.00 411,778,214.22 199,995,742.59 -100,157,634.16 474,516,412.50 8,987,773,431.71 10,522,938,731.68 107,657,316.25
last year 7.93
Plus: Changes
in accounting
policies
Correction
of errors of the
previous period
Others
II. Beginning 10,630,596,04
949,024,050.00 411,778,214.22 199,995,742.59 -100,157,634.16 474,516,412.50 8,987,773,431.71 10,522,938,731.68 107,657,316.25
balance of this year 7.93
III. Change in
285,583,163.6
current period ("-" 8,698,813.25 12,522.53 287,311,496.74 296,022,832.52 -10,439,668.87
5
for decrease)
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(I) Total
748,931,808.4
comprehensive 12,522.53 759,358,954.74 759,371,477.27 -10,439,668.87
0
income
(II) Capital invested
and decreased by the 8,698,813.25 8,698,813.25 8,698,813.25
owners
1. Com mon shares
invest ed by the
owner s
2. Capital invested
by holders of other
equity instruments
3. Amount of share-
based payments
8,698,813.25 8,698,813.25 8,698,813.25
recognized in owner
s’ equity
4. Others
-
(III) Profit
-472,047,458.00 -472,047,458.00 472,047,458.0
distribution
0
1. Withdrawal of
surplus reserve
2. Appropriation of
general risk reserve
3. Distribution to -
owner s (or -472,047,458.00 -472,047,458.00 472,047,458.0
shareholders ) 0
4. Others
(IV) Internal carry-
forward of owners’
equity
1. Capita l reserve
converted into
capital (or capital
stock)
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2024
2. Surplus reserve
converted into
capital (or capital
stock)
3. Surplus reserves
making up for losses
4. Changes of
defined benefit plans
carried forward to
retained earnings
5. Other
comprehensive
income carried
forward to retained
earnings
6. Others
(V) Special reserve
1. Withdrawn in
current period
2. Used in current
period
(VI) Others
IV. Ending balance 10,916,179,21
949,024,050.00 420,477,027.47 199,995,742.59 -100,145,111.63 474,516,412.50 9,275,084,928.45 10,818,961,564.20 97,217,647.38
of the current period 1.58
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Amount of last year
In RMB
The first half of 2023
Owners’ equity attributable to the parent company
Other equity S G
instruments p en
Pr e er O
Pe
Item ef O ci al t
Other Minority Total owners’
rpe
er t Less: treasury al ris h
Capital stock Capital reserve comprehensive Surplus reserve Undistributed profits Sub-total interests equity
tua
re h stock re k e
l income
d e s re r
bo
sh r er se s
nd
ar s v rv
s
es e e
I. Ending balance of 9,858,252,969.
949,024,050.00 409,997,665.58 199,995,742.59 -100,157,634.16 474,516,412.50 8,199,079,015.58 9,732,463,766.91 125,789,202.10
last year 01
Plus: Changes
in accounting
policies
Correction
of errors of the
previous period
Others
II. Beginning balance 9,858,252,969.
949,024,050.00 409,997,665.58 199,995,742.59 -100,157,634.16 474,516,412.50 8,199,079,015.58 9,732,463,766.91 125,789,202.10
of this year 01
III. Change in
354,668,442.2
current period ("-" 3,473,641.59 357,670,892.69 361,144,534.28 -6,476,092.04
4
for decrease)
(I) Total
823,242,258.6
comprehensive 829,718,350.69 829,718,350.69 -6,476,092.04
5
income
(II) Capital invested
and decreased by the 3,473,641.59 3,473,641.59 3,473,641.59
owners
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1. Com mon shares
invest ed by the
owners
2. Capital invested
by holders of other
equity instruments
3. Amount of share-
based payments
3,473,641.59 3,473,641.59 3,473,641.59
recognized in
owners’ equity
4. Others
-
(III) Profit
-472,047,458.00 -472,047,458.00 472,047,458.0
distribution
0
1. Withdrawal of
surplus reserve
2. Appropriation of
general risk reserve
3. Distribution to -
owners (or -472,047,458.00 -472,047,458.00 472,047,458.0
shareholders ) 0
4. Others
(IV) Internal carry-
forward of owners’
equity
1. Capital reserve
converted into
capital (or capital
stock)
2. Surplus reserve
converted into
capital (or capital
stock)
3. Surplus reserves
making up for losses
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2024
4. Changes of
defined benefit plans
carried forward to
retained earnings
5. Other
comprehensive
income carried
forward to retained
earnings
6. Others
(V) Special reserve
1. Withdrawn in
current period
2. Used in current
period
(VI) Others
IV. Ending balance 10,212,921,41
949,024,050.00 413,471,307.17 199,995,742.59 -100,157,634.16 474,516,412.50 8,556,749,908.27 10,093,608,301.19 119,313,110.06
of current period 1.25
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8. Statement of Changes in Owners’ Equity of the Parent Company
Current amount
In RMB
Semi-annual 2024
Other equity
instruments
Spec O
Pre Per Other
Item Less: treasury ial th
Capital stock ferr pet Ot Capital reserve comprehensive Surplus reserve Undistributed profits Total owners’ equity
stock reser er
ed ual her income
ve s
sha bon s
res ds
I. Ending balance of last year 949,024,050.00 411,389,124.26 199,995,742.59 -100,157,634.16 474,516,412.50 9,038,684,224.97 10,573,460,434.98
Plus: Changes in accounting policies
Correction of errors of the previous period
Others
II. Beginning balance of this year 949,024,050.00 411,389,124.26 199,995,742.59 -100,157,634.16 474,516,412.50 9,038,684,224.97 10,573,460,434.98
III. Change in current period ("-" for decrease) 8,698,813.25 311,176,056.25 319,874,869.50
(I) Total comprehensive income 783,223,514.25 783,223,514.25
(II) Capita l invest ed and decreased by the owner s 8,698,813.25 8,698,813.25
1. Com mon shares invest ed by the owner s
2. Capita l invest ed by holder s of other equity
instruments
3. Amount of share-based payments recognized in owner
8,698,813.25 8,698,813.25
s’ equity
4. Others
(III) Profit distribution -472,047,458.00 -472,047,458.00
1. Withdrawal of surplus reserve
2. Distribution to owners (or shareholders ) -472,047,458.00 -472,047,458.00
3． Others
(IV) Internal carry-forward of owners’ equity
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2024
1. Capital reserve converted into capital (or capital
stock)
2. Surplus reserve converted into capital (or capital
stock)
3. Surplus reserves making up for losses
4. Changes of defined benefit plans carried forward to
retained earnings
5. Other comprehensive income carried forward to
retained earnings
6. Others
(V) Special reserve
1. Withdrawn in current period
2. Used in current period
(VI) Others
IV. Ending balance of current period 949,024,050.00 420,087,937.51 199,995,742.59 -100,157,634.16 474,516,412.50 9,349,860,281.22 10,893,335,304.48
Amount of last year
In RMB
The first half of 2023
Other equity
instruments
Spec O
Pre Per Other
Item Less: treasury ial th
Capital stock ferr pet Ot Capital reserve comprehensive Surplus reserve Undistributed profits Total owners’ equity
stock reser er
ed ual he income
ve s
sha bon rs
res ds
I. Ending balance of last year 949,024,050.00 409,608,575.62 199,995,742.59 -100,157,634.16 474,516,412.50 8,156,489,150.49 9,689,484,811.86
Plus: Changes in accounting policies
Correction of errors of the previous period
Others
II. Beginning balance of this year 949,024,050.00 409,608,575.62 199,995,742.59 -100,157,634.16 474,516,412.50 8,156,489,150.49 9,689,484,811.86
III. Change in current period ("-" for decrease) 3,473,641.59 363,571,987.49 367,045,629.08
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(I) Total comprehensive income 835,619,445.49 835,619,445.49
(II) Capital invested and decreased by the owners 3,473,641.59 3,473,641.59
1. Common shares invested by the owners
2. Capital invested by holders of other equity
instruments
3. Amount of share-based payments recognized in
3,473,641.59 3,473,641.59
owners’ equity
4. Others
(III) Profit distribution -472,047,458.00 -472,047,458.00
1. Withdrawal of surplus reserve
2. Distribution to owners (or shareholders ) -472,047,458.00 -472,047,458.00
3. Others
(IV) Internal carry-forward of owners’ equity
1. Capital reserve converted into capital (or capital
stock)
2. Surplus reserve converted into capital (or capital
stock)
3. Surplus reserves making up for losses
4. Changes of defined benefit plans carried forward to
retained earnings
5. Other comprehensive income carried forward to
retained earnings
6. Others
(V) Special reserve
1. Withdrawn in current period
2. Used in current period
(VI) Others
IV. Ending balance of current period 949,024,050.00 413,082,217.21 199,995,742.59 -100,157,634.16 474,516,412.50 8,520,061,137.98 10,056,530,440.94
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III. Basic Information of the Company
Hangzhou Robam Appliances Co., Ltd. (hereinafter referred to as ROBAM or the Company) is an
incorporated company established by overall changing Hangzhou Robam Home Appliances Co., Ltd. on
November 7, 2000. Approved by China Securities Regulatory Commission (ZJXK [2010] No.1512) in
2010, the Company for the first time offered 40 million ordinary shares in RMB to the public on
November 23, 2010 (stock code: 002508), with the par value per share of RMB 1 and the issue price per
share of RMB 24.00.
As of June 30, 2024, the total capital stocks of the Company reached 949,024,050 shares, with a
registered capital of RMB 949,024,050. The Company’s unified social credit code is
91330000725252053F; the legal representative is Ren Jianhua; the registration address is No. 592, Linping
Avenue, Linping Economic Development Area, Linping District, Hangzhou; and the Headquarters office
address is No. 592, Linping Avenue, Linping Economic Development Area, Linping District, Hangzhou.
The RMB-denominated A-shares issued by the Company have been listed on the Shenzhen Stock
Exchange.
The main business scope is: general items: manufacturing of household appliances; 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 household appliances; installation services for
household appliances; research and development of household appliances; sales of household products;
sales of daily necessities; manufacturing of wooden daily products; retail of daily household appliances;
repair of daily electrical appliances; sales of electric heating food processing equipment; wholesale of daily
necessities; technical services, technical development, technical consulting, technical exchange,
technology transfer, technology promotion; sales of non-electric household appliances; manufacturing of
non-electric household 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 household consumption devices; sales of artificial
intelligence hardware; manufacturing of commercial, catering, and service-specific equipment; sales of
commercial, catering, and service-specific equipment; import and export of goods; manufacturing of
environmental protection-specific equipment; sales of environmental protection-specific equipment; sales
of metal products; sales of mechanical and electrical equipment; sales of electrical equipment; sales of
mechanical equipment; industrial engineering design services; professional design services; graphic design;
engineering management services; general equipment repair; furniture manufacturing; production of
furniture parts and accessories; sales of furniture parts and accessories; furniture sales; furniture
installation and repair services; manufacturing and processing of doors and windows; manufacture of
household goods; retail of kitchenware, sanitary ware, and daily necessities; wood processing; conference
and exhibition services; leisure and sightseeing activities; environmental protection monitoring;
manufacturing of special instruments and equipment for environmental monitoring; sales of special
instruments and equipment for environmental monitoring; software development; software sales; computer
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2024
system services; information system integration services (except for items that require approval according
to law, the Company is authorized to carry out business activities independently with the business license).
Permitted items: manufacturing of disinfection devices; manufacturing of electric heating food processing
equipment; installation and maintenance of gas appliances (items that require approval according to law
can only be operated after approval by relevant departments, and the specific business items shall be
subject to the approval results).
The Company is a manufacturing company, with major businesses covering research & development,
production, sales and comprehensive services of kitchen appliances. Its main products include range hoods,
gas stoves, disinfection cabinets, steam ovens, baking ovens, dishwashers, water purifiers, microwave
ovens, integrated stoves, and purification tanks.
The consolidated financial statements of the Company cover 13 subsidiaries, including Beijing
Robam Electric Appliance Sales Co., Ltd., Shanghai Robam Appliances Sales Co., Ltd., Hangzhou
MingQi Electric Co., Ltd., De Dietrich Household Appliances Trading (Shanghai) Co., Ltd., Shengzhou
Kinde Intelligent Kitchen Appliances Co., Ltd., Hangzhou Robam Fuchuang Investment Management Co.,
Ltd., Zhejiang Cookingfuture Technology Co., Ltd., Hangzhou Jinhe Electric Appliances Co., Ltd., Robam
Appliances Holding (HK) Co., Ltd. and Robam International (HK) Trading Co., Ltd., Chengdu Robam
Innovation Technology Co., Ltd., Robam Appliances U.S. Holding Co., Ltd., and Robam Appliances Los
Angeles Trade Co., Ltd. Compared to the previous year, a total of 3 subsidiaries including Chengdu
Robam Innovation Technology Co., Ltd., Robam Appliances U.S. Holding Co., Ltd., and Robam
Appliances Los Angeles Trade Co., Ltd. are newly established within the scope of consolidation of the
Company during the current period.
IV. Basis for Preparation of Financial Statements
1. Preparation basis
The Company's financial statements are prepared based on actual transactions and events, in
accordance with the Accounting Standards for Business Enterprises and its application guidelines,
interpretations, and other relevant regulations issued by the Ministry of Finance (hereinafter collectively
referred to as "Accounting Standards for Business Enterprises"), the disclosure requirements of the China
Securities Regulatory Commission (hereinafter "CSRC") under the Preparation Rules for Information
Disclosure by Companies Offering Securities to the Public No. 15—General Provisions on Financial
Reports (2023 Revision), and the accounting policies and estimates described in Note 4, "Significant
Accounting Policies and Accounting Estimates".
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2. Going concern
The Company has assessed its ability to continue as a going concern for the 12 months following June
30, 2024, and has not identified any significant doubts about its ability to continue operating. These
financial statements are prepared on a going concern basis.
V. Significant Accounting Policies and Estimates
Specific accounting policies and estimates:
The specific accounting policies and estimates prepared by the Company according to its actual
production and operation include the operating cycle, the recognition and measurement of receivables and
bad debts, measurement of inventory delivered, fixed assets classification as well as depreciation methods,
invisible asset amortization, conditions for the capitalization of R&D expenses, and revenue recognition
and measurement.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of the Accounting
Standards for Business Enterprises, and truthfully, accurately and completely reflect the financial status as
of June 30, 2024, as well as its business results, cash flow and other relevant information for the first half
of 2024.
2. Accounting period
The Company’s accounting period starts on January 1 and ends on December 31 on the Gregorian
calendar.
3. Operating cycle
The normal operating cycle of the Company shall be one year (12 months).
4. Bookkeeping base currency
The Company adopts RMB as the bookkeeping base currency.
5. Methods for determining significance standards and selection criteria
Applicable □Not applicable
Item Significance standards
Significant accounts receivable with individual bad debt
Individual amount exceeding RMB 10 million
provisions
Significant amount of bad debt provisions to be recovered or
Individual amount exceeding RMB 5 million
reversed for receivables during the reporting period
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Significant receivables write-offs/debt investment write-
Individual amount exceeding RMB 5 million
offs/other debt investment write-offs in the reporting period
Significant accounts payable with an aging over one year Individual amount exceeding RMB 5 million
Significant contract liabilities with an aging over one year Individual amount exceeding RMB 10 million
Significant other payables with an aging over one year Individual amount exceeding RMB 5 million
Increase, decrease, or ending balance of a single project
Significant projects under construction
exceeding RMB 20 million during the reporting period
Significant investment activities Individual investment amount exceeding RMB 50 million
Investments in a single company exceeding RMB 50 million;
Significant non-wholly owned subsidiaries/joint ventures and or income, net profit, net assets, or total assets of a single entity
important overseas entities included in the consolidation scope exceeding 5% of the relevant items in the consolidated
financial statements
6. Accounting approaches to business merger under or not under common control
The assets and liabilities acquired by the Company as the combining party in a business merger under
common control shall be measured at the book value of the combined party in the final controller’s
consolidated statements on the combination date. The capital reserve shall be adjusted against the
difference between the book value of the net assets acquired by the combining party and the book value of
the combination consideration paid by it. If the capital reserve is insufficient to offset the difference, the
retained earnings shall be adjusted.
The identifiable assets, liabilities and contingent liabilities acquired from the acquiree in a business
merger not under common control shall be measured at fair value on the acquisition date. The combination
cost is the sum of the fair values of cash or non-cash assets paid, liabilities issued or undertaken, equity
securities issued, among others, by the Company for the purpose of taking control over the acquiree on the
acquisition date and all directly related expenses incurred during the business merger (in case of business
merger accomplished through multiple transactions step by step, the combination cost is the sum of the
cost of every single transaction). If the combination cost is greater than the fair value share of the
acquiree’s identifiable net assets acquired from the acquiree in the combination, the case is recognized as
goodwill. Where the combination cost is less than the fair value share of the identifiable net assets acquired
from the acquiree, the fair values of the identifiable assets, debts and contingent liabilities acquired in the
combination and those of non-cash assets subject to combination consideration or issued equity securities
shall be rechecked first, and then in case the combination cost is less than the fair value shares of the
identifiable net assets acquired from the acquiree, the difference shall be included in the non-operating
income in the period of the combination.
7. Criteria for determining control and methods of preparing consolidated financial statements
All subsidiaries under the control of the Company are included into the consolidated financial
statements.
The scope of the consolidated financial statements of the Company is determined on the basis of
control, including the Company and all subsidiaries controlled by the Company. The criteria for
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determining control by the group is that the Company has the power over the investees, enjoys variable
returns by participating in the investees' relevant activities, and has the ability to influence the amount of
returns through its power over the investees.
The financial statements of subsidiaries are adjusted in accordance with the accounting policies and
accounting period of the Company when preparing the consolidated financial statements, where the
accounting policies and accounting periods are inconsistent between the Company and its subsidiaries.
All major internal transactions, inter-company balances, and unrealized profits within the scope of
consolidation shall be offset when preparing consolidated financial statements. The portion of owner’s
equity of subsidiaries not held by the parent company and net current profit & loss, other comprehensive
incomes and the portion of total comprehensive incomes belonging to minority equity are presented under
“minority equity, minority interest income, other comprehensive incomes belonging to minority
shareholders and total comprehensive incomes belonging to minority shareholders, respectively”.
For a subsidiary acquired from business mergers under the same control, its operating results and cash
flows are included into the consolidated financial statements since the beginning of the consolidation year.
When the comparable consolidated financial statements are being prepared, relevant items in the financial
statements of the last year are adjusted with the stated party formed after merging deemed to exist from the
time of the ultimate controlling party starting to control.
For a subsidiary acquired through business mergers not under the same control, its operating results
and cash flows shall be included into the consolidated financial statement since the date when the
Company obtains control. When preparing the consolidated financial statements, the subsidiary's financial
statements shall be adjusted on basis of the fair value of all identifiable assets, liabilities and contingent
liabilities ascertained on the purchasing date.
For equity interests in investees not under common control acquired by multiple transactions, which
finally result in a business merger, the previously held equity interests must be re-measured at fair value on
the acquisition date and the difference between the fair value and the carrying amount should be
recognized as investment gains for the reporting period when preparing the consolidated financial
statements. If the previously held equity includes other comprehensive income or changes in owners'
equity (other than net profit, loss, or profit distributions), these should be reclassified as investment gains
or losses on the acquisition date, except for other comprehensive income related to changes in net
liabilities or assets from re-measurement of the investee's defined benefit plans.
Without losing any control right, the Company has partially disposed the long-term equity investment
in the subsidiary. In the consolidated financial statement, according to the difference between the disposal
prices of part of the equity investment in the subsidiary and net assets of the subsidiary attributed to the
Company as a result of disposal of long-term equity investment continuously calculated from the purchase
date or consolidation date in the subsidiary, capital premium or stock premium is adjusted, where the
capital surplus is not sufficient to be offset, they are adjusted to the retained earnings.
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Where the Company loses the controlling right of the invested party for such reason as disposing
partial equity investment, the remaining equity is re-measured as per the fair value of such equity on the
day of losing controlling right when preparing the consolidated financial statements. The balance from the
sum of the consideration obtained upon the disposal of equity and the fair value of the remaining equity
less the appropriable share of the net asset of the former subsidiaries calculated as per the former
shareholding proportion from the purchase day or merging day is included in the investment income for
the period when the right of control is lost and the goodwill is deducted. Other comprehensive incomes
related to former equity investment in subsidiaries shall be recognized as current investment profits &
losses upon losing controls.
8. Classification of joint arrangement and accounting methods for joint operation
The joint arrangement of the Company includes the joint venture. A joint venture is a joint
arrangement in which the venturers have rights only to the net assets of the arrangement.
The Company, serving as one part of the joint venture, shall, in accordance with the provisions of the
Accounting Standards for Business Enterprises No. 2 – Long-term Equity Investments, conduct accounting
treatment of the investment of the joint venture.
9. Recognition standard of cash and cash equivalents
Cash presented in the Company’s cash flow statement refers to cash on hand and deposits that are
available for payment at any time. Cash equivalents presented in the cash flow statement refer to short-
term investments (no more than three months) with high liquidity and that are readily convertible to known
amounts of cash and subject to an insignificant risk of changes in value.
10. Foreign currency business and conversion of foreign currency statement
Foreign currency transactions
The Company translates the foreign-currency amount of the foreign-currency transactions into RMB
amount based on spot exchange rate applicable on the transaction date. On the balance sheet date, the
monetary items in foreign currencies shall be converted at the spot rate on the said balance sheet date. The
conversion differences arising therefrom, except the exchange balance arising from the foreign currency
borrowings special for acquisition or production of qualifying assets which shall be processed according to
the capitalization principle, shall be directly included in the current profit or loss. The foreign currency
non-monetary items measured at fair value shall be converted according to the spot rate of the date when
the fair value is confirmed. If the difference between the converted amount of bookkeeping base currency
and the original amount of bookkeeping base currency belongs to the foreign currency non-monetary item
available for sale of financial assets, such difference shall be included in the capital reserve. If such
difference belongs to the foreign currency non-monetary item which is measured at fair value and whose
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change is included into the current profits and losses, it shall be included into current profits and losses.
The foreign currency non-monetary items measured by historical cost shall be still translated according to
the spot rate on the transaction date, while RMB amount remains unchanged.
Translation of foreign currency financial statements
Assets and liabilities items in the balance sheets of the foreign operations are translated into RMB
using the spot exchange rate at the balance sheet date, while the shareholders’ equity items, except for the
"undistributed profit items", are translated into RMB using the spot exchange rate at the date of transaction.
The income and expense items in the income statements of overseas operations are translated at the
exchange rate approximate to the spot rate at the date of transaction. The difference arisen from the above
translation's are presented separately under other comprehensive income. For monetary items denominated
in foreign currencies that materially constitute overseas net investment in overseas operations, exchange
differences arising from changes in exchange rates, when preparing the consolidated financial statements,
are also separately presented under the Shareholders’ equity as foreign currency translation differences. In
case of disposal of an overseas operation, foreign currency translation differences relating to the overseas
operation are proportionately transferred to profits or losses of the period when the disposal was transacted.
During the disposal of overseas operation, other comprehensive incomes related to the overseas operation
are transferred in proportion into the disposal of current profits and losses.
The foreign currency cash flow and the cash flow of overseas subsidiaries shall be converted using
the exchange rate approximate to the spot rate of the transaction date of the cash flow. The effect of
exchange rate changes on cash is presented separately in the cash flow statement.
11. Financial instruments
The Company shall recognize a financial asset or a financial liability when it becomes a party to a
financial instrument contract.
Financial assets
Classification, recognition basis and measurement method of financial assets
Based on the business model for management of financial assets and the contractual cash flow
characteristics of financial assets, the Company classifies the financial assets into three types: 1) the
financial asset measured at amortized cost; 2) the financial asset measured at the fair value with its changes
included into other comprehensive incomes; and 3) and the financial asset measured at the fair value with
its changes included into current profits or losses.
The financial assets meeting all of the following conditions can be classified as those measured at
amortized cost by the Company: 1) the Company adopts the business management mode of financial assets
for the purpose of collecting contractual cash flow; 2) in accordance with the contract terms of the
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financial assets, the cash flow generated at the specific date is only the payment of the principal and the
interest on the basis of the outstanding principal amount. Such financial assets are initially measured at
their fair values, with related transaction costs included into the amount of initial recognition, and
subsequent measurement conducted with the amortized cost. Apart from those designated as hedged items,
the difference between the initial amount amortized with the effective interest method and the amount due,
profits or losses incurred upon amortization, impairment, exchange profits and losses and derecognition
shall be included into current profits and losses.
Where the following conditions are reached at the same time, the financial assets can be classified by
the Company as those measured at fair value with the changes included into other comprehensive income:
1) the Company adopts the business management mode of the financial assets for the purpose of collecting
contractual cash flow and selling the financial assets; 2) in accordance with the contract terms of the
financial assets, the cash flow generated at the specific date is only the payment of the principal and the
interest on the basis of the outstanding principal amount. Such financial assets are initially measured at
their fair values, with related transaction costs included into the amount of initial recognition. Apart from
those designated as the hedged items, profits or losses incurred by such financial assets shall be included
into the comprehensive incomes, except for credit impairment losses or gains, exchange profits and losses
and the interests calculated as per the actual interest rate for such financial assets. Upon derecognition of
the financial assets, the accumulated gains or losses previously recorded in other comprehensive incomes
shall be transferred out of such other comprehensive incomes and included into the current profits and
losses.
The interest income is recognized by the Company using the effective interest method. The interest
income is determined by multiplying the book balance of financial assets by the effective interest rate,
except for conditions below: 1) for the financial assets purchased by or originating from the Company with
credit impairment, since initial confirmation, the interest income shall be determined as per the amortized
cost of the financial asset and the effect interest rate subject to credit adjustment; 2) the financial assets
purchased by or originating from the Company with no credit impairment but having credit impairment
during the follow-up period shall be subject to interest income calculation based on the amortized cost and
actual interest rate of the financial assets during the follow-up period by the Company.
The non-trading equity instrument is designated by the Company as the financial asset which is
measured at its fair value with changes included into current profits and losses. The designation shall not
be canceled once it is made. The non-trading equity instrument investment, designed by the Company to
be measured at the fair value with their changes included into other comprehensive incomes, is initially
measured at fair value, with related transaction cost included into the amount of initial confirmation.
Except for the obtained dividends (excluding those of the recovered investment cost), which are included
into current profits and losses, other related profits and losses (including exchange profits and losses) are
completely included into other comprehensive incomes and will not then be converted into current profits
and losses of the reporting period. Upon derecognition, the accumulated gains or losses previously
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included into other comprehensive incomes are transferred from other comprehensive incomes and
included into retained earnings.
Financial assets other than those measured at amortized cost and those measured at fair value with
changes recognized in other comprehensive income. Such financial assets are initially measured at their
fair values, with related transaction costs directly included into the current profits and losses. Such
financial assets are initially measured at their fair values, with related transaction costs directly included
into the current profits and losses. Profits or losses of such financial assets shall be included in the current
profits and losses.
The financial asset formed by the contingent consideration confirmed during business merge not
under the same control are classified as those measured by its fair value by the Company, with changes
included into current profits and losses.
Recognition basis and measurement method for transfer of financial assets
Financial assets meeting one of the following conditions shall be derecognized by the Company: 1)
the contractual right to collect the cash flow of the financial asset is terminated; 2) the financial assets have
been transferred by the Company, and almost all risks and rewards associated with the ownership of the
financial asset are transferred; 3) the financial assets have been transferred, and the Company had neither
transferred nor retained almost all risks and rewards associated with the ownership of the financial assets,
but given up the control over the financial assets.
For financial asset that is entirely transferred and meets the conditions of de-recognition, the
difference between the book value of financial asset transferred and the sum of consideration received
from such transfer and the accumulated changes in fair value, directly included into other comprehensive
income and corresponding to the derecognized amount (in accordance with the contract terms of the
financial assets involved in such transfer, the cash flow generated at the specific date is only the payment
of the principal and the interest on the basis of the outstanding principal amount), is included into the
current profits and losses.
For financial asset that is partially transferred and meets the conditions of derecognition, the overall
book value of transferred financial asset is split according to their relative fair value between the part
derecognized and the part not derecognized, and the difference between the following two amounts is
recognized in current profits and losses: the sum of consideration received due to transfer and the amount
amortized to the derecognized part and corresponding to the accumulative change of fair value which is
firstly included into the other comprehensive income (in accordance with the contract terms of the
financial assets, the cash flow generated at the specific date is only the payment of the principal and the
interest on the basis of the outstanding principal amount), and the overall book value of aforesaid financial
assets.
Financial liabilities
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Classification, recognition and measurement of financial liability
The Company’s financial liabilities are grouped, upon initial recognition, into financial liabilities
measured at fair value, with the changes included in the current profit or loss and other financial liabilities.
Financial liabilities measured at fair value with changes included in the current profits and losses
include trading financial liabilities and financial liabilities designated to be measured as at fair value with
changes included in the current profits and losses upon initial recognition. The net gain or loss arising from
changes in fair value, dividends and interest paid related to such financial liabilities are recorded in profits
and losses for the period in which they are incurred.
Other financial liabilities are measured subsequently at the amortized cost by adopting the effective
interest method. Apart from the following items, the Company will classify the financial liabilities as those
measured at amortized cost: 1) the financial liabilities measured at fair value with changes included into
current profits and losses include financial liabilities held for trading (including derivatives that are
financial liabilities) and financial liabilities designated to be measured at fair value with changes included
into current profits and losses; 2) the financial liabilities formed by transferring of the financial assets
failed to meet the conditions for derecognition or formed by continuous involvement of transferred
financial assets; 3) the financial guarantee contracts that do not fall under above 1) and 2) as well as loan
commitments at a rate below the market rate of interest that do not fall under above 1).
Where a contingent consideration is recognized by the Company as a financial liability in business
merger not under common control, such financial liability shall be measured at fair value with changes
included into the current profits and losses during accounting treatment.
Derecognition of financial liabilities
When the current obligation of the financial liabilities has been relieved in whole or part, the part of
the financial liabilities or obligations that have been relieved upon confirmation is terminated. If the
Company reaches an agreement with the creditor to replace the existing financial liabilities by undertaking
new financial liabilities and the contract terms of the existing and new liabilities are different in substance,
the existing financial liabilities shall be derecognized while the new liabilities shall be recognized. Where
all or part of the contract terms of the existing financial liabilities are subject to material modification, the
Company shall derecognize all or part of the existing financial liabilities while recognizing the financial
liabilities with modified terms as new financial liabilities. The difference between the book value of the
terminated part upon confirmation and the considerations paid is included in the current profit and loss.
Method for determining the fair value of financial assets and financial liabilities
The Company measures the fair value of financial assets and financial liabilities in the main market. If
there is no major market, the Company measures the fair value of financial assets and financial liabilities
with most beneficial price for the market and adopts evaluation techniques with much available data and
other information support that is applicable at that time. There are three levels of input data to determine
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fair values, wherein the first level is the unadjusted price available for the same asset or liability on the
date of evaluation in an active market; the second level is directly or indirectly observable input data of
relevant assets or liabilities apart from input data of the first level; the third level is unobservable input data
of relevant assets or liabilities. The Company gives priority of using the first-level inputs and takes the
third-level inputs as the last. The lowest layer that has significant impact on the overall fair value
evaluation determines which level this fair value evaluation result shall belong to.
Investments in equity instruments of the Company are measured at fair value. However, under certain
circumstances, if recent information needed to determine the fair value is insufficient, or if the estimated
amount of the fair value features an extensive distribution scope and the cost represents the best estimate of
the fair value in that distribution scope, the cost may represent the appropriate estimate on the fair value
within that distribution scope.
Offsetting financial assets and financial liabilities
Financial assets and financial liabilities of the Company are separately presented in the balance sheet
without offsetting. However, the net amount resulting from the offsetting between financial assets and
financial liabilities shall be presented in the balance sheet only if all of the following criteria are met: 1) the
Company has the statutory right to set off recognized amounts which is currently enforceable; 2) the
Company intends either to settle on a net basis, or to realize the financial assets and pay off the financial
liabilities simultaneously.
Distinction and relevant treatment methods of financial liabilities and equity instruments
The Company distinguishes between financial liabilities and equity instruments according to the
following principles: 1) where the Company cannot unconditionally avoid fulfilling certain contractual
obligation by delivering cash or other financial assets, then such contractual obligation is in line with the
definition of the financial liability. Although certain financial instruments do not expressly contain terms
and conditions for the contractual obligation to deliver cash or other financial instruments, the contractual
obligation may be indirectly formed according to other terms and conditions; 2) where a financial
instrument must or can be settled using the Company's own equity instrument, the Company shall consider
whether the Company's own equity instrument used for settlement is a substitute of cash or other financial
assets, or the residual interest in the assets of an entity after deducting all of its liabilities. If it is the first
case, the instrument shall be the financial liability of the issuer. If it is the latter case, the instrument shall
be the equity instrument of the issuer. Under some circumstances, the contract of a financial instrument
may require that the financial instrument must or is able to be settled by the Company’s own equity
instrument. The amount of contractual right or contractual obligation equals to the amount of its own
equity instrument receivable or payable multiplied by its fair value at the time of settlement. Whether the
amount of such contractual right or obligation is fixed, or varies, wholly or partially, based on variables
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other than the market value of the Company’s own equity instrument (such as interest rates, the price of a
commodity or the price of a financial instrument), such contract is classified as financial liability.
In classifying financial instruments (or components) in the consolidated statements, the Company
shall take into account all the terms and conditions agreed between members of the Company and holders
of the financial instruments. If the Company, as a whole, undertakes the obligation to deliver cash, other
financial assets or settle in other ways that cause the financial instrument to become a financial liability,
the instrument shall be classified as a financial liability.
If a financial instrument or any of its components is a financial liability, the relevant interests,
dividends, gains or losses, and gains or losses from redemption or re-financing and so on are included in
the current profits & losses of the Company.
If a financial instrument or its component belongs to an equity instrument, for its issue (including re-
financing), repurchase, sale or cancellation, the Company will treat it as a change in equity and will not
recognize the change in fair value of equity instruments.
Impairment of financial instruments
The Company, based on expected credit losses, performed impairment accounting and recognized
credit impairment losses on financial assets measured at amortized cost, financial assets classified to be
measured at the fair value with the changes included into other comprehensive incomes as well as financial
guarantee contracts.
The expected credit loss is a weighted average of credit losses on financial instruments weighted at
the risk of default. Credit loss refers to the difference between all contractual cash flows discounted as per
the original effective interest rate and receivable from the contract and all cash flows expected to be
received by the Company, namely, the present value of a shortage of cash. Among them, financial assets
purchased or underlying with credit impairment of the Company shall be discounted at the financial assets’
effective interest rate after credit adjustment.
For account receivables arising from transactions scoped in ASBE on Revenue not containing
significant financing components, the Company takes the simplified measurement method to measure its
loss provisions based on the amount of expected credit losses during the entire duration.
For financial assets purchased or underlying with credit impairment, the cumulative change in
expected credit loss during the entire duration since the date of balance sheet date after initial recognition
will be recognized as provision for loss. On each date of balance sheet, the amount of change in expected
credit loss during the entire duration is included into current profits and losses as impairment losses or
gains. Even if the expected credit loss within the entire duration determined on the date of balance sheet is
less than the amount of expected credit loss reflected by estimated cash flow upon initial recognition, any
favorable change in expected credit loss will be recognized as impairment gains.
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In addition to other financial assets adopting the aforesaid simplified measurement method or
financial assets purchased or underlying with credit impairment, the Company shall assess whether the
credit risk of relevant financial instruments has increased significantly since the initial recognition on each
balance sheet date, and shall respectively accrue their provision for loss and recognize the expected credit
loss and its change:
1. In the event that the credit risk has not increased significantly since the initial recognition and it is in
Stage I, the Company shall measure its loss provisions based on the amount of expected credit losses
for the coming 12 months of such financial instrument and calculate the interest on the basis of book
balance and effective interest rate.
2. In the event that the credit risk of the financial instrument has increased significantly since the initial
recognition but with no credit impairment and it is in Stage II, the Company shall measure its loss
provisions based on the amount of the expected credit loss of the financial instrument during the entire
duration and calculate the interest on the basis of book balance and effective interest rate.
3. In case that credit impairment of the financial instrument has incurred since the initial recognition and
it is in Stage III, the Company shall measure the loss provisions of the financial instrument based on the
amount of expected credit losses during the entire duration, and calculate the interest at amortized cost
and effective interest rate.
Increases or reversals of the provisions for credit losses of the financial instrument are recorded in the
current profits and losses as impairment losses or gains. Except for financial assets classified to be
measured at fair value through other comprehensive income, the book balance of financial assets is
deducted with provision for credit losses. For financial assets classified to be measured at fair value, with
the change included in other comprehensive incomes, the Company shall recognize the provision for credit
loss in other comprehensive incomes, and shall not decrease the book value of such financial assets listed
in the balance sheet.
Where the Company has measured the provisions for losses based on the amount of the expected
credit loss over the entire duration of such financial instruments in the prior accounting period, but on the
current balance sheet date, such financial instruments no longer fall into the scope of significantly
increased credit risk since initial recognition, the Company measures the provisions for the losses of such
financial instruments based on the amount equivalent to the expected credit losses over the coming 12
months on the current balance sheet date, with resulting carrybacks of provisions for losses recorded in the
current profits and losses as impairment gains.
1 Significant increase in credit risk
The Company determines if there is a significant increase in credit risk of financial instruments since
initial recognition by comparing the risks of default of financial instruments on the balance sheet date and
the date of initial recognition based on reasonable and well-grounded forward-looking information
available. For the financial guarantee contract, when the Company applies the regulations on impairment
of financial instruments, the date when the Company becomes the party which makes the irrevocable
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undertaking is regarded as the date of initial recognition. The Company will take into account the
following factors when assessing whether the credit risk is significantly increased: whether the operating
results of the debtor has actually changed or is expected to significantly change or not; whether the
regulatory, economic or technical environment where the debtor is located has significantly and adversely
changed or not; whether the value of the collateral as the debt pledge or the guarantee provided by the third
party or credit enhancement quality has significantly changed or not, as these changes are expected to
reduce the economic motives of the debtor to make repayments within the time limits prescribed in the
Contract or to impact the default probability; whether the expected performance or repayment behavior of
the debtor has significantly changed or not; whether the Company has changed its management method for
financial instrument credit or not, etc.
On the balance sheet date, if the Company determines that the financial instrument only carries low
credit risks, then the Company will assume that the credit risks of the financial instrument have not
increased significantly since the initial recognition. If the risk of default on financial instruments is low,
the borrower is highly capable of performing its contractual cash flow obligations in the short term, and
even if the economic situation and operating environment are adversely changed over a long period of time
but not necessarily reducing the borrower’s performance of its contractual cash obligations, then the
financial instrument is considered as having a lower credit risk.
2 Credit-impaired financial assets
In case of one or more events adversely affecting the estimated future cash flows of a financial asset,
the financial asset becomes a financial asset to which a credit impairment has happened. Evidence of a
credit impairment on a financial asset includes the following information: serious financial difficulties of
the debtor; a breach of contract by the debtor, such as a default or overdue payment of interest or principle;
the creditor, for economic or contractual considerations relating to financial difficulties of the debtor,
offers the debtor concessions that are impossible in any other circumstances; it is probable that the debtor
will enter bankruptcy or other financial reorganization; the disappearance of an active market for that
financial asset because of financial difficulties of the issuer or the debtor; the purchase or origination of a
financial asset at a deep discount that reflects the incurred credit losses.
The credit impairment of financial assets may be caused by the joint effect of the above multiple
events, and may not be caused by individually identifiable events.
3) Determination of expected credit losses
In assessing the expected credit loss, the Company takes reasonable and well-founded information
about past event, current condition and future economic status predictions into consideration based on the
expected credit loss of single and combined financial evaluation instruments.
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The Company divides the financial instruments into different portfolios based on the common credit
risk characteristics. See accounting policies of relevant financial instruments for single evaluation
standards and combined credit risk characteristics.
The Company determines the expected credit losses of financial instruments under the following
methods:
For financial assets, the credit loss is calculated as the present value of the difference between the
contractual cash flows to be collected by the Company and cash flows expected to be collected.
For the financial guarantee contract, the credit loss is the expected payment made to the contract
holder by the Company for reimbursing the contract holder against the credit losses incurred by the
contract holder, deducted by the present value of the differences between the amounts expected to be
received by the Company from the contract holder, debtor or any other party.
For financial assets which have been credit-impaired on the balance sheet date but are not purchased
or underlying with credit impairment, the credit loss is calculated as the difference between the book
balance of such financial assets and present value of anticipated future cash flows discounted at the
original effective interest rate.
12. Notes receivable
The Company, based on the acceptor credit risk of the notes receivable as common risk characteristics,
divides the notes receivable into different combinations and determines the accounting estimation policy of
expected credit loss.
Combination Basis for determining
Provision method
classification combination
The Company believed that there was no significant
Banker’s acceptances The acceptor is a banking credit risk in the bank acceptance held by the
combined financial institution. Company and there will be no significant loss due to
the default of the bank.
The acceptor is a non-bank
The company shall measure the bad-debt provision of
Trade acceptances financial institution or
receivable trade acceptance based on the expected
combined enterprise like a finance
credit loss during the entire duration.
company.
13. Accounts receivable
For the receivables arising from transactions regulated by the Accounting Standards for Business
Enterprises No. 14 Revenue Standards (whether or not containing significant financing components) and
the lease receivables regulated by the Accounting Standards for Business Enterprises No. 21 Leasing, the
Company takes the simplified measurement method to measure its loss provisions based on the amount of
expected credit losses during the entire duration.
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For accounts receivable, the Company assesses whether the credit risk increases significantly on the
basis of a single financial instrument or a combination of financial instruments. The Company singly
evaluates the credit risk of receivables with significantly different credit risks and the following
characteristics: receivables in dispute with the other party or involved in litigation and arbitration; accounts
receivable that there are obvious indications showing that the debtor is likely to be unable to fulfill the
repayment obligation. The Company cannot obtain sufficient evidence of significant increase in credit risk
at the level of single financial instrument at reasonable cost, but it is feasible to assess whether the credit
risk increases significantly on the basis of the combination of financial instruments. When the assessment
is performed on the combination of financial instruments, the Company can classify the financial
instruments based on the common credit risk characteristics.
The Company classifies the accounts receivable into the following combinations based on their credit
risk characteristics:
Combination classification Basis for determining combination Provision method
Credit loss that accrues accounts
Accounts receivable with the same aging have
receivable by aging analysis Expected rates of credit loss
similar credit risk characteristics
method
Related parties within the Funds of subsidiaries within the consolidation No expected credit loss
consolidation scope scope of controlling shareholders under normal circumstances
If there is objective evidence showing that the credit impairment of certain account receivable has
incurred, the Company shall singly withdraw the bad debt reserve of accounts receivable and confirm the
expected credit loss.
For accounts receivable with credit loss accrued from receivables by aging analysis method, based on
the actual credit loss of previous years and considering the forward-looking information of the current
period, the accounting estimate policies of the Company for measuring the expected credit loss are as
follows:
Age Expected rates of credit loss
Less than 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 calculates the expected credit loss of receivables on the balance sheet date. If the
expected credit loss is greater than the carrying amount of the current receivables impairment provision,
the Company will recognize the difference as impairment loss of receivables, debit "credit impairment
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loss" and credit "bad debt provision". Otherwise, the Company will recognize the difference as impairment
gains and make opposite accounting records.
For the actual credit losses of the Company, if the relevant receivables are determined to be
unrecoverable and are approved to be written off, the Company shall debit "bad debt provision" and credit
"accounts receivable" according to the approved write-off amount. If the write-off amount is greater than
the accrued loss provisions, the "credit impairment loss" will be debited according to the difference.
14. Receivables financing
Where the following conditions are reached at the same time, the financial assets can be classified as
those measured at fair value and its change and included into other comprehensive income: the Company
adopts the business management mode of the financial assets for the purpose of collecting contractual cash
flow and selling the financial assets. In accordance with the contract terms of the financial assets, the cash
flow generated at the specific date is only the payment of the principal and the interest on the basis of the
outstanding principal amount.
The Company transfers the accounts receivable held in the form of discount or endorsement, and such
business is more frequent and involves a large amount of money. Its business management model is, in
essence, to collect and sell contract cash flow. According to the relevant provisions of financial instrument
standards, the accounts receivable is classified into financial assets with changes measured at fair value
and included in other comprehensive income.
15. Other receivables
Determination and accounting method for expected credit loss of other accounts receivable
The Company divides the process of credit impairment of other receivables into three stages and
adopts different accounting treatment methods for the impairment of other receivables in different stages:
Credit risk has not increased significantly since initial recognition (Stage I)
For the financial instruments in this stage, the Company shall measure the loss provisions based on
the expected credit loss in the next 12 months.
The Company classifies other receivables based on aging as a credit risk characteristic and measure
them on the basis of combination, which is equivalent to the expected credit loss in the next 12 months.
Credit risk has increased significantly since initial recognition but has not been impaired (Stage II)
For the financial instruments in this stage, the Company shall measure the loss provisions based on
the expected credit loss during the entire duration.
Credit impairment after initial recognition (Stage III)
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For the financial instruments in this stage, the Company shall measure the loss provisions based on
the expected credit loss during the entire duration.
16. Contract assets
Recognition method and standard of contract asset
Contract asset refers to the rights of the Company to receive consideration for goods transferred to the
customer, which depend on other factors except for the lapse of time. Where the Company sells two clearly
distinguished commodities to the customer and has the right to collect the payment because one
commodity is delivered and the payment relies on the delivery of the other commodity, the Company will
treat the collection rights as the contract assets.
Determination and accounting method for expected credit loss of contract assets
For the determination method for expected credit loss of contract assets, please refer to relevant
contents in 11. Financial asset and liabilities; 12. Notes receivable and 13. Account receivable.
The Company calculates the expected credit loss of contract assets on the balance sheet date. If the
expected credit loss is greater than the carrying amount of the current impairment provision of contract
assets, the Company will recognize the difference as impairment loss, debit "asset impairment loss" and
credit "contract asset impairment provision". Otherwise, the Company will recognize the difference as
impairment gains and make opposite accounting records.
For the actual credit losses of the Company, if the relevant contract assets are determined to be
unrecoverable and are approved to be written off, the Company shall debit "contract asset impairment
provision" and credit "contract assets" according to the approved write-off amount. If the write-off amount
is greater than the accrued loss provisions, the "asset impairment loss" will be debited according to the
difference.
17. Inventories
Inventories of the Company mainly include low-value consumables, raw materials, goods in-process,
merchandise inventory and goods shipped in transit.
Inventories are initially measured by cost. Inventory costs include purchase costs, processing costs,
and other costs. The inventories are managed based on perpetual inventory system, and valued at actual
cost on acquisition. Actual cost is calculated using weighted average method when the inventories are
issued or consumed.
Low-value consumables and packaging materials are amortized using one-off amortization method.
The provision for inventory write-downs is made based on the excess of the cost of individual inventory
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items over their net realizable value. For raw and auxiliary materials of larger amount and lower unit price,
inventory revaluation reserves shall be accrued based on the category.
Net realizable value of stock goods, work in progress, or held-for-sale materials are determined by
their estimated selling price deducted by estimated selling expenses and related taxes. Net realizable value
for material held for production are determined by the estimated selling price of finished goods deducted
by the estimated cost to completion, selling expenses and the related taxes.
18. Assets held for sale
The Company classifies non-current assets or disposal groups as held for sale when the primary means of
recovering their carrying amount is through sale (including non-monetary exchanges with commercial
substance) rather than through continued use.
1. The Company classifies non-current assets or disposal groups as held for sale when they meet the
following conditions: 1) the asset or disposal group can be immediately sold in its current condition,
based on customary practices for similar transactions; 2) the sale is highly probable, with a definitive
commitment from a buyer and an expectation that the sale will be completed within one year. The sale
of items that require approval from relevant authorities or regulatory departments must obtain the
necessary approval. Before classifying non-current assets or disposal groups as held for sale, the
Company measures the carrying amounts of each asset and liability within the non-current assets or
disposal groups according to the relevant accounting standards. When initially measuring or
remeasuring non-current assets or disposal groups held for sale on the balance sheet date, if their
carrying amount exceeds the net amount after deducting the fair value minus the selling expenses, the
carrying amount shall be adjusted to the fair value less costs to sell. The impairment loss should be
recognized in the current period's profit or loss, and an impairment provision for held-for-sale assets
shall be established.
2. Non-current assets or disposal groups acquired specifically for resale are classified as held for sale on
the acquisition date if they meet the requirement that "the sale is expected to be completed within one
year" and are likely to meet the other classification criteria for held-for-sale within a short period
(typically within three months). At initial measurement, the asset or disposal group is measured at the
lower of the carrying amount assuming it is not classified as held for sale and the fair value less costs
to sell. Except for non-current assets or disposal groups acquired in a business merger, any difference
arising from using fair value less costs to sell as the initial measurement amount is recognized in the
reporting period’s profit or loss.
3. If the Company loses control over a subsidiary due to reasons such as selling the investment in the
subsidiary, regardless of whether the Company retains part of the equity investment after the sale, if
the investment in the subsidiary meets the classification criteria for held-for-sale, the entire investment
in the subsidiary is classified as held-for-sale in the parent company's individual financial statements.
In the consolidated financial statements, all assets and liabilities of the subsidiary are classified as
held-for-sale.
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4. On subsequent balance sheet dates, if the net amount of the fair value less costs to sell of the non-
current assets held-for-sale increases, the previously written-down amount should be recovered and
reversed within the amount of the asset impairment loss recognized after being classified as held-for-
sale. The reversed amount is recognized in the reporting period's profit or loss. Asset impairment
losses recognized before being classified as held-for-sale cannot be reversed.
5. For the amount of asset impairment loss recognized on a disposal group classified as held-for-sale, the
impairment loss should first be deducted from the carrying amount of goodwill in the disposal group.
Then, based on the proportion of the carrying amount of each non-current asset within the group, the
carrying amounts of those assets are proportionally reduced.
On subsequent balance sheet dates, if the net amount of the fair value less costs to sell of the disposal
group held-for-sale increases, the previously written-down amount should be recovered and reversed
within the amount of the asset impairment loss recognized after being classified as held-for-sale, in
accordance with the relevant measurement regulations applicable to non-current assets classified as held-
for-sale. The amount reversed is recognized in the reporting period's profit or loss. The carrying value of
goodwill that has been reduced and the asset impairment losses on non-current assets recognized before
classification as held-for-sale cannot be reversed.
For the amount of asset impairment loss recognized on a disposal group classified as held-for-sale and
then reversed, based on the proportion of the carrying amount of each non-current asset within the group,
excluding goodwill, the carrying amounts of those assets are proportionally increased.
1. Non-current assets or non-current assets within a disposal group classified as held-for-sale are not
subject to depreciation or amortization. However, the interest and other expenses related to liabilities
within a disposal group held-for-sale continue to be recognized.
2. If a non-current asset or disposal group classified as held-for-sale no longer meets the criteria for such
classification, or if a non-current asset is removed from a disposal group held-for-sale, it is measured at
the lower of the following two amounts: 1) the carrying amount before being classified as held-for-sale,
adjusted for depreciation, amortization, or impairment that would have been recognized had the asset
not been classified as held-for-sale; 2) the recoverable amount.
3. Upon the derecognition of non-current assets or disposal groups classified as held-for-sale, any
unrecognized gains or losses are included in the reporting period's profit or loss.
19. Long-term equity investments
Long-term equity investment of the Company mainly includes the investment to the subsidiaries, and
the equity investment to associated enterprises and joint ventures.
The Company follows the basis to judge the joint control: all the participants or group of participants
collectively control the arrangements, and the policies for activities related to such arrangement must be
agreed by all such participants.
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Generally, it constitutes significant influence on an investee if the Company controls 20% (inclusive)
or more (less than 50%) voting shares of the investee directly or indirectly through a subsidiary. Where the
Company controls less than 20% voting shares of the investee directly or indirectly through a subsidiary,
significant effects on the investee shall be judged based on the facts and circumstances in the case that
appoint representative to the board of directors or similar organ of power under the investee, participate the
development of financial and operating policies of the investee, conduct important trading with the
investee, dispatch management personnel to the investee, or provide key technical data to the investee.
The one forming control over the investee is the subsidiary of the Company. For the long-term equity
investment acquired through business merger under the same control, the share of the combined party in
the book value of net assets presented in consolidated financial statements of ultimate controlling party
acquired at the date of combination is recognized as initial investment cost of long-term equity investment.
The book value of net assets for the combined party is negative on the combining date, and the long-term
equity investment cost is determined as zero.
In case that equity of the investee under the same control is obtained through multiple deals step by
step to finally form business merger, for package deals, the Company shall account each deal as a deal to
obtain the control. If it is not a package deal, the share of the book value of combined party's net assets
presented in consolidated financial statements of ultimate controlling party acquired at the date of
combination is recognized as initial investment cost of long-term equity investment. The difference
between initial investment cost and the sum of the book value of long-term equity investment before the
combination is realized and the book value of consideration additionally paid to further acquire shares on
the date of combination is adjusted against the capital surplus; if the capital surplus is not sufficient to be
offset, the remaining balance is adjusted against retained earnings.
For long-term equity investments acquired through business mergers not under common control, the
combined cost is used as the initial investment cost.
In case that equity of the investee not under the same control is obtained through multiple deals step
by step to finally form business merger, for package deals, the Company shall account each deal as a deal
to obtain the control. If it is not a package deal, initial investment cost accounted using cost method will be
the sum of the book value of original equity investment and new investment cost. For equity held before
the date of acquisition and accounted with equity method, other related comprehensive income using
equity method for accounting shall not be adjusted, and accounting treatment should be applied to these
investments on the same basis as those adopted by the investee for direct disposal of related assets or
liabilities. For equity held before the date of acquisition and accounted at fair value in the available-for-
sale financial assets, the accumulated change in fair value which is originally included in other
comprehensive income shall be transferred to the investment profit or loss for the current period on the
combining date.
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Apart from the long-term equity investments acquired through business merger mentioned above, the
long-term equity investments acquired by cash payment is used as the cost of investment based on the
purchase price actually paid. For long-term equity investments obtained by issuing equity securities, the
fair value of the equity securities issued is recorded as the initial investment cost. For long-term equity
investments obtained by exchange of non-monetary assets, the initial investment cost shall be determined
in accordance with relevant provisions in the Accounting Standards for Business Enterprises No. 7
Exchange of Non-Monetary Assets; the initial investment cost shall be determined in accordance with the
relevant provisions of the Accounting Standards for Business Enterprises No. 12 Debt Restructuring by the
long-term equity investment of debt restructuring.
Investment in subsidiaries by the Company shall be calculated by cost method, while investment in
joint ventures and associates by the Company shall be calculated by equity method.
For long-term equity investment calculated by cost method, the cost of long-term equity investment
shall be adjusted when the investment is added or recovered. The cash dividends or profits declared to be
distributed by the investee shall be recognized as the current investment income.
For long-term equity investment calculated by equity method in subsequent measurement, the book
value of the long-term equity investment shall be increased or decreased accordingly with the changes in
owner’s equity of the investee. The shares of the net profits & losses of the investee attributable to the
Company shall be recognized based on the fair value of all identifiable net assets of the investee upon
acquisition of the investment in accordance with the accounting policies and accounting period of the
Company, after deducting the parts of the profits & losses arising from internal transactions between the
associates and joint ventures attributable to the Company calculated on the basis of shareholding ratio and
adjusting the net profits of the investee.
When disposing the long-term equity investment, the balance between the book value and the
acquired price actually shall be included in the current profit and loss. As for long-term equity investments
calculated by the equity method, when other changes in owners’ equity other than net gain or loss of the
investee are recorded in owners’ equity, the amount initially recorded in owners’ equity is proportionally
transferred into current investment income.
If all transactions from step-by-step disposal of equity to loss of controlling interest do not belong to
package transaction, the Company will conduct accounting treatment for each transaction. In case of
package transaction, all transactions shall be calculated as one transaction of disposing subsidiaries and
losing control power for accounting treatment. However, the difference between disposal cost of each
transaction and book value of long-term equity investment corresponding to equity disposed before losing
control power shall be recognized as other comprehensive income and then shall be transferred into current
profits and losses of losing control power upon such loss.
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20. Investment real estates
Measurement model of investment real estate
Measurement by cost method
Depreciation or amortization methods
Investment properties held by the Company include buildings held for the purpose of earning rental
income, capital appreciation, or both. Measurement is carried out by cost model.
The investment real estates of the Company are depreciated or amortized by the composite life
method. The estimated service life, net residual value ratio and annual depreciation (amortization) rate of
the investment real estate are as follows:
Depreciation period Estimated residual value Annual depreciation
Type
(years) ratio (%) rate (%)
Houses and buildings 20 5.00 4.75
Land use right 50 0.00 2.00
21. Fixed assets
(1) Recognition conditions
Fixed assets of the Company refer to tangible assets with service life over one year and an individual
value exceeding RMB 5,000, which are held for producing goods, rendering labor services, lease
(exclusive of leased houses, buildings and molds) or operation and management.
Fixed assets are recognized when the economic benefits related thereto are likely to flow into the
Company and their costs can be measured in a reliable manner. Fixed assets include houses and buildings,
machine and equipment, transportation equipment and other equipment, and the actual cost at the time of
acquisition is taken as the entry value. Among them, the cost of purchased fixed assets includes the
purchase price, import duties and other related taxes, as well as other expenditures that can be directly
attributed to the fixed assets before the fixed assets reach the predetermined serviceable state; the cost of
the self-constructed fixed assets consists of necessary expenses incurred before the constructed assets are
ready for the intended use; the fixed assets invested by investors shall be accounted for at the value agreed
in the investment contract or agreement, or at the fair value if the value agreed in the investment contract
or agreement is unfair; the fixed assets rented in by way of financial lease shall be accounted for at the fair
value. For fixed assets obtained by financing lease, the lower of the fair value of rented assets and the
present value of the minimum lease payment on the lease start date shall be recorded as the entry value.
(2) Depreciation method
Annual depreciation
Type Depreciation method Depreciation period Residual value rate
rate
Houses and buildings Straight-line method 20 years 5.00% 4.75%
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Machine and
Straight-line method 10 years 5.00% 9.50%
equipment
Transportation
Straight-line method 5 years 5.00% 19.00%
equipment
Other equipment Straight-line method 5 years 5.00% 19.00%
Processing of subsequent expenditure of fixed assets: The subsequent expenditure of fixed assets
mainly includes renovation/modification expenditure, repair expenditure, etc. When the relevant economic
benefits are likely to flow in and the costs can be measured in a reliable manner, they shall be included into
the cost of fixed assets. For the replaced part, the book value shall be derecognized. All the other
subsequent expenditures are recognized in profit or loss for the current period in which they are incurred.
The Company will recheck the estimated service life, the estimated net residual value and the
depreciation method of the fixed assets on each balance sheet date.
Changes, if any, are regarded as the accounting estimate changes. A fixed asset is derecognized when
it is disposed of or no economic benefit is expected from the use or disposal of the asset. The amount of
proceeds on sale and transfer of a fixed asset as well as disposal of a scrapped or damaged fixed asset less
carrying amount and related taxes thereof, is recognized in profit and loss for the current period.
22. Construction in progress
Construction in progress is measured at its actual cost. The self-operating works is measured
according to the direct material, direct wage, direct construction cost, etc.; the outsourced works is
measured according to the project price payable; the project cost of the equipment installation works is
determined according to the value of installed equipment, installation cost, commissioning cost and other
expenditures incurred. The cost of construction in process shall also include borrowing costs that should be
capitalized.
The fixed assets constructed by the Company shall be transferred into fixed assets at the estimated
value based on project budget, construction cost and actual project cost from the date when fixed assets get
ready for intended use and depreciation of such assets will be accrued in next month. Upon completion of
the final accounts formalities, the original value difference of the fixed assets will be adjusted.
Construction in progress is transferred to fixed assets when it reaches its intended usable state, based
on the following criteria:
Item Standard for carrying forward fixed assets
(1) The construction of the entity, including installation, has been fully or substantially
completed; (2) further expenditures on the purchased or constructed houses and buildings are
Houses and minimal or have nearly ceased; (3) the purchased or constructed houses and buildings have met
buildings the design or contractual requirements, or are substantially in accordance with these
requirements; (4) for construction projects that have reached a predetermined usable state but
have not yet undergone final completion settlement, the projects shall be transferred to fixed
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assets at their estimated value based on the actual cost of construction, effective from the date
they reach the predetermined usable state.
The equipment management department and the equipment manufacturer are jointly responsible
for the installation and commissioning of the equipment, including hardware debugging and
Machine and
process condition adjustments. Once commissioning is completed and the equipment has
equipment
reached its predetermined usable state, it will be transferred to fixed assets after the approval
process is completed.
When it reaches the designated usable state, it will be transferred to fixed assets after the
Transportation
approval process is completed according to the procedure.
When it reaches the designated usable state, it will be transferred to fixed assets after the
Other equipment
approval process is completed according to the procedure.
23. Borrowing costs
The Company capitalizes borrowing costs directly attributable to the construction or production of
qualifying assets and includes them in the cost of the related assets. Other borrowing costs are expensed
and recognized in profit or loss for the current period. Recognition principle of borrowing cost
capitalization: The borrowing costs incurred by the Company that can be directly attributable to the
acquisition and construction or production of qualifying assets will be capitalized and incurred in the
relevant asset cost. Other borrowing costs are recognized as expenses based on the amount incurred, and
included in the current profit and loss. Qualifying assets are defined as assets that require a substantial
amount of time (usually more than one year) for construction or production activities before the asset is
ready for its intended use or sale. These include fixed assets, intangible assets and inventory.
Period of capitalizing the borrowing costs: The Company will start to capitalize the borrowing costs
related to the qualifying assets when the asset expenditure has been incurred, the borrowing costs have
been incurred, and the acquisition, construction or production activities necessary to prepare assets for
their intended use or sale are in progress. Where the acquisition or production of a qualifying asset are
interrupted abnormally and the interruption period lasts for more than 3 months, the capitalization of the
borrowing costs shall be suspended. Capitalization of borrowing costs shall cease once the acquisition,
construction or production necessary to prepare the qualifying asset for its intended use or sale are
complete.
Method for calculating the amount of borrowing costs to capitalize: If borrowing funds specifically
for acquiring, constructing or producing qualifying assets, the amount of interest eligible for capitalization
by the Company will be the actual interest costs incurred during the specific borrowing period minus the
interest income obtained by depositing or temporarily investing unspent borrowed funds. Where a general
borrowing is used for the acquisition, construction or production of a qualifying asset, the Company shall
calculate and determine its amount of interest to be capitalized by taking the weighted average of the
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accumulative asset expenditure minus the asset expenditure of the specific borrowing, multiplied by the
weighted average interest rate of the general borrowing used.
24.Intangible assets
(1) Service life and its determination basis, estimation situation, amortization method or review
procedure
The intangible assets of the Company mainly include land use rights, software, trademarks and
patents. As for intangible assets that are purchased, the actual cost is composed of the actual price paid and
other relevant expenditures. For the intangible assets that are invested by investors, the actual cost is
determined by the agreed value in the investment contract or agreement, but if the agreed value is not fair,
the fair value will be taken as the actual cost. Intangible assets are amortized using the composite life
method, and the classifications and amortization periods of the Company’s intangible assets are as follows:
Type Amortization year
Land use right 50 years
30 patents 10 years
Software 3-5 years
Trademark or domain name 10 years
The Company’s land use rights are amortized evenly according to the lease term, starting from the
date of transfer. The Company’s patent rights, non-patented technologies, special software use rights and
other intangible software amortized evenly by stages according to whichever period is the shortest: the
asset’s estimated useful life, the beneficial period stipulated in the contract, or the period of legal validity.
The amount of amortization is included into the current profits and losses or included into the relevant
asset cost according to the beneficiaries.
At the end of each year, the Company shall review, and adjust in case of changes, the estimated
useful lives and amortization methods used for intangible assets with limited useful lives; in each
accounting period, the Company carries out reviews of the estimated useful life of intangible assets whose
useful life is uncertain. Where there is evidence showing that the useful life of these intangible assets is
limited, the Company will estimate the useful life thereof and amortize these intangible assets during the
estimated useful life remaining.
(2) Scope of attribution of R&D expenditure and related accounting treatment
The internal R&D expenditures of the Company can be divided into expenditures made at the
research stage and those made at the development stage, depending on the nature of the expenditure and
the extent of uncertainty on whether the R&D activities will finally form intangible assets.
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For internally-generated intangible assets, expenditures at the research stage are included in the
current profits and losses when incurred; expenditures at the development stage are recognized as an asset,
when the following conditions are met:
It is technically feasible to complete the intangible assets so that they can be used or sold;
There is an intention to complete and use or sell the intangible assets;
There is a potential market for the products manufactured via the application of the
intangible assets, or there is a potential market for the intangible assets themselves;
There is sufficient support in terms of technological, financial and other resources in order
to complete the development of the intangible assets, and there is the capability to use or
sell the intangible asset;
The expenditures made on the intangible assets during the development stage can be
measured reliably.
Expenditures made in the development stage that fail to meet the above conditions shall be included
in the current profits and losses when incurred. The development expenditures previously included in the
profit and loss statement will not be recognized as assets in subsequent periods. The expenditures incurred
and capitalized at the development stage are recorded as development expenditures on the balance sheet
and will be carried over as the intangible asset on the date when the project is ready for its intended use.
If the expenditures made at the research and development stages cannot be distinguished, all the R&D
expenditures incurred will be fully included in the current profits and losses. The costs of the intangible
assets generated by internal development activities only include the total expenditures incurred from the
time when the capitalization conditions are met to the point when the intangible assets are used for their
intended purposes; for expenditures that are already recorded as such in the profit and loss statement
before the capitalization conditions are met during development of the same intangible asset, no
adjustments will be made.
25.Impairment of long-term assets
On each balance sheet date, the Company shall audit the projects of subsidiaries, joint ventures and
associates, including long-term equity investments, fixed assets, projects under construction, and
intangible assets with finite useful lives. If any of the signs listed below are identified, this is an indication
that the asset may be impaired and the Company will conduct an impairment test. Impairment test is
carried out on the intangible assets with uncertain goodwill and beneficial period and development costs
that have not yet reached their intended usable state at the end of each period, irrespective of whether there
is any indication that the assets may be impaired. If there is difficulty testing the recoverable amount of a
single asset, a test shall be conducted on the asset group which the asset belongs to, or on a combination of
asset groups.
After the impairment test, if the book value of the asset exceeds its recoverable amount, the difference
shall be recognized as an impairment loss. Once such an impairment loss has been confirmed, it shall not
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be reversed in the subsequent accounting period. The recoverable amount of an asset is the greater of its
fair value less the net value of asset disposal and present value of expected future cash flow. The following
signs may indicate asset impairment:
Current market price of the asset drops substantially, with the drop in price being notably higher than
the expected drop over time or due to the asset’s normal use;
Significant changes occur in the current period, or are predicted to occur in the near future, with
regard to the economic, technological or legal environment in which the enterprise conducts its
business operations, or in the asset market, and these changes have or will have negative impacts
on the enterprise;
The market interest rate or other market investment return rates have risen in the current period,
affecting the enterprise’s discount rate for calculating the asset’s present value of expected future
cash flow, and leading to a substantial decrease in recoverable amounts of the assets;
There is any amount of evidence to prove the asset has been out of date or the physical asset has
been damaged;
The asset has been or will be left unused, terminated for use or disposed of ahead of schedule;
There is evidence from the enterprise’s internal reports proving that the economic performance of
the asset has been lower or will be lower than expected. For example, the net cash flow generated
by the assets or operating profits (or losses) realized is much lower (or higher) than the expected
amounts;
Other signs indicating that the asset may have been impaired.
26. Long-term unamortized expenses
The long-term deferred expenses of the Company refer to the expenses that have been paid, but shall
be borne in the current and future periods with an amortization period of more than one year. Moreover,
such expenses shall be subject to average amortization within the benefit period. If long-term deferred
expense items cannot benefit the future accounting periods, the amortized value of such items yet to be
amortized shall be fully transferred into the current profits and losses.
27. Contract liabilities
Contract liabilities reflect the obligations of the Company to transfer goods to the client for which
consideration is received or receivable from the client. Before the Company transfers goods to the client,
and the client has paid the consideration in the contract or the Company has obtained the right of
unconditionally collecting the consideration, the contract liabilities are recognized according to the
received or receivable amount either at the time of actual payment by the client or when the payment is
due―whichever is earlier.
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28. Employee remuneration
(1) Accounting treatment method of short-term remuneration
Short-term remunerations mainly include wages, bonuses, allowances and subsidies, employee
welfare, housing provident funds, labor union funds, employee education funds, medical insurance
premiums, industrial injury insurance premiums, and maternity insurance premiums. In the accounting
period during which the employee has rendered service, the actual short-term remuneration incurred is
recognized as a liability and included into the current profits and losses or related asset costs based on the
beneficiary.
(2) Accounting treatment method of post-employment benefits
The post-employment benefits mainly include basic endowment insurance, unemployment insurance,
enterprise and annuity payments, which are classified into defined contribution plans according to the risks
and obligations undertaken by the Company. Moreover, the contributions paid into a separate entity in
exchange for the employee’s services during the accounting periods at the balance sheet date are
recognized as a liability, and recorded in current profits and losses or relevant asset costs based on the
beneficiary.
(3) Accounting treatment method of dismissal benefits
Dismissal benefits are required in instances when the Company terminates labor relationships with a
certain employee prior to the maturity of their labor contract. The Company shall recognize the employee
remuneration liabilities incurred from termination benefits and include them into the current profits and
losses. This occurs either when the Company cannot unilaterally withdraw the termination benefits
provided by the plan on the termination of the labor relationship or dismissal proposal, or when the
Company recognizes the costs or expenses related to restructuring the payment of termination
benefits―whichever occurs earlier. The compensations paid exceeding one year will be discounted then
included in the current profits or losses.
(4) Accounting treatment method of other long-term employee benefits
Other long-term benefits mainly include long-term incentive plans and long-term benefits. The
Company conducts accounting treatment according to relevant provisions of the defined contribution plans.
29. Provisions
When obligations relating to contingencies such as external guarantee, pending litigation or
arbitration, product quality assurance, layoff plans, loss contracts, restructuring obligations, environmental
pollution control, commitments, and disposal obligation of fixed assets also meet the following conditions,
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the Company recognizes it as a liability: the obligation is currently being undertaken by the Company;
there is a high possibility that the fulfillment of the obligation will result in the outflow of economic
benefits from the enterprise; and the amount of the obligation can be reliably measured.
Provisions are initially measured according to the best estimate of the expenditure required to settle
the present obligation, taking into account factors relating to contingencies such as risks, uncertainties and
the time value of money. On the balance sheet date, the Company reviews the current best estimates and
adjusts the carrying amount of the provisions.
For acquired entities, not under common control, in business mergers, contingent liabilities are
initially measured at fair value. After initial recognition, subsequent measurement is based on the higher of
the amount recognized as a provision or the remaining balance after deducting cumulative amortization
determined by revenue recognition principles from the initial recognition amount.
30. Share-based payment
Share-based payment refers to transactions in which equity instruments are granted or liabilities are
incurred based on equity instruments in order to obtain services provided by the employees or other parties.
Share-based payments are divided into equity-settled and cash-settled share-based payments.
Equity-settled share-based payments made in exchange for the service of employees are measured at
the fair value on the date at which the equity instrument is granted to employees. When the fair value
amount is contingent on completing a service during a vesting period or achieving specified performance
conditions, the fair value of the equity instruments is measured at the grant date. On each balance sheet
date during the vesting period, the cost or expense for the services received during the period is recognized
based on the best estimate of the number of equity instruments expected to vest, using the grant-date fair
value, and recorded as the corresponding increase in capital reserves.
If equity-settled share-based payments are cancelled, they are treated as accelerated exercise on the
date of cancellation and the unrecognized amount is recognised immediately. If an employee or another
party chooses not to fulfill a non-vesting condition during the vesting period, this is treated as a
cancellation of the equity-settled share-based payment. However, if new equity instruments are granted
and it is determined on the grant date that these new equity instruments are intended to replace the
canceled ones, then the replacement equity instruments are treated in the same manner as a modification of
the terms and conditions of the original equity instruments.
Cash-settled share-based payments shall be measured at the fair value of liabilities, and recognized on
the basis of share options or other equity instruments undertaken by the Company. If excisable
immediately after the grant, the fair value of the liabilities assumed shall be included in the relevant costs
or expenses on the granting date, and the liabilities shall be increased accordingly. If it is necessary to
complete the services in the waiting period or achieve the specified performance conditions before the
right is excisable, on each balance sheet date of the waiting period, the services acquired in the current
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period shall be included in the cost or expense based on the best estimation of the excisable right, and the
liabilities shall be adjusted accordingly according to the fair values of the liabilities assumed by the
Company.
On each balance sheet date and settlement date prior to the settlement of relevant liabilities, the fair
value of the liabilities will be re-measured, with any changes recorded in the profits and losses at the
current period.
31. Revenue
Disclose the accounting policies adopted for revenue recognition and measurement by business type
Operating revenues of the company are mainly from sales of goods, rendering labor service and
transferring right to use assets.
Revenue recognition principle
The Company recognizes the revenue upon fulfillment of its performance obligations within the
contract, that is, when the client obtains control of the relevant goods or services. Acquisition of control
over relevant goods or services means the ability to manage the use of such goods or the provision of
services and to receive almost all economic benefits therefrom.
The Company assesses the contract from the commencement date of the contract and recognizes each
individual performance obligation included by the contract, and determines if each individual performance
obligation will be fulfilled during a certain period or at a certain time point.
The performance obligations are to be fulfilled within a specified period once the Company meets one
of the following conditions; otherwise, the Company is to fulfill the performance obligations at a specified
time point:
1) The client obtains and consumes the economic benefits while the Company fulfills the performance
obligations.
2) The client can control goods or services still under construction while the Company is still in the
process of fulfilling the performance obligations.
3) The goods generated while the Company is in the process of performing the contract are
indispensable, and the Company has the right to collect partial payments for the cumulative performance
obligations that have been fulfilled so far within the contract period.
If the performance obligations are performed within the specified period, the Company will recognize
the income within this period in accordance with the progress of the contract’s performance. If the
performance progress cannot be reasonably determined and the costs incurred by the Company are
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expected to be compensated, the revenue will be ascertained according to the costs incurred, until the
performance progress can be reasonably determined.
If the performance obligations are performed at the specified time point, the Company will recognize
the income at the time when the client obtains control over the relevant goods or services. In judging
whether the client has obtained control over goods or services, the Company shall consider the following
signs:
1) The Company has the current right to collect payment for the goods or services.
2) The Company has transferred the legal ownership of the goods to the client.
3) The Company has transferred physical possession of the goods to the client.
4) The Company has transferred the main risks and rewards of ownership of the goods to the client.
5) The customer has accepted the goods or services, etc.
The Company lists the right to receive considerations for transfer of goods or services to the customer
as a contract asset, for which the impairment will be withdrawn on the basis of expected credit loss. The
right of the Company to unconditionally receive considerations from the customer is listed as receivables.
The Company presents the obligation to transfer goods or services to the customer for considerations
received or receivable from the customer as a contract liability.
The situation involves different revenue recognition methods and measurement methods for similar businesses using different
operating models.
Revenue measurement principle
1) If there are two or more performance obligations in the contract, the Company will apportion the
transaction price to each single performance obligation according to the relative proportion of the separate
selling price of the goods or services promised by the single performance obligation at the beginning of the
contract, and the revenue shall be measured according to the transaction price apportioned to each single
performance obligation.
2) The transaction price refers to the amount of consideration that the Company expects to collect due
to the transfer of goods or services to the client, excluding the amount collected by third parties. The
transaction price refers to the amount of consideration that the Company expects to collect for transfer of
goods or services to the client, excluding the amount collected by third parties. The transaction price
recognized by the Company shall not exceed the amount of recognized accumulated income, which is not
likely to be significantly reversed once the relevant uncertainty is eliminated.
3) If there is significant financing in the contract, the Company shall determine the transaction price
according to the amount payable in cash when the client obtains control of the goods or services. The
difference between the transaction price and the contract consideration shall be amortized by the effective
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interest method during the contract period. On the contract start date, if the Company estimates that the
time between the client's acquisition of control over goods or services and the payment of the price by the
client will not exceed one year, the significant financing in the contract shall not be considered.
Specific method for revenue recognition
1) Revenue recognized by time point
Selling electric appliances, fittings and materials by the Company is the performance obligation at a
time point.
Revenue recognition conditions for domestic sales commodity: The Company has delivered the
product to the customer according to the contract terms and the customer has received the product; the
payment has been collected or the receipt voucher has been provided and relevant economic profits might
flow into the Company; main risks and remuneration as for the ownership of the commodity have been
transferred; and legal ownership and control right of the commodity have been transferred.
Revenue recognition conditions for exported commodity: The Company has declared the product to
the customs and the product has been delivered according to the contract terms; the bill of lading has been
obtained, the payment has been collected or the receipt voucher has been provided and relevant economic
profits might flow into the Company; main risks and remuneration as for the ownership of the commodity
have been transferred; and legal ownership and control right of the commodity have been transferred.
2) Revenue recognized by performance progress
The technical service revenue of the Company and the business contract between the operating lease
and the customer are the performance obligations to be performed within a period, for which the revenue
shall be recognized according to the performance progress.
32. Contract costs
Method for determining asset amount related to contract cost
The Company’s assets related to the contract cost comprise the contract performance cost and the
contract acquisition cost.
Contract fulfillment costs refer to the costs incurred by the Company to fulfill a contract, are
recognized as an asset when they are not covered by other accounting standards and meet all of the
following conditions: the costs are directly related to a specific current or expected contract, including
direct labor, direct materials, manufacturing overheads (or similar costs), costs explicitly borne by the
customer, and other costs incurred solely due to the contract; the costs enhance the Company's resources
for fulfilling future performance obligations; and the costs are expected to be recoverable.
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The contract acquisition cost refers to the incremental cost incurred by the Company for the purpose
of securing a contract, which will be recognized in the form of contract acquisition cost as an asset if it is
expected to be recovered. If the amortization period of the assets does not exceed one year, such cost shall
be included as current profit or loss. Incremental cost refers to the cost which will not incur unless a
contract is secured by the Company (e.g. sales commission, etc.). Other costs (such as the travel expense,
whether or not the contract will be acquired, except the incremental cost which can be recovered as
expected) incurred the Company for purpose of acquiring the contract shall be included in the current
profit or loss at the time of occurrence, unless those clearly specified to be borne by the customer.
Asset amortization related to contract cost
The Company’s assets related to contract costs are amortized on the same basis as revenue
recognition of goods related to the asset and recorded in the current profits or losses.
Asset impairment related to contract cost
When the Company recognizes the impairment loss related to contract cost, the Company shall firstly
recognize the impairment loss of other assets which are recognized as per other account standards for
business enterprises and are related to the contract. Then, if the book value is higher than the difference
between the remaining consideration expected to be received for the transfer of the commodity associated
with the asset and the estimated costs to be incurred for the relevant commodity, impairment provision will
be made for the excess portion and recognized as asset impairment loss.
If the factors causing the impairment of prior period change and make the previous difference
between the above-mentioned items higher than the book value of the asset, the withdrew asset impairment
provision shall be reversed and included into the current profits or losses, although the book value of asset
after reversion shall not exceed the book value of the asset at the reversion date under the condition of not
withdrawing the impairment provision.
33. Government grants
Government grants are recognized when the conditions attached to them are met and it is probable
that the grants will be received. Government grants of the Company include fiscal appropriation. Asset-
related government grants refer to government grants obtained by the Company for purchasing and
acquiring long-term assets or forming long-term assets by other ways. Income-related government grants
refer to those other than asset-related government grants. In case the purpose of a grant is not expressly
stipulated in the government document, the Company will categorize the grant according to these above
principles. If it is difficult to categorize the grant, it will be categorized as the income-related government
grant.
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If a government grant is a monetary asset, it will be measured at the amount received; for the grant
appropriated according to the fixed quota or for the grant where there is concrete evidence showing that the
Company is qualified to receive governmental financial support and will be able to receive the support by
the end of the period, the grant will be measured at the receivable; if the government grant is a non-
monetary asset, it will be measured at the fair value, or measured at its nominal amount (RMB 1) if the fair
value cannot be obtained reliably.
If a government grant relating to assets is recognized as deferred income, such grant is recognized in
the current profit or loss based on equal division within the service life of the relevant asset.
If the relevant asset has been sold, transferred, retired or damaged before the end of the service life,
the balance of the relevant deferred income that has not been allocated will be transferred into the current
profit and loss of asset disposal.
Government grants relating to income that compensate future costs, expenses or losses are recognized
as deferred income, and recognized in profit or loss in reporting the related costs, expenses or losses. The
government grants relating to the ordinary activities are included in other income or deducted against
relevant costs and expenses according to the nature of the accounting event, otherwise, they are included in
non-operating income. Government grants unrelated to daily activities will be included in non-operating
income.
If the Company obtains the subsidized loan as a result of preferential financial policy, there will be
two situations: the Ministry of Finance appropriates the interest subsidy to the lending bank, or the
Ministry of Finance directly appropriates the subsidy to the Company, and the accounting treatment for
each of these situations is as follows:
Where the Ministry of Finance appropriates the subsidy to the lending bank, and the bank
provides the Company with the loan at a discounted interest rate, the Company will use
the actual amount of loan received as the book value of the loan, and calculate the relevant
borrowing costs based on the principal of the loan and the interest rate.
Where the Ministry of Finance directly appropriate the interest subsidy to the Company,
the Company will deduct the corresponding interest subsidy against the borrowing costs.
Where the governmental grants recognized by the Company need to be returned, the accounting
treatment will be done as follows in the period they are returned:
1) Where the book value of relevant assets is deducted at the time of the initial recognition, the book
value of assets will be adjusted.
2) Where there is any deferred income concerned, the book balance of the deferred income will be
deducted, but the excessive part will be included in the current profit or loss.
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3) For other circumstances, the government grants will be directly included in the current profit or
loss.
34. Deferred income tax asset/deferred income tax liability
Deferred income tax asset and deferred tax liability of the Company are calculated and recognized
based on the differences (temporary differences) between the tax base and the carrying amount of an asset
or liability. For the deductible loss and tax credits that can be deducted annually in the subsequent years
according to tax laws, the corresponding deferred income tax assets are recognized. Where the temporary
differences arise from the initial recognition of goodwill, the corresponding deferred income tax liabilities
are not recognized. No deferred tax asset or deferred tax liability is recognized where the temporary
differences arising from the initial recognition of assets or liabilities in a transaction that is not a business
merger affect neither accounting profit nor taxable profit (or deductible loss). On the balance sheet date,
the deferred income tax asset and liability are measured at the applicable tax rates during the period when
the asset is realized or the liability is settled as expected.
The Company recognizes the deferred income tax asset to the extent that it is probable that the taxable
income will be available against which the deductible temporary differences, deductible losses and tax
credits can be deducted.
35. Lease
(1) Accounting treatment of the leases as lessee
(1) Identification of lease
Lease refers to that the leaser transfers the right to use the asset to the lessee within a certain period to
obtain consideration contracts. On the commencement date of the contract, the Company assesses whether
the contract serves as the lease or includes the lease. If one party to the contract transfers the right to
control one or more identified assets during a certain period in exchange for consideration, such contract is
or includes lease. To determine whether the contract has transferred the right to control the use of the
identified assets in a certain period of time, the Company assesses whether the customer in the contract is
entitled to receive almost all the economic benefits arising from the use of the identified assets during the
use period and is entitled to manage the use of the identified assets during the use period.
If a number of separate leases are contained in one contract, the Company will split the contract and
adopt accounting methods to each lease on an individual basis. If a contract includes both lease and non-
lease components, the Company will separate the lease from the non-lease component before accounting
treatment.
(2) The Company serves as the lessee
1) Lease confirmation
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At the commencement of the lease term, the right-of-use assets and lease liabilities shall be
recognized for the lease by the Company. Refer to Note 4 on "24. Right-of-use assets" and "31. Lease
liabilities" for details on the recognition and measurement of right-of-use assets and lease liabilities.
2) Lease change
Lease change refers to the change in lease scope, lease consideration and lease term beyond the terms
of the original contract, including increasing or terminating the right to use one or more leased assets,
extending or shortening the lease term stipulated in the contract, etc. The effective date of lease change
refers to the date when the Parties reach the agreement on lease change.
When the lease changes and meets the following conditions, the Company will treat it as a separate
lease: 1) the lease change expands the lease scope by adding one or more right-of-use leased assets or
extended leases; 2) the increased consideration is equivalent to the single price of the expanded lease scope
or extension of lease term adjusted according to the contract.
In case where accounting treatment is not made for lease change as a single lease, on the effective
date of lease change, the Company will appropriate the consideration of the changed contract according to
the relevant provisions of the lease criteria and redefine the updated lease term. In addition, the Company
will discount the changed lease payment according to the revised discount rate, so as to remeasure the
lease liabilities. In calculating the present value of the lease payment after the change, the Company uses
the interest rate implicit in lease for the remaining lease term as the discount rate. if the interest rate
implicit in lease for the remaining lease term cannot be determined, the incremental borrowing interest rate
of the lessee on the effective date of lease change shall be used as the discount rate by the Company. With
regard to the impact of the above adjustment of lease liabilities, the Company adopts accounting methods
in the following situations: 1) in the event that the lease scope is narrowed down or the lease term is
shortened as a result of the lease change, the lessee shall reduce the book value of the right-of-use assets,
and the relevant gains or losses from the partial or complete termination of the lease shall be included into
the current loss and profit; 2) for the lease liabilities remeasured due to other lease changes, the lessee shall
adjust the book value of the right-of-use assets accordingly.
3) Short-term leases and leases of low-value assets
For short-term leases with a lease term of no more than 12 months and low-value asset leases at a low
value when individual leased assets are brand new, the Company chooses not to recognize the right-of-use
assets and lease liabilities. Lease payments under short-term leases and leases of low-value assets are
recognized by the Company on a straight-line basis or other systematic and reasonable basis over the lease
term, and included into the cost of the related assets or current profits or losses.
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(2) Accounting treatment of the lease as lessor
On the basis of the contract is evaluated as a lease or including a lease in (1), the Company, as the
lessor, divides the lease into financial lease and operating lease at the commencement of the lease.
A lease that transfers in substance almost all the risks and rewards incident to ownership of a leased
asset is classified as a financial lease by the lessor. A lease other than the financial lease is an operating
lease.
The Company usually classifies a lease as a financial lease if one or more of the following situations
exist: 1) the ownership of the leased asset is transferred to the lessee at the expiration of the lease term; 2)
the lessee has the right to choose to purchase the leased asset; the established purchase price is expected to
be much lower than the fair value of the leased asset when exercising the right of choice, and hence it can
be reasonably determined that the lessee will exercise this right of choice on the inception of lease; 3) the
lease term accounts for a substantial proportion (not less than 75%) of the service life of the leased asset,
notwithstanding that the ownership of the asset will not be transferred; 4) on the inception of lease, the
present value of the lease receipts is almost equal to the fair value of the leased asset (not less than 90% of
the fair value of the leased asset.); and 5) the leased assets are of a specialized nature that only the lessee
can use them without making major modifications. The Company may also classify a lease as a financial
lease if one or more of the following signs exist: 1) if the lessee cancels the lease, the resulting loss to the
lessor shall be borne by the lessee; 2) the gain or loss arising from the fluctuation in the fair value of the
residual value of the asset shall be attributable to the lessee; and 3) the lessee is able to continue the lease
to the next period at a rent much lower than the market level.
1) Accounting treatment of financial lease
Initial measurement
On the commencement date of lease term, the Company recognizes financial lease receivables for
financial lease and derecognizes financial lease assets. Upon initial measurement of financial lease
accounts receivable, the Company takes net investment in lease as entry value of financial lease accounts
receivable.
Net investment in lease is the sum of unsecured residual value and the present value of outstanding
lease receipts discounted on interest rate implicit in lease on the commencement date of the lease term.
Lease receipts refer to the amount that the lessor shall collect from the lessee for transferring the right to
use the leased assets during the lease term, including: 1) the amount of fixed payment and substantial fixed
payment to be paid by the lessee, net of relevant amount of lease incentives if any; 2) variable lease
payments that are based on an index or rate, which shall be determined at the time of initial measurement
based on the index or rate on the commencement date of the lease term; 3) exercise price of call option,
given that the lessee will reasonably exercise such option; 4) amount payable by the lessee for exercising
the option to terminate the lease, if it is indicated during the lease term that the lessee will exercise the
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option to terminate the lease; 5) the residual value of the guarantee provided to the lessor by the lessee, a
party related to the lessee and an independent third party with the financial ability to meet the guarantee
obligation.
Subsequent measurement
The Company calculates and recognizes the interest income in each period of the lease term according
to the fixed periodic rate. Such periodic rate refers to the implicit discount rate used to determine the net
investment in the lease (in case of sublease, the discount rate of the original lease is adopted if the interest
rate implicit in lease of the sublease cannot be determined (adjustments are made based on the initial direct
costs associated with sublease)), or the revised discount rate determined according to the relevant
provisions when the change of the financial lease has not been treated as a separate lease for accounting,
and it is satisfied that the lease will be classified as the financial lease if the change takes effect at the
beginning of the lease.
Accounting treatment of lease change
When a change happens to the financial lease and meets the following conditions, the Company will
treat it as a separate lease: 1) the change expands the lease scope by increasing the right to use one or more
leased assets; 2) the increased consideration is equivalent to the single price for the expanded portion of
lease scope adjusted according to contract circumstances.
If such a change to the financial lease is not accounted for as a separate lease and the condition is
satisfied that if the change becomes effective on the commencement date of the lease, the lease is classified
as an operating lease, the Company will account for it as a new lease from the effective date of the lease
change and regard the net lease investment prior to the effective date of the lease change as the book value
of the leased asset.
2) Accounting treatment of operating leases
Treatment of rent
The Company adopts the straight-line method or other systematic and reasonable methods to
recognize the lease receipts from operating leases as rental income during all periods within the lease term.
Incentive measures provided
If a rent-free period is provided, total rent shall be amortized by adopting the straight-line method or
other systematic and reasonable methods within the lease term not excluding the rent-free period, and the
rental income shall be recognized in the rent-free period. Certain costs incurred by the lessee, if undertaken
by the Company, shall be excluded from total rental income and the balance of rental income after
deducting these costs shall be amortized within the lease term.
Initial direct costs
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The initial direct costs incurred by the Company related to the operating lease shall be capitalized to
the cost of leased underlying asset and shall be included in current profits and losses on the same basis as
recognition of rental income during the lease term.
Depreciation
For fixed assets included in assets under operating leases, accrual depreciation shall base on the
depreciation policy adopted by the Company for similar assets. Other assets under operating leases shall be
amortized in a systematic and reasonable manner.
Variable lease payments
Variable lease payments acquired by the Company in connection with operating leases that are not
included in the lease receipts are recognized in the current profits and losses when actually incurred.
Change of operating lease
In case of changes in the operating lease, the Company will treat it as a new lease as of the effective
date of the change, and the lease advance or accounts receivable related to the lease before the change will
be regarded as the amount received from the new lease.
36. Other significant accounting policies and accounting estimates
When preparing financial statements, the Company’s management shall make estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
income, and expenses. Actual results may differ from these estimates. The Company’s management
continuously evaluates the key assumptions and uncertainties involved in these estimates. The impact of
changes in accounting estimates is recognized in the current period and future periods.
The following accounting estimates and key assumptions present significant risks that could lead to
substantial adjustments to the carrying amounts of assets and liabilities in future periods:
(1) Impairment of financial assets
The impairment of financial assets is assessed using the expected credit loss (ECL) model, which
requires to make significant judgment and estimation. The ECL model takes into account all reasonable
and supportable information, including forward-looking information. When making these judgments and
estimations, the Company considers historical data with factors such as economic policies, macroeconomic
indicators, industry risks, external market environment, technological environment, and changes in
customer circumstances to infer expected changes in the credit risk of debtors.
(2) Inventory impairment provision
The determination basis of the net realizable value of inventory: for inventories directly available for
sale, such as finished goods and materials intended for sale, the net realizable value is determined based on
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the estimated selling price of the inventory minus the estimated selling expenses and related taxes. For
inventories held to fulfill sales contracts or service contracts, the net realizable value is calculated based on
the contract price. If the quantity of inventory held exceeds the quantity ordered under the sales contract,
the net realizable value of the excess inventory is determined based on the general selling price.
Method of provision for inventory impairment: Inventories are valued at the lower of cost or net
realizable value at the end of the period. Based on a comprehensive physical count of inventory at period-
end, a provision for inventory write-down is made for the portion of inventory that is damaged, partially or
completely obsolete, or whose selling price is lower than its cost, making the cost unrecoverable.
If the factors that caused the inventory value to be written down in previous years no longer exist, the
amount written down should be reversed. The reversal amount is limited to the amount originally written
down and is recognized in the current period’s profit or loss.
(3) Accounting estimates for goodwill impairment provision
The Company conducts an annual impairment test for goodwill. The recoverable amount of the asset
group or combination of asset groups that include goodwill is determined based on the present value of the
expected future cash flows, which requires the use of accounting estimates.
If management revises the gross margin used in calculating the future cash flows of the asset group or
group of asset groups and the revised gross margin is lower than the current one, the Company will need to
increase the impairment provision for goodwill.
If the management revises the pre-tax discount rate applied to discounted cash flows, and the revised
pre-tax discount rate is higher than the current discount rate, the Company needs to make provision for
impairment of goodwill.
If the actual gross profit margin or pre-tax discount rate is higher or lower than the management's
estimate, the Company cannot reverse the previously recognized impairment loss of goodwill.
(4) Accounting estimates for impairment provisions of fixed assets
The Company conducts impairment tests on fixed assets such as buildings and machinery that show
signs of impairment on the balance sheet date. The recoverable amount of fixed assets is the higher of the
present value of their estimated future cash flows or the net amount of the asset's fair value minus disposal
costs, which requires the use of accounting estimates.
If management revises the gross margin used in calculating the future cash flows of the asset group or
group of asset groups and the revised gross margin is lower than the current one, the Company will need to
increase the impairment provision for fixed assets.
If the management revises the pre-tax discount rate applied to discounted cash flows, and the revised
pre-tax discount rate is higher than the current discount rate, the Company needs to make provision for
impairment of fixed assets.
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If the actual gross profit margin or pre-tax discount rate is higher or lower than the management's
estimate, the Company cannot reverse the previously recognized impairment loss of fixed assets.
(5) Accounting estimate for recognition of deferred income tax assets
The estimation of deferred income tax assets requires an estimation of the taxable income for each
future year and the applicable tax rate. 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
timing of the reversal of temporary differences can also affect income tax expenses (benefits) and the
balance of deferred taxes. Changes in these estimates may lead to significant adjustments to deferred
income tax assets.
(6) The service life of fixed assets and intangible assets
The Company reviews the estimated service lives of fixed assets and intangible assets at least at the
end of each fiscal year. The expected service life is determined by the management based on the historical
experience of similar assets, reference to the estimates commonly used in the same industry, and the
expected technological updates. When there are significant changes in the previous estimates, the
depreciation and amortization expenses for future periods are adjusted accordingly.
37. Significant accounting policy and accounting estimate changes
(1) Significant accounting policy changes
□Applicable Not applicable
(2) Significant accounting estimate changes
□Applicable Not applicable
(3) Relevant financial statement items at the beginning of 2024 when the adjustments stipulated in
the new accounting standards apply for the first time
□Applicable Not applicable
38. Others
1. Right-of-use assets
The right-of-use asset refers to the right of the Company to use the leased assets as a lessee during the
lease term.
(1) Initial measurement
On the commencement date of the lease term, the Company carries out initial measurement to the use-
of-right asset. The cost comprises the following four items: 1) initial measurement amount of lease
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liabilities; 2) the amount of lease payment made on or before commencement date of lease term, net of
relevant amount of used lease incentives (if any); 3) the initial direct cost incurred (i.e., the incremental
cost incurred by reaching the lease agreement); 4) costs expected to be incurred to disassemble and remove
the leased assets, restore the site where the leased assets are located or restore the leased assets to the
conditions as agreed under the terms of the lease, excluding costs incurred to produce the inventory.
(2) Subsequent measurement
On the commencement date of the lease term, the Company carries out subsequent measurement to
the right-of-use assets in the cost mode, that is, measuring the right-of-use assets by deducting the accrued
depreciation amount and accrued impairment loss from the cost. Where the Company remeasures the lease
liabilities according to relevant provisions of the lease criterion, the book value of the use-of-right asset
shall be adjusted correspondingly.
Depreciation of right-of-use assets
On the commencement date of the lease term, the provision for depreciation shall be made by the
Company to the right-of-use assets. Generally, the depreciation amount of the use-of-right assets is accrued
from the month when the lease term starts. The accrued depreciation amount shall be recognized as the
cost of relevant assets or current profit or loss according to the purpose of the right-of-use assets.
When determining the depreciation method of right-of-use asset, the Company shall make decisions
according to the expected consumption method of the economic benefits related to the right-of-use asset
and accrue depreciation to the right-of-use asset with the linear method.
When determining the depreciation years of the right-of-use asset, the Company shall follow the
principles below: if the Company can reasonably determine that the ownership of the leased asset is
acquired at the expiration of the lease term, depreciation shall be accrued within the remaining service life
of the leased asset. Where it is not reasonably certain that the ownership of the lease assets can be obtained
upon expiry of lease term, the lease assets shall be depreciated over the shorter of the lease term and the
remaining service life of the lease assets.
Impairment of right-of-use assets
In case of impairment of use-of-right asset, the Company shall make subsequent depreciation as per
the book value of use-of-right asset after the impairment loss is deducted.
2. Goodwill
Goodwill refers to the excess of the cost of an equity investment or the cost of a business merger not
under common control over the fair value of the identifiable net assets acquired from the investee or the
acquiree as of the acquisition date or purchase date.
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Goodwill related to subsidiaries is separately presented in the consolidated financial statements, while
goodwill related to associates and joint ventures is included in the carrying amount of long-term equity
investments.
For goodwill arising from business mergers, the Company allocates its carrying amount to the
relevant asset groups in a reasonable manner from the acquisition date. If it is difficult to allocate goodwill
to the relevant asset groups, it is allocated to the relevant group of asset groups. When conducting
impairment tests on asset groups or combinations of asset groups that include goodwill, if there are
indications of impairment related to the asset group or combination of asset groups with goodwill, firstly
conducting impairment tests on the asset group or combination of asset groups without goodwill,
calculating the recoverable amount, and comparing it with the carrying amount to determine the
corresponding impairment loss. Then, conducting impairment tests on the asset group or combination of
asset groups with goodwill, comparing the carrying amount with the recoverable amount, and if the
recoverable amount is lower than the carrying amount, the impairment loss amount is firstly offset against
the carrying amount of goodwill in the asset group or combination of asset groups, and then proportionally
offset against the carrying amount of other assets in the asset group or combination of asset groups,
excluding goodwill, based on the proportion of their carrying amounts.
3. Lease liabilities
(1) Initial measurement
The Company shall initially measure the lease liabilities according to the present value of the lease
payment unpaid on the commencement date of the lease term.
1) Lease payment
The lease payment refers to the payment made by the Company to the leaser as for the right of use the
leased assets during the lease term, including: 1) fixed payment and practical fixed payment, with relevant
lease incentive (if any) deducted; 2) variable lease payments that are based on an index or rate, which shall
be determined at the time of initial measurement based on the index or rate on the commencement date of
the lease term; 3) the exercise price of a purchase option if the Company is reasonably certain to exercise
that option; 4) the amount payable for exercising the option to terminate the lease if the Company intends
to exercise the option to terminate the lease during the lease term; 5)expected payable amount based on
secured residual value provided by the Company.
2) Discount rate
In calculating the present value of the lease payments, the Company adopts the interest rate embedded
in the lease as the discount rate. The rate is the interest rate that equates the sum of present value of the
lessor's lease receipts and the present value of the unsecured residual value to the sum of the fair value of
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the leased asset and the lessor's initial direct costs. If the Company is unable to determine the interest rate
embedded in the lease, it will adopt the incremental borrowing rate as the discount rate. The incremental
loan interest rate is defined as the interest rate that the Company would have to pay to borrow, for a term
similar to the duration of the lease and with similar security, the funds necessary to obtain an asset of
similar value to the asset by right of use in a similar economic environment. The interest rate is related to
the following matters: 1) the Company's own situation, including the debt repayment ability and credit
status of the Group; 2) the term of the "loan", i.e. the lease term; 3) the amount of "borrowed" funds, i.e.
the amount of lease liabilities; 4) the "mortgage conditions", i.e. the nature and quality of the underlying
assets; 5) the economic environment, including the jurisdiction where the lessee is located, the valuation
currency, and the contract signing time. The incremental borrowing rate is determined by considering the
above factors and adjusting the bank loan interest rate which is as a basis.
(2) Subsequent measurement
When the lease term commences, the Company shall make subsequent measurement for the lease
liabilities on the basis of principles below: 1) the carrying account of increased lease liabilities when the
interests of lease liabilities are recognized; 2) the carrying account of decreased lease liabilities when the
lease payment is made; 3) the book value of remeasured lease liabilities when the lease payment is
changed due to revaluation, lease change or other reasons.
The interest expenses of lease liabilities in each period of the lease term are calculated in accordance
with the fixed periodic interest rate, and are included in the current profit or loss, unless capitalization is
required. The periodic interest rate refers to the discount rate taken by the Company for initial
measurement or the revised discount rate taken by the Company when it is necessary to remeasure the
lease liabilities as per the revised discount rate due to lease payment change or lease change.
(3) Re-measurement
After the commencement date of the lease term, the Company remeasures the lease liabilities at the
present value of the revised lease payments and adjusts the book value of the right-of-use asset accordingly,
if any of the following occurs. If the book value of the right-to-use assets has been reduced to zero, but the
lease liabilities still need to be further reduced, the Company shall include the remaining amount in the
profits and losses of the current period. 1) Substantial fixed payment amount changes (in this case, the
original discount rate is used for discounting); 2) changes in the estimated payable amount of the secured
residual value (in this case, the original discount rate is used for discounting); 3) changes in the index or
ratio used to determine lease payments (in this case, the revised discount rate is used for discounting); 4)
changes in the evaluation results of purchase option (in this case, the revised discount rate is used for
discounting); 5) changes in the evaluation results or actual exercise of renewal option or option to
terminate the lease (in this case, the revised discount rate is used for discounting).
4. Termination of operation
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Termination of operation refers to a separately identifiable component of the Company that meets any
of the following criteria and has either been disposed of or classified as held for sale: 1) the component
represents a separate major line of business or a separate geographical area of operations; 2) the
component is part of a single coordinated plan to dispose of a separate major line of business or a separate
geographical area of operations; 3) the component is a subsidiary acquired exclusively with a view to
resale.
In the income statement, the Company has added the items "net profit from continuing operations"
and "net profit from discontinued operations" under the "net profit" item in the income statement, to reflect
the post-tax amounts of continuing-operations-related gains and losses and termination-of-operation-
related gains and losses, respectively. Termination-of-operation-related gains and losses shall be presented
as "gains and losses from termination of operation", and the termination of operation gains and losses
should be presented for the entire reporting period, not only for the reporting period following the
recognition as termination of operation.
VI. Taxation
1. Main tax categories and tax rates
Category Tax base Tax rate
Added-value tax Income from sales of goods 13%
Income from provision of technical
Added-value tax 6%
services
Added-value tax Rental income 5%
City maintenance and construction tax Turnover tax payable 7%
Corporate income tax Taxable income 15%, 25%, 20%
Education surcharge Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
House tax 70% of the original value of the house 1.2%
House tax Rental income 12%
Land use tax Total land area RMB 5-10/m2
Disclosure of taxpayers with different corporate income tax rates
Name of taxpayer Income tax rate
Hangzhou Robam Appliances Co., Ltd. 15%
Shengzhou Kinde Intelligent Kitchen Appliance Co., Ltd. 15%
Zhejiang Cookingfuture Technology Co., Ltd. 15%
Beijing Robam Appliances Sales Co., Ltd. 25%
Shanghai Robam Appliances Sales Co., Ltd. 25%
Hangzhou MingQi Electric Co., Ltd. 25%
De Dietrich Household Appliances Trading (Shanghai) Co.,
25%
Ltd.
Hangzhou Robam Fuchuang Investment Management Co., Ltd. 20%
Hangzhou Jinhe Electric Appliances Co., Ltd. 25%
Robam Appliances Holding (HK) Co., Ltd.*1 Two-tiered tax system
Robam International (HK) Trading Co., Ltd.*1 Two-tiered tax system
Chengdu Robam Innovation Technology Co., Ltd. 20%
Robam Appliances U.S. Holding Co., Ltd.*2 State tax, federal tax
Robam Appliances Los Angeles Trade Co., Ltd.*2 State tax, federal tax
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*1: The Company's subsidiaries, Robam Appliances Holding (HK) Co., Ltd. and Robam International (HK) Trading Co., Ltd., are
subject to the Hong Kong Profits Tax regime. Under the two-tiered tax system, taxable profits up to HKD 2,000,000 are subject to
a tax rate of 8.25%, while the portion of taxable profits exceeding HKD 2,000,000 is taxed at a rate of 16.50%.
*2: Federal tax: at a uniform rate of 21%; State tax: levied based on the tax rate required by the tax laws of the state where the
entity is registered.
2. Preferential tax policy
Preferential income tax policy
The Company obtained the Certificate of High-Tech Enterprise (Certificate No.: GR202333003384)
jointly issued by Department of Science and Technology of Zhejiang Province, Zhejiang Provincial
Department of Finance, Zhejiang Provincial Tax Service, State Taxation Administration, on December 8,
2023. The certificate is valid for 3 years. According to the relevant provisions, after being identified as a
high-tech enterprise, the Company will enjoy the relevant preferential policies of the state on high-tech
enterprises for three consecutive years (i.e., the Company is entitled to the preferential income tax policy
from January 01, 2023 to December 31, 2025), and the corporate income tax shall be levied at the rate of
15%.
The subsidiary of the Company, Shengzhou Kinde Intelligent Kitchen Appliances Co., Ltd.
(hereinafter referred to as Shengzhou Kinde), obtained the Certificate of High-tech Enterprise (Certificate
No.: GR202233010421) jointly issued by Department of Science and Technology of Zhejiang Province,
Zhejiang Provincial Department of Finance, and Zhejiang Provincial Tax Service, State Taxation
Administration on December 24, 2022. After the recognition, it will enjoy the preferential tax policy of the
state on high-tech enterprises for three consecutive years (i.e., it is entitled to the preferential income tax
policy from January 1, 2022 to December 31, 2024), and its corporate income tax shall be levied at the tax
rate of 15%.
According to the Announcement No. 12 [2023] of the Ministry of Finance and the State Taxation
Administration, Announcement on the Relevant Tax and Fee Policies for Further Supporting the
Development of Micro and Small Enterprises and Individual Industrial and Commercial Households,
Hangzhou Robam Fuchuang Investment Management Co., Ltd. and Chengdu Robam Innovation
Technology Co., Ltd., subsidiaries of the Company, as small and micro enterprises, are allowed to
calculate their taxable income at a reduced rate of 25% of the regular amount, and pay corporate income
tax at a rate of 20%. This policy will be in effect until December 31, 2027.
Preferential VAT policy
According to the Notice on Value-Added Tax Policies for Software Products Issued by the Ministry
of Finance and the State Taxation Administration (CS [2011] No. 100), the Company's sales of embedded
software products are eligible for immediate VAT refund after collection.
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According to the Announcement No. 43 of 2023 issued by the Ministry of Finance and the State
Administration of Taxation, Notice of the Additional Value-Added Tax Credit Policy for Advanced
Manufacturing Enterprises, the Company will enjoy the policy of incremental deduction of 5% of the
payable value-added tax amount by advanced manufacturing enterprises based on the deductible input tax
amount for the period from January 1, 2023 to December 31, 2027.
VII. Notes to items in the consolidated financial statements
1. Cash and cash equivalents
In RMB
Item Ending balance Beginning balance
Cash in hand 232,660.84 62,267.64
Deposit in bank 1,015,800,859.35 1,877,703,911.46
Other cash and cash equivalents 131,804,211.57 107,284,566.01
Total 1,147,837,731.76 1,985,050,745.11
Including: total amount of funds
7,987,864.36 3,588,900.00
deposited overseas
Other description
Note: The other cash and cash equivalents are RMB 131,804,211.57, including the L/G margin of
RMB 89,105,875.26, the bill acceptance margin of RMB 41,826,555.86 and the ETC margin of RMB
16,000.00, the use of which are limited; and the Alipay and WeChat wallet balance is RMB 855,780.45,
which can be withdrawn without any limit at any time.
Use of restricted cash and cash equivalents
Item Ending balance Beginning balance
L/G margin 89,105,875.26 83,153,343.90
Bill acceptance margin 41,826,555.86 23,717,043.12
ETC security deposits 16,000.00 14,000.00
Total 130,948,431.12 106,884,387.02
2. Financial assets held for trading
In RMB
Item Ending balance Beginning balance
Financial assets measured at fair value
with changes included into current profit 2,551,000,029.50 2,730,000,000.00
or loss
Including:
financial products 2,551,000,029.50 2,730,000,000.00
Total 2,551,000,029.50 2,730,000,000.00
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3.Notes receivable
(1) Classified presentation of notes receivable
In RMB
Item Ending balance Beginning balance
Banker’s acceptance 365,685,088.75 690,184,154.22
Trade acceptance 3,113,544.92 6,100,777.42
Total 368,798,633.67 696,284,931.64
(2) Classification of disclosure according to the bad debt provision method
In RMB
Ending balance Beginning balance
Bad debt
Book balance Book balance Bad debt provision
provision
Type Perce Book Perce Book
ntage value ntage value
Percenta Percenta
Amount Amount of Amount Amount of
ge (%) ge (%)
provis provis
ion ion
Including:
Notes receivable
368,962,50 163,870 0.04 368,798, 696,606,02 321,093. 696,284,
with a collective bad 100.00% 100.00% 0.05%
4.45 .78 % 633.67 5.20 56 931.64
debt
Including:
365,685,08 365,685, 690,184,15 690,184,
Banker’s acceptance 99.11% 99.08%
8.75 088.75 4.22 154.22
3,277,415.7 163,870 5.00 3,113,54 6,421,870. 321,093. 6,100,77
Trade acceptance 0.89% 0.92% 5.00%
0 .78 % 4.92 98 56 7.42
368,962,50 163,870 0.04 368,798, 696,606,02 321,093. 696,284,
Total 100.00% 100.00% 0.05%
4.45 .78 % 633.67 5.20 56 931.64
Collective bad debt provision:
In RMB
Ending balance
Name
Book balance Bad debt provision Percentage of provision
Banker’s acceptances
365,685,088.75
combined
Trade acceptances combined 3,277,415.70 163,870.78 5.00%
Total 368,962,504.45 163,870.78
If provision for bad debts of notes receivable is made according to the general model of expected credit loss:
□Applicable Not applicable
(3) Bad debt provision, and its recovery or reversal in the current period
Provision for bad debts in the current period:
In RMB
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Amount of change in the current period
Beginning
Type Recovery or Ending balance
balance Provision Write-off Others
reversal
Banker’s
acceptance
Trade
321,093.56 -157,222.78 163,870.78
acceptance
Total 321,093.56 -157,222.78 163,870.78
Significant recoveries or reversals of provisions for bad debts during the reporting period:
□Applicable Not applicable
(4) Notes receivable pledged by the Company at the end of the period
There were no notes receivable that had been pledged at the end of the period.
(5) Notes receivable that has been endorsed or discounted by the Company and not due on the balance
sheet date at the end of the period
There were no notes receivable that had been endorsed or discounted by the Company and not due on the
balance sheet date at the end of the period.
(6) Notes receivable actually written off in the current period
Notes receivable not written off during the period
4. Accounts receivable
(1) Disclosure by aging of accounts
In RMB
Initial book balance at the beginning of
Age Book balance at the end of the period
the period
Within 1 year (including 1 year) 1,462,399,608.56 1,557,020,494.66
1-2 years 532,439,823.04 541,557,234.61
2-3 years 776,505,528.84 886,738,162.41
More than 3 years 313,142,753.37 48,881,334.70
3-4 years 297,700,654.57 35,197,495.87
4-5 years 6,255,952.06 6,690,817.20
More than 5 years 9,186,146.74 6,993,021.63
Total 3,084,487,713.81 3,034,197,226.38
(2) Classification of disclosure according to the bad debt provision method
In RMB
Ending balance Beginning balance
Type
Book balance Bad debt Book Book balance Bad debt provision Book
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provision value value
Perce Perce
ntage ntage
Percent Amoun Percenta
Amount of Amount Amount of
age (%) t ge (%)
provis provis
ion ion
Accounts receivable 1,115,6
1,630,116,0 68.44 514,493,6 1,645,394, 1,131,734, 68.78 513,660,
with individual bad 52.85% 22,444. 54.23%
79.65 % 35.30 906.63 880.57 % 026.06
debt provisions 35
Including:
Accounts receivable 105,73
1,454,371,6 7.27 1,348,637 1,388,802, 92,446,749 1,296,35
with a collective bad 47.15% 4,341.5 45.77% 6.66%
34.16 % ,292.59 319.75 .48 5,570.27
debt provision 7
Including:
105,73
1,454,371,6 7.27 1,348,637 1,388,802, 92,446,749 1,296,35
Aging combination 47.15% 4,341.5 45.77% 6.66%
34.16 % ,292.59 319.75 .48 5,570.27
7
1,221,3
3,084,487,7 100.00 39.60 1,863,130 3,034,197, 100.00 1,224,181, 40.35 1,810,01
Total 56,785.
13.81 % % ,927.89 226.38 % 630.05 % 5,596.33
92
Individual bad debt provision:
In RMB
Beginning balance Ending balance
Name Percentage
Reasons for
Book balance Bad debt provision Book balance Bad debt provision of
provision
provision
Expected to be
Unit 1 660,039,726.23 660,039,726.23 658,945,936.78 658,945,936.78 100.00%
difficult to recover
Expected to be
Unit 2 388,093,418.16 116,428,025.44 355,627,952.88 106,688,385.87 30.00% difficult to fully
recover
Expected to be
Unit 3 201,626,455.66 86,259,958.01 241,053,412.05 105,439,212.29 43.74% difficult to fully
recover
Expected to be
Unit 4 103,644,563.87 62,549,255.29 95,720,766.37 61,418,433.11 64.16% difficult to fully
recover
Expected to be
Unit 5 78,105,963.23 78,105,963.23 78,105,963.23 78,105,963.23 100.00%
difficult to recover
Expected to be
Unit 6 29,833,027.36 20,883,119.15 27,931,724.10 14,952,948.85 53.53% difficult to fully
recover
Expected to be
Unit 7 28,796,628.81 12,808,177.77 28,769,213.01 10,387,277.95 36.11% difficult to fully
recover
Expected to be
Unit 8 25,826,189.64 17,748,183.70 23,326,159.14 14,689,394.40 62.97% difficult to fully
recover
Expected to be
Unit 9 22,983,529.61 15,004,193.26 21,737,772.41 10,699,859.15 49.22% difficult to fully
recover
Expected to be
Unit 10 15,100,611.29 8,471,506.90 15,028,917.55 8,113,002.52 53.98%
difficult to fully
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recover
Expected to be
Unit 11 13,643,117.43 7,265,607.25 13,818,085.83 7,388,085.13 53.47% difficult to fully
recover
Expected to be
Unit 12 11,403,482.66 6,897,017.86 9,080,624.77 5,372,708.62 59.17% difficult to fully
recover
Expected to be
Unit 13 9,391,156.30 4,698,425.06 8,175,161.48 3,847,228.69 47.06% difficult to fully
recover
Expected to be
Unit 14 8,175,007.62 3,440,071.29 8,175,007.62 3,440,071.29 42.08% difficult to fully
recover
Expected to be
Unit 15 7,305,800.75 5,114,060.53 7,151,711.18 2,896,821.17 40.51% difficult to fully
recover
Expected to be
Unit 16 3,921,670.93 2,745,169.65 5,133,382.93 3,593,368.05 70.00% difficult to fully
recover
Expected to be
Unit 17 3,616,362.19 2,531,453.53 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 3,584,790.07 1,672,115.95 46.64% difficult to fully
recover
Expected to be
Unit 19 3,310,609.08 1,715,551.82 3,519,010.46 1,829,963.77 52.00% difficult to fully
recover
Expected to be
Unit 20 3,056,422.32 1,145,907.85 1,746,554.15 1,222,587.91 70.00% difficult to fully
recover
Expected to be
Other
24,203,909.70 16,328,666.20 19,867,571.45 12,387,626.09 62.35% difficult to fully
Subtotal
recover
Total 1,645,394,906.63 1,131,734,880.57 1,630,116,079.65 1,115,622,444.35
Collective bad debt provision:
In RMB
Ending balance
Name
Book balance Bad debt provision Percentage of provision
With 1 year 1,200,759,895.28 60,037,995.28 5.00%
1-2 years 167,397,237.66 16,739,723.77 10.00%
2-3 years 58,742,354.68 11,748,470.94 20.00%
3-4 years 19,180,194.20 9,590,097.10 50.00%
4-5 3,369,489.28 2,695,591.42 80.00%
More than 5 years 4,922,463.06 4,922,463.06 100.00%
Total 1,454,371,634.16 105,734,341.57
If provision for bad debts of accounts receivable is made according to the general model of expected credit loss:
□Applicable Not applicable
(3) Bad debt provision, and its recovery or reversal in the current period
Provision for bad debts in the current period:
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In RMB
Amount of change in the current period
Type Beginning balance Recovery or Othe Ending balance
Provision Write-off
reversal rs
Bad debt reserves
for accounts 1,224,181,630.05 75,957,015.33 76,760,426.90 2,021,432.56 1,221,356,785.92
receivable
Total 1,224,181,630.05 75,957,015.33 76,760,426.90 2,021,432.56 1,221,356,785.92
Significant recoveries or reversals of provisions for bad debts during the reporting period:
In RMB
Basis and rationality of
Amount of recovery or determining the original
Unit Reason for reversal Recovery method
reversal provision ratio for bad
debts
Unit 1 35,932,304.06 Bank transfers, offsets
Bank transfers, house
Unit 2 12,943,912.34
mortgage
Bank transfers, house
Unit 3 8,367,635.05
mortgage
Bank transfers, house
Unit 4 2,911,247.95
mortgage
Bank transfers, house
Unit 5 2,884,489.50
mortgage
Bank transfers, house
Unit 6 2,502,618.17
mortgage
Bank transfers, house
Unit 7 2,131,401.24
mortgage
Bank transfers, house
Unit 8 1,982,739.60
mortgage
Bank transfers, house
Unit 9 1,032,855.13
mortgage
Bank transfers, house
Unit 10 912,030.00
mortgage
Bank transfers, house
Unit 11 881,524.45
mortgage
Bank transfers, house
Unit 12 853,100.00
mortgage
Bank transfers, house
Unit 13 825,000.00
mortgage
Bank transfers, house
Unit 14 675,000.00
mortgage
Bank transfers, house
Unit 15 673,076.70
mortgage
Bank transfers, house
Unit 16 552,430.80
mortgage
Bank transfers, house
Others 699,061.91
mortgage
Total 76,760,426.90
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(4) Accounts receivable actually written off in the current period
In RMB
Item Amounts written off
Accounts receivable actually written off 2,021,432.56
Important accounts receivable write-offs:
In RMB
Whether the
Write-off
Nature of accounts Amounts written Reason for write- amount arises from
Unit procedures
receivable off offs an associated
performed
transaction
Expected to be Management
Unit 1 Payment for goods 881,524.45 No
irrecoverable approval
Expected to be Management
Unit 2 Payment for goods 266,206.00 No
irrecoverable approval
Expected to be Management
Unit 3 Payment for goods 260,915.00 No
irrecoverable approval
Expected to be Management
Unit 4 Payment for goods 116,277.00 No
irrecoverable approval
Expected to be Management
Unit 5 Payment for goods 85,625.00 No
irrecoverable approval
Expected to be Management
Other Subtotal Payment for goods 410,885.11 No
irrecoverable approval
Total 2,021,432.56
(4) Top five debtors with the largest ending balances of accounts receivable and contract assets
In RMB
Proportion in the Ending balance of
total ending provision for bad
Ending balance of
Ending balance of Ending balance of balance of debts on accounts
Unit accounts receivable
accounts receivable contract assets accounts receivable and
and contract assets
receivable and impairment of
contract assets contract assets
Unit 1 658,945,936.78 658,945,936.78 21.36% 658,945,936.78
Unit 2 369,680,570.71 369,680,570.71 11.99% 18,820,983.95
Unit 3 355,627,952.88 355,627,952.88 11.53% 106,688,385.87
Unit 4 241,053,412.05 241,053,412.05 7.82% 105,439,212.29
Unit 5 95,720,766.37 95,720,766.37 3.10% 61,418,433.11
Total 1,721,028,638.79 1,721,028,638.79 55.80% 951,312,952.00
5. Other receivables
In RMB
Item Ending balance Beginning balance
Other receivables 86,770,440.47 53,368,667.34
Total 86,770,440.47 53,368,667.34
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(1) Other accounts receivable
1) Classification of other accounts receivable by nature
In RMB
Initial book balance at the beginning of
Nature of receivable Book balance at the end of the period
the period
Collections by a third party 53,190,022.42 26,915,796.30
Security/guarantee deposits 29,988,281.52 35,077,788.86
Withholdings 7,399,959.90 4,274,188.53
Cash reserve 5,767,293.12 2,365,967.91
Others 3,641,166.66 330,098.34
Proxy holding of properties exchanged
2,094,110.00 2,094,110.00
for construction services
Total 102,080,833.62 71,057,949.94
2) Disclosure by aging of accounts
In RMB
Initial book balance at the beginning of
Age Book balance at the end of the period
the period
Within 1 year (including 1 year) 78,596,608.94 42,909,446.18
1-2 years 5,385,201.70 6,665,944.46
2-3 years 6,660,645.01 6,322,210.28
More than 3 years 11,438,377.97 15,160,349.02
3-4 years 4,278,724.05 3,591,477.42
4-5 years 2,140,747.12 2,146,271.80
More than 5 years 5,018,906.80 9,422,599.80
Total 102,080,833.62 71,057,949.94
3) Classification of disclosure according to the bad debt provision method
Applicable □Not applicable
In RMB
Ending balance Beginning balance
Book balance Bad debt provision Book balance Bad debt provision
Type Book Book
Percentag Percent Percentag
Percent value value
Amount Amount e of Amount age Amount e of
age (%)
provision (%) provision
Provision for
2,242,31 881,138.5 1,361,171. 2,362,320 945,141.5 1,417,17
bad debts by 2.20% 39.30% 3.32% 40.01%
0.00 0 50 .00 0 8.50
individual item
Including:
Collective bad 99,838,5 14,429,25 85,409,26 68,695,62 96.68 16,744,14 51,951,4
97.80% 14.45% 24.37%
debt provision 23.62 4.65 8.97 9.94 % 1.10 88.84
Including:
Aging 99,838,5 14,429,25 85,409,26 68,695,62 96.68 16,744,14 51,951,4
97.80% 14.45% 24.37%
combination 23.62 4.65 8.97 9.94 % 1.10 88.84
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102,080, 100.00 15,310,39 86,770,44 71,057,94 100.00 17,689,28 53,368,6
Total 15.00% 24.89%
833.62 % 3.15 0.47 9.94 % 2.60 67.34
Individual bad debt provision:
In RMB
Beginning balance Ending balance
Name Percentage
Bad debt Bad debt Reasons for
Book balance Book balance of
provision provision provision
provision
Expected
Unit 1 800,000.00 280,000.00 800,000.00 280,000.00 35.00%
impairment
657,783.00 230,224.05 Expected
Unit 2 657,783.00 230,224.05 35.00%
impairment
636,327.00 222,714.45 Expected
Unit 3 636,327.00 222,714.45 35.00%
impairment
103,000.00 103,000.00 Expected to be
Unit 4 103,000.00 103,000.00 100.00%
difficult to recover
45,200.00 45,200.00 Expected to be
Unit 5 45,200.00 45,200.00 100.00%
difficult to recover
50,010.00 15,003.00 Expected to be
Unit 6 difficult to fully
recover
30,000.00 9,000.00 Expected to be
Unit 7 difficult to fully
recover
20,000.00 20,000.00 Expected to be
Unit 8
difficult to recover
10,000.00 10,000.00 Expected to be
Unit 9
difficult to recover
10,000.00 10,000.00 Expected to be
Unit 10
difficult to recover
Total 2,362,320.00 945,141.50 2,242,310.00 881,138.50
Collective bad debt provision:
In RMB
Ending balance
Name
Book balance Bad debt provision Percentage of provision
Less than 1 year (including 1
76,646,218.80 3,832,310.94 5.00%
year)
1-2 years 5,241,481.84 524,148.18 10.00%
2-3 years 6,650,645.01 1,330,129.00 20.00%
3-4 years 4,258,724.05 2,129,362.03 50.00%
4-5 years 2,140,747.12 1,712,597.70 80.00%
More than 5 years 4,900,706.80 4,900,706.80 100.00%
Total 99,838,523.62 14,429,254.65
Provision for bad debts according to the general model of expected credit loss:
In RMB
Phase I Phase II Phase III
Expected credit loss over
Bad debt provision Expected credit loss over Total
Expected credit loss the entire duration
the entire duration (with
over the next 12 months (without credit
credit impairment)
impairment)
118
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Balance as of January
16,744,141.10 756,941.50 188,200.00 17,689,282.60
01, 2024
Balance on January 01,
2024 in the current
period
Provision in the current
-2,314,886.45 -24,003.00 -40,000.00 -2,378,889.45
period
Balance as of June 30,
14,429,254.65 732,938.50 148,200.00 15,310,393.15
2024
Changes in the book balance with significant change in amount of the loss provision in the current period
□Applicable Not applicable
4) Bad debt provision, and its recovery or reversal in the current period
Provision for bad debts in the current period:
In RMB
Amount of change in the current period
Beginning
Type Recovery or Ending balance
balance Provision Write-offs Others
reversal
Bad debt
provision for 17,689,282.60 -2,378,889.45 15,310,393.15
other receivables
Total 17,689,282.60 -2,378,889.45 15,310,393.15
5) Other receivables actually written off in the current period
There were no write-offs of other receivables in the current period.
6) Top five debtors with the largest ending balances of other accounts receivable
In RMB
Proportion in the
total ending balance Ending balance of
Unit Nature of receivable Ending balance Age
of other accounts bad debt provision
receivable
Collections by a third Less than 1
Unit 1 12,986,415.91 12.72% 649,320.80
party year
Collections by a third Less than 1
Unit 2 6,932,252.09 6.79% 346,612.60
party year
Collections by a third
Unit 3 3,814,069.40 0-3 years 3.74% 205,506.54
party/deposits
Less than 1
Unit 4 Withholdings 3,400,882.31 3.33% 170,044.12
year
Collections by a third Less than 1
Unit 5 2,356,041.47 2.31% 117,802.07
party year
Total 29,489,661.18 28.89% 1,489,286.13
119
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6. Advance payments
(1) Advance payments presented by age
In RMB
Ending balance Beginning balance
Age
Amount Percentage (%) Amount Percentage (%)
With 1 year 175,307,498.53 94.42% 136,637,538.73 97.80%
1-2 years 9,650,179.69 5.20% 3,055,581.83 2.19%
2-3 years 707,592.39 0.38% 15,823.01 0.01%
More than 3 years 16,943.31 0.01% 4,528.01
Total 185,682,213.92 139,713,471.58
(2) Top five payers with the largest ending balances of advance payments
The ending balances of advance payments of the top five payers by the end of the current period
totaled RMB 92,636,335.39, accounting for 49.89% of the total.
7.Inventory
(1) Classification of inventories
In RMB
Ending balance Beginning balance
Provision for Provision for
obsolete obsolete
Item inventory or for inventory or for
Book balance Book value Book balance Book value
impairment of the impairment of the
cost of contract cost of contract
performance performance
Raw materials 69,012,023.09 69,012,023.09 81,308,915.01 81,308,915.01
Products in
98,458,434.24 98,458,434.24 98,820,705.86 98,820,705.86
process
Merchandise
462,714,144.50 33,542,900.56 429,171,243.94 434,195,084.18 33,339,505.13 400,855,579.05
inventory
Contract
performance 36,902,912.37 36,902,912.37 35,371,916.75 35,371,916.75
costs
Goods shipped in
761,454,013.19 30,351,019.85 731,102,993.34 891,904,804.32 30,351,019.85 861,553,784.47
transit
Low-cost
consumables and 34,422,631.68 34,422,631.68 46,363,819.10 46,363,819.10
packing materials
Total 1,462,964,159.07 63,893,920.41 1,399,070,238.66 1,587,965,245.22 63,690,524.98 1,524,274,720.24
120
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(2) Provision for obsolete inventory or for impairment of the cost of contract performance
In RMB
Increased amount in the current Decreased amount in the current
Beginning period period
Item Ending balance
balance Reversals or
Provision Others Others
write-off
Merchandise
33,339,505.13 203,395.43 33,542,900.56
inventory
Goods shipped
30,351,019.85 30,351,019.85
in transit
Total 63,690,524.98 203,395.43 63,893,920.41
8.Other current assets
In RMB
Item Ending balance Beginning balance
Fixed-term deposit within 1 year 1,444,141,200.00 2,563,744,300.00
Accrued interest on fixed deposits 101,238,591.00 81,146,657.65
Prepaid taxes 2,586,213.00 2,917,663.05
Input tax to be deducted 642,072.94
Total 1,548,608,076.94 2,647,808,620.70
9. Other equity instrument investments
In RMB
Gains Reason for
Gains Loss recogniz being
recognize recognize ed in designated to
Recogniz
d in other d in other other Loss recognized be measured
ed
comprehe compreh compreh in other by fair value
Beginning dividends
Project nsive ensive ensive comprehensive Ending balance and the
balance income
income income income income at the change being
in the
for the for the at the end of the period recorded in
period
current current end of other
period period the comprehensiv
period e income
Suzhou
Industrial Park
Ruican
Investment 100,000,000.00
Enterprise
(Limited
Partnership)
Shanghai
MXCHIP
Information 2,116,023.22 17,832,510.78 2,116,023.22
Technology Co.,
Ltd.
Total 2,116,023.22 117,832,510.78 2,116,023.22
Disclosure of non-tradable equity instrument investment by item in the current period
121
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In RMB
Reason for being
Amount Reason for the
designated to be
transferred transfer of
measured by fair
Recognized from other other
Accumulated Accumulated value and the
Project dividends comprehensive comprehensiv
gains losses change being
income incomes to e incomes to
recorded in other
retained retained
comprehensive
earnings earnings
income
Suzhou Industrial
Park Ruican
Investment
100,000,000.00
Enterprise
(Limited
Partnership)
Shanghai
MXCHIP
Information 17,832,510.78
Technology Co.,
Ltd.
10. Long-term equity investment
In RMB
Increase/decrease in the current period
Beginni Investm
ent Cash Ending
ng Adjust
Beginni profit dividen balance
balance ment of Ending
ng Additio Negativ or loss Other ds or Impair of
Investe of other balance
balance nal e recogni changes profits ment impair
e impair compre Others （book
(book investm investm zed in declare provisio ment
ment hensive value)
value) ent ent using equity d and n provisio
provisio income
the distribu n
n s
equity ted
method
I. Joint venture
De
Dietrich
Trade -
4,321,7 1,097,5
(Shang 3,224,1
29.39 75.77
hai) 53.62
Co.,
Ltd.
-
Sub-tot 4,321,7 1,097,5
3,224,1
al 29.39 75.77
53.62
II. Associated companies
Zhejian
g
Tingshu -
639,942 602,528
o Brand 37,414.
.64 .31
Operati 33
on
Manage
122
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ment
Co.,
Ltd.
Shaoxin
g
Shuaige
Kitchen
and -
3,465,7 3,278,8
Bathroo 186,945
78.21 32.23
m .98
Technol
ogy
Co.,
Ltd.
-
Sub-tot 4,105,7 3,881,3
224,360
al 20.85 60.54
.31
-
8,427,4 4,978,9
Total 3,448,5
50.24 36.31
13.93
Recoverable amount is determined as fair value less costs of disposal
□Applicable Not applicable
The recoverable amount is determined as the present value of the expected future cash flows
□Applicable Not applicable
11. Other non-current financial assets
In RMB
Item Ending balance Beginning balance
Classification of financial assets
measured at fair value with changes
included into current profit or loss
Including: financial products 580,000,000.00 480,000,000.00
Total 580,000,000.00 480,000,000.00
12. Investment real estate
(1) Investment real estate under the cost measurement mode
Applicable □Not applicable
In RMB
Item Buildings Land use right Total
I. Original book value
1. Beginning balance 103,152,708.29 1,062,744.00 104,215,452.29
2. Increased amount in the
4,399,856.67 4,399,856.67
current period
(1) Outsourcing
(2) Transfer from
inventories/fixed 4,399,856.67 4,399,856.67
assets/construction in progress
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(3) Increased amount
in business merger
3. Decreased amount in
4,534,277.73 4,534,277.73
the current period
(1) Disposal
(2) Other transfer-out 4,534,277.73 4,534,277.73
4. Ending balance 103,018,287.23 1,062,744.00 104,081,031.23
II Accumulated depreciation
and amortization
1. Beginning balance 12,726,143.22 352,476.76 13,078,619.98
2. Increased amount in the
2,596,658.54 10,627.44 2,607,285.98
current period
(1) Accrual or
2,596,658.54 10,627.44 2,607,285.98
amortization
3. Decreased amount in
658,922.72 658,922.72
the current period
(1) Disposal
(2) Other transfer-out 658,922.72 658,922.72
4. Ending balance 14,663,879.04 363,104.20 15,026,983.24
III. Impairment provision
1. Beginning balance
2. Increased amount in the
1,539,949.83 1,539,949.83
current period
(1) Provision
3. Decreased amount in
the current period
(1) Disposal
(2) Other transfer-out
4. Ending balance 1,539,949.83 1,539,949.83
IV. Book value
1. Ending book value 86,814,458.36 699,639.80 87,514,098.16
2. Beginning book value 90,426,565.07 710,267.24 91,136,832.31
*1. The increase in investment properties is primarily due to the Company's rental of properties to external parties.
*2. The other transfers out of investment properties are due to the Company reclaiming rental properties for its own use.
Recoverable amount is determined as fair value less costs of disposal
□Applicable Not applicable
The recoverable amount is determined as the present value of the expected future cash flows
□Applicable Not applicable
124
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(2) Investment real estate under the fair value measurement mode
□Applicable Not applicable
13. Fixed assets
In RMB
Item Ending balance Beginning balance
Fixed assets 1,664,948,226.73 1,720,724,257.46
Total 1,664,948,226.73 1,720,724,257.46
(1) Fixed assets
In RMB
Houses and Machine and Transportation
Item Other equipment Total
buildings equipment equipment
I. Original book
value
1. Beginning
1,653,353,641.45 846,881,737.33 23,053,141.13 137,921,680.50 2,661,210,200.41
balance
2. Increased
amount in the 14,704,252.73 13,279,837.52 5,162,697.74 2,120,048.00 35,266,835.99
current period
(1)
10,169,975.00 819,770.38 5,162,697.74 396,063.81 16,548,506.93
Purchase
(2)
Transfer from
12,460,067.14 1,723,984.19 14,184,051.33
construction in
progress
(3)
Increased amount
in business merger
(4) Other increases 4,534,277.73 4,534,277.73
3. Decreased
amount in the 4,399,856.67 1,101,406.85 5,120,580.61 634,237.65 11,256,081.78
current period
(1)
Disposal or 1,101,406.85 5,120,580.61 634,237.65 6,856,225.11
retirement
(2) Other
4,399,856.67 4,399,856.67
decreases
4. Ending
1,663,658,037.51 859,060,168.00 23,095,258.26 139,407,490.85 2,685,220,954.62
balance
II. Accumulated
depreciation
1. Beginning
392,725,389.84 456,059,295.64 15,068,321.38 76,632,936.09 940,485,942.95
balance
2. Increased
amount in the 39,207,504.03 32,546,499.74 866,381.60 8,537,015.65 81,157,401.02
current period
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(1)
38,548,581.31 32,546,499.74 866,381.60 8,537,015.65 80,498,478.30
Provision
(2) Other increases 658,922.72 658,922.72
3. Decreased
amount in the 838,216.14 532,399.94 1,370,616.08
current period
(1)
Disposal or 838,216.14 532,399.94 1,370,616.08
retirement
4. Ending
431,932,893.87 487,767,579.24 15,934,702.98 84,637,551.80 1,020,272,727.89
balance
III. Impairment
provision
1. Beginning
balance
2. Increased
amount in the
current period
(1)
Provision
3. Decreased
amount in the
current period
(1)
Disposal or
retirement
4. Ending
balance
IV. Book value
1. Ending
1,231,725,143.64 371,292,588.76 7,160,555.28 54,769,939.05 1,664,948,226.73
book value
2. Beginning
1,260,628,251.61 390,822,441.69 7,984,819.75 61,288,744.41 1,720,724,257.46
book value
*Other increases and decreases during the period: For details, please refer to Section VII. 12. of this report on investment real
estate".
The Company has no fixed assets without completed property certificates.
14. Construction in process
In RMB
Item Ending balance Beginning balance
Construction in process 444,829,440.01 359,768,699.68
Total 444,829,440.01 359,768,699.68
126
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(1) Construction in progress
In RMB
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Robam
Mansion 435,305,853.75 435,305,853.75 336,704,853.10 336,704,853.10
project
Project of the
Fourth
3,537,257.11 3,537,257.11 14,080,754.69 14,080,754.69
Production
Department
Customized
management 2,052,830.20 2,052,830.20 3,182,235.79 3,182,235.79
software
Project of the
First
941,946.89 941,946.89
Production
Department
Project of the
Third
1,954,867.32 1,954,867.32 761,150.44 761,150.44
Production
Department
Project of the
Second
336,283.20 336,283.20 130,973.44 130,973.44
Production
Department
Other smaller
1,642,348.43 1,642,348.43 3,966,785.33 3,966,785.33
projects
Total 444,829,440.01 444,829,440.01 359,768,699.68 359,768,699.68
(2) Current changes in major projects under construction
In RMB
Amou Propor
Includi
nt tion of Accum Interes
ng:
Increas transfe Other accum ulated t
capital
Beginn ed rred decrea ulative amoun capital
Ending Project ized Fundin
ing amoun into ses in constr t of ization
Project Budget balanc progre interes g
balanc t in the fixed the uction capital rate in
e ss ts in source
e current assets current invest ized the
the
period in the period ment interes current
current
current in the t period
period
period budget
Robam
724,75 336,70 98,601 435,30
Mansi 60.06 Own
0,000. 4,853. ,000.6 5,853.
on % funds
00 10 5 75
project
724,75 336,70 98,601 435,30
Total 0,000. 4,853. ,000.6 5,853.
00 10 5 75
127
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(3) Impairment test of construction in progress
□Applicable Not applicable
15. Right-of-use assets
(1) Right-of-use assets
In RMB
Item Houses and buildings Total
I. Original book value
1. Beginning balance 29,457,908.02 29,457,908.02
2. Increased amount in the current
period
3. Decreased amount in the current
period
4. Ending balance 29,457,908.02 29,457,908.02
II. Accumulated depreciation
1. Beginning balance 15,655,449.04 15,655,449.04
2. Increased amount in the current
2,597,529.36 2,597,529.36
period
(1) Provision 2,597,529.36 2,597,529.36
3. Decreased amount in the current
period
(1) Disposal
4. Ending balance 18,252,978.40 18,252,978.40
III. Impairment provision
1. Beginning balance
2. Increased amount in the current
period
(1) Provision
3. Decreased amount in the current
period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 11,204,929.62 11,204,929.62
2. Beginning book value 13,802,458.98 13,802,458.98
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16. Intangible assets
(1) Intangible assets
In RMB
Item Land use right 3. Patent right Software Trademark Total
I. Original book
value
1.
Beginning 224,593,935.95 7,300,000.00 73,208,259.53 24,624,622.64 329,726,818.12
balance
2.
Increased
1,637,623.99 1,637,623.99
amount in the
current period
(1)
46,017.70 46,017.70
Purchase
(2)
Internal
research and
development
(3)
Increased
amount in
business
merger
(4) Transfer
from
1,591,606.29 1,591,606.29
construction in
progress
3.
Decreased
6,954,634.60 6,954,634.60
amount in the
current period
(1)
6,954,634.60 6,954,634.60
Disposal
4. Ending
224,593,935.95 7,300,000.00 67,891,248.92 24,624,622.64 324,409,807.51
balance
II.
Accumulated
amortization
1.
Beginning 38,853,482.23 6,176,923.08 56,614,708.98 13,527,964.52 115,173,078.81
balance
2.
Increased
589,224.92 561,538.46 4,728,036.52 1,225,000.00 7,103,799.90
amount in the
current period
(1)
589,224.92 561,538.46 4,728,036.52 1,225,000.00 7,103,799.90
Provision
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3.
Decreased
6,907,421.73 6,907,421.73
amount in the
current period
(1)
6,907,421.73 6,907,421.73
Disposal
4. Ending
39,442,707.15 6,738,461.54 54,435,323.77 14,752,964.52 115,369,456.98
balance
III. Impairment
provision
1.
Beginning
balance
2.
Increased
amount in the
current period
(1)
Provision
3.
Decreased
amount in the
current period
(1)
Disposal
4. Ending
balance
IV. Book value
1. Ending
185,151,228.80 561,538.46 13,455,925.15 9,871,658.12 209,040,350.53
book value
2.
Beginning book 185,740,453.72 1,123,076.92 16,593,550.55 11,096,658.12 214,553,739.31
value
17. Goodwill
(1) Original book value of goodwill
In RMB
Increase in the Decrease in the
Name of investee or item that current period current period
Beginning balance Ending balance
generates goodwill Generated by
Disposal
business merger
Shengzhou Kinde Intelligent Kitchen
80,589,565.84 80,589,565.84
Appliance Co., Ltd.
Total 80,589,565.84 80,589,565.84
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(2) Goodwill impairment provision
In RMB
Increase in the Decrease in the
Name of investee or item that current period current period
Beginning balance Ending balance
generates goodwill
Provision Disposal
Shengzhou Kinde Intelligent Kitchen
68,366,294.17 68,366,294.17
Appliance Co., Ltd.
Total 68,366,294.17 68,366,294.17
Other description
The Company recognizes Shengzhou Kinde as an assets group. Goodwill at the end of this period is in the
same assets group as recognized upon goodwill impairment test at the date of purchase and in previous
year.
18. Long-term deferred expenses
In RMB
Increased amount Amount of
Item Beginning balance in the current amortization in the Other decreases Ending balance
period current period
Office decoration
2,331,161.64 696,402.85 1,634,758.79
expenses
Service fee 2,083,289.77 364,591.22 976,196.84 1,471,684.15
Consulting fee 267,733.10 182,010.92 85,722.18
Advertisement
129,216.10 129,216.10 0.00
expenses
Others 223,258.76 4,581.52 142,354.70 85,485.58
Total 5,034,659.37 369,172.74 2,126,181.41 3,277,650.70
19. Deferred income tax asset/deferred income tax liability
(1) Deferred income tax assets before offset
In RMB
Ending balance Beginning balance
Item Deductible temporary Deductible temporary
Deferred tax assets: Deferred tax assets:
differences differences
Asset impairment
101,443,097.40 15,216,464.61 97,315,669.06 14,597,350.36
provision
Unrealized profits of
6,744,863.04 1,463,620.57
internal transactions
Credit impairment
1,222,360,955.60 191,133,912.84 1,228,253,675.11 191,913,813.81
provision
Deferred income tax
assets before offset
recognized based on 994,438,099.33 149,165,714.90 744,083,389.27 111,612,508.39
the provisional
estimated expenses
Changes in the fair
117,832,510.80 17,674,876.62 117,832,510.80 17,674,876.62
value of other equity
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instrument investments
Deferred income tax
assets before offset
91,396,861.33 13,709,529.20 101,473,668.87 15,221,050.33
recognized based on
the deferred income
Deferred income tax
assets before offset
18,333,587.92 2,823,026.46 9,730,756.23 1,510,663.99
recognized due to
equity incentive
Income that should be
recognized according
to tax laws but have 16,597,690.53 2,489,653.58 60,810,075.93 9,121,511.39
not been confirmed by
the accountant yet
Lease liabilities 1,625,756.28 406,439.07 4,984,267.98 1,246,067.00
Total 2,570,773,422.23 394,083,237.85 2,364,484,013.25 362,897,841.89
(2) Deferred income tax liabilities before offset
In RMB
Ending balance Beginning balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Asset appraisal
appreciation arising
from business merger
where the acquired 15,528,850.80 2,329,327.62 17,528,191.69 2,629,228.75
company is not
controlled by the same
party after the merger
Right-of-use assets 3,260,199.24 815,049.81 3,260,199.24 815,049.81
Temporary taxable
difference incurred
104,923,491.60 15,738,523.74 112,448,544.27 16,867,281.64
from pre-tax deduction
of fixed assets
Accrued interest on
72,988,481.40 10,948,272.22 54,046,698.73 8,107,004.81
fixed deposits
Total 196,701,023.04 29,831,173.39 187,283,633.93 28,418,565.01
(3) Deferred income tax assets or liabilities presented in net amount after offset
In RMB
Amount of deferred Initial amount of
Ending balance of Beginning balance of
income tax assets deferred income tax
deferred income tax deferred income tax
Item offset against deferred assets offset against
assets or liabilities after assets or liabilities after
income tax liabilities at deferred income tax
offset offset
the end of the period liabilities
Deferred tax assets: 394,083,237.85 362,897,841.89
Deferred income tax
29,831,173.39 28,418,565.01
liabilities
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(4) Presentation of unrecognized deferred income tax assets
In RMB
Item Ending balance Beginning balance
Deductible temporary differences 15,410,458.85 13,929,952.65
Deductible tax losses 132,223,154.72 102,787,541.49
Total 147,633,613.57 116,717,494.14
(5) The deductible losses of unrecognized deferred income tax assets will be due in the following years
In RMB
Year Ending amount Beginning amount Remarks
2024 years 5,602.28
2025 9,556,499.12 9,556,499.12
2026 years 10,380,561.57 10,380,561.57
2027 years 24,349,032.53 24,349,032.53
2028 58,495,845.99 58,495,845.99
2029 29,441,215.51
Total 132,223,154.72 102,787,541.49
20 Other non-current assets
In RMB
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Fixed-term
deposit for 3,240,000,000. 3,240,000,000. 1,770,000,000. 1,770,000,000.
more than 1 00 00 00 00
year
Properties
exchanged for
108,252,840.51 37,888,494.18 70,364,346.33 97,041,317.94 33,964,461.28 63,076,856.66
construction
services *1
Prepayment for
87,153,575.80 87,153,575.80 76,602,510.25 76,602,510.25
house purchase
Prepayments
for equipment 20,550,850.00 20,550,850.00 12,455,961.74 12,455,961.74
purchase
Prepayment for
194,000.00 194,000.00 194,000.00 194,000.00
the project
3,456,151,266. 3,418,262,772. 1,956,293,789. 1,922,329,328.
Total 37,888,494.18 33,964,461.28
31 13 93 65
Other description:
Properties exchanged for construction services: It refers to the properties and parking space that the
Company has signed a debt restructuring agreement at the end of the period and completed the procedures
for property transfer, with a total value of RMB 108,252,800 and a provision for impairment of RMB
37,888,500. For details, please refer to Section XVIII Other Important Matters 1 of this report on the
Company's debt restructuring matters.
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21. Assets with limited ownership and right to use
In RMB
Ending of the period Beginning of the period
Item Restr
Type of Type of Restri
Book balance Book value ictio Book balance Book value
restriction restriction ctions
ns
Cash and
cash
89,105,875.26 89,105,875.26 L/G margin 83,153,343.90 83,153,343.90 L/G margin
equivalent
s
Cash and
Bill Bill
cash
41,826,555.86 41,826,555.86 acceptance 23,717,043.12 23,717,043.12 acceptance
equivalent
margin margin
s
Cash and
cash ETC security ETC security
16,000.00 16,000.00 14,000.00 14,000.00
equivalent deposits deposits
s
Fixed Mortgage Mortgage
152,993,151.92 135,979,588.89 108,455,603.60 99,401,869.39
assets loan loan
Intangible Mortgage Mortgage
34,367,725.00 31,222,615.70 28,181,534.50 25,884,399.80
assets loan loan
Total 318,309,308.04 298,150,635.71 243,521,525.12 232,170,656.21
22. Short-term borrowings
(I)Short-term borrowing classification
In RMB
Item Ending balance Beginning balance
Mortgage loan 99,000,000.00 49,500,000.00
Credit borrowings 1,500,000.00 31,500,000.00
Accounts receivable factoring 14,503,320.70 14,003,320.70
Total 115,003,320.70 95,003,320.70
Description on the classification of short-term borrowings:
Credit loans refer to working capital loans obtained by the Company's subsidiary, Cooking
Future (a subsidiary of Shengzhou Kinde), from the Shaoxing Shengzhou Small and Micro
Enterprise Branch of Zhejiang Tailong Commercial Bank Co., Ltd. The loan term is within one
year, with an interest rate range of 3.25%-6.18%.
Mortgage loans: On June 1, 2023, the Company's subsidiary, Shengzhou Kinde, signed a
mortgage loan agreement with the Shaoxing Shengzhou Branch of Bank of Communications Co.,
Ltd., securing a credit limit of RMB 160 million with an interest rate ranging from 3.25% to
3.35%. The collateral for this loan is its Factory No. 1 building and the land located at 888 Ruanpeng Road,
Shengzhou City, with a combined net value of RMB 125 million. Additionally, on October 7,
2023, Shengzhou Kinde signed another mortgage loan agreement with China Minsheng Bank,
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obtaining a credit limit of RMB 50 million with an interest rate ranging from 3.25% to 3.6%. The
collateral for this loan is the office building and the land located at 888 Ruanpeng Road, Shengzhou City,
with a combined net value of RMB 35 million.
(2) Overdue Short-term Loans
The Company has no overdue short-term loans that have not been paid during the current period.
23. Notes payable
In RMB
Type Ending balance Beginning balance
Banker’s acceptance 993,551,028.00 1,098,720,000.58
Total 993,551,028.00 1,098,720,000.58
The total amount of notes payable that were due and unpaid at the end of the period was RMB 0.00.
24. Accounts payable
(1) Presentation of accounts payable
In RMB
Item Ending balance Beginning balance
Payment for expenses 1,124,456,863.77 1,107,539,973.00
Payment for materials 1,087,599,114.60 1,267,081,255.68
Payment for construction 159,978,831.67 164,258,188.72
Payment for equipment 11,970,618.74 9,864,344.66
Total 2,384,005,428.78 2,548,743,762.06
Other description:
As of June 30, 2024, the balance of important accounts payable with an age of more than one year
totaled RMB 41,508,040.30, mainly involving the unsettled material payments and expenses.
25. Other payables
In RMB
Item Ending balance Beginning balance
Dividends payable 472,047,458.00
Other payables 290,336,577.77 283,917,461.76
Total 290,336,577.77 755,964,919.76
(1) Dividends payable
In RMB
Item Ending balance Beginning balance
Dividends for ordinary shares 472,047,458.00
Total 472,047,458.00
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(2) Other payables
1) Other payables presented by nature
In RMB
Item Ending balance Beginning balance
Security deposits payable 277,065,066.91 266,137,376.14
Collections by a third party 6,075,517.10 4,941,205.70
Guarantee deposits payable 3,093,537.04 6,600,507.19
Others 4,102,456.72 6,238,372.73
Total 290,336,577.77 283,917,461.76
2) Important accounts payable with an age of more than one year
Other description
As of June 30, 2024, the important accounts payable with an age of more than one year totaled RMB
217,033,999.07, mainly involving the sales deposits.
26. Contract liabilities
In RMB
Item Ending balance Beginning balance
Advances on sales 777,554,890.02 1,019,942,923.58
Total 777,554,890.02 1,019,942,923.58
27. Employee benefits payable
(1) Presentation of employee compensation payable
In RMB
Increase in the current Decrease in the current
Item Beginning balance Ending balance
period period
I. Short-term benefits 168,988,703.61 403,243,066.48 534,995,837.53 37,235,932.56
II. Post-employment
benefits defined 8,822,260.23 34,004,530.44 41,030,075.85 1,796,714.82
contribution plan
III. Termination
112,078.17 925,131.62 1,037,209.79
benefits
Total 177,923,042.01 438,172,728.54 577,063,123.17 39,032,647.38
(2) Presentation of short-term employee compensation
In RMB
Increase in the current Decrease in the current
Item Beginning balance Ending balance
period period
1. Salaries, bonuses,
162,415,752.84 356,049,365.14 485,701,615.27 32,763,502.71
subsidies and allowances
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2. Employee welfare 15,389,846.92 15,255,092.62 134,754.30
3. Social insurance 5,807,041.35 20,937,168.04 25,669,421.63 1,074,787.76
Including: medical
5,492,914.20 19,567,806.69 24,024,877.14 1,035,843.75
insurance
Work-
314,127.15 1,369,361.35 1,644,544.49 38,944.01
related injury insurance
4. Housing funds 347,140.00 3,559,060.00 3,488,111.00 418,089.00
5. Labor union and staff
418,769.42 7,307,626.38 4,881,597.01 2,844,798.79
education expenses
Total 168,988,703.61 403,243,066.48 534,995,837.53 37,235,932.56
(3) Presentation of the defined contribution plans
In RMB
Increase in the current Decrease in the current
Item Beginning balance Ending balance
period period
1. Basic pensions 8,524,886.32 32,892,612.68 39,676,179.95 1,741,319.05
2. Unemployment
297,373.91 1,111,917.76 1,353,895.90 55,395.77
insurance
Total 8,822,260.23 34,004,530.44 41,030,075.85 1,796,714.82
28. Taxes payable
In RMB
Item Ending balance Beginning balance
Added-value tax 87,733,886.16 61,072,058.37
Corporate income tax 94,349,065.01 61,750,915.22
Individual income tax 9,870,590.21 3,100,246.18
City maintenance and construction tax 6,170,483.55 4,330,476.87
House tax 1,236,947.92 13,625,288.12
Land use tax 657,111.90 5,696,022.16
Education surcharge 2,644,492.89 1,855,918.59
Stamp tax 1,356,304.80 1,697,472.12
Local education surcharge 1,762,995.38 1,237,279.17
Other taxes 22,062.18
Total 205,803,940.00 154,365,676.80
29. Non-current liabilities due within one year
In RMB
Item Ending balance Beginning balance
Lease liabilities due within one year 2,163,637.20 4,522,658.42
Total 2,163,637.20 4,522,658.42
30. Other current liabilities
In RMB
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Item Ending balance Beginning balance
Output VAT to be carried forward 94,072,365.82 118,041,351.23
Total 94,072,365.82 118,041,351.23
31. Lease liabilities
In RMB
Item Ending balance Beginning balance
Lease payment amount 14,474,209.54 17,643,054.87
Unrecognized financial expenses -1,967,112.51 -2,369,603.55
Non-current liabilities due within one
-2,163,637.20 -4,522,658.42
year after reclassification
Total 10,343,459.83 10,750,792.90
32. Deferred income
In RMB
Increase in the Decrease in the
Item Beginning balance Ending balance Cause of formation
current period current period
Government
Government grants 136,538,254.74 11,038,705.47 125,499,549.27
funding
Total 136,538,254.74 11,038,705.47 125,499,549.27
Other description:
Items with government grants:
In RMB
Amou
nt
Amo
includ
unt of
ed in
Added cost
non- Amount
subsidy deduc Othe
Beginning of the operat included in Ending of the Related to
amount tion rs
Liability period ing other income in period assets /
in the in Cha
Balance incom the current Balance income
current curre nge
e in period
period nt
the
perio
curren
d
t
period
Subsidies for factory buildings, infrastructure
Related to
construction, equipment, etc. in new Chengnan 35,064,585.90 961,898.10 34,102,687.80
assets
District
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Funds for intelligent manufacturing, integrated Related to
21,165,836.86 4,269,752.82 16,896,084.04
standard and new model application program assets
"Open, complete, and achieve" incentives for Related to
20,257,269.28 554,007.84 19,703,261.44
industrial projects assets
Construction of production line with an annual Related to
17,176,926.62 1,293,301.41 15,883,625.21
output of 2.25 million sets of kitchen appliances assets
Intelligent unmanned factory based on 5G and Related to
13,590,218.05 1,039,424.10 12,550,793.95
cloud technologies assets
Intelligent manufacturing enhancement project Related to
11,470,083.46 1,006,145.04 10,463,938.42
based on internet of things technology assets
Intelligent manufacturing project of integrated
Related to
kitchen appliances with an annual production 7,408,861.45 426,351.30 6,982,510.15
assets
capacity of 300,000 units
Construction project of kitchen appliance R&D, Related to
4,351,759.70 705,321.60 3,646,438.10
design and testing center assets
Construction of production line with an annual
Related to
output of 1.08 million sets of built-in kitchen 2,886,861.55 341,245.62 2,545,615.93
assets
appliances
Technological upgrading project with an annual Related to
1,486,862.55 169,552.50 1,317,310.05
output of 500,000 assets
Related to
Robam Future Factory Project 942,839.42 81,541.90 861,297.52
assets
Construction of digital intelligent workshop for Related to
262,343.08 57,070.80 205,272.28
smart home appliances assets
Related to
Recycling-centered renewal project 177,280.77 45,780.78 131,499.99
assets
Development of new generation of
Related to
environmentally-friendly energy-saving kitchen 151,617.90 58,959.43 92,658.47
assets
appliances and their production line
Related to
Academician & expert work station 122,531.16 21,860.04 100,671.12
assets
Related to
Kitchen appliance R&D, design and testing center 19,697.20 3,812.40 15,884.80
assets
Construction of the digital workshop with an
Related to
annual output of 2.25 million sets of kitchen 2,679.79 2,679.79 0.00
assets
appliances
Total 136,538,254.74 11,038,705.47 125,499,549.27 —
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33. Capital stock
In RMB
Increase and decrease of this change (+, -)
Shares
Beginning balance Issue of Ending balance
Bonus converted Sub-tot
new Others
shares from capital al
shares
reserve
Total number
949,024,050.00 949,024,050.00
of shares
34. Capital reserve
In RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
Capital (stock) premium 401,799,332.67 401,799,332.67
Other capital reserves 9,978,881.55 8,698,813.25 18,677,694.80
Total 411,778,214.22 8,698,813.25 420,477,027.47
Other notes, including condition and causes of variation in the current period:
The increase in other capital reserves is due to the recognition of equity-based incentives for the
period. For details, please refer to Section XV "Share-Based Payment" in this report.
35. Treasury shares
In RMB
Increase in the current Decrease in the 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
Other notes, including condition and causes of variation in the current period:
The treasury stock is repurchased by the Company from the secondary market for use in employee
stock incentives.
36. Other comprehensive incomes
In RMB
Amount incurred in the current period
Minus: Minus:
Amount amount amount
Net income Net income
incurred included in included in Minus:
after tax after tax
Item Beginning balance before other other income Ending balance
attributable attributable
income tax comprehen comprehen tax
to the to minority
in the sive sive expense
parent shareholde
current incomes incomes s
company rs
period previously previously
and then and then
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transferred transferred
into the into
current current
profit or retained
loss earnings
I. Other
comprehensiv
e incomes
that cannot be -100,157,634.16 -100,157,634.16
reclassified
into profit or
loss
Changes
in the fair
value of other
-100,157,634.16 -100,157,634.16
equity
instrument
investments
(II) Other
comprehensiv
e income
which will be 25,910.06 12,522.53 13,387.53 12,522.53
reclassified
into gains and
losses
Convert
ed difference
in foreign 25,910.06 12,522.53 13,387.53 12,522.53
currency
statements
Total of other
comprehensiv -100,157,634.16 25,910.06 12,522.53 13,387.53 -100,145,111.63
e incomes
37. Surplus reserve
In RMB
Increase in the current Decrease in the current
Item Beginning balance Ending balance
period period
Statutory surplus
474,516,412.50 474,516,412.50
reserve
Total 474,516,412.50 474,516,412.50
38. Undistributed profit
In RMB
Item Current period Previous period
Undistributed profit at the end of previous
8,987,773,431.71 8,199,079,015.58
period before adjustment
Undistributed profit at the beginning of the
8,987,773,431.71 8,199,079,015.58
period after adjustment
Add: Net profits attributable to owners of 759,358,954.74 1,732,789,332.13
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the parent company in the current period
Dividends payable for ordinary
472,047,458.00 944,094,916.00
shares*1
Undistributed profit at the end of the
9,275,084,928.45 8,987,773,431.71
period
*1. According to the proposal on the profit distribution plan for the year 2023, which was passed at the
fifth meeting of the sixth board of directors of the Company on April 24, 2024, based on the total share
capital of 944,094,916.00 as of December 31, 2023, a cash dividend of RMB 5.00 (including tax) will be
distributed to all shareholders for every 10 shares, totaling RMB 472,047,458.00. This profit distribution
plan was approved at the shareholders' meeting held on May 16, 2024, and the distribution was
implemented on May 29, 2024.
39. Operating income and operating cost
In RMB
Amount incurred in the current period Amount incurred in the previous period
Item
Income Cost Income Cost
Main business 4,604,808,674.29 2,381,821,304.07 4,793,316,106.76 2,305,082,060.11
Other businesses 124,545,397.51 35,796,675.60 141,553,693.39 67,013,911.39
Total 4,729,354,071.80 2,417,617,979.67 4,934,869,800.15 2,372,095,971.50
40. Taxes and surcharges
In RMB
Item Amount incurred in the current period Amount incurred in the previous period
City maintenance and construction tax 17,669,194.72 19,865,052.45
Education surcharge 12,620,853.38 14,189,320.42
House tax 1,713,879.73 1,211,155.82
Land use tax 682,400.35 -4,374,871.70
Vehicle and vessel usage tax 6,999.84 5,139.84
Stamp tax 2,461,235.11 1,306,922.24
Others 75,951.77 5,252.13
Total 35,230,514.90 32,207,971.20
41. Administrative expenses
In RMB
Item Amount incurred in the current period Amount incurred in the previous period
Employee remuneration 107,282,124.59 109,523,028.03
Depreciation and amortization 37,235,102.64 31,430,035.98
Consulting service fees 16,639,627.93 13,684,786.20
Costs of equity incentive 8,698,813.25 3,473,641.59
Office expenses 8,110,263.60 6,714,440.34
Material consumption 6,540,776.25 4,742,269.13
Rental and property fees 6,538,191.34 4,762,887.30
Business hospitality cost 3,844,343.10 4,660,750.07
Maintenance expenses 2,592,881.06 2,281,377.24
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Travel expenses 2,490,615.16 2,465,253.34
Communication expense 2,419,485.36 3,460,975.01
Travel expenses 1,124,876.84 4,142,395.01
Others 10,749,981.97 12,083,977.01
Total 214,267,083.09 203,425,816.25
42. Sales expense
In RMB
Item Amount incurred in the current period Amount incurred in the previous period
Marketing service expenses 543,754,230.80 650,120,122.89
Advertisement expenses 291,017,797.65 356,749,434.59
Employee remuneration 160,756,327.97 166,363,948.22
Booth decoration expenses 50,651,703.80 60,230,248.91
Promotional activity expenses 41,830,970.70 33,830,183.32
Material consumption 38,651,942.85 38,389,111.98
Travel expenses 15,190,671.32 11,697,748.47
Intermediary service fees 12,503,361.04 10,695,310.63
Office expenses 11,487,489.39 7,850,063.78
Rental fees 8,009,305.98 7,933,192.97
Business hospitality cost 7,518,561.54 9,309,526.51
Others 8,382,037.14 7,652,481.14
Total 1,189,754,400.18 1,360,821,373.41
43. R&D expenses
In RMB
Item Amount incurred in the current period Amount incurred in the previous period
Employee remuneration 93,845,469.46 88,567,764.03
Direct input 63,046,936.47 65,160,510.13
Depreciation and amortization 6,563,059.30 7,419,085.38
Design fees 2,215,742.57 2,146,030.75
Other expenses 12,702,612.68 9,440,750.86
Total 178,373,820.48 172,734,141.15
44. Financial expenses
In RMB
Item Amount incurred in the current period Amount incurred in the previous period
Interest expenses 1,294,179.47 2,707,272.10
Less: Interest income 97,172,965.14 69,274,034.42
Add: foreign exchange gain/loss -552,919.95 -3,213,064.29
Add: other expenses 1,041,292.17 820,841.52
Total -95,390,413.45 -68,958,985.09
45. Other incomes
In RMB
Sources generating other incomes Amount incurred in the current period Amount incurred in the previous period
Financial support fund to boost the
25,750,000.00 44,730,000.00
corporate development
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Amortization of deferred income 11,038,705.47 9,823,767.55
Embedded software tax refund 17,599,690.73 9,453,997.74
Special funds for industrial development 7,597,400.00 3,289,700.00
VAT exemption or reduction 19,633,908.52 922,350.00
Post allowance and social insurance
819,745.08 723,791.56
allowance
Handling fee refund 582,214.67 684,354.91
R&D input grants 959,700.00 382,847.00
Patent awards 175,470.00
Other grants 1,057,200.00 648,750.00
Total 85,214,034.47 70,659,558.76
46. Investment income
In RMB
Item Amount incurred in the current period Amount incurred in the previous period
Income from long-term equity investments
-3,448,513.93 -1,263,184.05
accounted for using the equity method
Investment income during holding of
21,508,694.19 22,986,802.86
financial assets for trading
Total 18,060,180.26 21,723,618.81
47. Loss from credit impairment
In RMB
Item Amount incurred in the current period Amount incurred in the previous period
Bad debt losses on notes receivable 157,222.78 14,373,972.06
Bad debt losses from accounts receivable 803,571.44 11,131,980.38
Bad debt losses of other receivables 2,378,889.45 -2,215,366.04
Total 3,339,683.67 23,290,586.40
48. Loss from asset impairment
In RMB
Item Amount incurred in the current period Amount incurred in the previous period
I. Loss from obsolete inventory and from
impairment of the cost of contract -203,395.43 5,634,807.91
performance
II. Other -6,441,873.91 -9,556,264.05
Total -6,645,269.34 -3,921,456.14
49. Asset disposal income
In RMB
Sources of asset disposal income Amount incurred in the current period Amount incurred in the previous period
Gains on disposal of assets held for sale
Non-current asset disposal income -242,184.96 115,350.08
Including: Gains on disposal of non-
current assets classified as held for sale
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Including: income from disposal of fixed
assets
Right-of-use asset disposal income
Gains on disposal of non-current assets
-242,184.96 115,350.08
not classified as held for sale
Including: income from disposal of fixed
-242,184.96 -19,655.41
assets
Right-of-use asset disposal income 135,005.49
Gains on exchange of non-monetary
assets
Gain on disposal of non-current assets in
-519,058.40 -692,068.49
debt restructuring
Total -761,243.36 -576,718.41
50. Non-operating revenue
In RMB
Amount included in the
Amount incurred in the Amount incurred in the
Item current non-recurring gains
current period previous period
and losses
Non-current asset scrapping
410.00
income
Others 885,943.04 2,803,549.50 885,943.04
Total 885,943.04 2,803,959.50 885,943.04
51. Non-operating expenditures
In RMB
Amount included in the
Amount incurred in the Amount incurred in the
Item current non-recurring gains
current period previous period
and losses
External donations 1,506,720.46 1,120,457.50 1,506,720.46
Amercement outlay 4,796.33 14,450.00 4,796.33
Losses from non-current asset
1,521.37 673.95 1,521.37
damage or retirement
Others 1,579,508.54 314,293.04 1,579,508.54
Total 3,092,546.70 1,449,874.49 3,092,546.70
52. Income tax expenses
(1) Presentation of income tax expenses
In RMB
Item Amount incurred in the current period Amount incurred in the previous period
Current income tax expenses 167,368,358.21 187,282,866.64
Deferred income tax expenses -29,772,787.58 -35,451,939.13
Total 137,595,570.63 151,830,927.51
(2) Adjustment of accounting profit and income tax expense
In RMB
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Item Amount incurred in the current period
Total profit 886,501,468.97
Income tax expense calculated based on statutory/applicable
132,975,220.36
tax rate
Effects of the subsidiaries’ application of different tax rates -355,967.81
Effects of the non-deductible costs, expenses and losses 1,689,446.34
Effects of the deductible temporary differences or deductible
losses of unrecognized deferred income tax assets in the current 4,750,492.31
period
Unrealized internal gains and losses -1,463,620.57
Income tax expense 137,595,570.63
53. Other comprehensive incomes
See Note "VII. 36 Other Comprehensive Incomes" for details.
54. Cash flow statement items
(1) Cash related to operating activities
Other cash received relating to operating activities
In RMB
Item Amount incurred in the current period Amount incurred in the previous period
Government grants 37,850,227.58 56,322,854.76
Interest revenue on deposits 30,950,627.08 69,274,034.42
Revenue collected and payment made on
20,085,722.00 5,493,388.35
behalf of other agencies
Guarantee and security deposits 17,824,926.10 14,303,618.62
Other payments 8,143,953.69 6,266,385.36
Cash reserve 652,861.09 1,343,606.65
Letter of credit and acceptance bill
9,984,355.85
margin
Total 115,508,317.54 162,988,244.01
Other cash paid relating to operating activities
In RMB
Item Amount incurred in the current period Amount incurred in the previous period
Period expenses 1,266,026,997.91 1,243,206,922.01
Letter of credit and acceptance bill
15,101,782.96 21,285,415.74
margin
Revenue collected and payment made on
11,087,898.28 10,398,113.72
behalf of other agencies
Cash reserve 3,665,426.42 4,097,943.96
Others 2,626,171.61 1,336,189.77
Guarantee and security deposits 2,153,199.68 8,133,397.66
Total 1,300,661,476.86 1,288,457,982.86
(2) Cash related to investment activities
Other cash received in relation to investment activities
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In RMB
Item Amount incurred in the current period Amount incurred in the previous period
Fixed deposit maturity 3,100,000,000.00
Fixed deposit interest 47,278,944.57
Total 3,147,278,944.57
Other cash paid relating to investment activities
In RMB
Item Amount incurred in the current period Amount incurred in the previous period
Fixed deposit 3,450,000,000.00
Total 3,450,000,000.00
(3) Cash related to financing activities
Other cash received in relation to financing activities
In RMB
Item Amount incurred in the current period Amount incurred in the previous period
Income from accounts receivable
500,000.00 6,482,178.88
factoring
Total 500,000.00 6,482,178.88
Other cash paid in relation to financing activities
In RMB
Item Amount incurred in the current period Amount incurred in the previous period
Rental 3,198,439.08 3,212,200.53
Total 3,198,439.08 3,212,200.53
Changes in liabilities arising from financing activities
□Applicable Not applicable
55. Supplementary information of Cash Flow Statement
(1) Supplementary information of Cash Flow Statement
In RMB
Supplementary information Current amount Amount of the previous period
1.Reconciliation of net profit to cash
flow from operating activities:
Net profit 748,905,898.34 823,242,258.65
Add: Asset impairment provision 3,305,585.67 -19,369,130.26
Depreciation of fixed assets,
depreciation of oil and gas assets, and
83,105,764.28 76,275,036.48
depreciation of productive biological
assets
Depreciation of right-of-use
2,597,529.36 2,662,033.50
assets
Amortization of intangible assets 7,103,799.90 6,770,682.50
Amortization of long-term
2,126,181.41 2,079,639.11
deferred expenses
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Losses arising from disposal of
fixed assets, intangible assets and other
761,243.36 576,718.41
long-term assets (gains expressed with "-
")
Losses on disposal of fixed assets
1,521.37 673.95
(gains indicated with "-")
Losses from fair value change
(gains expressed with “-”)
Financial expenses (profit shall
-46,072,895.01 -1,152,076.14
be indicated with"-")
Investment losses (gains
-18,060,180.26 -21,723,618.81
expressed with “-”)
Decrease in deferred income tax
assets (increase shall be indicated with “- -31,185,395.96 -34,832,967.10
”)
Increase in deferred income tax
liabilities (decrease shall be indicated 1,412,608.38 -618,972.03
with “-”)
Decrease in inventories (increase
125,001,086.13 83,112,866.12
shall be indicated with “-”)
Decrease in operating receivables
202,662,034.39 80,656,601.27
(increase shall be indicated with “-”)
Increase in operating payables
-667,659,189.97 -37,946,892.42
(decrease expressed with "-")
Others
Net cash flow from operating
414,005,591.39 959,732,853.23
activities
2.Non-cash flow-involved major
investing and financing activities:
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets acquired under financing
leases
3.Net increase/decrease in cash and cash
equivalents:
Ending balance of cash 1,016,889,300.64 5,777,869,909.08
Less: cash beginning balance 1,878,166,358.09 5,196,414,341.74
Add: ending balance of cash
equivalents
Less: cash equivalents at the beginning
of the period
Net increase in cash and cash
-861,277,057.45 581,455,567.34
equivalents
(2) Composition of cash and cash equivalents
In RMB
Item Ending balance Beginning balance
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I. Cash 1,016,889,300.64 1,878,166,358.09
Including: cash on hand 232,660.84 62,267.64
deposits available for payment at
1,015,800,859.35 1,877,703,911.46
any time
other cash and cash equivalents
855,780.45 400,178.99
available for payment at any time
III. Balance of cash and cash equivalents
1,016,889,300.64 1,878,166,358.09
at the end of the period
56. Foreign currency monetary item
(1) Foreign currency monetary item
In RMB
Ending balance in foreign
Item Exchange rate for conversion Ending balance in RMB
currency
Cash and cash equivalents
Including: USD 2,114,505.84 7.1268 15,069,660.22
EUR 5,853.93 7.6617 44,851.06
Hong Kong Dollar 21.90 0.91268 19.99
Australian Dollar 513.85 4.765 2,448.50
Accounts receivable
Including: USD 3,849,841.39 7.1268 27,437,049.62
EUR
Hong Kong Dollar
Australian Dollar 30.00 4.765 142.95
(2) Description for overseas operating entities, including the disclosure of the main business location
overseas, bookkeeping base currency and selection basis for the important business entity overseas as
well as the reason for the change of bookkeeping base currency (if any).
□Applicable Not applicable
VIII. R&D expenditure
In RMB
Item Amount incurred in the current period Amount incurred in the previous period
Total 178,373,820.48 172,734,141.15
Including: Expensed R&D expenditure 178,373,820.48 172,734,141.15
IX. Changes in the scope of consolidated financial statements
1. Changes in the scope of consolidated financial statements due to other reasons
On January 26, 2024, the General Manager's Office Meeting passed the following resolution: Robam
Appliances Holding (HK) Co., Ltd. establishes a wholly-owned subsidiary, Robam Appliances U.S.
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Holding Co., Ltd., with a registered capital of USD 5,000. Robam Appliances U.S. Holding Co., Ltd. and
WGSZ HOLDING LLC jointly establishes Robam Appliances Los Angeles Trade, with a registered
capital of USD 10,000. Robam Appliances U.S. Holding Co., Ltd. holds 70% of the shares, while WGSZ
HOLDING LLC holds 30%. Robam Appliances Los Angeles Trade will primarily engage in the sales of
large household kitchen appliances.
On January 29, 2024, Robam Appliances U.S. Holding Co., Ltd. was officially established and
obtained its registration certificate. The registered address is: 8 The Green, Ste A, Dover, DE 19901.
On March 26, 2024, Robam Appliances Los Angeles Trade was officially established and obtained its
registration certificate. The registered address is: 324 S Diamond Bar Blvd, Unit Num 717, Diamond Bar,
CA 91765.
On March 11, 2024, the General Manager's Office Meeting passed a resolution to establish Chengdu
Robam Innovation Technology Co., Ltd. The Chengdu subsidiary completed its business registration on
March 27, 2024, with a registered capital of RMB 5,000,000. The Unified Social Credit Code is
91510100MADF89W069. The legal representative is Ge Hao. The registered address is: 2902, 2903, 2904,
Building A, No. 500, Tianfu Avenue Middle Section, Chengdu High-tech Zone, China (Sichuan) Pilot Free
Trade Zone. The main business scope includes technology development and services.
X. Interests in Other Entities
1. Equity in subsidiaries
(1) Composition of the Robam Group
In RMB
Principal Shareholding ratio
Registrati
Subsidiary place of Nature of business Acquisition method
on place Direct Indirect
business
Beijing Robam Appliances Sales of kitchen 100.00 Business merger under
Beijing Beijing
Sales Co., Ltd. appliances % comm on control
Shanghai Robam Appliances Sales of kitchen 100.00 Business merger under
Shanghai Shanghai
Sales Co., Ltd. appliances % comm on control
Hangzhou MingQi Electric Hangzho Hangzho Sales of kitchen 100.00 Acquisition upon its
Co., Ltd. u u appliances % establishment
De Dietrich Household
Sales of kitchen Acquisition upon its
Appliances Trading Shanghai Shanghai 51.00%
appliances establishment
(Shanghai) Co., Ltd.
Production and
Shengzhou Kinde Intelligent Shengzh Shengzho Business merger not
sales of kitchen 51.00%
Kitchen Appliance Co., Ltd. ou u under common control
appliances
Hangzhou Robam Fuchuang
Hangzho Hangzho Asset, investment 100.00 Acquisition upon its
Investment Management Co.,
u u management, etc. % establishment
Ltd.
Zhejiang Cookingfuture Shengzh Shengzho Smart kitchen Acquisition upon its
32.13%
Technology Co., Ltd. ou u design establishment
Hangzhou Jinhe Electric Hangzho Hangzho Sales of kitchen 100.00 Acquisition upon its
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Appliances Co., Ltd. u u appliances % establishment
Robam Appliances Holding Hong Hong Asset, investment 100.00 Acquisition upon its
(HK) Co., Ltd. Kong Kong management, etc. % establishment
International trade
Robam International (HK) Hong Hong Acquisition upon its
of kitchen 100.00%
Trading Co., Ltd. Kong Kong establishment
appliances
Technology
Chengdu Robam Innovation Chengdu Chengdu 100.00 Acquisition upon its
development and
Technology Co., Ltd. City City % establishment
services
Robam Appliances U.S. United United Asset, investment Acquisition upon its
100.00%
Holding Co., Ltd. States States management, etc. establishment
Robam Appliances Los United United Sales of kitchen Acquisition upon its
70.00%
Angeles Trade Co., Ltd. States States appliances establishment
Other description:
Note: The Company holds 50% or less voting rights in Zhejiang Cookingfuture Technology Co., Ltd.,
but still maintains control over it. This is based on the fact that the Company has a controlling relationship
with Shengzhou Kinde, so the Company has a controlling relationship with its holding subsidiary Zhejiang
Cookingfuture Technology Co., Ltd.
On January 6, 2022, Shengzhou Kinde Intelligent Kitchen Appliance Co., Ltd., a subsidiary of the
Company, signed an Equity Transfer Agreement with Gongqingcheng Binglan Investment Partnership
(Limited Partnership). According to the agreement, Shengzhou Kinde Intelligent Kitchen Appliance Co.,
Ltd. shall transfer its 7% equity stake in Cooking Future Technology Co., Ltd. to Gongqingcheng Binglan
Investment Partnership (Limited Partnership). As a result, the equity stake of Shengzhou Kinde Intelligent
Kitchen Appliance Co., Ltd. shall decrease from 70% to 63%, and the Company's stake shall decrease
from 35.70% to 32.13%.
(2) Major non-wholly owned subsidiaries
In RMB
Gains/losses Dividend declared and
Proportion of shares
attributable to minority distributed to minority Shengzhou Kinde
Subsidiary held by minority
shareholders in the shareholders in the Intelligent Kitchen
shareholders
current period current period
Shengzhou Kinde
Intelligent Kitchen 49.00% -6,703,313.43 -98,129,106.28
Appliance Co., Ltd.
Zhejiang
Cookingfuture 37.00% -2,700,699.30 3,457,434.62
Technology Co., Ltd.
Robam Appliances Los
Angeles Trade Co., 30.00% -1,049,009.80 -1,049,009.80
Ltd.
(3) Main financial information of important partially-owned subsidiaries
In RMB
Subsid Ending balance Beginning balance
iary Curren Non- Total Curren Non- Total Curren Non- Total Curren Non- Total
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t assets current assets t current liabiliti t assets current assets t current liabiliti
assets liabiliti liabiliti es assets liabiliti liabiliti es
es es es es
Sheng
zhou
Kinde
Intellig
ent 111,73 329,62 441,36 197,42 42,090 239,51 109,44 341,07 450,51 188,64 41,769 230,41
Kitche 2,108. 9,631. 1,739. 2,945. ,948.0 3,894. 1,329. 4,155. 5,484. 4,246. ,390.8 3,637.
n 81 12 93 98 4 02 81 13 94 55 3 38
Applia
nce
Co.,
Ltd.
Zhejia
ng
Cooki
ngfutu 24,279 31,133 21,789 21,789 17,730 25,169
6,854, 7,438, 8,525, 8,525,
re ,040.4 ,643.5 ,225.6 ,225.6 ,954.2 ,532.7
603.08 578.53 927.58 927.58
Techn 3 1 5 5 2 5
ology
Co.,
Ltd.
Robam
Applia
nces
Los 18,686 18,686
9,724, 9,724,
Angele ,423.4 ,423.4
347.63 347.63
s 1 1
Trade
Co.,
Ltd.
In RMB
Amount incurred in the current period Amount incurred in the previous period
Total Total
Subsidiary Operating comprehen Operating Operating comprehen Operating
Net profit Net profit
income sive cash flow income sive cash flow
income income
Shengzhou
Kinde
- - - - - -
Intelligent 52,276,50 67,284,556.
16,380,401. 16,380,401. 19,588,199. 10,892,781. 10,892,781. 37,399,921.
Kitchen 6.48 69
60 60 17 85 85 57
Appliance
Co., Ltd.
Zhejiang
Cookingfutu - - - - -
3,303,023. 3,530,135.5 1,510,766.4
re 7,299,187.3 7,299,187.3 6,034,482.4 6,034,482.4 8,517,161.8
08 6 5
Technology 1 1 1 1 3
Co., Ltd.
Robam
Appliances - - -
2,451,606.
Los Angeles 3,496,699.3 3,496,699.3 7,998,182.7
70
Trade Co., 2 2 9
Ltd.
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2. Equity in joint ventures or associates
(1) Summary of the financial information of minor joint ventures and associates
In RMB
Ending balance/amount incurred in Beginning balance/ amount incurred in
current period last period
Joint venture:
Total book value of investment 1,097,575.77 4,321,729.39
Totals of the following items calculated
as per respective shareholding proportion
--Net profit -3,224,153.62 497,269.36
-Total comprehensive income -3,224,153.62 497,269.36
Associated company:
Total book value of investment 3,881,360.54 4,105,720.85
Totals of the following items calculated
as per respective shareholding proportion
--Net profit -224,360.31 -788,324.74
-Total comprehensive income -224,360.31 -788,324.74
Other description
Shareholding Accounting
Name of joint Principal (%) treatment for
Registration Nature of
ventures and place of investment in joint
place business
associates business Direct Indirect ventures and
associates
De Dietrich
Appliances Sales of kitchen
Shanghai Shanghai 51.00 Equity method
Trading (Shanghai) appliances
Co., Ltd.
Zhejiang Tingshuo
Brand Operation
Hangzhou Hangzhou Retail 40.00 Equity method
Management Co.,
Ltd.
Shaoxing Shuaige
Kitchen and Kitchen
Bathroom Shaoxing Shaoxing appliance 40.00 Equity method
Technology Co., manufacturing
Ltd.
XI. Government grants
1. Government grants recognized based on receivables at the end of the reporting period
□Applicable Not applicable
Reasons for not receiving the projected amount of government grants at the projected point in time
□Applicable Not applicable
2. Liabilities involving government grants
Applicable □Not applicable
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In RMB
Amount
included
Added Amount
in non- Other
subsidy transferred to Related to
Beginning operating changes
Account amount in other income in Ending balance assets/inco
balance income this
the current the current me
in the period
period period
current
period
Deferred Related to
136,538,254.74 11,038,705.47 125,499,549.27
income assets
Total 136,538,254.74 11,038,705.47 125,499,549.27
3. Government grants included in the current profit or loss
Applicable □Not applicable
In RMB
Account Amount incurred in the current period Amount incurred in the previous period
Other income 85,214,034.47 70,659,558.76
Other description:
XII. Risks Relating to Financial Instruments
1. Various risks arising from financial instruments
Major financial instruments of the Company include accounts receivable, accounts payable, etc. See
Note VI for detailed description of these financial instruments. Risks related to these financial instruments
and risk management policies adopted by the Company to reduce such risks are outlined as follows. The
management of the Company manages and monitors such risk exposures to ensure to keep the risks above
within limited scope.
The Company's various risk management objectives and policies are outlined as follows:
Risk management conducted by the Company is to properly balance risk and income, minimize
negative impacts of the risks on the Company’s business performance and maximize benefits of the
shareholders and other equity investors. Based on the risk management objective, the Company’s basic
risk management policy is to determine and analyze all kinds of risks faced by the Company, establish
appropriate risk bottom line for risk management, and monitor all risks promptly and reliably to keep risks
within a limited range.
Market risk price risk
Since the Company sells its products at market prices, it may be affected by such price fluctuations.
Credit risk
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As of June 30, 2024, the biggest credit risk exposure that may bring financial loss to the Company
mainly comes from the Company’s financial assets loss caused by the other party’s failure to perform its
obligations in the contract, particularly including the loss in the book value of recognized financial assets
in the consolidated balance sheet.
To reduce credit risk, the Company has a dedicated team responsible for determining the credit line,
conducting credit approval and implementing other monitoring procedures, to ensure that necessary
measures are taken to recover due debt. In addition, the Company reviews the recovery of each account
payable on each balance sheet date, so as to ensure sufficient bad debt provisions for unrecoverable
accounts. Therefore, the management of the Company holds that the credit risk faced by the Company has
been significantly reduced.
The credit risk of the Company’s liquid capital is low since it is deposited at banks with relatively
high credit rating.
Because the risk exposures of the Company are related to multiple contracting parties and multiple
clients, the Company has no major credit risk concentration.
The Company adopts necessary policies to ensure all of the clients involved in the sales of our
products have good credit record. The Company has no major credit risk concentration.
Total amount of the top five accounts receivable: RMB 1,721,028,638.79.
Total amount of the top five other accounts receivable: RMB 29,489,661.18
Liquidity risk
Liquidity risk is faced by the Company where it cannot meet its financial obligations as they fall due.
The Company manages the liquidity risk by ensuring capital liquidity to fulfill its due obligations to avoid
unacceptable losses or damages to corporate reputation. The Company management has closely examined
the liquid assets of the Company and regularly analyzed the liability structure/term and bank lines and so
on to endure fund sufficiency. It is concluded that the Company has sufficient funds to meet the demands
of short-term loans and capital expenditure of the Company. Analysis of the financial assets and financial
liabilities of the Company as per maturity of the undiscounted contract obligations remained is made as
follows:
Balance on June 30, 2024
Item Within 1 year 1-2 years 2-5 years Over 5 years Total
Financial asset
Cash and cash
1,147,837,731.76 1,147,837,731.76
equivalents
Financial assets
2,551,000,029.50 2,551,000,029.50
held for trading
Notes receivable 368,798,633.67 368,798,633.67
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Accounts receivable 1,863,130,927.89 1,863,130,927.89
Other receivables 86,770,440.47 86,770,440.47
Other current assets
1,548,608,076.94 1,548,608,076.94
Other non-current
financial assets
580,000,000.00 580,000,000.00
Other non-current
assets
20,000,000.00 3,220,000,000.00 3,240,000,000.00
Financial liabilities
Short-term loans 115,003,320.70 115,003,320.70
Notes payables 993,551,028.00 993,551,028.00
Accounts payable 2,384,005,428.78 2,384,005,428.78
Other payables 290,336,577.77 290,336,577.77
Payroll payable 39,032,647.38 39,032,647.38
Other current
94,072,365.82 94,072,365.82
liabilities
Non-current
liabilities due within 2,163,637.20 2,163,637.20
one year
Lease liabilities 2,488,952.25 5,148,043.33 2,706,464.25 10,343,459.83
Sensitivity analysis of foreign exchange risk
The exchange rate risk borne by the Company is mainly associated with USD, Euro and AUD, etc.
The Company's main business activities priced and settled in RMB. The Company’s main business
activities priced and settled in RMB. As of June 30, 2024, the Company’s balances of assets and liabilities
are in RMB (except for the balances of the assets and liabilities in foreign currency in "VI. 56 Monetary
items in foreign currency" in this Note). Exchange risk resulting from the assets and liabilities whose
balances are in foreign currency may affect the Company’s performance.
The Company pays close attention to the impact of change in exchange rate on the Company’s
exchange risk. Currently, the Company hasn’t adopted any measures to avoid foreign exchange risk.
XIII. Disclosure of Fair Value
1. Fair value at end of the period of assets and liabilities measured at fair value
In RMB
Ending fair value
Item Fair value Fair value Fair value
Total
measurement (Level 1) measurement (Level 2) measurement (Level 3)
Continuous fair value
-- -- -- --
measurement
(I) Financial assets
2,551,000,029.50 2,551,000,029.50
held for trading
1. Financial assets
measured at fair value 2,551,000,029.50 2,551,000,029.50
with changes included
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in current profit or loss
(1) Financial products 2,551,000,029.50 2,551,000,029.50
(III) Investment in
other equity 2,116,023.22 2,116,023.22
instruments
(VI) Other non-current
580,000,000.00 580,000,000.00
financial assets
1. Financial assets
measured at fair value
580,000,000.00 580,000,000.00
with changes included
in current profit or loss
(1) Financial products 580,000,000.00 580,000,000.00
Total assets measured
continuously at fair 3,133,116,052.72 3,133,116,052.72
value
II. Non-continuous fair
-- -- -- --
value measurement
2. Valuation techniques adopted and qualitative and quantitative information on important parameters
for the items involved in Level 3 continuous and non-continuous fair value measurement
Relationship
Significant between
June 30, 2024
Item Valuation techniques unobservable unobservable
Fair value
value value and fair
value
Optimal fair value Investment
financial products 3,131,000,029.50 —
estimation cost
Investment in other Optimal fair value Investment
2,116,023.22 —
equity instruments estimation cost
Note: Due to the deteriorating operating environment, operating conditions and financial status of the
invested company, Suzhou Industrial Park Ruican Investment Enterprise (Limited Partnership), the
Company measured its fair value at zero yuan as a reasonable estimate.
XIV. Related Party and Related Party Transactions
1. The Company's parent company
Proportion of
Proportion of the Company's shares
Parent company Registration place Nature of business Registered capital voting right of the held by the parent
parent company company in the
Company
Hangzhou Robam Investment and
Hangzhou,
Industrial Group industrial RMB 60 million 49.68% 49.68%
Zhejiang
Co., Ltd. management
Description of the parent company
The ultimate controlling party of the Company is Ren Jianhua.
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2. The Company's subsidiaries
See Note "Equity in Subsidiaries" for more about the Company's subsidiaries.
3. The Company's joint ventures and associated companies
See Note "Immaterial joint ventures and associates" for more about the Company’s joint ventures or associated companies.
4. Other related parties
Name of other related parties Relation between other related parties and the Company
Hangzhou Amblem Household Co., Ltd. Controlled by the same ultimate controlling party
Hangzhou Yuhang Robam Fuel Station Co., Ltd. Controlled by the same ultimate controlling party
Hangzhou Nbond Nonwovens Co., Ltd. Controlled by the same ultimate controlling party
Hangzhou Bonyee Daily Necessity Technology Co., Ltd. Controlled by the same ultimate controlling party
Hangzhou Guoguang Touring Commodity Co., Ltd. Controlled by the same ultimate controlling party
Hangzhou Xiaozhijia Health Care Product Co., Ltd. Controlled by the same ultimate controlling party
Hangzhou Yuhang Yaguang Spray Coating Factory Other related parties
Hangzhou City Garden Hotel Co., Ltd. Other related parties
Shaoxing Kinde Electric Appliances Co., Ltd. Other related parties
Hangzhou Linping ROBAM Charity Foundation Other related parties
Hangzhou Runqun Hardware Co., Ltd. Other related parties
5. Related transactions
(1) Related transactions regarding purchasing and selling goods and providing and accepting labor
services
Table of the purchasing of goods and receiving of labor services
In RMB
Description
Amount Whether exceeds Amount
of the Trading limit
Related parties incurred in the the approved incurred in the
related approved
current period limited or not (Y/N) previous period
transaction
Hangzhou Runqun Hardware Purchase of
5,024,244.72 3,569,947.74
Co., Ltd. goods
Hangzhou Xiaozhijia Health Purchase of
1,528,600.79 1,046,680.73
Care Product Co., Ltd. goods
Shaoxing Shuaige Kitchen and Purchase of
1,405,582.77 439,198.72
Bathroom Technology Co., Ltd. goods
Hangzhou Amblem Household Purchase of
1,015,191.01 845,058.44
Co., Ltd. goods
Receiving
Hangzhou City Garden Hotel
of labor 852,662.55
Co., Ltd.
services
Hangzhou Yuhang Robam Fuel Purchase of
394,469.78 429,770.25
Station Co., Ltd. goods
Hangzhou Guoguang Touring Purchase of
13,982.30 13,954.34
Commodity Co., Ltd. goods
Receiving
Hangzhou Yuhang Yaguang
of labor 805,737.85
Spray Coating Factory
services
Hangzhou Bonyee Daily Purchase of 4,470.08
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Necessity Technology Co., Ltd. goods
Total 10,234,733.92 7,154,818.15
Goods Sales/labor service provision
In RMB
Description of the related Amount incurred in the Amount incurred in the
Related parties
transaction current period previous period
Hangzhou Linping ROBAM
Sale of goods 1,124,610.65 1,001,649.72
Charity Foundation
Hangzhou Amblem
Sale of goods 976,921.25 1,629,834.52
Household Co., Ltd.
Hangzhou Nbond Nonwovens
Sale of goods 15,216.05 16,429.20
Co., Ltd.
Total 2,116,747.95 2,647,913.44
(2) Related lease
The Company acts as the lessor:
In RMB
Rental income recognized in Rental income recognized in
Lessee Type of leased asset
the current period the previous period
Hangzhou Robam Industrial
Housing 14,400.00 14,400.00
Group Co., Ltd.
Shaoxing Shuaige Kitchen and
Housing 339,922.70 235,163.52
Bathroom Technology Co., Ltd.
The Company acts as the Lessee:
In RMB
Rental expenses Variable lease
for simplified payments not
Interest expense
short-term leases included in the Increased right-of-
Rental paid incurred on lease
and leases of low- measurement of use assets
liabilities
value assets (if lease liabilities (if
Type of applicable) applicable)
Lessor leased
asset Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun
t t t t t t t t t t
incurre incurre incurre incurre incurre incurre incurre incurre incurre incurre
d in the d in the d in the d in the d in the d in the d in the d in the d in the d in the
current previou current previou current previou current previou current previou
period s period period s period period s period period s period period s period
Hangzh
ou
Robam
Industri Housin 275,012 275,012 275,012 275,012
al g .28 .28 .28 .28
Group
Co.,
Ltd.
(3) Benefits of key management personnel
Unit: RMB 10,000
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Item Amount incurred in the current period Amount incurred in the previous period
Total remuneration RMB 4,120,900 RMB 4,279,000
6. Receivables and payables of related parties
(1) Accounts receivable
In RMB
Ending balance Beginning balance
Project Related parties Bad debt Bad debt
Book balance Book balance
provision provision
Accounts Hangzhou Linping ROBAM
1,089,782.00 54,489.10
receivable Charity Foundation
Accounts De Dietrich Appliances Trading
1,051,825.87 52,591.29 1,051,825.87 52,591.29
receivable (Shanghai) Co., Ltd.
Accounts Hangzhou Amblem Household
176,456.00 8,822.80
receivable Co., Ltd.
Hangzhou Amblem Household
Prepayments 20,000.00
Co., Ltd.
Total 2,338,063.87 115,903.19 1,051,825.87 52,591.29
(2) Accounts payable
In RMB
Book balance at the end of Initial book balance at the
Project Related parties
the period beginning of the period
Hangzhou Yuhang Robam Fuel
Accounts payable 4,182,748.79 3,736,997.95
Station Co., Ltd.
Hangzhou Runqun Hardware
Accounts payable 3,438,501.95 4,936,378.35
Co., Ltd.
Hangzhou Amblem Household
Accounts payable 1,115,529.19 1,366,001.27
Co., Ltd.
Shaoxing Shuaige Kitchen and
Accounts payable 423,399.45
Bathroom Technology Co., Ltd.
Hangzhou Xiaozhijia Health
Accounts payable 396,601.29
Care Product Co., Ltd.
Hangzhou Runqun Hardware
Other payables 200,000.00 200,000.00
Co., Ltd.
Hangzhou Amblem Household
Other payables 5,000.00 5,000.00
Co., Ltd.
Hangzhou Guoguang Touring
Other payables 2,000.00 2,000.00
Commodity Co., Ltd.
Total 9,763,780.67 10,246,377.57
XV. Share-based Payment
1. Overview of share payment
Applicable □Not applicable
Unit: RMB 10,000
Category of Awarded during the Exercise during the period Unlocking in the current Expired in the current
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grant period period period
recipients Number Amount Number Amount Number Amount Number Amount
Manageme
nt 569.00 5,193.26 90.18 302.96 319.08 1,380.47
personnel
Total 569.00 5,193.26 90.18 302.96 319.08 1,380.47
Stock options or other equity instruments issued at the end of the period and held by external parties
□Applicable Not applicable
Other description
On May 16, 2024, the Company held the 2023 Annual General Meeting of Shareholders and
deliberated and adopted the Proposal on 2024 Stock Option Incentive Plan (Draft) of the Company and Its
Summary and other related proposals. On May 20, 2021, the 6th Meeting of the 6th Board of Directors of
the Company deliberated and approved the Proposal on the Granting Stock Options to Incentive Targets.
The stock option incentive grant date was May 20, 2024. A total of 337 individuals were granted options,
amounting to 5.69 million shares, with an exercise price of RMB 18.92 per share. On June 24, 2024, the
stock option grants were officially registered.
On June 20, 2024, the 8th meeting of the 6th board of directors and the 8th meeting of the 6th board
of supervisors reviewed and approved the Proposal on the Achievement of Exercise Condition during the
First Exercise Period of the 2023 Stock Option Incentive Plan. The exercise condition of the first exercise
period of the 2023 stock option incentive plan has been met. Of the 293 eligible individuals, a total of
901,800 stock options are exercisable at an exercise price of RMB 21.01 per share. As of June 30, 2024, no
incentives have been exercised.
2. Equity-settled share-based payment
Applicable □Not applicable
In RMB
The Company evaluates the fair value of stock options using
Method for determining the fair value of equity instruments on
the internationally recognized Black-Scholes option pricing
the grant date
model.
Important parameters for determining the fair value of equity
Best estimate of the number of vested equity instruments
instruments on the grant date
basis for determining the number of vested equity instruments N/A
Reasons for material differences between the current estimate
N/A
and the previous estimate
Cumulative amount of equity-settled share-based payments
18,333,587.85
included in the capital reserve
Total expense recognized for equity-settled share-based
8,698,813.25
payments in the current period
3. Cash-settled share-based payment
□Applicable Not applicable
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4. Share-based payment for the current period
Applicable □Not applicable
In RMB
Equity-settled share-based payment Cash-settled share-based payment
Category of grant recipients
expense expense
Management personnel 8,698,813.25
Total 8,698,813.25
XVI. Commitments and Contingencies
1. Major commitments
(1) Major commitments on the balance sheet date
Investment commitments to subsidiaries and associates
The Company committed to investing RMB 4 million in Zhejiang Tingshuo Brand Operation
Management Co., Ltd., of which RMB 2 million has been paid in, accounting for 40% of the shares. The
remaining RMB 2 million has not been paid in.
Apart from the above-mentioned commitments, the Company has no other significant commitments.
2. Contingencies
(1) It’s also necessary to make it clear hereby that the Company has no major contingencies that need to
be disclosed
The Company has no significant or pending matters that need to be disclosed.
XVII. Events After the Balance Sheet Date
1. Profit distribution
The proposed dividend per 10 shares (RMB) 5
The proposed number of bonus shares per 10 shares (shares) 0
The proposed number of additional shares per 10 shares
0
(shares)
The dividend per 10 shares declared and approved for
5
distribution (RMB)
The number of bonus shares per 10 shares declared and
0
approved for distribution (shares)
The number of additional shares per 10 shares declared and
0
approved for distribution (shares)
As of June 30, 2024, the undistributed profits of the parent
Profit distribution
company amounted to RMB 9,349,860,281.22. According to
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the resolution of the board of directors, the Company plans to
implement mid-term dividend distribution to reward its
shareholders. The specific dividend distribution plan is as
follows:
(1) The Company plans to distribute cash dividends of RMB 5
per 10 shares (including tax) to all shareholders, based on the
total share capital of 944,127,316 shares as of July 31, 2024.
The total amount of dividends to be distributed is RMB
472,063,658.00.
(2) Purpose of mid-term dividend distribution: first, to meet the
needs of the Company's long-term stable and healthy
development; second, to increase cash dividend distribution to
boost market confidence, while ensuring that the Company's
normal operations and long-term development are not affected;
third, to actively reward shareholders, share the Company's
development dividends with them, and enhance their sense of
gain.
If the Company’s share capital changes due to reasons such as
new shares being listed, stock option exercises, convertible
bonds being converted into shares, or share repurchases
between the announcement of the distribution plan and the
equity registration date for the dividend distribution,
adjustments will be made based on the principle of
"maintaining the distribution ratio and adjusting the total
distribution amount accordingly".
2. Subsequent events after the balance sheet date
1. Important non-adjustment matters
(1) Debt restructuring matters after the period
As of the reporting date, the Company has entered into new debt settlement agreements with accounts
receivable amounting to RMB 24.0659 million. For agreements signed prior to the semi-annual period of
2024, RMB 8.9441 million has been processed through online signing and property transfer procedures
between the balance sheet date and the reporting date.
Apart from the above-mentioned matters, the Company has no other significant subsequent events.
(2) Inventory stock cancellation
On June 3, 2024, the Company held the 7th meeting of the 6th board of directors and the 7th meeting
of the 6th supervisory board, where the Proposal to Cancel Repurchased A-shares and Reduce the
Registered Capital by Amending the Articles of Association was approved. The Company plans to cancel
4,929,134 shares held in its repurchase special securities account. On June 19, 2024, the Company's first
extraordinary general meeting of shareholders for 2024 was convened, which deliberated and approved the
Proposal to Cancel Repurchased A-shares and Reduce the Registered Capital by Amending the Articles of
Association. The cancellation was completed on July 3, 2024.
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XVIII. Other Significant Events
1. Debt restructuring
As of June 30, 2024, the Company's situation regarding the signing of agreement on properties exchanged
for construction services and the completion of procedures for purchasing houses through online signing is
as follows:
Including: Amount
Amount required in case
Amount of debt required for completion of
of unfinished procedures
Item repayment agreement procedures for online
for online signing or
signed signing and delivery of
delivery of houses
houses
Real estate clients 569,023,648.37 134,223,212.67 434,800,435.70
Total 569,023,648.37 134,223,212.67 434,800,435.70
The Company signed an agreement on properties exchanged for construction services with the
aforementioned real estate clients, involving a total accounts receivable balance of RMB 569,023,600. The
procedures for online signing and delivery of the portion of RMB 139,726,900 has been completed, and
the recognition of creditor's rights on accounts receivable has been terminated. The fair value of the real
estate used for debt repayment at the time point of debt restructuring is presented in the item of other non-
current assets, with a fair value of the portion of RMB 139,726,900 confirmed through public market
inquiry. The Company paid a price difference of RMB 5,503,700 in cash. At the time point of debt
restructuring, there was no profit or loss from the restructuring. The procedures for online signing and
filing of the houses have not yet been completed for the remaining portion of RMB 434,800,400. The
Company has not terminated the recognition of the creditor's rights on accounts receivable and has made a
bad debt provision at an expected credit loss rate of 35%.
XIX. Notes to Main Items of the Financial Statements of the Parent Company
1.Accounts receivable
(1) Disclosure by aging of accounts
In RMB
Initial book balance at the beginning of
Age Book balance at the end of the period
the period
Within 1 year (including 1 year) 1,498,585,068.97 1,489,994,730.67
1-2 years 510,711,550.14 472,477,129.39
2-3 years 694,954,788.07 885,752,898.72
More than 3 years 308,799,643.65 45,010,462.60
3-4 years 297,161,038.69 34,537,581.13
4-5 years 5,845,857.62 6,215,681.25
More than 5 years 5,792,747.34 4,257,200.22
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Total 3,013,051,050.83 2,893,235,221.38
(2) Classification of disclosure according to the bad debt provision method
In RMB
Ending balance Beginning balance
Book balance Bad debt provision Book balance Bad debt provision
Type Percenta Book Percenta Book
Percenta ge of value Percenta ge of value
Amount Amount Amount Amount
ge (%) provisio ge (%) provisio
n n
Account
s
receivab
le with
1,542,17 1,040,57 501,594, 1,550,30 1,053,48 496,813,
individu 51.18% 67.47% 53.58% 67.95%
0,003.24 5,707.96 295.28 0,627.39 7,050.41 576.98
al bad
debt
provisio
ns
Includ
ing:
Account
s
receivab
le with a
1,470,88 93,068,3 1,377,81 1,342,93 83,899,5 1,259,03
collectiv 48.82% 6.33% 46.42% 6.25%
1,047.59 83.60 2,663.99 4,593.99 80.41 5,013.58
e bad
debt
provisio
n
Includ
ing:
Account
s
receivab
le
181,016, 181,016, 98,882,5 98,882,5
grouped 6.01% 3.42%
597.89 597.89 76.05 76.05
accordin
g to
related
parties
Aging
1,289,86 93,068,3 1,196,79 1,244,05 83,899,5 1,160,15
combina 42.81% 7.22% 43.00% 6.74%
4,449.70 83.60 6,066.10 2,017.94 80.41 2,437.53
tion
3,013,05 1,133,64 1,879,40 2,893,23 1,137,38 1,755,84
Total 100.00% 37.62% 100.00% 39.31%
1,050.83 4,091.56 6,959.27 5,221.38 6,630.82 8,590.56
Category by individual bad debt provision:
In RMB
Beginning balance Ending balance
Name Bad debt Bad debt Percentage of Reasons for
Book balance Book balance
provision provision provision provision
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Expected to be
Unit 1 660,039,726.23 660,039,726.23 658,945,936.78 658,945,936.78 100.00%
difficult to recover
Expected to be
Unit 2 364,027,062.34 109,208,118.70 337,200,324.44 101,160,097.33 30.00% difficult to fully
recover
Expected to be
Unit 3 201,626,455.66 86,259,958.01 241,053,412.05 105,439,212.41 43.74% difficult to fully
recover
Expected to be
Unit 4 103,644,563.87 62,549,255.29 95,720,766.37 61,418,433.11 64.16% difficult to fully
recover
Expected to be
Unit 5 29,833,027.36 20,883,119.15 27,931,724.10 14,952,948.85 53.53% difficult to fully
recover
Expected to be
Unit 6 28,796,628.81 12,808,177.77 28,769,213.01 10,387,277.95 36.11% difficult to fully
recover
Expected to be
Unit 7 25,826,189.64 17,748,183.70 23,326,159.14 14,689,394.40 62.97% difficult to fully
recover
Expected to be
Unit 8 22,983,529.61 15,004,193.26 21,737,772.41 10,699,859.15 49.22% difficult to fully
recover
Expected to be
Unit 9 15,100,611.29 8,471,506.90 15,028,917.55 8,113,002.52 53.98% difficult to fully
recover
Expected to be
Unit 10 13,643,117.43 7,265,607.25 13,818,085.83 7,388,085.13 53.47% difficult to fully
recover
Expected to be
Unit 11 11,403,482.66 6,897,017.86 9,080,624.77 5,372,708.62 59.17% difficult to fully
recover
Expected to be
Unit 12 9,391,156.30 4,698,425.06 8,175,161.48 3,847,228.69 47.06% difficult to fully
recover
Expected to be
Unit 13 9,180,961.06 9,180,961.06 9,180,961.06 9,180,961.06 100.00%
difficult to recover
Expected to be
Unit 14 8,175,007.62 3,440,071.29 8,175,007.62 3,440,071.29 42.08% difficult to fully
recover
Expected to be
Unit 15 7,305,800.75 5,114,060.53 7,151,711.18 2,896,821.17 40.51% difficult to fully
recover
Expected to be
Unit 16 3,921,670.93 2,745,169.65 5,133,382.93 3,593,368.05 70.00% difficult to fully
recover
Expected to be
Unit 17 3,616,362.19 2,531,453.53 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 3,584,790.07 1,672,115.95 46.64% difficult to fully
recover
Expected to be
Unit 19 3,310,609.08 1,715,551.82 3,519,010.46 1,829,963.77 52.00% difficult to fully
recover
Expected to be
Unit 20 3,056,422.32 1,145,907.85 1,746,554.15 1,222,587.91 70.00%
difficult to fully
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recover
Expected to be
Others 22,100,988.45 14,225,744.95 19,274,125.65 11,794,180.29 61.19% difficult to fully
recover
Total 1,550,300,627.39 1,053,487,050.41 1,542,170,003.24 1,040,575,707.96
Category for bad debts provision by combination: In the combination, provision for bad debts of accounts receivable is provided
by associated parties
In RMB
Ending balance
Name
Book balance Bad debt provision Percentage of provision
Less than 1 year 181,016,597.89
1-2 years
2-3 years
3-4 years
4-5 years
More than 5 years
Total 181,016,597.89
Category for bad debt provision by combination: In the combination, bad debt provision for accounts receivable is provided by
account age
In RMB
Ending balance
Name
Book balance Bad debt provision Percentage of provision
Less than 1 year 1,061,052,147.81 53,052,607.75 5.00%
1-2 years 146,747,758.44 14,674,775.84 10.00%
2-3 years 58,503,911.02 11,700,782.20 20.00%
3-4 years 18,650,546.32 9,325,273.16 50.00%
4-5 years 2,975,707.28 2,380,565.82 80.00%
More than 5 years 1,934,378.83 1,934,378.83 100.00%
Total 1,289,864,449.70 93,068,383.60
If provision for bad debts of accounts receivable is made according to the general model of expected credit loss:
□Applicable Not applicable
(3) Bad debt provision, and its recovery or reversal in the current period
Provision for bad debts in the current period:
In RMB
Amount of change in the current period
Beginning
Type Recovery or Ending balance
balance Provision Write-off Others
reversal
Bad debt
reserves for 1,137,386,630. 1,133,644,091.
75,039,320.20 76,760,426.90 2,021,432.56
accounts 82 56
receivable
1,137,386,630. 1,133,644,091.
Total 75,039,320.20 76,760,426.90 2,021,432.56
82 56
Significant recoveries or reversals of provisions for bad debts during the reporting period:
In RMB
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Basis and rationality of
Amount of recovery or determining the
Unit Reason for reversal Recovery method
reversal original provision ratio
for bad debts
Unit 1 35,932,304.06 Bank transfers, offsets
Bank transfers, house
Unit 2 12,943,912.34
mortgage
Bank transfers, house
Unit 3 8,367,635.05
mortgage
Bank transfers, house
Unit 4 2,911,247.95
mortgage
Bank transfers, house
Unit 5 2,884,489.50
mortgage
Bank transfers, house
Unit 6 2,502,618.17
mortgage
Bank transfers, house
Unit 7 2,131,401.24
mortgage
Bank transfers, house
Unit 8 1,982,739.60
mortgage
Bank transfers, house
Unit 9 1,032,855.13
mortgage
Bank transfers, house
Unit 10 912,030.00
mortgage
Bank transfers, house
Unit 11 881,524.45
mortgage
Bank transfers, house
Unit 12 853,100.00
mortgage
Bank transfers, house
Unit 13 825,000.00
mortgage
Bank transfers, house
Unit 14 675,000.00
mortgage
Bank transfers, house
Unit 15 673,076.70
mortgage
Bank transfers, house
Unit 16 552,430.80
mortgage
Bank transfers, house
Others 699,061.91
mortgage
Total 76,760,426.90
(4) Accounts receivable actually written off in the current period
In RMB
Item Amounts written off
Accounts receivable actually written off 2,021,432.56
Important accounts receivable write-offs:
In RMB
Whether the
Write-off
Nature of accounts Amounts written Reason for write- amount arises from
Unit procedures
receivable off offs an associated
performed
transaction
Expected to be Management
Unit 1 Payment for goods 881,524.45 No
irrecoverable approval
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Expected to be Management
Unit 2 Payment for goods 266,206.00 No
irrecoverable approval
Expected to be Management
Unit 3 Payment for goods 260,915.00 No
irrecoverable approval
Expected to be Management
Unit 4 Payment for goods 116,277.00 No
irrecoverable approval
Expected to be Management
Unit 5 Payment for goods 85,625.00 No
irrecoverable approval
Expected to be Management
Other Subtotal Payment for goods 410,885.11 No
irrecoverable approval
Total 2,021,432.56
(4) Top five debtors with the largest ending balances of accounts receivable and contract assets
In RMB
Proportion in the Ending balance of
total ending provision for bad
Ending balance of
Ending balance of Ending balance of balance of debts on accounts
Unit accounts receivable
accounts receivable contract assets accounts receivable and
and contract assets
receivable and impairment of
contract assets contract assets
Unit 1 658,945,936.78 658,945,936.78 21.87% 658,945,936.78
Unit 2 337,200,324.44 337,200,324.44 11.19% 101,160,097.33
Unit 3 275,838,561.72 275,838,561.72 9.15% 13,791,928.09
Unit 4 241,053,412.05 241,053,412.05 8.00% 105,439,212.29
Unit 5 95,720,766.37 95,720,766.37 3.18% 61,418,433.11
Total 1,608,759,001.36 1,608,759,001.36 53.39% 940,755,607.60
2.Other receivables
In RMB
Item Ending balance Beginning balance
Other receivables 78,302,506.11 46,761,052.06
Total 78,302,506.11 46,761,052.06
(1) Other accounts receivable
1) Classification of other accounts receivable by nature
In RMB
Initial book balance at the beginning of
Nature of receivable Book balance at the end of the period
the period
Collections by a third party 53,190,022.42 26,915,796.30
Guarantee and security deposits 20,529,567.47 26,557,958.62
Related transactions 4,064,000.00 4,064,000.00
Cash reserve 3,308,572.88 1,409,298.88
Withholdings 6,730,272.87 3,488,318.88
Proxy holding of properties exchanged
2,094,110.00 2,094,110.00
for construction services
Others 3,205,258.76 83,894.77
Total 93,121,804.40 64,613,377.45
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2) Disclosure by aging of accounts
In RMB
Initial book balance at the beginning of
Age Book balance at the end of the period
the period
Within 1 year (including 1 year) 73,826,959.96 39,791,252.20
1-2 years 3,858,897.97 5,238,428.30
2-3 years 4,561,836.65 4,102,774.20
More than 3 years 10,874,109.82 15,480,922.75
3-4 years 2,776,152.17 2,411,698.15
4-5 years 1,422,867.85 1,924,707.80
More than 5 years 6,675,089.80 11,144,516.80
Total 93,121,804.40 64,613,377.45
3) Classification of disclosure according to the bad debt provision method
In RMB
Ending balance Beginning balance
Book balance Bad debt provision Book balance Bad debt provision
Type Percenta Book Percenta Book
Percenta ge of value Percenta ge of value
Amount Amount Amount Amount
ge (%) provisio ge (%) provisio
n n
Provisio
n for bad
2,094,11 732,938. 1,361,17 2,094,11 732,938. 1,361,17
debts by 2.25% 35.00% 3.24% 35.00%
0.00 50 1.50 0.00 50 1.50
individu
al item
Includ
ing:
Collecti
ve bad
91,027,6 14,086,3 76,941,3 62,519,2 17,119,3 45,399,8
debt 97.75% 15.47% 96.76% 27.38%
94.40 59.79 34.61 67.45 86.89 80.56
provisio
n
Includ
ing:
Aging
91,027,6 14,086,3 76,941,3 62,519,2 17,119,3 45,399,8
combina 97.75% 15.47% 96.76% 27.38%
94.40 59.79 34.61 67.45 86.89 80.56
tion
93,121,8 14,819,2 78,302,5 64,613,3 17,852,3 46,761,0
Total 100.00% 15.91% 100.00% 27.63%
04.40 98.29 06.11 77.45 25.39 52.06
Category by individual bad debt provision:
In RMB
Beginning balance Ending balance
Name Bad debt Bad debt Percentage of Reasons for
Book balance Book balance
provision provision provision provision
Expected
Unit 1 800,000.00 280,000.00 800,000.00 280,000.00 35.00%
impairment
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Expected
Unit 2 636,327.00 222,714.45 636,327.00 222,714.45 35.00%
impairment
Expected
Unit 3 657,783.00 230,224.05 657,783.00 230,224.05 35.00%
impairment
Total 2,094,110.00 732,938.50 2,094,110.00 732,938.50
Collective bad debt provision:
In RMB
Ending balance
Name
Book balance Bad debt provision Percentage of provision
Within 1 year (including 1
71,732,849.96 3,586,642.49 5.00%
year)
1-2 years 3,858,897.97 385,889.80 10.00%
2-3 4,561,836.65 912,367.33 20.00%
3-4 years 2,776,152.17 1,388,076.09 50.00%
4-5 1,422,867.85 1,138,294.28 80.00%
More than 5 years 6,675,089.80 6,675,089.80 100.00%
Total 91,027,694.40 14,086,359.79
Provision for bad debts according to the general model of expected credit loss:
In RMB
Phase I Phase II Phase III
Expected credit loss Expected credit loss
Bad debt provision Expected credit loss Total
over the entire duration over the entire duration
over the next 12
(without credit (with credit
months
impairment) impairment)
Balance as of January
17,119,386.89 732,938.50 17,852,325.39
01, 2024
Balance on January 01,
2024 in the current
period
Provision in the current
-3,033,027.10 -3,033,027.10
period
Balance as of June 30,
14,086,359.79 732,938.50 14,819,298.29
2024
Changes in the book balance with significant change in amount of the loss provision in the current period
□Applicable Not applicable
4) Bad debt provision, and its recovery or reversal in the current period
Provision for bad debts in the current period:
In RMB
Amount of change in the current period
Beginning
Type Recovery or Ending balance
balance Provision Write-offs Others
reversal
Bad debt
provision for 17,852,325.39 -3,033,027.10 14,819,298.29
other receivables
Total 17,852,325.39 -3,033,027.10 14,819,298.29
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5） The actual write-off of other receivables in this period
There are no other actual receivables written off in this period.
6) Top five debtors with the largest ending balances of other accounts receivable
In RMB
Proportion in the
total ending
Nature of Ending balance of
Unit Ending balance Age balance of other
receivable bad debt provision
accounts
receivable
Collections by a
Unit 1 12,986,415.91 With 1 year 13.95% 649,320.80
third party
Collections by a
Unit 2 6,932,252.09 With 1 year 7.44% 346,612.60
third party
Unit 3 Loan 4,064,000.00 More than 5 years 4.36% 4,064,000.00
Collections by a
Unit 4 3,672,008.02 With 1 year 3.94% 183,600.40
third party
Unit 5 Withholdings 3,367,719.31 With 1 year 3.62% 168,385.97
Total 31,022,395.33 33.31% 5,411,919.77
3. Long-term equity investment
In RMB
Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investments in
288,639,391.37 20,400,000.00 268,239,391.37 270,909,357.60 20,400,000.00 250,509,357.60
subsidiaries
Investments in
joint ventures and
1,700,104.08 1,700,104.08 4,961,672.03 4,961,672.03
associated
companies
Total 290,339,495.45 20,400,000.00 269,939,495.45 275,871,029.63 20,400,000.00 255,471,029.63
(1) Investment in subsidiaries
In RMB
Beginning Beginning Increase/decrease in the current period Ending Ending
balance balance of balance balance of
Investee Additional Negative Impairment
(book impairment Others (book impairment
value) provision investment investment provision value) provision
Shengzhou
Kinde
Intelligent 162,320,00 162,320,00
0.00
Kitchen 0.00 0.00
Appliance
Co., Ltd.
Hangzhou
52,316,304. 52,597,277.
MingQi 280,973.22
68 90
Electric
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Co., Ltd.
De Dietrich
Household
Appliances 20,400,000. 20,400,000.
630,900.00 0.00 630,900.00
Trading 00 00
(Shanghai)
Co., Ltd.
Shanghai
Robam
5,838,272.1 5,838,272.1
Appliances 0.00
0 0
Sales Co.,
Ltd.
Beijing
Robam
5,814,980.8 5,814,980.8
Appliances 0.00
2 2
Sales Co.,
Ltd.
Hangzhou
Robam
Fuchuang 10,000,000. 10,000,000.
0.00
Investment 00 00
Manageme
nt Co., Ltd.
Hangzhou
Jinhe
10,000,000. 10,021,490.
Electric 21,490.97
00 97
Appliances
Co., Ltd.
Robam
Appliances
3,588,900.0 12,414,675. 16,003,575.
Holding
0 00 00
(HK) Co.,
Ltd.
Chengdu
Robam
5,012,894.5 5,012,894.5
Innovation
8 8
Technolog
y Co., Ltd.
250,509,35 20,400,000. 17,730,033. 268,239,39 20,400,000.
Total
7.60 00 77 1.37 00
(2) Investment in joint ventures and associated companies
In RMB
Increase/decrease in the current period
Beginni Investm
ent Cash Ending
ng Adjust
Beginni profit dividen balance
balance ment of Ending
ng Additio Negativ or loss Other ds or Impair of
of other balance
Investor balance nal e recogni changes profits ment impair
impair compre Others （book
（book investm investm zed in declare provisio ment
ment hensive value)
value) ent ent using equity d and n provisio
provisio income
the distribu n
n s
equity ted
method
I. Joint venture
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De
Dietrich
-
Trade 4,321,7 1,097,5
3,224,1
(Shangh 29.39 75.77
53.62
ai) Co.,
Ltd.
-
Sub-tot 4,321,7 1,097,5
3,224,1
al 29.39 75.77
53.62
II. Associated companies
Zhejiang
Tingshu
o Brand
-
Operatio 639,942 602,528
37,414.
n .64 .31
33
Manage
ment
Co., Ltd.
-
Sub-tot 639,942 602,528
37,414.
al .64 .31
33
-
4,961,6 1,700,1
Total 3,261,5
72.03 04.08
67.95
Recoverable amount is determined as fair value less costs of disposal
□Applicable Not applicable
The recoverable amount is determined as the present value of the expected future cash flows
□Applicable Not applicable
4. Operating income and operating cost
In RMB
Amount incurred in the current period Amount incurred in the previous period
Item
Income Cost Income Cost
Main business 4,244,513,191.19 2,257,722,536.75 4,362,487,508.28 2,211,299,281.37
Other businesses 125,388,591.10 30,056,323.88 127,661,267.93 61,625,299.63
Total 4,369,901,782.29 2,287,778,860.63 4,490,148,776.21 2,272,924,581.00
5.Investment income
In RMB
Item Amount incurred in the current period Amount incurred in the previous period
Income from long-term equity investments
-3,261,567.95 -1,019,723.65
accounted for using the equity method
Investment income during holding of
21,492,000.00 22,815,337.74
financial assets for trading
Total 18,230,432.05 21,795,614.09
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XX. Supplementary Information
1. Breakdown of non-recurring profits and losses in the current period
Applicable □Not applicable
In RMB
Item Amount Description
Gains and losses on disposal of non-
-762,764.73
current assets
Government subsidies included in
current gains and losses (excluding
government subsidies closely related to
the Company's normal business, enjoyed
47,398,220.55
in line with national policy and
established standards, and having a
sustained impact on the Company's gains
and losses).
Reversal of impairment provision for
accounts receivable tested for 76,760,426.90
impairment separately
Other non-operating revenues and
-2,205,082.29
expenses except the above items
Less: Affected amount of income tax 18,416,180.25
Affected amount of minority
1,173,943.32
shareholders’ equity (after tax)
Total 101,600,676.86 --
Other items of gains and losses meeting the definition of non-recurring gains and losses:
□Applicable Not applicable
The Company does not have other items of gains and losses meeting the definition of non-recurring gains and losses
Explanation on the circumstance where items of the non-recurring gains and losses listed in the Explanatory Announcement No. 1
on Information Disclosure for Companies Offering Their Securities to the Public — Non-recurring Gains and Losses (referred to
as “Announcement No.1”) are defined as recurring profits and losses
Applicable □Not applicable
Item Amount (in RMB) Reasons
VAT exemption, reduction or refund 37,394,570.29 National tax policy, regular business
Refund of individual income tax
421,243.63 National tax policy, regular business
handling fee
Total 37,815,813.92
2. Return on equity and earnings per share (EPS)
Profit within the Reporting Weighted average return on EPS
Period net assets Basic EPS (RMB/share) Diluted EPS (RMB/share)
Net profit attributable to
common stockholders of the 7.01% 0.80 0.80
Company
Net profit attributable to
6.08% 0.69 0.69
common shareholders of the
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Company after deducting
non-recurring profits and
losses
3. Accounting data differences under domestic and foreign accounting standards
(1) Differences of net profits and net assets in the Financial Report disclosed as per the IAS and CAS
□Applicable Not applicable
(2) Differences of net profits and net assets in the Financial Report disclosed as per the foreign
accounting standard and CAS
□Applicable Not applicable
（3） Explanation of the reasons of accounting data differences under domestic and foreign accounting
standards shall be made, and where data audited by an overseas audit institution has been adjusted
based on the differences, the name of the overseas institution shall be indicated.
□Applicable Not applicable
4. Others
N/A
176
