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老板电器:2024年半年度报告(英文版)2024-09-10  

                                     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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                                                                    Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2024



                                                                     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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                                          Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2024




                                         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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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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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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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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                                      Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2024
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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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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  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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                                                                                                            Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2024
(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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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)


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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




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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




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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

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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



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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



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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




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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




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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




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