Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
th anniversary
C re a te C h i n a ’ s n e w ki tch e n
Hangzhou Robam Appliances Co., Ltd.
2019 Semiannual Report
August 2019
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Section 1: Important Notes, Contents and Definitions
The board of directors, the board of supervisors and the directors, supervisors and
senior management of the Company shall guarantee that the contents of the
semiannual report are authentic, accurate and complete, free from false records,
misleading statements or major omissions, and shall bear individual and joint legal
liabilities.
Ren Jianhua, the head of the Company, Zhang Guofu, the head of accounting work,
and Zhang Guofu, the head of accounting body (accountant in charge), guarantee
the authenticity, accuracy and completeness of the financial report in the semiannual
report.
All directors of the Company personally attended the board meeting to review this
report.
The company plans not to distribute cash dividends, not to send bonus stocks, not
to convert reserved funds into share capital.
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Contents
Definitions ............................................................................................................................................ 3
Section 2: Company Profile and Major Financial Indicators ............................................................... 4
Section 3: Business Summary............................................................................................................. 7
Section 4: Discussion and Analysis of Operation................................................................................ 9
Section 5: Important Matters.............................................................................................................. 18
Section 6: Changes in Shares and Shareholders ............................................................................. 25
Section 7: Preferred Shares .............................................................................................................. 29
Section 8: Directors, Supervisors and Senior Management ............................................................. 30
Section 9: Corporate Bonds............................................................................................................... 31
Section 10: Financial Report.............................................................................................................. 32
Section 11: Reference file directory ................................................................................................. 131
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Definitions
Terms Refers to Definition
Company, company, Robam Refers to Hangzhou Robam Appliances Co., Ltd.
Mingqi Refers to Hangzhou Mingqi Electric Co., Ltd.
Kinde Intelligent Refers to Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd.
Robam, Mingqi, Beijing Robam Electric Appliance Sales Co.,
This group Refers to Ltd., Shanghai Robam Electric Appliance Sales Co., Ltd. and
Kinde Intelligent
Hangzhou Robam Industrial Group Co., Ltd., controlling
Robam Group Refers to
shareholder of the Company
Reporting period Refers to 2019 semiannual
China Market Monitor Co., Ltd., authoritative domestic home
CMM Refers to
appliance market research company
AVC Refers to Beijing All View Cloud Data Technology Co.,Ltd.
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Section 2: Company Profile and Major Financial Indicators
I. Company profile
Stock abbreviation Robam Stock code 002508
Stock exchange for stock
Shenzhen Stock Exchange
listing
Company name in 杭州老板电器股份有限公司
Chinese
Company short name in 老板电器
Chinese (if any)
Company name in foreign
HANGZHOU ROBAM APPLIANCES CO.,LTD.
language (if any)
Company short name in
ROBAM
foreign language (if any)
Legal representative of
Ren Jianhua
the company
II. Contact person and contact information
Secretary to the board of directors Securities affairs representative
Name Wang Gang
No. 592 Linping Av., Yuhang
Contact address: Economic Development Zone,
Hangzhou, China
Tel 0571-86187810
Fax 0571-86187769
Email wg@robam.com
III. Other information
1. Contact information
Whether the Company's registered address, office address and postal code, company website and Email address
changed during the reporting period
□ Applicable √ Not applicable
No change in the Company's registered address, office address and postal code, company website and Email address
changed during the reporting period, as shown in 2018 annual report.
2. Information disclosure and keeping place
Whether the information disclosure and keeping place changed during the reporting period
□ Applicable √ Not applicable
No change in the name of the information disclosure newspaper selected by the Company, URL of the website designated
by the CSRC to publish the semiannual report and the place for keeping the Company’s annual report, as shown in 2018
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
annual report.
IV. Major Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of the previous years
□Yes √No
Amount for Increase / decrease this
Reporting period corresponding period year compared to the
last year previous year
Operating income (yuan) 3,527,413,882.96 3,496,662,565.47 0.88%
Net profits attributable to
shareholders of listed companies 670,403,994.20 660,339,506.06 1.52%
(yuan)
Net profits attributable to
shareholders of the listed com pany
622,539,579.01 596,465,164.81 4.37%
after deduction of non-recurring
profits and losses (yuan)
Net cash flow from operating
658,691,084.58 1,121,788,027.98 -41.28%
activities (yuan)
Basic EPS (yuan/share) 0.71 0.70 1.43%
Diluted EPS (yuan/share) 0.71 0.70 1.43%
Weighted average return on net
10.51% 12.07% -1.56%
assets
Increase / decrease at
the end of this reporting
End of the reporting End of previous year period compared to the
period
end of the previous
year
Total assets (yuan) 9,451,869,196.46 9,455,361,508.83 -0.04%
Net assets attributable to
shareholders of listed companies 5,960,135,662.02 6,045,384,387.57 -1.41%
(yuan)
V. Differences in Accounting Data under Domestic and Foreign Accounting
Standards
1. Differences between net profits and net assets in financial statements disclosed according
to the International Accounting Standards (IAS) and Chinese Accounting Standards
simultaneously
□ Applicable √ Not applicable
No difference between net profits and net assets in financial statements dis closed according to the International
Accounting Standards (IAS) and Chinese Accounting Standards during the reporting period.
2. Differences between net profits and net assets in financial statements disclosed according
to the Overseas Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable √ Not applicable
No difference between net profits and net assets in financial statements disclosed according to the Overseas Accounting
Standards and Chinese Accounting Standards during the reporting period.
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
VI. Non-recurring Profit and Loss Items and Amount
√ Applicable □ Not applicable
Unit: CNY
Item Amount Description
Profits and losses on the disposal of non-current assets
(including the write-off part of the provision for asset -1,171,725.00
impairment)
Government subsidies included into the current profits and
losses, except those government subsidies, which are
closely related to the business of a company and enjoyed 58,069,181.84
in accordance with a certain standard quota or quantity of
the state
Profits and losses from investment or management assets
2,894,637.83
entrusted to others
Income and expenditure other than those mentioned
-1,328,772.96
above
Less: Amount affected by income tax 9,538,352.16
Amount of minority shareholders' equity affected
1,060,554.36
(after tax)
Total 47,864,415.19 --
Explain the non-recurrent profit and loss items defined by the Company according to the Interpretative Announcement No.
1 on Information Disclosure of Pub lic Securities Issuing Companies - Non-recurrent Profits and Losses and defined from
the non-recurrent profit and loss items enumerated in the Interpretative Announcement No. 1 on Information Disclosure of
Pub lic Securities Issuing Companies - Non-recurrent Profits and Losses
□ Applicable √ Not applicable
No definition of non-recurrent profit and loss items defined and enumerated in the Interpretative Announcement No. 1 on
Information Disclosure of Pub lic Securities Issuing Companies - Non-recurrent Profits and Losses as non-recurrent profit
and loss items during the reporting period.
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Section 3: Business Summary
I. Main Business of the Company during Reporting Period
Does the Company need to follow the disclosure requirements of special industries
No
Dedicated to creating a new quality kitchen for millions of families, the Company takes foot in the kitchen
field and focuses on the development, production, sales and comprehensive services of kitchen
appliances, including range hooks, stoves, disinfection cabinets, steam ovens, ovens, di shwashers,
water purifiers, water heaters, microwaves and integrated stoves. After 40 years of development and
growth, the Company has become the manufacturer with the longest history, the highest market share
and the largest production capacity in the Chinese kitchen appliance industry.
II. Significant Changes in Prime Assets
1. Significant Changes in Prime Assets
Prime assets Significant changes
No significant change in the Company’s equity assets during the reporting
Equity assets
period
Fixed assets No significant change in the Company’s fixed assets during the reporting period
No significant change in the Company’s intangible assets during the reporting
Intangible assets period
No significant change in the Company’s construction in progress during the
Construction in progress
reporting period
2. Major overseas assets
□ Applicable √ Not applicable
III. Analysis of Core Competitiveness
Does the Company need to follow the disclosure requirements of special industries
No
No significant change in the Company's core competitiveness during the reporting period: The
Company's core competitiveness is mainly reflected in the high -end positioned the brand capacity,
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
continuous innovative research and development capacity, comprehensive and efficient operation
capacity, as shown in the 2018 annual report.
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Section 4: Discussion and Analysis of Operation
I. Overview
In the first half of 2019, the international political and geopolitical situation was complicated, the domestic
real estate industry was affected by the increasingly strict regulatory policy of "one policy for one city",
and the kitchen appliance industry as a whole continued depression. According to the retail monitoring
report published by The Yee, the sales amount of range hoods, gas stoves and disinfection cab inets, as
the main kitchen appliances, was increased by -5.86%, -4.09% and -17.72% respectively.
In the face of the sluggish market, the company, as the leading enterprise in the kitchen appliance
industry, established the working policy of "practicing internal skills to keep out the winter and seeking
improvement in stability to promote growth" for 2019 at the end of last year, and strove to ensure the
company's stable performance and steady increase of market share. During the reporting period, the
company achieved the operating income of 3,527,413,882.96 yuan, an increase of 0.88%, and realized
the net profits attributable to shareholders of listed companies of 670,403,994.20 yuan, an increase of
1.52%.
According to the retail monitoring report published by The Yee, the market share and market position of
the retail sales of company's major product categories as of the end of June 2019 are shown in the
following table:
Built -in
Built -in Built -in Built -in
Gas steam Built -in Built -in
Range hood microwave disinf ection steam
stoves oven- oven dishwasher
oven cabinet oven
oven
Ret ail sales share 25. 54% 23. 13% 34. 95% 26. 58% 31. 67% 17. 39% 25. 92% 8. 00%
Market position 1 1 1 2 2 2 3 3
In the first half of 2019, the marketing sector practiced innovation for customer requirements centered on
the customer, and made concerted efforts with multiple channels to ensure the company's performance
growth in the face of the overall industry downturn. In terms of retail, the company, in the face of overall
KA channel downturn, continued to optimize the franchised store system, strengthened the integration of
multiple channels, realized the coordinated online and offline development and adhered to provide
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
customers with quality services and actively explore the primary and secondary stock market. In terms of
e-commerce, the company actively embraced the changes in customer demand for products and
optimized the operating efficiency with the focus on “deepening customer operation and creating
extreme efficiency”. In terms of real estate channels, benefiting from the national real estate refined
decoration policy, the company continued to deepen the cooperation with the real estate developers
such as Evergrande, Vanke, Country Garden and Sunac with differentiated products and hig h-quality
brand services and continued to boost the development of strategic real estate channel customers
through the central purifier system. The real estate channel sales increased 80% year-on-year.
According to the monthly real estate refined decoration monitoring data published by AVC, the market
share of ROBAM range hood was 37.8%, firmly ranking first in the industry. In terms of innovation, the
company actively explored the new retail mode, developed the innovative channels and regional outlets
and stimulated the vitality of the home decoration market through in-depth cooperation with the cabinet
companies such as OPPEIN and SCHMIDT and the family decorating companies such as ikongjian,
Gold Mantis and Dongyirisheng. In terms of overseas development, the company made its first
appearance at the 2019 Decorex SA exhibition in South Africa, made positive progress in the
development of overseas markets in Asia Pacific, Australia and New Zealand, and steadily promoted
brand globalization.
In the first half of 2019, the technology sector was committed to building an innovation -oriented R&D
mechanism, creating an open innovation platform, building an efficient organization and creating a
first-class technical team in the industry, and made remarkable achievements in new category expansion,
patent development and national standard establishment. In the first half of the year, the company
applied for 274 patents, including 64 invention patents and obtained 237 patents licenses, including 8
invention patents. The range hood 27X6 and steam oven-oven C906 won the "German Red Dot Award"
and "American IDEA Award", while the range hood 700X, gas stove 666B, steam ovens S228 and SZ01
won the “American IDEA Award”. Meanwhile, the company led the establishment of industry standards
such as Environment Friendly Range Hoods, Steam Oven-Oven, Minimum Allowable Values of Energy
Efficiency and Energy Efficiency Grades for Electric Ovens, Zhejiang Manufacturing Standard for
Dishwashers and Electric Steam Ovens, in which, the Zhejiang Manufacturing Standard for Dishwashers
won the standard innovation award. Moreover, the company actively created the second type of Chinese
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
style steam ovens, such as SZ01 lower built-in steam oven, ST01 desktop steam oven and C906/905
steam oven-oven, to meet different customer needs with diverse product forms, inherit and carry forward
China's excellent cooking and food culture, and meet the people's demand for health, nutrition and
cooking efficiency of high-quality life.
In the first half of 2019, the production sector strove to build a first-class manufacturing benchmark in
three directions: "comprehensively build the industry-leading supply chain system", "technology-driven
comprehensive innovation", "deepen lean production and build a sustainable and efficient organization",
improved the delivery consistency and timeliness and promoted supply chain collaboration projects;
reduced WIP and sluggish inventory, started pull production projects, formed a systematic and scientific
control system, and promoted the efficient operation capacity of production system informatization.
Moreover, Maoshan Intelligent Manufacturing Park project of the company was constructed smoothly
and, after its completion, it will promote the iteration of the company's intelligent and integrated high-end
kitchen electric appliances and upgrading of the intelligent manufacturing, laying a solid foundation for
the company's long-term development.
In the first half of 2019, the brand sector fully implemented the concept of "creat ing a new Chinese
kitchen", creating a high-tech, high-end, professional and young brand image. The company participated
in 2019 AWE and created the exhibition theme of “Robam 40 years, creating new Chinese kitchen”.
Robam exclusively sponsors the CCTV column Chinese Flavor and serves as the food creator of
Chinese Restaurant 3 to transmit Chinese cooking culture; held the press conference of "Steamed flavor
of China. Exploring flavor of ten cities" and offline activities such as "Lei Jiayin, a high -power player in
the kitchen, is challenged to cook 100 steamed dishes", invited cooking masters and intangible cultural
heritage inheritors to create a steam culture tour of "one city, one flavor and one inheritor", published
China’s Steamed Flavor Map - 100 Steamed Dishes, Long Volume of China's Steaming Feast, etc and
cooperated with local TV stations, print media and local transportation media (high -speed rail, airport,
subway, etc.) to occupy the commanding heights of brand communication, continuously interact with
consumers, enhance brand exposure, and convey brand value.
In the first half of 2019, Mingqi put forward the new strategic layout of “big business recruitment, Suning
cooperation, engineering layout and home decoration integration" based on the core channel idea of
"strengthening counties, piloting cities and digging towns"; with "focus on the oven, expand Shuangshui
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
and innovate new retail of integrated stove" as the new category promotion model, the company shipped
up to 14% gas heaters and purifiers in the first half of the year and won TOP10 integrated stove in online
and offline activities of Jingdong 618; promoted and completed more than a thousand light blasting
activities around the "monthly activities and weekly blasting" and created a new hig h sales volume of
nationwide linkage activities in “Mingqi tenth anniversary celebration, Gratitude to regular customers”.
In the first half of 2019, the company continued to be recognized by the capital market in terms of
corporate governance, internal management and shareholder returns, and won the "Best Board Award",
th
"Best New Media Operator Award" and "Best Board Secretary Award" at the “Tianma Award - The 10
Listed Company Investor Relations Selection” of Securities Times, the 13 th China listed company value
selection "Top 50 SMEs Board Value", "Excellent SMEs Board Secretary", "Outstanding Board Secretary
of Information Disclosure" and other awards at the 13 th Chinese Listed Companies Value Appraisal.
II. Main business analysis
Overview
See “I. Overview” in “Discussion and Analysis of Operation”.
Year-on-year changes of major financial data
Unit: CNY
Amount for
Year-on-year
Reporting period corresponding period Reason for change
increase / decrease
last year
Operating income 3,527,413,882.96 3,496,662,565.47 0.88% -
Operating cost 1,599,401,962.81 1,628,645,402.72 -1.80% -
Selling expenses 990,044,906.61 964,745,068.44 2.62% -
Management costs 116,171,528.77 124,693,829.53 -6.83% -
Due to the decrease
Financial expenses -29,604,970.87 -48,077,669.39 -38.42% of current interest
income.
Income tax e xpenses 123,074,038.15 119,107,939.33 3.33% -
Due to the decrease
Net cash flow from
658,691,084.58 1,121,788,027.98 -41.28% of current payment
operating activities
collection.
Due to the maturity
of financial products
Net cash flow from
482,830,282.28 -441,770,458.03 -209.29% and recovery of
investment activities
investment in current
period
Net cash flow from
-759,219,240.00 -711,574,618.75 6.70% -
financing activities
Net increase of cash 382,418,542.61 -31,289,816.70 -1,322.18% -
and cash equivalents
Major changes in profit composition or profit sources during the reporting period
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
□ Applicable √ Not applicable
There were no major changes in profit composition or profit sources during the reporting period.
Operating income composition
Unit: CNY
Amount for corresponding period last
Reporting period
year Year-on-year
Proportion in Proportion in increase /
Amount operating Amount operating decrease
income income
Total operating
3,527,413,882.96 100% 3,496,662,565.47 100% 0.88%
income
By industry
Home and
kitchen & bath 3,452,212,044.04 97.87% 3,394,298,971.47 97.07% 1.71%
appliances
Other 75,201,838.92 2.13% 102,363,594.00 2.93% -26.53%
By product
Range hood 1,883,974,091.22 53.41% 1,905,204,155.73 54.49% -1.11%
Gas stoves 850,003,518.67 24.10% 865,060,383.59 24.74% -1.74%
Sterilizer cabinet 246,351,583.63 6.98% 226,617,162.05 6.48% 8.71%
Steamer 116,909,353.95 3.31% 128,667,439.58 3.68% -9.14%
Integrated stove 80,702,117.50 2.29% 0.00 0.00% N/A
Oven 73,247,652.48 2.08% 102,160,542.02 2.92% -28.30%
Dish-washing
61,326,597.24 1.74% 50,589,214.40 1.45% 21.22%
machine
Other small
54,757,728.20 1.55% 58,023,584.46 1.66% -16.09%
home appliances
Water purifier 40,407,985.49 1.15% 45,272,776.51 1.29% -10.75%
Steam
27,487,524.98 0.78% 0.00 0.00% N/A
oven-oven
Water heaters 10,325,410.18 0.29% 0.00 0.00% N/A
Microwave
6,718,480.50 0.19% 12,703,713.13 0.36% -47.11%
ovens
Other 75,201,838.92 2.13% 102,363,594.00 2.93% -26.53%
By region
East China 1,546,877,053.21 43.85% 1,527,413,040.86 43.68% 1.27%
South China 435,621,166.26 12.35% 393,192,402.00 11.24% 10.79%
North China 428,733,427.16 12.15% 401,949,680.90 11.50% 6.66%
Central China 348,689,600.83 9.89% 325,691,194.94 9.31% 7.06%
Southeast China 286,581,351.82 8.12% 314,798,893.62 9.00% -8.96%
Northeast China 207,137,172.65 5.87% 235,940,373.77 6.75% -12.21%
Northwest China 178,363,060.47 5.06% 185,196,486.39 5.30% -3.69%
East China -
75,201,838.92 2.13% 102,363,594.00 2.93% -26.53%
other
Overseas
20,209,211.64 0.57% 10,116,898.99 0.29% 99.76%
regions
Industries, products or regions that account for more than 10% of the company's operating income or profit
√ Applicable □ Not applicable
Unit: CNY
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Year-on-year Year-on-year
Year-on-year
Gros s increase / increase /
increase /
Operating income Operating cost margin decrease of decrease of
decrease of
ratio operating gross margin
operating cost
income ratio
By indust ry
Home and
kitchen & bat h 3, 527, 413, 882. 96 1, 599, 401, 962. 81 54. 66% 0. 88% -1. 80% 2. 31%
appliances
By product
Range hood 1, 883, 974, 091. 22 781, 140, 530. 80 58. 54% -1. 11% -5. 59% 3. 48%
Gas st oves 850, 003, 518. 67 375, 049, 496. 40 55. 88% -1. 74% -4. 39% 2. 24%
By region
East China 1, 546, 877, 053. 21 702, 390, 471. 53 54. 59% 1. 27% -4. 38% 5. 17%
Sout h China 435, 621, 166. 26 203, 889, 819. 04 53. 20% 10. 79% 7. 66% 2. 63%
Nort h China 428, 733, 427. 16 171, 634, 176. 79 59. 97% 6. 66% 5. 09% 1. 01%
In the case that the statistical standards for main business data of the company are adjusted during the reporting period,
the main business data of the company in the latest period are subject to those after the adjustment of the statistical
standards at the end of the reporting period
□ Applicable √ Not applicable
Reasons for more than 30% year-on-year changes in the relevant data
□ Applicable √ Not applicable
III. Non-main business analysis
□ Applicable √ Not applicable
IV. Analysis of assets and liabilities
1. Major changes in asset composition
Unit: CNY
End of the reporting period End of the same period last year Description of
Proportio
Proportion in Proportion in major
Amount Amount n change
total assets total assets changes
Monetary
2,578,726,413.49 27.28% 2,549,948,329.74 29.63% -2.35% -
capital
Accounts
490,952,083.71 5.19% 419,798,154.58 4.88% 0.31% -
receivable
Inventory 1,216,207,972.47 12.87% 1,237,011,412.07 14.37% -1.50% -
Investment
117,081.74 0.00% 126,068.54 0.00% 0.00% -
properties
Long-term
equity 2,687,049.11 0.03% 4,470,840.99 0.05% -0.02% -
investment
Fixed assets 839,262,550.21 8.88% 816,697,803.79 9.49% -0.61% -
Construction
236,345,778.78 2.50% 65,701,351.18 0.76% 1.74% -
in progress
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
2. Assets and liabilities measured with fair value
□ Applicable √ Not applicable
3. Limitation on the assets and rights as of the end of the reporting period
N/A
V. Analysis of investment
1. Overall situation
□ Applicable √ Not applicable
2. Significant equity investments acquired during the reporting period
□ Applicable √ Not applicable
3. Significant ongoing non-equity investments during the reporting period
□ Applicable √ Not applicable
4. Financial assets measured with fair value
□ Applicable √ Not applicable
5. Securities investments
□ Applicable √ Not applicable
The company had no securities investments in the reporting period.
6. Derivatives investment
□ Applicable √ Not applicable
The company had no derivatives investments in the reporting period.
7. Use of funds raised
□ Applicable √ Not applicable
No funds raised are used in the reporting period.
8. Major projects not funded by raised funds
□ Applicable √ Not applicable
The company had no major projects that were not funded by raised funds in the reporting period.
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
VI. Sales of major assets and equities
1. Sales of major assets
□ Applicable √ Not applicable
The company did not sell major assets in the reporting period.
2. Sales of major equities
□ Applicable √ Not applicable
VII. Analysis of main holding and joint-stock companies
√ Applicable □ Not applicable
Joint-stock companies that affect the net profits of the company by more than 10% and main subsidiaries
Unit: CNY
Company Company Main Registered Operating Operating
Total assets Net assets Net profit
name type business capital income profit
Production
Hangzhou and sales
Mingqi of kitchen
Subsidiary 50,000,000.00 164,055,432.76 82,905,602.49 122,272,884.50 4,763,583.23 3,578,808.97
Electric electric
Co., Ltd. appliance
products
Shanghai
Sales of
Robam
kitchen
Electric
Subsidiary electric 5,000,000.00 62,575,581.68 7,504,056.34 151,651,589.33 199,141.13 -1,764,645.58
Appliance
appliance
Sales Co., products
Ltd.
Beijing
Sales of
Robam
kitchen
Electric Subsidiary 5,000,000.00 64,556,366.03 37,582,507.37 101,723,557.06 2,130,056.76 1,529,368.85
electric
Appliance
appliance
Sales Co., products
Ltd.
Shengzhou Production
Kinde and sales
Intelligent of
Subsidiary 32,653,061.00 273,865,037.19 203,044,188.29 90,517,727.14 18,745,444.72 14,311,880.56
Kitchen integrated
Electric kitchen
Co., Ltd. products
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable √ Not applicable
VIII. Structured entities controlled by the company
□ Applicable √ Not applicable
IX. Estimate of business performance for January - September 2019
It is estimated that the change rate of the net profits attributable to shareholders of listed companies in
January - September 2019 ranges from 2% to 10%
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
X. Risks faced by the company and countermeasures
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Section 5: Important Matters
I. Information about the annual general meeting of shareholders and
extraordinary general meeting of shareholders held during the reporting period
1. General meeting of shareholders during the reporting period
Invest or
part icipa
Meeting session Meeting t ype tion Convening dat e Dat e of disclosure Disclosure index
proport i
on
Annual general Annual cninf o Announcement of
meeting of general Resolutions of 2018 Annual
61. 68% May 16, 2019 May 17, 2019
shareholders in meeting of General Meet ing of Shareholders
2018 shareholders (Announcement No.: 2019-025)
2. The preferred shareholders with voting rights restored request an extraordinary general
meeting of shareholders
□ Applicable √ Not applicable
II. Profit distribution or share capital increase from accumulation fund during the
reporting period
□ Applicable √ Not applicable
The company plans not to distribute cash dividends, not to send bonus stocks, not to convert reserved fun ds into share
capital in half a year.
III. Commitments fulfilled or not fully fulfilled by the Company’s actual controller,
shareholders, related parties, acquirer and other commitment parties during the
reporting period
√ Applicable □ Not applicable
Time limit
Commitment Commitment Commitment Commitment Degree of
Commitment content for
reason party type time performance
acceptance
Share
structure
reform
commitment
Commitment
made in the
acquisition
report or
equity
change
report
18
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Commitment
made at the
time of asset
restructuring
After the expiry of the
36-month sales restriction
Directors, period, the shares
supervisors transferred each year during
and senior his/her tenure shall not
Commitment
management exceed 25% of the total
to restriction November Strict
directly or number of shares held Long-term
on sales of 23, 2010 performance
indirectly directly or indirectly in the
shares
holding Company; the company
shares of the shares directly or indirectly
company held shall not be transferred
within six months after the
resignation
1. The Company/I and other
enterprises under the
control of the Company/me
do not, and will not, directly
or indirectly, engage in any
activities that constitute
horizontal competition with
the existing and future
business of Robam and its
Commitment holding subsidiaries; 2. If
made at the any business opportunity
time of IPO obtained the Company/I and
or other enterprises under the
refinancing control of the Company/me
from any third party
Hangzhou constitutes or may
Robam Commitment constitute substantial
Industrial on avoiding competition with the November Strict
Long-term
Group Co., horizontal business of Robam, the 23, 2010 performance
Ltd.; Ren competition Company/I will immediately
Jianhua notify Robam and transfer
such business opportunity
to Robam; 3. The
Company/I and other
enterprises under the
control of the Company/me
commit not to provide
technical information,
process flow, marketing
channels or other trade
secrets to other companies,
enterprises, organizations
or individuals whose
business constitutes
competition with the
business of Robam.
Equity
incentive
commitment
Other The cumulative profits
commitments distributed in cash for three
made to consecutive years shall not
April 10, Three Strict
minor Company Dividend be less than 40% of the
2018 years performance
shareholders annual average distributable
of the profits realized in the three
Company years.
Whether the commitment is fulfilled on time Yes
19
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
IV. Appointment of and dismissal of accounting firms
Whether the semiannual financial report has been audited
□Yes √No
The Company's semiannual report is unaudited.
V. Statement of the board of directors and the board of supervisors on the
"non-standard audit report" of the accounting firm during the reporting period
□ Applicable √ Not applicable
VI. Statement of the board of directors on the "non-standard audit report" for the
previous year
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization of the Company during the reporting period.
VIII. Litigation matters
Major litigation and arbitration matters
□ Applicable √ Not applicable
No major litigation or arbitration matters of the Company during the reporting period.
Other litigation matters
□ Applicable √ Not applicable
IX. Media questioning
□ Applicable √ Not applicable
No common media questioning on the Company during the reporting period.
X. Punishment and rectification
□ Applicable √ Not applicable
No punishment or rectification of the Company during the reporting period.
XI. Credit conditions of the company, its controlling shareholders and actual
controllers
□ Applicable √ Not applicable
20
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
XII. Implementation of the company's equity incentive plan, employee stock
ownership plan or other employee incentive measures
√ Applicable □ Not applicable
1. Implementation of the initial restricted stock incentive plan
(1) The Company’s first extraordinary general meeting of shareholders in 2015 on January 13, 2015
reviewed and adopted the Proposal on the Initial Restricted Stock Incentive Plan (Draft) of
Hangzhou Robam Appliances Co., Ltd. and its Summary and the Proposal on Requesting the
General Meeting of Shareholders of Hangzhou Robam Appliances Co., Ltd. to Authorize the
Board of Directors to Handle the Issues Related to the Company’s Restricted Stock Incentive Plan.
(2) On January 21, 2015, the Company’s 15 th meeting of the third Board of Directors and the 4 th
meeting of the third Board of Supervisors reviewed and adopted the Proposal on Granting
Restricted Stocks to Incentive Objects.
(3) On February 13, 2015, the Company completes the registration on first granting of restricted
stocks involved in the Initial Restricted Stock Incentive Plan (Draft) of Hangzhou Robam
Appliances Co., Ltd.
(4) On January 4, 2016, the Company’s 12th meeting of the third Board of Directors and the 10 th
meeting of the third Board of Supervisors reviewed and adopted the Proposal on Adjusting the
Number of Restricted Stocks Reserved and the Proposal on Issues Related to Granting Restricted
Stocks Reserved to Incentive Objects.
(5) On January 22, 2016, the Company’s 13th meeting of the third Board of Directors and the 11 th
meeting of the third Board of Supervisors reviewed and adopted the Proposal on First Granting of
Unlocking of the Restricted Stocks in First Unlocking Period in Restricted Stock Incentive Plan.
(6) On February 05, 2016, the Company completes the registration on granting of restricted stocks
reserved involved in the Initial Restricted Stock Incentive Plan (Draft) of Hangzhou Robam
Appliances Co., Ltd.
th th
(7) On April 7, 2016, the Company’s 14 meeting of the third Board of Directors and the 12 meeting
of the third Board of Supervisors reviewed and adopted the Proposal on the Cancellation of Partial
Incentive Stock Repurchase in Initial Restricted Share Incentive Plan.
21
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
th th
(8) On January 23, 2017, the Company’s 19 meeting of the third Board of Directors and the 16
meeting of the third Board of Supervisors reviewed and adopted the Proposal on the Cancellation
of Partial Incentive Stock Repurchase in Initial Restricted Stock Incentive Plan, the Proposal on
First Granting of Unlocking in Second Unlocking Period in Restricted Stock Incentive Plan and the
Proposal on Reserved Granting of Unlocking in First Unlocking Period in Restricted Stock
Incentive Plan.
(9) On February 6, 2018, the Company’s 4 th meeting of the fourth Board of Directors and the 4 th
meeting of the fourth Board of Supervisors reviewed and adopted the Proposal on First Granting
of Unlocking in Third Unlocking Period in Restricted Stock Incentive Plan and the Proposal on
Reserved Granting of Unlocking in Second Unlocking Period in Restricted Stock Incentive Plan .
(10) On January 21, 2019, the Company’s 9 th meeting of the fourth Board of Directors and the 9 th
meeting of the fourth Board of Supervisors reviewed and adopted the Proposal on Reserved
Granting of Unlocking in Third Unlocking Period in Restricted Stock Incentive Plan .
XIII. Major related transactions
1. Related transactions related to daily operation
□ Applicable √ Not applicable
No related transactions related to daily operation of the Company during the reporting period, not constituting major
related transactions, as shown in XII. Related parties and related transactions in Section 10.
2. Related transactions arising from the acquisition or sale of assets or equity
□ Applicable √ Not applicable
No Related transactions arising from the acquisition or sale of assets or equity of the Company during the reporting
period.
3. Related transactions of joint foreign investment
□ Applicable √ Not applicable
No related transactions of joint foreign investment of the Company during the reporting period.
4. Related claims and debts
□ Applicable √ Not applicable
22
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
No related claims and debts of the Company during the reporting period.
5. Other major related transactions
□ Applicable √ Not applicable
No other major related transactions of the Company during the reporting period.
XIV. Major contracts and their performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship of the Company during the reporting period.
(2) Contracting
□ Applicable √ Not applicable
No contracting of the Company during the reporting period.
(3) Lease
√ Applicable □ Not applicable
Lease description
① The Company as the lessor
Name of lessee Type of leased assets Lease income recognized Lease income recognized
in the current period in the previous period
Hangzhou Robam Industrial Group Co., House 14,400.00 14,400.00
Ltd.
② The Company as the lessee
Name of lessor Type of leased assets Lease fee recognized in the Lease fee recognized in
current period the previous period
Hangzhou Robam Industrial Group Co., House 275,012.28 275,012.28
Ltd.
Project bringing the profits or losses more than 10% of the total profits of the Company in the reporting period to the
Company
□ Applicable √ Not applicable
No lease project bringing the profits or losses more than 10% of the total profits of the Company in the reporting period to
the Company during the reporting period.
2. Major guarantee
□ Applicable √ Not applicable
23
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
No guarantee of the Company during the reporting period.
3. Other major contracts
□ Applicable √ Not applicable
No other major contracts of the Company during the reporting period.
XV. Social responsibility
1. Major environmental issues
Whether the listed company and its subsidiaries are key pollutant discharging units announced by environmental
protection authorities
Not applicable
2. Implementation of social responsibility for targeted poverty alleviation
(1) Targeted poverty alleviation planning
No targeted poverty alleviation carried out temporarily in the Company’s semiannual report.
(2) Semiannual targeted poverty alleviation summary
(3) Targeted poverty alleviation effect
(4) Follow-up targeted poverty alleviation programs
XVI. Description of other important events
□ Applicable √ Not applicable
No other important events to be described during the reporting period.
XVII. Major events of subsidiaries
□ Applicable √ Not applicable
24
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Section 6: Changes in Shares and Shareholders
I. Change in shares
1. Change in shares
Unit: share
Bef ore t his change Increase / decrease (+, -) Aft er t his change
Share
New capit al
issue Share increase
Quant ity Proport ion Ot her Subt ot al Quant ity Proport ion
of donation from
shares reserved
funds
I. Rest rict ed 14, 497, 669 1. 53% -374, 400 -374, 400 14, 123, 269 1. 49%
shares
3. Ot her
domest ic 14, 497, 669 1. 53% -374, 400 -374, 400 14, 123, 269 1. 49%
holdings
Domestic
nat ural
14, 497, 669 1. 53% -374, 400 -374, 400 14, 123, 269 1. 49%
person
shareholding
II.
Unrestrict ed 934, 535, 156 98. 47% 365, 625 365, 625 934, 900, 781 98. 51%
shares
1. RMB
common 934, 535, 156 98. 47% 365, 625 365, 625 934, 900, 781 98. 51%
share
III. Tot al
amount of 949, 032, 825 100. 00% -8, 775 -8, 775 949, 024, 050 100. 00%
shares
Causes for change in shares
√ Applicable □ Not applicable
(1) On January 8, 2019, the Company complet ed the repurchase of canceled restricted stocks and
repurchased 8,775 restricted stocks of the incentive object. The total capital stocks decreased from
949,032,825 to 949,024,050.
(2) On February 18, 2019, the Company reserved to grant unlocking of t he restricted stock incentive plan
in the third unlocking period and the number of restricted stocks that could be unlocked and listed was
365,625, accounting for 0.0385% of the Company's total capital stock.
Approval of changes in shares
√ Applicable □ Not applicable
th th
(1) On February 6, 2018, the Company’s 4 meeting of the fourth Board of Directors and the 4 meeting of
25
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
the fourth Board of Supervisors reviewed and adopted the Proposal on First Granting of Unlock ing in
Third Unlock ing Period in Restricted Stock Incentive Plan and the P roposal on Reserved Granting of
Unlock ing in Second Unlock ing Period in Restricted Stock Incentive Plan.
th th
(2) On August 22, 2018, the Company’s 7 meeting of the fourth Board of Directors and the 7 meeting of
the fourth Board of Supervisors reviewed and adopted the P roposal on the Partial Repurchase of
Canc eled Initial Restricted Stocks in Initial Restricted Share Incentive Plan.
th th
(3) On January 21, 2019, the Company’s 9 meeting of the fourth Board of Directors and the 9 meeting of
the fourth Board of Supervisors reviewed and adopted the Proposal on Reserved Granting of Unlock ing
in Third Unlock ing Period in Restricted Stock Incentive Plan.
Transfer of share changes
□ Applicable √ Not applicable
Implementation progress of share repurchase
□ Applicable √ Not applicable
Implementation progress of reducing repurchased shares by centralized competitive bidding
□ Applicable √ Not applicable
Influence of share changes on the basic EPS, diluted EPS, net assets per share attributable to common shareholders of
the company and other financial indexes in the most recent year and the most recent period
□ Applicable √ Not applicable
Other information the company deems necessary or required by the securities regulatory authorities to disc lose
□ Applicable √ Not applicable
2. Changes in restricted shares
□ Applicable √ Not applicable
3. Securities issuance and listing
Not applicable
II. Number and shareholding of the company's shareholders
Unit: share
Tot al number of
Tot al number of pref erred shareholders wit h
common shareholders
67, 606 vot ing rights rest ored at t he end of t he 0
at t he end of t he
report ing period (if any) (see Not e 8)
report ing period
Shareholding of common shareholders holding more t han 5% shares or t op 10 common shareholders
Shareholder's Shareholder Shareholding Number of Increase or Number Number of Pledge or f reeze
26
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
name nat ure ratio common decrease of common
shares held during t he common shares held
at t he end of report ing shares wit h unlimit ed St at us
the report ing period held wit h sales of Quant ity
period limit ed conditions shares
sales
conditions
Hangzhou Robam Domest ic
Indust rial Group non-st at e 49. 68% 471, 510, 000 471, 510, 000
Co., Lt d. legal person
Hong Kong
Overseas
Securities 9. 00% 85, 408, 035 -15, 115, 749 85, 408, 035
legal person
Clearing Co. Lt d.
Domest ic
Shen Guoying nat ural 1. 29% 12, 240, 000 12, 240, 000
person
China Merchants
Bank Co. Lt d. －
Everbright PGI M Ot her 1. 16% 10, 980, 236 10, 980, 236 10, 980, 236
Advantageous
Hybrid Securities
Invest ment Fund
China
Const ruct ion Bank
Co., Lt d.－Anxin
Ot her 1. 01% 9, 579, 475 3, 328, 043 9, 579, 475
Value Select ed
St ock Securities
Invest ment Fund
Hangzhou
Domest ic
Jinchuang
non-st at e 1. 00% 9, 451, 985 9, 451, 985
Invest ment Co.,
legal person
Lt d.
Shenzhen Guoshi
Capit al
Management Co.,
Lt d. - Guoshi
Capit al - Robam Ot her 0. 88% 8, 311, 165 8, 311, 165
Agent Holding
St age 2 St ruct ured
Privat e Equit y
Fund
SSF - Six
Ot her 0. 77% 7, 306, 072 7, 306, 072 7, 306, 072
Combinat ions
Hangzhou
Domest ic
Yinchuang
non-st at e 0. 74% 7, 020, 000 7, 020, 000
Invest ment Co.,
legal person
Lt d.
Overseas
GI C 0. 68% 6, 449, 837 2, 389, 601 6, 449, 837
legal person
The act ual controller of t he Company’s cont rolling sh areholder Hangzhou Robam I ndustrial Group
Description of t he Co., Lt d. and t he shareholder Hangzhou Jinchuang I nvest ment Co., Lt d. is Mr. Ren Jianhua, and
above-mentioned shareholder
the nat ural person shareholder Shen Guo Ying is t he wif e of Ren Jianhua. The above
association or concert ed act ion
shareholders have t he possibilit y of acting in unison.
Shareholding of t op 10 common shareholders wit h unlimit ed sales conditions
Number of common shares wit h unlimit ed sales Share type
Shareholder's name conditions held at t he end of t he report ing period Share type Quant ity
Hangzhou Robam I ndust rial
471, 510, 000 RMB common share 471, 510, 000
Group Co., Lt d.
Hong Kong Securities Clearing 85, 408, 035 RMB common share 85, 408, 035
27
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Co. Lt d.
Shen Guoying 12, 240, 000 RMB common share 12, 240, 000
China Merchants Bank Co. Ltd.
－Everbright PGI M Adv antageous
10, 980, 236 RMB common share 10, 980, 236
Hybrid Securities I nvest ment
Fund
China Const ruct ion Bank Co., Lt d.
－Anxin Value Select ed St ock 9, 579, 475 RMB common share 9, 579, 475
Securities I nvest ment Fund
Hangzhou Jinchuang I nvest ment
9, 451, 985 RMB common share 9, 451, 985
Co., Lt d.
Shenzhen Guoshi Capit al
Management Co., Lt d. - Guoshi
Capit al - Robam Agent Holding 8, 311, 165 RMB common share 8, 311, 165
St age 2 St ruct ured Privat e Equity
Fund
SSF - Six Combinations 7, 306, 072 RMB common share 7, 306, 072
Hangzhou Yinchuang I nvest ment
7, 020, 000 RMB common share 7, 020, 000
Co., Lt d.
GI C 6, 449, 837 RMB common share 6, 449, 837
Description of t he association or
concert ed action bet ween t op 10
common shareholders wit h The act ual controller of t he Company’s cont rolling shareholder Hangzhou Robam I ndustrial Group
unlimit ed sales condit ions, and Co., Lt d. and t he shareholder Hangzhou Jinchuang I nvest ment Co., Lt d. is Mr. R en Jianhua, and
bet ween t op 10 common the nat ural person shareholder Shen Guo Ying is t he wif e of Ren Jianhua. The above
shareholders wit h unlimit ed sales shareholders have t he possibilit y of acting in unison.
conditions and t op 10 common
shareholders
Whether the Company’s top 10 common shareholders and op 10 common shareholders with unlimited sales c onditions
agreed on a repurchase transaction during the reporting period
□Yes √No
The Company’s top 10 common shareholders and op 10 common shareholders with unlimited sales conditions did not
agree on a repurchase transaction during the reporting period
III. Changes in controlling shareholder or actual controller
Change of controlling shareholders during the reporting period
□ Applicable √ Not applicable
No change in controlling shareholders during the reporting period.
Changes in actual controller during the reporting period
□ Applicable √ Not applicable
No change in actual controller during the reporting period.
28
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Section 7: Preferred Shares
□ Applicable √ Not applicable
No preferred shares of the Company during the reporting period.
29
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Section 8: Directors, Supervisors and Senior Management
I. Equity changes of directors, supervisors and senior management
□ Applicable √ Not applicable
No equity change of the Company’s directors, supervisors and senior management during the reporting period, as shown
in the 2018 annual report.
II. Change of directors, supervisors and senior management
□ Applicable √ Not applicable
No change of the Company’s directors, supervisors and senior management during the reporting period, as shown in the
2018 annual report.
30
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Section 9: Corporate Bonds
Whether the Company has bonds publicly issued and listed on the stock exchange that have not expired or expired but
not paid in full on the date of approval of the semiannual report
No
31
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Section 10: Financial Report
I. Audit Report
Whether the semiannual report is audited
□Yes √No
The Company's semiannual financial report is unaudited.
II. Financial statements
Unit of statements in financial notes: CNY
1. Consolidated Balance Sheet
Unit: Hangzhou Robam Appliances Co., Ltd.
June 30, 2019
Unit: yuan
Item June 30, 2019 December 31, 2018
Current assets:
Monetary capital 2,578,726,413.49 2,196,706,808.35
Deposit reservation for
balance
Lending funds
Trading financial assets
Financial assets measured
with fair value and with the
changes included in current profit
and loss
Derivative financial assets
Notes receivable 1,472,778,184.35 1,268,146,296.01
Accounts receivable 490,952,083.71 446,773,135.47
Receivables financing
Ad vances to suppliers 48,706,380.11 59,485,930.70
Premiums receivables
Reinsurance accounts
receivable
Provision of cession
receivable
Other receivables 87,328,253.55 70,182,460.52
Including: Interest
receivable
Dividends receivable
Redemptory monetary capital
for sale
Inventory 1,216,207,972.47 1,347,112,731.03
32
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Contract assets
Assets held for sales
Non-current assets due within
a year
Other current assets 1,978,829,070.91 2,591,760,176.09
Total current assets 7,873,528,358.59 7,980,167,538.17
Non-current assets:
Loans and advances
Debt investment
Available-for-sale financial
119,948,534.00
assets
Other debt investments
Held-to-maturity investment
Long-term receivables
Long-term equity investment 2,687,049.11 2,617,851.16
Other equity instrument
119,948,534.00
investments
Other non-current financial
assets
Investment properties 117,081.74 121,575.14
Fixed assets 839,262,550.21 842,877,466.95
Construction in progress 236,345,778.78 184,440,655.49
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 190,282,031.65 193,974,179.90
Development expenditure
Goodwill 80,589,565.84 80,589,565.84
Long-term unamortized
1,446,968.60 4,933,280.77
expenses
Deferred income tax assets 97,394,605.70 39,564,040.41
Other non-current assets 10,266,672.24 6,126,821.00
Total non-current assets 1,578,340,837.87 1,475,193,970.66
Total assets 9,451,869,196.46 9,455,361,508.83
Current liabilities
Short-term borrowing
Borrowings from central bank
Borrowing funds
Trading financial liabilities
Financial liabilities measured
with fair value and with the
changes included in current profit
and loss
Derivative financial liabilities
Notes payable 453,858,650.24 411,414,985.01
Accounts payable 1,350,756,288.30 1,195,563,149.37
Ad vance from customers 1,114,184,967.13 1,170,088,458.14
Financial assets sold for
repurchase
33
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Deposits from customers and
interbank
Acting trading securities
Acting underwriting securities
Payroll payable 8,241,460.47 107,349,495.30
Tax payable 156,798,287.38 113,248,653.85
Other payables 228,982,475.40 234,490,187.04
Including: Interest payable
Dividends payable
Fees and commissions
payable
Dividend payable for
reinsurance
Contract liabilities
Liabilities held for sales
Non-current liabilities due
within a year
Other current liabilities
Total current liabilities 3,312,822,128.92 3,232,154,928.71
Non-current liabilities
Reserve fund for insurance
contracts
Long-term borrowing
Bonds payable
Including: preferred stock
Perpetual bond
Lease liabilities
Long-term payable
Long-term payroll payable
Estimated liabilities
Deferred income 76,668,389.06 82,021,091.35
Deferred income tax liabilities 9,766,459.36 10,337,139.79
Other non-current liabilities
Total non-current liabilities 86,434,848.42 92,358,231.14
Total liabilities 3,399,256,977.34 3,324,513,159.85
Owner's equity:
Capital stock 949,024,050.00 949,024,050.00
Other equity instruments
Including: preferred stock
Perpetual bond
Capital reserve 401,799,332.67 401,689,801.42
Minus: treasury stock 3,456,989.00
Other comprehensive income
Special reserve
Surplus reserves 474,516,412.50 474,516,412.50
General risk preparation
Undistributed profit 4,134,795,866.85 4,223,611,112.65
Total owners' equities attributable 5,960,135,662.02 6,045,384,387.57
34
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
to the owners of parent company
Minority equity 92,476,557.10 85,463,961.41
Total owners' equities 6,052,612,219.12 6,130,848,348.98
Total liabilities and owners'
9,451,869,196.46 9,455,361,508.83
equities
Legal representative: Ren Jianhua Head of accounting work: Zhang Guofu Head of accounting body: Zhang Guofu
2. Balance sheet of parent company
Unit: yuan
Item June 30, 2019 December 31, 2018
Current assets:
Monetary capital 2,425,741,262.62 2,017,251,340.16
Trading financial assets
Financial assets measured
with fair value and with the
changes included in current profit
and loss
Derivative financial assets
Notes receivable 1,472,578,184.35 1,261,896,296.01
Accounts receivable 457,184,560.25 438,002,392.66
Receivables financing
Ad vances to suppliers 54,947,245.23 48,995,796.40
Other receivables 66,587,170.91 64,301,240.95
Including: Interest
receivable
Dividends receivable
Inventory 1,146,254,684.56 1,267,525,767.58
Contract assets
Assets held for sales
Non-current assets due within
a year
Other current assets 1,830,000,000.00 2,448,736,487.97
Total current assets 7,453,293,107.92 7,546,709,321.73
Non-current assets:
Debt investment
Available-for-sale financial
119,948,534.00
assets
Other debt investments
Held-to-maturity investment
Long-term receivables
Long-term equity investment 229,192,982.84 224,608,888.64
Other equity instrument
119,948,534.00
investments
35
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Other non-current financial
assets
Investment properties 453,723.04 470,485.36
Fixed assets 812,032,765.31 815,345,909.65
Construction in progress 236,270,778.78 184,365,655.49
Productive biological ass ets
Oil and gas assets
Right-of-use assets
Intangible assets 159,876,618.67 161,743,355.41
Development expenditure
Goodwill
Long-term unamortized
1,446,968.60 4,933,280.77
expenses
Deferred income tax assets 96,519,807.28 38,723,474.50
Other non-current assets 10,266,672.24 6,126,821.00
Total non-current assets 1,666,008,850.76 1,556,266,404.82
Total assets 9,119,301,958.68 9,102,975,726.55
Current liabilities
Short-term borrowing
Trading financial liabilities
Financial liabilities measured
with fair value and with the
changes included in current profit
and loss
Derivative financial liabilities
Notes payable 453,448,650.24 409,057,910.01
Accounts payable 1,296,818,010.42 1,158,684,039.60
Ad vance from customers 1,044,743,117.02 1,067,652,543.09
Contract liabilities
Payroll payable 52,779.70 88,814,022.76
Tax payable 149,939,253.77 99,200,231.67
Other payables 207,494,253.19 215,230,256.63
Including: Interest payable
Dividends payable
Liabilities held for sales
Non-current liabilities due
within a year
Other current liabilities
Total current liabilities 3,152,496,064.34 3,038,639,003.76
Non-current liabilities
Long-term borrowing
Bonds payable
Including: preferred stock
Perpetual bond
Lease liabilities
Long-term payable
Long-term payroll payable
Estimated liabilities
36
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Deferred income 76,668,389.06 82,021,091.35
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 76,668,389.06 82,021,091.35
Total liabilities 3,229,164,453.40 3,120,660,095.11
Owner's equity:
Capital stock 949,024,050.00 949,024,050.00
Other equity instruments
Including: preferred stock
Perpetual bond
Capital reserve 401,754,349.66 401,644,818.41
Minus: treasury stock 3,456,989.00
Other comprehensive income
Special reserve
Surplus reserves 474,516,412.50 474,516,412.50
Undistributed profit 4,064,842,693.12 4,160,587,339.53
Total owners' equities 5,890,137,505.28 5,982,315,631.44
Total liabilities and owners'
9,119,301,958.68 9,102,975,726.55
equities
3. Consolidated Statement of Income
Unit: yuan
Item 2019 semiannual 2018 semiannual
I. Total operating income 3,527,413,882.96 3,496,662,565.47
Including: Operating income 3,527,413,882.96 3,496,662,565.47
Interest revenue
Premium earned
Fee and commission
income
II. Total operating costs 2,813,102,211.83 2,813,539,570.29
Including: Operating costs 1,599,401,962.81 1,628,645,402.72
Interest expenditure
Fee and commission
expense
Surrender value
Net payments for
insurance claims
Net reserve fund
extracted for insurance contracts
Bond insurance
expense
Reinsurance costs
Taxes and surcharges 29,458,998.38 33,709,271.63
Selling expenses 990,044,906.61 964,745,068.44
Management costs 116,171,528.77 124,693,829.53
Research and
107,629,786.13 109,823,667.36
development expenses
37
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Financial expenses -29,604,970.87 -48,077,669.39
Including: interest
201,831.98
expenditure
Interest
30,307,927.32 48,117,978.17
revenue
Plus: other incomes 56,839,181.84 59,524,135.08
Income from investment
39,858,974.49 40,770,279.62
(loss expressed with “-”)
Including: Income from
investment of joint venture and 69,197.95 655,604.04
cooperative enterprise
Income from
derecognition of financial assets
measured at amortized cost (loss
expressed with “-”)
Exchange gain (loss
expressed with “-”)
Net exposure hedging gain
(loss expressed with “-”)
Income from fair value
changes (loss expressed with “-”)
Credit impairment losses
-8,952,029.23
(loss expressed with “-”)
Assets impairment losses
-8,585,478.93
(loss expressed with “-”)
Income from disposal of
-296,672.23 62,757.28
assets (loss expressed with “-”)
III. Operating profits (loss
801,761,126.00 774,894,688.23
expressed with “-”)
Plus: Non-operating income 1,611,946.09 5,676,533.87
Less: non-operating
2,882,444.05 1,127,717.43
expenditure
IV. Total profits (total loss expressed
800,490,628.04 779,443,504.67
with “-”)
Less: Income tax e xpenses 123,074,038.15 119,107,939.33
V. Net profits (net loss expressed
677,416,589.89 660,335,565.34
with “-”)
(I) Classified by business
continuity
1. Net profits from going
concern (net loss expressed 677,416,589.89 660,335,565.34
with “-”)
2. Net profits from
discontinuing operation (net
loss expressed with “-”)
(II) Classified by ownership
1. Net profit attributable to
670,403,994.20 660,339,506.06
owners of parent company
2. * Minority interest income 7,012,595.69 -3,940.72
VI. Net amount of other
comprehensive income after tax
Net amount of other
comprehensive income after tax
attributed to parent company
owners
38
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
(I) Other comprehensive
income that can't be reclassified
into profit and loss
1. Remeasure the
variation of net
indebtedness or net
asset of defined
benefit plan
2. Other comprehensive
income that can't be
reclassified into profit
and loss in the
invested enterprise
under equity method
3. Fair value change of
other equity instrument
investments
4. Fair value change of
enterprise credit risks
5. Other
(II) Other comprehensive
income that will be reclassified into
profit and loss
1. Other comprehensive
income that will be
reclassified into profit
and loss in the
invested enterprise
under equity method
2. Fair value change of
other debt investments
3. Changes in fair value
through profit and loss
of available-for-sale
financial assets
4. Amount of financial
assets reclassified into
other comprehensive
income
5. Held-to-maturity
investment reclassified
into available-for-sale
financial assets
6. Provision for credit
impairment of other
debt investments
7. Cash flow hedging
reserve
8. Balance arising from
the translation of
foreign currency
financial statements
9. Others
Net amount of other
comprehensive income after tax
attributed to minority shareholders
VII. Total comprehensive income 677,416,589.89 660,335,565.34
Total comprehensive income
670,403,994.20 660,339,506.06
attributed to parent company
39
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
owners
Total comprehensive income
7,012,595.69 -3,940.72
attributed to minority shareholders
VIII. Earnings per share
(I) Basic earnings per share 0.71 0.70
(II) Diluted earnings per share 0.71 0.70
In case of business combination involving enterprises under common control in this period, the net profits achieved by the
combined enterprise before combination were RMB and achieved by the combined enterprise in previous period were
RMB .
Legal representative: Ren Jianhua Head of accounting work: Zhang Guofu Head of accounting body: Zhang Guofu
4. Income statement of parent company
Unit: yuan
Item 2019 semiannual 2018 semiannual
I. Operating income 3,259,793,326.67 3,291,884,090.12
Subtract: Operating costs 1,507,498,151.92 1,571,657,758.11
Taxes and surcharges 26,332,164.95 30,909,092.03
Selling expenses 867,885,223.87 858,436,066.98
Management costs 81,117,115.96 85,492,885.38
Research and
103,711,169.47 109,823,667.36
development expenses
Financial expenses -27,805,458.39 -47,426,377.03
Including: interest
201,831.98
expenditure
Interest revenue 28,247,326.34 47,277,406.17
Plus: other incomes 51,909,682.29 59,231,536.08
Income from investment
36,964,336.66 40,770,279.62
(loss expressed with “-”)
Including: Income from
investment of joint venture and 765,101.56 655,604.04
cooperative enterprise
Income from
derecognition of financial assets
measured at amortized cost (loss
expressed with “-”)
Net exposure hedging
gain (loss expressed with “-”)
Income from fair value
changes (loss expressed with “-”)
Credit impairment losses
-9,148,426.64
(loss expressed with “-”)
Assets impairment losses
-7,645,493.34
(loss expressed with “-”)
Income from disposal of
-296,672.23 62,757.28
assets (loss expressed with “-”)
40
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
II. Operating profit (loss to be filled
780,483,878.97 775,410,076.93
out with the minus sign "-")
Plus: Non-operating income 1,525,524.06 395,132.79
Less: non-operating
1,093,261.57 1,114,385.16
expenditure
III. Total profit (total loss to be filled
780,916,141.46 774,690,824.56
out with the minus sign "-")
Less: Income tax e xpenses 117,441,547.87 116,548,116.05
IV. Net profit (net loss to be filled
663,474,593.59 658,142,708.51
out with the minus sign "-")
(I) Net profits from going
concern (net loss expressed with
“-”)
(II) Net profits from
discontinuing operation (net loss
expressed with “-”)
V. Net amount of other
comprehensive income after tax
(I) Other comprehensive
income that can't be reclassified
into profit and loss
1. Remeasure the
variation of net
indebtedness or
net asset of
defined benefit
plan
2. Other
comprehensive
income that can't
be reclassified into
profit and loss in
the invested
enterprise under
equity method
3. Fair value change
of other equity
instrument
investments
4. Fair value change
of enterprise credit
risks
5. Other
(II) Other comprehensive
income that will be reclassified into
profit and loss
1. Other
comprehensive
income that will be
reclassified into
profit and loss in
the invested
enterprise under
equity method
2. Fair value change
of other debt
investments
3. Changes in fair
value through
41
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
profit and loss of
available-for-sale
financial assets
4. Amount of
financial assets
reclassified into
other
comprehensive
income
5. Held-to-maturity
investment
reclassified into
available-for-sale
financial assets
6. Provision for credit
impairment of
other debt
investments
7. Cash flow hedging
reserve
8. Balance arising
from the
translation of
foreign currency
financial
statements
9. Others
VI. Total comprehensive income 663,474,593.59 658,142,708.51
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated Statement of Cash Flow
Unit: yuan
Item 2019 semiannual 2018 semiannual
I. Cash flow from financing
activities:
Cash from selling
3,607,783,677.83 4,289,207,480.55
commodities or offering labor
Net increase of customer
deposit and deposit from other
banks
Net increase of borrowings
from central bank
Net increase of borrowing
funds from other financial
institutions
Cash from obtaining original
insurance contract premium
Cash received from insurance
premium of original insurance
contract
Net increase of deposit and
investment of insured
Cash from interest, handling
42
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
charges and commissions
Net increase of borrowing
funds
Net increase of repurchase of
business funds
Net cash from acting trading
securities
Refund of tax and levies 533,442.61 136,806.08
Other cash received related
95,145,745.57 147,143,124.04
to operating activities
Subtotal cash inflows from
3,703,462,866.01 4,436,487,410.67
operating activities
Cash paid for selling 1,516,314,982.52 1,731,391,225.74
commodities or offering labor
Net increase of customer
loans and advances
Net increase of amount due
from central bank and interbank
Cash paid for original
insurance contract claims
payment
Net increase of financial
assets held for trading
Net increase of lending funds
Cash paid for interest,
handling charges and
commissions
Cash paid for policy dividend
Cash paid to and for
354,764,621.08 350,023,153.85
employees
Taxes and fees paid 402,678,055.37 392,338,495.82
Other cash paid related to
771,014,122.46 840,946,507.28
operating activities
Subtotal cash outflows from
3,044,771,781.43 3,314,699,382.69
operating activities
Net cash flow from operating
658,691,084.58 1,121,788,027.98
activities
II. Cash flow from investment
activities:
Cash from investment
1,718,000,000.00 1,219,875,796.46
withdrawal
Cash from investment income 47,573,034.00 35,783,979.45
Net cash from disposal of
fixed assets, intangible assets and 171,800.00 62,135.92
other long-term assets
Net cash received from the
disposal of subsidiaries and other
business entities
Other cash received related
to investment activities
Subtotal cash inflows from
1,765,744,834.00 1,255,721,911.83
investment activities
Cash paid for the purchase
and construction of fixed assets, 151,414,551.72 67,492,369.86
intangible assets and other long
43
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
term assets
Cash paid for investment 1,126,500,000.00 1,600,000,000.00
Net cash received from
reinsurance business
Net cash paid for obtaining
subsidiaries and other business 5,000,000.00
units
Other cash paid related to 30,000,000.00
investment activities
Subtotal cash outflows from
1,282,914,551.72 1,697,492,369.86
investment activities
Net cash flow from investment
482,830,282.28 -441,770,458.03
activities
III. Cash flow from financing
activities:
Receipts from equity
securities
Including: Cash received from
subsidies’ absorption of minority
shareholders’ investment
Cash received from
borrowings
Cash from issuance of bonds
Other cash received related
200,000.00
to financing activities
Subtotal cash inflows from
200,000.00
financing activities
Cash repayments of amounts
borrowed
Cash paid for distribution of
dividends or profits and for interest 759,219,240.00 711,774,618.75
expenses
Including: Dividends and
profits paid by subsidiaries to
minority shareholders
Other cash paid related to
financing activities
Subtotal cash outflows from 759,219,240.00 711,774,618.75
financing activities
Net cash flow from financing
-759,219,240.00 -711,574,618.75
activities
IV. Impact of exchange rate
movements on cash and cash 116,415.75 267,232.10
equivalents
V. Net increase of cash and cash
382,418,542.61 -31,289,816.70
equivalents
Plus: Balance of cash and
cash equivalents at the beginning 2,177,219,858.85 2,562,788,024.38
of the period
Plus: Balance of cash and cash
equivalents at the beginning of the 2,559,638,401.46 2,531,498,207.68
period
44
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
6. Cash flow statement of parent company
Unit: yuan
Item 2019 semiannual 2018 semiannual
I. Cash flow from financing
activities:
Cash from selling
3,369,769,326.89 4,034,591,294.81
commodities or offering labor
Refund of tax and levies
Other cash received related
80,284,290.10 125,906,164.99
to operating activities
Subtotal cash inflows from
3,450,053,616.99 4,160,497,459.80
operating activities
Cash paid for selling
1,472,285,266.95 1,726,122,568.02
commodities or offering labor
Cash paid to and for
278,362,198.01 281,546,075.14
employees
Taxes and fees paid 361,186,090.14 353,930,726.47
Other cash paid related to
670,991,974.83 705,935,571.54
operating activities
Subtotal cash outflows from 2,782,825,529.93 3,067,534,941.17
operating activities
Net cash flow from operating
667,228,087.06 1,092,962,518.63
activities
II. Cash flow from investment
activities:
Cash from investment
1,500,000,000.00 1,219,875,796.46
withdrawal
Cash from investment income 44,678,396.17 35,783,979.45
Net cash from disposal of
fixed assets, intangible assets and 171,800.00 62,135.92
other long-term assets
Net cash received from the
disposal of subsidiaries and other
business entities
Other cash received related
to investment activities
Subtotal cash inflows from
1,544,850,196.17 1,255,721,911.83
investment activities
Cash paid for the purchase
and construction of fixed assets,
136,533,684.66 67,277,073.11
intangible assets and other long
term assets
Cash paid for investment 909,500,000.00 1,600,000,000.00
Net cash paid for obtaining
subsidiaries and other business
units
Other cash paid related to
30,000,000.00
investment activities
Subtotal cash outflows from
1,046,033,684.66 1,697,277,073.11
investment activities
Net cash flow from investment
498,816,511.51 -441,555,161.28
activities
III. Cash flow from financing
45
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
activities:
Receipts from equity
securities
Cash received from
borrowings
Cash from issuance of bonds
Other cash received related
200,000.00
to financing activities
Subtotal cash inflows from
200,000.00
financing activities
Cash repayments of amounts
borrowed
Cash paid for distribution of
dividends or profits and for interest 759,219,240.00 711,774,618.75
expenses
Other cash paid related to
financing activities
Subtotal cash outflows from
759,219,240.00 711,774,618.75
financing activities
Net cash flow from financing
-759,219,240.00 -711,574,618.75
activities
IV. Impact of exchange rate
movements on cash and cash 116,426.36 267,284.88
equivalents
V. Net increase of cash and cash
406,941,784.93 -59,899,976.52
equivalents
Plus: Balance of cash and
cash equivalents at the beginning 2,000,183,395.66 2,411,423,559.90
of the period
Plus: Balance of cash and cash
equivalents at the beginning of the 2,407,125,180.59 2,351,523,583.38
period
7. Consolidated statement of change in equity
Current amount
Unit: yuan
2019 semiannual
Owners' equities attributable to the owners of parent company
Total
Other equity instruments Other Genera
Item Capit Minus: Surplus Undistri Minorit owners'
Pref Perp Capital compre Special l risk Subtota y equity equitie
al Othe treasur reserve buted Other
erred etual reserve hensive reserve prepara l
stock rs y stock s profit s
stock bond income tion
949,0 401,68 474,51 4,223,6 6,045,3 6,130,8
I. Ending balance in 3,456,9 85,463,
24,05 9,801.4 6,412.5 11,112. 84,387. 48,348.
previous year 89.00 961.41
0.00 2 0 65 57 98
Plus: Changes in
accounting policies
Prior period
error co rrection
Business
combination under
common control
Othe rs
949,0 401,68 474,51 4,223,6 6,045,3 6,130,8
II. Beginning balance 3,456,9 85,463,
24,05 9,801.4 6,412.5 11,112. 84,387. 48,348.
in current year 89.00 961.41
0.00 2 0 65 57 98
III. Increase /
109,53 -3,456, -88,815 -85,248 7,012,5 -78,236
decrease in the
1.25 989.00 ,245.80 ,725.55 95.69 ,129.86
current period (less to
46
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
be fil ed out with the
minus sign "-)
(I) Total 670,40 670,40 677,41
7,012,5
comprehensive 3,994.2 3,994.2 6,589.8
95.69
income 0 0 9
(II) Owne r’s invested 109,53 -3,456, 3,566,5 3,566,5
and decreased capital 1.25 989.00 20.25 20.25
1. Common stock
invested by the
owner
2. Capital invested
by other equity
instrument
holders
3. Amount of
share-based
109,53 -3,456, 3,566,5 3,566,5
payment included
1.25 989.00 20.25 20.25
in the owner’s
equity
4. Others
-759,21 -759,21 -759,21
(III) Profit distribution 9,240.0 9,240.0 9,240.0
0 0 0
1. Withdrawal of
surplus rese rve s
2. Withdrawal of
general risk
preparation
3. Distribution of -759,21 -759,21 -759,21
owners (or 9,240.0 9,240.0 9,240.0
shareholders) 0 0 0
4. Others
(IV) Internal transfer
of owner’s equity
1. Capital surplus
transfer to paid-in
capital (or capital
stock)
2. Earned surplus
transfer to paid-in
capital (or capital
stock)
3. Earned surplus
covering the
deficit
4. Carryforwa rd
retained earnings
in variation of
defined benef t
plan
5. Carryforwa rd
retained earnings
of other
comprehensive
income
6. Other
(V) Special reserve
1. Draw in this
current
2. Use in this current
(VI) Others
949,0 401,79 474,51 4,134,7 5,960,1 6,052,6
IV. Balance at the end 92,476,
24,05 9,332.6 6,412.5 95,866. 35,662. 12,219.
of current period 557.10
0.00 7 0 85 02 12
Last term amount
Unit: yuan
2018 semiannual
Owners' equities attributable to the owners of parent company
Item Total
Other equity instruments Other Spe Gener Minority
Capital Capital Minus: Surplus Undistribut Ot equity owners'
compreh cial al risk Subtotal equities
stock Prefe Perpe Oth reserve treasury reserves ed profit her
ensive rese prepar
47
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
rred tual ers stock income rve ation
stock bond
I. Ending
balance in 949,032, 399,598, 24,153,0 474,516, 3,461,806, 5,260,800, -3,329,5 5,257,471,
previous 825.00 507.63 10.00 412.50 065.78 800.91 95.92 204.99
year
Plus:
Changes
in
accountin
g policies
Prior
period
error
corre ction
Business
combinati
on under
common
control
Others
II.
Beginning 949,032, 399,598, 24,153,0 474,516, 3,461,806, 5,260,800, -3,329,5 5,257,471,
balance in 825.00 507.63 10.00 412.50 065.78 800.91 95.92 204.99
current
year
III.
Increase /
decrease
in the
current
1,521,48 -20,332,2 -51,435,11 -29,581,41 -3,940.7 -29,585,35
period
6.54 10.00 2.69 6.15 2 6.87
(less to be
filled out
with the
minus
sign "-)
(I) Total
comprehe 660,339,5 660,339,5 -3,940.7 660,335,5
nsive 06.06 06.06 2 65.34
income
(II)
Owner’s
invested 1,521,48 -20,332,2 21,853,69 21,853,69
and 6.54 10.00 6.54 6.54
decreased
capital
1. Comm
on
stock
invest
ed by
the
owner
2. Capita
l
invest
ed by
other
equity
instru
ment
holder
s
3. Amou 1,521,48 -20,332,2 21,853,69 21,853,69
nt of 6.54 10.00 6.54 6.54
48
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
share-
based
payme
nt
includ
ed in
the
owner’
s
equity
4. Others
(III) Profit
-711,774,6 -711,774,6 -711,774,6
distributio 18.75 18.75 18.75
n
1. Withdr
awal
of
surplu
s
reserv
es
2. Withdr
awal
of
gener
al risk
prepar
ation
3. Distrib
ution
of -711,774,6 -711,774,6 -711,774,6
owner 18.75 18.75 18.75
s (or
shareh
olders)
4. Others
(IV)
Internal
transfer of
owner’s
equity
1. Capita
l
surplu
s
transfe
r to
paid-in
capital
(or
capital
stock)
2. Earne
d
surplu
s
transfe
r to
paid-in
capital
(or
capital
stock)
3. Earne
d
surplu
s
coveri
ng the
deficit
49
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
4. Carryf
orward
retaine
d
earnin
gs in
variati
on of
define
d
benefit
plan
5. Carryf
orward
retaine
d
earnin
gs of
other
compr
ehensi
ve
incom
e
6. Other
(V)
Special
reserve
1. Draw
in this
curren
t
2. Use in
this
curren
t
(VI)
Others
IV.
Balance at 949,032, 401,119,9 3,820,80 474,516, 3,410,370, 5,231,219, -3,333,5 5,227,885,
the end of 825.00 94.17 0.00 412.50 953.09 384.76 36.64 848.12
current
period
8. Statement of change in equity of parent company
Current amount
Unit: yuan
2019 semiannual
Other equity instruments Other
Item Minus: Undistri
Capital Capital comprehe Special Surplus Total owners'
Preferre Perpetu treasury buted Other
stock Others reserve nsive reserve reserves equities
d stock al bond stock profit
income
4,160,5
I. Ending balance in 949,024, 401,644,8 3,456,989. 474,516,4 5,982,315,63
previous year 050.00 18.41 00 12.50 87,339. 1.44
53
Plus: Changes in
accounting policies
Prior period
error co rrection
Othe rs
II. Beginning balance in 949,024, 401,644,8 3,456,989. 474,516,4 4,160,5 5,982,315,63
50
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
current yea r 050.00 18.41 00 12.50 87,339. 1.44
53
III. Increase / decrea se
in the current period 109,531.2 -3,456,989 -95,744, -92,178,126.
(less to be filled out 5 .00 646.41 16
with the minus sign "-)
(I) Total comprehensive 663,474 663,474,593.
income ,593.59 59
(II) Owne r’s invested 109,531.2 -3,456,989
3,566,520.25
and decreased capital 5 .00
1. Common stock
invested by the
owner
2. Capital invested by
other equity
instrument holders
3. Amount of
share-based
109,531.2 -3,456,989
payment included 3,566,520.25
5 .00
in the owner’s
equity
4. Others
-759,21
-759,219,240
(III) Profit distribution 9,240.0 .00
0
1. Withdrawal of
surplus rese rve s
2. Distribution of -759,21
-759,219,240
owners (or 9,240.0 .00
shareholders) 0
3. Others
(IV) Internal transfer of
owner’s equity
1. Capital surplus
transfer to paid-in
capital (or capital
stock)
2. Earned surplus
transfer to paid-in
capital (or capital
stock)
3. Earned surplus
covering the deficit
4. Carryforwa rd
retained earnings
in variation of
defined benef t
plan
5. Carryforwa rd
retained earnings
of other
comprehensive
income
6. Other
(V) Special reserve
1. Draw in this current
2. Use in this current
(VI) Others
4,064,8
IV. Balance at the end 949,024, 401,754,3 474,516,4 5,890,137,50
of current period 050.00 49.66 12.50 42,693. 5.28
12
Last term amount
51
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Unit: yuan
2018 semiannual
Other equity instruments Speci
Item Minus: Other
Capital al Surplus Undistributed Othe Total owners'
Capital stock Preferre Perpetu Other treasury comprehensi
reserve reserv reserves profit r equities
d stock al bond s stock ve income
e
I. Ending
949,032,825. 399,553,524. 24,153,010.0 474,516,412. 3,430,203,861. 5,229,153,613.
balance in
00 62 0 50 03 15
previous year
Plus:
Changes in
accounting
policies
Prior
period error
corre ction
Others
II. Beginning
949,032,825. 399,553,524. 24,153,010.0 474,516,412. 3,430,203,861. 5,229,153,613.
balance in 00 62 0 50 03 15
current yea r
III. Increase /
decrease in
the current
-20,332,210.
period (less to 1,521,486.54 -53,631,910.24 -31,778,213.70
00
be fil ed out
with the minus
sign "-)
(I) Total
658,142,708.5 658,142,708.5
comprehensiv 1 1
e income
(II) Owne r’s
invested and -20,332,210.
1,521,486.54 21,853,696.54
decreased 00
capital
1. Common
stock
invested
by the
owner
2. Capital
invested
by other
equity
instrument
holders
3. Amount of
share-bas
ed
payment -20,332,210.
1,521,486.54 00 21,853,696.54
included in
the
owner’s
equity
4. Others
(III) Profit -711,774,618.7 -711,774,618.7
distribution 5 5
1. Withdrawa
l of surplus
reserves
2. Distributio
n of
-711,774,618.7 -711,774,618.7
owners (or 5 5
sharehold
ers)
52
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
3. Others
(IV) Internal
transfer of
owner’s equity
1. Capital
surplus
transfer to
paid-in
capital (or
capital
stock)
2. Earned
surplus
transfer to
paid-in
capital (or
capital
stock)
3. Earned
surplus
covering
the deficit
4. Carryforwa
rd retained
earnings in
variation of
defined
benefit
plan
5. Carryforwa
rd retained
earnings
of other
comprehe
nsive
income
6. Other
(V) Special
reserve
1. Draw in
this
current
2. Use in this
current
(VI) Others
IV. Balance at
949,032,825. 401,075,011. 474,516,412. 3,376,571,950. 5,197,375,399.
the end of 3,820,800.00
00 16 50 79 45
current period
III. Basic status of company
Hangzhou Robam Appliances Co., Ltd. (the "Company”) is a limited liability comp any established by Hangzhou
Robam Home Appliances & Kitchen Sanitary Co., Ltd. b y means of overall change with the approval of Hangzhou
Administration for Industry and Commerce, Zhejiang Province in August 2008 and now headquartered at No.592,
Linping Av., Yuhang Economic Development Zone, Hangzhou, China.
The financial statements were approved by the Board of Directors of the Company on August 26, 2019.
Six subsidiaries are incorporated into the scope of consolidation of the Company in 2019. Please refer to "Interests
in other entities" in Note 8 for details. The scope of consolidation is not changed in the current period compared to
the previous period.
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
The Company and its subsidiaries are mainly engaged in the production and sales of kitchen appliances.
IV. Preparation basis of financial statements
1. Preparation basis
This company’s financial statement is based on going -concern assumption and worked out according to actual
transactions and matters, Accounting Standard for Business Enterprises --Basic Standard(iss ued by No.33 Decree
of the Ministry of Finance and revised by No.76 Decree of the Ministry of Finance) issued by the Ministry of
Finance, 42 special accounting standards enacted and revised on and after Feb 15, 2006, guideline for application
of accounting standard for business enterprises, ASBE interpretations and other relevant regulations(hereinafter
collectively referred to as “Accounting Standard for Business Enterprises”) and No.15 of Compilation Rules for
Information Disclosure by Companies Offering Securities to the Public-- General Provisions of Financial Reports
(revised in 2014) issued by China Securities Regulatory Commission.
According to the relevant provisions of the accounting standards for enterprises, the company's accounting is
based on the accrual basis. Except for some financial instruments and investment real estate, the financial
statements are based on historical cost. In case of impairment of assets, the relevant provisions shall be set aside
for impairment.
2. Going concern
The Company has no events or circumstances that cause serious doubts about the going concern assumption for
the 12 months from the end of the reporting period.
V. Significant accounting policy and accounting estimate
Specific accounting policy and accounting estimate:
The Company and its subsidiaries are engaged in the production and sales of kitchen appliances. The specific
accounting policies and estimates developed by the Company and its subsidiaries for income recognition and other
transactions according to the actual production and operation characteristics and the provisions of the relevant
accounting standards for enterprises are detailed in “Income” in the notes. Statement of material accounting
judgments and estimates made by the management is shown in “Material a ccounting judgments and estimates”.
1. Statement on complying with corporate accounting standards
The Company’s financial statements comply with the requirements of the Accounting Standards for Business
Enterprises and truly and completely reflect the Company's financial position as of June 30, 2019, the semiannual
business performance, cash flows and other relevant information for the year 2019. Moreover, the Company’s
financial statements meet the disclosure requirements for relevant financial statements and their notes in No.15 of
Compilation Rules for Information Disclosure b y Companies Offering Securities to the Pub lic -- General Provisions
of Financial Reports revised by China Securities Regulatory Commission in all significant terms.
2. Accounting period
The accounting period of the Company is classified into annual period and interim period. The interim period refers
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
to the reporting period shorter than a complete accounting year. The fiscal year of the Company runs from 1
January to 31 December of each calendar year.
3. Operating cycle
Normal operating cycle refers to the period from the purchase of assets for processing to the realization of cash or
cash equivalents. The Company takes 12 months as an operating cycle, which is used as the liquidity classification
standard for assets and liabilities.
4. Accounting standard money
RMB is the currency in the main economic environment where the Company and its domestic subsidiaries operate,
and is the accounting standard money for the Company and its domestic subsidiaries. The Company’s currency
used for compilation of the financial statements is RMB.
5. Accounting process method of business combination involving enterprises under and not
under common control
Business combination refers to a transaction or event that combin es two or more separate businesses into one
reporting entity. It is divided into business combination involving enterprises under common control and business
combination not involving enterprises under common control.
(1) Business combination involving enterprises under common control
A business combination involving enterprises under common control is a business combination in which all of the
combining enterprises are ultimately controlled by the same party or the same parties both before and after the
business combination and on which the control is not temporary. As for business combination under common
control, the party that obtains the control right over the other enterprises participating in the combination on the
combination date shall be the combining party, and the other enterprise participating in the combination shall be the
combined party. Combination date means the date on which the combining party actually acquires control over the
combined party.
Assets and liabilities acquired by the combining party shall be measured at the book value of the combined party
on the combination date. The difference between the book value of the net assets obtained and the consideration
paid for the combination (or total par value of issued shares) is adjusted agains t capital reserve (capital stock
premium); if the capital reserve (capital stock premium) is not sufficient to absorb the difference, the retained
earnings shall be adjusted.
The direct cost for the business combination of the combining party shall be reco rded into the profits and losses at
the current period.
(2) Business combination not involving enterprises under common control
A business combination involving enterprises not under common control is a business combination in which the
combining enterprises are not ultimately controlled by the same party or the same parties both before and after the
business combination. As for business combination not under common control, the party that obtains the control
right over the other enterprises participating in the combination on the acquiring date shall be the acquirer, and the
other enterprise participating in the combination shall be the acquiree. Acquiring date means the date on which the
acquirer actually acquires control over the acquiree.
For the business combination not involving enterprises under common control, the combined cost includes the fair
55
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
value of the assets paid, liabilities incurred or assumed and equity securities issued by the acquirer on the
acquiring date for acquisition of the control right of the acquiree. The intermediary expenses incurred by the
acquirer in respect of auditing, legal services, valuation and consultancy services, etc. and other associated
administrative expenses attributable to the business combination are recognized in the current profit and loss when
they are incurred. Transaction costs associated with the issue of equity or debt securities for the business
combination are included in the initially recognized amounts of the equity or debt securities. The contingent
consideration involved shall be included in the combined cost at its fair value on the acquiring date, and the
consolidated goodwill shall be adjusted accordingly if new or further evidence of the existing situation on the
acquiring date occurs within 12 months after the acquiring date requires adjustment of the contingent consideration.
The combined costs incurred by the acquirer and the net identifiable assets acquired in the combination shall be
measured at the fair value on the acquiring date. Where the cost o f combination exceeds the acquirer’s interest in
the fair value of the acquiree’s net identifiable assets, the difference is recognized as goodwill. Where the cost of
combination is less than the acquirer’s interest in the fair value of the acquiree’s net identifiable assets, the
acquirer first reassesses the measurement of the fair values of the acquiree's identifiable assets, liabilities and
contingent liabilities and measurement of the cost of combination. If after reassessment, the cost of combination is
still less than the acquirer's interest in the fair value of the acquiree’s net identifiable assets, the difference is
included in the current profit and loss.
Where the deductible temporary difference acquired by the acquirer from the acquiree was not r ecognized on the
acquiring date due to noncompliance with the conditions for the recognition of deferred income tax assets, relevant
deferred income tax assets shall be recognized and the goodwill shall be reduced within 12 months after the
acquiring date if new or further information is obtained indicating that the relevant circumstances of the acquiring
date already e xist and that the economic benefits arising from the deductible temporary difference of the acquiree
on the acquiring date are expected to be realized. Where goodwill is insufficient to be offset, the difference shall be
recognized as current profit and loss. Except above circumstances, the deferred income tax assets recognized
related to the business combination are included in current profit and loss.
The merger of enterprises under different controls that is realized by steps through several times of exchange
transaction shall be judged whether to belong a package deal according to the Notice of the Ministry of Finance on
Printing and Issuing No.5 Interpretation of ASBE (CK [2012] No.19) and the criteria for “package deal” in Article 51
(see Note IV 5 (2)) of Accounting Standard for Business Enterprises No.33 - Consolidated Financial Statements. In
case that it belongs to a package deal, each transaction shall be subject to accounting treatment according to the
previous paragraphs and Note IV. 13 “Long-term equity investment” ; in case that it doesn’t belong to a package
deal, the individual financial statements and the consolidated financial statements shall be distinguished and
subject to the relevant accounting treatment respectively:
In the individual financial statements, the sum of the book value of the equity investment held in the acquiree
before the acquiring date and newly increased investment cost on the acquiring date shall be considered as initial
cost of the investment. Other related comprehensive gains in relation to the equity interests that the Company
holds in the acquiree before the acquiring date shall be subject to accountin g treatment when disposing of the
investment through adopting the basis for the direct disposal of relevant assets or debts (that is, except for the
corresponding share in the change caused by the remeasurement of the net liabilities or net assets of the d efined
benefit plan by the acquirer calculated in accordance with the equity method, the remaining amount is transferred
into the current investment gains).
In the consolidated financial statements, as for the equity interests held in the acquiree before the acquiring date,
they shall be re-measured according to their fair values at the acquiring date; the difference between their fair
values and book value shall be recorded into the investment gains for the period including the acquiring date.
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Other related comprehensive gains in relation to the equity interests held in the acquiree before the acquiring date
shall be subject to accounting treatment through adopting the basis for the direct disposal of relevant assets or
debts (that is, except for the corres ponding share in the change caused by the remeasurement of the net liabilities
or net assets of the defined benefit plan by the acquirer calculated in accordance with the equity method, the
remaining amount transferred into current investment gains on the acquiring date).
6. Methods for preparing consolidated financial statements
(1) Determination principle of scope of consolidated financial statements
The scope of consolidation in the consolidated financial statements is determined on the basis of control. Contro l
means that the Company has the power over the investee, enjoys variable returns by participating in the relevant
activities of the investee, and has the ability to use the power to influence the amount of returns. The Company and
all subsidiaries shall be included in the scope of consolidation. A subsidiary refers to the entity controlled by the
Company.
Relevant elements involved in the above definition will be reevaluated by the Company if they are changed by the
change in relevant facts and circumstances.
(2) Preparation of consolidated financial statements
The Company starts to incorporate the subsidiary into the scope of consolidation from the date of acquiring the
actual control right of the net assets and the production and operation decisions of the su bsidiary; and stops
incorporating from the date of loss of the actual control right. For a subsidy disposed of, the business performance
and cash flow prior to the date of disposal have been properly included in the consolidated income statement and
consolidated cash flow statement; the opening balance of the consolidated balance sheet shall not be adjusted for
the subsidiary disposed of in the current period. For a subsidiary added in the business combination not under
common control, the business performance and cash flow after the acquiring date have been properly included in
the consolidated income statement and consolidated cash flow statement and the opening balance and contrast
number in the consolidated financial statements shall not be adjusted. For a subsidiary added in the business
combination under common control and the combined party in consolidation by merger, their business
performance and cash flows from the beginning of the combination period to the combination date have been
properly included in the consolidated income statement and consolidated cash flow statement and the contrast
number in the consolidated financial statements shall be adjusted.
In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the
Company and subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance
with the accounting policies and the accounting period of the Company. For the subsidiary acquired in the business
combination not under common control, its financial statements are adjusted on the basis of the fair value of the
net identifiable assets on the acquiring date.
All significant current balances, transactions and unrealized profits of the Company shall be set of f when the
consolidated financial statements are prepared.
The portion of subsidiaries’ equity and the portion of subsidiaries’ current net profits and losses for the period not
attributable to Company are recognized as minority interests and minority inte rest income and presented
separately in the consolidated financial statements under equity and net profits respectively. The share of the
subsidiaries’ current net profits and losses attributable to the minority interests shall be presented in the
consolidated income statement under minority interest income. If the minority shareholders' share of the
subsidiary's losses exceeds their share of the subsidiary's initial shareholders' equity, the minority interests shall
still be offset.
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
When the Company loses the control right over the original subsidiary due to disposal of part of the equity
investment or other reasons, the residual equity shall be re -measured at its fair value on the date of losing the
control right. The difference between the sum of the cons ideration acquired by disposal of the equity and the fair
value of the residual equity, and the share of the net assets of the original subsidiary continuously calculated from
the acquiring date according to the original shareholding ratio, shall be included in the investment income in the
period of lose of the control right. Other comprehensive income related to the equity in vestment of the original
subsidiary is subject to accounting treatment through adopting the basis for the direct disposal of relevant assets or
debts (that is, except for the change caused by the remeasurement of the net liabilities or net assets of the defined
benefit plan by the original subsidiary, the remaining amount transferred into current investment income).
Subsequently, the residual equity of this part shall be further measured in accordance with the Accounting
Standards for Business Enterprises No. 2 - Long-term Equity Investments or Accounting Standards for Business
Enterprises No.22 - Recognition and Measurement of Financial Instruments and other relevant provisions, as
shown in Note IV. 13 "Long-term equity investment" or Note IV. 9 "Financial instruments".
For disposal of the equity investment in the subsidiary by steps through several times of transaction till loss of the
control right, the Company shall distinguish whether the deals for disposal of the subsidiary’s equity investment
until the loss of the control right are package deals. If the terms, conditions, and economic impact of the disposal of
deals relating to the equity investment in the subsidiary comply with one or more of the following cases, multiple
deals shall be accounted for as a package deal: ① These deals are made simultaneously or with each other in
mind; ② These deals as a whole will lead to a complete business outcome; ③ The occurrence of one deal
depends on the occurrence of at least one other deal; ④ A single deal is uneconomic, but when considered
together with other deals, it is economic. If they don’t belong to a package deal, each deal shall be su bject to
accounting treatment as appropriate respectively according to the applicable principles of “disposal of part of
long-term equity investment in the subsidiary before losing control rights” (see Note IV. 13. (2) ④) and “lose the
control right over the original subsidiary due to disposal of part of the equity investment or other reasons” (see the
preceding paragraph). If the deals for disposal of the subsidiary’s equity investment until the loss of the control right
belong to a package deal, the deals shall be subject to accounting treatment as a deal for disposal of subsidiary
and loss of the control right; however, the difference between the disposal price and the share of net assets of the
subsidiary corresponding to the disposal of investment before the loss of control right is recognized as other
comprehensive income in the consolidated financial statements and transferred into the current profit and loss in
the period of loss of control right.
7. Joint venture arrangements classification and Co-operation accounting treatment
A joint venture arrangement is an arrangement of which two or more parties have joint control. According to the
rights and obligations in the joint venture arrangement, the Company divides the joint venture arrangement into
joint management and joint venture. Joint management means the joint venture arrangement in which the
Company enjoys the assets and assumes the liabilities related to the arrangement. Joint venture means the joint
venture arrangement in which the Company has rights only to the net assets of the arrangement.
The Company's investment in the joint venture shall be accounted by the equity method and shall be treated in
accordance with the accounting policy described in Note IV. 13. (2) ② "long-term equity investment measured by
employing the equity method".
When as a joint venture party, the Company confirms the following items in joint management: confirm the asset
held solely and the asset held jointly as per share; confirm the liability borne solely and the liabili ty borne jointly as
per share; confirm the income from selling the enjoyed joint management output share; confirm the income from
58
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
selling the joint management output as per share; confirm the expense incurred solely and the expense incurred by
joint management as per share.
The company outputs or sells the asset to joint management (except the asset constitutes the business), and
before the joint management sells the asset to the third party, the part belonging to other participants in the profit
and loss incurred by the deal is only confirmed. In case that the asset confirms to the asset impairment loss
specified in Accounting Standards for Business Enterprises No. 8 - Asset Impairment, the Company shall confirm
the full loss; in the case of the asset purchased from joint management, the Company shall confirm the part loss as
per share.
8. Determining standards of cash and cash equivalents
The cash and cash equivalents represent the cash on hand, deposits readily available for payment, short -term
(generally due within three months from the date of purchase), highly liquid investments that are readily convertible
into known amounts of cash and that are subject to an insignificant risk of change in value.
9. Foreign currency transaction and foreign currency statement translation
(1) Translations denominated in foreign currencies
A foreign currency transaction of the Company is translated as bookkeeping currency amount, on initial recognition,
by applying the spot exchange rate on the date of transaction (generally the middle rate of the foreign exchange
rate published by the People's Bank of China on the day), but the foreign exchange transactions or transactions
involving foreign exchange of the Company shall be translated into the bookkeeping currency amount at the actua l
exchange rate.
(2) Translation of foreign currency monetary items and non-monetary items in foreign currency
At the balance sheet date, foreign currency monetary items are translated using the spot exchange rates at the
balance sheet date. Exchange differences arising therefrom are recognized in current profit and loss, except: ①
the exchange differences related to a specific-purpose borrowing denominated in foreign currency that qualify for
capitalization are treated according to the capitalization of borrow ing costs; ② the exchange differences caused
by changes in the book balance other than the amortized cost of foreign currency monetary items available for sale
are charged to other comprehensive income.
Non-monetary items in foreign currency measured by the historical cost are still measured according to the
bookkeeping currency amount converted by the spot rate on the transaction date. Non -monetary items in foreign
currency measured by fair value are converted by the spot rate on the recognition date of th e fair value. The
difference between the bookkeeping currency amount after conversion and the original bookkeeping currency
amount is treated as the fair value change (including exchange rate change) and charged to current profit and loss
or recognized as other comprehensive income.
(3) Translation of financial statements denominated in foreign currencies
Where the overseas operations are involved in the preparation of the consolidated financial statements, for a
foreign currency monetary item which constitutes a net investment in overseas operations, the exchange
difference resulting from the change of exchange rate shall be recognized as other comprehensive income as the
“translation differences” or shall be included in the current profit and loss on disposal of overseas operations.
Financial statements of a foreign operation are translated into RMB using the following method: the asset and
liability items in the foreign currency balance sheets shall be translated at a spot exchange rate on the balance
sheet date. Among the shareholder's equity items, except the ones as "undistributed profits", others shall be
59
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
translated at the spot exchange rate at the time when they are incurred. The income and expense items in the
income statement are converted at the spot rate on the date of transaction. The undistributed profit at the
beginning of the period is the undistributed profit at the end of the period after the translation of the previous year;
the undistributed profit at the end of the period shall be calculated an d presented in the items of profit distribution
after translation; the difference between the asset and liability items and the total number of stockholder's equity
item after translation shall be recognized as other comprehensive income as the “translatio n differences. Upon
disposal of foreign operation and loss of control right, the Company transfers the translation differences of foreign
currency statements presented in stockholder's equity in the balance sheet and relating to that foreign operation, to
the current profit and loss in full or in proportion to the weight in the foreign operation.
The spot exchange rate on the date of the cash flows shall be based on for the translation of cash flows in a foreign
currency and in an overseas subsidiary. The effect of a change in exchange rate on cash shall be separately
presented as the reconciling item in the cash flow statement.
The opening balance and the actual amount previous period shall be presented according to the amount after
translation of the financial statements for the previous period.
On disposal of the Company’s entire interest in a foreign operation or loss of control right over the foreign operation
due to disposal of part of equity investment or other reasons, the Company transfers the transl ation differences of
foreign currency statements presented in stockholder's equity in the balance sheet and relating to that foreign
operation, to the current profit and loss in full.
When the proportion of the overseas operation interests held is reduced due to the disposal of part of equity
investment or other reasons, but the control right of overseas operation is not lost, the converted difference of the
foreign currency financial statements related to the o verseas operation disposal part will belong to the minority
equity, and will not be transferred into the current profit and loss. Upon disposal of part of the equity of an overseas
operation as a joint venture or cooperative enterprise, the converted difference of the foreign currency statements
related to the overseas operation shall be transferred to the current profit and loss according to the proportion of
disposing the overseas operation.
10. Financial instruments
The Company recognizes a financial asset or financial liability when becoming a party of the financial instrument
contract.
(1) Classification, recognition and measurement of financial assets
According to the business model of managing financial assets and the contractual cash flow characteristics of
financial assets, the financial assets of the Company are classified into: financial assets measured at the amortized
cost; financial assets measured at fair value of which changes are recorded into other comprehensive income;
financial assets at fair value through profit or loss (“FVTPL”).
The financial assets are measured at fair value upon initial recognition. For the financial assets measured with fair
value and with the changes included in current profit and loss, relevant transaction costs are directly charged to the
current profit and loss; for other types of financial assets, relevant transaction costs are charged to initially
recognized amount. For accounts receivable or notes receivable arising from selling commodities or offering labor,
not containing or taking into account material financing elements, the Company shall take the amount of
consideration expected to be entitled to receive as the initial recognized amount.
① Financial assets measured at the amortized cost
The Company's business model for managing financial assets at amortized cost is to collect contractual cash flows
60
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
and the contractual cash flow characteristics of such financial assets are consistent with the basic lending
arrangements. That is, the cash flow generated on a specific date is only for the payment of the principal and the
interest based on the outstanding principal amount. Such financial assets are subsequently measured at the
amortized cost by means of effective interest method. The gain or loss generated in amortization or impairment is
charged to current profit and loss.
② Financial assets measured at fair value of which changes are recorded into other comprehensive income
The Company's business model for managing such financial assets is to collect contractual cash flows and to sell
and the contractual cash flow characteristics of such financial assets are consistent with the basic lending
arrangements. Such financial assets are measured at fair value and their changes are recorded into other
comprehensive income, but impairment losses or gains, exchange gains and loss es and interest income
calculated in by effective interest method are charged to current profit and loss.
The Company designates some non-transactional equity instruments as the financial assets measured at fair value
of which changes are recorded into other comprehensive income. Relevant dividends income of such financial
assets are recorded into the current profit and loss and the change in the fair value is recorded into other
comprehensive income. When the financial assets are derecognized, the accumula ted gains or losses previously
recorded in other comprehensive income will be transferred from other comprehensive income to retained
earnings, not included in current profit and loss.
③ FVTPL
The above financial assets measured at the amortized cost and the financial assets measured at fair value of
which changes are recorded into other comprehensive income are classified as financial assets at fair value
through profit or loss (“FVTPL”). In addition, in order to eliminate or significantly reduce the account ing mismatch
on initial recognition, some financial assets are designated as FVTPL. Such financial assets are subsequently
measured at the fair value and the change in the fair value is recorded into current profit and loss.
(2) Classification, recognition and measurement of financial liabilities
Financial liabilities, upon initial recognition, are divided into those measured with fair value and with the changes
included in current profit and loss and other financial liabilities. For the financial liabilities m easured with fair value
and with the changes included in current profit and loss, relevant transaction costs are directly charged to the
current profit and loss; for other financial liabilities, relevant transaction costs are charged to initially recognize d
amount.
① Financial liabilities measured with fair value and with the changes included in current profit and loss
Financial liabilities measured with fair value and with the changes included in current profit and loss, including the
trading financial liabilities (including derivative instruments belonging to financial liabilities) and the financial
liabilities measured with fair value and with the changes included in current profit and loss upon initial recognition.
The trading financial liabilities (including derivative instruments belonging to financial liabilities) are subsequently
measured at the fair value. Except with respect to hedging, the change in the fair value is recorded into current
profit and loss.
As for a financial liability measured with fair value and with the changes included in current profit and loss, the
change in the fair value caused by the credit risk change of the Company is recorded into other comprehensive
income and when the liability is derecognized, the accumulated change amoun t of the fair value caused by the
credit risk change and recorded into other comprehensive income is transferred to retained earnings. The rest
changes in the fair value of the derivative instruments are recorded into the current profit and loss. If the tr eatment
of the influence of the credit risk change of such financial liability b y above method will cause or enlarge the
accounting mismatch in the profits and losses, all profits or losses (including the amount affected by the credit risk
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
changes of the Company) of the financial liability will be recorded into current profit and loss.
② Other financial liabilities
The financial liabilities, other than the financial liabilities and financial guarantee contracts formed by the transfer of
financial assets not conforming to the derecognition conditions or by continuing to involve in the transferred
financial assets, are classified as financial liabilities measured at amortized cost, and shall be further measured at
the amortized cost. Profits or losses arising from the derecognition or amortization are recorded into current profit
and loss.
(3) Recognition basis and measurement method for transfer of financial assets
The financial asset is derecognized when meeting any of the following conditions: ① The contract right to charge
the cash flow of the financial asset is terminated; ② The financial asset has been transferred and almost all risks
and remuneration of the financial asset ownership are transferred to the transferee; ③ The financial asset has
been transferred and the enterprise does neither transfer nor retain almost all risks and remuneration of the
financial asset ownership but gives up the control over the financial asset.
If the enterprise does neither transfer nor retain almost all risks and remuneration of the financial asset ownership,
nor give up the control over the financial asset, relevant financial asset is recognized according to the degree of the
transferred financial assets continued to be involved and relevant liability is recognized accordingly. The degree of
the transferred financial assets continued to be involved refers to the risk level faced by the enterprise due to the
financial asset value change.
If the o verall transfer of the financial asset meets the de-recognition conditions, the difference of the book value of
the transferred financial asset from the sum of the consideration received and the cumulative amount of the fair
value changes originally included in other comprehensive income is charged to the current profit and loss.
If the partial transfer of the financial asset meets the de-recognition conditions, the book value of the transferred
financial asset is distributed between the derecognized and non -derecognized part according to the relative fair
value and the difference of the sum of the consideration received from transfer and the cumulative amount of the
fair value changes in the derecognized part originally included in other comprehensive income from the distributed
book value is charged to current profit and loss.
For the financial asset sold in the form of attached right of recourse or endorsement transfer of the held financial
asset, the Company shall determine whether almost all risks and remuneration in the financial asset ownership
have been transferred. If almost all risks and remuneration in the financial asset ownership have been transferred
to the transferee, the Company de-recognizes the financial asset; if almost all risks and remuneration in the
financial asset ownership have been reserved, the Company does not de -recognize the financial asset; if almost all
risks and remuneration in the financial asset ownership are neither transferred nor reserved, the Company
continues to judge whether the enterprise has reserved control over the asset and performs accounting treatm ent
according to the principles in above-mentioned paragraphs.
(4) De-recognition of financial liabilities
The Company derecognizes a financial liability (or part of it) only when the present obligation is discharged. An
agreement between the Company (borrower) and a lender to replace the original financial liability with a new one
with substantially different terms is accounted for as the derecognition of the original financial liability and the
recognition of a new financial liability. When the Company makes material alteration to the contract terms of the
original financial liability (or part of it), it derecognizes the original financial liability and recognizes a new one
according to the altered terms.
When a financial liability (or part of it) is derecognized, the difference between the book value of the derecognized
part and the consideration paid (including non-cash asset transferred out or the liability undertaken) is charged to
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current profit and loss.
(5) Offset of financial assets and financial liabilities
The financial asset and financial liability are listed in the balance sheet in the form of amount after mutual offset
when the Company has the legal right to offset the recognized financial asset and financial liability, may e xecute
the legal right currently and plans to settle with net amount or realize the financial asset and pay off the financial
liability simultaneously. Besides, the financial assets and financial liabilities are listed respectively in the balance
sheet and not mutually offset.。
(6) Fair value determination method of financial assets and financial liabilities
Fair value refers to the price received by the market participant from sell of an asset or paid by the market
participant for transfer of a liability in the orderly transaction in the date of measurement. If an active market exists
for a financial instrument, the fair value of such instrument is recognized by the quotation in the active market.
Quotation in the active market refers to the price easily obtained from the exchanges, broke rs, trade associations
and pricing services regularly and representing the actual market transaction price in the fair transaction. If an
active market is not available for a financial instrument, its fair value is recognized by means of valuation
techniques, including reference to the price used by the parties familiar with the situation and willing to trade in the
recent market transaction and reference to the current fair value, discounted cash flow method and options pricing
model of other financial ins truments identical essentially. Upon valuation, the Company adopts valuation
techniques applicable to the current situation and supported by sufficient available data and other information,
selects input values consistent with the asset or liability characteristics considered by market participants in the
transaction of related assets or liabilities, and gives priority to relevant observable input values. The Company uses
non-inputable values when relevant observable input values cannot be obtained or are n ot practicable to obtain.
(7) Equity instruments
The equity instrument refers to the contract proving that the Company has the residual equity in the assets after
deducting all liabilities. The Company issues (including refinancing), repurchases, sells or canc els equity
instruments as changes in equity, and transaction costs related to equity transactions are deducted from the equity.
The Company does not recognize the fair value change of the equity instruments.
Dividends paid on the Company's equity instruments during their existence (including the "interest" generated by
the instruments classified as equity instruments) shall be distributed as profits.
11. Accounts receivable
The financial assets for which the Company needs to confirm the impairment loss are the financial assets
measured at the amortized cost, debt instrument investments measured at fair value of which changes are
recorded into other comprehensive income, and lease receivables, mainly including notes receivable, accounts
receivable, other receivables, equity investments, other equity investments and long-term receivables. In addition,
for the contract assets and part of the financial guarantee contracts, the provision for impairment is withdrawn and
credit impairment loss is recognized in accordance with the accounting policies mentioned in this part.
(1) Recognition of provision for impairment
On the basis of the expected credit loss, the Company shall calculate and withdraw the provision for impairment
and recognize the credit impairment loss for the above items in accordance with the applicable expected credit loss
measurement methods.
Credit loss refers to the difference between all contract cash flows discounted by the Company at the original
effective interest rate and receivable according to the contract and all expected cash flows received, that is, the
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present value of all cash shortage. The financial assets purchased or originated that have suffered from credit
impairment shall be discounted at the effective interest rate of the financial assets through credit adjustment.
The general method for the measurement of expected credit losses is as follows: on each balance sheet date, the
Company evaluates whether the credit risks of financial assets (including contract assets and other applicable
items, similarly hereinafter) have increased significantly since the initial recognition. If so, the Company shall
measure the loss provision according to the amount equivalent to the expected credit loss in the whole duration; if
not, the Company shall measure the loss provision according to the amount equivalent to the expected credit loss
in the next 12 months. The Company takes into account all reasonable and substantiated information, including
forward-looking information, in assessing expected credit loss.
For a financial instrument with low credit risk on the balance sheet date, the Company assumes that the credit risk
has not increased significantly since the initial recognition, and chooses to measure the loss provision according to
the expected credit loss in the next 12 months.
(2) Criteria for judging whether the credit risk increases significantly after the initial confirmation
If the probability of default of a financial asset in the expected duration determined on the balance sheet date is
significantly higher than that in the expected duration determined upon initial recognition, the credit risk of the
financial asset has significantly increased. Except for special cases, the Company determines whether the credit
risk has significantly increased after initial recognition by reasonably estimating the default risk changes in the
whole duration through the default risk changes in the next 12 months.
(3) Combination method to assessing expected credit risk on a combination basis
The Company makes single assessment of the credit risks for the notes receivable, accounts receivable and other
receivables with significantly different credit risks and the following features, such as accounts receivable from
related parties; accounts receivable in dispute with the other party or in volving litigation or arbitration; accounts
receivable with obvious signs that the debtor is likely to be unable to perform the repayment obligations.
In addition to the financial assets that are subject to single assessment of credit risks, th e Company divides
financial assets into different groups based on common risk characteristics, and evaluates credit risk on the basis
of combination.
(4) Accounting treatment method of financial assets impairment
At the end of the period, the Company calculates the expected credit loss of various financial assets. If the
expected credit loss is greater than the carrying amount of the current impairment provision, the difference is
recognized as an impairment loss; if it is less than the carrying amount of the c urrent impairment provision, the
difference is recognized as an impairment gain.
(5) Recognition of credit losses on financial assets
For financial assets that are subject to single assessment of credit risks, the Company shall always measure the
loss provision according to the amount equivalent to the expected credit loss within the duration.
Based on the credit risk characteristics, the financial assets without credit impairment in the single assessment are
divided into different combinations:
① Recognition bas is for credit risk characteristic combination
Item Basis for recognition of combination
Combination 1 (aging combination) Except for accounts receivable and other receivables which have
been separately measured for loss provision, the Company
determines loss provision based on forward-looking information and
expected credit losses of a combination of the same or similar
accounts receivable and other receivables that have similar credit risk
characteristics and are divided by aging in previous years.
Commercial acceptance is divided according to the credit risk of the
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acceptor, which is the same as the combination division of "accounts
receivable"
Combination 2 (combination of financial Banker's acceptance with extremely low credit risk
assets with extremely low credit risk)
Combination 3 (combination of related Receivables of related parties
parties in the consolidation scope)
Aging analysis is based on the date of entry.
② When the credit risk assessment is implemented by combination, the Company shall m easure the expected credit
loss based on the expected duration and recognize the loss provision of the financial assets according to the
combination structure of financial assets and similar credit risk characteristics (the cash payment on account ability
of the debtor in accordance with the terms of the contract) and combined with the historical experience of default
losses and current economic conditions and forward-looking information.
Accrual method of loss provisions measured by different combinations:
Item Accrual method
Combination 1 (aging combination) Calculate the expected credit loss according to the expected credit
loss rate of accounts receivable with different aging
Combination 2 (combination of financial The expected credit loss rate is 0 and the expected credit loss is 0
assets with extremely low credit risk)
Combination 3 (combination of related The expected credit loss rate is 0 and the expected credit loss is 0
parties in the consolidation scope)
③ The expected credit loss rate of each combination is shown as follows:
Combination 1 (aging combination): expected credit loss rate
Aging Expected credit loss rate of accounts Expected credit loss rate of other
receivable (%) receivables (%)
Within 1 year (including 1 year, 5.00 5.00
the same below)
1-2 years 10.00 10.00
2-3 years 20.00 20.00
3-4 years 50.00 50.00
4-5 years 80.00 80.00
More than 5 years 100.00 100.00
(Continued)
Aging Accruing proportion of notes receivable (%)
Within 6 months (including 6 months) 1.00
More than 6 months : 2.00
Combination 2 (combination of financial assets with extremely low credit risk): the expected credit loss rate is 0
combined with the historical experience of default losses and current economic conditions and forward -looking
information;
Combination 3 (combination of related parties): the expected credit loss rate is 0 combined with the historical
experience of default losses and current economic conditions and forward -looking information;
Combination 4 (margin combination): the expected credit loss rate is 0 combined with the historical experience of
default losses and current economic conditions and forward-looking information.
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12. Other receivables
See accounts receivable in this note for details
13. Inventory
Does the Company need to follow the disclosure requirements of special industries
No
(1) Classification of inventories
Inventories include goods shipped in transit, merchandise inventory, raw materials, work in progress, low priced
and easily worn articles and wrappage.
(2) Pricing methods for inventory obtaining and shipping
The inventories are price according to the actual cost when obtained, including purchase cost, processing cost and
other costs, and are priced by the weighted average method when received and issued.
(3) Recognition of net realizable value of inventories and accrual method of falling price reserves
The net realizable value of inventories is the amount of the estimated sale price of the inventories subtracted by the
estimated cost about to occur in completion, estimated selling expenses and related taxes in daily activities. The
net realizable value of inventories is recognized on the basis of the unambiguous evidence and with consideration
to the purpose of the inventories held and the influence of the post-balance sheet events.
The inventories are measured on the balance sheet date according to the cost of inventories or net realizable value,
whichever is lower. The inventory falling price reserves are withdrawn when the net realizable value is lower than
the cost. The inventory falling price reserves are withdrawn according to the difference between the cost of a single
inventory item and its net realizable value.
If the influence factors writing down the inventory value before have disappeared after withdrawal of the inventory
falling price reserves, resulting in the net realizable value of the inventories higher than the book value, the amount
written down is recovered and written back within the originally withdrawn amount of inventory falling price
reserves and the amount written back is included in current profits and losses.
(4) The perpetual inventory system is adopted for the inventories.
(5) Amortization methods of low priced and easily worn articles and wrappage
The low priced and easily worn articles and the wrappage are amortized by one -off amortization method when
received.
14. Assets held for sales
If the Company recovers the book value of an asset mainly through the sale (including the non -monetary assets
exchange of commercial nature, the same hereinafter) rather than continuous use of a non -current asset or
disposal group, such asset is classified as an asset held for sales when meeting the following conditions
simultaneously: a non-current asset or disposal group is immediately available for sales in the present condition,
as is the practice of selling such asset or disposal group in a similar deal; the Company has made a resolution on
the sale plan and gained definitive purchase commitments; the sale is expected to be finished within one year. The
disposal group refers to a group of assets disposed of as a whole in a deal by sale or otherwise together, and
liabilities directly related to those assets transferred in the deal. Where the asset group or asset group combination
to which the disposal group belongs has shared the goodwill acquired in the business combination in accordance
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with the Accounting Standards for Business Enterprises No. 8 - Asset Impairment, the disposal group shall contain
the goodwill allocated to the disposal group.
Upon initial measurement or remeasurement of the non-current asset and disposal group held for sale on the
balance sheet date, if the book value is higher than the net amount of the fair value minus the selling expense, the
book value is written down to the net amount of the fair value minus the selling expense, the amount written down
is recognized as the assets impairment loss and included in the current profit and loss. The provision for
impairment of available for sale assets is withdrawn. The assets impairment loss recognized for the disposal group
shall first offset the book value of goodwill in the disposal group and then offset proportionally the book value of the
non-current assets in the disposal group applying the Accounting Standards for Business Enterprises No. 42 -
Non-current Assets and Disposal Groups Held for Sale and Discontinued Operations (“held for sale criteria”).
Where the net amount of the fair value of the held for sale disposal group minus the selling expense is increased
on the balance sheet date, the amount written down previously sho uld be recovered and written back in the assets
impairment loss amount recognized for the non-current assets applying the held for sale criteria after classified as
asset held for sales. The amount written back is recorded into current profit and loss and its book value is
increased proportionally according to the proportion of the book value of the non -current assets applying the held
for sale criteria, except goodwill, in the disposal group; the book value of the goodwill written down and the assets
impairment loss recognized for the non-current assets applying the held for sale criteria before classified as held
for sale category shall not be written back.
The depreciation or amortization is not withdrawn for the non -current assets held for sale or for those in the
disposal group, and the interest and other expenses on liabilities held for sale in the disposal group continue to be
recognized.
The non-current assets or disposal group, if no longer meeting the classification conditions for held for sale
category, are not classified as the held for sale category and the non -current assets shall be removed from the
disposal group held for sale and measured according to the lower of the following two: (1) amount after adjustment
according to the depreciation, am ortization, or impairment that would have been recognized if it had not been
classified as held for sale category, as for the book value before classified as held for sale category; (2)
recoverable amount.
15. Long-term equity investment
Long-term equity inves tment referred to in this part refers to the long-term equity investment in which the Company
has control, joint control or significant influence over the investee. Long -term equity in vestment, in which the
Company has no control, joint control or significant influence over the investee, is calculated as available -for-sale
financial assets or FVTPL and its accounting policies are shown in Note IV. 9 “Financial instruments”.
Joint control refers to the Company's common control over an arrangement in accordan ce with the relevant
agreement, and the related activities of the arrangement can only be decided upon the unanimous consent of the
parties sharing the control. Significant influence means that the company has the power to participate in the
formulation of financial and operating policies of the investee, but not the power to control or jointly control the
formulation of these policies together with other parties.
(1) Recognition of investment cost
For the long-term equity investment acquired through business combination under common control, the share of
the book value of the owner’s equity of the combining party in the consolidated financial statements of the final
controlling party, on the combination date, is regarded as the initial cost of the long -term equity investment. The
difference between the initial cost of the long-term equity investment and the payment in cash, non-cash assets
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transferred as well as the book value of the debts borne by the merging party shall offset against the capital
reserve. If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted. Where equity
securities are issued as consideration for combination, the share of the book value of the owner’s equity of the
combining party in the consolidated financial statements of the final controlling party, on the combination date, is
regarded as the initial cost of the long-term equity investment and the total par value of the issued shares is
regarded as the capital stock. The difference between the initial cost of long-term equity investment and the total
par value of the issued shares is adjusted against capital reserve; if the capital reserve is not sufficient to absorb
the difference, the retained earnings shall be adjusted. If the Company acquires the equity of the combined party
under common control by steps through several deals and finally forms business combination under common
control, such deals shall be judged whether to belong to “package deal”: if so, the deals shall be subject to
accounting treatment as a deal to obtain the control right. If not, the share of the book value of the owner’s equity of
the combining party in the consolidated financial statements of the final controlling party, on the combination date,
is regarded as the initial cost of the long-term equity investment. The difference between the initial cost of the
long-term equity investment and the sum of the book value of the long -term equity investment before the
combination plus the book value of the new consideration for shares on th e combination date is adjusted against
capital reserve; if the capital reserve is not sufficient to absorb the difference, the retained earnings shall be
adjusted. The other comprehensive income of the equity investment held before the combination date, wh ich is
accounted by the equity method or recognized for the available -for-sale financial assets, shall not be subject to
accounting treatment for the time being.
For the long-term equity investment acquired through business combination not under common con trol, the
combined cost on the acquiring date is the initial investment cost of the long -term equity in vestment and includes
the sum of the fair values of the assets paid by the acquired, liabilities incurred or assumed and equity securities
issued. If the Company acquires the equity of the acquiree by steps through several deals and finally forms
business combination under common control, such deals shall be judged whether to belong to “package deal”: if so,
the deals shall be subject to accounting treatment as a deal to obtain the control right. If not, the sum of the book
value of the equity investment held in the acquiree and newly increased investment cost shall be considered as
initial cost of the long-term equity investment that calculates according to cost method. Where the equity originally
held is accounted for by the equity method, other relevant comprehensive income shall not be subject to
accounting treatment for the time being. If the original equity investment is an available -for-sale financial asset, the
difference between its fair value and book value, as well as the change in the accumulated fair value that was
originally recorded in other comprehensive income, shall be transferred to the current profit and loss.
The intermediary expenses incurred by the combining party or acquirer in respect of auditing, legal services,
valuation and consultancy services, etc. and other associated administrative expenses attributable to the business
combination are recognized in the current profit and loss when they are incurred.
Equity investments other than long-term equity investments formed by business combination shall be initially
measured at cost, which shall be recognized depending on the acquiring method of the long -term equity
investments, according to the cash purchase price actually paid by the Company, fair value of equity securities
issued by the Company, conventional value in the investment contract or agreement, fair value or original book
value of the assets surrendered in the exchange of non -monetary assets and fair value of the long-term equity
investments. Expenses, taxes and other necessary e xpenses directly related to the acquisition of long -term equity
investment are also included in the investment cost. Where the Company can exert signifi cant influence on the
investee or implement joint control but does not control the investee through additional investment, the long -term
equity investment cost is the sum of the fair value of the original equity investment recognized according to the
Accounting Standards for Business Enterprises No.22 - Recognition and Measurement of Financial Instruments
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
and the additional investment cost.
(2) Subsequent measurement and recognition methods of profits and losses
The company employs the equity method to account the long-term equity investment that the invested entity has
control over (except those constituting joint operators) or has significant impact on the invested entity. Moreover,
the long-term equity investment that can control the investee can be checked b y the cost method in the Company’s
financial statements.
① Long-term equity investment checked by cost method
Under the cost method, a long-term equity investment is measured at initial investment cost and the cost of
adjusting long-term equity investment is added or recovered. Except for cash dividends or profits already declared
but not yet paid that are included in the price or consideration actually paid upon acquisition of the investment,
investment income is recognized in the period in accordance with the attributable share of cash dividends or profit
distributions declared by the investee.
② Long-term equity investment checked by equity method
For checking by the equity method, the initial investment cost of the long -term equity investment is not adjusted if it
is greater than the fair value share of the net identifiable assets of the investee in the investment; if the initial
investment cost of the long-term equity investment is smaller than the fair value share of the net identifiable assets
of the inves tee in the investment, the balance is charged to current profit and loss and the cost of the long -term
equity investment is adjusted.
Under the equity method, the Company recognizes the investment income and other comprehensive income
according to its share of net profit or loss and other comprehensive income of the investee, and adjusts the boot
value of the long-term equity investment accordingly; the Company decreases the book value of the long -term
equity investment accordingly in accordance with the share of the profit distribution or cash dividends declared by
the investee; for changes in owners’ equity of the investee other than those arising from its net profit or loss, other
comprehensive income and profit distribution, the Company adjusts the book value of the long-term equity
investment and records in the capital reserves. The share of the net profits and losses of the investee to be
enjoyed shall be recognized after adjustment of the new profits of the investee on the basis of the fair value of th e
identifiable assets of the investee when the investment is obtained. Where the accounting policies and accounting
periods adopted by the investee are inconsistent with those of the Company, the financial statements of the
investee shall be adjusted according to the accounting policies and accounting periods of the Company, and the
investment income and other comprehensive income shall be recognized accordingly. Where the assets invested
or sold for the deals of the Company with joint ventures and cooperative enterprises do not constitute a business,
the part of the unrealized internal deal profits and losses attributable to the Company is offset according to the
enjoyed proportion and the profit and loss on investments are recognized on this basis. However, unrealized
internal deal loss between the Company and the investee is not offset if attributable to the impairment loss of
transferred assets. Where the assets invested by the Company in a joint venture or cooperative enterprise
constitute a business and the investor thus acquires long-term equity investment but does not acquire the control
right, the fair value of the invested business is the initial investment cost of the new long -term equity investment,
and the difference between the initial investment cost and the book value of the invested business is fully recorded
into the current profit and loss. Where the assets sold by the Company to a joint venture or cooperative enterprise
constitute a business, the difference between the acquired consideration and the book value of the business is fully
recorded into the current profit and loss. Where the assets purchased by the Company from a joint venture or
cooperative enterprise constitute a business, the Company shall make accounting treatment according to the
Accounting Standards for Business Enterprises No. 20 - Business Combination and recognize any gains or losses
associated with the deal in full.
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The net loss of the investee to be shared is recognized within the limit of the book value of long -term equity
investment and other long-term equity substantially constituting the net investment of the investee written down to
zero. Moreover, if the Company has the obligation to bear the additional loss of the investee, the estimated
liabilities are recognized according to the expected obligation and charged to the current investment loss. If the
investee achieves the net profits in the later periods, the Company recovers to recognize the gain sharing amount
after making up for the unrecognized loss sharing amount with the gain sharing amount.
③ Acquisition of minority equity
In preparing the consolidated financial statements, the difference between the long -term equity investment
increased for purchase of minority equity and the share of the net assets to be enjoyed and continuously calculated
from the acquiring date (or combination date) according to the increased shareholding ratio is adjusted against
capital reserve; if the capital reserve is not sufficient to absorb the difference, the retained earnings shall b e
adjusted.
④ Disposal of long-term equity investment
In consolidated financial statement, when the parent company disposes of part of long -term equity investment in
the subsidiary before losing control rights, the difference between the disposal price and the disposal of long-term
equity investment that corresponds to the net assets of the subsidiary shall be included in the stockholder's equity;
when the parent company loses its control rights over the subsidiary because of the disposal of part equity
investment, the accounting treatment shall be conducted according to relevant accounting policies in the Note IV. 5
(2) “Preparation of consolidated financial statements”.
On disposal of the long-term equity in vestment in the other circumstances, the balance be tween the book value of
the equity disposed of and the actual price obtained is charged to current profit and loss.
Where the residual equity after disposal of the long-term equity investment measured by employing the equity
method is still measured by the equity method, on disposal, the other comprehensive income originally recorded
into the stockholder's equity shall be subject to accounting treatment in proportion through adopting the basis for
the direct disposal of relevant assets or debts. The owner's equity recognized due to changes in the owner's equity
of the investee other than net profit and loss, other comprehensive income and profit distribution shall be carried
forward into current profit and loss in proportion.
Where the residual equity after disposal of the long-term equity investment measured by employing the cost
method is still measured by the cost method, the other comprehensive income recognized for accounting by using
equity method or financial instrument recognition and measurement stan dard before acquisition of the control over
the investee shall be subject to accounting treatment in proportion through adopting the basis for the direct
disposal of relevant assets or debts and carried forward into current profit and loss in proportion; t he changes in
owners’ equity of the investee other than net profit and loss, other comprehensive income and profit distribution in
the net assets of the investee recognized for accounting by using equity method shall be carried forward into
current profit and loss in proportion.
When the Company loses its control rights over the investee before of the disposal of part equity investment, on
preparing of individual financial statement, in case of disposed residual equity with joint control or significant impa ct
on the investee, the Company shall calculate with equity method and adjust the residual equity with equity method
since the time of obtaining; in case of the disposed residual equity being not be able to jointly control or have a
significant impact on the investee, the Company shall conduct accounting treatment according to relevant
regulations in Recognition and Measurement of Financial Instruments, and account the balance between the fair
value on the date losing control and book value into current pro fit and loss. Other comprehensive income
recognized for accounting by using equity method or financial instrument recognition and measurement standard
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
before acquisition of the control over the investee shall be subject to accounting treatment through adop ting the
basis for the direct disposal of relevant assets or debts on loss of the control over the investee; the changes in
owners’ equity of the investee other than net profit and loss, other comprehensive income and profit distribution in
the net assets of the investee recognized for accounting by using equity method shall be carried forward into
current profit and loss. Where the residual equity after disposal is calculated by equity method, the other
comprehensive income and other owner’s equity are carried forward in proportion; where the residual equity after
disposal is subject to accounting treatment according to the financial instrument recognition and measurement
standard, the other comprehensive income and other owner’s equity are carried forward in full.
Where the Company loses its joint control or significant influence over the investee due to disposal of part of equity
investment, the residual equity after disposal is calculated according to the financial instrument recognition and
measurement s tandard, and the balance between the book value and the fair value on the date of loss of the joint
control or significant influence is recorded into current profit and loss. Other comprehensive income of the original
equity investment recognized by the equity method shall be subject to accounting treatment through adopting the
basis for the direct disposal of relevant assets or debts when the equity method is terminated. The owner’s equity
recognized for the changes in the owner’s equity of the investee other than the net profit and loss, other
comprehensive income and profit distribution is fully carried forward into the current investment income when the
equity method is terminated.
If the deals for disposal of the subsidiary’s equity investment by steps through several times of transaction until the
loss of the control right belong to a package deal, the deals shall be subject to accounting treatment as a deal for
disposal of the equity investment in the subsidiary and loss of the control right; the diffe rence between each
disposal price and the book value of the long-term equity investment corresponding to the equity disposed of
before the loss of control right is recognized as other comprehensive income and then transferred into the current
profit and loss in the period of loss of control right.
16. Investment properties
Measurement mode of investment properties
Cost method
Method of depreciation or amortization
Investment properties refer to the properties held for rent gain or capital gain or the both there of, including the
leased land use right, land use right held for transfer after appreciation and leased building. In addition, the vacant
buildings held by the Company for operation and lease may also be presented as investment properties if the
board of directors (or similar body) makes a written resolution to use them for operation and lease and the intention
of holding them is not changed in the short term.
The investment properties are initially measured by cost. Subsequent expenditure related to investment properties,
if the economic benefits related may flow in and the cost can be reliably measured, is included in the cost of
investment properties. The other subsequent expenditure is charged to current profit and loss in occurrence.
The investment properties are subsequently measured by the Company in the cost mode and depreciated or
amortized according to the policy consistent with the house, building or land use right.
See Note IV. 20 “Long-term assets impairment” for the impairment test method and accrual method of provision for
impairment of investment properties.
In case of conversion of self-use property or inventory to in vestment property or conversion of investment property
to self-use property, the book value before conversion shall be recognize d as the entry value after conversion.
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If an investment property is disposed of, or withdraws permanently from use and it is expected that no economic
benefit will be obtained from the disposal, the investment property shall be derecognized. The income from sale,
transfer, scrap or damage disposal of investment properties is included in current profits and losses after deducting
the book value and related taxes.
17. Fixed assets
(1) Recognition conditions
The fixed assets refer to the tangible assets which are held for production of goods, provision of labor, lease or
operating management and whose service life exceeds a fiscal year. The fixed assets can be recognized only
when the economic benefits related to the fixed assets are likely to flow to the Company and w hen the cost of the
fixed assets can be reliably measured. The fixed assets are initially measured according to the cost and the
influence of the expected disposal cost factors.
(2) Depreciation method for fixed assets
The depreciation of the fixed assets is calculated and distilled by the straight-line depreciation method in the
service life from the next month after reaching the expected serviceable conditions. The service life, expected net
residual value and yearly depreciation of various fixed assets are as follows:
Yearly depreciation
Category Depreciation method Depreciation life (year) Residual rate (%) (%)
Houses and building Straight-line method 20.00 5.00 4.75
Machinery equipment Straight-line method 10.00 5.00 9.50
Transportation equipment Straight-line method 5.00 5.00 19.00
Other equipment Straight-line method 5.00 5.00 19.00
The expected net residual value is the amount acquired by the Company from the asset disposal after deducting
the expected disposal costs assuming that the expected service life of the fixed asset is expired and the fixed asset
is in the expected state at the end of life.
(3) Impairment test method and accrual method of provision for impairment of fixed assets
See Note IV. 20 “Long-term assets impairment” for the impairment test method and accrual method of provision for
impairment of fixed assets.
(4) Recognition basis and valuation methods of fixed assets under financing lease
Finance lease is the lease substantially transferring all risks and remuneration related to the asset o wnership and
its ownership may be transferred or not finally. The depreciation of the fixed assets under financing lease is
calculated and withdrawn according to the depreciation policy consistent with the own fixed assets. Where it can
be reasonably determined that the ownership of the leased assets can be acquired upon the expiration of the lease
term, depreciation shall be calculated and withdrawn within the service life of the leased assets; where it is
impossible to reasonably determine that the owners hip of the leased assets can be acquired upon the expiration of
the lease term, the depreciation shall be calculated and withdrawn within a shorter period of the lease term and the
service life of the leased assets.
(5) Other description
Subsequent expenditure related to fixed assets, if the economic benefits related may flow in and the cost can be
reliably measured, is included in the fixed asset cost and the book value of the replaced part is derecognized. The
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other subsequent expenditure is charged to current profit and loss upon occurrence.
When the fixed assets are disposed of or cannot generate economic benefits through expected use or disposal,
the fixed assets are derecognized. The income from sale, transfer, scrap or damage disposal of fixed assets is
included in current profits and losses after deducting the book value and related taxes.
The Company shall review the service life, estimated residual value and depreciation method of the fixed assets at
least at the end of each year and handle any change as the accounting estimate change.
18. Construction in progress
The cost of the construction in progress is confirmed according to the actual engineering cost, including all
construction expenditures incurred during construction, the price costs that shall be capitalized before the
construction reaches the intended serviceable condition and other related costs. The construction in progress is
carried forward as the fixed assets when reaching the intended serviceable condition.
See “Long-term assets impairment” for the impairment test method and accrual method of provision for impairment
of construction in progress.
19. Borrowing costs
Borrowing costs include interest on borrowings, amortization at a discount or premium, auxiliary e xpenses as well
as the balance of exchange from the foreign currency loans. The construction or production borrowing costs
directly attributable to the assets meeting the capitalization conditions start capitalizing when the expenditure to
acquire and the borrowing costs have occurred and the construction or production activities required to make the
assets reach the usable or marketable status have started; stop capitalizing when the construction or production
assets meeting the capitalization conditions reach the usable or marketable status . The other borrowing costs are
recognized as costs in the period of occurrence.
The amount of the interest expenses incurred from the special borrowing actually in the current period subtracted
by the interest income from the unused borrowing funds in the bank or the investment income from the temporary
investment is capitalized; the capitalization amount of the general borrowing is recognized according to the
weighted average of the expenditure to acquire of the accumulated expenditure to acquire exceedin g the special
borrowing multiplied by the general borrowing occupied. The capitalization rate is calculated and recognized
according to the weighted average interest rate of the general borrowing.
The balance of exchange of the special borrowing in foreign currency is fully capitalized during the capitalization;
the balance of exchange of the general borrowing in foreign currency is charged to the current profit and loss.
Assets meeting the capitalization conditions refer to the fixed assets, investment pro perties, inventories and other
assets which can reach the intended usable or marketable status only after quite a long time of construction or
production activities.
In case of abnormal interrupt of the assets meeting the capitalization conditions for more than 3 consecutive
months in the construction or production process, the capitalization of the borrowing costs is suspended until the
asset construction or production activities resume.
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20. Intangible assets
(1) Valuation method, service life and impairment test
(1) Intangible assets
Intangible assets refer to the identifiable non -monetary assets without physical form owned or controlled by
the Company.
The intangible assets are initially measured according to the cost: The expenditure related to intangible
assets, if the economic benefits related may flow in the Company and the cost can be reliably measured, is
included in the cost of intangible assets. The other expenditure of items is charged to current profit and loss in
occurrence.
The land use right acquired is generally checked as intangible assets. The relevant land use right expenditure
and building construction cost of the self-developed and constructed plants and other buildings are checked
as intangible assets and fixed assets respectively. Relevant price o f the purchased houses and buildings is
allocated between the land use right and the buildings and that different to distribute reasonably is fully
treated as the fixed assets.
The amount of the original value of intangible assets with limited service life minus the estimated residual
value and accumulated amount of provision for impairment withdrawn is amortized averagely by stages by
the straight-line method in the expected service life. Intangible assets with uncertain service life may not be
amortized.
The service life and amortization methods of the intangible assets with limited service life are reviewed at the
end of each period and any change shall be treated as the accounting estimate change. Moreover, the
service life of the intangible assets with uncertain service life shall be reviewed. If there is evidence that the
period of economic benefits brought by the intangible assets to the enterprise is foreseeable, the service life
of the intangible assets is estimated and the intangible assets are amor tized according to the amortization
policy of the intangible assets with limited service life.
(2) Accounting policy of expenditure for internal research and development
The expenditure of the Company's internal R&D projects is classified into the expenditure at the research stage
and the expenditure at the development stage.
The expenditure at the research stage is charged to the current profit and loss in occurrence.
The expenditure at the development stage can be recognized as intangible assets only when mee ting the following
conditions and charged to the current profit and loss if not meeting the following conditions:
① Technically feasible to complete the intangible assets, so that they can be used or sold;
② It is intended to finish and use or sell the intangible assets;
③ Ways of intangible assets to generate economic benefits, including those can prove that the products generated by
the intangible assets can be sold or the intangible assets themselves can be sold and prove that the intangible
assets to be used internally are useful;
④ It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with the
support of sufficient technologies, financial resources and other resources; and
⑤ The development expenditures of the intangible assets can be reliably measured.
If the expenditure at the research stage and the expenditure at the development stage cannot be distinguished, the
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R&D expenditure incurred is fully charged to the current profit and loss.
(3) Impairment test method and accrual method of provision for impairment of intangible assets
See Note IV. 20 “Long-term assets impairment” for the impairment test method and accrual method of provision for
impairment of intangible assets.
21. Long-term assets impairment
On the balance sheet date, the Company judges the impairment signs of the fixed assets, construction in progress,
intangible assets with limited service life, investment properties measured through the cost method, long -term
equity investments in subsidiaries, joint ventures and cooperative enterprises and other non-current non-financial
assets and will estimate the recoverable amount and conduct impairment test in case of impairment signs. The
goodwill, intangible assets with uncertain service life and intangible assets that have not yet reached the usable
state shall be subject to impairment test every year regardless of whether there are signs of impairment.
If the impairment test results show that recoverable amount of the asset is below its book value, the provis ion for
impairment is withdrawn according to the balance and charged to the impairment loss. The recoverable amount is
determined according to the higher of the net amount of the assets fair value subtracted by the disposal costs and
the present value of the e xpected future cash flow of the assets. The assets fair value is recognized according to
the sales agreement price in the fair transaction; if there is no sales agreement but there is assets active market,
the fair value is recognized according to the buyer's price of the asset; if there is no sales agreement or active
market, the fair value is estimated on the basis of the best information available. The disposal costs include legal
expenses, related expenses of taxation and carriage expenses related to assets disposal as well as the direct
expenses incurred for the assets to reach the marketable conditions. The current value of the future cash flow of an
asset is determined by the discounted cash with an appropriate discount rate, on the basis of the e xpected future
cash flow generated during the continuous use or final disposal of an asset. The provision for impairment of assets
is calculated and recognized on the basis of single asset. The Company recognizes the recoverable amount of the
asset group based on the asset group to which the asset belongs if the recoverable amount of the single asset is
difficult to estimate. An asset group is the smallest group of assets that can generate cash inflows independently.
The book value of the goodwill separately presented in the financial statements is amortized to the asset group or
asset group combination expected to benefit from the synergies of the business combination during the impairment
test. If the test results show that the recoverable amount of the asset group or asset group combination containing
the amortized goodwill is lower than its book value, the corresponding impairment loss shall be recognized. The
amount of impairment loss shall first offset the book value of goodwill amortized to the asset g roup or asset group
combination, and then offset the book value of other assets proportionally according to the proportion of the book
value of assets other than goodwill in the asset group or asset group combination.
The impairment loss of above assets will not be transferred back to the part whose value is recovered in the
subsequent period once recognized.
22. Long-term unamortized expenses
Long-term unamortized expenses refer to the e xpenses that have occurred but shall be burdened in the reporting
period and later periods with the apportionment period more than one year. The Company's long -term unamortized
expenses mainly include advertising endorsement fees, decoration costs and so on. Long -term unamortized
expenses are amortized by the straight-line method in the expected benefit period.
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23. Employee compensation
(1) Short-term compensation accounting method
The Company’s employee compensation mainly includes short-term compensation, post-employment benefits,
dismission welfare and other long-term employee services and benefits. Where:
Short-term compensation mainly including salary, bonus, allowances and subsidies, employee services and
benefits, medical insurance premiums, birth insurance premium, industrial injury insurance premium, housing fund,
labor union expenditure and personnel education fund, non-monetary benefits, etc. The short-term compensation
actually happened during the accounting period when the active staff offering the service for the Company shall be
recognized as liabilities and is included in the current gains and losses or relevant assets cost. The non-monetary
benefits are measured as per the fair value.
(2) Post-employment benefits accounting method
Post-employment benefits mainly include basic endowment insurance and unemployment insurance. The
post-employment benefit plans include defined contribution plan. If a defined contribution plan is adopted, the
corresponding amount payable shall be recorded into the cost of relevant assets or current profit and loss when
occurred.
(3) Termination benefits accounting method
The Company puts forward compensation for an employee to terminate the labor relationship with the employee
before expiry of the employee labor contract or to encourage the employee to accept the reduction voluntarily.
When failing to unilaterally withdraw the dismission welfare due to termination of labor relation plan or downsizing
suggestions, or when recognizing the costs related to restructuring involving payment of dimission welfare
(whichever comes first), the Company recognizes the employee compensation liabilities from the dismission
welfare and includes in current profit and loss. Where the dismission welfare is not expected to be fully paid within
12 months after the end of the annual reporting period, the relevant provisions on o ther long-term employee
benefits shall apply.
(4) Other long-term employee benefits accounting method
The internal retirement plan of employees is treated according to the same principle with above dismissal welfare.
The wages to be paid to the internal retirees and the social insurance premium to be paid in the period from the
date when the retirees stop providing services to the normal retirement date are charged to the current profit and
loss (dismissal welfare) when meeting the recognition conditions of estimated liabilities. The other long-term
employee benefits that the company offers to the staffs, if meeting with the setting drawing plan, are accounted
according to the setting drawing plan, while the rest are disposed of according to the setting revenue plan.
24. Estimated liabilities
The estimated liabilities are recognized when the obligation related to contingencies meets the following conditions
simultaneously: (1) The obligation is the current obligation undertaken by the Company; (2) Performance of the
obligation is likely to lead to the outflow of economic benefits; (3) The amount of the obligation can be reliably
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measured.
On the balance sheet date, the Company shall take into full consideration of the risks, uncertainty, time value of
money, and other factors pertinent to the contingencies to measure the estimated liabilities in accordance with the
best estimate of the necessary expenses for the performance of the current obligation.
When all or some of the e xpenses necessary for the liquidation of an estimated liabilities is expected to be
compensated by a third party, the compensation shall be separately recognized as an asset only when it is virtually
certain that the reimbursement will be obtained. Besides, the amount recognized for the reimbursemen t shall not
exceed the book value of the estimated liabilities.
25. Share-based payment
(1) share-based payment accounting method
The term share-based payment refers to a transaction in which the company grants equity instruments or
undertakes equity-instrument-based liabilities in return for services from employee or other parties. The
share-based payments shall consist of equity-settled share-based payments and cash-settled share-based
payments.
① Equity-settled share-based payments
The equity-settled share-based payment in return for employee services is measured at the fair value of the equity
instruments granted to the employees. The amount of such fair value, under the situation that the rights can only
be exercised after the service is finished and the set performance is achieved within the waiting period, and basing
on the optimum estimation for the number of equity instrument which exercise rights within the waiting period, will
be measured according to straight-line method and counted into relevant costs and expenses. When the rights can
be exercised immediately after being granted, the payment will be counted into relevant costs and expenses, and
the capital reserve will be increased correspondingly.
On each and every balance sheet date within the waiting period, the Company will make optimum estimations
according to the newly-obtained subsequent information after the changes occurred in the number of employees
who exercise rights so as to modify the predicted number of the equity instrument of exercising righ ts. The
influence from above-mentioned estimations will be counted into relevant costs and expenses at the current period,
and the corresponding adjustment will be made for the capital reserve.
If the fair value of the other parties’ service can be reliably measured, the share-based payment settled by equities
which is used for exchanging the service of other parties will be measured according to that fair value on date of
acquisition. If not, but the fair value of the equity instrument can be reliably meas ured, the payment will be counted
according to the fair value of the equity instrument on date of service acquisition, and it will be counted into relevant
costs and expenses, and the equity of the shareholders will be increased correspondingly.
② Share-based payment settled by cash
The share-based payment settled by cash will be measured according to the fair value of the liability confirmed
basing on the shares borne by the company and other equity instruments. If the rights can be exercised
immediately after being granted, the payment will be counted into relevant costs or expenses and the liability will
be increased correspondingly. If the rights can only be exercised after the situation that service within the waiting
period is completed and set performance is achieved, the service obtained at the current period, according to the
fair value amount of the liability borne by the company, and basing on the optimum estimation for the condition of
exercising rights, will be counted into costs or expenses on each and every balance sheet date during the waiting
period, and the liability will be increased correspondingly.
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Each and every balance sheet date and settlement before relevant liability settlement, the fair value of liability will
be remeasured, of which changes occurred will be counted into the current period.
(2) Relevant accounting treatment of modification and termination for share -based payment plan
When the Company modifies the share payment plan, if the fair value of the equity instrument granted is incr eased
after the modification, the increase in the service obtained will be correspondingly confirmed according to the
increase in the fair value of equity instrument. The increase in the fair value of equity instrument means the
balance between the equity instrument before modification and the equity instrument after modification on
modification date. If decrease occurred in the total fair value of the equity instrument after the modification or
methods which are unbeneficial to employees are adopted in the modification, accounting treatment will still
continue to be made for the service obtained, and such changes will be regarded as changes that have never
occurred unless the company has canceled partial or all granted equity instruments.
During the waiting period, if the granted equity instrument is canceled, the company will treat the canceled equity
instrument as the accelerated exercise of power, and immediately include the balance that shall be recognized in
the remaining waiting period into the current profit and loss, and simultaneously confirm the capital reserve. If the
employee or other party can choose to satisfy the non-exercisable condition but not satisfied in the waiting period,
then the company will treat it as cancellation of the granted equi ty instrument.
(3) Accounting treatment involving the share payment transaction between the company and the shareholders or the
actual controller of the company
Where involves the share payment transaction between the company and the shareholders or the actual controller
of the company and one of the parties of the settlement company and the service -accepting company is within the
company and the other is not within the company, then the company performs the accounting treatment in the
consolidated financial statements of the company according to the following provisions:
① If the settlement company settles in its own equity instrument, then it treats the equity payment transaction as the
equity-settled equity payment; otherwise, it treats as the cash-settled equity payment.
If the settlement company is an investor to the service-accepting company, it shall be recognized as a long-term
equity investment in the service-accepting company in accordance with the fair value of the equity instrument or
the fair value of the liability it is assumed to bear on the grant date, and the capital reserve (other capital reserve) or
liabilities shall be recognized at the same time.
② If the service-accepting company has no settlement obligation or confers its own equity tools on the employees of
the company, then such equity payment transaction shall be treated as equity-settled equity payment; if the
service-accepting company has the settlement obligation and confers the employees of the company with not its
own equity instrument, then such equity payment transaction shall be treated as cash-settled equity payment;
In the case of the equity payment transaction occurs between the companies within the company, and the
service-accepting company and the settlement company are not the sam e company, then the confirmation and
measurement of the equity payment transaction shall be carried out respectively in the financial report of the
service-accepting company and the settlement company, with the same analogy of the above -said principle.
26. Preferred shares, perpetual bonds and other financial instruments
(1) Distinction between perpetual bonds and preferred shares
The financial instrument such as perpetual bonds and preferred shares issued by the Company, which meets the
following conditions, shall be regarded as an equity instrument:
① The financial instrument does not include contractual obligations to deliver cash or other financial assets to other
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parties or to exchange financial assets or financial liabilities with other parties under potentially adverse conditions;
② If the financial instrument that shall or may be settled with the enterprise's own equity instrument in the future is a
non-derivative instrument, it does not include the contractual obligations to deliver a variable number of its own
equity instruments for settlement; if it is a derivative instrument, it can only be settled by a fi xed amount of cash or
other financial assets in exchange for a fixed number of the Company’s own equity instruments.
Except for financial instruments that can be classified as equity instruments according to the above conditions,
other financial instruments issued by the Company shall be classified as financial liabilities.
A financial instrument issued by the Company is recognized as a liability according to the fair value of the liability
component if it is a compound instrument, and the amount of the balance between the amount received actually
and the fair value of the liability component is recognized as “other equity instruments”. Transaction costs incurred
in issuing compound instruments shall be apportioned between the liability component and the equity component
in proportion to the total issuance price respectively.
(2) Accounting treatment method of perpetual bonds and preferred shares
The interest, dividends, gains or losses related to perpetual bonds and preferred shares classified as financial
liabilities, as well as gains or losses from redemption or refinancing, shall be recorded into current profit and loss
except for the borrowing costs eligible for capitalization (see “Borrowing costs” in the note).
The issuance (including refinancing), repurchase, sales or cancellation of financial instrument such as perpetual
bonds and preferred shares classified as equity instruments is handled as the equity chan ges, and relevant
transaction costs are deducted from the equity. The distribution of equity instrument holders by the Company shall
be treated as profit distribution.
The Company does not recognize the fair value change of the equity instruments.
27. Income
Does the Company need to follow the disclosure requirements of special industries
No
Accounting policies for income recognition and measurement
(1) Income from selling commodities
The income from sale of goods can be recognized only meeting the following conditions: the Company has
transferred the main risks and rewards on the property in the goods to the buyer; the Company neither retains the
right to continue to manage related to the property, nor effecti vely controls goods that have been sold; the income
amount can be measured reliably; related economic benefits are likely to flow to the Company; the costs related,
incurred or to be incurred can be measured reliably.
Agency mode: according to the commission sales contract signed by the company and the regional agency, the
company shall recognize the income after receiving the consignment sale list or sales list summary sheet from the
agency;
E-commerce: after the customer places an order, the company will deliver the goods and receive the payment. The
company recognizes the income according to the time when the order is completed. The platform shall be
responsible for delivery and collection of payment, and the company shall settle and recognize the income
according to the sales list provided by the platform;
TV shopping: TV shopping platform informs the company of delivery according to the customer order, and the
company recognizes the income according to the sales list provided by TV shopping platform;
Project type: deliver goods according to the customer order, the company recognizes the income according to the
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
receipt form after the customer receives goods;
Distribution mode: deliver goods according to the customer order, the company recognizes the income according
to the receipt form after the customer receives goods;
Export re venue from customs declaration: the revenue is recognized according to the e xport date on the customs
declaration.
(2) Income from offering labor
The Company recognizes the income from offering labor at the balance sheet date with the percen tage of
completion method when the results of the labor transactions can be estimated reliably. The completion schedule
of the labor transaction is recognized according to the proportion of the costs incurred in the total estimated costs.
The results of the labor transactions can be estimated reliably when ① the income amount can be measured
reliably; ② related economic benefits are likely to flow to the Company; ③ the completion schedule of the labor
transactions can be recognized reliably; and ④ the costs incurred or to be incurred in the transactions can be
measured reliably.
If the results of the labor transactions cannot be estimated reliably, the income from offering labor is recognized
according to the labor cost amount incurred and expected to be com pensated, and the labor cost incurred is
considered as current expenses. If the labor cost incurred is expected not to be compensated, the income is not
recognized.
If the part of selling commodities and the part of offering labor can be distinguished and independently measured
when the contract or agreement signed by the Company with other enterprises includes selling commodities and
offering labor, the two parts shall be disposed of respectively; if they cannot be distinguished, or if they can be
distinguished but cannot be independently measured, the contract shall be fully treated as the part of selling
commodities.
(3) Interest revenue
The interest income amount is recognized according to the time when others use the Company’s monetary capital
and the effective interest rate.
Differences in income recognition accounting policies caused by different business modes for the same business
28. Government subsidies
The government subsidies refer to the monetary assets and non -monetary assets obtained by the Company from
the government free of charge, excluding the capital invested by the government as an investor with the
corresponding owner's equity, and are classified into asset related government subsidies and the income related
government subsidies. The government subsidies acquired by the Company for acquisition or construction or for
formation of long-term assets in other ways are defined as asset related government subsidies; the other
government subsidies are defined as income related government subsidies. The g overnment subsidies without
subsidy objects specified in government documents are classified into income related government subsidies and
asset related government subsidies in the following ways: (1) If the government documents specify the specific
project targeted by subsidies, the division shall be made according to the relative proportion of the amount of
expenditure forming assets and the amount of expenditure recorded into expenses in the budget of the specific
project. The division proportion shall be reviewed on each balance sheet date and changed if necessary; (2) If the
purpose is only described in general terms and the specific project is not specified in the government documents,
the subsidies shall be regarded as income related government subsidies. The government subsidies as the
monetary assets are measured according to the amount received or receivable. The government subsidies not as
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
the monetary assets are measured according to the fair value and measured according to the nominal amount if
the fair value cannot be obtained reliably. The government subsidies measured by nominal amount are directly
included in current profits and losses.
The Company shall recognize and measure the government subsidies according to the amount actually received
when actually received. However, if there is evidence at the end of period that the Company can meet relevant
conditions stipulated in the financial support policy and can be e xpected to receive the financial support fund, the
government subsidies are measured according to receivables. Go vernment subsidies measured according to
receivables shall also meet the following conditions: (1) The amount of the subsidies receivable has been
confirmed by the competent government departments, or can be reasonably calcul ated according to the relevant
provisions of the officially issued financial fund management measures, and it is expected that there is no material
uncertainty about the amount; (2) The government subsidies are based on the financial support projects and
financial fund management measures officially issued by local financial departments and made public voluntarily in
accordance with the Regulations on Government Information Disclosure and the management measures should
be universal (any enterprise meeting the specified conditions can apply for the subsidies), rather than specific to
specific enterprises; (3) In the approval document of the relevant subsidies, the time limit for the appropriation of
the subsidies has been clearly promised, and the appropriati on of the subsidies is guaranteed by the
corresponding financial budget, so it can be reasonably guaranteed that the subsidies can be received within the
specified time limit; and (4) Other relevant conditions (if any) that shall be met according to the sp ecific situation of
the Company and the subsidies.
Where the government subsidies pertinent to assets are recognized as deferred income, they are included by
installments in the current profit and loss in a reasonable and systematic manner within the usefu l lives of the
relevant assets. The income related government subsidies, if used to compensate for related costs or losses in
subsequent periods, are recognized as the deferred income and charged to the current profit and loss when
related costs or losses are recognized, and, if used to compensate for related costs or losses incurred, are directly
charged to the current profit and loss.
Government subsidies including asset related part and income related part are subject to accounting treatment
respectively b y distinguishing different parts; if it is difficult to distinguish, the government subsidies shall be
classified as the income related government subsidies as a whole.
The government subsidies pertinent to the daily acti vities of the Company shall be in cluded in other income or
used to offset relevant costs and expenses according to the substance of the economic business. The government
subsidies irrelevant with the daily acti vities of the Company shall be included in non -operating revenues and
expenditures.
The recognized government subsidies needing to be returned are disposed of accordingly: for those with related
deferred income, the book balance of related deferred income is written down and the excess is accounted into the
current profits and losses ; in the other cases, they are directly accounted into the current profits and losses.
29. Deferred income tax assets and deferred income tax liabilities
(1) Current income tax
The current income tax liability (or asset) formed in the current and previous periods is measured according to the
expected payable (or returnable) income tax amount calculated as per the tax law on the balance sheet date. The
taxable income for calculation of the current income tax expense is calculated after corresponding adjustment to
the pre-tax accounting profit in the current year according to relevant tax law.
(2) Deferred income tax assets and deferred income tax liabilities
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For the temporary differences generated from the balance between the book value and tax base of some assets
and liabilities as well as the balance between the book value and tax base of the items not recognized as assets
and liabilities but with the tax base determinable according to tax law, the deferred income tax assets and liabilities
are recognized by the balance sheet liability method.
For the taxable temporary differences related to the initial recognition of reputation and related to the initial
recognition of the assets or liabilities incurred in the transaction that is not business merger and will not affect the
accounting profits and income tax payable (or deductible loss) upon occurrence, relevant deferred income tax
liabilities are not recognized. Moreo ver, for the ta xable temporary difference related to the investment of the
subsidiaries, associated enterprises and joint ventures, relevant deferred income tax liabilities are not recognized if
the Company can control the temporary difference write-back time and the temporary difference will probably not
be written back in the foreseeable future. Except for the above e xceptions, the Company recognizes the deferred
income tax liabilities from all other taxable temporary differences.
For the deductible temporary differences related to the initial recognition of the assets or liabilities incurred in the
transaction that is not business merger and will not affect the accounting profits and income tax payable (or
deductible loss) upon occurrence, relevant deferred income tax assets are not recognized. Moreover, for the
deductible temporary difference related to the investment of the subsidiaries, associated enterprises and joint
ventures, relevant deferred income tax assets are not recognized if it is not likely to write back the temporary
difference in the foreseeable future or to obtain the income tax payable used to offset the deductible temporary
difference in the future. Except for the above e xceptions, the Company recognizes the deferred income tax assets
by deductible temporary differences within the limit of the income tax payable that may be obtained in the f uture
and used to offset the deductible temporary differences.
For the deductible loss and tax deduction that can be carried forward to the subsequent year, the corresponding
deferred income tax assets are recognized within the limit of the future ta xable income amount that is possibly
obtained to deduct the deductible loss and tax deduction.
The deferred income tax assets and deferred income tax liabilities are measured on the balance sheet date
according to the tax law and the applicable tax rate in the p eriod of expected recovery of relevant assets of
liquidation of relevant liabilities.
The book value of the deferred income tax assets is reviewed on the balance sheet date. If it is likely not to obtain
sufficient income tax payable to deduct the interests of the deferred income tax assets in the future, the book value
of the deferred income tax assets is written down. If it is likely to obtain sufficient income tax payable, the amount
written down is written back.
(3) Income tax e xpenses
The income tax expens es include current income tax and deferred income tax.
Except for that the current income tax and deferred income tax related to the transactions and matters recognized
as other comprehensive income or directly included in the owner’s equipment are included in other comprehensive
income or the stockholder's equity and that the deferred income tax generated from the business combination
adjusts the book value of the goodwill, the other current income tax and deferred income tax e xpenses or benefits
are charged to current income and loss.
(4) Income tax offset
When the Company has the legal right to settle with net amount and intends to settle with net amount or obtain the
assets and liquidate the liabilities simultaneously, the income tax assets and income tax li abilities of the Company
in the current period are presented by the net amount after offset.
When the Company has the legal right to settle the income tax assets and income tax liabilities of the Company in
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
the current period with net amount and the deferred income tax assets and deferred income tax liabilities are
related to the income tax le vied by the same tax collection and management department from the same subject of
tax pa yment or from different subjects of ta x payment but the subject of tax payment involved intends to settle the
current income tax assets and liabilities with the net amount or obtain the assets and liquidate the liabilities
simultaneously in each future important period when the deferred income tax assets and liabilities are written back,
the Company's deferred income tax assets and deferred income tax liabilities are presented by the net amount
after offset.
30. Leased
(1) Accounting treatment method of operating lease
(2) Accounting treatment method of finance lease
Finance lease is the lease substantially transferring all risks and remuneration related to the asset ownership and
its ownership may be transferred or not finally. The lease other than the finance lease is operating lease.
(1) Operating lease recorded by the Company as the lessee
The rental expense of operating lease is charged to relevant asset cost or current profit and loss by the
straight-line method in each period of the lease term. The initial direct costs are charged to the current profit
and loss. The contingent rental is charged to the current profit and loss in actual occurrence.
(2) Operating lease recorded by the Company as the lessor
The rental income of operating lease is recognized as current profit and loss by the straight-line method in
each period of the lease term. The initial direct costs of large amount are capitalized in occurrence and
charged to the current profit and loss according to the same basic installment with the rental income
recognition in the whole lease term; the other initial direct costs of small amount are charged to the current
profit and loss in occurrence. The contingent rental is charged to the current profit and loss in actual
occurrence.
(3) Finance lease recorded by the Company as the lessee
Upon commencement of the lease term, the lower of the fair valu e of the leased asset on the lease
commencement date and the present value of the minimum lease payment is deemed as the entry value of
the leased asset and the minimum lease payment is deemed as the entry value of the long -term payables,
and their balance is deemed as the unrecognized finance fees. Moreover, the initial direct costs attributable to
the lease project in the lease negotiation and lease contract signing process is also charged to the value of
the leased asset. The balance of the minimum lease payment deducting the unrecognized finance fees is
listed as the long-term liabilities and the long-term liabilities due within a year respectively.
The unrecognized finance fees of the current period are recognized by the effective interest method in the
lease term. The contingent rental is charged to the current profit and loss in actual occurrence.
(4) Finance lease recorded by the Company as the lessor
Upon commencement of the lease term, the sum of the minimum lease collection on the lease
commencement date and the initial direct costs is deemed as the entry value of the lease financing
receivables and the non-guarantee remaining sum is recorded; the balance of the sum of minimum lease
collection, initial direct costs as well as the non-guarantee remaining sum and the sum of their present value
is recognized as the unrealized financing income. The balance of the lease financing receivables after
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
deducting the unrealized financing income is listed as the long -term claims and the long-term claims due
within a year respectively.
The unrealized financing income of the current period are recognized by the effective interest method in the
lease term The contingent rental is charged to the current profit and loss in actual occurrence.
31. Other significant accounting policy and accounting estimate
(1) Termination of operation
Termination of operation refers to a separate component of the Company that meets one of the following conditions
and has been disposed of or classified as available-for-sale: ① This component represents an independent major
business or a separate major area of business; ② This component is part of an associated plan to dispose of an
independent major business or a separate major area of business; ③ This component is a subsidiary acquired
specifically for resale.
See Note IV. 12 “Assets held for sales and disposal group” for the accounting treatment method for termination of
operation.
(2) Repurchase of shares
The gains or losses are not recognized when the consideration and transaction costs paid in the sh are repurchase
are used to reduce the stockholder’s equity in the repurchase, transfer or cancellation of the Company’s shares.
The transferred treasury stock is recorded into the capital reserve according to the difference between the amount
received actually and the carrying amount of the capital reserve; if the capital reserve is not sufficient to absorb the
difference, the surplus reserve and undistributed profit are offset. The treasury stock is canceled according to the
face value of the stock and the number of stocks canceled, and the capital reserve shall be offset according to the
difference between the book balance and face value of the stock canceled. If the capital reserve is insufficient, the
surplus reserve and undistributed profit shall be offset.
32. Significant accounting policy and accounting estimate change
(1) Changes in significant accounting policies
√ Applicable □ Not applicable
① Changes in accounting policies resulting from the implementation of new financial instrument standards
The Ministry of Finance issued the Accounting Standards for Business Enterprises No.22 - Recognition and
Measurement of Financial Instruments (2017 Revision) (CK [2017] No.7), Accounting Standards for Business
Enterprises No.23 - Transfer of Financial Assets (2017 Revision) (CK [2017] No.8), Accounting Standards for
Business Enterprises No.24 - Hedging (2017 Revision) (CK [2017] No.9) on March 31, 2017 and issued the
Accounting Standards for Business Enterprises No.37 - Presentation of Financial Instruments (2017 Revision) (CK
[2017] No.14) on Ma y 2, 2017 (the above standards are collectively referred to as the “new financial instrument
standards”), requiring the domestic listed enterprises to implement the new financial instrument standards from
January 1, 2019.
After adoption of resolution of the Company’s 11 th meeting of the 4 th Board of Directors on August 26, 2019, the
Company implements the above new financial instrument standards from January 1, 2019.
All recognized financial assets under the new financial instrum ent standards are subsequently measured at
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
amortized cost or fair value. On the implementation date of the new financial instrument standards, the Company
evaluates the business model of managing financial assets based on the facts and circumstances on the date,
evaluates the contractual cash flow characteristics of financial assets according to the facts and circumstances on
initial recognition of the financial assets and classifies the financial assets into financial assets measured at the
amortized cost, financial assets measured at fair value of which changes are recorded into other comprehensive
income and FVTPL. Where, when the financial assets measured at fair value of which changes are recorded into
other comprehensive income are derecognized, the accumulated gains or losses previously recorded in other
comprehensive income will be transferred from other comprehensive income to retained earnings, not included in
current profit and loss.
Under the new financial instrument standards, the Company withdra ws the provision for impairment for the
financial assets measured at the amortized cost, debt instrument investments measured at fair value of which
changes are recorded into other comprehensive income, lease receivables, contract assets and financial
guarantee contracts based on the expected credit loss, and recognizes the credit impairment loss.
The Company retroactively applies the new financial instrument standards and does not restate if the early
comparison of the financial statement data involved in the classification and measurement (including impairment)
is inconsistent with the new financial instrument standards. Therefore, for the cumulative impact of the first
implementation of the standards, the Company adjusts the retained earnings or other com prehensive earnings at
the beginning of 2019 and the amount of other relevant items in the financial statements. The financial statements
of 2018 are not restated.
The major changes and influences of the implementation of the new financial instrument stand ards on the
Company are as follows:
—— The Company designates some non-transactional equity investments to be held on and after January 1, 2019
as the financial assets measured at fair value of which changes are recorded into other comprehensive income,
and presented as other equity instrument investments.
On the first implementation date, the book value of the original financial assets is adjusted to a reconciliation
statement of the book value of the new financial assets classified and measured in accordance with the new
financial instrument standards.
Impact on consolidated financial statements
Item December 31, 2018 Reclassification Remeasurement January 1, 2019 (after
(before change) change)
Ava ila ble-f or-s ale fina ncial a sset s (original 119,948,534.00
standards)
Less: those transferred to other equity instrument 119,948,534.00
investments
Ot he r equit y inst rume nt inv est me nts ——
Plus: those transferred from available-for-sale 119,948,534.00
financial assets (original standards)
Amount presented according to new financial 119,948,534.00
instrument standards
Impact on the Company’s financial statements
Item December 31, 2018 Reclassification Remeasurement January 1, 2019 (after
(before change) change)
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Ava ila ble-f or-s ale financial ass ets ( origina l 119,948,534.00
standards)
Less: those transferred to other equity instrument 119,948,534.00
investments
Ot he r equit y inst rume nt inv est me nts ——
Plus: those transferred from available-f or-sale 119,948,534.00
financial assets (original standards)
Amount presented according to new financial 119,948,534.00
instrument standards
(2) Significant accounting estimate change
□ Applicable √ Not applicable
(3) Adjustment of relevant items in financial statements at the beginning of the first
implementation year as a result of first implementation of new financial instrument
standards, new income standards and new release standards
See Note 32: Significant accounting policy and accounting estimate change/(1) Changes in significant accounting
policies
(4) Retrospective adjustment of early comparative data description as a result of first
implementation of new financial instrument standards and new release standards
□ Applicable √ Not applicable
33. Other
Due to the inherent uncertainty of operating activities during the use of the accounting policies, the Company
needs to judge, estimate and assume the book value of statement items that cannot be accurately measured.
These judgments, estimates and assumptions are based on the past experience of the Comp any's management
and other relevant factors and will affect the reported amounts of income, expenses, assets and liabilities and the
disclosure of contingent liabilities on the balance sheet date. However, the actual results caused by the uncertainty
of these estimates may be different from the current estimates of the Company's management, resulting in a
significant adjustment of the carrying amount of the assets or liabilities to be affected in the future.
The Company shall periodically review the aforementioned judgments, estimates and assumptions on the basis of
going concern. If the accounting estimate change only affects the change period, the influence number shall be
recognized in the change period; if it affects both the current and future periods o f the change, the influence
number shall be recognized in the current and future periods of the change.
On the balance sheet date, the Company needs to judge, estimate and assume the amount of items in the financial
statements in the following important areas:
(1) Provision for bad debt
The allowance method is used for the accounting of the bad debt loss according to the accounting policies of the
receivables. The impairment of receivables is based on assessing the collectability of receivables. The
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
management shall judge and estimate the appraisal of impairment of receivables. The difference between the
actual result and the original estimate will affect the book value of the receivables and the accrual or write -back of
provision for bad debt of receivables during the period when the estimate is changed.
(2) Depreciation reserves for inventories
According to the inventory accounting policies, the Company measures the inventories according to the cost of
inventories or net realizable value, whichever is lower, and wi thdraws the inventory falling price reserves for the
obsolete and unmarketable inventories and the inventories with the cost higher than the net realizable value. The
impairment of inventory to net realizable value is based on the evaluation of inventory m arketability and net
realizable value. For appraisal of the inventory impairment, the management is required to make judgments and
estimates based on conclusive evidence and taking into account such factors as the purpose of holding inventory
and the impact of post-balance sheet events. The difference between the actual result and the original estimate will
affect the book value of the inventory and the accrual or write -back of inventory falling price reserves during the
period when the estimate is changed.
(3) Financial assets impairment
The Company evaluates the impairment of financial instruments by using the expected credit loss model, which
requires major judgment and estimates and requires considering all reasonable and substantiated information,
including forward-looking information. In making such judgments and estimates, the Company deduces the
expected changes of the debtor's credit risks based on historical data combined with economic policies,
macroeconomic indicators, industrial risks, external market environment, technical environment, changes in
customer conditions and other factors.
(4) Fair value of financial instruments
The fair value of the financial instruments that do not have active trading markets is determined by the Company
through various valuation methods, including discount cash flow model analysis. During the valuation, the
Company needs to estimate future cash flow, credit risk, market volatility and correlation, and select an appropriate
discount rate. These relevant assumptions are uncertain, and their changes will have an impact on the fair value of
financial instruments. Where an equity instrument investment or contract is quoted publicly, the Company shall not
take the cost as the best estimate of its fair value.
(5) Provision for impairment of long-term assets
On the balance sheet date, the Company judges whether there is any sign of possible impairment of non -current
assets other than financial assets. The intangible assets with uncertain service life, in addition to the annual
impairment test, shall also be subject to the impairment test when there are signs of impairment. A non -current
asset other than financial assets shall be subject to the impairment test when there is an indication that its book
amount is not recoverable.
An impairment occurs when the book value of an asset or asset group is higher than the recoverable amount, i.e.
the higher of the net amount of the fair value subtracted by the disposal costs and the present value of the
expected future cash flow.
The net amount of the fair value subtracted by the disposal costs is recognized by reference to the sales
agreement price or observable market price of a similar asset in a fair transaction subtracted by the incremental
cost directly attributable to the disposal of the asset.
When estimating the present value of future cash flows, the Company shall make important judgments about the
output, selling price, related operating costs of the asset (or asset group) and discount rate used in calculating the
present value. In estimating recoverable amounts, the Company will use all relevant information available,
including projections of the output, selling price and related operating costs based on reasonable and supportable
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
assumptions.
The Company shall test goodwill impairment at least annually. This requires an estimate of the present value of the
future cash flows of the asset group or asset group combination that has been allocated goodwill. When estimating
the present value of future cash flows, the Company needs to estimate the cash flow generated by future asset
group or asset group combination, and select the appropriate discount rate to determine the present value of future
cash flows.
(6) Depreciation and amortization
The Company withdraws depreciation and amortization of the in vestment properties, fixed assets and intangible
assets by straight-line method within their service life after considering the residual value. The Company
periodically re views the service life to determine the amount of depreciation and amortization charg es to be
included in each reporting period. The service life is determined by the Company based on the previous
experience of similar assets and the expected technical update. Depreciation and amortization costs will be
adjusted for future periods in the event of significant changes in previous estimates.
(7) Deferred income tax assets
The Company recognizes deferred income tax assets according to all unutilized tax losses to the extent that the
Company is likely to have sufficient taxable profits to offset losses. Therefore, the Company’s management is
required to estimate the time of amount of future ta xable profits based on a lot of judgments and combine the tax
planning strategies to determine the amount of deferred income tax assets to be recognized.
(8) Income tax
In the normal business activities of the Company, there are certain uncertainties in the final tax treatment and
calculation of some transactions. Whether some items can be presented before tax needs the approval of tax
authorities. The difference between the final determination result of these tax matters and the original estimated
amount, if any, will affect the current income tax and deferred income tax during the final determination period.
VI. Tax
1. Main tax categories and tax rates
Tax category Taxation basis Tax rate
The output tax on taxable income shall be calculated
at the rate of 13%, and the VAT shall be calculated on
Added value tax 13%
the difference after deducting the input tax allowed to
be deducted in the current period.
Urban maintenance and construction tax 7% of the turnover tax actually paid 7%
Corporate income tax 25% of the income tax payable. 25%
Education surcharge 3% of the turnover tax actually paid 3%
Surcharge for local education 1%-2% of the turnover tax actually paid 1%-2%
2
Taxable land area actually occupied (m ) *5~10
Land use tax 5-10 yuan/m2
yuan/m2
For taxation according to price, original value of
Housing property tax taxable property * (1-30%) *1.2%, for taxation 0.84%, 12%
according to rent, rental income *12%.
2. Tax preference
On November 13, 2017, the Science Technology Department of Zhejiang Province, Zhejiang Provincial
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Department of Finance, Zhejiang Provincial Tax Service of State Taxation Administration and Zhejiang Local
Taxation Bureau jointly issued a high-tech enterprise certificate (No. GR201,733,000,884) and the Company
passed the high-tech enterprise identification for 3 years. According to relevant regulations, after passing the
high-tech enterprise identification, the Company can enjoy the relevant preferential policies of the state on
high-tech enterprises for three consecutive years (i.e., the income tax preference period is from January 1, 2017 to
December 31, 2019), and the enterprise income tax shall be levied at the rate of 15%;
On October 3, 2018, the General Office of the People's Government of Zhejiang Province issued a document
(ZZBF [2018] No. 99), stipulating that class A enterprises were fully exempted from the urban land use tax from
January 1, 2018 to December 31, 2019. Robam is a class A e nterprise and enjoys the preferential policy of full
exemption from the urban land use tax.
3. Other
VII. Notes to items in consolidated financial statements
1. Monetary capital
Unit: yuan
Item Ending balance Beginning balance
Cash on hand 459,629.14 380,338.61
Bank deposit 2,559,178,772.32 2,176,839,520.24
Other monetary capital 19,088,012.03 19,486,949.50
Total 2,578,726,413.49 2,196,706,808.35
Other description
Note: Other monetary capital is guarantee deposit.
2. Notes receivable
(1) Classified presentation of notes receivable
Unit: yuan
Item Ending balance Beginning balance
Bank acceptance bill 895,269,110.24 994,646,272.00
Trade acceptance 577,509,074. 11 273,500,024.01
Total 1,472,778,184.35 1,268,146,296.01
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
(2) Trade acceptance with provision for bad debt prov ision withdrawn by employing aging
analysis
Unit: yuan
Ending balance
Name
Book balance Provision for bad debt Accruing proportion
Within 6 months (including 6 68,744,956.88 687,449.57 1.00%
months)
More than 6 months: 519,848,537.55 10,396,970.75 2.00%
Total 588,593,494.43 11,084,420.32 --
(3) Notes receivable endorsed or discounted by the company at the end of the period and not
expired yet on the balance sheet date
Unit: yuan
Amount with recognition terminated at the end Amount with recognition not terminated at the
Item of the period end of the period
Bank acceptance bill 20,302,368.02
Total 20,302,368.02
3. Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: yuan
Ending balance Beginning balance
Book balance Provi sion for bad debt Book balance Provi sion for bad debt
Category
Accruing Book value Accruing Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts
recei vable of
1,311,713.82 0.25% 1,311,713.82 100.00% 3,091,619.79 0.65% 3,091,619.79 100.00%
provi sion for bad
debt by single item
Where:
Accounts
recei vable of
provi sion for bad 522,380,833.82 99.75% 31,428,750.11 6.02% 490,952,083.71 474,397,041.21 99.35% 27,623,905.74 5.82% 446,773,135.47
debt by
combi nation
Where:
Aging combination 522,380,833.82 99.75% 31,428,750.11 6.02% 490,952,083.71 474,397,041.21 99.35% 27,623,905.74 5.82% 446,773,135.47
Total 523,692,547.64 100.00% 32,740,463.93 6.25% 490,952,083.71 477,488,661.00 100.00% 30,715,525.53 6.43% 446,773,135.47
1). Provision for bad debt by combination:
Unit: yuan
Ending balance
Name
Book balance Provision for bad debt Accruing proportion
Within 1 year 484,560,347.99 24,228,017.40 5.00%
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
1~2 years 27,666,423.06 2,766,642.30 10.00%
2~3 years 5,875,823.81 1,175,164.76 20.00%
3~4 years 1,968,487.70 984,243.85 50.00%
4~5 years 175,347.31 140,277.85 80.00%
More than 5 years 2,134,403.95 2,134,403.95 100.00%
Total 522,380,833.82 31,428,750.11 --
2). Disclosure by aging
Unit: yuan
Aging Year-end balance
Within 1 year (including 1 year) 460,332,330.59
Within 1 year 460,332,330.59
1~2 years 24,899,780.76
2~3 years 4,700,659.05
More than 3 years 1,019,313.31
3~4 years 984,243.85
4~5 years 35,069.46
Total 490,952,083.71
(2) Provision, recovery or reversal of bad debt reserves in the current period
The amount of provision for bad debts was 2,024,938.40 yuan and the amount of provision for bad
debts recovered or reversed was 0.00 yuan in the current period.
(3) Accounts receivable with top 5 ending balances by debto r
The total amount of accounts receivable with top 5 ending balances by debtor in the current period
was 288,362,076.82 yuan, accounting for 55.06% of the total ending balance of accounts
receivable. The total amount of ending balance of bad debt provision withdrawn accordingly was
14,624,364.62 yuan.
4. Advances to suppliers
(1) Presentation of advances to suppliers by aging
Unit: yuan
Year-end balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 47,009,891.82 96.52% 58,293,082.84 97.99%
1~2 years 605,946.43 1.24% 127,306.00 0.22%
2~3 years 1,090,541.86 2.24% 1,065,541.86 1.79%
Total 48,706,380.11 -- 59,485,930.70 --
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
(2) Advances to suppliers with top 5 ending balances by prepayment object
The total amount of advances to suppliers with top 5 ending balances by prepayment object in the
current period was 37,779,893.38 yuan, accounting for 77.57% of the total number of ending
balance of advances to suppliers.
5. Other receivables
Unit: yuan
Item Ending balance Beginning balance
Other receivables 87,328,253.55 70,182,460.52
Total 87,328,253.55 70,182,460.52
1) Other receivables classified by nature
Unit: yuan
Nature of payment Ending book balance Beginning book balance
Deposit and margin 48,756,522.49 34,993,888.42
Collection by third party 29,739,414.77 30,291,539.08
Imprest 11,784,981.45 2,883,138.90
Withheld amount 4,517,505.69 2,554,065.31
Other 472,203.11 5,987,699.55
Total 95,270,627.51 76,710,331.26
2) Disclosure by aging
Unit: yuan
Aging Ending balance
Within 1 year (including 1 year) 67,648,487.49
Within 1 year 67,648,487.49
1~2 years 17,960,856.09
2~3 years 1,100,062.62
More than 3 years 618,847.35
3~4 years 501,964.98
4~5 years 116,882.37
Total 87,328,253.55
3) Provision, recovery or re versal of bad debt reserves in the current period
The amount of provision for bad debts was 1,414,503.22 yuan and the amount of provision for bad
debts recovered or reversed was 0.00 yuan in the current period.
4) Other accounts receivable with top 5 ending balances by debtor
Unit: yuan
Nature of Proportion in total other Ending balance of bad debt
Unit name Ending balance Aging
payment ending balance receivable provision
Alipay (China) Network Collection by
29,739,414.77 Within 1 year 31.22% 1,486,970.74
Technology Co., Ltd. third party
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Management Committee of
Hangzhou Yuhang Economic Margin and
14,778,000.00 1-2 years 15.51% 1,477,800.00
and Technical Development deposit
Zone
Financial management team
Margin and
of Shengzhou Sanjiang 13,416,000.00 Within 1 year 14.08% 670,800.00
deposit
Subdistrict Office
Hangzhou Maishang Margin and
3,000,000.00 Within 1 year 3.15% 150,000.00
Technology Co., Ltd. deposit
Liang Xiaoming Imprest 2,577,682.68 Within 1 year 2.71% 128,884.13
Total -- 63,511,097.45 -- 66.66% 3,914,454.87
6. Inventory
(1) Inventory classification
Unit: yuan
Ending balance Beginning balance
Item Falling price Falling price
Book balance Book value Book balance Book value
reserves reserves
Raw materials 112,131,726.22 112,131,726.22 58,785,060.73 58,785,060.73
Work in 47,550,168.76 47,550,168.76 42,489,335.72 42,489,335.72
process
Merchandise
233,814,327.88 233,814,327.88 289,182,037.49 289,182,037.49
inventory
Semi-finished
products
775,807,603.14 775,807,603.14 902,710,838.63 902,710,838.63
shipped in
transit
Low priced
and easily
46,904,146.47 46,904,146.47 53,945,458.46 53,945,458.46
worn articles
and wrappage
Total 1,216,207,972.47 1,216,207,972.47 1,347,112,731.03 1,347,112,731.03
7. Other current assets
Unit: yuan
Item Ending balance Beginning balance
Bank financial products 1,978,500,000.00 2,570,000,000.00
Prepaid tax 18,854,992.34
Pending deduct VAT on purchase 329,070.91 2,905,183.75
Total 1,978,829,070.91 2,591,760,176.09
8. Long-term equity investment
Unit: yuan
Increase or decrease in current period Balance of
Beginning Ending
Invested Investment Adjustment of Changes Declared Provi sion impairment
balance (book Further Capital balance
unit gains and other in other payment for Others provi sion
val ue) investment reduction (book val ue)
losses comprehensive equity of cash impairment at the end
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
recogni zed income dividends of period
by the equity or profits
method
I. Cooperati ve enterprise
De
Dietrich
Trade 2,617,851.16 69,197.95 2,687,049.11
(Shanghai )
Co., Ltd.
Subtotal 2,617,851.16 69,197.95 2,687,049.11
II. Joint venture
Total 2,617,851.16 69,197.95 2,687,049.11
9. Other equity instrument investments
Unit: yuan
Item Ending balance Beginning balance
Suzhou Industrial Park Ruican Investment
100,000,000.00 100,000,000.00
Enterprise (limited partnership)
Shanghai MXCHIP Information Technology Co.,
19,948,534.00 19,948,534.00
Ltd.
Total 119,948,534.00 119,948,534.00
10. Investment properties
(1) Investment properties using cost measurement mode
√ Applicable □ Not applicable
Unit: yuan
Item Houses and buildings Land use right Construction in progress Total
I. Original book value
1. Beginning balance 189,197.82 189,197.82
2. Amount increased in
current period
(1) Purchased
(2) Transfer from
inventory/fixed
assets/construction
in progress
(3) Increase by business
combination
3. Amount decreased in
current period
(1) Disposal
(2) Other transfer-out
4. Ending balance 189,197.82 189,197.82
II. Accumulated
depreciation and
amortization
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
1. Beginning balance 67,622.68 67,622.68
2. Amount increased in
4,493.40 4,493.40
current period
(1) Accrual or
4,493.40 4,493.40
amortization
3. Amount decreased in
current period
(1) Disposal
(2) Other transfer-out
4. Ending balance 72,116.08 72,116.08
III. Provision for
impairment
1. Beginning balance
2. Amount increased in
current period
(1) Provision
3. Amount decreased in
current period
(1) Disposal
(2) Other transfer-out
4. Ending balance
IV. Book value
1. Ending book value 117,081.74 117,081.74
2. Beginning book value 121,575.14 121,575.14
11. Fixed assets
Unit: yuan
Item Ending balance Beginning balance
Fixed assets 839,262,550.21 842,877,466.95
Total 839,262,550.21 842,877,466.95
(1) Fixed assets
Unit: yuan
Transportation
Item Houses and building Machinery equipment Other equipment Total
equipment
I. Original book
value
1. Beginning
679,043,141.03 492,599,119.52 19,153,855.34 71,671,959.22 1,262,468,075. 11
balance
2. Amount
increased in 2,217,299.08 37,374,927.04 768,008.86 1,944,796.97 42,305,031.95
current period
(1) Purchase 117,272.72 1,677,253.27 768,008.86 1,882,598.69 4,445,133.54
95
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
(2) Transfer
from
2,100,026.36 35,697,673.77 62,198.28 37,859,898.41
construction
in progress
(3) Increase by
business
combination
3. Amount
decreased in 267,625.88 1,067,092.29 1,334,718.17
current period
(1) Disposal or
1,067,092.29 1,067,092.29
scrap
(2) Other 267,625.88 267,625.88
4. Ending
680,992,814.23 528,906,954.27 19,921,864.20 73,616,756.19 1,303,438,388.89
balance
II. Accumulated
depreciation
1. Beginning
178,025,829.50 191,398,003.31 10,519,209.44 39,647,565.91 419,590,608.16
balance
2. Amount
increased in 15,640,526.19 24,083,380.03 1,298,796.64 4,178,665.07 45,201,367.93
current period
(1) Provision 15,640,526.19 24,083,380.03 1,298,796.64 4,178,665.07 45,201,367.93
3. Amount
decreased in 616,137.41 616,137.41
current period
(1) Disposal or
616,137.41 616,137.41
scrap
4. Ending
193,666,355.69 214,865,245.93 11,818,006.08 43,826,230.98 464,175,838.68
balance
III. Provision for
impairment
1. Beginning
balance
2. Amount
increased in
current period
(1) Provision
3. Amount
decreased in
current period
(1) Disposal or
scrap
4. Ending
balance
IV. Book value
1. Ending book
487,326,458.54 314,041,708.34 8,103,858.12 29,790,525.21 839,262,550.21
value
2. Beginning
501,017,311.53 301,201,116.21 8,634,645.90 32,024,393.31 842,877,466.95
book value
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
12. Construction in progress
Unit: yuan
Item Ending balance Beginning balance
Construction in progress 236,345,778.78 184,440,655.49
Total 236,345,778.78 184,440,655.49
(1) Construction in progress
Unit: yuan
Ending balance Beginning balance
Item Provi sion for Provi sion for
Book balance Book value Book balance Book value
impairment impairment
Maoshan
intelligent
base 205,897,083.05 205,897,083.05 116,239,899.42 116,239,899.42
infrastructure
proj ect
Automated
assembly 7,606,837.60 7,606,837.60 7,606,837.60 7,606,837.60
line
Automati c
line 5,086,206.90 5,086,206.90 5,086,206.90 5,086,206.90
equipment
Management
4,191,653.38 4,191,653.38 4,163,334.80 4,163,334.80
software
Other
sporadi c 2,578,513.67 2,578,513.67 4,663,411.54 4,663,411.54
proj ects
Riveting
2,119,658.12 2,119,658.12 2,119,658.12 2,119,658.12
equipment
Project of
producti on 2,008,547.08 2,008,547.08 5,299,145.30 5,299,145.30
department 3
Project of
producti on 1,801,724.14 1,801,724.14 11,143,604.48 11,143,604.48
department 2
Cutting
1,435,896.56 1,435,896.56 1,435,896.56 1,435,896.56
machi ne
Cleaning line 1,085,470.11 1,085,470.11 1,085,470.11 1,085,470.11
Roll forming
786,324.79 786,324.79 786,324.79 786,324.79
equipment
Dispensing
equipment 713,675.21 713,675.21 713,675.21 713,675.21
proj ect
Automati c
line
equipment
521,367.50 521,367.50 521,367.50 521,367.50
for host
panel
polishing
Automati c
polishing 512,820.67 512,820.67 512,820.67 512,820.67
equipment
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Outdoor
elevator 0.00 0.00 1,472,079.01 1,472,079.01
proj ect
Side suction
0.00 0.00 4,102,564.65 4,102,564.65
punch press
Homemade
platform
11,238,433.60 11,238,433.60
producti on
line
Spraying line 3,914,529.92 3,914,529.92
Pipe
installation 809,090.91 809,090.91
engineering
Workshop
decorati on 1,017,299.09 1,017,299.09
engineering
Call center
509,005.31 509,005.31
proj ect
Total 236,345,778.78 236,345,778.78 184,440,655.49 184,440,655.49
(2) Current changes in major projects under construction
Unit: yuan
Proportion Including:
Amount carried Other Accumulated Interest
Amount of total interest
Beginning forward to fixed decreases amount of capitalization Source
Item name Budget number increased in Ending balance proj ect Progress capitalization of
balance assets in in current of works interest rate in the
current period input to the funds in the funds
current period peri od capitalization current period
budget current period
Maoshan
intelligent
base 549,550,000.00 116,239,899.42 89,766,175.72 108,992.09 205,897,083.05 37.47% 37.47 Other
infrastructure
proj ect
Automated
8,900,000.00 7,606,837.60 7,606,837.60 85.47% 85.47 Other
assembly line
Automati c line
5,900,000.00 5,086,206.90 5,086,206.90 86.21% 86.21 Other
equipment
Management
5,036,150.00 4,163,334.80 161,061.94 132,743.36 4,191,653.38 85.87% 85.87 Other
software
Other
sporadi c 5,350,200.00 4,663,411.54 264,557.48 2,349,455.35 2,578,513.67 92.11% 92.11 Other
proj ects
Riveting
2,480,000.00 2,119,658.12 2,119,658.12 85.47% 85.47 Other
equipment
Project of
producti on 6,167,094.00 5,299,145.30 3,290,598.22 2,008,547.08 85.93% 85.93 Other
department 3
Project of
producti on 12,926,581.00 11,143,604.48 9,341,880.34 1,801,724.14 86.21% 86.21 Other
department 2
Cutting
1,665,640.00 1,435,896.56 1,435,896.56 86.21% 86.21 Other
machi ne
Cleaning line 1,270,000.00 1,085,470.11 1,085,470.11 85.47% 85.47 Other
Roll forming
920,000.00 786,324.79 786,324.79 85.47% 85.47 Other
equipment
Dispensing 827,863.25 713,675.21 713,675.21 85.47% 85.47 Other
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
equipment
proj ect
Automati c line
equipment for
610,000.00 521,367.50 521,367.50 86.21% 86.21 Other
host panel
polishing
Automati c
polishing 594,872.00 512,820.67 512,820.67 86.21% 86.21 Other
equipment
Homemade
platform
11,239,038.82 11,238,433.60 605.22 11,239,038.82 100.00% 100.00 Other
producti on
line
Spraying line 4,580,000.00 3,914,529.92 3,914,529.92 100.00% 100.00 Other
Outdoor
elevator 1,644,000.00 1,472,079.01 1,472,079.01 100.00% 100.00 Other
proj ect
Side suction 4,758,975.00 4,102,564.65 4,102,564.65 100.00% 100.00 Other
punch press
Pipe
installation 890,000.00 809,090.91 809,090.91 100.00% 100.00 Other
engineering
Workshop
decorati on 1,037,645.07 1,017,299.09 1,017,299.09 100.00% 100.00 Other
engineering
Call center
1,374,153.85 509,005.31 509,005.31 100.00% 100.00 Other
proj ect
Fi xed asset 559,900.00 0.00 482,672.40 482,672.40 100.00% 100.00 Other
equipment
Total 628,282,112.99 184,440,655.49 90,675,072.76 38,660,957.38 108,992.09 236,345,778.78 -- -- --
13. Intangible assets
(1) Intangible assets
Unit: yuan
Nonpatented
Item Land use right Patent right Software Trademark Total
technology
I. Original book value
1. Beginning
168,051,179.95 7,300,000.00 42,242,921.55 24,500,000.00 242,094,101.50
balance
2. Amount
increased in 2,725,964.18 2,725,964.18
current period
(1) Purchase 1,914,547.15 1,914,547.15
(2) Internal R&D
(3) Increase by
business
combination
Transfer from
811,417.03 811,417.03
construction in progress
3. Amount
decreased in
current period
99
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
(1) Disposal
4. Ending balance 168,051,179.95 7,300,000.00 44,968,885.73 24,500,000.00 244,820,065.68
II. Accumulated
amortization
1. Beginning
17,861,002.07 561,538.46 28,472,381.07 1,225,000.00 48,119,921.60
balance
2. Amount
increased in 1,678,156.15 561,538.46 2,953,417.82 1,225,000.00 6,418,112.43
current period
(1) Provision 1,678,156.15 561,538.46 2,953,417.82 1,225,000.00 6,418,112.43
3. Amount
decreased in
current period
(1) Disposal
4. Ending balance 19,539,158.22 1,123,076.92 31,425,798.89 2,450,000.00 54,538,034.03
III. Provision for
impairment
1. Beginning
balance
2. Amount
increased in
current period
(1) Provision
3. Amount
decreased in
current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book
148,512,021.73 6,176,923.08 13,543,086.84 22,050,000.00 190,282,031.65
value
2. Beginning book
150,190,177.88 6,738,461.54 13,770,540.48 23,275,000.00 193,974,179.90
value
14. Goodwill
(1) Original book value of goodwill
Unit: yuan
Increase in Decrease in
Investee name or goodwill forming matter Beginning balance Ending balance
current period current period
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. 80,589,565.84 80,589,565.84
(2) Provision for impairment of goodwill
Not applicable
100
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
15. Long-term unamortized expenses
Unit: yuan
Amount increased in Amortization amount
Item Beginning balance Other decreases Ending balance
current period in current period
Brand endorsement
4,609,402.37 3,457,053.36 1,152,349.01
fee
Consulting fee 235,849.05 94,339.62 141,509.43
Training membership
88,029.35 31,069.18 56,960.17
fee
Office allowance 27,184.47 27,184.47
Service charge 68,965.52 68,965.52
Total 4,933,280.77 96,149.99 3,582,462.16 1,446,968.60
16. Deferred income tax assets and deferred income tax liabilities
(1) Unoffset deferred income tax assets
Unit: yuan
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Recognition for provisional
499,357,694.39 74,903,654.16 118,518,358.59 18,037,753.80
estimate cost
Recognition for deferred
76,668,389.06 11,500,258.36 82,021,091.35 12,303,163.70
income
Provision for impairment 51,767,258.20 8,644,284.73 42,817,028.98 7,321,390.08
of assets
Unrealized profit of
9,385,633.80 2,346,408.45 6,284,756.04 1,571,189.01
internal transaction
Recognition for equity
2,091,925.29 330,543.82
incentive
Total 637,178,975.45 97,394,605.70 251,733,160.25 39,564,040.41
(2) Unoffset deferred income tax liabilities
Unit: yuan
Ending balance Beginning balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Appreciation of assets
appraisal for business
35,946,839.96 8,986,709.99 37,844,785.88 9,461,196.47
combination not under
common control
Taxable temporary
differences due to the
3,118,997.48 779,749.37 3,503,773.28 875,943.32
pretax deduction of fixed
assets
Total 39,065,837.44 9,766,459.36 41,348,559.16 10,337,139.79
101
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
(3) Deferred income tax assets or liabilities presented as net amount after offset
Unit: yuan
Ending balance of Beginning balance of
Ending offset amount of Beginning offset amount of
deferred income tax deferred income tax
Item deferred income tax deferred income tax
assets and liabilities after assets and liabilities after
assets and liabilities assets and liabilities
offset offset
Deferred income tax
97,394,605.70
assets
Deferred income tax
9,766,459.36
liabilities
(4) Details of unrecognized deferred income tax assets
Unit: yuan
Item Ending balance Beginning balance
Deductible temporary differences 6,454,297.91 21,542,361.53
Deductible loss 5,257.50 73,605.00
Total 6,459,555.41 21,615,966.53
(5) Deductible losses on unrecognized deferred income tax assets will expire in the following
year
Unit: yuan
Year Ending amount Beginning amount Remark
2019 15,088,524.40
2020 6,367,784.94 6,367,784.94
2021 39,785.54 39,785.54
2022 39,552.31 39,552.31
2023 6,714.34 6,714.34
2024 460.78
Total 6,454,297.91 21,542,361.53 --
Other description:
17. Other non-current assets
Unit: yuan
Item Ending balance Beginning balance
Advances for equipment purchase 10,266,672.24 6,126,821.00
Total 10,266,672.24 6,126,821.00
Unit: yuan
18. Notes payable
Unit: yuan
Type Ending balance Beginning balance
102
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Banker's acceptance bill 453,858,650.24 411,414,985.01
Total 453,858,650.24 411,414,985.01
19. Accounts payable
(1) Presentation of accounts payable
Unit: yuan
Item Ending balance Beginning balance
Payment for materials 729,004,532.93 798,811,442.97
Costs 564,755,910.52 313,379,353.95
Project payment 36,756,214.98 27,333,856.60
Payment for equipment 20,239,629.87 56,038,495.85
Total 1,350,756,288.30 1,195,563,149.37
(2) Important accounts payable with the aging more than 1 year
Other description:
As of June 30, 2019, the Company's important accounts payable with an age of more than one year
was 14,314,074.23 yuan, mainly for unpaid balance payment for project warranty period.
20. Advance from customers
(1) Presentation of advance from customers
Unit: yuan
Item Ending balance Beginning balance
Proceeds from sale 1,114,184,967.13 1,170,088,458.14
Total 1,114,184,967.13 1,170,088,458.14
21. Payroll payable
(1) Presentation of payroll payable
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
I. Short-term compensation 102,462,299.09 247,064,330.64 342,000,596.64 7,526,033.09
II. Welfare after dismission - defined
4,887,196.21 22,267,547.92 26,439,316.75 715,427.38
contribution plan
III. Dismission welfare 117,873.00 117,873.00
Total 107,349,495.30 269,449,751.56 368,557,786.39 8,241,460.47
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
(2) Presentation of short-term compensation
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
1. Wages, bonuses, allowances and
98,110,801.60 202,254,173.03 293,846,369.59 6,518,605.04
subsidies
2. Employee welfare expenses 11,771,507.96 11,771,507.96
3. Social insurance premium 3,719,338.20 16,489,945.36 19,743,588.71 465,694.85
Including: medical insurance premium 3,202,053.86 14,406,245.48 17,195,250.59 413,048.75
Industrial injury insurance
168,342.28 517,558.89 675,174.37 10,726.80
premium
Birth insurance premium 348,942.06 1,566,140.99 1,873,163.75 41,919.30
4. Housing fund 259,780.00 11,787,075.62 11,840,999.62 205,856.00
5. Labor union expenditure and
372,379.29 4,761,628.67 4,798,130.76 335,877.20
personnel education fund
Total 102,462,299.09 247,064,330.64 342,000,596.64 7,526,033.09
(3) Presentation of defined contribution plans
Unit: yuan
Item Beginning balance Increase in current period Decrease in current period Ending balance
1. Basic endowment
4,717,818.43 21,514,473.24 25,543,531.85 688,759.82
insurance
2. Unemployment insurance
169,377.78 753,074.68 895,784.90 26,667.56
premium
Total 4,887,196.21 22,267,547.92 26,439,316.75 715,427.38
Other description:
The Company shall participate in the endowment insurance and unemployment insurance plans set up
by the government according to the regulations. According to the plans, the Company shall pay
14.00%~21.00% and 0.50%~1.00% of the basic salary respectively to the plans. In addition to the
above monthly deposit fee, the Company will not undertake further payment obligations. The
corresponding expenditure is charged to the current profit and loss or the costs of relevant assets in
occurrence.
22. Tax payable
Unit: yuan
Item Ending balance Beginning balance
Added value tax 30,951,635.69 50,107,891.95
Corporate income tax 121,100,255.91 51,608,992.28
Individual income tax 686,754.73 1,907,601.56
Urban maintenance and construction tax 2,181,680.64 3,503,535.91
Housing property tax 10,889.45 2,717,027.16
Education surcharge 935,006.03 1,567,040.95
Surcharge for local education 604,478.25 915,440.20
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Disabled person employment security fund 187,682.04 586,878.75
Stamp duty 139,904.64 302,283.09
Land use tax 31,962.00
Total 156,798,287.38 113,248,653.85
23. Other payables
Unit: yuan
Item Ending balance Beginning balance
Other payables 228,982,475.40 234,490,187.04
Total 228,982,475.40 234,490,187.04
1) Other payables listed by nature
Unit: yuan
Item Ending balance Beginning balance
Sales margin payable 213,232,802.53 207,277,172.48
Other 8,383,013.26 9,534,323.01
Deposit payable 6,352,408.61 8,266,061.00
Collections for others 1,014,251.00 5,955,641.55
Equity incentive repurchase obligation 3,456,989.00
Total 228,982,475.40 234,490,187.04
2) Important other payable with the aging more than 1 year
Unit: yuan
Item Ending balance Reasons for failure of payment or carryover
Sales margin payable 205,571,275.52 The sale is not over
Total 205,571,275.52 --
24. Deferred income
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance Causes
period period
Government
82,021,091.35 5,352,702.29 76,668,389.06 Asset related
subsidies
Total 82,021,091.35 5,352,702.29 76,668,389.06 --
Projects involving government subsidies:
Unit: yuan
Amount of Amount Amount
additional included in Amount included offsetting the
Other Asset/income
Liability item Beginning balance subsidy in current in other income in cost in the Ending balance
alterations related
current non-operating current period current
period income period
Production and
construction
project of 30,052,414.32 1,286,890.62 28,765,523.70 Asset related
annual
production of
2.25 million
105
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
kitchen
appliances
Intelligent
manufacturing,
integrated
standardization 29,669,623.74 1,982,257.55 27,687,366.19 Asset related
and new mode
application
project
Construction
project of
kitchen
14,140,102.73 1,182,583.62 12,957,519.11 Asset related
appliance R&D,
design and test
center
Production and
construction
project of
annual 4,570,409.00 571,891.98 3,998,517.02 Asset related
production of 1
million kitchen
appliances
New-generation
environmentally
friendly and
energy-saving 1,102,977.83 95,325.42 1,007,652.41 Asset related
kitchen
appliances and
production line
Digital
intelligent
manufacturing
workshop
900,502.44 79,713.36 820,789.08 Asset related
project of
intelligent
household
appliances
Recycling
transformation 635,297.13 45,805.08 589,492.05 Asset related
project
Project of
annual
production of
335,798.77 51,853.02 283,945.75 Asset related
2.25 million
digital
workshops
Academician
expert 349,389.68 23,127.84 326,261.84 Asset related
workstation
Subsidies for
investment
project of
annual 206,754.51 29,441.40 177,313.11 Asset related
production of
150,000 range
hoods
Kitchen
appliance R&D,
57,821.20 3,812.40 54,008.80 Asset related
design and test
center project
Total 82,021,091.35 5,352,702.29 76,668,389.06 Asset related
106
Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
25. Capital stock
Unit: yuan
Increase / decrease (+, -)
Beginning balance Share Share capital Ending balance
New issue of Subtota
donatio increase from Other
shares l
n reserved funds
Total amount of
949,024,050.00 949,024,050.00
shares
26. Capital reserve
Unit: yuan
Item Beginning balance Increase in current period Decrease in current period Ending balance
Capital premium (capital
400,222,714.56 1,576,618.11 401,799,332.67
stock premium)
Other capital surplus 1,467,086.86 109,531.25 1,576,618.11 0.00
Total 401,689,801.42 1,686,149.36 1,576,618.11 401,799,332.67
Other description, including current increase / decrease and change reasons:
Note: The restricted stock cost to be recognized in January - June 2019 in the Company’s initial
restricted stock incentive plan was 109,531.25 yuan.
27. Treasury stock
Unit: yuan
Item Beginning balance Increase in current period Decrease in current period Ending balance
Repurchase obligations
recognized for issuance of 3,456,989.00 3,456,989.00
restricted stock
Total 3,456,989.00 3,456,989.00
Other description, including current increase / decrease and change reasons:
th th
Note: On January 22, 2019, the Company’s 9 meeting of the fourth Board of Directors and the 9
meeting of the fourth Board of Supervisors reviewed and adopted the Proposal on Reserved Granting
of Unlock ing in Third Unlock ing Period in Restricted Stock Incentive Plan. The grant date of the
reserved restricted stock incentive determined by the Company was January 4, 2016. As of January 04,
2019, the lockup period of this reserved restricted stock had expired. The unlocking conditions for the
third unlocking period have been satisfied. The 27 incentive objects who agree to meet the assessment
requirements can unlock 365, 625. 00 restricted stocks in the third unlocking period. The restricted
stocks unlocked were listed and circulated on February 18, 2019, and the repurchase obligation was
reduced by 3,456,989.00 yuan. The Company 's initial restricted stock incentive plan has been fully
unlocked.
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28. Surplus reserves
Unit: yuan
Item Beginning balance Increase in current period Decrease in current period Ending balance
Statutory surplus reserves 474,516,412.50 474,516,412.50
Total 474,516,412.50 474,516,412.50
Description of surplus reserves, including current increase / decrease and change reasons:
Note: According to the Company Laws and the articles of association, the Company makes provision
for legal surplus reserves at 10% of the net profit. The Company may stop drawing if the accumulative
legal surplus reserves have already accounted for over 50 percent of the Company's registered capital.
The Company may withdraw discretionary surplus reserves after withdrawing the legal surplus
reserves. Upon approval, the discretionary surplus reserves can be used to make up for the losses of
the previous year or increase the capital stock.
29. Undistributed profit
Unit: yuan
Item Current period Prior period
Undistributed profit at the end of previous period before
4,223,611,112.65 3,461,806,065.78
adjustment
Undistributed profits at the beginning of the period after
4,223,611,112.65 3,461,806,065.78
adjustment
Plus: Net profits attributable to the owners of parent
670,403,994.20 1,473,579,665.62
company in the current period
Common stock dividends payable 759,219,240.00 711,774,618.75
Undistributed profits at the end of the period 4,134,795,866.85 4,223,611,112.65
30. Operating income and operating cost
Unit: yuan
Amount incurred in current period Amount incurred in previous period
Item
Income Cost Income Cost
Main business 3,452,212,044.04 1,571,078,316.27 3,394,298,971.47 1,584,187,817.12
Other businesses 75,201,838.92 28,323,646.54 102,363,594.00 44,457,585.60
Total 3,527,413,882.96 1,599,401,962.81 3,496,662,565.47 1,628,645,402.72
31. Taxes and surcharges
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Urban maintenance and construction tax 16,545,646.34 17,342,827.79
Education surcharge 7,090,991.29 7,432,640.50
Housing property tax 6,285.71 2,655,060.03
Land use tax 438,294.95
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Vehicle and vessel use tax 9,593.34 17,162.85
Stamp duty 1,150,321.15 868,191.86
Surcharge for local education 4,656,160.55 4,955,093.65
Total 29,458,998.38 33,709,271.63
Other description:
Note: Refer to the notes and taxes for details of various taxes and additional payment standards.
32. Selling expenses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Advertising and promotion expenses 315,539,234.97 332,636,379. 11
Sales and service fees 287,199,474.84 270,688,704.09
Promotion fees 96,455,563.19 88,412,307.25
Employee compensation 94,393,030.18 76,367,596.61
Freight 77,729,895.46 84,366,924.08
Booth decoration fee 77,617,108.92 70,393,486.00
Other 25,982,648.71 25,811,034.10
Business entertainment expenses 7,209,763.53 7,624,654.89
Office allowance 6,268,845.59 5,345,652.51
Admission fee 1,649,341.22 3,098,329.80
Total 990,044,906.61 964,745,068.44
33. Management costs
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Employee compensation 54,695,776.71 56,096,409.98
Depreciation and amortization 19,729,326.75 17,569,714.07
Maintenance expense 6,479,908.47 11,845,324.50
Consulting service charge 1,095,493.56 1,011,586.62
Traveling expense 2,981,161.71 3,369,261.70
Office allowance 1,936,101.78 3,273,809.64
Rental fees 3,845,066.25 3,021,166.58
Equity incentive fee 109,531.25 1,521,486.54
Other 25,299,162.29 26,985,069.90
Total 116,171,528.77 124,693,829.53
34. Research and development expenses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Direct investment 49,233,260.11 54,181,636.19
Employee compensation 43,596,381.82 41,244,964.67
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Depreciation and amortization 7,682,242.02 6,545,732.90
Design fee 3,116,230.90 1,490,413.91
Other expenses 4,001,671.28 6,360,919.69
Total 107,629,786.13 109,823,667.36
35. Financial expenses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Less: Interest revenue 30,307,927.32 48,117,978.17
Exchange gain or loss 35,598.30 -319,870.79
Interest expenditure 201,831.98
Other 465,526.17 360,179.57
Total -29,604,970.87 -48,077,669.39
36. Other income
Unit: yuan
Amount incurred in Amount incurred in
Other sources of income
current period previous period
Second batch of financial support funds for enterprise cultivation in 2017 45,262,300.00
Performance award of Shanghai Hongkou District Finance Bureau 4,090,000.00 100,000.00
Intelligent manufacturing, integrated standardization and new mode application project 1,982,257.55
Production and construction project of annual production of 2.25 million kitchen appliances 1,286,890.62 1,226,439.78
Construction project of kitchen appliance R&D, design and test center 1,182,583.62
Supporting funds for industrial chain improvement in Hangzhou IIT special fund in 2018 958,500.00
Production and construction project of annual production of 1 million kitchen appliances 571,891.98 571,891.98
Social insurance tax refund in 2018 533,442.61
Subsidy funds for cloud demonstration enterprises in 2017 300,000.00
Job subsidies and social insurance subsidies 229,477.50 292,599.00
New-generation environmentally friendly and energy-saving kitchen appliances and
95,325.42 95,325.42
production line
Digital intelligent manufacturing workshop of intelligent household appliances 79,713.36 71,553.00
Third-generation commission charges of Hongkou District Tax Bureau 76,579.44
Project of annual production of 2.25 million digital workshops 51,853.02 51,853.02
Recycling transformation project 45,805.08 41,491.24
Smart electricity subsidy 32,000.00
Subsidies for investment project of annual production of 150,000 range hoods 29,441.40 29,441.40
Expert workstation 23,127.84 23,127.84
Patent subsidy 4,180.00
Kitchen appliance R&D, design and test center 3,812.40 3,812.40
Patent for invention 15,000.00
Special application subsidy 252,000.00
Subsidies for R&D input and advertising in 2016 56,749,600.00
Total 56,839,181.84 59,524,135.08
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
37. Investment income
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Investment income from purchasing financial
39,789,776.54 32,787,830.58
products
Investment income from available-for-sale financial
7,326,845.00
assets during the holding period
Investment income from disposal of
available-for-sale financial assets
Long-term equity investment gains measured by
69,197.95 655,604.04
employing the equity method
Total 39,858,974.49 40,770,279.62
38. Credit impairment loss
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Loss on bad debts of notes receivable -5,510,787.60
Loss on bad debts of accounts receivable -2,026,738.41
Loss on bad debts of other receivables -1,414,503.22
Total -8,952,029.23
39. Assets impairment losses
Whether new income standards have been implemented
□Yes √No
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
I. Loss on bad debts -8,585,478.93
Total -8,585,478.93
40. Income from disposal of assets
Unit: yuan
Source of income from disposal of assets Amount incurred in current period Amount incurred in previous period
Income from disposal of non-current assets -296,672.23 62,757.28
41. Non-operating income
Unit: yuan
Amounts recorded in the
Item Amount incurred in current period Amount incurred in previous period non-recurring gains and losses of
the current period
Government grants unrelated to
1,230,000.00 5,249,847.36 1,230,000.00
the daily activities of the Company
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Other 381,946.09 426,686.51 381,946.09
Total 1,611,946.09 5,676,533.87 1,611,946.09
Unit: yuan
Other description:
Subsidized project Amount included in Amount included in Asset/income related
current non-operating previous non-operating
income income
Subsidies for mass entrepreneurship and innovation platform project in 1,000,000.00 Income related
2018
Subsidies for municipal technical standardization construction in 2018 100,000.00 Income related
Subsidies for skilled talent cultivation 70,000.00 50,000.00 Income related
Recognition awards of key enterprises 60,000.00 60,000.00 Income related
Performance award of Shanghai Hongkou District Finance Bureau 5,020,000.00 Income related
Third-generation commission charges of Hongkou District Tax Bureau 55,847.36 Income related
Mass entrepreneurship and innovation role model 50,000.00 Income related
On-site home appliance service specifications 14,000.00 Income related
Total 1,230,000.00 5,249,847.36
42. Non-operating expenditure
Unit: yuan
Amounts recorded in the
Item Amount incurred in current period Amount incurred in previous period non-recurring gains and losses of
the current period
Loss on exchange of non-monetary
1,171,725.00 27,611.09 1,171,725.00
assets
External donations 1,000,000.00 1,000,000.00 1,000,000.00
Other 710,719.05 100,106.34 710,719.05
Total 2,882,444.05 1,127,717.43 2,882,444.05
Other description:
43. Income tax expenses
(1) Income tax expenses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Current income tax expenses 181,475,283.87 179,468,158.68
Deferred income tax expenses -58,401,245.72 -60,360,219.35
Total 123,074,038.15 119,107,939.33
(2) Accounting profit and income tax expense adjustment process
Unit: yuan
Item Amount incurred in current period
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Total profit 800,490,628.04
Income tax expenses calculated at the appropriate/applicable tax rate 120,073,594.21
Impact of different tax rates applied on subsidiaries 2,595,535.02
Impact of income tax before adjustment 415,814.43
Impact of non-deductible costs, expenses and losses 722,405.53
Impact of temporary difference or deductible losses on unrecognized
115.20
deferred income tax assets in the current period
Impact of weighted deduction of R&D costs -734,740.62
Impact of equity incentive 1,314.38
Income tax expenses 123,074,038.15
44. Cash flow statement items
(1) Other cash received related to operating activities
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Income from deposit interest 30,307,927.32 48,081,953.15
Government subsidies 52,163,036.94 62,659,046.36
Deposit 3,811,603.20 19,666,990.28
Other payments 8,863,178.11 16,735,134.25
Total 95,145,745.57 147,143,124.04
(2) Other cash paid related to operating activities
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Sales and service fees 250,501,946.66 273,500,396.33
Advertising and promotion expenses 212,494,851.46 260,865,731.53
Other 81,682,101.67 78,979,716.67
Freight 63,243,609.00 63,365,744.98
Booth decoration fee 63,178,712.44 60,179,905.03
Technical development expense 60,213,336.23 61,712,909.58
Promotion fees 22,361,177.73 23,277,687.24
Rental fees 10,821,751.44 8,433,842.54
Intermediary consulting fee 6,516,635.83 10,630,573.38
Total 771,014,122.46 840,946,507.28
(3) Other cash paid related to investment activities
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Earnest money for investment 30,000,000.00
Total 30,000,000.00
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
45. Further information on cash flow statement
(1) Further information on cash flow statement
Unit: yuan
Further information Current amount Last term amount
Reconciliation from net profits to cash flows from
-- --
operating activities:
Net profit 677,416,589.89 660,335,565.34
Plus: Provision for impairment of assets 8,952,029.23 8,585,478.93
Depreciation of fixed assets, oil and gas assets
45,201,367.93 40,971,576.82
and productive biological assets
Amortization of intangible assets 6,418,112.43 4,556,986.64
Amortization of long-term deferred expenses 3,582,462.16 3,473,561.22
Losses on disposal of fixed assets, intangible
assets and other long-term assets (gains 1,468,397.23 -62,757.28
expressed with “-”)
Loss on retirement of fixed assets (gains
27,611.09
expressed with “-”)
Financial expenses (gains expressed with “-”) -116,415.75 267,232.10
Investment losses (gains expressed with “-”) -39,858,974.49 -40,770,279.62
Decreased in deferred income tax assets
-57,830,565.29 -60,360,219.35
(increase expressed with “-”)
Increase in deferred income tax liabilities
-570,680.43
(decrease expressed with “-”)
Decrease in inventories (increase expressed with
130,904,758.56 -124,109,202.78
“-”)
Decrease in operating receivables (increase
-298,690,566.84 -146,955,942.28
expressed with “-”)
Increase in operating payables (decrease
187,057,740.99 772,191,994.53
expressed with “-”)
Other -5,243,171.04 3,636,422.62
Net cash flow from operating activities 658,691,084.58 1,121,788,027.98
2. Significant investment and financing activities
-- --
not involving cash deposit and withdrawal:
3. Net changes in cash and cash equivalents: -- --
Ending balance of cash 2,559,638,401.46 2,531,498,207.68
Less: Beginning balance of cash 2,177,219,858.85 2,562,788,024.38
Net increase of cash and cash equivalents 382,418,542.61 -31,289,816.70
(2) Composition of cash and cash equivalents
Unit: yuan
Item Ending balance Beginning balance
I. Cash 2, 559, 638, 401. 46 2, 177, 219, 858. 85
Including: cash on hand 459, 629. 14 380, 338. 61
Bank deposit readily availabl e for
2, 559, 178, 772. 32 2, 176, 839, 520. 24
payment
III. Balance of cash and cash equivalent s at
2, 559, 638, 401. 46 2, 177, 219, 858. 85
end of period
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Other description:
46. Notes to items in statement of owner's equity
State the name of "other" items and the amount of adjustment to the ending balance of previous year:
47. Assets with ownership or use rights restricted
Unit: yuan
Item Ending book value Causes f or rest riction
Monet ary capit al 19, 088, 012. 03 Guarant ee deposit
Tot al 19, 088, 012. 03 --
48. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: yuan
Ending balance in f oreign Ending balance convert ed t o
Item Conversion exchange rat e
currency RMB
Monet ary capit al -- --
Including: USD 2, 745, 813. 05 6. 8747 18, 876, 640. 96
Euro 350. 00 7. 8170 2, 735. 95
AUD 3. 28 4. 8171 15. 80
Accounts receivable -- --
Including: USD 1, 556, 424. 84 6. 8747 10, 699, 953. 85
Euro
AUD 589. 60 7. 8170 4, 608. 90
49. Government subsidies
(1) Basic information of government subsidies
Unit: yuan
Amount recorded in current profit
Type Amount Presented item and loss
Second batch of financial support funds for
45,262,300.00 Other income 45,262,300.00
enterprise cultivation in 2017
Performance award of Shanghai Hongkou District
4,090,000.00 Other income 4,090,000.00
Finance Bureau
Subsidies for mass entrepreneurship and
1,000,000.00 Non-operating income 1,000,000.00
innovation platform project in 2018
Supporting funds for industrial chain improvement
958,500.00 Other income 958,500.00
in Hangzhou IIT special fund in 2018
Social insurance tax refund in 2018 533,442.61 Other income 533,442.61
Subsidy funds for cloud demonstration enterprises
300,000.00 Other income 300,000.00
in 2017
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Job subsidies and social insurance subsidies 186,916.50 Other income 186,916.50
Job subsidies and social insurance subsidies 21,622.00 Other income 21,622.00
Job subsidies and social insurance subsidies 20,939.00 Other income 20,939.00
Subsidies for municipal technical standardization
100,000.00 Non-operating income 100,000.00
construction in 2018
Third-generation commission charges of Hongkou
76,579.44 Other income 76,579.44
District Tax Bureau
Subsidies for skilled talent cultivation 50,000.00 Non-operating income 50,000.00
Subsidies for skilled talent cultivation 20,000.00 Non-operating income 20,000.00
Recognition awards of key enterprises 60,000.00 Non-operating income 60,000.00
Smart electricity subsidy 32,000.00 Other income 32,000.00
Patent subsidy 4,180.00 Other income 4,180.00
VIII. Consolidation scope changes
Not applicable
IX. Interests in other entities
1. Interests in a subsidiary
(1) Composition of enterprise group
Main operation Shareholding ratio
Subsidiary name Registration place Business nature Way of obtaining
site Direct Indirect
Beijing Robam Sales of kitchen Business
Electric Appliance Beijing Beijing electric appliance 100.00% combination under
Sales Co., Ltd. products common control
Shanghai Robam Sales of kitchen Business
Electric Appliance Shanghai Shanghai electric appliance 100.00% combination under
Sales Co., Ltd. products common control
Sales of kitchen
Hangzhou Mingqi Acquisition by
Hangzhou Hangzhou electric appliance 100.00%
Electric Co., Ltd. establishment
products
Dize Home
Sales of kitchen
Appliance Trading Acquisition by
Shanghai Shanghai electric appliance 51.00%
(Shanghai) Co., investment
products
Ltd.
Production and Business
Shengzhou Kinde
sales of kitchen combination not
Intelligent Kitchen Shengzhou Shengzhou 51.00%
electric appliance under common
Electric Co., Ltd.
products control
Hangzhou Robam
Fuchuang Assets and
Acquisition by
Investment Hangzhou Hangzhou investment 100.00%
establishment
Management Co., management
Ltd.
(2) Important non-wholly owned subsidiary
Unit: yuan
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Current profits and losses
Minority Current dividends declared to Ending balance of
Subsidiary name attributable to minority
shareholding ratio minority shareholders minority equity
shareholders
Shengzhou Kinde Intelligent 49.00% 7,012,821.47 95,809,668.83
Kitchen Electric Co., Ltd.
Dize Home Appliance Trading
49.00% -225.78 -3,333, 111.73
(Shanghai) Co., Ltd.
(3) Main financial information of important non-wholly owned subsidiaries
Unit: yuan
Ending balance Beginning balance
Subsidiary Non-curre Non-curre
name Current Non-curre Total Current Total Current Non-curre Total Current Total
nt nt
assets nt assets assets liabilities liabilities assets nt assets assets liabilities liabilities
liabilities liabilities
Shengzhou
Kinde
Intelligent 212,856,4 61,008,54 273,865,0 61,054,38 9,766,459 70,820,84 186,230,0 54,982,90 241,212,9 49,657,71 10,345,77 60,003,491
Kitchen 87.39 9.80 37.19 9.54 .36 8.90 07.04 0.77 07.81 2.19 8.88 .07
Electric Co.,
Ltd.
Dize Home
Appliance
9,303.72 6,811,572 6,811,572 5,842.75 9,764.50 6,811,572 6,811,572.
Trading 5,486.41 3,817.31 3,921.75
.56 .56 .56 56
(Shanghai)
Co., Ltd.
Unit: yuan
Amount incurred in current period Amount incurred in previous period
Subsidiary name Total Cash flow Total Cash flow
Operating Operating
Net profit comprehensiv from financing Net profit comprehensiv from financing
income income
e income activities e income activities
Shengzhou Kinde
Intelligent Kitchen 90,517,727.14 14,311,880.56 14,311,880.56 26,511,914.94
Electric Co., Ltd.
Dize Home
Appliance Trading
-5,718.28 -5,718.28 -345.73 -50,102.29 -50,102.29 -3,389.42
(Shanghai) Co.,
Ltd.
3. Equity in joint venture arrangement or joint venture
(1) Important cooperative enterprises or joint ventures
Shareholding rat io Accounting
treat ment
Name of met hod of
cooperative Main operation Registrat ion Business
invest ment in
ent erprise or sit e place nat ure Direct Indirect cooperative
joint vent ure ent erprises or
joint vent ures
De Diet rich
Trade Sales of kitchen
Shanghai Shanghai 51. 00% Equity met hod
(Shanghai) Co., appliances
Lt d.
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
(2) Summary of financial information of unimportant cooperative enterprises and joint
ventures
Unit: yuan
Ending balance/ amount incurred in Beginning balance/ amount incurred in
current period previous period
Cooperat ive ent erprise: -- --
Tot al book value of invest ment 2, 687, 049. 11 2, 617, 851. 16
Tot al number of f ollowing it ems by
-- --
shareholding rat io
- Net profit 69, 197. 95 -1, 197, 385. 79
- Tot al comprehensive income 69, 197. 95 -1, 197, 385. 79
- Joint vent ure: -- --
Tot al number of f ollowing it ems by
-- --
shareholding rat io
Unit: yuan
X. Risks associated with financial instruments
The main financial instruments of the Company include accounts receivable, accounts payable,
etc. The detailed description of the financial instruments is shown in Note VI. Related items. The
management of the Company shall manage and monitor the se risk exposures to ensure that the
above risks are controlled within the limited scope.
Risk management objective and policy
The Company’s risk management is to strike an appropriate balance between risks and benefits,
minimize the negative impact of risks on the Company's business performance and maximize the
interests of shareholders and other equity investors. Based on this risk management objective, the
basic strategy of the Company's risk management is to determine and analyze various risks faced
by the Company, establish an appropriate bottom line for risk tolerance, make risk management
and timely and reliably supervise various risks to control the risks within the limited scope.
1. Credit risk
The largest credit risk exposure that may cause financial losses of the Company on June 30, 2019
mainly comes from the loss of financial assets of the Company caused by the failure of the other
party to fulfill its obligations.
In order to reduce credit risks, the Company shall assign special personnel to determi ne the credit
limit, conduct credit examination and approval, and implement other monitoring procedures to
ensure that necessary measures are taken to recover overdue claims. Moreover, the Company
shall review the recovery of each single receivable on each balance sheet date to ensure that
adequate bad debt provisions are withdrawn for unrecoverable amounts. Therefore, the
Company's management believes that the Company's credit risk has been greatly reduced.
The Company's working capital is deposited in banks with high credit rating, so the credit risk of
working capital is low.
The analysis of a financial asset that has suffered a single impairment includes the factors
considered in judging the impairment of the financial asset.
On the balance sheet date, the Company individually determined the receivables from determined
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
separately that the unit amount of receivables of Oriental Home Building Materials Commercial
Co., Ltd. and Laox (Beijing) Commercial and Trading Co. Ltd. that have suffered impairment.
Oriental Home Building Materials Commercial Co., Ltd. was insolvent; Laox (Beijing) Commercial
and Trading Co. Ltd. is less likely to recover due to its business adjustment; the Company has
withdrawn the provision for bad debt in full.
There is no significant credit concentration risk due to the Company's risk exposure to multiple
parties and customers.
The Company has adopted the necessary policies to ensure that all sales customers have good
credit records. The Company has no significant credit concentration risk.
2. Liquidity risk:
When managing liquidity risks, the Company shall maintain sufficient cash and cash equivalents
as deemed by the management and monitor them to meet the Company's operational needs and
reduce the impact of cash flow fluctuations.
3. Foreign exchange risk
Foreign exchange risk refers to the risk of loss due to exchange rate movement. The foreign
exchange risk borne by the Company is mainly related to USD (which shall be modified according
to the actual situation), and the main business activities of the Company are denominated and
settled in RMB. On June 30, 2019, the Company's assets and liabilities were RMB balance, except
that the assets or liabilities mentioned in the following table were foreign currency balance. The
foreign exchange risks arising from the assets and liabilities of such foreign currency balance may
have an impact on the Company's business performance.
Item Clos ing balanc e Opening balanc e
M onetary c apit al
Inc luding: U SD 2, 745, 813. 05 2, 812, 009. 15
Euro 350. 00 3. 78
AU D 3. 28 3. 27
Ac c ounts receiv able
Inc luding: U SD 1, 556, 424. 84 1, 544, 658. 61
Euro 589. 60
AU D 30. 00 30. 00
The Company pays close attention to the exchange rate movement on its foreign exchange risks ,
and has not taken any measures to avoid foreign exchange risks.
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XI. Fair value disclosure
Not applicable
XII. Related parties and related transactions
1. Parent company of the Company
Shareholding rat io
Voting right ratio of
Parent company of t he parent
Registrat ion place Business nat ure Regist ered capit al the parent company
name company in t he
in t he Company
Company
Hangzhou Robam Invest ment and
Hangzhou,
Indust rial Group industrial RMB 60 million 49. 68% 49. 68%
Zhejiang
Co., Lt d. management
Parent company of the Company: the final controller of the Company is Ren Jianhua
2. Subsidiaries of the Company
See Note 1. Interests in a subsidiary for the details of the subsidiaries.
3. Cooperative enterprises and joint ventures
See the note for important cooperative enterprises or joint ventures of the Company.
Other cooperative enterprises or joint ventures that made related party transactions with the Company in the
current period, or formed the balance of related party transactions with the Company in the previous periods are as
follows:
Name of cooperative enterprise or joint venture Relationship with the Company
De Dietrich Trade (Shanghai) Co., Ltd. Cooperative enterprise
Other description
4. Situation of other related parties
Name of other related parties Relationship of other related parties with the Company
Hangzhou Amblem Kitchen Ware Co., Ltd. Controlled by the same parent company
Hangzhou Yuhang Robam Gas Station Co., Ltd. Controlled by the same parent company
Hangzhou Nbond Nonwoven Co., Ltd. Controlled by the same parent company
Hangzhou Yuhang Matt Spray Painting Factory Controlled by the sister of the actual controller
Garden Hotel Hangzhou Greatly influenced by the parent company
Hangzhou Bonyee Daily Necessity Technology Co., Ltd. Controlled by the same parent company
Other shareholders of subsidiaries controlled by the
Shaoxing Kinde Electric Appliance Co., Ltd.
company
Other description
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5. Related transaction
(1) Related transaction of purchases and sales of goods, provision and acceptance of services
Purchase of goods/acceptance of services
Unit: yuan
Related transaction Amount incurred in Approved transaction Whether the transaction Amount incurred in
Related party
content current period quota quota is exceeded previous period
Hangzhou Yuhang
Matt Spray Painting Paint processing 5,504,169.36 No 5,613,662.24
Factory
Hangzhou Amblem
Display panels,
Kitchen Ware Co., 1,697,016.55 No 3,648,378.90
booths and cabinets
Ltd.
Hangzhou Bonyee
Daily Necessity Material 1,746,291.56 No 932,164.48
Technology Co., Ltd.
Hangzhou Yuhang
Robam Gas Station Fuel 565,621.34 No 1,660,547.31
Co., Ltd.
Garden Hotel Conference service No 958.49
Hangzhou
Selling commodities/offering labor
Unit: yuan
Related transaction Amount incurred in Amount incurred in
Related party
content current period previous period
Sales of kitchen
Hangzhou Amblem Kitchen Ware Co., Ltd. electric appliance 5,836,683.25 6,122,603.15
products
Sales of kitchen
De Dietrich Trade (Shanghai) Co., Ltd. electric appliance 1,924,894.92
products
Sales of kitchen
Hangzhou Nbond Nonwoven Co., Ltd. electric appliance 724.14 307.69
products
(2) Related-party lease
The Company as the lessor:
Unit: yuan
Lease income recognized Lease income recognized
Name of lessee Type of leased assets in the current period in the previous period
Hangzhou Robam
House 14,400.00 14,400.00
Industrial Group Co., Ltd.
The Company as the lessee:
Unit: yuan
Lease fee recognized in Lease fee recognized in
Name of lessor Type of leased assets
the current period the previous period
Hangzhou Robam
House 275,012.28 275,012.28
Industrial Group Co., Ltd.
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
6. Accounts receivable and payable by related parties
(1) Receivables
Unit: yuan
Ending balance Beginning balance
Item name Related party Provision for bad Provision for bad
Book balance Book balance
debt debt
Shaoxing Kinde
Electric
5,847,688.80 292,384.44
Accounts Appliance Co.,
receivable Ltd.
Hangzhou
Amblem Kitchen 2,435,912.33 124,782.87
Ware Co., Ltd.
(2) Payables
Unit: yuan
Item name Related party Ending book balance Beginning book balance
Hangzhou Yuhang Matt
3,627,878.50 4,224,367.40
Spray Painting Factory
Hangzhou Yuhang Robam
1,291,034.96 1,238,869.31
Gas Station Co., Ltd.
Accounts payable
Hangzhou Amblem Kitchen
683,600.21 916,666.81
Ware Co., Ltd.
Hangzhou Bonyee Daily
Necessity Technology Co., 1,091,272.24 148,644.89
Ltd.
Other payables Hangzhou Yuhang Matt
200,000.00 200,000.00
Spray Painting Factory
7. Related party commitment
8. Other
XIII. Share-based payment
1. Overall status of share -based payment
√ Applicable □ Not applicable
Unit: yuan
Total amount of equity instruments granted by the company during
0.00
the current period
Total amount of equity instruments exercised by the company
109,531.25
during the current period
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Total amount of equity instruments invalidated by the company
0.00
during the current period
Other description
The Company’s second meeting of the third Board of Supervisors on September 9, 2014 reviewed
and adopted the Proposal on the Initial Restricted Stock Incentive Plan (Draft) (hereinafter referred
to as the “plan” or “plan draft”). The number of restricted stocks to be granted under the plan was
4.5million, and the actual number of restricted stocks granted was 4.48 million, accounting for
1.40% of the total 320 million stocks of the Company on the announcement date of the plan draft
abstract. Where, 4.07 million stocks were planned to the granted in the first time and 4.05 million
stocks were granted actually, accounting for 1.27% of the total stocks of the Company on the
announcement date of the plan draft abstract; 430,000 stocks were reserved, accounting for
0.13% of the total stocks of the Company on the announcement date of the plan draft abstract and
9.60% of the total restricted stocks granted this time. The reserved part will be granted within one
year after the first grant date of the plan.
The plan shall be valid for up to five years from the date of the initial grant of restricted stocks.
(1) The incentive object shall be locked up within 12 months from the date of receiving the
restricted stocks. During the lockup period, the restricted stocks granted to the incentive
object under the plan are locked and non-transferable;
(2) Upon the expiration of 12 months from the date of the initial grant of the incentive plan, the
restricted stock first granted under this plan shall be unlocked by the incentive object in three
times over the next 36 months. During the unlocking period, if the unlocking conditions
stipulated in this plan are satisfied, the incentive object may apply for unlocking in three times:
the first unlocking period is the first year after the expiration of the lockup period and the
incentive object may apply for unlocking 30% of the total number of restricted stocks granted;
the second unlocking period is the second year after the expiration of the lockup period and
the incentive object may apply for unlocking 40% of the total number of restricted stocks
granted; the third unlocking period is the third year after the expiration of the lockup period
and the incentive object may apply for unlocking 30% of the total number of restricted stocks
granted. Upon the expiration of 12 months from the date of the corresponding grant date, the
restricted stocks reserved shall be unlocked by the incentive object in three times over the
next 36 months. The first unlocking period is the first year after the expiration of the lockup
period and the incentive object may apply for unlocking 30% of the total number of restricted
stocks granted; the second unlocking period is the second year after the expiration of the
lockup period and the incentive object may apply for unlocking 40% of the total number of
restricted stocks granted; the third unlocking period is the third year after the expiration of the
lockup period and the incentive object may apply for unlocking 30% of the total nu mber of
restricted stocks granted.
The incentive objects of the plan are the Company's directors, middle and senior management, as
well as the core business (technical) personnel identified by the Company. The price of restricted
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
stock granted to incentive objects for the first time is 15.16 yuan per stock.
For the restricted stock granted in the plan for the first time, the performance conditions of the
incentive object for each application for the unlocking of the underlying stocks are as follows:
(1) Taking the net profit in 2013 as a fixed basic number, the net profit growth rate of the
Company in 2014, 2015 and 2016 shall be no less than 30%, 65% and 110% respectively;
(2) The return on equity in 2014, 2015 and 2016 shall be no less than 20%;
(3) During the lockup period, the net profits attributable to shareholders of listed companies and
the net profits attributable to shareholders of the listed company after deduction of
non-recurring profits and losses shall not be negative and not be lower than the average lev el
of the last three fiscal years before the grant date.
For the restricted stock reserved to grant in the plan, the performance conditions of the incentive
object for each application for the unlocking of the underlying stocks are as follows:
(1) Taking the net profit in 2013 as a fixed basic number, the net profit growth rate of the
Company in 2015, 2016 and 2017 shall be no less than 65%, 110% and 160% respectively;
(2) The return on equity in 2015, 2016 and 2017 shall be no less than 20%;
(3) During the lockup period, the net profits attributable to shareholders of listed companies and
the net profits attributable to shareholders of the listed company after deduction of
non-recurring profits and losses shall not be negative and not be lower than the average level
of the last three fiscal years before the grant date. The above indexes of net profit growth rate
and return on equity are calculated based on the net profit after deducting non-recurring
profits and losses. The net profits and net assets each year refer to the net profits attributable
to shareholders of listed companies and net assets attributable to shareholders of listed
companies. If the Company conducts public offering or non-public offering and other
behaviors affecting the Company’s net assets, the newly increased net assets and the net
profits generated from such net assets shall not be subject to the assessment calculation of
the year and the next year. In case of capital surplus transfer to capital stock, distribution of
stock dividends, stock split or drawing back, stock allotment or dividend distribution of the
Company in the period from the announcement date of the plan to completion of the restricted
stock registration by the incentive object, the grant price and quantity of the restricted stocks
will be adjusted accordingly.
On January 4, 2016, the Company’s 12th meeting of the third Board of Directors reviewed and
adopted the Proposal on Granting Reserved Restricted Stocks to Incentive Objects. On January 4,
2016, 645,000 reserved restricted stocks were granted to 29 incentive objects, at the grant price of
21.25 yuan per stock.
In this equity incentive plan, the fair value on the grant date was recognized in stages as the
administrative expenses for each year according to the unlocking ratio during the waiting period,
where, the administrative expenses were 109,500 yuan from January to June 2019.
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
2. Equity-settled share -based payments
□ Applicable √ Not applicable
3. Share-based payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of share-based payment
5. Other
XIV. Commitment and contingencies
1. Important commitment issues
Important commitments on balance sheet date
1. Major commitment issue s
The Company had no major commitment issues to be disclosed as of June 30, 2019.
2. Contingencie s
The Company had no other significant contingencies to be disclosed as of June 30, 2019.
2. Contingencies
(1) Important contingencies on balance sheet date
The Company had no post-balance sheet events to be disclosed as of June 30, 2019.
(2) Explanation even if the Company has no important contingencies to be disclosed
The Company has no important contingencies to be disclosed.
3. Other
XV. Notes on main items of parent company's financial statement
1. Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: yuan
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Ending balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
debt debt
Category Book
Accruin Book value
value Accruing
Proporti g Proporti
Amount Amount Amount Amount proportio
on proporti on
n
on
Where:
Accounts receivable
483,696 100.00 26,511, 457,184, 461,115, 23,113,0 438,002,3
of provision for bad 5.48% 100.00% 5.01%
,102.62 % 542.37 560.25 475.92 83.26 92.66
debt by combination
Where:
460,276 26,511, 433,765, 409,499 23,113,0 386,386,4
Aging combination 95.16% 5.76% 88.81% 5.64%
,971.62 542.37 429.25 ,536.92 83.26 53.66
Accounts from related
23,419, 23,419,1 51,615, 51,615,93
parties in the 4.84% 11.19%
131.00 31.00 939.00 9.00
consolidation scope
483,696 100.00 26,511, 457,184, 461,115, 23,113,0 438,002,3
Total 5.48% 100.00% 5.01%
,102.62 % 542.37 560.25 475.92 83.26 92.66
1) Receivables with provision for bad debt provision withdrawn by employing aging analysis
Unit: yuan
Ending balance
Name
Book balance Provision f or bad debt Accruing proport ion
Wit hin 1 year 430, 598, 216. 00 21, 529, 910. 80 5. 00%
1~2 years 22, 964, 703. 57 2, 296, 470. 36 10. 00%
2~3 years 3, 891, 870. 70 778, 374. 14 20. 00%
3~4 years 1, 792, 623. 19 896, 311. 59 50. 00%
4~5 years 95, 413. 40 76, 330. 72 80. 00%
More t han 5 years 934, 144. 76 934, 144. 76 100. 00%
Tot al 460, 276, 971. 62 26, 511, 542. 37 --
2) Disclosure by aging
Unit: yuan
Aging Ending balance
Wit hin 1 year (including 1 year) 432, 487, 436. 20
1~2 years 20, 668, 233. 21
2~3 years 3, 113, 496. 56
More t han 3 years 915, 394. 28
3~4 years 896, 311. 60
4~5 years 19, 082. 68
Tot al 457, 184, 560. 25
(2) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
The amount of provision for bad debts was 3,398,459.11 yuan and the amount of provision for bad
debts recovered or reversed was 0.00 yuan in the current period.
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
(3) Accounts receivable with top 5 ending balances by debtor
The total amount of accounts receivable with top 5 ending balances by debtor in the current period
was 269,822,786.64 yuan, accounting for 55.78% of the total ending balance of accounts
receivable. The total amount of ending balance of bad debt provision withdrawn accordingly was
13,683,232.06 yuan.
2. Other receivables
Unit: yuan
Item Ending balance Beginning balance
Ot her receiv ables 66, 587, 170. 91 64, 301, 240. 95
Tot al 66, 587, 170. 91 64, 301, 240. 95
1) Other receivables classified by nature
Unit: yuan
Nat ure of payment Ending book balance Beginning book balance
Collection by t hird part y 29, 739, 414. 77 30, 291, 539. 08
Deposit and margin 30, 438, 085. 65 29, 692, 522. 35
Associat ed cont act 4, 064, 000. 00 4, 064, 000. 00
Imprest 7, 164, 851. 45 1, 239, 473. 08
Wit hheld amount 4, 213, 981. 30 2, 232, 820. 64
Ot her 410, 173. 41 5, 986, 841. 54
Tot al 76, 030, 506. 58 73, 507, 196. 69
2) Disclosure by aging
Unit: yuan
Aging Ending balance
Wit hin 1 year (including 1 year) 48, 269, 430. 16
1~2 years 17, 307, 526. 04
2~3 years 684, 532. 48
More t han 3 years 325, 682. 22
3~4 years 265, 524. 23
4~5 years 60, 157. 99
Tot al 66, 587, 170. 90
3) Provision, recovery or re versal of bad debt reserves in the current period
Provision for bad debts in current period:
The amount of provision for bad debts was 237,379.94 yuan and the amount of provision for bad debts
recovered or reversed was 0.00 yuan in the current period.
5) Other accounts receivable with top 5 ending balances by debtor
Unit: yuan
Proportion in total
Ending balance of
Unit name Nature of payment Ending balance Aging other ending balance
bad debt provision
receivable
Alipay (China) Network Collection by third
29,739,414.77 Within 1 year 39.12% 1,486,970.74
Technology Co., Ltd. party
Management Margin and deposit 14,778,000.00 1-2 years 19.44% 1,477,800.00
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Committee of
Hangzhou Yuhang
Economic and
Technical
Development Zone
Dize Home Appliance
Trading (Shanghai) Other 4,064,000.00 More than 5 years 5.35% 4,064,000.00
Co., Ltd.
Hangzhou Maishang
Margin and deposit 3,000,000.00 Within 1 year 3.95% 150,000.00
Technology Co., Ltd.
Liang Xiaoming Imprest 2,577,682.68 Within 1 year 3.39% 128,884.13
Total -- 54,159,097.45 -- 71.23% 7,307,654.87
3. Long-term equity investment
Unit: yuan
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in
246,905,933.73 20,400,000.00 226,505,933.73 242,391,037.48 20,400,000.00 221,991,037.48
subsidiaries
Investment in
associated
enterprises 2,687,049.11 2,687,049.11 2,617,851.16 2,617,851.16
and joint
enterprises
Total 249,592,982.84 20,400,000.00 229,192,982.84 245,008,888.64 20,400,000.00 224,608,888.64
(1) Investment in subsidiaries
Unit: yuan
Increase or decrease in current period Balance of
Beginning balance Ending balance impairment
Invested unit Further Capital Provision for
(book value) Others (book value) provision at the
investment reduction impairment end of period
Shengzhou
Kinde
Intelligent 162,320,000.00 162,320,000.00
Kitchen Electric
Co., Ltd.
Hangzhou
Mingqi Electric 51,892,142.06 9,638.75 51,901,780.81
Co., Ltd.
Dize Home
Appliance
Trading 625,642.50 5,257.50 630,900.00 20,400,000.00
(Shanghai)
Co., Ltd.
Shanghai
Robam Electric
5,838,272.10 5,838,272.10
Appliance
Sales Co., Ltd.
Beijing Robam
Electric
1,314,980.82 4,500,000.00 5,814,980.82
Appliance
Sales Co., Ltd.
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Total 221,991,037.48 4,514,896.25 226,505,933.73 20,400,000.00
(2) Investment in associated enterprises and joint enterprises
Unit: yuan
Increase or decrease in current period
Investment Balance of
Beginning gains and Declared Ending impairment
Invested Adjustment of
balance losses Changes payment Provision balance provision at
entity Further Capital other
(book value) investment reduction recognized comprehensive in other of cash for Others (book value) the end of
by the equity dividends impairment period
income
equity or profits
method
I. Cooperative enterprise
De Dietrich
Trade
2,617,851.16 69,197.95 2,687,049.11
(Shanghai)
Co., Ltd.
Subtotal 2,617,851.16 69,197.95 2,687,049.11
II. Joint venture
Total 2,617,851.16 69,197.95 2,687,049.11
(3) Other description
4. Operating income and operating cost
Unit: yuan
Amount incurred in current period Amount incurred in previous period
Item
Income Cost Income Cost
Main business 3, 187, 683, 518. 21 1, 477, 699, 188. 18 3, 195, 476, 651. 47 1, 528, 626, 555. 40
Ot her businesses 72, 109, 808. 46 29, 798, 963. 74 96, 407, 438. 65 43, 031, 202. 71
Tot al 3, 259, 793, 326. 67 1, 507, 498, 151. 92 3, 291, 884, 090. 12 1, 571, 657, 758. 11
5. Investment income
Unit: yuan
Amount incurred in current Amount incurred in
Item
period previous period
Invest ment income from purchasing financial pro ducts 36, 895, 138. 71 32, 787, 830. 58
Invest ment income from available-f or-sale f inancial assets during t he 7, 326, 845. 00
holding period
Invest ment income from disposal of available -f or-sale financial asset s
Long-t erm equity invest ment gains measured by employing t he equity
69, 197. 95 655, 604. 04
met hod
Tot al 36, 964, 336. 66 40, 770, 279. 62
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
6. Other
XVI. Further information
1. Current non-recurring gain and loss statement
√ Applicable □ Not applicable
Unit: yuan
Item Amount Description
Profit and loss on disposal of non-current
-1, 171, 725. 00
assets
Government subsidies included int o t he
current prof its and losses, except t hose
government subsidies, which are closely
58, 069, 181. 84
relat ed t o t he business of a company and
enjoyed in accordance wit h a cert ain
standard quot a or quant ity of t he stat e
Profits and losses f rom invest ment or
2, 894, 637. 83
management assets ent rust ed t o ot hers
Income and expendit ure ot her t han t hose
-1, 328, 772. 96
mentioned above
Less: Amount aff ect ed by income t ax 9, 538, 352. 16
Amount of minority shareholders'
1, 060, 554. 36
equit y aff ect ed
Tot al 47, 864, 415. 19 --
Explain the non-recurrent profit and loss items defined by the Company according to the Interpretative Announcement No.
1 on Information Disclosure of Pub lic Securities Issuing Companies - Non-recurrent Profits and Losses and defined from
the non-recurrent profit and loss items enumerated in the Interpretative Announcement No. 1 on Information Disclosure of
Pub lic Securities Issuing Companies - Non-recurrent Profits and Losses.
□ Applicable √ Not applicable
2. Return on net assets and earnings per share
Earni ngs Per Shar e
Weighted av er age r etur n on net
Reporting pr ofit Basic EPS Diluted EPS
assets
(yuan/s hare) (yuan/s hare)
Net profit attri butable to
common s hareholders of the 10.51% 0.71 0.71
company
Net profit attri butable to
common s hareholders of the
company after deduction of 9.76% 0.66 0.66
non-r ecurri ng pr ofits and
losses
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Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report
Section 11: Reference file directory
I. Financial statements containing signatures of the legal repr esentative, the head of accounting
work, and the head of accounting body with seals.
II. Original copies of the documents and announcement of the company published on the newspaper
designated by the CSRC in the reporting period.
III. 2019 semiannual report of the company signed by the legal representative.
IV. Other relevant information.
V. Reference files kept at: board office.
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