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老板电器:2019年半年度报告(英文版)2019-09-03  

						                                   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.




                                            1
                                                                  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




                                                                            2
                                       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.




                                              3
                                                       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


                                                               4
                                                   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

                                                               12
                                                       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%

                                                                         16
                                 Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report


X.   Risks faced by the company and countermeasures




                                       17
                                                            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.


                                                                       53
                                                   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

                                                            54
                                                    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.

                                                      56
                                                       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


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                                                     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

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                                                       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


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                                                       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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                                                       Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report


      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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                                                      Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report


      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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                                                       Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report


                                                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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                                                     Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report


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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      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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                                                     Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report


      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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                                                      Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report


      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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      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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                                                     Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report


      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


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                                               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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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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 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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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



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      (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

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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




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(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


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 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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(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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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

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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



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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


                                                          109
                                                                   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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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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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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                                                                     Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report


          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



                                                                        116
                                                                               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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                                                      Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report


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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                                                               Hangzhou Robam Appliances Co., Ltd. 2019 Full Semiannual Report


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

                                                                        127
                                                                     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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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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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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