Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Hangzhou Robam Appliances Co., Ltd.
2020 Full Annual Report
April 2021
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Section 1 Important Notes, Contents and Definitions
The board of directors, the board of supervisors and directors, supervisors and senior management of the
Company hereby guarantee that no false or misleading statement or major omission was made to the
materials in this report and that they will assume all the responsibility, individually and jointly, for the
authenticity, accuracy and completeness of the contents of the annual report.
Ren Jianhua, the head of the Company, Zhang Guofu, the head of accounting work, and Zhang Guofu, the
head of accounting body (accountant in charge), guarantee the authenticity, accuracy and completeness of
the financial report in the annual report.
All the directors attended the board meeting during which they reviewed this report.
The Company has risks such as fluctuations in the real estate market, price fluctuations of raw materials
and intensifying market competition. Please pay attention to the investment risks.
The preplanned profit distribution deliberated and approved by the board of directors is as follows: based
on the total share capital of 949,024,050.00 shares, the Company will send cash dividends of 5 yuan (tax
inclusive) and 0 bonus share (tax inclusive) to all shareholders for every 10 shares, and instead of
converting capital reserve into share capital.
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Contents
Section 1 Important Notes, Contents and Definitions .................................................................... 1
Section 2 Company Profile and Main Financial Indicators ........................................................... 2
Section 3 Business Summary ............................................................................................................. 6
Section 4 Discussion and Analysis on Business Conditions .......................................................... 10
Section 5 Important Matters ........................................................................................................... 26
Section 6 Changes in Shares and Shareholders ............................................................................. 35
Section 7 Preferred Shares .............................................................................................................. 41
Section 8 Convertible Bonds ........................................................................................................... 42
Section 9 Directors, Supervisors, Senior Management and Employees ...................................... 43
Section 10 Corporate Governance .................................................................................................. 54
Section 11 Corporate Bonds ............................................................................................................ 61
Section 12: Financial Report ........................................................................................................... 62
Section 13: Reference file directory .............................................................................................. 178
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Definitions
Terms Refers to Definition
The Company, company, Robam Appliances 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 Appliances, Mingqi, Beijing ROBAM Electric
The Group Refers to Appliance Sales Co., 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 Year 2020
AVC Refers to Beijing All View Cloud Data Technology Co., Ltd.
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Section 2 Company Profile and Main Financial Indicators
I. Company Profile
Stock abbreviation Robam Stock code 002508
Stock exchange for stock listing Shenzhen Stock Exchange
Company name in Chinese Hangzhou Robam Appliances Co., Ltd.
Chinese abbreviation of the Company HANGZHOU ROBAM APPLIANCES CO.,LTD.
Company name in foreign language (if any) ROBAM
Legal Representative of the Company Ren Jianhua
Registered address No. 592 Linping Av., Yuhang Economic Development Zone, Hangzhou, China
Postal code of the registered address 311100
Office address No. 592 Linping Av., Yuhang Economic Development Zone, Hangzhou, China
Postal code of the office address 311100
Company website http://www.robam.com/
E-mail robam@robam.com
II. Contact Person and Contact Information
Secretary of the Board Representative on Securities Matters
Name Wang Gang Jiang Yu
No. 592 Linping Av., Yuhang
No. 592 Linping Av., Yuhang Economic
Contact address: Economic Development Zone,
Development Zone, Hangzhou, China
Hangzhou, China
Tel 0571-86187810 0571-86187810
Fax 0571-86187769 0571-86187769
E-mail wg@robam.com jy@robam.com
III. Information Disclosure and Place of Preparation
Name of media selected by the Company for Securities Times, China Securities Journal, Securities Daily,Shanghai Securities
information disclosure News
URL of Website designated by China
Securities Regulatory Commission for annual http://www.cninfo.com.cn
report
Place of preparation of the Company’s annual Board office
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
report
IV. Registration Changes
Organization code 725252053
Changes in main business since the Company's listing (if any) No changes
Changes of controlling shareholders (if any) No changes
V. Other Relevant Information
Accounting firm engaged by the Company
Name of the accounting firm Shinewing Certified Public Accountants (special general partnership)
9/F, Block A, Fuhua Mansion, No.8 Chaoyangmen North Street, Dongcheng
Office address of the accounting firm
District, Beijing
Name of signatory accountant Lei Yongxin, Wang Qing
The sponsor institution engaged by the Company to perform the continuous supervision responsibility during the reporting period
□ Applicable √ Not applicable
The financial advisor engaged by the Company to perform the continuous supervision responsibility during the reporting period
□ Applicable √ Not applicable
VI. Major Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of the previous years
□ Yes √ No
Increase/decrease
this year
2020 2019 2018
compared to the
previous year
7,424,885,274.
Operating income (yuan) 8,128,620,799.31 7,760,581,855.53 4.74%
14
Net profits attributable to shareholders of 1,473,579,665.
1,660,749,958.89 1,589,814,847.80 4.46%
listed companies (yuan) 62
Net profits attributable to shareholders of
1,390,626,550.
the listed company after deduction of 1,584,584,566.83 1,516,979,830.78 4.46%
21
non-recurring profits and losses (yuan)
Net cash flow from operating activities 1,508,960,311.
1,537,299,958.71 1,555,220,926.90 -1.15%
(yuan) 29
Basic EPS (yuan/share) 1.75 1.68 4.17% 1.55
Diluted EPS (yuan/share) 1.75 1.68 4.17% 1.55
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Decreased by
Weighted average return on net assets 22.39% 25.10% 26.40%
2.71%
Increase/decrease
at the end of this
End of 2020 End of 2019 year compared to End of 2018
the end of the
previous year
9,455,361,508.
Total assets (yuan) 12,457,568,276.25 10,651,922,572.87 16.95%
83
Net assets attributable to shareholders of 6,045,384,387.
8,050,626,815.35 6,864,388,881.46 17.28%
listed companies (yuan) 57
VII. Accounting data difference under domestic and foreign accounting standards
1. Differences between net profits and net assets in financial statements disclosed according to the
International Accounting Standards (IAS) and Chinese Accounting Standards simultaneously
□ Applicable √ Not applicable
No difference between net profits and net assets in financial statements disclosed according to the International Accounting Standards
(IAS) and Chinese Accounting Standards during the reporting period.
2. Differences between net profits and net assets in financial statements disclosed according to the
Overseas Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable √ Not applicable
No difference between net profits and net assets in financial statements disclosed according to the Overseas Accounting Standards
and Chinese Accounting Standards during the reporting period.
VIII. Key Quarterly Financial Indicators
Unit: yuan
First quarter Second quarter Third quarter Fourth quarter
Operating income 1,265,689,550.31 1,945,482,785.48 2,415,077,732.21 2,502,370,731.31
Net profits attributable to
245,010,424.02 367,306,825.27 510,521,854.21 537,910,855.39
shareholders of listed companies
Net profits attributable to
shareholders of the listed company
189,293,064.42 362,027,367.63 505,555,890.56 527,708,244.22
after deduction of non-recurring
profits and losses
Net cash flow from operating
-244,718,331.36 652,405,464.92 533,264,051.72 596,348,773.43
activities
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Whether there is significant difference between the above financial indicators or the total sum of them and the financial indicators
related to the quarterly report and semiannual report disclosed by the Company
□ Yes √ No
IX. Non-recurring Profit and Loss Items and Amount
√Applicable □ Not applicable
Unit: yuan
Item Amount in 2020 Amount in 2019 Amount in 2018
Profits and losses on the disposal of non-current assets
(including the write-off part of the provision for asset -422,706.54 -158,607.19 -27,525.06
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 in 91,184,657.20 88,113,806.09 98,235,805.08
accordance with a certain standard quota or quantity of the
state
Profits and losses from investment or management assets
285,386.29
entrusted to others
Income and expenditure other than those mentioned above -2,965,479.76 -1,884,306.56 1,916,399.82
Less: Amount affected by income tax 11,202,215.16 13,290,725.11 17,276,844.91
Amount of minority shareholders' equity affected (after
428,863.68 -54,849.79 180,105.81
tax)
Total 76,165,392.06 72,835,017.02 82,953,115.41
Explain the non-recurrent profit and loss items defined by the Company according to the Interpretative Announcement No. 1 on
Information Disclosure of Public 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 Public
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 Public 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. 2020 Full Annual Report
Section 3 Business Summary
I. Main Business of the Company during Reporting Period
(I) Main business
Dedicated to creating a new quality kitchen for millions of families, the Company takes foot in the kitchen field
and focuses on the development, production, sales and comprehensive services of kitchen appliances, including
range hoods, gas hobs, sterilizer cabinets, steam ovens, ovens, steam oven-ovens, dishwashers, water purifiers,
water heaters, microwaves, integrated hobs and integrated sink. After more than 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. The Company has achieved the best sales of
range hoods in China for 23 years and the world for six consecutive years.
(II) Development Stage of Industry
According to the National Economic and Social Development Statistics Bulletin 2020 issued by the National
Bureau of statistics, by the end of 2020, the urbanization rate of the country's permanent population was more than
60%. According to the 14th Five-Year Plan and outline goal of 2035, the urbanization rate of the country's
permanent population during the 14th Five-Year Plan will reach 65%. It could be predicted that China's
urbanization rate would still achieve a rapid growth, and urbanization construction will shift to a stage of
high-quality development in the next few years Thanks to the increasing urbanization rate, there is still a huge
space in the kitchen appliance industry. Due to the influence of COVID-19 in 2020, the kitchen appliance industry
was impacted to some extent, but the long-term development trend was not changed. On the other hand, the stock
market demand gradually emerged, the new market and the stock market will jointly support the future
development of kitchen industry.
According to the data from AVC, in 2020, the annual retail volume of range hoods was 22.83 million, representing
a year-on-year decrease of 7.6%, and the amount of retail sales was 31.95 billion yuan, representing a
year-on-year decrease of 9.3%. The retail volume of gas hobs was 28.039 million units, representing a
year-on-year decrease of 8.1%, and the amount of retail sales was 18.84 billion yuan, representing a year-on-year
decrease of 5.9%. The retail volume of steam oven-oven was 12.63 million units, representing a year-on-year
increase of 12.3%, and the amount of retail sales was 7.17 billion yuan, representing a year-on-year increase of
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
11.2%. The retail volume of dishwasher was 1.919 million units, representing a significant year-on-year increase
of 31.0%, and the amount of retail sales was 8.70 billion yuan, representing a year-on-year increase of 25.3%. The
retail volume of sterilizer cabinet was 5.598 million units, representing a year-on-year increase of 4.3%. In the
meantime, the uncertainty of kitchen appliance industry is increased, which is reflected on brand. The revenue and
growth rate begin to differentiate. Brand concentration degree is promoted further and Matthew effect highlights.
Affected by various factors, such as epidemic situation, rising cost of raw materials, industry shuffling accelerated.
According to online and offline monitoring data of AVC, there were 339 online market brands in 2020,
representing a year-on-year decrease of 78, and 202 offline market brands, representing a year-on-year decrease of
15.
From the perspective of category development, in addition to the continuous innovation of traditional categories
of products such as range hood and gas hob, the steam oven-oven and dishwasher also ushered in rapid growth.
The improvement of kitchen life experience is still the unremitting pursuit of the whole industry, and the future
kitchen appliance market is still the most promising market in the whole home appliance industry. The evolution
and innovation of kitchen appliance products is accelerating, especially under the influence of epidemic, health,
intelligence, integration and scene have become the key words of product development, which are mainly
manifested in three aspects: 1. The single product’s iteration is accelerated, and the product form turns to diversity
and stronger function; 2. The whole kitchen solution, represented by series and whole kitchen, is heating up. 3.
The health related products, represented by the dishwasher, sterilizer cabinet, built-in steam oven-oven, sell well.
In the short term, integrated technology products will focus on solving the contradiction between people's demand
for the expansion of kitchen appliances and kitchen space. Integrated products have been more and more
recognized by consumers. In the long run, artificial intelligence, Internet of Things and other technologies will
lead the upgrade of intelligent products and the transformation of kitchen appliance industry.
II. Significant Changes in Prime Assets
1. Significant Changes in Prime Assets
Prime assets Significant changes
Equity assets No significant change during the reporting period
Fixed assets No significant change during the reporting period
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Intangible assets No significant change during the reporting period
The construction in progress increased by 70.24% year on year in the reporting period, which was
Construction in progress mainly caused by the increased infrastructure investment in Maoshan Intelligent Manufacturing
Park in the current year.
2. Major overseas assets
□ Applicable √ Not applicable
III. Analysis of Core Competitiveness
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, continuous innovative research
and development capacity, comprehensive and efficient operation capacity.
1. Brand capability of high-end positioning
ROBAM, founded in 1988, has established a significant brand advantage in the kitchen appliance industry. Since
1991, ROBAM range hood has won the only "Quality Silver Award of the People's Republic of China", "China
Famous-brand Product", "National Inspection-free Product" in the kitchen appliance industry; ROBAM has been
recognized as "China Famous Brand"; ROBAM has won "Most Influential Brand in China's Kitchen Appliance
Industry" and "China's 500 Most Valuable Brands". After more than 40 years of efforts, it continues to deepen the
positioning of "big suction" and create high-end brand experience. "Big suction" has become the synonym of
"high-end range hood", and the ROBAM has become one of the most famous and favorite professional high-end
kitchen appliance brands in China. In 2015, ROBAM represented China's high-end manufacturing and landed at
Milan Expo, and in 2016, it landed at IFA exhibition in Germany, which improved the ROBAM's high-end image
and international influence. In 2018, Robam Appliances put forward a new brand concept, that is, to "create
China’s new kitchen." According to the survey data released by Euromonitor International, the world's
authoritative market research organization, Robam Appliances’ range hood won the first market share of global
range hood private brand market for six consecutive years from 2015 to 2020. In 2020, Robam has been rated as
one of the "BrandZ Top 100 Most Valuable Chinese Brands" for 7 consecutive years, and ranks first in the kitchen
appliance industry with a brand value of $948 million. In addition, Robam has been awarded the "Top 500 Asian
Brands" for 15 consecutive years.
2. R & D capability of continuous innovation
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
The mission of the Company is to render happiness of kitchen life for more families, by improving the existing
cooking environment based on continuous research on technology to bring healthy and relaxed cooking life to
users with cooking fun. For this reason, the Company adheres to the principle of "product leading" and constantly
pursues "technology leading". The Company now has a national technology center, a national laboratory, a
national industrial design center, California institute of innovation, Shenzhen innovation research institute and
academician workstation of Tsinghua University. At present, the research and development team has more than 700 members
and has led the establishment of several important industry standards. The R&D investment has been continuously increased year on
year. In 2020, the Company applied for 744 patents, including 161 invention patents, and 418 authorized patents, including 14
invention patents. From the hardware side, the Company upholds the craftsman spirit of excellence, promotes the comprehensive
multi-dimensional improvement of first, second and third category; As for the software side, the Company explores the development
of AI-IoT intelligent IOT platform, focuses on the application of AI intelligent cooking curve, to improves the soft power of kitchen
appliances.
3. Comprehensive and efficient operation capability
The Company has the leading marketing capability in the industry: the Company adopts the only agency
marketing mode in the industry, and creates the most comprehensive, efficient and responsive marketing system in
the industry through strong management and control, equity incentive and the de facto business partner system. It
deepens intelligent manufacturing, lean operation and technology driven, and comprehensively builds the
industry's first supply chain system. It looks at global manufacturing and becomes a first-class manufacturing
benchmark in China. In addition, informatization, as the subject of the Company's promotion of "in-depth
integration of informatization and industrialization", focuses on the interactive innovation and continuous
optimization of data, technology, business process and organizational structure, constantly creates new capabilities
in the informatization environment, and improves the sustainable competitiveness in the domestic and foreign
markets.
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Section 4 Discussion and Analysis on Business Conditions
I. Overview
In 2020, the kitchen appliance industry was greatly affected by COVID-19 in the first half of the year and recovered
significantly in the second half of the year. At the same time, the performance of various channels was significantly
differentiated. In terms of retail channel, due to the limited offline consumption caused by epidemic, retail sales
decreased significantly, according to the monthly data report of offline retail market monitoring of All View (hereinafter
referred to as "All View offline report"), the retail sales of main categories of kitchen appliances, such as range hoods
and gas hobs, decreased by 16.7% and 18.1% respectively compared with the same period of last year, which have
declined by a large proportion for three consecutive years. In terms of e-commerce channel, due to the obvious
improvement of consumers' online shopping intentions, sales in e-commerce channel showed an upward overall trend,
according to the monthly data report of online retail market monitoring of All View (hereinafter referred to as "All View
online report"), the retail sales of kitchen appliance packages increased by 9.1% compared with the same period of last
year. In terms of engineering channel, according to the 2020 annual report on kitchen appliance products in China's real
estate refined decoration market (hereinafter referred to as "All View refined decoration report"), the market of refined
decoration kitchen appliances in 2020 decreased by 0.2% year on year, showing a stable overall trend.
The Company, as the industry leader, closely focused on the annual business philosophy of "practice internal skills and
go through the period, strive for progress in stability and promote growth - strengthen products, seize the market", and
paid close attention to COVID-19 prevention and control and actively promoted the iteration of products of various
categories and groups, to continuously increase the market share. In 2020, the Company realized an operating
revenue of 8.129 billion yuan, with a year-on-year growth of 4.74%, and realized a net profit attributable to the
parent company of 1.661 billion yuan, with a year-on-year increase of 4.46%, which are obviously better than
the industry average.
According to the All View offline report, as of December 31, 2020, the market share and market position of the offline
retail sales of Company's major product categories are shown in the following table:
Range hood Gas hobs Sterilizer cabinet Built-in electrical Built-in steam Built-in electric oven Built-in dishwasher
steam oven oven-oven
28.30% 25.80% 21.20% 24.50% 31.50% 34.10% 9.60%
1 1 2 1 2 2 4
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
According to the All View online report, as of December 31, 2020, the market share and market position of the online
retail sales of Company's major product categories are shown in the following table:
Kitchen appliance Two sets of Range hood Gas hobs Built-in electrical Built-in steam Built-in sterilizer Built-in
packages smoke cooker steam oven oven-oven cabinet dishwasher
28.00% 28.80% 16.00% 8.5% 21.5% 11.40% 10.10% 4.3%
1 1 3 4 2 3 3 5
According to the All View refined decoration report, as of December 31, 2020, the market share of ROBAM in refined
decoration channel was 35.0%, ranking first in the industry.
In 2020, the technology sector has made remarkable achievements in new product development, talent training,
technology patents, standard formulation and other aspects. With the persistence of the craftsman spirit, we have
harvested technology-driven achievements. Through project management, product management, quality management,
the Company promoted the multi-dimensional improvement of product hardware performance, appearance form and
user experience and other multi-dimensional improvement, launched the industry innovation product double-cavity
range hood 8235S; new steam oven-oven CQ975 with extreme performance; dishwasher 775A and 776X which are
more suitable for Chinese cooking cleaning. Integrated range hood 5908S+90B8Z, dual chamber oven RQ035 and
dishwasher W735 won AWE2020 Appleland Excellent Product Award. At the same time, the Company explored the
development of AI-IoT intelligent Internet of Things platform, focused on the application of AI intelligent cooking
curve, to enhance the soft power of kitchen electricity products. In addition, the Company continually introduced
high-level technical personnel and implemented delicacy management, to improve the construction of technical
personnel echelon. The Company paid attention to the quality and efficiency of R&D, continuously optimizes the
product development cycle and improves the success rate of product launch, and reserves core technologies for
intelligence and integration. In 2020, the Company applied for 744 patents, including 161 invention patents, and 418
authorized patents, including 14 invention patents. In addition, the Company led the development of 7 standards,
including 2 industry standards, 4 group standards, 1 Zhejiang manufacturing standard, and participated in the
development of 16 standards. The R&D innovation ability has been recognized by the industry, won the Science and
Technology Award of China National Light Industry Council, Science and Technology Progress Award of Zhejiang
Province, Second Prize for Quality Technology Award of China Quality Association.
In 2020, the marketing sector adhered to the high-end positioning of the brand, took consumers as the starting point and
products as the starting point, continued to promote the transformation from channel-driven to product-driven, built
product matrix and coordinate channel resources. In terms of retail channel, the Company focused on the sales strategy
of " Robam Four-piece suit", which is a set of series products. The matching rate of second and third product groups
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
increased rapidly. The Company further optimized KA layout and flat store system construction to improve operational
efficiency. In terms of e-commerce channel, the Company centered on the idea of "deep category operation,
reconstructing user value and strengthening brand building", gave full play to the advantages of the first product group,
empowered the growth of the second and third product groups, and excavated the stock value to improve the operational
efficiency. In terms of project channels, the Company enriched customer echelon, optimized customer structure,
adjusted product structure, gradually improved the permeability of each category, and further promoted central range
hood CCS. In terms of innovate channel, the Company cooperated with industry leading company of whole house
customization companies and home decoration companies to carry out comprehensive cooperation, directing to the front
of consumption, and contributing to the rapid promotion of new and old categories. In terms of overseas channel, the
Company actively responded to the great challenges brought by the pandemic, strengthened the positioning of "global
high-end kitchen leader", steadily advanced the brand internationalization process, and gradually expanded the global
influence of the brand.
In 2020, the production sector deepened intelligent manufacturing with the carrier of automation and information, fully
realized online digitization, becoming one of the manufacturing benchmarks with the strongest comprehensive
competitiveness in China's manufacturing industry. In terms of supply chain, the Company continued to improve the
whole process of efficient logistics system and supplier ecosystem construction, to achieve procurement cost reduction
and accurate delivery; In terms of manufacturing capacity, the Company took value-driven as the main line and
strengthened lean manufacturing system management, realizing efficient operation of the whole value chain and strove
for building an intelligent benchmark factory in the industry; In terms of new product development ability, through the
linkage of new product supply chain, the Company shorten the development cycle to ensure the timely delivery of new
products; In terms of organization and operation, the Company emphasized the company culture, and organize the
construction of a talent system. With the theme of "future cooking, digital intelligent manufacturing", Jiutian center
digital platform and zero point manufacturing of Robam appliance were successfully released, marking the official use
of unmanned factory. From building of the industry model of replacing people with machine in 2012, to building of the
industry's first digital intelligent manufacturing base in 2015, then to building of the industry's first unmanned factory in
November 2020, the Company has experienced a gradual transition from local machine replacement to in-deepth
integration of "informatization and industrialization". It has been successively selected into the "2016 Intelligent
Manufacturing Pilot Demonstration Project", "2018 Manufacturing and Internet Integration Development Pilot
Demonstration Project" and the first batch of "Future Factory" in Zhejiang Province. Moreover, Maoshan Intelligent
Manufacturing Park project of the Company was also constructed smoothly. After completion, it would promote the
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
iterative upgrading of products and intelligent upgrading of manufacturing and lay a solid foundation for the Company's
long-term development.
In 2020, based on the concept of "creating a new Chinese kitchen", the Company carries out brand system construction
from multiple dimensions such as products, channels and activities, so as to build the No. 1 brand of high-end kitchen
appliances in China that understands Chinese cooking best. From product perspective, relying on "stronger performance,
better space, more functions "as the hardware threshold, with the world's largest Chinese cooking AI curve database as
software support, the Company devoted itself to creating the brand potential energy of "China's new kitchen, Robam
four-piece suit". From channel perspective, the Company relied on multiple channels work together to promote brand
building. The new visual image of offline stores was fully covered, and the electronic scene application manual 2.0
version of online stores was newly launched. The brand terminal image was strengthened. From the activity perspective,
the Company successfully held the " conference on the consumption trends of new kitchen in China and conference on
launch of new Chinese cuisine product of Robam" and issued the White Paper on China's new kitchen (2020 version),
aiming to set up standards of China's new kitchen and explore consumption trends of new kitchen in China through the
study on Chinese families and Chinese cooking way. At the same time, the Company successfully held China
Dishwasher Festival and carried out theme activities such as Family Feast, Yearning Kitchen Festival, Kitchen Carnival
Season and Comprehensive Cooking Day, etc. In addition, the Company served as the food creation officer of "
Yearning Life 4" and "Chinese Restaurant 4", interpreting Chinese cooking and delivering Chinese flavor; The
Company has also become the exclusive supplier of official kitchen appliances for the 2022 Asian Games in Hangzhou,
to support the publicity and promotion of the Games and to help the construction of the Asian Games.
In 2020, Mingqi Company focused on transformation and change, to improve the layout of kitchen products and meet
the diversified needs of users. The Company created a new retail model, integrated online and offline development, and
optimized the consumption experience. Kinde archived a reversal growth under the influence of COVID-19. The
development of intelligent integrated kitchen ecological industrialization project was progressing smoothly, after
completion, it would enhance the R&D and production capacity of integrated series products.
In 2020, the Company continued to be recognized by the capital market in terms of corporate governance, internal
management and shareholder returns, and won "Best Board of Directors in Small and Medium Enterprise Board", "Best
New Media Operation in Small and Medium Enterprise Board", "Best Investment Company Award", "Best Director
Secretary in Small and Medium Enterprise Board" in the 11th China listed company investor relations Tianma Award,
organized by Securities Times; The Company also gained "Top 50 Listed Enterprise in Small and Medium Enterprise
Board in Terms of Value", “Top 10 Best Management Team Among the Listed Enterprises in Small and Medium
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Enterprise Board” and “Outstanding Director Secretary in Listed Company for Information Disclosure” in 14th China
listed company value selection. The Company has been always adhered to kitchen domain, to support long-term value
investment.
II. Main business analysis
1. Overview
See “I. Overview” in “Discussion and Analysis of Operation”.
2. Revenue and Costs
(1) Operating income composition
Unit: yuan
2020 2019 Year-on-ye
ar
Proportion in Proportion in
Amount Amount increase/de
operating income operating income
crease
Total operating
8,128,620,799.31 100% 7,760,581,855.53 100% 4.74%
income
By industry
Home and kitchen &
7,950,757,663.78 97.81% 7,589,302,689.33 97.79% 4.76%
bath appliances
Other operating
177,863,135.53 2.19% 171,279,166.20 2.21% 3.84%
income
By product
First category:
Range hood 4,109,720,518.81 50.56% 4,081,545,017.88 52.59% 0.69%
Gas hobs 1,917,138,716.95 23.59% 1,843,440,109.62 23.75% 4.00%
Sterilizer cabinet 558,934,801.48 6.88% 560,848,048.70 7.23% -0.34%
Second Category:
Steam oven-oven 377,875,190.46 4.65% 127,740,642.01 1.65% 195.81%
steam oven 188,586,242.66 2.32% 245,373,245.51 3.16% -23.14%
Oven 118,200,187.42 1.45% 140,846,016.00 1.81% -16.08%
Third category:
Dishwasher 223,781,076.46 2.75% 138,025,125.30 1.78% 62.13%
14
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Water purifier 61,458,853.99 0.76% 77,528,039.72 1.00% -20.73%
Water heater 56,885,678.02 0.70% 42,644,066.19 0.55% 33.40%
Others:
Integrated hob 259,062,761.51 3.19% 211,906,015.61 2.73% 22.25%
Other small home
79,113,636.02 0.97% 119,406,362.79 1.54% -33.74%
appliances
Other operating
177,863,135.53 2.19% 171,279,166.20 2.21% 3.84%
income
By region
East China - main
3,660,037,066.87 45.03% 3,295,823,380.45 42.47% 11.05%
products
East China - other 177,863,135.53 2.19% 171,279,166.20 2.21% 3.84%
South China 1,166,738,209.66 14.35% 1,110,071,492.74 14.30% 5.10%
Central China 798,608,093.61 9.82% 808,538,868.51 10.42% -1.23%
North China 859,966,194.92 10.58% 906,014,918.04 11.67% -5.08%
Northeast China 417,632,137.86 5.14% 416,692,738.11 5.37% 0.23%
Northwest China 366,186,500.24 4.50% 390,575,627.50 5.03% -6.24%
Southeast China 644,756,608.57 7.93% 618,037,810.38 7.96% 4.32%
Overseas regions 36,832,852.05 0.45% 43,547,853.60 0.56% -15.42%
(2) Industries, products or regions that account for more than 10% of the Company's operating income or
profit
√Applicable □ Not applicable
Unit: yuan
Year-on-year Year-on-year Year-on-year
Gross
increase/decrea increase/decrea increase/decrea
Operating income Operating cost margin
se of operating se of operating se of gross
ratio
income cost margin ratio
By industry
Home and
3,563,206,930.8
kitchen & bath 8,128,620,799.31 56.16% 4.74% 0.41% 1.89%
7
appliances
By product
1,660,664,394.9
Range hood 4,109,720,518.81 59.59% 0.69% -2.03% 1.12%
8
Gas hobs 1,917,138,716.95 783,340,061.78 59.14% 4.00% -3.40% 3.13%
15
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
By region
1,548,939,686.7
East China 3,660,037,066.87 57.68% 11.05% 7.20% 1.52%
9
South China 1,166,738,209.66 546,692,231.16 53.14% 5.10% -3.37% 4.11%
North China 859,966,194.92 350,372,950.55 59.26% -5.08% -4.93% -0.07%
In the case that the statistical standards for main business data of the Company are adjusted during the reporting period, the main
business data of the Company in recent 1 year are subject to those after the adjustment of the statistical standards at the end of the
reporting period
□ Applicable √ Not applicable
(3) Whether the Company's physical sales revenue is greater than the service revenue
√ Yes □ No
Year-on-year
Industry category Item Unit 2020 2019
increase/decrease
Sales volume Unit 6,952,763 6,748,364 3.03%
Home and kitchen
Production output Unit 7,056,783 6,858,755 2.89%
& bath appliances
Inventory Unit 2,222,055 2,118,035 4.91%
Reasons for more than 30% year-on-year changes in the relevant data
□ Applicable √ Not applicable
(4) Performance of major sales contracts signed by the Company up to the reporting period
□ Applicable √ Not applicable
(5) Composition of operating cost
Industry and product categories
Unit: yuan
2020 2019
Industry Proportion in Year-on-year
Item Proportion in
category Amount Amount operating increase/decrease
operating cost
cost
Manufacturing 208,262,6
231,680,866.15 6.50% 5.87% 11.24%
costs 54.93
Home and
kitchen & 3,136,357,
Raw materials 3,112,334,458.17 87.35% 88.38% -0.77%
bath 317.10
appliances
204,157,7
Labor 219,191,606.55 6.15% 5.75% 7.36%
73.01
Unit: yuan
16
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
2020 2019
Year-on-year
Product Proportion
Item Proportion in increase/decrea
category Amount Amount in operating
operating cost se
cost
Manufacturin 122,148,958.89 3.44%
134,505,424.42 3.77% 10.12%
g costs
Range hood Raw 1,458,490,197.6 41.10%
1,407,036,579.61 39.49% -3.53%
materials 2
Labor 119,122,390.95 3.34% 114,502,871.76 3.23% 4.03%
Manufacturin 25,155,032.87 0.71%
23,134,151.04 0.65% -8.03%
g costs
Gas hobs
Raw 756,745,591.54 21.32%
730,332,351.14 20.50% -3.49%
materials
Labor 29,873,559.60 0.84% 28,998,831.19 0.82% 3.02%
Manufacturin 27,356,202.65 0.77%
28,084,404.21 0.79% 2.66%
Sterilizer g costs
cabinet Raw 291,482,100.97 8.21%
286,265,054.99 8.03% -1.79%
materials
Labor 25,979,428.66 0.73% 21,777,670.44 0.61% 19.29%
Manufacturin 33,602,460.52 0.95%
45,956,886.49 1.29% 36.77%
g costs
Other
Raw 629,639,426.97 17.74%
688,700,472.43 19.33% 9.38%
materials
Labor 44,216,227.34 1.24% 38,878,399.62 1.10% 13.73%
(6) Whether the consolidation scope changes in the reporting period
√ Yes □ No
On October 25, 2020, the Company's holding subsidiary Shengzhou Kinde and Gongqingcheng Binlan Investment
partnership (limited partnership) (hereinafter referred to as "Binlan Investment") signed a Project Cooperation
Agreement. The agreement stipulates that both parties jointly contribute to the establishment of Cooking Future
with registered capital of 50 million yuan, including 35 million yuan contributed by Shengzhou Kinde, accounting
for 70% of the equity, and 15 million yuan contributed by Binlan Investment, accounting for 30% of the equity.
There are 7 directors on the board of directors of Cooking Future, including 4 directors from Shengzhou Kinde
and 3 directors from Binglan Investment. The resolution of the board of directors must be approved by more than
half of the members of the board of directors, so Shengzhou Kinde controls Cooking Future. Cooking Future has
completed the industrial and commercial registration on November 16, 2020 and is currently in the preparation
17
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
period.
(7) Major changes or adjustments of business, products or services of the Company during the reporting
period
□ Applicable √ Not applicable
(8) Major sales customers and major suppliers
Major sales customers of the Company
Total sales amount of top five customers (yuan) 2,847,342,891.98
Proportion of total sales amount of top five customers in total
35.03%
annual sales
Among the sales amount of top five customers, proportion of sales
0.00%
amount of related parties in total annual sales
Top 5 customers of the Company
No. Customer name Sales amount (yuan) Proportion in total annual sales
1 Unit 1 1,087,165,863.15 13.37%
2 Unit 2 751,181,480.69 9.24%
3 Unit 3 377,455,306.57 4.64%
4 Unit 4 350,802,073.00 4.32%
5 Unit 5 280,738,168.57 3.45%
Total -- 2,847,342,891.98 35.03%
Major suppliers of the Company
Total purchase amount of top five suppliers (yuan) 764,506,651.81
Proportion of total purchase amount of top five suppliers in total annual purchase amount 20.96%
Among the purchase amount of top five suppliers, proportion of purchase amount of related
0.00%
parties in total annual purchase amount
Top 5 suppliers of the Company
Proportion in total annual purchase
No. Supplier name Purchase amount (yuan)
amount
1 Unit 1 179,827,450.62 4.93%
2 Unit 2 161,554,760.89 4.43%
3 Unit 3 151,051,714.02 4.14%
4 Unit 4 147,638,576.98 4.05%
5 Unit 5 124,434,149.30 3.41%
Total -- 764,506,651.81 20.96%
18
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
3. Cost
Unit: yuan
Year-on-year Description of major
2020 2019
increase/decrease changes
Selling expenses 2,146,965,048.87 1,928,259,172.35 11.34%
Management costs 296,985,763.24 284,364,115.17 4.44%
Financial expenses -150,148,186.75 -83,410,491.25 N/A
Research and
303,347,555.81 299,469,126.54 1.30%
development cost
4. R&D Investment
√Applicable □ Not applicable
In 2020, the Company’s R&D investment was 303 million yuan, representing an year-on-year increase of 1.30%.
At present, the Company has 742 R&D technicians, accounting for 16.09% of the total number of employees,
increased by 0.27% as compared with the same period of last year. The Company now has a national technology
center, a national laboratory and a national industrial design center. In addition, the Company also has California
Innovation Research Institute and Shenzhen Innovation Research Institute. The former focuses on collection of
cutting-edge technology, the latter focuses on basic research and application of new materials and new techniques.
In terms of product development, for mature categories such as range hoods and gas hobs, the main development
direction is to maintain the industry performance of the "highest point" and double cavity form of gas hobs leads
the industry innovation; For non-open fire cooking appliances such as steam oven-oven, the Company focused on
creating product differentiation features, enriching product lines, and realizing the ability of multi-dimensional
platform layout. At the same time, the Company would increase investment in dishwasher categories, focusing on
the researches on strong washing, drying, purification and other characteristic functions. In addition, the Company
would explore the development of AI-IoT intelligent IOT platform, focus on the application of AI intelligent cooking curve, to
enhance the soft power of kitchen appliances.
R & D investment of the Company
2020 2019 Proportion of change
Number of R & D personnel
742 714 3.92%
(person)
Proportion of R & D
16.09% 15.82% 0.27%
personnel
19
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
R & D investment amount
303,347,555.81 299,469,126.54 1.30%
(yuan)
Proportion of R & D
investment in operating 3.73% 3.86% -0.13%
revenue
Capitalized amount of R & D
0.00 0.00 0.00%
investment (yuan)
Proportion of capitalized R &
D investment in R & D 0.00% 0.00% 0.00%
investment
5. Cash flow
Unit: yuan
Year-on-year
Item 2020 2019
increase/decrease
Subtotal cash inflows from operating activities 8,399,284,005.14 8,178,723,903.78 2.70%
Subtotal cash outflows from operating activities 6,861,984,046.43 6,623,502,976.88 3.60%
Net cash flow from operating activities 1,537,299,958.71 1,555,220,926.90 -1.15%
Subtotal cash inflows from investment activities 1,649,618,287.44 4,021,202,772.82 -58.98%
Subtotal cash outflows from investment activities 2,867,289,864.56 2,965,663,320.83 -3.32%
Net cash flow from investment activities -1,217,671,577.12 1,055,539,451.99 -215.36%
Subtotal cash inflows from financing activities 12,726,177.30 / /
Subtotal cash outflows from financing activities 474,512,025.00 759,219,240.00 -37.50%
Net cash flow from financing activities -461,785,847.70 -759,219,240.00 /
Net increase of cash and cash equivalents -143,199,751.94 1,852,076,406.65 -107.73%
Description of main influencing factors of significant changes in relevant data on a year-on-year basis
Net cash flow from investment activities decreased by 215.36% as compared with that in the same period of previous year, which
was mainly caused by the increase of the amount purchased from bank wealth management products.
The cash outflow from financing activities decreased by 37.50% year on year, which was mainly caused by the reduction of the
dividend amount last year.
The net increase in cash and cash equivalents decreased by 107.73% from the previous year, which was mainly due to the decrease in
net cash flow from investment activities.
III. Non-main business analysis
□ Applicable √ Not applicable
20
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
IV. Analysis of assets and liabilities
1. Major changes in asset composition
Unit: yuan
End of 2020 At the beginning of 2020
Proportion Description of
Proportion in Proportion in
Amount Amount change major changes
total assets total assets
Monetary capital 3,921,052,700.31 31.48% 4,054,121,726.23 38.06% -6.58% -
Trading financial
2,352,000,000.00 18.88% 1,360,000,000.00 12.77% 6.11% -
assets
Accounts
1,008,235,946.40 8.09% 725,630,901.28 6.81% 1.28% -
receivable
Inventory 1,386,089,344.84 11.13% 1,339,176,925.20 12.57% -1.44% -
Investment
2,591,001.84 0.02% 112,588.34 0.00% 0.02% -
properties
Long-term equity
3,452,769.59 0.03% 4,168,338.79 0.04% -0.01% -
investment
Fixed assets 824,978,354.71 6.62% 826,234,929.97 7.76% -1.14% -
Construction in
463,424,647.46 3.72% 272,211,720.62 2.56% 1.16% -
progress
Accounts payable 1,723,832,208.09 13.84% 1,395,061,285.28 13.10% 0.74% -
2. Assets and liabilities measured at fair value
□ Applicable √ Not applicable
3. Limitation on the assets and rights as of the end of the reporting period
Other monetary capital at the end of 2020 was 35,034,898.78 yuan, including the L/C deposit of 33,394,968.71
yuan and deposit for bill acceptance of 1,561,218.04, which are limited funds.
V. Analysis of Investment
1. Overall situation
□ Applicable √ Not applicable
21
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
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 investment
(1) Securities investment
□ Applicable √ Not applicable
The Company had no securities investments in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company had no derivative investments in the reporting period.
5. Use of funds raised
□ Applicable √ Not applicable
No funds raised are used in the reporting period.
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
During the reporting period, there is no important information of the shareholding company that should be disclosed.
VIII. Structured entities controlled by the company
□ Applicable √ Not applicable
22
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
IX. Prospect of the Company's future development
1. Company development strategy (2020-2022)
Focus on cooking, focus on range hoods, expand the first category advantages, lead the second category, and
steadily promote the third category. Adhere to the spirit of hard-working vise entrepreneurship, take products and
users as the core, create a competitive advantage of the enterprise. Continue to create a more "convenient, healthy
and interesting" kitchen life for users, build a global brand and a century-old enterprise.
I. Overall goal: build a global brand and a century-old enterprise.
To be a world-class century-old leader of cooking innovation.
II. Business goal: focus on cooking, focus on range hoods, expand the first category advantages, lead the second
category, and steadily promote the third category.
The first category refers to the product group represented by range hoods. The second category refers to the
electrified cooking product group represented by steam oven-oven. The third category refers to the water kitchen
appliance product group represented by dishwashers.
III. Core work: take products and users as the core, create a competitive advantage of the enterprise, and continue
to create a more "convenient, healthy and interesting" kitchen life for users.
The core of products focus on the leading product technology; users refer to the consumers who purchase and use
kitchen products. At present, the kitchen appliance industry has entered the era of stock game. With the
acceleration of industry integration, products and user experience will become more and more important. Through
technological innovation, expand the competitive advantages of products, increase the market share driven by
products, pay attention to the user's cooking process and cooking environment, take improving the user's cooking
experience as the starting point, make the products and user experience the Company's competitive advantage, and
continue to create a more "convenient, healthy and interesting" kitchen life for users.
2. Mission, vision and values of the Company
Mission: To render happiness of kitchen life for more families.
Vision: To be a world-class century-old leader of cooking innovation.
Values: Hard-working vise entrepreneurship.
3. In 2021, the Company's work policy is "build dreams and travel far, advance courageously in torrent". The
Company will comprehensively reshape the Company's culture of struggle, highlight the Company's hard power;
Make the cooking culture powerful, shape the soft power of the enterprise; Realize digitalization driven
23
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
transformation and build smart power.
4. Risk Factors
(1) Risk of real estate market fluctuation
The Company takes root in the kitchen and provides integrated solutions for built-in kitchen appliances including
range hoods, gas hobs, sterilizer cabinets, steam oven-oven, ovens, steaming machine, dishwashers, water
purifiers, integrated hobs, purification sinks, etc. Its demand comes from the kitchen decoration after the house
purchase, which has certain attributes of "decoration" and "furniture". In addition, main demand currently is from
the new demand rather than the renewal demand, so its demand is greatly affected by the fluctuation of the real
estate market. Although the Company has certain ability to resist fluctuations by virtue of its market leadership,
the fluctuation of the real estate market will still have a certain impact on the Company's operating performance.
(2) Risk of raw material price fluctuation
The Company's main raw materials are stainless steel, cold-rolled sheet, copper, glass, etc. whose price fluctuation
will directly affect the Company's product costs, thus affecting the Company's profitability. Since the fourth
quarter of 2020, the price of the Company's main raw materials have risen sharply, exerting certain pressure on the
Company's operating performance.
(3) Risk of intensified market competition
In recent years, due to the decline of demand caused by real estate regulation, the continuous improvement of
industry concentration, the increasing investment of comprehensive brands in the kitchen appliance market and
the strong participation of Internet brands, there is a risk of intensified market competition in the kitchen appliance
industry, which will have a certain impact on the Company's business performance.
X. Reception, research, communication, interview and other activities
1. Registration form of reception, research, communication, interview and other activities during the
reporting period
√Applicable □ Not applicable
Type of
Reception Reception
Reception time received Basic information index of the survey
location way
object
Meeting See Record of Investor Relations Activity on January 02,
Field
January 02, 2020 room of the Organization 2020 in Cninfo for further information about the received
survey
Company objects and main communications
24
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Meeting See Record of Investor Relations Activity on January 06-16,
Field
January 06, 2020 room of the Organization 2020 at in Cninfo for further information about the received
survey
Company objects and main communications
Meeting See Record of Investor Relations Activity on August 28, 2020
Field
August 28, 2020 room of the Organization in Cninfo for further information about the received objects
survey
Company and main communications
Meeting See Record of Investor Relations Activity on September 22,
Tuesday, September Field
room of the Organization 2020 in Cninfo for further information about the received
22, 2020 survey
Company objects and main communications
Meeting See Record of Investor Relations Activity on September 24,
Field
September 24, 2020 room of the Organization 2020 in Cninfo for further information about the received
survey
Company objects and main communications
Meeting See Record of Investor Relations Activity on November 9-11,
Field
November 09, 2020 room of the Organization 2020 in Cninfo for further information about the received
survey
Company objects and main communications
Meeting See Record of Investor Relations Activity on December 24,
Field
December 24, 2020 room of the Organization 2020 in Cninfo for further information about the received
survey
Company objects and main communications
25
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Section 5 Important Matters
I. Common stock profit distribution and share capital increase from capital surplus
Formulation, implementation and adjustment of common stock profit distribution policy, especially cash dividend policy, during the
reporting period
√Applicable □ Not applicable
Description for cash dividend policy
Whether it meet the requirements of the Company’s articles of association and of the resolutions of shareholders’
Yes
meeting:
Whether the dividend distribution standard and proportion are specific and clear: Yes
Whether relevant decision-making procedures and mechanisms are complete: Yes
Whether the independent directors have performed their duties and fulfilled their due roles: Yes
Whether the minor shareholders have the chance to fully express their opinions and demands, and whether their legal
Yes
rights and interests have been fully protected:
Whether the conditions and procedures are normative and transparent in case of adjustments or changes of the cash
Yes
dividend policy:
Common stock dividend distribution program (plan) and share capital increase from capital surplus program (plan) in the past 3 years
(including this reporting period)
1. The Company's profit distribution plan in 2018: based on its existing total stock issue of 949,024,050 shares, the Company
distributed cash dividends of 8 yuan (tax inclusive) for every 10 shares to all shareholders, amounting up to a total of
759,219,240 yuan.
2. The Company's profit distribution plan in 2019: based on its existing total stock issue of 949,024,050 shares, the Company
distributed cash dividends of 5 yuan (tax inclusive) for every 10 shares to all shareholders, amounting up to a total of
474,512,025.00 yuan.
3. The Company's profit distribution plan in 2020: based on its existing total stock issue of 949,024,050 shares, the Company
distributed cash dividends of 5 yuan (tax inclusive) for every 10 shares to all shareholders, amounting up to a total of
474,512,025.00 yuan.
Common stock cash dividends of the Company in the past 3 years (including this reporting period)
Unit: yuan
Net profits Ratio of cash Amount Ratio of Total Ratio of total
attributable to dividends to net of cash cash amount amount of
common profits attributable dividend dividends of cash cash
Amount of
Year of stockholders of to common in other in other dividend dividends
cash dividend
dividend the listed stockholders of forms forms to s (including
(tax inclusive)
company in the the listed (e.g. net profits (includi other forms)
annual company in the share attributabl ng other to net profits
consolidated consolidated repurcha e to forms) attributable
26
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
statement of statement se) common to common
dividends stockhold stockholders
ers of the of the listed
listed company in
company the
in the consolidated
consolidat statement
ed
statement
474,512,
2020 474,512,025.00 1,660,749,958.89 28.57% 28.57%
025.00
474,512,
2019 474,512,025.00 1,589,814,847.80 29.85% 29.85%
025.00
759,219,
2018 759,219,240.00 1,473,579,665.62 51.52% 51.52%
240.00
The Company achieved profit within the reporting period and the parent company's attributable profit to common stockholders was
positive, but no common stock cash dividend distribution plan was proposed.
□ Applicable √ Not applicable
II. Profit distribution and share capital increase from capital surplus during the reporting
period
√Applicable □ Not applicable
Bonus shares per 10 shares (shares) 0
Dividend per 10 shares (yuan) (tax inclusive) 5
The number of shares converted every 10 shares
0
(shares)
Equity base of distribution plan (shares) 949,024,050.00
Amount of cash dividend (yuan) (tax inclusive) 474,512,025.00
Amount of cash dividend in other forms (e.g.
0.00
share repurchase) (yuan)
Amount of cash dividend (including other forms)
474,512,025.00
(yuan)
Distributable profit (yuan) 6,240,444,654.34
Ratio of total amount of cash dividend (including
other forms) to total amount of distributable 100%
profit
Cash dividend distribution in this period
Should the Company be in a growing stage and have major capital expenditure arrangements, the cash dividend should account
for a minimum of 20% of the profit distribution when the profit is distributed.
27
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Description for details of profit distribution or share capital increase from capital surplus plan
According to the standard unqualified audit report issued by ShineWing Certified Public Accountants, the Company’s net profit
attributable to the parent company owner in 2020 was RMB 1,660,749,958.89 yuan (number of parent company), plus the
undistributed profit of RMB 5,054,206,720.45 yuan at the beginning of the year, minus the cash dividend of profit distribution of
2019, i.e., RMB 474,512,025.00 yuan, the Company's profit available to shareholders at the end of 2020 was RMB
6,240,444,654.34 yuan. Based on its existing total stock issue of 949,024,050 shares, the Company distributed cash dividends of
5 yuan (tax inclusive) for every 10 shares to all shareholders, amounting up to a total of 474,512,025.00 yuan.
III. Performance of the commitments
1. Commitments fulfilled within and not fulfilled by the end of the reporting period by the Company’s
actual controller, shareholders, related parties, acquirer and other commitment parties
√Applicable □ Not applicable
Time
Degr
limit
Commit ee of
Commitme Commitment Commitm for
ment Commitment content perfo
nt reason party ent time acce
type rman
ptanc
ce
e
Directors,
supervisors
Commit After the expiry of the 36-month sales restriction
and senior
ment to period, the shares transferred each year during his/her Strict
management Tuesday,
restrictio tenure shall not exceed 25% of the total number of Long perfo
directly or Novembe
n on shares held directly or indirectly in the Company; the -term rman
indirectly r 23, 2010
sales of Company shares directly or indirectly held shall not be ce
holding
shares transferred within six months after the resignation
shares of the
Company
Commitme
1. The Company/I and other enterprises under the
nt made at
control of the Company/me do not, and will not,
the time of
directly or indirectly, engage in any activities that
IPO or
Commit constitute horizontal competition with the existing and
refinancing Hangzhou
ment on future business of Robam and its holding subsidiaries;
Robam Strict
avoiding 2. If any business opportunity obtained the Company/I Tuesday,
Industrial Long perfo
horizont and other enterprises under the control of the Novembe
Group Co., -term rman
al Company/me from any third party constitutes or may r 23, 2010
Ltd.; Ren ce
competit constitute substantial competition with the business of
Jianhua
ion Robam, the Company/I will immediately 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
28
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
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.
Other
commitme
The cumulative profits distributed in cash for three Strict
nts made to Tuesday, Thre
Dividen consecutive years shall not be less than 40% of the perfo
minor Company April 10, e
d annual average distributable profits realized in the rman
shareholder 2018 years
three years. ce
s of the
Company
Whether
the
commitme
Yes
nt is
fulfilled on
time
2. In case the Company’s asset or project saw earning expectation, and the reporting period is still covered
by the term of the earning expectation, the Company shall make a statement about the asset or project
fulfilling the original expectation and the reasons thereof.
□ Applicable √ Not applicable
IV. Non-operating occupation of funds of listed companies by controlling shareholders and their
related parties
□ Applicable √ Not applicable
No non-operating occupation of funds of listed companies by controlling shareholders and their related parties during the reporting
period.
V. Statement of the board of directors, the board of supervisors and independent directors (if any) on
the "non-standard audit report" of the accounting firm during the reporting period
□ Applicable √ Not applicable
VI. Explanation of changes in accounting policy, accounting estimates and accounting methods when
compared to the financial statements of the previous fiscal year
√Applicable □ Not applicable
In 2017, the Ministry of Finance issued the revised Accounting Standards for Business Enterprises No. 14 - Revenue
(referred to as the "new revenue standards"). From January 1, 2020, the Company will conduct accounting treatment in
29
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
accordance with the newly revised above standards. According to the convergence provisions, the balance of items in
relevant statements at the beginning of this reporting period will be adjusted according to the difference between the
implementation of the new standards and the current standards on the first day, and the information in comparable
periods will not be adjusted.
VII. Explanation of rectification of major accounting error in the reporting period which needs to be
tracked and restated
□ Applicable √ Not applicable
No rectification of major accounting error in the reporting period which needs to be tracked and restated.
VIII. Explanation of changes in the scope of combined financial statements when compared with
financial statements of the previous fiscal year
√Applicable □ Not applicable
On October 25, 2020, the Company's holding subsidiary Shengzhou Kinde and Gongqingcheng Binlan Investment
partnership (limited partnership) (hereinafter referred to as "Binlan Investment") signed a Project Cooperation
Agreement. The agreement stipulates that both parties jointly contribute to the establishment of Cooking Future with
registered capital of 50 million yuan, including 35 million yuan contributed by Shengzhou Kinde, accounting for 70%
of the equity, and 15 million yuan contributed by Binlan Investment, accounting for 30% of the equity. There are 7
directors on the board of directors of Cooking Future, including 4 directors from Shengzhou Kinde and 3 directors from
Binglan Investment. The resolution of the board of directors must be approved by more than half of the members of the
board of directors, so Shengzhou Kinde controls Cooking Future. Cooking Future has completed the industrial and
commercial registration on November 16, 2020 and is currently in the preparation period.
IX. Appointment and dismissal of accounting firms
Accounting firm currently appointed
Shinewing Certified Public Accountants (special general
Name of Chinese accounting firm
partnership)
Remuneration (10,000 yuan) 83
Term of audit services of domestic accounting firms 2
Name of certified public accountants in domestic accounting
Lei Yongxin, Wang Qing
firms
30
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Term of auditing services of certified public accountant in
2
domestic accounting firms
Whether the accounting firm has been changed within the reporting period?
□ Yes √ No
Employment of internal control audit accounting firm, financial advisor or sponsor
□ Applicable √ Not applicable
X. Delisting confronted upon disclosure of the annual report
□ Applicable √ Not applicable
XI. Matters related to bankruptcy reorganization
□ Applicable √ Not applicable
There is no matter related to bankruptcy reorganization of the Company during the reporting period.
XII. Major litigations and arbitration matters
□ Applicable √ Not applicable
There is no major litigation or arbitration matters of the Company during the reporting period.
XIII. Punishment and rectification
□ Applicable √ Not applicable
There is no punishment or rectification of the Company during the reporting period.
XIV. Credit conditions of the Company, its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XV. Implementation of the Company's equity incentive plan, employee stock ownership plan
or other employee incentive measures
√Applicable □ Not applicable
Implementation of the employee stock ownership plan in 2018
(1) On January 11, 2018, the 3rd meeting of the 4th Board of Directors of the Company was held to review and approve the
documents titled About the Company's 2018 Employee Stock Ownership Plan (Draft) and the Summary and Proposal on
Authorizing the Board of Directors to Handle Matters Related to the Company's Stock Ownership Plan. The former was also
reviewed and approved in the 3rd meeting of the 4th Board of Supervisors of the Company the same day.
(2) On February 2, 2018, the Company’s first extraordinary general meeting of shareholders in 2018 was held to review and
approve About the Company's 2018 Employee Stock Ownership Plan (Draft) and the Summary and Proposal on Authorizing
the Board of Directors to Handle Matters Related to the Company's Stock Ownership Plan.
31
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
(3) On May 4, 2018, purchases of the Company's employee stock ownership plan in 2018 had been completed, purchasing price up
to 35.94 yuan/share, a total of 5,443,300 shares purchased, accounting for 0.57% of the total stock issue.
(4) On July 22, 2020, the Company completed the sale of the Employee Stock Ownership Plan. Please refer to the Company's
Notice on the Completed Sale of the Employee Stock Ownership Plan (Notice No. : 2020-018) for details.
XVI. Major related transactions
1. Related transactions associated with daily operation
□ Applicable √ Not applicable
There is no related transactions associated with daily operation during the reporting period.
2. Related transactions arising from the acquisition or sale of assets or equity
□ Applicable √ Not applicable
There is 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
There is no related transactions of joint foreign investment of the Company during the reporting period.
4. Related claims and debts
□ Applicable √ Not applicable
There is no related claims and debts of the Company during the reporting period.
5. Other major related transactions
□ Applicable √ Not applicable
There is no other major related transactions of the Company during the reporting period.
XVII. Major contracts and their performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ Applicable √ Not applicable
There is no trusteeship of the Company during the reporting period.
32
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
(2) Contracting
□ Applicable √ Not applicable
There is no contracting of the Company during the reporting period.
(3) Lease
□ Applicable √ Not applicable
There is no lease of the Company during the reporting period.
2. Major guarantee
□ Applicable √ Not applicable
There is no guarantee of the Company during the reporting period.
3. Entrusted cash asset management
(1) Entrusted financing
√Applicable □ Not applicable
Entrusted financing during the reporting period
Unit: 10,000 yuan
Source of funds for Amount incurred in Outstanding Overdue amount not
Specific type
entrusted financing entrusted financing balance recovered
Bank financial products Owned fund 236,000 235,200 0
Total 236,000 235,200 0
Specific circumstance of high-risk entrusted financing with significant single amount or with low security, poor liquidity and not
break-even
□ Applicable √Not applicable
The entrusted financing is expected not to recover the principal or has other circumstances that may cause impairment
□ Applicable √ Not applicable
(2) Entrusted loans
□ Applicable √ Not applicable
There is no entrusted loans of the Company during the reporting period.
4. Major contracts for daily operations
□ Applicable √ Not applicable
33
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
5. Other major contracts
□ Applicable √ Not applicable
There is no other major contracts of the Company during the reporting period.
XVIII. Social responsibility
1. Social responsibility fulfillment
For more details, see the Company's Social Responsibility Report of 2020, which is disclosed in the designated media.
2、Implementation of social responsibility for targeted poverty alleviation
N/A
3. Environmental protection related condition
Whether the listed company and its subsidiaries are key pollutant discharging units announced by environmental protection
authorities
□ Yes √ No
XIX. Description on other important events
□ Applicable √ Not applicable
There is no other important events to be described during the reporting period.
XX. Major events of subsidiaries
□ Applicable √ Not applicable
34
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Section 6 Changes in Shares and Shareholders
I. Change in shares
1. Change in shares
Unit: share
Prior to this change Increase/Decrease by this change (+, -) After this change
Share
New capital
Share
Proport issue increase Oth Subt Proporti
Quantity donatio Quantity
ion of from er otal on
n
shares reserve
d funds
I. Restricted shares 14,123,269 1.49% 14,123,269 1.49%
Share held by other
14,123,269 1.49% 14,123,269 1.49%
domestic capital
Shares held by
14,123,269 1.49% 14,123,269 1.49%
domestic natural persons
II. Unrestricted shares 934,900,781 98.51% 934,900,781 98.51%
Common stock in RMB 934,900,781 98.51% 934,900,781 98.51%
100.00 100.00
III. Total amount of shares 949,024,050 949,024,050
% %
2. Changes in restricted shares
□ Applicable √ Not applicable
II. Securities issuance and listing
1. Securities issuance (excluding preferred shares) during the reporting period
□ Applicable √ Not applicable
2. Description of changes in the total number of shares, shareholder structure, asset and liability structure
of the Company
□ Applicable √ Not applicable
35
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
3. Existing internal employee shares
□ Applicable √ Not applicable
III. Shareholders and actual controllers
1. Number and shareholding of the Company's shareholders
Unit: share
Total number
of preferred
Total number Total number of shareholders
of common preferred with voting
Total number
shareholders at shareholders rights restored
of common
the end of the with voting at the end of
shareholders
41,028 previous 75,073 rights restored at 0 the previous 0
at the end of
month before the end of the month before
the reporting
the disclosure reporting period the disclosure
period
date of the (if any) (see date of the
annual report Note 8) annual report
(if any) (see
Note 8)
Shareholders holding more than 5% shares or top 10 shareholders
Number Pledge or freeze
Number of Increase or of shares
Number of shares
Shareholder's Shareholder Sharehol shares held at decrease during held with
held with unlimited Status of
name nature ding ratio the end of the the reporting limited Quantity
sales conditions shares
reporting period period sales
conditions
Hangzhou
Robam Domestic
Industrial non-state 49.68% 471,510,000 471,510,000
Group Co., legal person
Ltd.
Hong Kong
Securities Overseas
13.09% 124,229,511 -10,845,886 124,229,511
Clearing Co. legal person
Ltd.
Domestic
Shen
natural 1.29% 12,240,000 12,240,000
Guoying
person
TEMASEK Overseas 1.10% 10,461,546 10,461,546 10,461,546
36
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
FULLERTO legal person
N ALPHA
PTE LTD
Hangzhou
Domestic
Jinchuang
non-state 1.00% 9,451,985 9,451,985
Investment
legal person
Co., Ltd.
Norges
Overseas
Bank - 0.99% 9,440,215 8,118,215 9,440,215
legal person
equity fund
Quebec
Savings and Overseas
0.72% 6,808,111 6,808,111 6,808,111
Investment legal person
Group
Hangzhou
Domestic
Yinchuang
non-state 0.67% 6,318,000 6,318,000
Investment
legal person
Co., Ltd.
China
Resources
Szitic Trust
Co.,Ltd. -
China
Resources
Trust Kuan
Other 0.66% 6,299,928 6,299,928 6,299,928
Yuan Value
Renaissance
Securities
Investment
Collect
Fund Trust
Plan
Domestic
4,442,36
Ren Jianhua natural 0.62% 5,923,150 1,480,788
2
person
Description of the The actual controller of the Company’s controlling shareholder Hangzhou Robam Industrial Group Co.,
associated relationship or Ltd. and the shareholder Hangzhou Jinchuang Investment Co., Ltd. is Mr. Ren Jianhua, and the natural
consistent actions of the person shareholder Shen Guoying is the wife of Ren Jianhua. The above shareholders have the possibility
above shareholders of acting in unison.
Shareholding of top 10 shareholders with unlimited sales conditions
Shareholder's name Number of shares with Type of share
37
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
unlimited sales conditions held
at the end of the reporting Type of share Quantity
period
Hangzhou Robam Industrial Group Co.,
471,510,000 Common stock in RMB 471,510,000
Ltd.
Hong Kong Securities Clearing Co. Ltd. 124,229,511 Common stock in RMB 124,229,511
Shen Guoying 12,240,000 Common stock in RMB 12,240,000
TEMASEK FULLERTON ALPHA PTE
10,461,546 Common stock in RMB 10,461,546
LTD
Hangzhou Jinchuang Investment Co., Ltd. 9,451,985 Common stock in RMB 9,451,985
Norges Bank - equity fund 9,440,215 Common stock in RMB 9,440,215
Quebec Savings and Investment Group 6,808,111 Common stock in RMB 6,808,111
Hangzhou Yinchuang Investment Co., Ltd. 6,318,000 Common stock in RMB 6,318,000
China Resources Szitic Trust Co.,Ltd. -
China Resources Trust Kuan Yuan Value
6,299,928 Common stock in RMB 6,299,928
Renaissance Securities Investment Collect
Fund Trust Plan
Central Huijin Investment Ltd. 5,685,810 Common stock in RMB 5,685,810
Description of the association or concerted
action between top 10 public shareholders The actual controller of the Company’s controlling shareholder Hangzhou Robam
with unlimited sales conditions, and Industrial Group Co., Ltd. and the shareholder Hangzhou Jinchuang Investment Co., Ltd.
between top 10 public shareholders with is Mr. Ren Jianhua, and the natural person shareholder Shen Guoying is the wife of Ren
unlimited sales conditions and top 10 Jianhua. The above shareholders have the possibility of acting in unison.
shareholders
Description of the top 10 common
shareholders engaging in securities margin N/A
trading (if any) (see note 4)
Whether the Company’s top 10 common shareholders and op 10 common shareholders with unlimited sales conditions agreed on a
repurchase transaction during the reporting period
□ Yes √ No
The Company’s top 10 common shareholders and op 10 common shareholders with unlimited sales conditions did not agree on a
repurchase transaction during the reporting period
2. Controlling shareholders of the Company
Nature of controlling shareholder: natural person holding
Type of controlling shareholder: legal person
Controlling Legal Representative
Date of establishment Organization code Main business
shareholder's name / Head of Unit
38
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Hangzhou Robam Industrial investment,
Industrial Group Co., Ren Jianhua March 22, 1995 14384025-0 import and export of
Ltd. goods
Equity of other
domestic and foreign
listed companies
controlled and Directly holds 55.76% of the equity of Hangzhou Nbond Nonwoven Co., Ltd. (603238), acting as its
participated by controlling shareholder.
controlling shareholders
during the reporting
period
Change of controlling shareholders during the reporting period
□ Applicable √ Not applicable
There is no change in controlling shareholders during the reporting period.
3. Actual controller of the Company and person acting in concert
Type of actual controller: natural person
Whether to obtain the right of
Relationship with actual
Actual controller’s name Nationality residence in other countries
controller
or regions
Ren Jianhua Self China No
Chairman and secretary of the party committee of Robam Group, chairman of Robam
Main occupations and
Appliances, chairman of Hangzhou Nbond Nonwoven Co., Ltd., and chairman of Hangzhou
positions
Amblem Kitchen Ware Co., Ltd.
Domestic and foreign listed
companies that have held The actual controller of Robam appliances 002508 and Nbond Nonwoven 603238
shares in the past 10 years
Changes in actual controller during the reporting period
□ Applicable √ Not applicable
There is no change in actual controller during the reporting period.
Block diagram of property right and control relationship between the Company and actual controller
39
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Ren Jianhua
Robam Group Jinchuang
Investment
Hangzhou Robam Appliances Co., Ltd.
The actual controller controls the Company through trust or other asset management methods
□ Applicable √ Not applicable
4. Other legal person shareholders holding more than 10%
□ Applicable √ Not applicable
5. Restricted share reduction of controlling shareholders, actual controller, reorganizers and other
commitment subjects
□ Applicable √ Not applicable
40
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Section 7 Preferred Shares
□ Applicable √ Not applicable
There is no preferred shares of the Company during the reporting period.
41
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Section 8 Convertible Bonds
□ Applicable √ Not applicable
There is no convertible bonds of the Company during the reporting period.
42
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Section 9 Directors, Supervisors, Senior Management and Employees
I. Equity changes of directors, supervisors and senior management
Number of
Number of
shares held at
Employment Start date End date of shares held at
Name Position Gender Age the beginning
Status of tenure tenure the end of the
of the period
period (shares)
(shares)
Tuesday,
Ren August 17,
Chairman Incumbent Male 64 August 18, 5,923,150 5,923,150
Jianhua 2023
2020
Deputy Tuesday,
August 17,
Ren Fujia chairman, Incumbent Male 37 August 18, 2,800,075 2,800,075
2023
general manager 2020
Tuesday,
Zhao August 17,
Director Incumbent Male 58 August 18, 1,690,065 1,690,065
Jihong 2023
2020
Tuesday,
Ren August 17,
Director Incumbent Male 58 August 18, 1,690,062 1,690,062
Luozhong 2023
2020
Director, deputy
general
Tuesday,
Wang manager, August 17,
Incumbent Male 45 August 18, 576,750 576,750
Gang secretary to the 2023
2020
board of
directors
Tuesday,
Shen August 17,
Director Incumbent Male 55 August 18, 1,524,264 1,524,264
Guoliang 2023
2020
Zhang Independent August 18, August 17,
Abtreten Male 57
Guangjie director 2017 2020
Independent August 18, August 17,
Dong Jing Abtreten Female 45
director 2017 2020
Tuesday,
Ma Independent August 17,
Incumbent Male 67 August 18,
Guoxin director 2023
2020
Independent Tuesday, August 17,
He Yuanfu Incumbent Male 65
director August 18, 2023
43
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
2020
Tuesday,
Chen Independent August 17,
Incumbent Male 43 August 18,
Yuanzhi director 2023
2020
Chairman of the Tuesday,
Zhang August 17,
board of Incumbent Male 55 August 18, 1,112,315 1,112,315
Linyong 2023
supervisors 2020
Tuesday,
Tang Employee August 17,
Incumbent Male 60 August 18, 1,112,312 1,112,312
Genquan supervisor 2023
2020
Tuesday,
Zhang August 17,
Supervisor Incumbent Male 54 August 18, 1,112,312 1,112,312
Songnian 2023
2020
Tuesday,
Zhang Employee August 17,
Incumbent Female 42 August 18,
Huifen supervisor 2023
2020
Tuesday,
Sheng August 17,
Supervisor Incumbent Male 61 August 18, 53,875 53,875
Yueming 2023
2020
Tuesday,
Xia Deputy general August 17,
Incumbent Male 45 August 18, 411,950 411,950
Zhiming manager 2023
2020
Tuesday,
Deputy general August 17,
He Yadong Incumbent Male 46 August 18, 411,950 411,950
manager 2023
2020
Tuesday,
Zhang Chief financial August 17,
Incumbent Male 51 August 18, 411,950 411,950
Guofu officer 2023
2020
Total -- -- -- -- -- -- 18,831,030 18,831,030
II. Change of directors, supervisors and senior management
√Applicable □ Not applicable
Name Position Type Date Reason
Leave office
Zhang Independent Independent director leaves office
after expiration August 17, 2020
Guangjie director after expiration of the term
of the term
Leave office
Independent Independent director leaves office
Dong Jing after expiration August 17, 2020
director after expiration of the term
of the term
44
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Independent
He Yuanfu Appointment Tuesday, August 18, 2020 Appointment of independent director
director
Independent
Chen Yuanzhi Appointment Tuesday, August 18, 2020 Appointment of independent director
director
III. Service status
Professional background, main work experience and main responsibilities currently in the Company of current directors, supervisors
and senior management of the Company
Mr. Ren Jianhua, Han nationality, born in August, 1956, Chinese, without permanent residency abroad; junior
high school education, member of Communist Party of China, economist. He began to work in 1978 and
successively served as the supply and marketing section chief and factory director of Yuhang Hongxing Hardware
Factory, the chairman, general manager and Secretary of the Party branch of Hangzhou Robam Industrial Group
Co., Ltd., and the chairman and general manager of Hangzhou Robam Home Appliances & Kitchen Sanitary Co.,
Ltd. He has won the titles of national model worker and outstanding member of Communist Party of Zhejiang
Province, and was elected as the deputy to the 8th and 10th National People's Congress of Zhejiang Province,
deputy to the 11th National People's Congress of Hangzhou City, the Party representative, deputy to the 12th
National People's Congress of Hangzhou City, and the 12th Fengyun Zhejiang Merchants. At present, he is the
chairman of Hangzhou Robam Appliances Co., Ltd., Hangzhou Robam Industrial Group Co., Ltd., Hangzhou
Nbond Nonwoven Co., Ltd., Hangzhou Guoguang Touring Commodity Co., Ltd. and Hangzhou Amblem
Household Co., Ltd., the executive director and general manager of Hangzhou Mingqi Electric Co., Ltd., the
executive director and general manager of Hangzhou Robam Fuchuang Investment Management Co., Ltd., the
deputy chairman of Garden Hotel Hangzhou, the director of Zhejiang Hangzhou Yuhang Rural Commercial Bank
Company Limited, Hangzhou Dongming Forest Park Co., Ltd., Zhejiang CFMOTO Power Co., Ltd, the executive
director of Hangzhou Bonyee Daily Necessity Technology Co., Ltd., the executive director and general manager
of Hangzhou Jinchuang Investment Co., Ltd., the executive partner of Hangzhou Jinnuochang Investment
Management Partnership (Limited Partnership), deputy to the 13th Hangzhou Municipal People's Congress.
Mr. Ren Fujia, Han nationality, born in January, 1983, Chinese, without permanent residency abroad; bachelor
degree. He used to be the product manager of marketing department and the deputy general manager of R & D
center of Hangzhou Robam Industrial Group Co., Ltd., the deputy general manager of Hangzhou Robam Home
Appliances & Kitchen Sanitary Co., Ltd.; now he is the director of Hangzhou Nbond Nonwoven Co., Ltd., the
deputy chairman and general manager of Hangzhou Robam Appliances Co., Ltd., the director of Hangzhou
Amblem Household Co., Ltd., the director of Dize Home Appliances Trading (Shanghai) Co., Ltd., and the deputy
chairman of De Dietrich Trade (Shanghai) Co., Ltd.
Mr. Zhao Jihong, Han nationality, born in December 1962, Chinese, without permanent residency abroad; master
degree, senior economist; successively served as the chairman and general manager of Hubei Huangshi Jinye
Group Co., Ltd, the deputy general manager and general manager of the marketing center of Robam Group, the
deputy general manager and general manager of the marketing center of Robam Home Appliances, and the deputy
general manager of the Company; now he is the director of the Company. He has successively won the titles of
national outstanding entrepreneur, outstanding Hangzhou merchant in the World, "top 10 influential figures in
China's kitchen and bathroom industry", "top 10 personalities in China's home appliance industry", and twice won
the Mundell World Executive Awards for Achievement and was selected into the dictionary of Chinese experts
and celebrities. Now, he is the director of the Company, director of uTransHub Technologies Co., Ltd. and Dize
Home Appliance Trading (Shanghai) Co., Ltd.; director and general manager of Hangzhou Robam Industrial
45
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Group Co., Ltd., director of Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd., chairman of Zhejiang
Cooking Future Technology Co., Ltd.
Mr. Ren Luozhong, Han nationality, born in August, 1962, Chinese, without permanent residency abroad; EMBA,
assistant economist. He began to work in 1982 and successively served as the operation director of Yuhang
Hongxing Hardware Factory, the deputy general manager, general manager of the marketing center, general
manager of the technology center and director of the first production department of Robam Group, the director
and deputy general manager of Robam Home Appliances, and the deputy general manager of the Company. Now,
he is the director of the Company, director of Hangzhou Robam Industrial Group Co., Ltd, and president of
Hangzhou Yuhang ROBAM Charity Foundation.
Mr. Wang Gang, Han nationality, born in October, 1975, Chinese, without permanent residency abroad; master
degree, EMBA of China Europe International Business School, member of Communist Party of China, certified
public accountant, senior economist. He began to work in 1997 and successively served as an inspector of Haining
Local Taxation Bureau of Zhejiang Province, the R & D director of Shanghai Realize Investment Consulting Co.,
Ltd., the secretary of the board of directors, director of human resources, general manager assistant of Shanghai
Hailong Software Co., Ltd, and the secretary of the board of directors of Hangzhou Robam Home Appliances &
Kitchen Sanitary Co., Ltd. Now, he is the director, the secretary of the board of directors and deputy general
manager of the Company, the director of Hangzhou Nbond Nonwovens Co., Ltd., the director of Shengzhou
Kinde Intelligent Kitchen Electric Co., Ltd., the director of Dize Home Appliances Trading (Shanghai) Co., Ltd.,
the director of Ninbo Qinfeng Investment Co., Ltd. the director of De Dietrich Trade (Shanghai) Co., Ltd., the
supervisor of Hangzhou Robam Fuchuang Investment Management Co., Ltd.,the director of Hangzhou Guoguang
Touring Commodity Co., Ltd., the director of Hangzhou Zhu Bingren Culture and Art Co., Ltd., the director of
Hangzhou Fortune Gas Cryogenic Group Co., Ltd., the director of Versolsolar Hangzhou Co., Ltd., the director of
Hangzhou Wheeler General Machinery Co.,Ltd., the supervisor of Shanghai MXCHIP Information Technology
Co., Ltd.
Mr. Ren Guoliang, Han nationality, born in November, 1965, Chinese, without permanent residency abroad; high
school education. He began to work in 1982 and successively served as the chief of the transportation section of
Yuhang Hongxing Hardware Factory, the director, chief financial officer and the deputy general manager of the
marketing center of Robam Group, the director of Robam Home Appliances, and the chairman of the board of
supervisors of the Company. Now, he is the director of the Company, vice chairman of Shengzhou Kinde
Intelligent Kitchen Electric Co., Ltd., the director of Zhejiang Cooking Future Technology Co., Ltd., the
supervisor of Hangzhou Amblem Household Co., Ltd. and the supervisor of Beijing Robam Electric Appliance
Sales Co., Ltd.
Mr. Ma Guoxin, Han nationality, born in September, 1953, Chinese, without permanent residency abroad; member
of Communist Party of China, bachelor degree. He began to work in 1970 and successively served as the office
director of the Company (Party committee), deputy manager (and secretary) of the sales company of Hangzhou
Medical Equipment Factory (later changed into Hangzhou Refrigerator General Factory, Hangzhou Xiling
Electrical Appliance Group Co., Ltd.), the director of household appliance industry management department and
deputy secretary general of Zhejiang Household Appliance Association. At present, he is the secretary general and
vice president of Zhejiang Household Appliance Association; the independent director of AUPU Home Style
Corporation Limited and the Company.
Mr. He Yuanfu, Han nationality, born in March, 1955, bachelor degree, Chinese, without permanent residency
abroad, p,rofessor-level senior accountant, CPA retired in January, 2012. Now, he is the independent director of
the Company and the independent director of Xilinmen Furniture Co., Ltd., Anhui Jiangnan Chemical Industry
Co.,Ltd., Zhejiang CFMOTO Power Co., Ltd. and Zhejiang Yilida Co.,Ltd. He used to be the principal staff
46
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
member of accountant management division of Zhejiang Provincial Department of Finance, secretary general of
Zhejiang Institute of Certified Public Accountants, director of Zhejiang Provincial Education Center for Financial
Leaders, vice president of China Accounting Correspondence School in Zhejiang Province.
Mr. Chen Yuanzhi, Han nationality, born in November, 1977, Chinese; member of Communist Party of China,
doctor of management. He has held the post of professor in China Executive Leadership Academy Pudong,
adjunct researcher in the Research Center for Technological Innovation, Tsinghua University, director of China
Enterprise Management Research Association (Special Committee for Future Analysis and Management of
Emerging Technologies), expert of Shanghai Science and Technology Expert Database, and adjunct professor of
East China Normal University. Now, he is an independent director of the Company.
2. Resume of current supervisors
Mr. Zhang Linyong, Han nationality, born in August, 1965, Chinese, without permanent residency abroad; high
school education, member of Communist Party of China, assistant economist. He began to work in 1984 and
successively served as the office director of Yuhang Hongxing Hardware Factory, the general manager of
Hangzhou Huafa Electric Appliance Co., Ltd., the director and director of the engineering department of Robam
Group, and the director of Robam Home Appliances. Now, he is the chairman of the board of supervisors of the
Company and the director of Hangzhou Robam Industrial Group Co., Ltd.
Mr. Tang Genquan, Han nationality, born in October, 1960, Chinese, without permanent residency abroad; college
degree, engineer. He began to work in 1979 and successively served as the mould workshop director and technical
director of Yuhang Hongxing Hardware Factory, the deputy general manager of technology, general manager of
production quality and director of the third production department of Robam Group, the director of Robam Home
Appliances. In 1993-1994 and 2005-2006, he was awarded as the outstanding scientific and technological worker
of Hangzhou. In 2004, he was selected into the "new century talent project 139 youth talent cultivation candidate
list", applied for 1 national invention patent, 7 utility model patents and 10 design patents. He has been employed
as a member of China daily hardware industry expert committee since 1996 and the deputy secretary general of
fifth China daily hardware industry expert committee since 2006. Now, he is the staff representative supervisor of
the Company, the director of Hangzhou Robam Industrial Group Co., Ltd., the supervisor of Hangzhou Yuhang
Robam Gas Station Co., Ltd., and president of Hangzhou Yuhang ROBAM Charity Foundation.
Mr. Zhang Songnian, Han nationality, born in September, 1966, Chinese, without permanent residency abroad;
high school education. He began to work in 1983 and successively served as the production section chief of
Yuhang Hongxing Hardware Factory, the deputy general manager of Hangzhou Huafa Electric Appliance Co.,
Ltd., the director, deputy director of production department, director of the second production department and
general manager of product R & D center of Robam Group, and the supervisor of Robam Home Appliances. Now,
he is supervisor of the board of supervisors of the Company and the director of Hangzhou Robam Industrial
Group Co., Ltd.
Ms. Zhang Huifen, Han nationality, born in October, 1977, Chinese, without permanent residency abroad; college
degree, junior economist, junior accountant. She began to work in 1997 and successively served as the employee
of Hangzhou Gaobo Electronic Co., Ltd., the employee of punching machine third workshop, member of audit
department of marketing center and office clerk of financial center of Robam Group. At present, she is the
employee representative supervisor of the Company.
Mr. Sheng Yueming, Han nationality, born in October, 1959, Chinese, without permanent residency abroad; high
school education. He began to work in 1978 and successively served as the factory director of Tingzhi Food
Factory of Yuhang Supply and Marketing Cooperative, the production section director of Hangzhou Huafa
47
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Electric Appliance Co., Ltd., and the general manager of Beijing Robam Electric Appliance Sales Co., Ltd. At
present, he is the supervisor of the Company.
3. Resume of current senior management
Mr. Ren Fujia is the general manager of the Company; Mr. Wang Gang is the deputy general manager of the
Company. Please refer to the resume of the directors of the Company for the introduction.
Mr. Xia Zhiming, Han nationality, born in May 1975, Chinese, without permanent residency abroad; college
degree. He began to work in 1996 and successively served as the production section chief of Qiaori Electric
Products Factory, the manufacturing director of Foxconn Technology Co., Ltd. and the production director of the
Company's production center. At present, he is the deputy general manager of the Company.
Mr. He Yadong, Han nationality, born in August, 1974, Chinese, without permanent residency abroad; bachelor
degree, senior economist. He began to work in 2000 and successively served as the marketing section chief,
director of marketing department and deputy general manager of marketing center of Robam Group, the assistant
to general manager of Robam Home Appliances, and director of the Company. At present, he is the deputy general
manager of the Company.
Mr. Zhang Guofu, Han nationality, born in December, 1969, Chinese, without permanent residency abroad;
bachelor degree. He began to work in 1990 and successively served as the capital section chief, director of
financial center of Hangzhou Robam Industrial Group Co., Ltd., and financial chief of Hangzhou Robam Home
Appliances & Kitchen Sanitary Co., Ltd. At present, he is chief financial officer of the Company, the chairman of
the board of supervisors of Hangzhou Nbond Nonwoven Co., Ltd., the supervisor of Hangzhou Mingqi Electric
Co., Ltd., the supervisor of Dize Home Appliances Trading (Shanghai) Co., Ltd., the director of Shengzhou Kinde
Intelligent Kitchen Electric Co., Ltd., and the director of De Dietrich Trade (Shanghai) Co., Ltd.
Service status in the shareholder unit
√Applicable □ Not applicable
Whether to
Position held
receive
Name of the staff in Start date of End date
Shareholder unit name remuneration or
member shareholder tenure of tenure
allowance in the
unit
shareholder unit
Saturday,
Hangzhou Robam Industrial
Ren Jianhua Chairman February 25, No
Group Co., Ltd.
1995
Hangzhou Jinchuang Investment Executive
Ren Jianhua March 24, 2008 No
Co., Ltd. director
Hangzhou Robam Industrial Deputy December 24,
Ren Luozhong No
Group Co., Ltd. chairman 2014
Director,
Hangzhou Robam Industrial December 24,
Zhao Jihong general No
Group Co., Ltd. 2014
manager
Shen Guoliang Hangzhou Robam Industrial Director March 01, 1999 No
48
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Group Co., Ltd.
Hangzhou Robam Industrial
Zhang Linyong Director March 01, 1999 No
Group Co., Ltd.
Hangzhou Robam Industrial
Tang Genquan Director March 01, 1999 No
Group Co., Ltd.
Hangzhou Robam Industrial
Zhang Songnian Director March 01, 1999 No
Group Co., Ltd.
Description of
service status in the N/A
shareholder unit
Service status in other unit
√Applicable □ Not applicable
Whether to receive
Name of the staff Position held in other
Other unit name remuneration or
member unit
allowance in other unit
Hangzhou Amblem Household Co., Ltd. Chairman No
Garden Hotel Hangzhou Deputy chairman No
Hangzhou Dongming Forest Park Co., Ltd. Director No
Hangzhou Nbond Nonwoven Co., Ltd. Chairman No
Hangzhou Yuhang Robam Gas Station Co., Ltd. Chairman No
Zhejiang Hangzhou Yuhang Rural Commercial Bank
Director No
Company Limited
Ren Jianhua
Hangzhou Jinnuochuang Investment Management
Executive partner No
Partnership (Limited Partnership)
Hangzhou Bonyee Daily Necessity Technology Co.,
Executive director No
Ltd.
Zhejiang CFMOTO Power Co., Ltd. Director No
Executive director
Hangzhou Mingqi Electric Co., Ltd. No
and general manager
De Dietrich Trade (Shanghai) Co., Ltd. Deputy chairman No
Ren Fujia Hangzhou Amblem Household Co., Ltd. Director No
Hangzhou Nbond Nonwoven Co., Ltd. Director No
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. Chairman No
uTransHub Technologies Co., Ltd. Director No
Zhao Jihong
Dize Home Appliance Trading (Shanghai) Co., Ltd. Director No
Zhejiang Cooking Future Technology Co., Ltd. Chairman No
Ren Luozhong Hangzhou Amblem Household Co., Ltd. Director No
49
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Hangzhou Amblem Household Co., Ltd. Supervisor No
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. Director No
Shen Guoliang
Beijing Robam Electric Appliance Sales Co., Ltd. Supervisor No
Zhejiang Cooking Future Technology Co., Ltd. Director No
Secretary general,
Zhejiang Household Appliance Association Yes
Ma Guoxin vice president
AUPU Home Style Corporation Limited Independent director Yes
Xilinmen Furniture Co., Ltd. Independent director Yes
Anhui Jiangnan Chemical Industry Co.,Ltd. Independent director Yes
He Yuanfu
Zhejiang CFMOTO Power Co., Ltd. Independent director Yes
Zhejiang Yilida Co.,Ltd. Independent director Yes
Hangzhou Gaoxin Rubber & Plastic Materials Co.,Ltd. Independent director Yes
Chian Executive Leadership Academy Pudong Professor Yes
Chen Yuanzhi
Research Center for Technological Innovation,
Researcher No
Tsinghua University
Hangzhou Zhu Bingren Culture and Art Co., Ltd. Director No
Hangzhou Robam Fuchuang Investment Management
Supervisor No
Co., Ltd.
Shanghai MXCHIP Information Technology Co., Ltd. Supervisor No
Hangzhou Fortune Gas Cryogenic Group Co., Ltd. Director No
Versolsolar Hangzhou Co., Ltd. Director No
Independent
Hangzhou Gaoxin Rubber & Plastic Materials Co.,Ltd. Yes
Wang Gang director
Hangzhou Nbond Nonwoven Co., Ltd. Director No
Ninbo Qinfeng Investment Co., Ltd. Director No
De Dietrich Trade (Shanghai) Co., Ltd. Director No
Dize Home Appliance Trading (Shanghai) Co., Ltd. Director No
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. Director No
Hangzhou Wheeler General Machinery Co.,Ltd. Director No
Hangzhou Guoguang Touring Commodity Co., Ltd. Director No
De Dietrich Trade (Shanghai) Co., Ltd. Director No
Dize Home Appliance Trading (Shanghai) Co., Ltd. Supervisor No
Zhang Guofu Hangzhou Mingqi Electric Co., Ltd. Supervisor No
Chairman of the
Hangzhou Nbond Nonwoven Co., Ltd. No
board of supervisors
50
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. Director No
Punishment of current directors, supervisors and senior management of the Company and those who left during the reporting period
by securities regulators in recent three years
□ Applicable √ Not applicable
IV. Remuneration of Directors, Supervisors and Senior Management
Decision making procedures, determination basis and actual payment of remuneration of directors, supervisors and senior
management
The Company has established a sound performance appraisal system and salary system for senior management, whose work
performance is directly linked to their income. The remuneration and appraisal committee of the board of directors is responsible for
the year-end assessment of the working ability, performance of duties, completion of responsibility objectives, etc. of the senior
management, and preparing the remuneration plan and submitting it to the board of directors of the Company for approval. The
remuneration of directors, supervisors and senior management shall be paid on time.
Remuneration of directors, supervisors and senior management during the reporting period
Unit: 10,000 yuan
Total pretax Whether to get remuneration
Employment
Name Position Gender remuneration received from related parties of the
Status
from the Company Company
Ren Jianhua Chairman Male Incumbent 87.04 No
Deputy chairman,
Ren Fujia Male Incumbent 93.09 No
general manager
Deputy general
He Yadong Male Incumbent 113.09 No
manager
Deputy general
Xia Zhiming Male Incumbent 90.15 No
manager
Zhang Guofu Chief financial officer Male Incumbent 85.95 No
Director, secretary of
Wang Gang the board, deputy Male Incumbent 90.63 No
general manager
Ren Luozhong Director Male Incumbent 81.43 No
Shen Guoliang Director Male Incumbent 73.03 No
Zhao Jihong Director Male Incumbent 84.23 No
Chairman of the board
Zhang Linyong Male Incumbent 67.43 No
of supervisors
Tang Genquan Supervisor Male Incumbent 81.84 No
Zhang Songnian Supervisor Male Incumbent 67.43 No
Zhang Huifen Supervisor Male Incumbent 12.78 No
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Sheng Yueming Supervisor Male Incumbent 28.3 No
Dong Jing Independent director Female Abtreten 5.99 No
Zhang Guangjie Independent director Male Abtreten 5.99 No
Ma Guoxin Independent director Male Incumbent 9.52 No
He Yuanfu Independent director Male Incumbent 3.53 No
Chen Yuanzhi Independent director Male Incumbent 3.53 No
Total -- -- -- 1,084.98 --
Equity incentive granted to directors and senior management of the Company during the reporting period
□ Applicable √ Not applicable
V. Company Employees
1. Number of employees, professional composition and education background
Number of employees in the parent company (person) 2,880
Number of employees in main subsidiaries (person) 1,732
Total number of employees (person) 4,612
Total number of employees receiving salary in the current
4,634
period (person)
Number of retired employees whose expenses need to be borne
22
by the parent company and major subsidiaries (person)
Professional composition
Professional composition categories Number of professionals (person)
Production personnel 1,662
Sales personnel 1,637
Technical personnel 742
Financial personnel 166
Administrative personnel 405
Total 4,612
Education background
Education background categories Number (person)
Bachelor degree or above 1,049
Junior college 1,085
Other 2,478
Total 4,612
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
2. Salary policy
The Company has formulated the Salary Management Standards and Performance Management Standards, and
established a salary management system based on the post value and centered on the competency and performance
evaluation of employees, according to the salary status of the regional market and industry.
3. Training plan
The Company has carried out various training programs in 2020, including Lemon, Blue Whale, Sunflower, Ivy,
etc, and talent projects; As the Company's own mobile learning platform, Chestnut School played an important
role in the achievement transformation of the development course of internal trainer, and the Company's
employees' participation in learning has been greatly improved. A series of activities such as the vice platform and
super open class enrich the vision of employees and improves their abilities.
4. Labor outsourcing
□ Applicable √ Not applicable
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Section 10 Corporate Governance
I. Basic State of Corporate Governance
In the reporting period, the Company constantly improved the corporate governance structure, established and
improved internal management and control systems, and continued to carry out in-depth corporate governance
activities in strict accordance with the Company law, the Securities Law, the Governance Guidelines for Listed
Companies, the Rules for Stock Listing of Shenzhen Stock Exchange and relevant laws and regulations of China
Securities Regulatory Commission to further regulate the Company operation and improve the corporate
government level. By the end of the reporting period, the actual situation of corporate governance conformed to
the normative documents on listed corporate governance issued by China Securities Regulatory Commission.
During the reporting period, the Company operated in strict accordance with national laws and regulations, the
Rules for Stock Listing of Shenzhen Stock Exchange and Guidelines on the Standardized Operation of Listed
Companies on the SME Board, and performed its obligations of information disclosure in a timely, complete, true,
accurate and fair manner. The Company has not received the relevant documents of administrative supervision
measures taken by the regulatory authorities.
(1) Shareholders and Shareholders’ Meeting
In strict accordance with the Rules of the Shareholders’ Meeting of Listed Companies and the Rules of Procedure
of the Shareholders' Meeting, the Company shall convene the shareholders’ meeting to ensure that all shareholders,
especially minority shareholders, enjoy equal status and fully exercise their rights.
(2) Company and Controlling Shareholders
The Company has independent business and operational independence and is independent from the controlling
shareholders in business, personnel, assets, institutions and finance. The Company's board of directors, the board
of supervisors and internal organize operate independently. The controlling shareholders of the Company can
strictly regulate their own behaviors, without directly or indirectly intervening in the Company's decision-making
and business activities beyond the shareholders’ meeting.
(3) Directors and Board of Directors
The Company elects its directors in strict accordance with the recruiting procedures stipulated in the Articles of
Association; all the directors of the Company can carry out their work in accordance with the Rules of Procedure
of the Board of Directors and the Guidelines on the Behaviors of Directors of Listed Companies on the SME
Board, attend the board of directors and shareholders' meetings earnestly, actively participate in the training of
relevant knowledge, and be familiar with relevant laws and regulations.
(4) Supervisors and Board of Supervisors
The Company shall appoint supervisors in strict accordance with the relevant provisions of the Company law and
54
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
the Articles of Association, and the number and composition of the board of supervisors shall meet the
requirements of laws and regulations. In accordance with the requirements of the Rules of Procedure of the Board
of Supervisors, the Company's supervisors can earnestly perform their duties, effectively supervise the Company's
major issues, related party transactions, financial condition, and the performance of directors and managers, and
express independent opinions.
(5) Performance Evaluation and Incentive and Restraint Mechanisms
The Company is gradually establishing a fair and transparent performance evaluation standard and incentive and
restraint mechanism for directors, supervisors and managers. The appointment of the Company's managers is open
and transparent and conforms to the provisions of laws and regulations.
(6) Information Disclosure and Transparency
The Company carries out information disclosure and investor relations management under the board secretary
responsibility system; the Company performs the information disclosure procedure in strict accordance with the
Measures for the Administration of Information Disclosure and discloses the information on the designated
information disclosure media such as the Securities Times, the China Securities Journal, the Securities Daily and
Cninfo in a true, accurate, complete and timely manner according to law; meanwhile, according to the
requirements of the Measures for the Investor Relations Management, the Company standardizes investor
reception procedures, receives visits and inquiries from shareholders, and ensures that all shareholders have equal
access to the Company information.
(7) Stakeholders
The Company fully respects and safeguards the legitimate rights and interests of relevant stakeholders, realizes the
coordination and balance of interests of the society, shareholders, the Company and employees, and jointly
promotes the sustainable and steady development of the Company.
(8) Internal Audit System
The Company has established an internal audit system and set up an internal audit department. The board of
directors has appointed the person in charge of internal audit to effectively control the Company's daily operation
and management, internal control system and major issues of the Company. There is no significant difference
between the actual situation of corporate governance and the normative documents on listed corporate governance
issued by China Securities Regulatory Commission.
Whether there is significant difference between the actual situation of corporate governance and the normative documents on listed
corporate governance issued by China Securities Regulatory Commission.
□ Yes √ No
There is no significant difference between the actual situation of corporate governance and the normative documents on listed
corporate governance issued by China Securities Regulatory Commission.
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
II. Independence of Company from its controlling shareholders in terms of business,
personnel, assets, institutions and finance
The Company operates in strict accordance with the Company Law and the Articles of Association, establishes and
improves the corporate governance structure, is completely separated from the controlling shareholders in terms
of business, personnel, assets, institutions and finance, and has independent and complete business and
independent operation capability.
III. Horizontal competition
□ Applicable √ Not applicable
IV. Information about the annual general meeting of shareholders and extraordinary general
meeting of shareholders held during the reporting period
1. General meeting of shareholders during the reporting period
Investor
Convening Date of
Meeting session Meeting type participation Disclosure index
date disclosure
proportion
Annual
2019 Annual General Cninfo: Announcement of Resolutions
general Tuesday, May
Meeting of 65.33% May 20, 2020 of 2019 Annual General Meeting of
meeting of 19, 2020
Shareholders Shareholders
shareholders
Extraordinary
First extraordinary Tuesday, Cninfo: Announcement of Resolutions
general August 19,
general meeting of 65.73% August 18, of 2020 First Extraordinary General
meeting of 2020
shareholders in 2020 2020 Meeting of Shareholders
shareholders
2. The preferred shareholders with voting rights restored request an extraordinary general meeting of
shareholders
□ Applicable √ Not applicable
V. Performance of duties by independent directors during the reporting period
1. Attendance of board of directors and shareholders' meeting by independent directors
Attendance of board of directors and shareholders' meeting by independent directors
Name of Number of Number of Number of Number of Number of Whether not Number of
independent board board board board board to personally shareholders'
director meetings to meetings meetings meetings meetings attend the meetings
56
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
be attended attended on attended by delegated to absent board attended
during this site corresponde attend meeting for
reporting nce two
period consecutive
times
Zhang Guangjie 2 0 2 0 No 0
Dong Jing 2 0 2 0 No 0
Ma Guoxin 5 5 0 0 No 2
He Yuanfu 3 2 1 0 No 0
Chen Yuanzhi 3 1 2 0 No 0
Description on failure to personally attend the board meeting for two consecutive times
2. Objections made by independent directors on relevant matters
Whether the independent directors make objections on relevant matters of the Company
□ Yes √ No
The independent directors don’t make objections on relevant matters of the Company in the reporting period.
3. Other description on the performance of duties by the independent directors
Whether relevant suggestions of the independent directors on the Company are adopted
□ Yes √ No
Description on adoption or non-adoption of relevant suggestions of the independent directors on the Company
N/A
VI. Performance of duties by special committees under the board of directors during the
reporting period
In 2020, the board strategy committee held several meetings: strategic theory-discussing meeting, strategic seminar, strategy and
performance communication meeting, etc., effectively fulfilling the responsibilities of the strategy committee.
In 2020, the audit committee held several meetings to review the Company's regular reports and internal audit work reports and
supervise the improvement and implementation of the internal control system, communicated with the certified public accountants of
the annual audit on the audit arrangement and progress and the problems found in the audit process and effectively performed the
duties of the audit committee.
In 2020, the remuneration and appraisal committee held a meeting to review and approve the remuneration of the Company's
directors and senior managers, effectively fulfilling the responsibilities of the remuneration and appraisal committee.
In 2020, the nominations committee actively performed its duties and seriously examined the tenure and performance of the
Company's directors and senior managers.
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
VII. Work of board of supervisors
Whether the board of supervisors find any risk of the Company in the supervision activities during the reporting period
□ Yes √ No
The board of supervisors has no objection to the supervisory matters during the reporting period.
VIII. Evaluation and incentive of senior managers
The Company has established a sound performance appraisal system and salary system for senior management, whose work
performance is directly linked to their income. The remuneration and appraisal committee of the board of directors is responsible for
the year-end assessment of the working ability, performance of duties, completion of responsibility objectives, etc. of the senior
management, and preparing the remuneration plan and submitting it to the board of directors of the Company for approval.
IX. Internal control evaluation report
1. Details of major internal control defects discovered during the reporting period
□ Yes √ No
2. Internal control self-evaluation report
Full disclosure date of internal control
April 28, 2021
self-evaluation report
Index of full disclosure of internal
Cninfo: Internal control evaluation report of Robam Appliances
control evaluation report
Proportion of the total assets of the unit
included in the evaluation scope to the
100.00%
total assets of the consolidated financial
statement of the Company
Proportion of operating income of the
unit included in the evaluation scope to
100.00%
the operating income of the consolidated
financial statement of the Company
Defect identification standard
Category Financial report Non-financial report
Signs of major defects in the financial 1) The defects in non-financial
report include: reports are mainly determined
1) The fraud of the directors, supervisors according to the influence of the
Qualitative standard and senior executives of the Company; defects on the business process
2) Misstatement correction of material effectiveness and the possibility of
errors in financial reports that have occurrence;
been announced by the Company; 2) The defects with low possibility
58
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
3) Material misstatement in the current that will reduce the work
financial report, which is not found by efficiency or effect, or increase the
the internal control in the process of uncertainty of the effect, or make it
operation; deviate from the expected goal are
4) The audit committee and the audit common defects;
department are ineffective for the 3) The defects with high possibility
supervision of the internal control of that will significantly reduce the
the external financial report and work efficiency or effect, or
financial report of the Company. significantly increase the
Signs of important defects in the financial uncertainty of the effect, or make it
report include: significantly deviate from the
1) Fail to select and apply accounting expected goal are major defects;
policies in accordance with the 4) The defects with high possibility
accepted accounting standards; that will seriously reduce the work
2) The anti-fraud procedures and control efficiency or effect, or seriously
measures have not been established. increase the uncertainty of the
effect, or make it seriously deviate
3) No corresponding control mechanism
from the expected goal are major
is established or no corresponding
defects.
compensatory control has been
established for unconventional or
special transactions;
4) One or more defects in the control of
the final financial reporting process
and no reasonable assurance that the
financial statements will achieve the
objective of authenticity and
completeness. Common defects refer
to control defects other than the major
defects and important defects
mentioned above.
The quantitative standard takes the
operating income and the total assets as
the measurement index.
1) The internal control defects that may
Common defect: direct property loss <
cause losses or whose losses are
RMB 5 million;
related to the income statement are
Important defect: RMB 5 million <
Quantitation standard measured on the basis of operating
direct property loss < RMB 20 million;
income:
Major defect: direct property loss ＞
Common defect: misstatement amount <
RMB 20 million.
1% of operating income;
Important defect: 1% of operating income
《 misstatement amount < 2% of
operating income;
59
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Major defect: misstatement amount > 2%
of operating income
2) The internal control defects that may
cause losses or whose losses are
related to the assets management are
measured on the basis of total assets:
Common defect: misstatement amount <
0.5% of total assets;
Important defect: 0.5% of total assets <
misstatement amount < 1% of total assets;
Major defect: misstatement amount ＞1%
of total assets
Number of major defects in financial
0
reports
Number of major defects in
0
non-financial reports
Number of important defects in financial
0
reports
Number of important defects in
0
non-financial reports
60
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Section 11 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 annual report
No
61
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Section 12: Financial Report
I. Audit report
Type of audit opinion Standard unqualified opinion
Date of signing of audit report Tuesday, April 27, 2021
Name of audit institution Shinewing Certified Public Accountants
Name of Certified Public Accountant Lei Yongxin, Wang Qing
Main body of the audit report
XYZH/2021BJAA100383
To all shareholders of Hangzhou Robam Appliances Co., Ltd.:
I. Audit opinion
We have audited the accompanying financial statements of Hangzhou Robam Appliances Co., Ltd.
(hereinafter referred to as Robam), including the consolidated balance sheet and the balance sheet of parent
company as of December 31, 2020, consolidated income statement and income statement of parent company,
consolidated cash flow statement and cash flow statement of parent company, consolidated statement of
change in equity and statement of change in equity of parent company for the year 2020 and notes to relevant
financial statements.
In our opinion, the attached financial statements of your company have been prepared in accordance with the
provisions of the Accounting Standards for Business Enterprises and give a true and fair view of the
consolidated financial position and financial position of parent company of Robam as of December 31, 2020
and of the financial performance and cash flows for the year 2020 in all significant terms.
II. Basis for audit opinion
We conducted our audit in accordance with the Standards on Auditing for Certified Public Accountants. The
part on "CPA's responsibility for financial statements audit" of the audit report further expounds our
responsibilities under these guidelines. We were independent of Robam and fulfill other responsibilities in
terms of professional ethics according to the code of professional ethics. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
III. Key audit items
The key audit items are those that we consider most important to audit the financial statements of the current
period in our professional judgment. The response to these items is based on the audit of the financial
statements as a whole and the formation of an audit opinion. We do not comment on these items separately.
We confirm that the following matters are key matters about which we need communicated in the audit
report.
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
1. Income recognition - Agency model and engineering channels
Key audit items Response in audit
Refer to Notes to financial For the income recognition of the agency mode and engineering
statements IV. 29 and VI. 34 channels, the audit procedures we implemented mainly include:
Operating income and operating 1. Understand key internal controls related to income recognition,
cost. evaluate and test the effectiveness of internal control design and
The operating income of implementation;
Robam was 8,128,620,800 yuan 2. Check the information of the shareholders and main personnel of
in 2020, an increase of the agency company and evaluate whether there is any
368,038,900 yuan compared correlation;
with that of 2019, including the 3. Combine contract terms and business nature, and check the terms
agency mode income of related to the transfer time point of control right of commodity, to
2,191,561,200 yuan and the evaluate whether the revenue recognition method and the time
engineering channel income of point conform to the relevant provisions of the accounting
1,835,559,100 yuan, accounting standards for enterprises;
for 49.54% of revenue of the
4. Carry out substantive analysis procedures on operating income
period.
and gross margin ratio by channels, customers, products, etc.,
Since the agency mode identify whether there are significant or abnormal fluctuations,
income and engineering channel and analyze the causes of fluctuations;
income account for large
5. Check the original documents of the income recognition for major
proportion in the operating
customers according to the income recognition policy and
income and are one of the key
settlement process and evaluate the authenticity and accuracy of
performance indicators of
operating income recognition;
Robam, there may be an
6. Confirm current sales to main customers by sampling combined
inherent risk that the
with the confirmation of accounts receivable;
management may recognize the
7. Carry out the cut-off test procedure of income, check the
income in the wrong way to
supporting documents such as outbound delivery order and
reach the specific goal or
acceptance certificate for the operating income recognized before
expected goal. Therefore, we
and after the balance sheet date, and evaluate whether the
regard income recognition as a
operating income is recognized within an appropriate period;
key audit issue.
8. Check whether the information relating to operating income has
been properly presented and disclosed in the financial statements.
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
2. Impairment of notes receivable and accounts receivable
Key audit items Response in audit
Refer to Notes to financial For the impairment of notes receivable and accounts receivable, the
statements IV. 11.12, VI. 3 Notes audit procedures we implemented mainly include:
receivable and VI. 4 Accounts 1. Understand key internal controls for notes receivable and
receivable. accounts receivable of Robam, evaluate and test the
As of December 31, 2020, the effectiveness of internal control design and implementation;
balance of notes receivable of 2. Check the contracts of main customers according to the
Robam was 1,899,008,600 yuan income status, understand the settlement terms, pay attention
and the provision for bad debt was to the customers who have not made payment after the
66,307,100 yuan; the balance of settlement credit period or acceptance period, and analyze the
accounts receivable was reasons. Judge the solvency of customers by understanding
1,080,844,400 yuan, and the their operating and financial conditions;
provision for bad debt was 3. Analyze the implementation of the new financial instrument
72,608,500 yuan. standards for receivables, including the rationality of
Due to the large amount of determination and estimation of the expected credit loss model
notes receivable and accounts for the receivables of Robam, calculate the expected credit loss
receivable at the end of the period, amount on the balance sheet date, and analyze whether the
the management needs to use credit loss is fully accounted for in the receivables period;
material accounting estimate and 4. Verify the rationality of expected credit loss of receivables
judgment when determining the combined with the receivables confirmation procedure and
recoverable amount, so we regard post-dated collection by analyzing the aging of accounts
the impairment of notes receivable receivable;
and accounts receivable as the key
5. Carry out supervision procedures, check the balance of notes
audit items.
receivable at the end of the period, and check the current
endorsement and discount status to check whether they
conform to the derecognition conditions;
6. Check the post-dated acceptance status of notes receivable
from main customers, record the amount of notes receivable
collected after the post-dated period, and check the supporting
documents, such as bank receipt and other vouchers, for those
with large amounts of notes receivable;
7. Check whether the information relating to notes receivable and
accounts receivable has been properly presented and disclosed
in the financial statements.
IV. Other information
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
The management of Robam (hereinafter referred to as the management) is responsible for other information,
including the information covered in Robam annual report for 2020, but excluding the financial statements
and our audit report.
Our audit opinion on the financial statements does not cover other information and we do not express any
form of verification conclusions on other information.
In combination with our audit of financial statements, it is our duty to read other information. In the process,
we consider whether other information is significantly inconsistent with the financial statements or what we
learned in the audit process, or there seems to be a substantial misstatement.
Based on the work that we have already implemented, we should report the fact if we determine that there is
a major misstatement in other information. In this respect, we have nothing to report.
V. Responsibility of management and government for the financial statements
The management is responsible for preparing the financial statements in accordance with the provisions of
the Accounting Standards for Business Enterprises and giving a true and fair view; designing, implementing
and maintaining necessary internal control, so that the financial statements are free from material
misstatement, whether due to fraud or error.
When preparing the financial statements, the management is responsible for evaluating the going-concern
ability of Robam, disclosing the matters related to the going-concern (if applicable) and using the
going-concern assumption, unless the management plans to liquidate Robam or stop operation or no other
realistic options.
The government is responsible for supervising the financial reporting process of Robam.
VI. Responsibility of certified public accountants for audit of financial statements
Our goal is to obtain reasonable guarantee on inexistence of the material misstatement of the financial
statements whether due to fraud or error and to issue an audit report including audit opinion. Reasonable
guarantee is high level guarantee, but it cannot guarantee that a material misstatement of the audit executed
according to the auditing standards will always be found. Misstatement may be caused by fraud or error. If
the reasonable expected misstatements may affect the economic decision made by the financial statement
user according to the financial statements, whether individually or collectively, the misstatement is generally
believed material.
We made professional judgment and maintained professional skepticism in the audit process according to the
auditing standards. At the same time, we also carry out the following work:
66
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and implement audit procedures to address these risks, and obtain sufficient and
appropriate audit evidence as the basis for audit opinion. Since the fraud may involve collusion, forge,
intentional omission, false statement or above internal control, the risk of material misstatement caused
by fraud is higher than that caused by error.
(2) Understand internal control related to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and relevant disclosure.
(4) Draw a conclusion about the appropriateness of the going-concern assumption used by the management.
Meanwhile, draw a conclusion about the major uncertainty of the matters or circumstances possibly
resulting in major concerns about the going-concern ability of Robam according to the audit evidence
obtained. If we draw a conclusion that major uncertainty exists, the auditing standards require us to
request the statement user to notice relevant disclosure in the financial statements in the audit report; in
case of insufficient disclosure, we should issue a modified audit report. Our conclusion is made on the
basis of the information available as of the audit report date. However, the future matters or
circumstances may result in going concern failure of Robam.
(5) Evaluate the overall presentation, structure and content of the financial statements and evaluate whether
the financial statements give a true and fair view of relevant transactions and matters.
(6) Obtain adequate and appropriate audit evidence for the financial information of Robam entity or
business activities to express an opinion on the financial statements. We are responsible for guiding,
supervising and implementing the group audit and take full responsibility for the audit opinions.
We communicate with the governance on the planned audit scope, time arrangement and major audit findings,
including the internal control defects identified by us in the audit and worthing attention.
We also provide a statement to the government layer that we have been complying with the professional
ethics requirements related to independence, and communicate with the government layer about all the
relationships and other matters that may be considered to affect our independence, and about the related
precautions (if applicable).
From the items communicated with the governance, we determine which items are most important to the
audit of current financial statements and thus constitute the key audit items. We describe these items in our
67
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
audit report, unless the disclosure of these matters is prohibited by law or regulation, or, in rare
circumstances, we determine that we should not communicate the items in our audit report if it is reasonably
expected that the negative consequences of communicating an item outweigh the benefits in the public
interest.
II. Financial statements
Unit of statements in financial notes: CNY
1. Consolidated Balance Sheet
Unit: Hangzhou Robam Appliances Co., Ltd.
December 31, 2020
Unit: yuan
Item December 31, 2020 Tuesday, December 31, 2019
Current assets:
Monetary capital 3,921,052,700.31 4,054,121,726.23
Deposit reservation for balance
Lending funds
Trading financial assets 2,352,000,000.00 1,360,000,000.00
Derivative financial assets
Notes receivable 1,832,701,443.08 986,693,149.40
Accounts receivable 1,008,235,946.40 725,630,901.28
Receivables financing 408,972,104.07
Advances to suppliers 69,889,399.47 50,113,549.84
Premiums receivables
Reinsurance accounts receivable
Reinsurance contract reserve receivable
Other receivables 56,589,791.38 110,899,448.65
Including: Interest receivable
Dividends receivable 14,295,039.38
Redemptory monetary capital for sale
Inventory 1,386,089,344.84 1,339,176,925.20
Contract assets
Assets held for sales
Non-current assets due within a year
Other current assets 667,378.56 16,189,237.81
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Total current assets 10,627,226,004.04 9,051,797,042.48
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 3,452,769.59 4,168,338.79
Other equity instrument investments 102,116,023.22 102,116,023.22
Other non-current financial assets
Investment properties 2,591,001.84 112,588.34
Fixed assets 824,978,354.71 826,234,929.97
Construction in progress 463,424,647.46 272,211,720.62
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 235,217,240.32 219,733,270.51
Development expenditure
Goodwill 80,589,565.84 80,589,565.84
Long-term unamortized expenses 1,798,358.85 523,195.74
Deferred income tax assets 112,492,030.71 70,877,116.09
Other non-current assets 3,682,279.67 23,558,781.27
Total non-current assets 1,830,342,272.21 1,600,125,530.39
Total assets 12,457,568,276.25 10,651,922,572.87
Current liabilities
Short-term borrowing 6,076,177.30
Borrowings from central bank
Borrowing funds
Trading financial liabilities
Derivative financial liabilities
Notes payable 751,802,498.92 603,308,648.96
Accounts payable 1,723,832,208.09 1,395,061,285.28
Advance from customers 1,092,261,332.25
Contract liabilities 949,591,228.35
Financial assets sold for repurchase
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Deposits from customers and interbank
Acting trading securities
Acting underwriting securities
Payroll payable 126,130,391.24 122,070,325.03
Tax payable 181,887,237.51 102,726,655.21
Other payables 242,559,615.30 241,641,864.89
Including: Interest payable
Dividends payable
Fees and commissions payable
Dividend payable for reinsurance
Liabilities held for sales
Non-current liabilities due within a year
Other current liabilities 126,535,407.26
Total current liabilities 4,108,414,763.97 3,557,070,111.62
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 150,163,523.90 114,851,263.30
Deferred income tax liabilities 5,210,759.74 5,717,848.25
Other non-current liabilities
Total non-current liabilities 155,374,283.64 120,569,111.55
Total liabilities 4,263,789,047.61 3,677,639,223.17
Owner's equity:
Capital stock 949,024,050.00 949,024,050.00
Other equity instruments
Including: preferred stock
Perpetual bond
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Capital reserve 401,799,332.67 401,799,332.67
Minus: treasury stock
Other comprehensive income -15,157,634.16 -15,157,634.16
Special reserve
Surplus reserves 474,516,412.50 474,516,412.50
General risk preparation
Undistributed profit 6,240,444,654.34 5,054,206,720.45
Total owners' equities attributable to the owners
8,050,626,815.35 6,864,388,881.46
of parent company
Minority equity 143,152,413.29 109,894,468.24
Total owners' equities 8,193,779,228.64 6,974,283,349.70
Total liabilities and owners' equities 12,457,568,276.25 10,651,922,572.87
Legal representative: Ren Jianhua Head of accounting work: Zhang Guofu Head of accounting institution: Zhang Guofu
2. Balance sheet of parent company
Unit: yuan
Item December 31, 2020 Tuesday, December 31, 2019
Current assets:
Monetary capital 3,660,573,828.66 3,974,490,043.89
Trading financial assets 2,260,000,000.00 1,100,000,000.00
Derivative financial assets
Notes receivable 1,826,318,388.55 974,185,844.67
Accounts receivable 933,609,909.29 704,246,884.81
Receivables financing 408,605,906.50
Advances to suppliers 54,046,490.84 41,005,526.82
Other receivables 49,092,820.31 105,766,154.95
Including: Interest receivable
Dividends receivable 14,295,039.38
Inventory 1,310,365,800.56 1,268,289,683.46
Contract assets
Assets held for sales
Non-current assets due within a year
Other current assets 12,064,254.50
Total current assets 10,094,007,238.21 8,588,654,299.60
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 229,958,703.32 230,674,272.52
Other equity instrument investments 102,116,023.22 102,116,023.22
Other non-current financial assets
Investment properties 2,890,836.38 436,960.72
Fixed assets 798,041,764.29 798,954,901.11
Construction in progress 388,628,789.02 271,619,361.89
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 153,598,124.59 157,002,023.43
Development expenditure
Goodwill
Long-term unamortized expenses 1,626,828.83 383,195.74
Deferred income tax assets 110,283,291.78 70,173,783.09
Other non-current assets 3,005,279.67 23,558,781.27
Total non-current assets 1,790,149,641.10 1,654,919,302.99
Total assets 11,884,156,879.31 10,243,573,602.59
Current liabilities
Short-term borrowing 6,076,177.30
Trading financial liabilities
Derivative financial liabilities
Notes payable 706,096,531.24 601,960,648.96
Accounts payable 1,643,087,806.83 1,358,297,550.30
Advance from customers 983,128,543.51
Contract liabilities 863,047,926.93
Payroll payable 102,753,699.88 97,599,336.20
Tax payable 170,747,570.08 96,425,637.42
Other payables 225,015,032.38 226,064,422.04
Including: Interest payable
Dividends payable
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Liabilities held for sales
Non-current liabilities due within a year
Other current liabilities 115,284,778.08
Total current liabilities 3,832,109,522.72 3,363,476,138.43
Non-current liabilities:
Long-term borrowing
Bonds payable
Including: preferred stock
Perpetual bond
Lease liabilities
Long-term payable
Long-term payroll payable
Estimated liabilities
Deferred income 121,306,538.90 114,851,263.30
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 121,306,538.90 114,851,263.30
Total liabilities 3,953,416,061.62 3,478,327,401.73
Owner's equity:
Capital stock 949,024,050.00 949,024,050.00
Other equity instruments
Including: preferred stock
Perpetual bond
Capital reserve 401,754,349.66 401,754,349.66
Minus: treasury stock
Other comprehensive income -15,157,634.16 -15,157,634.16
Special reserve
Surplus reserves 474,516,412.50 474,516,412.50
Undistributed profit 6,120,603,639.69 4,955,109,022.86
Total owners' equities 7,930,740,817.69 6,765,246,200.86
Total liabilities and owners' equities 11,884,156,879.31 10,243,573,602.59
3. Consolidated Statement of Income
Unit: yuan
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Item Year 2020 Year 2019
I. Total operating income 8,128,620,799.31 7,760,581,855.53
Including: Operating income 8,128,620,799.31 7,760,581,855.53
Interest revenue
Premium earned
Fee and commission income
II. Total operating costs 6,222,313,742.92 6,044,077,772.58
Including: Operating costs 3,563,206,930.87 3,548,777,745.04
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 61,956,630.88 66,618,104.73
Selling expenses 2,146,965,048.87 1,928,259,172.35
Management costs 296,985,763.24 284,364,115.17
Research and development cost 303,347,555.81 299,469,126.54
Financial expenses -150,148,186.75 -83,410,491.25
Including: interest expenditure 6,721,543.47 477,352.78
Interest revenue 160,282,611.34 84,590,717.34
Plus: other incomes 92,182,244.92 86,454,822.71
Income from investment (loss expressed with “-”) 39,488,969.96 127,100,794.11
Including: Income from investment of joint venture and cooperative
-715,569.20 1,550,487.63
enterprise
Income from derecognition of financial assets measured at
amortized cost
Exchange gain (loss expressed with “-”)
Net exposure hedging gain (loss expressed with “-”)
Income from fair value changes (loss expressed with “-”)
Credit impairment losses (loss expressed with “-”) -64,138,118.53 -48,823,331.47
Assets impairment losses (loss expressed with “-”) -21,977,893.76 -9,321,963.35
Income from disposal of assets (loss expressed with “-”) -387,844.96 -158,607.19
III. Operating profits (loss expressed with “-”) 1,951,474,414.02 1,871,755,797.76
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Plus: Non-operating income 1,084,379.00 4,098,230.54
Minus: Non-operating expenditure 3,953,245.34 4,323,553.72
IV. Total profits (total loss expressed with “-”) 1,948,605,547.68 1,871,530,474.58
Minus: income tax expenses 261,247,643.74 257,285,119.95
V. Net profits (net loss expressed with “-”) 1,687,357,903.94 1,614,245,354.63
(I) Classification by business continuity
1. Net profits from ongoing operation (net loss expressed with “-”) 1,687,357,903.94 1,614,245,354.63
2. Net profits from discontinuing operation (net loss expressed with “-”)
(II) Classified by ownership
1. Net owners' profits attributable to the shareholders of the parent company 1,660,749,958.89 1,589,814,847.80
2. Minority interest income 26,607,945.05 24,430,506.83
VI. Net of tax of other comprehensive income -15,157,634.16
Net amount of after-tax other comprehensive income attributable to the owners
-15,157,634.16
of the parent company
(I) Other comprehensive income that can't be reclassified into profit and loss -15,157,634.16
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 -15,157,634.16
4. Fair value change of enterprise credit risks
5. Other
(II) Other comprehensive income that will be reclassified into profit and
loss
1. Other comprehensive income that will be reclassified into profit
and loss in the invested enterprise under equity method
2. Fair value change of other debt investments
3. Amount of financial assets reclassified into other comprehensive
income
4. Provision for credit impairment of other debt investments
5. Cash flow hedging reserve
6. Translation reserve
7. Other
Net of tax of other comprehensive income attributable to the minority
shareholders
VII. Total comprehensive income 1,687,357,903.94 1,599,087,720.47
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Total comprehensive income belonging to parent company 1,660,749,958.89 1,574,657,213.64
Total comprehensive income belonging to minority shareholders 26,607,945.05 24,430,506.83
VIII. Earnings per share:
(I) Basic earnings per share 1.75 1.68
(II) Diluted earnings per share 1.75 1.68
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 institution: Zhang Guofu
4. Income statement of parent company
Unit: yuan
Item Year 2020 Year 2019
I. Operating income 7,530,428,964.96 7,171,273,971.28
Minus: operating costs 3,375,484,733.03 3,380,454,870.95
Taxes and surcharges 56,158,201.66 59,608,538.30
Selling expenses 1,883,064,814.48 1,663,615,331.66
Management costs 216,279,202.32 203,713,247.47
Research and development cost 290,347,551.69 289,897,222.53
Financial expenses -146,412,372.62 -82,103,320.70
Including: interest expenditure 6,721,543.47 477,352.78
Interest revenue 155,949,366.04 82,747,708.18
Plus: other incomes 85,947,189.06 80,543,507.55
Income from investment (loss expressed with “-”) 32,129,921.37 118,589,082.46
Including: Income from investment of joint venture and cooperative
-715,569.20 1,550,487.63
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 (loss expressed with “-”) -58,992,629.71 -47,422,169.48
Assets impairment losses (loss expressed with “-”) -21,977,893.76 -9,321,963.35
Income from disposal of assets (loss expressed with “-”) -585,889.07 -303,654.83
II. Operating profit (loss to be filled out with the minus sign "-") 1,892,027,532.29 1,798,172,883.42
Plus: Non-operating income 858,846.38 3,704,034.22
Minus: Non-operating expenditure 2,997,945.29 1,542,215.05
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
III. Total profit (total loss to be filled out with the minus sign "-") 1,889,888,433.38 1,800,334,702.59
Minus: income tax expenses 249,881,791.55 246,593,779.26
IV. Net profit (net loss to be filled out with the minus sign "-") 1,640,006,641.83 1,553,740,923.33
(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 -15,157,634.16
(I) Other comprehensive income that can't be reclassified into profit and loss -15,157,634.16
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 -15,157,634.16
4. Fair value change of enterprise credit risks
5. Other
(II) Other comprehensive income that will be reclassified into profit and
loss
1. Other comprehensive income that will be reclassified into profit
and loss in the invested enterprise under equity method
2. Fair value change of other debt investments
3. Amount of financial assets reclassified into other comprehensive
income
4. Provision for credit impairment of other debt investments
5. Cash flow hedging reserve
6. Translation reserve
7. Other
Ⅵ. Total comprehensive income 1,640,006,641.83 1,538,583,289.17
Ⅶ. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated Statement of Cash Flow
Unit: yuan
Item Year 2020 Year 2019
I. Cash flow from financing activities:
Cash from selling commodities or offering labor 8,100,485,159.16 7,864,881,727.36
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Net increase of customer deposit and deposit from other banks
Net increase of borrowings from central bank
Net increase of borrowing funds from other financial institutions
Cash from obtaining original insurance contract premium
Cash received from insurance premium of original insurance contract
Net increase of deposit and investment of insured
Cash from interest, handling charges and commissions
Net increase of borrowing funds
Net increase of repurchase of business funds
Net cash from acting trading securities
Refund of tax and levies 15,076.40
Other cash received related to operating activities 298,798,845.98 313,827,100.02
Subtotal cash inflows from operating activities 8,399,284,005.14 8,178,723,903.78
Cash paid for selling commodities or offering labor 3,532,083,383.04 3,263,409,930.51
Net increase of customer loans and advances
Net increase of amount due from central bank and interbank
Cash paid for original insurance contract claims payment
Net increase of lending funds
Cash paid for interest, handling charges and commissions
Cash paid for policy dividend
Cash paid to and for employees 802,932,443.05 781,240,228.31
Taxes and fees paid 781,667,958.02 852,036,925.94
Other cash paid related to operating activities 1,745,300,262.32 1,726,815,892.12
Subtotal cash outflows from operating activities 6,861,984,046.43 6,623,502,976.88
Net cash flow from operating activities 1,537,299,958.71 1,555,220,926.90
II. Cash flow from investment activities:
Cash from investment withdrawal 1,593,000,000.00 3,898,500,000.00
Cash from investment income 55,973,702.31 122,289,095.82
Net cash from disposal of fixed assets, intangible assets and other long-term
644,585.13 413,677.00
assets
Net cash from disposal of subsidiaries and other business units
Other cash received related to investment activities
Subtotal cash inflows from investment activities 1,649,618,287.44 4,021,202,772.82
Cash paid for purchase of fixed assets, intangible assets and other long-term
282,289,864.56 272,163,320.83
assets
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Cash paid for investment 2,585,000,000.00 2,693,500,000.00
Net increase in hypothecated loan
Net cash paid for obtaining subsidiaries and other business units
Other cash paid related to investment activities
Subtotal cash outflows from investment activities 2,867,289,864.56 2,965,663,320.83
Net cash flow from investment activities -1,217,671,577.12 1,055,539,451.99
III. Cash flow from financing activities:
Receipts from equity securities 6,650,000.00
Including: Cash received from subsidies’ absorption of minority
6,650,000.00
shareholders’ investment
Cash from borrowings
Other cash received related to financing activities 6,076,177.30
Subtotal cash inflows from financing activities 12,726,177.30
Cash repayments of amounts borrowed
Cash paid for distribution of dividends, profits or interest expenses 474,512,025.00 759,219,240.00
Including: dividends and profits paid by subsidiaries to minority
shareholders
Other cash paid related to financing activities
Subtotal cash outflows from financing activities 474,512,025.00 759,219,240.00
Net cash flow from financing activities -461,785,847.70 -759,219,240.00
IV. Impact of exchange rate movements on cash and cash equivalents -1,042,285.83 535,267.76
V. Net increase of cash and cash equivalents -143,199,751.94 1,852,076,406.65
Plus: Balance of cash and cash equivalents at the beginning of the period 4,029,296,265.50 2,177,219,858.85
VI. Balance of cash and cash equivalents at the end of the period 3,886,096,513.56 4,029,296,265.50
6. Cash flow statement of parent company
Unit: yuan
Item Year 2020 Year 2019
I. Cash flow from financing activities:
Cash from selling commodities or offering labor 7,509,377,698.55 7,234,628,896.12
Refund of tax and levies
Other cash received related to operating activities 251,289,264.69 263,736,687.48
Subtotal cash inflows from operating activities 7,760,666,963.24 7,498,365,583.60
Cash paid for selling commodities or offering labor 3,394,399,263.08 3,102,184,422.96
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Cash paid to and for employees 610,750,252.22 578,818,044.96
Taxes and fees paid 727,573,489.15 768,377,438.19
Other cash paid related to operating activities 1,565,516,700.37 1,539,782,850.67
Subtotal cash outflows from operating activities 6,298,239,704.82 5,989,162,756.78
Net cash flow from operating activities 1,462,427,258.42 1,509,202,826.82
II. Cash flow from investment activities:
Cash from investment withdrawal 1,100,000,000.00 3,330,000,000.00
Cash from investment income 48,392,109.16 113,777,384.17
Net cash from disposal of fixed assets, intangible assets and other long-term
208,339.13 540,568.71
assets
Net cash from disposal of subsidiaries and other business units
Other cash received related to investment activities
Subtotal cash inflows from investment activities 1,148,600,448.29 3,444,317,952.88
Cash paid for purchase of fixed assets, intangible assets and other long-term
205,445,153.06 234,445,701.10
assets
Cash paid for investment 2,260,000,000.00 2,009,500,000.00
Net cash paid for obtaining subsidiaries and other business units
Other cash paid related to investment activities
Subtotal cash outflows from investment activities 2,465,445,153.06 2,243,945,701.10
Net cash flow from investment activities -1,316,844,704.77 1,200,372,251.78
III. Cash flow from financing activities:
Receipts from equity securities
Cash from borrowings
Other cash received related to financing activities 6,076,177.30
Subtotal cash inflows from financing activities 6,076,177.30
Cash repayments of amounts borrowed
Cash paid for distribution of dividends, profits or interest expenses 474,512,025.00 759,219,240.00
Other cash paid related to financing activities
Subtotal cash outflows from financing activities 474,512,025.00 759,219,240.00
Net cash flow from financing activities -468,435,847.70 -759,219,240.00
IV. Impact of exchange rate movements on cash and cash equivalents -1,042,359.16 535,278.90
V. Net increase of cash and cash equivalents -323,895,653.21 1,950,891,117.50
Plus: Balance of cash and cash equivalents at the beginning of the period 3,951,074,513.16 2,000,183,395.66
VI. Balance of cash and cash equivalents at the end of the period 3,627,178,859.95 3,951,074,513.16
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
7. Consolidated statement of change in equity
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Current amount
Unit: yuan
Year 2020
Owners' equities attributable to the owners of parent company
Item
Other equity instruments Total owners'
Other Minority equity
Minus: Special General risk Undistributed equities
Capital stock Capital reserve comprehensive Surplus reserves Other Subtotal
Preferred Perpetual treasury stock reserve preparation profit
Other income
stock bond
I. Ending balance in previous year 949,024,050.00 401,799,332.67 -15,157,634.16 474,516,412.50 5,054,206,720.45 6,864,388,881.46 109,894,468.24 6,974,283,349.70
Plus: changes in accounting policies
Prior period error correction
Business combination under common
control
Other
II. Beginning balance in current year 949,024,050.00 401,799,332.67 -15,157,634.16 474,516,412.50 5,054,206,720.45 6,864,388,881.46 109,894,468.24 6,974,283,349.70
III. Increase/decrease in the current period (less to
1,186,237,933.89 1,186,237,933.89 33,257,945.05 1,219,495,878.94
be filled out with the minus sign "-")
(I) Total comprehensive income 1,660,749,958.89 1,660,749,958.89 26,607,945.05 1,687,357,903.94
(II) Owner’s invested and decreased capital 6,650,000.00 6,650,000.00
1. Common stock invested by the owner 6,650,000.00 6,650,000.00
2. Capital invested by other equity instrument
holders
3. Amount of share-based payment included in the
owner’s equity
4. Other
(III) Profit distribution -474,512,025.00 -474,512,025.00 -474,512,025.00
1. Withdrawal of surplus reserves
2. Withdrawal of general risk preparation
3. Distribution of owners (or shareholders)
4. Other
(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. Carryforward retained earnings in variation of
defined benefit plan
5. Carryforward retained earnings of other
comprehensive income
6. Other
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
(V) Special reserve
1. Draw in this current
2. Use in this current
(VI) Other
Ⅳ. The final balance of current period 949,024,050.00 401,799,332.67 -15,157,634.16 474,516,412.50 6,240,444,654.34 8,050,626,815.35 143,152,413.29 8,193,779,228.64
Last term amount
Unit: yuan
2019
Owners' equities attributable to the owners of parent company
Item
Other equity instruments Total owners'
Other Minority equity
Minus: treasury Special General risk Undistributed equities
Capital stock Capital reserve comprehensive Surplus reserves Other Subtotal
Preferred Perpetual stock reserve preparation profit
Other income
stock bond
I. Ending balance in previous year 949,024,050.00 401,689,801.42 3,456,989.00 474,516,412.50 4,223,611,112.65 6,045,384,387.57 85,463,961.41 6,130,848,348.98
Plus: changes in accounting policies
Prior period error correction
Business combination under common
control
Other
II. Beginning balance in current year 949,024,050.00 401,689,801.42 3,456,989.00 474,516,412.50 4,223,611,112.65 6,045,384,387.57 85,463,961.41 6,130,848,348.98
III. Increase/decrease in the current period (less to
109,531.25 -3,456,989.00 -15,157,634.16 830,595,607.80 819,004,493.89 24,430,506.83 843,435,000.72
be filled out with the minus sign "-")
(I) Total comprehensive income -15,157,634.16 1,589,814,847.80 1,574,657,213.64 24,430,506.83 1,599,087,720.47
(II) Owner’s invested and decreased capital 109,531.25 -3,456,989.00 3,566,520.25 3,566,520.25
1. Common stock invested by the owner
2. Capital invested by other equity instrument
holders
3. Amount of share-based payment included in the
owner’s equity
4. Other
(III) Profit distribution -759,219,240.00 -759,219,240.00 -759,219,240.00
1. Withdrawal of surplus reserves
2. Withdrawal of general risk preparation
3. Distribution of owners (or shareholders) -759,219,240.00 -759,219,240.00 -759,219,240.00
4. Other
(IV) Internal transfer of owner’s equity
1. Capital surplus transfer to paid-in capital (or
capital stock)
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
2. Earned surplus transfer to paid-in capital (or
capital stock)
3. Earned surplus covering the deficit
4. Carryforward retained earnings in variation of
defined benefit plan
5. Carryforward retained earnings of other
comprehensive income
6. Other
(V) Special reserve
1. Draw in this current
2. Use in this current
(VI) Other
Ⅳ. The final balance of current period 949,024,050.00 401,799,332.67 -15,157,634.16 474,516,412.50 5,054,206,720.45 6,864,388,881.46 109,894,468.24 6,974,283,349.70
8. Statement of change in equity of parent company
Current amount
Unit: yuan
Year 2020
Other equity instruments Minus: Other
Item Capital Capital Special Surplus Undistribu Total owners'
Preferred Perpetual treasury comprehensi Other
stock Other reserve reserve reserves ted profit equities
stock bond stock ve income
I. Ending balance in 949,024,05 401,754,349. -15,157,634. 474,516,412. 4,955,109, 6,765,246,200.
previous year 0.00 66 16 50 022.86 86
Plus: changes in
accounting policies
Prior period
error correction
Other
II. Beginning balance in 949,024,05 401,754,349. -15,157,634. 474,516,412. 4,955,109, 6,765,246,200.
current year 0.00 66 16 50 022.86 86
III. Increase/decrease in
the current period (less 1,165,494, 1,165,494,616.
to be filled out with the 616.83 83
minus sign "-")
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
(I) Total comprehensive 1,640,006, 1,640,006,641.
income 641.83 83
(II) Owner’s invested
and decreased capital
1. Common stock
invested by the owner
2. Capital invested by
other equity instrument
holders
3. Amount of
share-based payment
included in the owner’s
equity
4. Other
-474,512,0 -474,512,025.0
(III) Profit distribution
25.00 0
1. Withdrawal of surplus
reserves
2. Distribution of
owners (or shareholders)
3. Other
(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. Carryforward retained
earnings in variation of
defined benefit plan
5. Carryforward retained
earnings of other
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
comprehensive income
6. Other
(V) Special reserve
1. Draw in this current
2. Use in this current
(VI) Other
Ⅳ. The final balance of 949,024,05 401,754,349. -15,157,634. 474,516,412. 6,120,603, 7,930,740,817.
current period 0.00 66 16 50 639.69 69
Last term amount
Unit: yuan
2019
Other equity
instruments Specia
Item Other
Minus: l Undistributed Othe Total owners'
Capital stock Prefe Perpe Capital reserve comprehensive Surplus reserves
Othe treasury stock reserv profit r equities
rred tual income
r e
stock bond
I. Ending balance in
949,024,050.00 401,644,818.41 3,456,989.00 474,516,412.50 4,160,587,339.53 5,982,315,631.44
previous year
Plus: changes in
accounting policies
Prior period
error correction
Other
II. Beginning balance in
949,024,050.00 401,644,818.41 3,456,989.00 474,516,412.50 4,160,587,339.53 5,982,315,631.44
current year
III. Increase/decrease in
the current period (less
109,531.25 -3,456,989.00 -15,157,634.16 794,521,683.33 782,930,569.42
to be filled out with the
minus sign "-")
(I) Total comprehensive
-15,157,634.16 1,553,740,923.33 1,538,583,289.17
income
(II) Owner’s invested 109,531.25 -3,456,989.00 3,566,520.25
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
and decreased capital
1. Common stock
invested by the owner
2. Capital invested by
other equity instrument
holders
3. Amount of
share-based payment
3,566,520.25
included in the owner’s
equity
4. Other
(III) Profit distribution -759,219,240.00 -759,219,240.00
1. Withdrawal of surplus
reserves
2. Distribution of owners
-759,219,240.00 -759,219,240.00
(or shareholders)
3. Other
(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. Carryforward retained
earnings in variation of
defined benefit plan
5. Carryforward retained
earnings of other
comprehensive income
6. Other
(V) Special reserve
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
1. Draw in this current
2. Use in this current
(VI) Other
Ⅳ. The final balance of
949,024,050.00 401,754,349.66 -15,157,634.16 474,516,412.50 4,955,109,022.86 6,765,246,200.86
current period
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
III. Basic Information of the Company
Hangzhou Robam Appliances Co., Ltd. (Robam or the Company) is a limited liability company established by
Hangzhou Robam Home Appliances & Kitchen Sanitary Co., Ltd. by means of overall change on November 7,
2000. Approved by China Securities Regulatory Commission (ZJXK [2010] No.1512) in 2010, the Company
issued 40 million ordinary shares to the public for the first time on November 23, 2010, with a par value of RMB
1 per share and an issue price of RMB 24.00 and the stock code of 002508.
As of December 31, 2020, the capital stock of the Company after several equity changes was RMB 949,024,050.
Unified social credit code: 91330000725252053F, legal representative: Ren Jianhua; address: No.592, Linping Av.,
Yuhang Economic Development Zone, Hangzhou, China.
The Company is mainly engaged in the development, production, sales and comprehensive services of kitchen
appliances in the manufacturing industry. Its main products include range hood, gas hob, sterilizer, steamer, oven,
dishwasher, water purifier, microwave, integrated stove and purification tank.
The main business scope is manufacture, processing, sales, export and import business of range hook, gas stove,
sterilized cupboard, oven, steam oven, microwave oven, dishwasher, water purifier, multifunctional tank,
kitchenware and other kitchen appliances, as well as the technical services of home appliances. (Any project that
needs to be approved by law can only be carried out after getting approval by relevant authorities.)
The combined financial statement of the company includs following six subsidiaries: Beijing Robam Electric
Appliance Sales Co., Ltd., Shanghai Robam Electric Appliance Sales Co., Ltd., Hangzhou Mingqi Appliances Co.,
Ltd., Dize Appliances (Shanghai) Co., Ltd., Shengzhou Kinde Intelligent Appliances Co., Ltd.(Shengzhou
Kinde), Hangzhou Robam Fuchuang Investment Management Co., Ltd. In this period, there are seven
subsidiariesa of consolidation scope, with a new company entered, Zhejiang Cooking Future Technology Co.,
Ltd.(Cooking Future).
IV. Preparation basis of financial statements
1. Preparation basis
The financial statements of the Company are prepared on the basis of the going-concern and the accounting
policy and accounting estimate in “IV. Significant accounting policy and accounting estimate” according to
the actual transactions and items, the Accounting Standards for Business Enterprises promulgated by the
Ministry of Finance and relevant provisions.
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
2. Going concern
After comprehensive consideration to the macro policy risks, market operation risks, Company’s current and
long-term profitability, solvency, financial flexibility, intention of the management to change its business
policy and other factors, the Company's management believes that the Company has no issue affecting the
Company's going-concern ability within 12 months from the end of the report.
I、 Significant accounting policy and accounting estimate
The specific accounting policies and accounting estimates formulated by the Company according to the
actual production and operation characteristics include the operating cycle, the recognition and measurement
of bad debt provision of receivables, the measurement of issued inventory, the classification and depreciation
of fixed assets, the amortization of intangible assets, the capitalization conditions of R&D expenses, the
income recognition and measurement, etc.
1. Statement of compliance with Accounting Standards for Business Enterprises
The Company’s financial statements comply with the requirements of the ASBE and truly and completely
reflect the Company's financial position, business performance, cash flows and other relevant information.
2. Accounting period
The fiscal year of the Company runs from January 1 to December 31 of each calendar year.
3. Operating cycle
The Company’s normal operating cycle is one year (12 months).
4. Bookkeeping currency
The bookkeeping currency of the Company is RMB.
5. Accounting process method of business combination involving enterprises under and not under common
control
The assets and liabilities acquired by the Company as the combining party through business combination
under common control are measured on the combination date according to the book value of the combined
party in the consolidated statements of the final controlling party. The difference between the book value of
the net assets obtained and the consideration paid for the combination is adjusted against capital reserve; if
the capital reserve is not sufficient to absorb the difference, the retained earnings shall be adjusted.
The acquiree's identifiable assets, liabilities and contingent liabilities acquired through business combination
not under common control are measured at fair value on the acquisition date. The combined cost is the fair
value of the cash or non-cash assets paid, liabilities incurred or assumed and equity securities issued by the
acquirer on the acquiring date for acquisition of the control right of the acquiree, as well as the sum of direct
costs for the business combination (for the business combination realized by steps through several times, the
combined cost is the sum of the costs of each transaction). Where the combined cost exceeds the acquirer’s
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
interest in the fair value of the acquiree’s net identifiable assets, the difference is recognized as goodwill;
where the combined cost is less than the acquirer’s interest in the fair value of the acquiree’s net identifiable
assets, the acquirer first reassesses the fair values of the acquiree's identifiable assets, liabilities and
contingent liabilities in combination and the fair values of non-cash assets or equity securities issued for
consolidation consideration. If after reassessment, the combined cost is still less than the acquirer's interest in
the fair value of the acquiree’s net identifiable assets, the difference is included in the current non-operating
income.
6. Methods for preparing consolidated financial statements
The Company includes all subsidiaries under its control in the consolidated financial statements.
In preparing the consolidated financial statements, where the accounting policies and the accounting periods
of the Company and subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in
accordance with the accounting policies and the accounting period of the Company.
All significant internal transactions, current balances and unrealized profits in the consolidation scope shall
be set off when the consolidated statements are prepared. The share of the owner's equity of the subsidiaries
not attributable to the parent company and current net profits and losses, other comprehensive income, and
the share of other comprehensive income attributable to the minority interests shall be presented in the
consolidated financial statements under “minority equity, minority interest income, other comprehensive
income attributed to minority shareholders and total comprehensive income attributed to minority
shareholders”.
For a subsidiary in the business combination under common control, its business performance and cash flows
have been consolidated since the beginning of the consolidation year into the consolidated financial
statements. When preparing and comparing the consolidated financial statements, the Company shall adjust
the relevant items of the previous year's financial statements, which shall be regarded as the subject of the
consolidated report that has been in existence since the beginning of the control by the final controlling party.
For a subsidiary in the business combination not under common control, its business performance and cash
flows shall be incorporated into the consolidated financial statements from the date of the Company's
acquisition of control. In preparing the consolidated financial statements, the financial statements of the
subsidiary shall be adjusted on the basis of the fair values of the identifiable assets, liabilities and contingent
liabilities as determined on the acquiring date.
If the Company acquires the equity of the acquiree by steps through several deals and finally forms business
combination not under common control, in the compilation of the consolidated statements, as for the equity
interests held in the acquiree before the acquiring date, they shall be re-measured according to their fair
values at the acquiring date; the difference between their fair values and book value shall be recorded into the
investment gains for the period including the acquiring date. Other related comprehensive gains in relation to
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
the equity interests held in the acquiree under the equity accounting before the acquiring date, and the
changes in owners’ equity other than net profit and loss, other comprehensive income and profit distribution
shall be carried forward into profit and loss on investments in the period of the acquiring date, except for
other comprehensive income from the change caused by the remeasurement of the net liabilities or net assets
of the defined benefit plan by the investee.
In consolidated financial statements, when the Company disposes of part of long-term equity investment in
the subsidiary before losing control rights, the difference between the disposal price and the long-term equity
investment disposed of relative to the share of the net assets to be enjoyed and continuously calculated from
the acquiring date or combination date is adjusted against capital premium or capital stock premium; if the
capital reserve is not sufficient to absorb the difference, the retained earnings shall be adjusted.
When the Company loses the control right over the investee due to disposal of part of the equity investment
or other reasons, the residual equity shall be re-measured at its fair value on the date of losing the control
right in preparing the consolidated financial statements. The difference between the sum of the consideration
acquired by disposal of the equity and the fair value of the residual equity, and the share of the net assets of
the original subsidiary continuously calculated from the acquiring day or combination date according to the
original shareholding ratio, shall be included in the profit and loss on investments in the period of lose of the
control right and written down against the goodwill. Other comprehensive income related to the equity
investment of the original subsidiary is transferred into the current profit and loss on investments in the
period of loss of control right.
7. Classification of joint venture arrangement and accountant arrangement method of joint operation
The Company’s joint venture arrangements include cooperative enterprise.
The investment in the cooperative enterprise is subject to the accounting treatment by the Company as the
joint venture party according to the Accounting Standards for Business Enterprises No. 2 - Long-term Equity
Investments.
8. Cash and cash equivalents
The cash in the cash flow statement of the Company refers to the cash on hand and deposits readily available
for payment. The cash equivalents represent the short-term (no more than three months) and highly liquid
investments that are readily convertible into known amounts of cash and that are subject to an insignificant
risk of change in value.
9. Foreign currency business and translation of financial statements denominated in foreign currencies
(1) Foreign currency transactions
The foreign currency transaction of the Company is converted to Renminbi at the spot rate on the transaction
date. The foreign currency project, on the balance sheet date, is converted to Renminbi at the spot rate. The
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
resulting converted difference is included in current profit and loss except the balance of exchange of special
foreign currency loan related to acquisition or construction of assets meeting the capitalization conditions.
Non-monetary items in foreign currency measured at fair value are converted by the spot rate on the
recognition date of the fair value. The difference between the bookkeeping currency amount after conversion
and the original bookkeeping currency amount is recorded into the capital reserve if belonging to
non-monetary items in foreign currency of available-for-sale financial assets, or recorded into current profit
and loss if belonging to non-monetary items in foreign currency measured at fair value and with the changes
included in current profit and loss. Non-monetary items in foreign currency measured by the historical cost
are still converted by the spot rate on the transaction date without changing the RMB amount.
(2) Translation of financial statements denominated in foreign currencies
The assets and liabilities in the balance sheet of a foreign operation are converted at the spot rate on the
balance sheet date; all items of owner’s equity, except the "undistributed profit", are converted at the spot
rate at the time of occurrence. The income and expense items in the income statement of a foreign operation
are converted at the approximate exchange rate of the spot rate on the date of transaction. The converted
difference of the foreign currency financial statements generated according to the above translation shall be
presented in other comprehensive income. For a foreign currency monetary item which constitutes a net
investment in overseas operations, the exchange difference resulting from the change of exchange rate shall
be presented as other comprehensive income in the compilation of the consolidated financial statements.
Upon disposal of an overseas operation, other comprehensive income related to the overseas operation shall
be transferred to the current profit and loss according to the proportion.
The approximate exchange rate of the spot exchange rate on the date of the cash flows shall be based on for
the translation of cash flows in a foreign currency and in an overseas subsidiary. The effect of a change in
exchange rate on cash shall be separately presented in the cash flow statement.
10. Financial assets and financial liabilities
The Company recognizes a financial asset or financial liability when becoming a party of the financial
instrument contract.
(1) Financial assets
1) Classification, recognition basis and measurement method for financial assets
According to the business model of managing financial assets and the contractual cash flow characteristics of
financial assets, the financial assets of the Company are classified into: financial assets measured at the
amortized cost; financial assets measured at fair value of which changes are recorded into other
comprehensive income; financial assets at fair value through profit or loss (“FVTPL”).
The financial asset of the Company that meets the following conditions simultaneously is classified as
financial asset measured at the amortized cost: ① The business model for managing the financial asset is to
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
collect contractual cash flows. ② According to the contract terms of the financial asset, the cash flow
generated on a specific date is only for the payment of the principal and the interest based on the outstanding
principal amount. Such financial asset is initially measured at the fair value and the relevant transaction costs
are charged to initially recognized amount; further measurement is made at the amortized cost. With the
exception of the hedged item designated as such, the difference between the initial amount and the amount
due shall be amortized in accordance with the effective interest method, and the gains and losses arising from
the amortization, impairment, exchange gains and losses and the derecognition shall be recorded into the
current profit and loss.
The financial asset of the Company that meets the following conditions simultaneously is classified as the
financial asset measured at fair value of which changes are recorded into other comprehensive income: ①
The business model for managing such financial assets is to collect contractual cash flows and to sell the
financial asset. ② According to the contract terms of the financial asset, the cash flow generated on a
specific date is only for the payment of the principal and the interest based on the outstanding principal
amount. Such financial asset is initially measured at the fair value and the relevant transaction costs are
charged to initially recognized amount. With the exception of the hedged item designated as such, the other
gains or losses incurred from such financial asset, except for credit impairment losses or gains, exchange
gains and losses and interest on the financial asset calculated by effective interest method, shall be included
in other comprehensive income; when the financial asset is derecognized, the accumulated gains or losses
previously recorded in other comprehensive income should be transferred from other comprehensive income
in current profit and loss.
The Company recognizes interest income by effective interest method. The interest income is determined by
multiplying the book balance of a financial asset by the effective interest rate, except as follows: ① For an
acquired or originated financial asset with credit impairment, the interest income shall be determined
according to the amortized cost of the financial asset and the effective interest rate adjusted by credit from
the initial recognition. ② For an acquired or originated financial asset with credit impairment, but which
has credit impairment in the subsequent period, the interest income of the financial asset shall be determined
according to the amortized cost and the effective interest rate of the financial asset in the subsequent period.
The Company designates the non-transactional equity instruments as the financial assets measured at fair
value of which changes are recorded into other comprehensive income. Such designation, once made, shall
not be revoked. The non-transactional equity instruments measured at fair value of which changes are
recorded into other comprehensive income are initially measured at the fair value and the relevant transaction
costs are charged to initially recognized amount; except for the dividends (excluding the part of investment
cost recovery) recorded into the current profit and loss, other related gains and losses (including exchange
gains and losses) are recorded into other comprehensive income and shall not be transferred into the current
profit and loss subsequently. Upon derecognition, the accumulated gains or losses previously recorded in
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
other comprehensive income should be transferred from other comprehensive income to the retained
earnings.
The above financial assets measured at the amortized cost and the financial assets measured at fair value of
which changes are recorded into other comprehensive income are classified as financial assets at fair value
through profit or loss (“FVTPL”). Such financial asset is initially measured at the fair value and the relevant
transaction costs are directly charged to the current profit and loss. Gains or losses on such financial assets
are charged to the current profit and loss.
The financial assets recognized by the Company through business combination not under common control or
constituted by contingent consideration are classified as financial assets at fair value through profit or loss
(“FVTPL”).
2) Recognition basis and measurement method for transfer of financial assets
The financial asset is derecognized when meeting any of the following conditions: ① The contract right to
charge the cash flow of the financial asset is terminated; ② The financial asset has been transferred and
almost all risks and remuneration of the financial asset ownership are transferred; ③ The financial asset has
been transferred and the Company does neither transfer nor retain almost all risks and remuneration of the
financial asset ownership but gives up the control over the financial asset.
If the overall transfer of the financial asset meets the derecognition conditions, the difference of the book
value of the transferred financial asset from the sum of the consideration received and the derecognized
amount in the cumulative amount of the fair value changes originally included in other comprehensive
income (according to the contract terms of the financial asset transferred, the cash flow generated on a
specific date is only for the payment of the principal and the interest based on the outstanding principal
amount) is charged to the current profit and loss.
If the partial transfer of the financial asset meets the derecognition conditions, the overall book value of the
transferred financial asset, between the derecognized part and non-derecognized part, is allocated according
to the respective relative fair value. The difference of the sum of the consideration received from transfer and
the derecognized amount in the cumulative amount of the fair value changes in the derecognized part
originally included in other comprehensive income (according to the contract terms of the financial asset
transferred, the cash flow generated on a specific date is only for the payment of the principal and the interest
based on the outstanding principal amount) from the overall book value of the above-mentioned financial
asset allocated is charged to current profit and loss.
(2) Financial liabilities
1) Classification, recognition basis and measurement method for financial liabilities
Financial liabilities, upon initial recognition, are divided into those measured with fair value and with the
changes included in current profit and loss and other financial liabilities.
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Financial liabilities measured with fair value and with the changes included in current profit and loss,
including the trading financial liabilities and the financial liabilities measured with fair value and with the
changes included in current profit and loss upon initial recognition. The financial liability is subsequently
measured with the fair value. The gain or loss formed from the changes in the fair value as well as the
dividends and interest expenditure related to the financial liability is charged to current profit and loss.
The other financial liabilities are subsequently measured with the amortized cost by means of effective
interest method. Except for the following items, the financial assets are classified as the financial liabilities
measured at amortized cost: ① Financial liabilities measured with fair value and with the changes included
in current profit and loss, including the trading financial liabilities (including derivative instruments
belonging to financial liabilities) and the financial liabilities measured with fair value and with the changes
included in current profit and loss. ② Financial liabilities formed by the transfer of financial assets not
conforming to the derecognition conditions or by continuing to involve in the transferred financial assets. ③
Financial guarantee contracts that do not fall under the above ① or ② circumstances, and loan
commitments to lend at a below-market rate that do not fall under the above ① circumstance.
The financial liabilities recognized by the Company as the acquirer through business combination not under
common control or formed by contingent consideration are classified as financial liabilities at fair value
through profit or loss for accounting.
2) Derecognition of financial liabilities
The Company derecognizes a financial liability (or part of it) only when the underlying present obligation (or
part of it) is discharged. An agreement between the Company and a creditor to replace the existing financial
liability with a new one with substantially different terms is accounted for as the derecognition of the
existing financial liability and the recognition of a new financial liability. When the Company makes material
alteration to the contract terms of the existing financial liability (or part of it), it derecognizes the existing
financial liability (or part of it) and recognizes a new one according to the altered terms. The difference
between the book value of the derecognized part and the consideration paid is charged to current profit and
loss.
(3) Fair value determination method of financial assets and financial liabilities
The fair value of the financial assets and financial liabilities is measured by the Company at the prices in the
principal market. If no principal market exists, the fair value is measured at the most favorable market price
by valuation techniques that are applicable at the time and are supported by sufficient data and other
information available. The input value used in the fair value measurement is divided into three levels. That is,
the input value of the first level is the unadjusted quotation of the same assets or liabilities on the active
market that can be obtained on the measurement day. The input value of the second level is the direct or
indirect observable input value of related assets or liabilities other than the input value of the first level. The
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input value of the third level is the non-observable input value of the relevant assets or liabilities. The
Company prefers the input value of the first level and finally the input value of the third level. The level of
the measurement results of the fair value is determined by the lowest level of the input value that is of great
significance to the measurement of fair value as a whole.
The Company measures the equity instrument investment at fair value. However, in limited cases, if the
recent information used to determine the fair value is insufficient, or the possible estimated amount of the
fair value is widely distributed, and the cost represents the best estimate of the fair value within the range, the
cost may represent the appropriate estimate of the fair value within the range.
(4) Offset of financial assets and financial liabilities
The financial assets and financial liabilities of the Company are listed respectively in the balance sheet and
no mutually offset. However, when the following conditions are met at the same time, they are listed as net
amount after offset in the balance sheet: (1) the Company has the legal right to offset the recognized amount
and may execute the legal right currently; (2) the Company plans to settle with net amount or realize the
financial asset and pay off the financial liability simultaneously.
(5) Distinction between financial liabilities and equity instruments and relevant treatment method
The Company distinguishes between a financial liability and an equity instrument in accordance with the
following principles :(1) If the Company cannot unconditionally avoid performing a contractual obligation
by delivering cash or other financial assets, the contractual obligation is defined as a financial liability.
Although some financial instruments do not explicitly contain terms and conditions for the obligation to
deliver cash or other financial assets, they may indirectly form contractual obligations through other terms
and conditions. (2) If a financial instrument is to be settled by or with the Company's equity instrument, it is
necessary to consider whether the Company's equity instrument used to settle the financial instrument is to
be used as a substitute for cash or other financial assets or to give the holder of the instrument a residual
equity in the assets of the issuer after deducting all liabilities. In the former case, the financial instrument is a
financial liability of the issuer; in the latter case, the instrument is the issuer’s equity instrument. If it is
stipulated in a financial instrument contract that the Company shall or may settle the financial instrument by
its own equity instruments in some cases, in which, the amount of the contractual rights or contractual
obligations is equal to the number of its equity instruments available or to be delivered multiplied by its fair
value at the time of settlement, the contract is classified as a financial liability, whether the amount of the
contractual rights or obligations is fixed or whether it is based in whole or in part on changes in variables
(such as the interest rate, the price of a commodity or the price of a financial instrument) other than the
market price of the Company's equity instruments.
In classifying a financial instrument (or its components) in the consolidated statements, the Company takes
into account all terms and conditions agreed between the members of the Company and the financial
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
instrument holder. The instrument shall be classified as a financial liability if the Company as a whole is
obligated to deliver cash, other financial assets, or settle accounts in other ways that cause the instrument to
become a financial liability as a result of the instrument.
The interest, dividends, profits or losses related to a financial instrument or its components classified as a
financial liability, as well as gains or losses from redemption or refinancing, shall be recorded into the
Company's current profit and loss.
The issuance (including refinancing), repurchase, sales or cancellation of financial instrument or its
components classified as equity instruments is handled as the equity changes, and the fair value change of
the equity instruments is not recognized.
(6) Impairment of financial instruments
The Company withdraws the provision for impairment for the financial assets measured at the amortized cost,
financial assets measured at fair value of which changes are recorded into other comprehensive income, and
financial guarantee contracts based on the expected credit loss, and recognizes the credit impairment loss.
The expected credit loss refers to the weighted average credit loss of financial instruments weighted by the
risk of default. Credit loss refers to the difference between all contract cash flows discounted by the
Company at the original effective interest rate and receivable according to the contract and all expected cash
flows received, that is, the present value of all cash shortage. The financial assets purchased or originated
that have suffered from credit impairment shall be discounted at the effective interest rate of the financial
assets through credit adjustment.
The provision for loss on the accounts receivable from standard transactions in the income guidelines and not
containing material financing elements shall be measured by the Company by simplified measurement
according to the amount equivalent to the expected credit loss in the whole duration.
For the financial assets purchased or originated that have suffered from credit impairment, only the
cumulative changes of the expected credit loss in the whole duration upon initial recognition are recognized
as provision for loss on the balance sheet date. On each balance sheet date, the amount of change in the
expected credit loss over the entire duration is recorded as an impairment loss or gain in the current period.
Favorable changes in the expected credit loss are recognized as impairment gains even if the expected credit
loss for the entire duration recognized on the balance sheet date is less than the amount of overdue credit loss
reflected in the estimated cash flow upon initial recognition.
For the financial assets other than those purchased or originated that have suffered from credit impairment by
simplified measurement, the Company shall evaluate whether the credit risk of relevant financial instrument
has increased significantly upon initial recognition on each balance sheet date and measure its provision for
loss and recognize the expected credit losses and changes respectively in the following cases:
1) If the credit risk of the financial instrument has not increased significantly upon initial recognition and
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
is in the first stage, its provision for loss is measured according to the amount equivalent to the expected
credit loss of the financial instrument in the next 12 months, and the interest income is calculated
according to the book balance and the effective interest rate.
2) If the credit risk of the financial instrument has significantly increased without credit impairment upon
initial recognition and is in the second stage, its provision for loss is measured according to the amount
equivalent to the expected credit loss of the financial instrument in the whole duration, and the interest
income is calculated according to the book balance and the effective interest rate.
3) If the financial instrument has suffered from credit impairment upon initial recognition and is in the
third stage, its provision for loss is measured according to the amount equivalent to the expected credit
loss of the financial instrument in the whole duration, and the interest income is calculated according to
the amortized cost and the effective interest rate.
The amount increased or written back of the provision for credit loss of the financial instrument is recorded
as an impairment loss or gain in the current period. Except for financial assets measured at fair value of
which changes are recorded into other comprehensive income, the book balance of financial assets is offset
by the provision for credit losses. For financial assets measured at fair value of which changes are recorded
into other comprehensive income, the Company recognizes its provision for credit losses in other
comprehensive income and does not reduce the book value of the financial assets on the balance sheet.
If the Company has measured the provision for loss in the previous accounting period according to the
amount equivalent to the expected credit loss of the financial instrument in the whole duration but the credit
risk of the financial instrument has no longer been increased significantly upon initial recognition on the
current balance sheet date, the Company shall measure the provision for loss on the financial instrument on
the current balance sheet date according to the amount equivalent to the expected credit loss in the next 12
months and the resulting amount written back from the provision for loss is recorded as an impairment gain
in the current period.
①Significant increase in credit risk
By means of the reasonable and valid forward-looking information available, the Company determines
whether the credit risks of financial instruments have increased significantly upon initial recognition by
comparing the default risk of the financial instruments on the balance sheet date with the default risk on the
initial recognition date. For financial guarantee contracts, when the Company applies the impairment
provisions on financial instruments, the date on which the Company becomes a party to make an irrevocable
commitment shall be the initial recognition date. The Company will consider the following factors when
assessing whether the credit risk has increased significantly: whether there are significant changes in the
actual or overdue operating results of the debtor; whether there has been a significant adverse change in the
regulatory, economic or technical environment in which the debtor resides; whether there are significant
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changes in the value of collateral as collateral for debt or in the quality of guarantees or credit enhancements
provided by third parties, as well as the probability that these changes are expected to reduce the financial
incentive for the debtor to repay on the terms specified in the contract or affect the breach of contract;
whether there has been a significant change in the expected performance and repayment behavior of the
debtor; whether the Company's credit management methods for financial instruments have changed.
For a financial instrument with low credit risk on the balance sheet date, the Company assumes that the
credit risk has not increased significantly upon the initial recognition. The financial instrument is considered
to have a low credit risk if the financial instrument has relatively low default risk, and the borrower has a
strong ability to fulfill its contractual cash flow obligations in a short term, which will not necessarily
reduced even if there are adverse changes in the economic situation and operating environment in a long
term.
②Financial assets that have suffered from credit impairment
When one or more events occur that adversely affect the expected future cash flow of a financial asset, the
financial asset becomes a financial asset with credit impairment. The evidence for credit impairment of
financial assets includes: the debtor has incurred major financial difficulties; the debtor breaches a contract,
such as by default or exceeding payment of default or late payment of interest or principal; the creditor gives
the debtor concessions that he would not make under any circumstances for economic or contractual reasons
related to the debtor's financial difficulties; the debtor is likely to go bankrupt or undergo other financial
restructuring; the financial difficulties of the issuer or debtor cause the active market for the financial asset to
disappear; a substantial discount at which a financial asset is purchased or originated reflects the fact of
credit loss.
The credit impairment of the financial asset may be caused by the joint action of the above events, and may
not necessarily be caused by the events that can be identified separately.
③Recognition of credit losses
The Company evaluates the expected credit losses of financial instruments on the basis of individual and
combined instruments, and in assessing the expected credit losses, takes into account reasonable and valid
information about past events, current conditions and projections of future economic conditions.
Based on the characteristics of common credit risks, the Company divides financial instruments into different
combinations. The individual assessment standards and the characteristics of the combination credit risks of
relevant financial instruments are detailed in the accounting policies of relevant financial instruments.
The Company shall determine the expected credit losses of the relevant financial instruments in the
following ways:
In the case of a financial asset, the credit loss is the present value of the difference between the contract cash
flow receivable by the Company and the expected cash flow receivable;
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
In the case of a financial guarantee contract, the credit loss is the present value of the difference between the
estimated amount of payment to be made by the Company in respect of any credit loss incurred under the
contract, and the amount that the Company expects to receive from the contract holder, debtor or anywhere
else;
In the case of a financial asset with credit impairment on the balance sheet date but not purchased or
originated with credit impairment, the credit loss is the difference between the book balance of the financial
asset and the present value of the estimated future cash flow discounted at the original effective interest rate.
11. Notes receivable
Based on the acceptor credit risk of notes receivable as a common risk feature, the Company divides the
notes receivable into different combinations and determines the expected credit loss accounting estimation
policy:
Basis for recognition of
Combination classification Accrual method
combination
The Company believes that the banker's acceptance bill held
Banker's acceptance bill The acceptor is a banking
does not have significant credit risk and will not cause major
combination financial institution
losses due to bank default.
The acceptor is a financial
company or other The Company measures the provision for bad debt of
Commercial acceptance bill
non-bank financial commercial acceptance bills receivable according to the
combination
institution or enterprise expected credit loss of the entire duration
unit
12. Accounts receivable
The provision for loss on the accounts receivable (whether or containing material financing elements) from
standard transactions in the Accounting Standards for Enterprises No.14 - Revenues and on the lease
receivables regulated in the Accounting Standards for Enterprises No. 21 - Lease shall be measured by the
Company by simplified measurement according to the amount equivalent to the expected credit loss in the
whole duration.
The Company shall evaluate whether the credit risks of accounts receivable have increased significantly on
the basis of a single financial instrument or a financial instrument combination. The Company makes single
assessment of the credit risks for the accounts receivable with significantly different credit risks and the
following features: accounts receivable in dispute with the other party or involving litigation or arbitration;
accounts receivable with obvious signs that the debtor is likely to be unable to perform the repayment
obligations. It is feasible for the Company to evaluate whether the credit risks increase significantly on the
basis of financial instrument combination if it is unable to obtain sufficient evidence for significant increase
in credit risks at reasonable cost at the level of single financial instrument. The Company can classify
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financial instruments based on the characteristics of common credit risk in assessment based on the financial
instrument combination.
The Company divides the accounts receivable into the following combinations based on their credit risk
characteristics:
Combination classification Basis for recognition of combination Accrual method
Credit loss withdrawn on accounts The receivables with the same aging have similar
Expected credit loss rate
receivable by aging analysis method credit risk characteristics
Related parties in the consolidation Funds of subsidiaries in the consolidation scope
Generally no expected credit loss
scope of controlling shareholders
If there is objective evidence that a credit impairment has occurred in an account receivable, the Company
shall withdraw the provision for bad debts for that account receivable and recognize the expected credit loss.
For the accounts receivable with the credit loss drawn by aging analysis method, based on the actual credit
losses of the previous year and taking into account the forward-looking information of the current year, the
Company's accounting estimation policy for measuring expected credit losses is as follows:
Aging Expected credit loss rate
Within 1 year 5.00%
1-2 years 10.00%
2-3 years 20.00%
3-4 years 50.00%
4-5 years 80.00%
More than 5 years 100.00%
The Company shall calculate the expected credit loss of the accounts receivable on the balance sheet date. If
the expected credit loss is greater than the book amount of the provision for impairment of current accounts
receivable, the Company recognizes the difference as the provision for impairment of accounts receivable,
debits the "impairment loss" and credits the "provision for bad debt". On the contrary, the Company
recognizes the difference as an impairment gain and records the opposite.
Where the Company has actually incurred a credit loss and the relevant accounts receivable are determined
to be irrecoverable, and the write-off is approved, the "provision for bad debt" shall be debited and the
"accounts receivable" shall be credited according to the approved write-off amount. If the write-off amount is
greater than the provision for loss which has been calculated, the "credit impairment loss" shall be debited
for the difference on schedule.
13. Receivables financing
The financial asset of the Company that meets the following conditions simultaneously is classified as the
financial asset measured at fair value of which changes are recorded into other comprehensive income: the
business model for managing such financial assets is to collect contractual cash flows and to sell the financial
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asset; according to the contract terms of the financial asset, the cash flow generated on a specific date is only
for the payment of the principal and the interest based on the outstanding principal amount.
The Company transfers the accounts receivable held in the form of discount or endorsement. Such accounts
receivable with frequent business and large amount involved are measured at fair value of which changes are
recorded into other comprehensive income according to relevant regulations in the financial instrument
standards if the management business model is to collect and sell contractual cash flows.
14. Other receivables
The Company divides the process of credit impairment of accounts receivable-others into three stages.
Different accounting methods for accounts receivable-others impairment in different stages:
(1) the credit risks has not increased significantly upon initial recognition (first stage)
For the financial instruments in this stage, the Company should measure the loss provision according to the
expected credit loss in the next 12 months.
The Company takes aging as the credit risk characteristic to group other receivables and measures them on
the basis of combination, which is equivalent to the expected credit loss in the next 12 months.
(2) The credit risk has significantly increased without credit impairment after initial recognition (second
stage)
For the financial instruments in this stage, the Company should measure the provision for loss according to
the expected credit loss in the whole duration.
(3) Credit impairment after initial recognition (third stage)
For the financial instruments in this stage, the Company should measure the provision for loss according to
the expected credit loss in the whole duration.
15. Inventory
The Company's inventory mainly includes low priced and easily worn articles, raw materials, work in
process, merchandise inventory and goods shipped in transit.
The perpetual inventory system is adopted for the inventories and the inventories are price according to the
actual cost when obtained; the cost of the inventories is recognized by the weighted average method when
received or issued. The low priced and easily worn articles and packages are amortized by one-time
writing-off method.
The year-end inventory is priced according to the cost of inventories or net realizable value, whichever is
lower. In case of inventory damage, full or partial obsolescence or selling price below the cost, the
non-recoverable part of its cost is expected and the inventory falling price reserves are withdrawn. The
inventory falling price reserves of the merchandise inventory and raw materials are withdrawn according to
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
the difference between the cost of a single inventory item and its net realizable value; for the inventories with
large quantity and low unit price, the inventory falling price reserves are withdrawn according to the
inventory category.
For the merchandise inventory, work in process, materials for sale and other merchandise inventories directly
used for sale, the net realizable value is recognized by the amount of the estimated sale price of the
inventories subtracted by the estimated selling expenses and related taxes; for the material inventory
possessed for production, the net realizable value is recognized by the amount of the estimated sale price of
the finished products subtracted by the estimated cost about to occur in completion, estimated selling
expenses and related taxes.
16. Contract assets
(1) Recognition and standard of contract assets
Contract assets refers to the Company has the right to charge consideration when transferred commodity to
customer, and that right depends on something other than time. If the Company sells two clearly
distinguishable items to the Customer and is entitled to receive payment for the delivery of one item, but the
receipt of such payment is contingent on the delivery of the other item, the Company shall regard the right as
contract asset.
(2) Recognition and accounting method for expected credit loss of contract assets
Recognition method for expected credit loss of contract assets refers to the related description above 10.
Financial asset and financial liabilities, 11. Notes receivable and 12. Accounts receivable
The Company shall calculate the expected credit loss of contract assets on the balance sheet date. If the
expected credit loss is greater than the book amount of the provision for impairment of current contract
assets, the Company recognizes the difference as the provision for impairment, debits the "assets impairment
loss" and credits the "allowances for contract assets impairment". On the contrary, the Company recognizes
the difference as an impairment gain and records the opposite.
Where the Company has actually incurred a credit loss and the relevant contract assets are determined to be
irrecoverable, and the write-off is approved, the "allowances for contract assets impairment" shall be debited
and the "contract assets" shall be credited according to the approved write-off amount. If the write-off
amount is greater than the provision for loss which has been calculated, the "assets impairment loss" shall be
debited for the difference on schedule.
17. Contract cost
(1) Recognition method for assets related to contract costs
The Company's assets related to contract costs include contract performance costs and contract acquisition
costs.
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Contract performance cost refers to the cost incurred by the Company for contract fulfillment. It shall be
recognized as assets in the contract when it is not included in the scope of accounting standards for other
enterprises and simultaneously meets the following conditions: the costs is directly related to a current or
expected contract, including direct labor, direct materials, manufacturing expenses (or similar expenses),
costs identified to be borne by the customer and any other costs incurred solely as a result of the contract; the
cost takes up resources of the Company to fulfill its obligatory performance and agreement; the cost is
expected to be withdrawn.
Contract acquisition costs refer to the incremental cost incurred by the Company to acquire contract and
expected to be withdrawn, being recognized as assets in the contract acquisition; if the amortization period of
assets is within one year, it shall be included in the current profits and losses. Incremental cost refers to the
costs (such as sales commissions, etc.) that would not incur without contract acquisition by the Company.
Other expenses incurred by the Company to acquire contract, other than the incremental costs expected to be
withdrawn ( such as the incurred travel expenses regardless of contract acquisition), shall be included in the
current profits and losses. However, costs identified to be borne by the customer are excluded.
(2) Amortization of assets related to contract costs
The assets of the Company related to the contract cost shall be amortized on the same basis with the revenue
recognition of commodity related to assets, and shall be included in the current profits and losses.
(3) Impairment of assets related to contract costs
Once any loss of asset impairment related to contract costs is recognized, the Company shall firstly
determine the impairment loss of other assets which are confirmed in accordance with the accounting
standards of other related enterprises and related to contract; and then, if the book value of the asset is higher
than the difference between the remaining consideration expected to be obtained by the Company from the
transfer of commodity related to the asset and the estimated cost to be incurred for the transfer of commodity,
the excessed balance shall be made provision for impairment and recognized as an assets impairment loss.
When the former impairment factors changes, which makes the previous balance higher than the book value
of assets, the asset impairment reserves that have been originally withdrawn will be reversed and included in
the current profits and losses. The book value of the asset after the reversal shall not exceed the book value
of the asset on the date of reversal if no provision for impairment is assumed.
18. Long-term equity investment
The Company's long-term equity investment mainly consists of investment in subsidiaries, joint ventures and
cooperative enterprises.
The Company's judgment on common control is based on the collective control of the arrangement by all
participants or a combination of participants, and the policy on the activities related to the arrangement must
be agreed upon by all participants in the collective control of the arrangement.
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When the Company directly or indirectly owns more than 20% (including) but less than 50% voting rights of
the investee through its subsidiaries, it is generally considered to have a significant impact on the investee.
When the Company owns less than 20% voting rights of the investee, it shall be judged to have a significant
impact on the investee with comprehensive consideration to dispatching representatives in the board of
directors of the investee or similar authority, participating in the formulation process of the financial and
business policy of the investee, conducting important transactions with the investee, dispatching
management to the investee or providing key technical data for the investee.
The company that forms control over the investee shall be a subsidiary of the Company. For the long-term
equity investment acquired through business combination under common control, the share of the book value
of the net assets of the combined party in the consolidated statements of the final controlling party, on the
combination date, is regarded as the initial cost of the long-term equity investment. If the book value of the
net assets of the combined party on the combination date is negative, the long-term equity investment cost
shall be determined as zero.
If the Company acquires the equity of the investee under common control by steps through several deals,
finally forms business combination and such deals belong to package deal, the deals shall be subject to
accounting treatment as a deal to obtain the control right. If the deals do not belong to the package deal, the
share of the book value of the net assets of the combined party in the consolidated financial statements of the
final controlling party, on the combination date, is regarded as the initial cost of the long-term equity
investment. The difference between the initial cost of the long-term equity investment and the sum of the
book value of the long-term equity investment before the combination plus the book value of the new
consideration for shares on the combination date is adjusted against capital reserve; if the capital reserve is
not sufficient to absorb the difference, the retained earnings shall be written down.
For the long-term equity investment acquired through business combination not under common control, the
combined cost is the initial investment cost.
If the Company acquires the equity of the investee not under common control by steps through several deals,
finally forms business combination and such deals belong to package deal, the deals shall be subject to
accounting treatment as a deal to obtain the control right. If the deals do not belong to the package deal, the
sum of the book value of the equity investment originally held and newly increased investment cost shall be
considered as initial cost of the investment that calculates according to cost method. If the equity held before
the acquiring date is calculated by the equity method, other comprehensive income calculated by the equity
method is not adjusted and shall be subject to accounting treatment when disposing of the investment
through adopting the basis for the direct disposal of relevant assets or liabilities of the investee. If the original
equity held before the acquiring date is calculated at fair value in the available-for-sale financial assets, the
change in the cumulative fair value originally included in other comprehensive income is transferred to the
current investment profit and loss on the combination date.
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Except for the long-term equity investment acquired through business combination, for the long-term equity
investment made by paying cash, the investment cost shall be the purchase price actually paid; for the
long-term equity investment acquired by issuing equity securities, the investment cost shall be the fair value
of the equity securities issued; for the long-term equity investment acquired through the exchange of
non-monetary assets, the initial investment cost shall be recognized in accordance with the relevant
provisions of the Accounting Standards for Business Enterprises No.7 - Exchange of Non-monetary Assets;
for the long-term equity investment acquired by debt restructuring, the initial investment cost shall be
recognized in accordance with the relevant provisions of the Accounting Standards for Business Enterprises
No.12 - Debt Restructuring.
The investment in subsidiaries is measured by the cost method and the investment in joint ventures and
cooperative enterprises is measured by equity method.
For the long-term equity investment calculated by cost method subsequently, the long-term equity
investment cost is adjusted when the investment is added or recovered. The cash dividends or profits
declared to be distributed by the investee should be recognized as current investment income.
The book value of the long-term equity investment measured subsequently by equity method shall be
increased or decreased with the change in the owner’s equity of the investee. The share of the net profits and
losses of the investee to be enjoyed shall be recognized after offsetting of the part of the internal deal profits
and losses attributable to the Company between the joint venture and cooperative enterprise according to the
shareholding ratio and after adjustment of the new profits of the investee on the basis of the fair value of the
identifiable assets of the investee when the investment is obtained and according to the Company’s
accounting policy and accounting period.
In disposal of the long-term equity investment, the balance between the book value and the actual price
obtained is charged to current investment income. If a long-term equity investment calculated by the equity
method is included in the owner's equity due to changes in the owner's equity other than the net profit and
loss of the investee, the part originally included in the owner's equity in the disposal of the investment shall
be transferred to the current investment profit and loss by the corresponding proportion.
If the deals for disposal of the equity by steps until the loss of the control right do not belong to the package
deal, each deal shall be subject to accounting treatment respectively. If they belong to a package deal, the
deals shall be subject to accounting treatment as a deal for disposal of subsidiary and loss of the control right;
however, the difference between each disposal price and the book value of the long-term equity investment
corresponding to the equity disposed of before the loss of control right is recognized as other comprehensive
income and then transferred into the current profit and loss in the period of loss of control right.
19. Investment properties
The Company’s investment properties include the leased buildings which are measured by cost model.
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The Company's investment properties are depreciated or amortized by the straight-line depreciation method.
The estimated service life, net residual rate and yearly depreciation (amortization) ratio of all types of
investment properties are as follows:
Yearly depreciation
Category Depreciation life (year) Expected residual rate (%)
(%)
Houses and buildings 20 5.00% 4.75%
20. Fixed assets
The Company’s fixed assets refer to the tangible assets with the following features which are held for
production of goods, provision of labor, lease (excluding lease of buildings) or operating management and
whose service life exceeds year.
The fixed assets can be recognized when the economic benefits related to the fixed assets are likely to flow
to the Company and when the cost of the fixed assets can be reliably measured. The fixed assets, including
buildings, machinery equipment, transportation equipment and other equipment, are entered into the account
by actual cost when obtained, in which, the cost of purchased fixed assets includes buying price, import tariff
and other relevant taxes, as well as other expenses incurred before the fixed assets reach the extended usable
status and directly attributable to the assets; cost of self-constructed fixed assets, consisting of necessary
expenses incurred from construction of the asset to the intended serviceable conditions; the cost invested by
the investors in the fixed assets is determined according to the value stipulated in the investment contracts or
agreements, except the value stipulated in the contracts or agreements is not fair; the fixed assets under
financing lease shall be recorded in the accounts according to the lower present value between the fair value
of the leased asset on the lease commencement date and the minimum lease payment.
Except the fixed assets withdrawn with depreciation and remaining use, the Company withdraws
depreciation of all fixed assets by the straight-line depreciation method. According to the category of fixed
assets, estimated economic life and expected net residual rate, the depreciation is determined as follows:
Depreciation
Category Residual rate Yearly depreciation
life
Houses and buildings 20 5.00% 4.75%
Machinery equipment 10 5.00% 9.50%
Transportation equipment 5 5.00% 19.00%
Other equipment 5 5.00% 19.00%
Accounting treatment of subsequent expenditure of fixed assets: subsequent expenditure of fixed assets
mainly includes the transformation and renovation expenses and repair expenses. If the economic benefits
related may flow in and the cost can be reliably measured, the subsequent expenditure is included in the
fixed asset cost and the book value of the replaced part is derecognized. The other subsequent expenditure is
charged to current profit and loss upon occurrence.
The Company shall review the service life, estimated residual value and depreciation method of the fixed
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assets on each balance sheet date and handle any change as the accounting estimate change.
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.
21. Construction in progress
The construction in progress is measured according to the actual cost. The self-run construction shall be
measured by direct materials, direct wages and direct construction costs; the outsourced construction shall be
measured according to the paid project cost; the equipment installation project cost shall be determined
according to the value, installation cost and test run expenses of the equipment installed. The cost of the
construction in progress should also include the capitalized borrowing costs.
The fixed assets of the construction shall be carried forward to the fixed assets by the estimated value
according to the construction budget, cost or actual construction cost from the date when they reach the
intended usable state, and the depreciation shall be calculated and withdrawn from the following month. The
original value difference of the fixed assets is adjusted after the completion settlement procedures.
22. Borrowing costs
Recognition principle of capitalization of borrowing costs: the construction or production borrowing costs
incurred and directly attributable to the assets meeting the capitalization conditions are capitalized and
charged to relevant asset costs; other borrowing costs shall be recognized as costs according to the amount
incurred when they occur and shall be included in the current profit and loss. Assets meeting the
capitalization conditions refer to the fixed assets, intangible assets, inventories and other assets which can
reach the intended usable or marketable status only after quite a long time (generally more than 1 year) of
construction or production activities.
Capitalization period of borrowing costs: the borrowing costs related to the assets that meet the capitalization
conditions start to be capitalized when the expenditure to acquire and the borrowing costs have occurred and
the construction or production activities required to make the assets reach the usable or marketable status
have started. In case of abnormal interrupt of the assets meeting the capitalization conditions for more than 3
consecutive months in the construction or production process, the capitalization of the borrowing costs is
suspended; the borrowing costs stop capitalization when the construction or production assets meeting the
capitalization conditions reach the usable or marketable status.
Calculation method for capitalized amount of borrowing costs: when special borrowings are borrowed for
construction or production of the assets meeting the capitalization conditions, the difference between the
interest incurred in the period of special borrowings and the interest income from the unused borrowing fund
in the bank or the investment income of temporary investment is deemed as the capitalized amount of the
interest on the special borrowings. When general borrowings are occupied for construction or production of
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assets meeting the capitalized conditions, the weighted average of the expenditure to acquire exceeding the
special borrowings in the cumulative expenditure to acquire is multiplied by the weighted average interest
rate of the general borrowings occupied to calculate and determine the amount of interest to be capitalized on
the general borrowings.
23. Intangible assets
The Company's intangible assets mainly include land use rights, software, trademarks, patents, etc. The
actual cost of the purchased intangible assets shall be the actual cost and other relevant expenses. The actual
cost of the intangible assets invested by the investors is determined according to the value stipulated in the
investment contracts or agreements. If the value stipulated in the contracts or agreements is not fair, the
actual cost is determined according to the fair value. The intangible assets are amortized by the straight-line
method. The classification and amortization period of the Company's intangible assets are as follows:
Category Amortization period
Land use right 50
Patents 10
Software 3-5 years
Trademark and domain name 10
The Company’s land use right is amortized averagely according to the transfer life from the date of transfer;
the Company's patent right, non-patented technology, the right to use the special software and other
intangible assets are amortized averagely by the shortest of the estimated service life, the beneficial life
stipulated in the contract and the effective life stipulated by law. The amortization amount shall be recorded
into the current profit and loss or the cost of related assets according to its beneficiary object.
The expected useful life and amortization methods of the intangible assets with limited useful life are
reviewed at the end of each year and adjusted accordingly in case of change; the expected useful life of the
intangible assets with uncertain useful life are reviewed in each accounting period. If there is evidence that
the service life of intangible assets is limited, the service life shall be estimated and amortized within the
expected useful life.
The expenditure of the Company's internal R&D projects is classified into the expenditure at the research
stage and the expenditure at the development stage according to its nature and great uncertainty of the
intangible assets eventually formed by R&D activities.
Expenses of developing intangible assets internally in research phases shall be included in the current profits
and losses at the time of occurrence; If all of the following conditions are satisfied, expenses incurred in the
development phase shall be recognized as assets:
(1) Technically feasible to complete the intangible assets, so that they can be used or sold;
(2) The intangible assets with the intention of use or sale;
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(3) Products generated by the intangible assets can be sold, or the intangible assets themselves can be sold;
(4) With the support of adequate technical and financial and other resources to complete the development of
the intangible assets and with the ability to use or sell the intangible assets
(5) Expenses on development of the intangible assets can be measured in a reliable way.
The expenses at the development stage not meeting above conditions are included in current profits and
losses when obtained. The development expenses included in profits and losses in previous periods are not
recognized as assets in subsequent periods. The capitalized expenses at the development stage are listed as
development expenses in the balance sheet and transferred to intangible assets when the project reaches the
intended usable state.
If the expenditure at the research stage and the expenditure at the development stage cannot be distinguished,
the R&D expenditure incurred is fully charged to the current profit and loss. The cost of intangible assets
formed by internal development activities consists only of the total expenditure incurred between the point at
which the conditions for capitalization are met and the time at which the intangible assets reach their
intended use. The expenditure that has been expensed and included in the profit and loss for the same
intangible asset before reaching the capitalization conditions in the development process is no longer
adjusted.
24. Long-term assets impairment
The Company checks the intangible assets determined for the long-term equity investment, fixed assets,
construction in progress and service life of the subsidiaries, joint ventures and cooperative enterprises on
each balance sheet date. When there are the following signs, indicating that the assets may be impaired, the
Company will conduct impairment test; for intangible assets with uncertain goodwill and beneficial life,
impairment test shall be conducted at the end of each year whether there is any sign of impairment or not.
Where it is difficult to test the recoverable amount of a single asset, the test shall be based on the asset group
or the combination of asset groups to which the asset belongs.
After the impairment test, if the book value of the asset exceeds the recoverable amount, the difference is
recognized as an impairment loss. Once the impairment loss of the said asset is recognized, it will not be
carried back in the subsequent accounting period. The recoverable amount of an asset is the higher of the net
amount of the assets fair value subtracted by the disposal costs and the present value of the expected future
cash flow of the assets.
Impairment indication:
(1) The current market price of the asset falls sharply, which is significantly higher than expected decrease
for over time or normal use;
(2) The enterprise is undergoing significant changes in the business environment of economy, technology or
law and the market of assets in the current period or in the near future, which will cause a bad effect on
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the enterprise itself;
(3) The market interest rate or the return rate of investment in other markets has increased in the current
period, which influence the enterprise to calculate discount rate for the present value of the expected
future cash flow of the asset, and results in a significant decrease in the recoverable amount of the asset;
(4) There is evidence that the asset is obsolete or its entity is damaged;
(5) The asset has been or will be idle, terminated for use, or disposed ahead of time;
(6) The evidence of the internal report of the enterprise indicates that the economic performance of the asset
has been below or will below expectation. For instance, the net cash flow created by the asset or the
business profit (or loss) is considerably lower than (or higher than) the estimated amount;
(7) Other indications showing that the assets impairment may have occurred.
25. Long-term unamortized expenses
The long-term unamortized expenses of the Company refer to the expenses that have been paid, but should
be borne in the current period and subsequent periods with the amortization period of more than one year
(excluding one year). Such expenses are amortized on average in the benefit period. If a long-term
unamortized expense item cannot benefit a later accounting period, the amortized value of the item that has
not been amortized is transferred to the current profit and loss.
26. Employee compensation
The Company’s employee compensation includes short-term compensation, welfare after dismission,
dismission welfare and other long-term employee services and benefits.
The short-term compensation mainly includes salary, bonus, allowances and subsidies, employee services
and benefits, housing fund, labor union expenditure and personnel education fund, medical insurance
premiums, industrial injury insurance premium, birth insurance premium and other social insurance
premiums. The short-term compensation actually happened during the accounting period when the staff
offering the service for the Company shall be recognized as liabilities and included in the current gains and
losses or relevant assets cost by the beneficiary object.
Post-employment benefits mainly include basic endowment insurance, unemployment insurance and
enterprise annuity payment and are classified as defined contribution plans according to the risks and
obligations undertaken by the Company. The sinking funds made to a separate entity on the balance sheet
date in exchange for services rendered by the employee during the accounting period shall be recognized as
liabilities and included in the current gains and losses or relevant assets cost by the beneficiary object.
The Company puts forward compensation for an employee to terminate the labor relationship with the
employee before expiry of the employee labor contract. When failing to unilaterally withdraw the dismission
welfare due to termination of labor relation plan or downsizing suggestions, or when recognizing the costs
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related to restructuring involving payment of dimission welfare (whichever comes first), the Company
recognizes the employee compensation liabilities from the dismission welfare and includes in current profit
and loss. The compensation that is paid beyond a year is included in current profit and loss after discount.
Other long-term employee benefits mainly include the long-term incentive plan and long-term benefits and
shall be subject to the accounting treatment according to relevant provisions in the defined contribution
plans.
27. Estimated liabilities
Any business related to contingencies such as external guarantee, pending litigation or arbitration, product
quality assurance, staff reduction plan, loss contract, restructuring obligation, environmental pollution
remediation, commitment and fixed asset disposal obligation, if meeting all of the following conditions, is
recognized as a liability: the obligation is the current obligation undertaken by the Company; performance of
the obligation is likely to lead to the outflow of economic benefits; the amount of the obligation can be
reliably measured.
The estimated liabilities are initially recognized according to the best estimate number of the expenditure
required to perform relevant current obligations with consideration to the contingency related risks,
uncertainty, time value of money and other factors. If the time value of money has significant impact, the
best estimate number is determined after discount of the future cash flow. The book value of the estimated
liabilities is reviewed on the balance sheet date and adjusted to reflect the current best estimate number if
there is any change.
The existence of a potential obligation for past transactions or events shall be substantiated by the occurrence
or non-occurrence of future uncertainties; the Company will disclose the potential or current obligation a as
contingent liability if the performance of such obligation is not likely to result in the outflow of economic
benefits from the Company or if the amount of such obligation cannot be reliably measured.
28. Share-based payments
The term share-based payment refers to a transaction in which the Company grants equity instruments or
undertakes equity-instrument-based liabilities in return for services from employee or other parties. The
share-based payments shall consist of equity-settled share-based payments and cash-settled share-based
payments.
The equity-settled share-based payment in return for employee services is measured at the fair value of the
equity instruments granted to the employees. The amount of 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. The capital reserve will be increased correspondingly.
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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 at the
fair value of the liabilities assumed and the liability will be increased correspondingly. If the rights can only
be exercised after the situation that service within the waiting period is completed and set performance is
achieved, the service obtained at the current period, according to the fair value amount of the liability borne
by the Company, and basing on the optimum estimation for the condition of exercising rights, will be
counted into costs or expenses on each and every balance sheet date during the waiting period, and the
liability will be increased correspondingly.
Each and every balance sheet date and settlement before relevant liability settlement, the fair value of
liability will be remeasured, of which changes occurred will be counted into the current period.
29. Revenue recognition principle and calculating method
The operating revenue of the Company mainly includes income from selling commodities, income from
offering labor.
(1) Revenue recognition principle
The Company recognize the income when it has fulfilled its obligation stipulated in the contract, and the
time when the clients have controlled the relevant goods or services. Acquisition of control of the relevant
goods or services means that the clients can guide goods using and service providing and receive all
economic benefit therefrom.
The Company shall evaluate the contract on the commencement date of the contract, identify individual
performance obligations contained in the contract, and determine each performance obligation to be fulfilled
within a certain period time or at a certain point of time.
If one of the following conditions is satisfied, the Company shall perform its obligations within a certain
period time; Otherwise, it shall perform its obligations at a certain point of time:
1) The clients obtain and take away economic benefits brought by the Company’s fulfillment of obligation
when the clients fulfill their obligation of the Company.
2) The clients are able to control commodities under production in the process of the Company’s
fulfillment of obligation.
3) The commodities produced during the performance of the Contract by the Company is irreplaceable.
And the Company has the right to charge for the accumulated performance completed so far during
contract period.
For the obligations performed within a certain period time, the Company shall recognize the income in
accordance with the performance progress during the period. If the performance cannot be reasonably
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determined, and the Company is expected to receive compensation for incurred cost, the Company shall
recognize the income based on incurred cost until the performance can be reasonably determined.
For the obligations performed at a certain point of time, the Company shall recognize the income when the
clients have controlled relevant commodities or services. In determining whether the customer has controlled
relevant commodities or services, the Company shall consider the following indications:
1) The Company has the right to collect the current bill for the commodities or services.
2) The Company has transferred the legal title of commodities to the customer.
3) The Company has transferred the physical commodities to the customer.
4) The Company has transferred the main risks and rewards on the legal title of commodities to the
customer.
5) The customer has accepted commodities or services, etc.
The Company's right to receive consideration for commodities or services transferred to the customer is
shown as an asset under the contract, which is subject to impairment based on expected credit losses. The
Company's unconditional right to charge consideration from the customer shall be listed as account
receivable. The Company’s obligation of the transfer of commodities or services to customers for
consideration of goods delivery is listed as a contract liability.
(2) Revenue measurement principle
1) If the contract contains two or more performance obligations, the Company shall apportion the
transaction price to each performance obligation according to the relative proportion of the individual
selling price of the commodity or service committed by each performance obligation at the beginning of
the contract, and measure the revenue according to the transaction price apportioned to each
performance obligation.
2) The transaction price is the consideration amount expected to be collected by the Company for the
transfer of commodities or services to the customer, excluding the payments received from a third party.
The transaction price confirmed by the Company shall not exceed the amount of accumulated
recognized revenue, which is unlikely to turn back when the relevant uncertainties have been eliminated.
The amount expected to be refunded to customers shall be regarded as liability and be excluded in the
transaction price.
3) If the contract includes significant financing elements, the Company shall determine the transaction
price based on the amount payable in cash assumed to be paid by the customer upon acquisition of
control of the commodities or services. The balance between the transaction price and the contract
consideration shall be amortized by the effective interest method during the contract period. On the
commencement date of the contract, if the interval between the day of the customer's acquisition of
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control of the commodities or services control and customer's payment of the price not exceed one year,
the significant financing elements in the contract will not be taken into consideration.
(3) Specific revenue recognition method
1) Recognizing revenue at a certain point of time
Sell of electrical products, accessories and materials belongs to the performance obligations performed at a
certain point of time.
Revenue recognition conditions for domestic commodities: the Company has delivered products to the
customer according to the contract and order. The customer has received the products. The Company has
collected payment and obtained receipts. The relevant economic benefits are likely to get into the Company.
The main risks and rewards on the ownership of commodities have been transferred. The legal ownership
and control rights of commodities have been transferred.
Revenue recognition conditions for export commodities: the Company has made an export declaration of the
products according to the contract, obtained the bill of lading and delivered the commodities to the carrier
entrusted by the buyer. The Company has collected payment and obtained receipts. The relevant economic
benefits are likely to get into the Company. The main risks and rewards on the ownership of commodities
have been transferred. The legal ownership and control rights of commodities have been transferred.
2) Recognizing revenue by contract fulfillment
For the obligations performed within a certain period of time, the Company shall recognize the income in
accordance with technology service and operating lease with the customer.
30. Government subsidies
The Company's government subsidies include financial allocations. The asset related government subsidies
refer to the government subsidies obtained by the Company and used for acquisition or construction or for
formation of long-term assets in other ways; the income related government subsidies refer to the
government subsidies other than the asset related government subsidies. The government subsidies without
subsidy objects specified in government documents shall be judged by the Company according to the above
principle, or classified into income related government subsidies as a whole if it is difficult to judge.
The government subsidies as the monetary assets are measured according to the amount received. For
subsidies allocated in accordance with fixed quota standards, or if there is evidence at the end of year that the
Company can meet relevant conditions stipulated in the financial support policy and can be expected to
receive the financial support fund, the government subsidies are measured according to receivables. The
government subsidies not as the monetary assets are measured according to the fair value, or measured
according to the nominal amount (RMB 1 yuan) if the fair value cannot be obtained reliably.
The government subsidies related to assets are recognized as deferred income and equally distributed and
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
charged to the current profit and loss in the service life of relevant assets.
If the related asset is sold, transferred, scrapped or damaged before the end of the useful life, the deferred
income balance not yet distributed is transferred in the profits and losses in the period of assets disposal.
The income related government subsidies, if used to compensate for related costs or losses in subsequent
periods, are recognized as the deferred income and charged to the current profit and loss when related costs
or losses are recognized. The government subsidies pertinent to the daily activities of the Company shall be
included in other income or used to offset relevant costs and expenses according to the substance of the
economic business. The government subsidies irrelevant with the daily activities of the Company shall be
included in non-operating revenues and expenditures.
Where the Company has obtained discount interest on preferential loans, it shall distinguish between the two
situations in which the financial department allocates discount interest funds to the lending bank and the
financial department directly allocates discount interest funds to the Company, and conduct accounting
treatment according to the following principles:
(1) Where the financial department allocates the discount interest funds to the lending bank, and the lending
bank provides the loan to the Company at the preferential policy interest rate, the Company shall take
the actual amount of the loan received as the entry value of the loan, and calculate the relevant
borrowing costs according to the loan principal and the preferential policy interest rate.
(2) Where the financial department directly allocates discount interest funds to the Company, the Company
will write down the corresponding discount interest against the relevant borrowing costs.
If the government subsidy confirmed by the Company needs to be returned, the accounting treatment shall be
carried out in accordance with the following provisions in the current situation of the return:
1) The book value of related assets is adjusted if it is offset upon initial recognition.
2) For those with related deferred income, the book balance of related deferred income is written down and
the excess is accounted into the current profits and losses.
3) In the other cases, they are directly accounted into the current profits and losses.
31. Deferred income tax assets and deferred income tax liabilities
The Company’s deferred income tax assets and deferred income tax liabilities are calculated and recognized
according to the difference (temporary difference) between the tax base and book value of the assets and
liabilities. For the deductible loss that can be carried forward to the subsequent year according to the tax law,
the corresponding deferred income tax assets are recognized. For the deductible temporary differences
related to the initial recognition of the goodwill, the corresponding deferred income tax liabilities are not
recognized. For the temporary differences related to the initial recognition of the assets or liabilities incurred
in the transaction not for business combination that will not affect the accounting profits and income tax
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payable (or deductible loss), the corresponding deferred income tax assets and liabilities are not recognized.
The deferred income tax assets and deferred income tax liabilities are measured on the balance sheet date
according to the applicable tax rate in the period of expected recovery of relevant assets of liquidation of
relevant liabilities.
The Company recognizes the deferred income tax assets by deductible temporary differences, within the
limit of the income tax payable that may be obtained in the future and used to offset the deductible temporary
differences, the deductible loss and tax deduction.
32. Leased
Finance lease is the lease substantially transferring all risks and remuneration related to the asset ownership.
The lease other than the finance lease is operating lease. The Company’s lease is mainly operating lease.
The rental income or expense of operating lease is charged to relevant asset cost or current profit and loss by
the straight-line method in the lease term.
33. Significant accounting policy and accounting estimate change
(1) Changes in significant accounting policies
√Applicable □ Not applicable
In 2017, the Ministry of Finance issued the revised Accounting Standards for Business Enterprises No. 14 -
Revenue (referred to as the "new revenue standards"). From January 1, 2020, the Company will conduct
accounting treatment in accordance with the newly revised above standards. According to the convergence
provisions, the balance of items in relevant statements at the beginning of this reporting period will be adjusted
according to the difference between the implementation of the new standards and the current standards on the first
day, and the information in comparable periods will not be adjusted.
(2) Significant accounting estimate change
□ Applicable √ Not applicable
(3) Adjustment of relevant items in financial statements at the beginning of the implementation year as a
result of first implementation of new revenue standards and new release standards from 2020
Consolidated Balance Sheet
Unit: yuan
Item Tuesday, December 31, 2019 January 01, 2020 Adjusted figure
Current assets:
Advance from customers 1,092,261,332.25 -1,092,261,332.25
Contract liabilities 970,225,647.09 970,225,647.09
Other current liabilities 122,035,685.16 122,035,685.16
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Balance Sheet of the Parent Company
Unit: yuan
Item Tuesday, December 31, 2019 January 01, 2020 Adjusted figure
Current assets:
Advance from customers 983,128,543.51 -983,128,543.51
Contract liabilities 873,647,957.94 873,647,957.94
Other current liabilities 109,480,585.57 109,480,585.57
(4) Retrospective adjustment of early comparative data description as a result of first implementation of
new revenue standards and new release standards from 2020
N/A
VI. Taxes
1. Main tax categories and tax rates
Tax category Taxation basis Tax rate
Added value tax Income from selling commodities 13%
Added value tax Technical service income 6%
Added value tax Income from house lease 5%
Tax on city maintenance and
Turnover tax actually paid 7%
construction
Education surcharge Turnover tax actually paid 3%
Surcharge for local education Turnover tax actually paid 2%
House property tax 70% of original value of the property 1.2%
House property tax Rental income 12%
Land use tax Total land area 5-10 yuan/m2
Corporate income tax Income tax payable 15%, 25%
Presentation of condition shall be disclosed in cases that there are different subjects of corporate income tax payment
Name of subject of tax payment Income tax rate
Hangzhou Robam Appliances Co., Ltd. 15%
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. 15%
Zhejiang Cooking Future Technology Co., Ltd. 25%
Beijing Robam Electric Appliance Sales Co., Ltd. 25%
Shanghai Robam Electric Appliance Sales Co., Ltd. 25%
Hangzhou Mingqi Electric Co., Ltd. 25%
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Dize Home Appliance Trading (Shanghai) Co., Ltd. 25%
Hangzhou Robam Fuchuang Investment Management Co.,
25%
Ltd.
2. Tax preference
1) Preferential policies for income tax
On December 01, 2020, the Science Technology Department of Zhejiang Province, Zhejiang Provincial
Department of Finance, Zhejiang Provincial Tax Service of State Taxation Administration and Zhejiang
Local Taxation Bureau jointly issued a high-tech enterprise certificate (No. GR202033007142) 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 from January 1,
2020 to December 31, 2022), and the enterprise income tax shall be levied at the rate of 15%.
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. (Shengzhou Kinde ), a subsidiary of the Company,
obtained the high-tech enterprise certificate (No. GR201933002261) jointly issued by the Science and
Technology Department of Zhejiang Province, Finance Department of Zhejiang Province and Zhejiang
Provincial Tax Bureau of the State Administration of Taxation on December 4, 2019. Shengzhou Kinde
passed the high-tech enterprise identification. The Company can enjoy the relevant preferential policies of
the state on high-tech enterprises for three consecutive years (i.e., the income tax preference from January 1,
2019 to December 31, 2021), and the enterprise income tax shall be levied at the rate of 15%.
2) Preferential tax policies for land use tax
On December 2, 2020, the State Administration of Taxation, Hangzhou Yuhang District Tax Bureau issued a
notice on the tax affairs (Hangyu shuitong [2020] No. 53490), from January 1, 2020 to December 31, 2020,
Class A enterprises is free of tax on urban land use, the Company belongs to Class A enterprise and can enjoy
the preferential policy of exemption of tax on urban land use.
According to Decision of the State Council on Amending the Interim Regulations of the People's Republic of
China on Urban Land Use Tax, the regulation of Article7 of Order No.483 of the State Council of the
People's Republic of China, Shengzhou Kinde, a subsidiary of the Company, applied tax exemptions to the
State Administration of Taxation Shengzhou Tax Bureau and received approval (filing code:
210406170634586299) and was approved to enjoy the preferential policy of full reduction of land use tax
from January 1, 2020 to December 31, 2020.
3) Preferential policies for house property tax.
On December 31, 2020, the State Administration of Taxation, Hangzhou Yuhang District Tax Bureau issued a
notice on the tax affairs (Hangyu shuitong [2020] No. 59493). From January 1, 2020 to December 31, 2020,
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
the ad valorem collection of house property tax levied on manufacturing (excluding tobacco products),
wholesale and retail enterprises (for personal use) is exempted affected by the epidemic. The Company meets
such requirements and can enjoy the preferential policy of full reduction of house property tax.
VII. Notes to Items in Consolidated Financial Statements
1. Monetary capital
Unit: yuan
Item Year-end balance Beginning balance
Cash on hand 110,770.11 218,775.77
Bank deposit 3,885,907,031.42 4,029,077,489.73
Other monetary capital 35,034,898.78 24,825,460.73
Total 3,921,052,700.31 4,054,121,726.23
Including: total amount of fund deposit abroard 0.00 0.00
Other description
Note: Other monetary capital at the year end is 35,034,898.78 yuan, including the L/C deposit of
33,394,968.71 yuan and deposit for bill acceptance of 1,561,218.04 which are limited funds, and Alipai
balance of 78,712.03 yuan which allows to withdraw money at any time and without funds limitation.
2. Trading financial assets
Unit: yuan
Item Year-end balance Beginning balance
Financial assets measured with fair value and with
2,352,000,000.00 1,360,000,000.00
the changes included in current profit and loss
Including:
Bank financial products 2,352,000,000.00 1,360,000,000.00
Including:
Total 2,352,000,000.00 1,360,000,000.00
4. Notes receivable
(1) Classified presentation of notes receivable
Unit: yuan
Item Year-end balance Beginning balance
Banker’s acceptance 850,950,227.31 359,876,143.64
Trade acceptance 981,751,215.77 626,817,005.76
121
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Total 1,832,701,443.08 986,693,149.40
Unit: yuan
Year-end balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
debt debt
Category Book Book
Accrui Accruin
Amoun Proport Amoun ng value Amoun Proport g value
Amount
t ion t proport t ion proporti
ion on
Notes receivable of
11,176, 7,823,7 70.00 3,353,0
single provision for 0.59% 0.00 0.00% 0.00 0.00% 0.00
846.26 92.38 % 53.88
bad debt
Including:
Notes receivable of
1,887,8 1,829,3 1,019,6 986,69
provision for bad 99.41 58,483, 100.00 32,990,3
31,706. 3.10% 48,389. 83,518. 3.24% 3,149.4
debt by % 316.85 % 68.72
05 20 12 0
combination
Including:
850,95 850,95 359,87 359,87
Banker’s 44.81
0,227.3 0.00 0.00% 0,227.3 6,143.6 35.29% 0.00 0.00% 6,143.6
acceptance bill %
1 1 4 4
1,036,8 978,39 659,80 626,81
54.60 58,483, 32,990,3
Trade acceptance 81,478. 5.64% 8,161.8 7,374.4 64.71% 5.00% 7,005.7
% 316.85 68.72
74 9 8 6
1,899,0 1,832,7 1,019,6 986,69
100.00 66,307, 100.00 32,990,3
Total 08,552. 3.49% 01,443. 83,518. 3.24% 3,149.4
% 109.23 % 68.72
31 08 12 0
Provision for bad debt by single item:
Unit: yuan
Year-end balance
Name Accruing Reasons for
Book balance Provision for bad debt
proportion provision
Trade acceptance with provision for bad
11,176,846.26 7,823,792.38 70.00%
debt provision withdrawn by single item
Provision for bad debt by combination:
Unit: yuan
Year-end balance
Name
Book balance Provision for bad debt Accruing proportion
Banker’s acceptance bill combination 850,950,227.31 0.00 0.00%
Commercial acceptance bill combination 1,036,881,478.74 58,483,316.85 5.64%
Total 1,887,831,706.05 58,483,316.85 --
(2) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
122
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Unit: yuan
Changes in amount in current period
Beginning Recovere
Category Canceled after Year-end balance
balance Provision d or Other
verification
reversed
Trade acceptance 32,990,368.72 33,316,740.51 0.00 0.00 66,307,109.23
Total 32,990,368.72 33,316,740.51 0.00 0.00 66,307,109.23
(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 not yet confirmed at end of
Item Amount confirmed at end of period
period
Banker’s acceptance 908,147.68 0.00
Trade acceptance 0.00 10,000,000.00
Total 908,147.68 10,000,000.00
(4) Notes transferred to accounts receivable by the Company at the end of the period due to failure of the
drawer to perform
Unit: yuan
Item Accounts receivable transferred at the end of the period
Trade acceptance 16,504,843.78
Total 16,504,843.78
5. Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: yuan
Year-end balance Beginning balance
Provision for bad Provision for bad
Book balance Book balance
debt debt
Category Book Book
Accrui Accrui
Amoun Proport Amoun ng value Amoun Proport Amoun ng value
t ion t proport t ion t proport
ion ion
Accounts
receivable of 15,164, 12,320, 81.25 2,843,1 4,216,3 4,216,3 100.00
1.40% 0.55% 0.00
provision for bad 080.60 940.24 % 40.36 29.97 29.97 %
debt by single item
Including:
123
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Accounts
receivable of 1,065,6 1,005,3 768,56
98.60 60,287, 42,930, 725,630,
provision for bad 80,355. 5.66% 92,806. 1,756.1 99.45% 5.59%
% 549.11 854.84 901.28
debt by 15 04 2
combination
Including:
1,080,8 1,008,2 772,77
100.00 72,608, 100.00 47,147, 725,630,
Total 44,435. 6.72% 35,946. 8,086.0 6.10%
% 489.35 % 184.81 901.28
75 40 9
Provision for bad debt by single item:
Unit: yuan
Year-end balance
Name Provision for bad Accruing
Book balance Reasons for provision
debt proportion
Accounts receivable without large
Expected to be
single amount and withdrawn 5,686,946.05 5,686,946.05 100.00%
irrecoverable
with single provision for bad debt
Accounts receivable without large
Expected risk of
single amount and withdrawn 9,477,134.55 6,633,994.19 70.00%
recovery
with single provision for bad debt
Total 15,164,080.60 12,320,940.24 -- --
Provision for bad debt by combination: accounts receivable of provision for bad debt by expected credit loss combination based on
aging features
Unit: yuan
Year-end balance
Name
Book balance Provision for bad debt Accruing proportion
Within 1 year 1,005,819,109.05 50,273,301.62 5.00%
1-2 years 45,421,774.91 4,542,177.50 10.00%
2-3 years 8,757,586.46 1,751,517.29 20.00%
3-4 years 3,747,177.04 1,873,588.53 50.00%
4-5 years 438,717.57 350,974.05 80.00%
More than 5 years 1,495,990.12 1,495,990.12 100.00%
Total 1,065,680,355.15 60,287,549.11 --
Disclosure by aging
Unit: yuan
Aging Book balance
Within 1 year (including 1 year) 1,015,150,908.06
Within 1 year (including 1 year) 1,015,150,908.06
1-2 years 47,452,910.95
124
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
2-3 years 10,415,782.96
More than 3 years 7,824,833.78
3-4 years 3,747,177.04
4-5 years 808,021.57
More than 5 years 3,269,635.17
Total 1,080,844,435.75
(2) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
Changes in amount in current period
Beginning
Category Recovered or Canceled after Year-end balance
balance Provision Other
reversed verification
Provision for bad debt
47,147,184.81 27,309,380.51 0.00 1,848,075.97 72,608,489.35
of accounts receivable
Total 47,147,184.81 27,309,380.51 0.00 1,848,075.97 72,608,489.35
(3) Accounts receivable actually written off at the current period
Unit: yuan
Item Written-off amount
Accounts receivable 1,848,075.97
(4) Receivables with top 5 ending balances by debtor
Unit: yuan
Ending balance of Proportion in total ending balance of Ending balance of bad
Unit name
accounts receivable accounts receivable debt provision
Unit 1 150,213,112.47 13.90% 7,510,655.63
Unit 2 139,545,372.57 12.91% 6,977,268.62
Unit 3 106,880,264.70 9.89% 5,344,013.24
Unit 4 22,204,462.73 2.05% 1,568,955.14
Unit 5 19,105,863.54 1.77% 955,293.18
Total 437,949,076.01 40.52%
6. Receivables financing
Unit: yuan
125
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Item Year-end balance Beginning balance
Banker’s acceptance bill 0.00 408,972,104.07
Total 408,972,104.07
7. 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 68,516,272.50 98.04% 50,109,021.83 99.99%
1-2 years 1,373,126.97 1.96% 4,528.01 0.01%
2-3 years 0.00 0.00% 0.00 0.00%
Total 69,889,399.47 -- 50,113,549.84 --
(2) Advances to suppliers with top 5 ending balances by prepayment object
The total amount of advances to suppliers with top 5 ending balances by prepayment object in the current year
was 36,963,699.30 yuan, accounting for 52.90% of total number of ending balance of advances to suppliers.
8. Other receivables
Unit: yuan
Item Year-end balance Beginning balance
Dividends receivable 14,295,039.38
Other receivables 56,589,791.38 96,604,409.27
Total 56,589,791.38 110,899,448.65
(1) Interest receivable
1) Classification of interest receivable
Unit: yuan
Item Year-end balance Beginning balance
126
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
(2) Dividends receivable
1) Classification of dividends receivable
Unit: yuan
Project (or investee) Year-end balance Beginning balance
Suzhou Industrial Park Ruican Investment
0.00 14,295,039.38
Enterprise (limited partnership)
Total 14,295,039.38
(3) Other receivables
1) Other receivables classified by nature
Unit: yuan
Fund nature Year-end book balance Year-begining book balance
Deposit and margin 39,954,577.27 37,167,812.49
Collection by third party 20,064,674.31 63,604,415.88
Imprest 4,326,156.43 3,137,976.93
Withheld amount 2,740,994.81 2,502,348.12
Other 3,306,429.16 512,898.94
Total 70,392,831.98 106,925,452.36
2) Provision for bad debt
Unit: yuan
Stage 1 Stage 2 Stage 3
Expected credit loss
Expected credit Expected credit loss for the
Provision for bad debt for the entire duration Total
losses over the entire duration (no credit
(credit impairment
next 12 months impairment)
has occurred)
Balance on January 01, 2020 10,321,043.09 10,321,043.09
Balance on January 1, 2020 in
—— —— —— ——
current period
Withdrawn in current period 3,511,997.51 3,511,997.51
Written-off in current period 30,000.00 30,000.00
Balance on December 31, 2020 13,803,040.60 13,803,040.60
Disclosure by aging
Unit: yuan
127
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Aging Book balance
Within 1 year (including 1 year) 39,565,072.08
Within 1 year (including 1 year) 39,565,072.08
1-2 years 8,112,128.54
2-3 years 4,307,383.02
More than 3 years 18,408,248.34
3-4 years 16,291,346.00
4-5 years 677,388.96
More than 5 years 1,439,513.38
Total 70,392,831.98
3) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
Changes in amount in current period
Canceled
Category Beginning balance Recovered or Year-end balance
Provision after Other
reversed
verification
Provision for bad debt of
10,321,043.09 3,511,997.51 0.00 30,000.00 13,803,040.60
other receivables
Total 10,321,043.09 3,511,997.51 0.00 30,000.00 13,803,040.60
4) Other receivables actually written off at the current period
Unit: yuan
Item Written-off amount
Other receivables actually written off in the current year 30,000.00
5) Other receivables with top 5 ending balances by debtor
Unit: yuan
Proportion in
Nature of total other ending Ending balance of
Unit name Year-end balance Aging
payment balance bad debt provision
receivable
Deposit and
Unit 1 14,778,000.00 3-4 years 20.99% 7,389,000.00
margin
128
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Collection by Within 1
Unit 2 14,390,028.64 20.44% 719,501.43
third party year
Collection by Within 1
Unit 3 3,852,394.93 5.47% 192,619.75
third party year
Deposit and
Unit 4 3,000,000.00 1-2 years 4.26% 300,000.00
margin
Deposit and Within 1
Unit 5 2,218,384.00 3.15% 110,919.20
margin year
Total -- 38,238,807.57 -- 54.31% 8,712,040.38
9. Inventory
(1) Inventory classification
Unit: yuan
Year-end balance Beginning balance
Provision for Provision for
inventory inventory
falling price falling price
Item
Book balance reserves or Book value Book balance reserves or Book value
contract contract
performance performance
costs costs
Raw
90,099,485.06 90,099,485.06 65,865,050.18 65,865,050.18
materials
Work in
56,669,379.52 56,669,379.52 48,635,094.61 48,635,094.61
process
Merchan
dise
356,798,655.96 31,299,857.11 325,498,798.85 333,027,454.91 9,321,963.35 323,705,491.56
inventor
y
Semi-fini
shed
products 895,794,857.43 0.00 895,794,857.43 882,209,547.51 0.00 882,209,547.51
shipped
in transit
Low
priced
and 18,026,823.98 0.00 18,026,823.98 18,761,741.34 0.00 18,761,741.34
easily
worn
129
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
articles
and
wrappag
e
Total 1,417,389,201.95 31,299,857.11 1,386,089,344.84 1,348,498,888.55 9,321,963.35 1,339,176,925.20
(2) Provision for inventory falling price reserves and contract performance costs
Unit: yuan
Amount increased in current Amount decreased in
period current period
Item Beginning balance Year-end balance
Reversed or
Provision Other Other
written off
Merchandise
9,321,963.35 21,977,893.76 31,299,857.11
inventory
Total 9,321,963.35 21,977,893.76 31,299,857.11
10. Contract assets N/A
11. Assets available for sales N/A
12. Non-current assets due within a year N/A
13. Other current assets
Unit: yuan
Item Year-end balance Beginning balance
Pending deduct VAT on purchase 667,378.56 2,386,707.05
Prepaid tax 0.00 13,802,530.76
Total 667,378.56 16,189,237.81
14. Debt investments N/A
15. Other debt investments N/A
16. Long-term receivables N/A
17. Long-term equity investment
Unit: yuan
Investe Beginni Increase or decrease in current period Ending Balance
130
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
d unit ng Investm balance of
balance ent Declare (book impair
(book gains Adjust d value) ment
value) and ment of Change paymen Provisi provisi
Further Capital
losses other s in t of on for on at
investm reducti Other
recogni compre other cash impair the end
ent on
zed by hensive equity dividen ment of
the income ds or period
equity profits
method
I. Joint enterprise
De
Dietric
h Trade
4,168,3 -715,56 3,452,7
(Shang 0.00 0.00 0.00 0.00 0.00 0.00 0.00
38.79 9.20 69.59
hai)
Co.,
Ltd.
Subtota 4,168,3 -715,56 3,452,7
0.00 0.00 0.00 0.00 0.00 0.00
l 38.79 9.20 69.59
II. Joint venture
4,168,3 -715,56 3,452,7
Total
38.79 9.20 69.59
Other description
18. Other equity instrument investments
Unit: yuan
Item Year-end balance Beginning balance
Suzhou Industrial Park Ruican Investment
100,000,000.00 100,000,000.00
Enterprise (limited partnership)
Shanghai MXCHIP Information Technology
2,116,023.22 2,116,023.22
Co., Ltd.
Total 102,116,023.22 102,116,023.22
Separate disclosure of the current period of non-transactional equity instruments
Unit: yuan
Amount of Cause for Causes for
other designation to carryforward
Recognized Aggregate
Project name Aggregate losses comprehen measure at fair retained
dividend income gains
sive value of which earnings of
income changes are other
131
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
transferred recorded into comprehensive
to retained other income
earnings comprehensive
income
Suzhou
Industrial Park
Ruican Held for
Investment 11,985,836.92 0.00 0.00 0.00 non-trading —
Enterprise purposes
(limited
partnership)
Shanghai
MXCHIP Held for
Information 0.00 0.00 17,832,510.78 0.00 non-trading —
Technology purposes
Co., Ltd.
Other description:
19. Other non-current financial assets
20. Investment properties
(1) Investment properties using cost measurement mode
√Applicable □ Not applicable
Unit: yuan
Item Houses and buildings Total
I. Original book value
1. Year-beginning balance 189,197.82 189,197.82
2. Increase in current year 2,497,285.44 2,497,285.44
(1) Transfer of fixed assets 2,497,285.44 2,497,285.44
3. Decrease in current year 0.00 0.00
4. Year-end balance 2,686,483.26 2,686,483.26
II. Accumulative depreciation
1. Year-beginning balance 76,609.48 76,609.48
2. Increase in current year 18,871.94 18,871.94
(1) Accrual 18,871.94 18,871.94
3. Decrease in current year 0.00 0.00
4. Year-end balance 95,481.42 95,481.42
III. Provision for impairment
1. Year-beginning balance 0.00 0.00
132
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Item Houses and buildings Total
2. Increase in current year 0.00 0.00
3. Decrease in current year 0.00 0.00
4. Year-end balance 0.00 0.00
IV. Book value
1. Year-end Book value 2,591,001.84 2,591,001.84
2. Year-beginning book value 112,588.34 112,588.34
(2) Investment properties using fair value measurement mode
□ Applicable √ Not applicable
21. Fixed assets
Unit: yuan
Item Year-end balance Beginning balance
Fixed assets 824,978,354.71 826,234,929.97
Total 824,978,354.71 826,234,929.97
(1) Fixed assets
Unit: yuan
Houses and Machinery Transportation
Item Other equipment Total
building equipment equipment
I. Original book value
1. Year-beginning
680,982,703.90 558,659,463.30 18,620,780.98 73,367,146.35 1,331,630,094.53
balance
2. Increase in current
23,443,247.45 63,342,721.26 2,499,339.13 8,373,560.86 97,658,868.70
year
(1) Purchase 1,328,349.35 12,093,983.61 2,499,339.13 8,373,560.86 24,295,232.95
(2) Transfer from
construction in 22,114,898.10 51,248,737.65 0.00 0.00 73,363,635.75
progress
3. Decrease in current
2,497,285.44 4,046,851.23 2,234,293.93 3,168,337.97 11,946,768.57
year
(1) Disposal or scrap 0.00 4,046,851.23 2,234,293.93 3,168,337.97 9,449,483.13
2. Others decreases 2,497,285.44 0.00 0.00 0.00 2,497,285.44
4. Year-end balance 701,928,665.91 617,955,333.33 18,885,826.18 78,572,369.24 1,417,342,194.66
II. Accumulative
depreciation
1. Year-beginning
209,304,987.24 240,108,059.23 11,262,138.92 44,719,979.17 505,395,164.56
balance
2. Increase in current
31,514,712.26 53,199,041.23 2,432,308.53 8,211,794.94 95,357,856.96
year
133
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Houses and Machinery Transportation
Item Other equipment Total
building equipment equipment
(1) Accrual 31,514,712.26 53,199,041.23 2,432,308.53 8,211,794.94 95,357,856.96
3. Decrease in current
0.00 3,441,666.82 2,122,579.25 2,824,935.50 8,389,181.57
year
(1) Disposal or scrap 0.00 3,441,666.82 2,122,579.25 2,824,935.50 8,389,181.57
4. Year-end balance 240,819,699.50 289,865,433.64 11,571,868.20 50,106,838.61 592,363,839.95
III. Provision for
impairment
1. Year-beginning
0.00 0.00 0.00 0.00 0.00
balance
2. Increase in current
0.00 0.00 0.00 0.00 0.00
year
3. Decrease in current
0.00 0.00 0.00 0.00 0.00
year
4. Year-end balance 0.00 0.00 0.00 0.00 0.00
IV. Book value
1. Year-end Book
461,108,966.41 328,089,899.69 7,313,957.98 28,465,530.63 824,978,354.71
value
2. Year-beginning
471,677,716.66 318,551,404.07 7,358,642.06 28,647,167.18 826,234,929.97
book value
22. Construction in progress
Unit: yuan
Item Year-end balance Beginning balance
Construction in progress 463,424,647.46 272,211,720.62
Total 463,424,647.46 272,211,720.62
(1) Construction in progress
Unit: yuan
Year-end balance Beginning balance
Provision Provision
Item for for
Book balance Book value Book balance Book value
impairme impairme
nt nt
Maoshan intelligent
259,945,664.4 259,945,664.4
manufacturing base 358,241,059.59 0.00 358,241,059.59 0.00
2 2
infrastructure project
Shengzhou south district
73,511,454.76 0.00 73,511,454.76 352,500.23 0.00 352,500.23
project
Dark workshop project 14,096,794.95 0.00 14,096,794.95 0.00 0.00 0.00
134
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Riveting equipment project 4,568,965.52 0.00 4,568,965.52 0.00 0.00 0.00
Customized management
3,770,316.32 0.00 3,770,316.32 3,574,118.78 0.00 3,574,118.78
software
Robam Mansion project 2,219,316.28 0.00 2,219,316.28 0.00 0.00 0.00
Air line project 1,663,716.90 0.00 1,663,716.90 0.00 0.00 0.00
Project of production
1,530,973.46 0.00 1,530,973.46 1,206,896.55 0.00 1,206,896.55
department 2
Project of production
0.00 0.00 0.00 2,015,449.74 0.00 2,015,449.74
department 3
Cutting machine project 0.00 0.00 0.00 1,435,896.56 0.00 1,435,896.56
Dispensing equipment project 0.00 0.00 0.00 713,675.21 0.00 713,675.21
Other sporadic projects 3,822,049.68 0.00 3,822,049.68 2,967,519.13 0.00 2,967,519.13
Total 463,424,647.46 463,424,647.46 272,211,720.62 272,211,720.62
(3) Current changes in major projects under construction
Unit: yuan
Decrease in current year
Year-beginning Increase in Carried Year-end
Project name Other
balance current year forward to balance
decreases
fixed assets
Maoshan intelligent
manufacturing base
259,945,664.42 128,292,791.18 29,997,396.01 0.00 358,241,059.59
infrastructure
project
Shengzhou south
352,500.23 96,396,729.53 23,237,775.00 0.00 73,511,454.76
district project
Robam Mansion
0.00 2,219,316.28 0.00 0.00 2,219,316.28
project
Total 260,298,164.65 226,908,836.99 53,235,171.01 0.00 433,971,830.63
(Continued)
Proportio Cumula Including:
n of tive amount of Interest of
Progress current
project amount capitalized Sourc
of the year
Project name Budget number input to of interest in e of
project
the capitaliz current Capitaliza funds
(%)
budget ed period of the tion rate
(%) interest year
Maoshan intelligent
Self-fi
manufacturing base
633,650,000.00 56.54 56.54 0.00 0.00 0.00 nanci
infrastructure
ng
project
Self-fi
Shengzhou south
240,960,000.00 40.15 40.15 0.00 0.00 0.00 nanci
district project
ng
135
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Proportio Cumula Including:
n of tive amount of Interest of
Progress current
project amount capitalized Sourc
of the year
Project name Budget number input to of interest in e of
project
the capitaliz current Capitaliza funds
(%)
budget ed period of the tion rate
(%) interest year
Self-fi
Robam Mansion
546,000,000.00 0.41 0.41 0.00 0.00 0.00 nanci
project
ng
23. No productive biological assets
24. No oil and gas assets
25. No right-of-use assets
26. Intangible assets
(1) Intangible assets
Unit: yuan
Item Land use right Software Trademark Patents Total
I. Original book value
1. Year-beginning
202,418,904.95 46,474,694.36 24,624,622.64 7,300,000.00 280,818,221.95
balance
2. Increase in current
23,237,775.00 5,866,072.21 0.00 0.00 29,103,847.21
year
(1) Purchase 23,237,775.00 5,866,072.21 0.00 0.00 29,103,847.21
3. Decrease in current
0.00 0.00 0.00 0.00 0.00
year
4. Year-end balance 225,656,679.95 52,340,766.57 24,624,622.64 7,300,000.00 309,922,069.16
II. Accumulated
amortization
1. Year-beginning
21,274,593.91 34,447,626.59 3,678,115.56 1,684,615.38 61,084,951.44
balance
2. Increase in current
4,353,503.80 5,677,718.88 2,465,577.80 1,123,076.92 13,619,877.40
year
(1) Accrual 4,353,503.80 5,677,718.88 2,465,577.80 1,123,076.92 13,619,877.40
3. Decrease in current
0.00 0.00 0.00 0.00 0.00
year
4. Year-end balance 25,628,097.71 40,125,345.47 6,143,693.36 2,807,692.30 74,704,828.84
III. Provision for
impairment
1. Year-beginning
0.00 0.00 0.00 0.00 0.00
balance
2. Increase in current
0.00 0.00 0.00 0.00 0.00
year
3. Decrease in current
0.00 0.00 0.00 0.00 0.00
year
136
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Item Land use right Software Trademark Patents Total
4. Year-end balance 0.00 0.00 0.00 0.00 0.00
IV. Book value
1. Year-end Book value 200,028,582.24 12,215,421.10 18,480,929.28 4,492,307.70 235,217,240.32
2. Year-beginning book
181,144,311.04 12,027,067.77 20,946,507.08 5,615,384.62 219,733,270.51
value
27. Development expenditure N/A
28. Goodwill
(1) Original book value of goodwill
Unit: yuan
Decrease in
Increase in current period current
Beginning
Investee name or goodwill forming matter period Year-end balance
balance
By business
Disposal
combination
Shengzhou Kinde Intelligent Kitchen
80,589,565.84 0.00 0.00 80,589,565.84
Electric Co., Ltd.
Total
(2) Provision for impairment of goodwill
Unit: yuan
Increase in current Decrease in
Beginning Year-end
Investee name or goodwill forming matter period current period
balance balance
Provision Disposal
Shengzhou Kinde Intelligent Kitchen Electric Co.,
0.00 0.00 0.00 0.00 0.00
Ltd.
Information about the asset group or combination of asset groups in which the goodwill is located
The Company has recognized Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd.( Shengzhou Kinde) as
an assets group. The assets group of year-end goodwill is consistent with the assets group confirmed on the
date of purchase and goodwill impairment in the year before last.
Goodwill impairment test process and recognition method of key parameters (forecast period growth rate when estimating the present
value of future cash flow, stable period growth rate, profit rate, discount rate and forecast period) and goodwill impairment loss:
137
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Our Company commissioned Zhonghe Appraisal Co,. Ltd. (hereinafter referred to as Zhonghe Appraisal)
to evaluate whether the goodwill impairment of assets group of Shengzhou Kinde would occur. According to
the No. BJU3002 Zhonghe Appraisal Report (2021) on Goodwill Impairment Test issued by Zhonghe
Appraisal, Zhonghe Appraisal makes a decision according to the approved forecast of cash flow for the next
five years by management, and estimates the cash flow after the next five years of forecast period based on
the specific long-term average growth rate, and calculates with the present value model of future cash flow
and conduct impairment tests on goodwill with the net amount of the fair value subtracted by the disposal
costs and the present value of the expected future cash flow of asset, whichever is higher, based on
going-concern assumption. It is tested that the recoverable amount of the assets group of Shengzhou Kinde is
greater than the book value containing the assets group of goodwill, and goodwill impairment does not exist.
29. Long-term unamortized expenses
Unit: yuan
Amortization
Amount increased
Item Beginning balance amount in current Other decreases Year-end balance
in current period
period
Service charge 234,663.25 338,544.53 256,113.01 0.00 317,094.77
Consulting fee 187,169.81 154,463.52 100,545.48 0.00 241,087.85
Training
101,362.68 0.00 63,697.48 0.00 37,665.20
membership fee
Brand
0.00 1,202,511.03 0.00 0.00 1,202,511.03
endorsement fee
Total 523,195.74 1,695,519.08 420,355.97 1,798,358.85
30. Deferred income tax assets and deferred income tax liabilities
(1) Unoffset deferred income tax assets
Unit: yuan
Year-end balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Recognition for
provisional estimate 399,311,723.24 59,896,758.48 215,006,417.88 32,250,962.68
cost
Provision for credit
152,718,639.18 24,152,559.74 90,458,596.62 14,479,181.31
impairment
Recognition for
121,306,538.90 18,195,980.84 114,851,263.30 17,227,689.50
deferred income
Provision for 31,299,857.11 4,694,978.56 9,321,963.35 1,398,294.50
138
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
impairment of assets
Fair value change of
other equity instrument 17,832,510.78 2,674,876.62 17,832,510.78 2,674,876.62
investments
Unrealized profit of
10,991,208.96 2,747,344.24 8,075,375.65 2,018,843.91
internal transaction
Payroll payable
withdrawn but not 863,548.19 129,532.23 5,388,241.47 827,267.57
issued
Total 734,324,026.36 112,492,030.71 460,934,369.05 70,877,116.09
(2) Unoffset deferred income tax liabilities
Unit: yuan
Year-end balance Beginning balance
Item Taxable temporary Deferred income Taxable temporary Deferred income
differences tax liabilities differences tax liabilities
Appreciation of assets appraisal for business
30,040,521.60 4,506,078.24 33,942,653.74 5,091,398.06
combination not under common control
Taxable temporary differences due to the
4,697,876.68 704,681.50 4,176,334.57 626,450.19
pretax deduction of fixed assets
Total 34,738,398.28 5,210,759.74 38,118,988.31 5,717,848.25
(3) Deferred income tax assets or liabilities presented as net amount after offset
Unit: yuan
Ending balance of Beginning offset Beginning balance of
Ending offset amount
deferred income tax amount of deferred deferred income tax
Item of deferred income tax
assets and liabilities income tax assets and assets and liabilities
assets and liabilities
after offset liabilities after offset
Deferred income tax
112,492,030.71 70,877,116.09
assets
Deferred income tax
5,210,759.74 5,717,848.25
liabilities
(4) Details of unrecognized deferred income tax assets
Unit: yuan
Item Year-end balance Beginning balance
Deductible loss 9,798,260.49 6,459,439.41
139
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Total 9,798,260.49 6,459,439.41
(5) Deductible losses on unrecognized deferred income tax assets will expire in the following year
Unit: yuan
Amount in the beginning of
Year Amount at the end of period Remark
period
2020 0.00 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 5,602.28 5,602.28
2025 9,706,606.02 0.00
Total 9,798,260.49 6,459,439.41 --
31. Other non-current assets
Unit: yuan
Year-end balance Beginning balance
Provision Provision
Item
Book balance for Book value Book balance for Book value
impairment impairment
Advance payment
for equipment 3,624,837.56 3,624,837.56 23,558,781.27 23,558,781.27
purchase
Advance payment
57,442.11 0.00 57,442.11
for intangible assets
Total 3,682,279.67 3,682,279.67 23,558,781.27 23,558,781.27
32. Short-term borrowing
(1) Classification of short-term borrowing
Unit: yuan
Item Year-end balance Beginning balance
Credit Loan 6,076,177.30
Total 6,076,177.30
140
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
33. No trading financial liabilities
34. No derivative financial liabilities
35. Notes payable
Unit: yuan
Type Year-end balance Beginning balance
Banker’s acceptance bill 751,802,498.92 603,308,648.96
Total 751,802,498.92 603,308,648.96
36. Accounts payable
(1) Presentation of accounts payable
Unit: yuan
Item Year-end balance Beginning balance
Payment for materials 950,631,079.92 880,995,549.70
Costs 709,723,793.53 465,097,084.50
Project payment 48,606,778.41 33,887,108.65
Payment for equipment 14,870,556.23 15,081,542.43
Total 1,723,832,208.09 1,395,061,285.28
(2) Important accounts payable with the aging more than 1 year
Unit: yuan
Item Year-end balance Reasons for being unpaid or unsettled
Costs 16,941,906.91 To be Settled
Total 16,941,906.91 --
Other description:
Note: As of December 31, 2020, the Company's important accounts payable with an age of more than one year were
16,941,906.91 yuan, which is mainly for fees not yet settled.
37. No advance from customers
38. Contract liabilities
Unit: yuan
Item Year-end balance Beginning balance
Advances from customers 949,591,228.35 966,602,948.89
141
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Total 949,591,228.35 966,602,948.89
39. Payroll payable
(1) Presentation of payroll payable
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Year-end balance
period period
I. Short-term compensation 116,643,991.68 763,965,081.65 757,116,917.37 123,492,155.96
II. Welfare after dismission - defined
5,426,333.35 27,091,315.84 29,879,413.91 2,638,235.28
contribution plan
III. Dismission welfare 0.00 1,063,281.45 1,063,281.45 0.00
Total 122,070,325.03 792,119,678.94 788,059,612.73 126,130,391.24
(2) Presentation of short-term compensation
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Year-end balance
period period
1. Wages, bonuses, allowances and
112,088,149.01 657,338,070.20 650,495,489.28 118,930,729.93
subsidies
2. Employee services and benefits 0.00 27,021,217.81 27,021,217.81 0.00
3. Social insurance premium 3,930,546.68 36,823,509.80 36,825,229.50 3,928,826.98
Including: medical insurance
3,388,855.20 35,636,997.54 35,178,167.16 3,847,685.58
premium
Industrial injury
172,761.56 830,554.45 922,174.61 81,141.40
insurance premium
Birth insurance
368,929.92 355,957.81 724,887.73 0.00
premium
4. Housing fund 272,101.00 30,729,770.56 30,719,723.56 282,148.00
5. Labor union expenditure and
353,194.99 12,052,513.28 12,055,257.22 350,451.05
personnel education fund
Total 116,643,991.68 763,965,081.65 757,116,917.37 123,492,155.96
(3) Presentation of defined contribution plans
Unit: yuan
Item Beginning balance Increase in current Decrease in current Year-end balance
142
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
period period
1. Basic endowment
5,228,962.74 26,152,464.69 28,839,057.22 2,542,370.21
insurance
2. Unemployment
197,370.61 938,851.15 1,040,356.69 95,865.07
insurance premium
Total 5,426,333.35 27,091,315.84 29,879,413.91 2,638,235.28
40. Tax payable
Unit: yuan
Item Year-end balance Beginning balance
Corporate income tax 111,445,197.66 89,992,149.62
Added value tax 61,150,126.40 9,811,740.89
Tax on city maintenance and
3,937,862.94 769,259.08
construction
Individual income tax 1,526,364.72 1,190,263.26
Education surcharge 1,687,655.54 329,682.46
Surcharge for local education 1,125,103.76 219,788.34
Stamp duty 507,609.14 238,931.49
Land use tax 340,344.00 0.00
House property tax 166,973.35 0.00
Disabled person employment security
0.00 174,840.07
fund
Total 181,887,237.51 102,726,655.21
41. Other payables
Unit: yuan
Item Year-end balance Beginning balance
Other payables 242,559,615.30 241,641,864.89
Total 242,559,615.30 241,641,864.89
(1) Other payables
1) Other payables listed by nature
Unit: yuan
Item Year-end balance Beginning balance
143
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Margin payable 234,180,292.44 233,004,717.16
Deposit payable 4,539,028.30 4,995,172.30
Collections for others 2,616,338.90 1,486,383.22
Equity incentive repurchase obligation 0.00 0.00
Other 1,223,955.66 2,155,592.21
Total 242,559,615.30 241,641,864.89
2) Important other payable with the aging more than 1 year
Unit: yuan
Item Year-end balance Reasons for being unpaid or unsettled
Sales deposit 202,300,730.41
Total 202,300,730.41 --
Other description
Note: As of December 31, 2020, the Company's important other payables with an age of more than one year
were 202,300,730.41 yuan, which is mainly for sales deposit.
42. No liabilities available for sale
43. No Non-current liabilities due within a year
44. Other current liabilities
Unit: yuan
Item Year-end balance Beginning balance
Pending changerover VAT on sales 116,535,407.26 122,035,685.16
Endorsed trade acceptance 10,000,000.00 0.00
Total 126,535,407.26 122,035,685.16
45. Long-term borrowing N/A
46. Bonds payable N/A
47. Lease liabilities N/A
48. Long-term payable N/A
144
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
49. Long-term payroll payable N/A
50. Estimated liabilities N/A
51. Deferred income
Unit: yuan
Increase in current Decrease in
Item Beginning balance Year-end balance Forming reasons
period current period
Government
114,851,263.30 51,479,585.00 16,167,324.40 150,163,523.90
subsidies
Total 114,851,263.30 51,479,585.00 16,167,324.40 150,163,523.90 --
Other description:
Government subsidized project Year-beginnin Newly increased Annual amount Year-end Assets/income
g balance amount in recorded into the balance related
current year current profit and
loss
Project fund of for intelligent manufacturing, 55,323,859.42 0.00 8,539,505.64 46,784,353.78 与资产相关
integrated standardization and new mode
application
Production and construction project of annual 27,478,633.08 0.00 2,573,781.24 24,904,851.84 与资产相关
production of 2.25 million kitchen appliances
Construction project of kitchen appliance 11,774,935.49 0.00 2,365,167.24 9,409,768.25 与资产相关
R&D, design and test center
Production and construction project allowance 3,426,625.04 0.00 1,143,783.96 2,282,841.08 与资产相关
of annual production of 1 million kitchen
appliances
Project of annual 108 embedded kitchen 5,616,825.75 0.00 682,491.00 4,934,334.75 与资产相关
electric appliance products
New-generation environmentally friendly and 912,326.99 0.00 190,650.84 721,676.15 与资产相关
energy-saving kitchen appliances and
production line (regional major project)
Digital intelligent manufacturing workshop of 741,075.72 0.00 159,426.72 581,649.00 与资产相关
intelligent household appliances
Project of annual production of 2.25 million 232,092.73 0.00 103,706.04 128,386.69 与资产相关
digital workshops
Recycling transformation project 543,686.97 0.00 91,610.16 452,076.81 与资产相关
Subsidies for investment project of annual 147,871.71 0.00 58,882.80 88,988.91 与资产相关
production of 150,000 range hoods
Academician expert workstation 303,134.00 0.00 46,255.68 256,878.32 与资产相关
145
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Kitchen appliance R&D, design and test center 50,196.40 0.00 7,624.80 42,571.60 与资产相关
Technological upgrading project of 8,300,000.00 0.00 0.00 8,300,000.00 与资产相关
manufacturing enterprises
Technological upgrading project of annual 0.00 2,622,600.00 31,200.93 2,591,399.07 与资产相关
production of 500,000
Unmaned intelligent factory based on 5G and 0.00 20,000,000.00 173,237.35 19,826,762.65 与资产相关
Cloud technology
No.M2020-09 land fund subsidy of Chengnan 0.00 28,856,985.00 0.00 28,856,985.00 与资产相关
New District
Total 114,851,263.30 51,479,585.00 16,167,324.40 150,163,523.90 —
52. Other non-current liabilities N/A
53 Share capital
Unit: yuan
Increase/decrease (+, -)
Share capital
Beginning balance New issue of Share Year-end balance
increase from Other Subtotal
shares donation
reserved funds
Total amount
949,024,050.00 949,024,050.00
of shares
54. Other equity instruments N/A
55. Capital reserve
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Year-end balance
period period
capital surplus ( capital
401,799,332.67 401,799,332.67
stock surplus)
Total 401,799,332.67 401,799,332.67
56. Treasury stock N/A
57. Other comprehensive income
Unit: yuan
Beginning Amount incurred in current period Year-end
Item
balance Amoun Less: amount Less: amount Minus: Attributabl Attributabl balance
146
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
t included in included in income e to the e to
before other other tax parent minority
current comprehensi comprehensi expense company shareholde
income ve income in ve income in s after tax rs after tax
tax previous previous
period and period and
included in included in
profit and carryforward
loss in retained
current earnings in
period current
period
I. Other
comprehensi
ve income
-15,157,634.1 -15,157,634.1
that can't be 0.00 0.00 0.00 0.00 0.00
6 6
reclassified
into profit
and loss
Fair
value change
of other -15,157,634.1 -15,157,634.1
0.00 0.00 0.00 0.00 0.00
equity 6 6
instrument
investments
Total other
-15,157,634.1 -15,157,634.1
comprehensi
6 6
ve income
58. Special reserve
59. Surplus reserves
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Year-end balance
period period
Statutory surplus
474,516,412.50 474,516,412.50
reserves
Total 474,516,412.50 474,516,412.50
60. Undistributed profit
Unit: yuan
147
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Item Current period Prior period
Undistributed profit at the end of prior period
5,054,206,720.45 4,223,611,112.65
before adjustment
Undistributed profit at the beginning period after
5,054,206,720.45 4,223,611,112.65
adjustment
Plus: Net profits attributable to the owners of
1,660,749,958.89 1,589,814,847.80
parent company in current period
Common stock dividends payable 474,512,025.00 759,219,240.00
Undistributed profit at the end of the period 6,240,444,654.34 5,054,206,720.45
61. Operating income and operating cost
Unit: yuan
Amount incurred in current period Amount incurred in previous period
Item
Income Cost Income Cost
Main business 7,950,757,663.78 3,506,245,981.19 7,589,302,689.33 3,482,255,262.10
Other businesses 177,863,135.53 56,960,949.68 171,279,166.20 66,522,482.94
Total 8,128,620,799.31 3,563,206,930.87 7,760,581,855.53 3,548,777,745.04
62. Taxes and surcharges
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Tax on city maintenance and
34,478,037.91 34,341,853.03
construction
Education surcharge 24,627,169.96 24,458,728.04
Stamp duty 2,261,813.76 2,237,616.78
Land use tax 340,344.00 0.00
House property tax 194,014.14 5,553,841.54
Vehicle and vessel use tax 24,962.74 26,065.34
Other 30,288.37 0.00
Total 61,956,630.88 66,618,104.73
63. Selling expenses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Sales and service fees 717,952,394.72 554,487,943.73
148
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Advertising and promotion expenses 511,075,473.36 457,851,289.50
Traffic expense; 258,544,222.83 256,384,472.63
Employee compensation 242,145,914.14 245,718,611.84
Promotion fees 154,130,738.31 103,809,175.17
Booth decoration fee 135,635,749.35 164,860,080.30
Material consumption 64,982,374.37 70,486,201.62
Business entertainment expenses 13,609,905.26 15,290,852.11
Rental fees 13,434,292.19 16,476,876.79
Traveling expenses 10,818,904.86 16,293,809.72
Intermediary service charge 10,691,046.91 11,520,390.31
Office allowance 6,327,286.95 10,496,374.50
Other 7,616,745.62 4,583,094.13
Total 2,146,965,048.87 1,928,259,172.35
64. Management costs
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Employee compensation 156,332,380.80 153,718,556.87
Depreciation and amortization 44,483,666.82 39,728,076.92
Consulting service charge 29,904,258.97 18,353,153.39
Maintenance expense 12,833,205.67 13,647,891.43
Office allowance 11,475,519.47 8,545,422.15
Rental fees 7,249,751.59 9,640,922.28
Traveling expenses 6,210,428.73 7,830,459.53
Material consumption 3,471,188.77 5,933,828.15
Business entertainment expenses 5,061,075.24 5,478,604.83
Communication expense 4,880,481.20 4,846,988.25
Car fare 3,787,560.02 3,671,025.30
Equity incentive fee 0.00 109,531.25
Other 11,296,245.96 12,859,654.82
Total 296,985,763.24 284,364,115.17
65. Research and development expenses
Unit: yuan
149
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Item Amount incurred in current period Amount incurred in previous period
Employee compensation 139,169,323.42 133,274,242.46
Direct investment 128,816,650.57 126,394,199.48
Depreciation and amortization 15,654,469.61 15,287,792.16
Design fee 7,071,597.30 9,951,440.23
Other expenses 12,635,514.91 14,561,452.21
Total 303,347,555.81 299,469,126.54
66. Financial expenses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Interest expenses 6,721,543.47 477,352.78
Minus: Interest revenue 160,282,611.34 84,590,717.34
Plus: Exchange gain or loss 2,177,052.47 -293,264.98
Plus: other expenses 1,235,828.65 996,138.29
Total -150,148,186.75 -83,410,491.25
67. Other income
Unit: yuan
Other sources of income Amount incurred in current period Amount incurred in previous period
Financial support funds for enterprise
54,039,120.00 45,262,300.00
cultivation
Deferred income amortization 16,167,324.40 11,143,528.05
Patent award fund 7,509,809.00 3,294,500.00
Special financial fund 5,650,000.00 4,090,000.00
Job subsidies and social insurance
4,685,321.80 19,885,371.21
subsidies
Special fund for industry development 2,749,907.00 2,271,934.44
Individual income tax service charge
1,111,062.72 458,689.01
refund
VAT exemption or reduction 18,000.00 16,500.00
Other subsidies 251,700.00 32,000.00
Total 92,182,244.92 86,454,822.71
150
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
68. Investment income
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
long-term equity investment gains measured by
-715,569.20 1,550,487.63
employing the equity method
Investment income from trading financial assets
28,218,702.24 111,255,267.10
during the holding period
Dividend income from other equity instrument
11,985,836.92 14,295,039.38
investments in the holding period
Total 39,488,969.96 127,100,794.11
69. Net exposure hedging gain
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
70. Gains from fair value change
71. Credit impairment loss
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Loss on bad debts of notes receivable -33,316,740.51 -27,416,736.00
Loss on bad debts of accounts receivable -27,309,380.51 -17,613,423.11
Loss on bad debts of other receivables -3,511,997.51 -3,793,172.36
Total -64,138,118.53 -48,823,331.47
72. Assets impairment losses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
II. Loss on price falling of inventory and
-21,977,893.76 -9,321,963.35
impairment loss of contract performance costs
Total -21,977,893.76 -9,321,963.35
73. Income from disposal of assets
Unit: yuan
151
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Source of income from disposal of assets Amount incurred in current period Amount incurred in previous period
Income from disposal of non-current
-387,844.96 -158,607.19
assets
Including: income from disposal of fixed
-387,844.96 -158,607.19
assets
Total -387,844.96 -158,607.19
74. Non-operating income
Unit: yuan
Amount recorded into
Amount incurred in current Amount incurred in previous
Item non-recurring profit and loss
period period
in current period
Government subsidies 131,475.00 1,658,983.38 131,475.00
Other 952,904.00 2,439,247.16 952,904.00
Total 1,084,379.00 4,098,230.54 1,084,379.00
Government subsidies included in current profit and loss:
Unit: yuan
Amount Amount
Assets/income
Item incurred in incurred in last Source and basis
related
current year year
National stage III diesel vehicles early Earnings
77,000.00 0.00
liquidation subsidies related
Yuhang Civilization Office Earnings
Corporate culture club award subsidies 30,000.00 0.00
(2019) No.18 related
Earnings
Subsidies for training by working 8,500.00 0.00
related
Mass entrepreneurship and innovation Yuhang Economy and Earnings
0.00 1,000,000.00
reward Information Office (2019) No.16 related
Yuhang Culture and Creative Earnings
The Lake public welfare program 0.00 300,000.00
Products Office (2019) No.9 related
Yuhang Labor and Social Earnings
Fitter skills master studio 0.00 100,000.00
Security Bureau (2019) No. 73 related
Subsidies for municipal technical Yuhang Market Supervisory Earnings
0.00 100,000.00
standard projects Authority (2019) No.18 related
Received government subsidies
for notice on Printing and
Government subsidies for undergraduate Earnings
0.00 81,183.38 Distributing Hangzhou University
internship in Hangzhou related
Student Apprenticeship Training
Implementation Measures
List of the fifth skill master Earnings
Fitter skills master studio 0.00 50,000.00
studios in Yuhang District related
Yuhang Development and
Earnings
Liming talent reward 0.00 20,000.00 Management Department (2018)
related
No.31
Yuhang Labor and Social Earnings
Talent project funds 0.00 3,000.00
Security Bureau (2019) No. 24 related
Special financial fund for business 0.00 4,800.00 Yuhang Commerce Department Earnings
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Amount Amount
Assets/income
Item incurred in incurred in last Source and basis
related
current year year
promotion in Zhejiang in 2018 (2019) No.4 related
Earnings
Other 15,975.00 0.00
related
Total 131,475.00 1,658,983.38 — —
75. Non-operating expenditure
Unit: yuan
Amount recorded into
Amount incurred in Amount incurred in
Item non-recurring profit and loss
current period previous period
in current period
Losses from impairment or breakage
34,861.58 318,500.98 34,861.58
of non-current assets
External donations 2,090,000.00 1,000,000.00 2,090,000.00
Other 1,828,383.76 3,005,052.74 1,828,383.76
Total 3,953,245.34 4,323,553.72 3,953,245.34
76. Income tax expenses
(1). Table of Income tax expenses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Income tax expenses in current period 303,369,646.88 290,542,610.55
Deferred income tax expenses -42,122,003.14 -33,257,490.60
Total 261,247,643.74 257,285,119.95
(2) Accounting profit and income tax expense adjustment process
Unit: yuan
Item Amount incurred in current period
Total profit 1,948,605,547.68
The income tax expenses calculated based on
292,290,832.14
statutory/applicable tax rates
Influences caused by different tax rates adopted by subsidiaries 307,640.37
Influences caused by adjustment on income tax of previous
-7,806,372.31
periods
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Influences on non-taxable income -398,460.70
Influences caused by non-deductible cost, expenses and losses 6,121,543.01
Influences caused by non-confirmation of deductible losses of
-20.43
deferred income tax assets
Influences caused by non-confirmation of deductible
2,426,651.51
temporary differences or deductible losses in current period
Influences on taxation caused by research and development
-31,694,169.85
expenses plus deduction (expressed with “-”)
Income tax expenses 261,247,643.74
77. Other comprehensive income
See Note “VI. 31 Other comprehensive income”
78. 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 160,282,611.34 84,590,717.34
Government subsidies 127,625,980.52 120,943,978.04
Agent business 4,896,957.44 17,388,127.18
Imprest 2,627,693.78 22,993,319.48
Margin and deposit 422,768.10 41,884,916.66
L/C deposit 61,930.00 18,128,307.74
Other payments 2,880,904.80 7,897,733.58
Total 298,798,845.98 313,827,100.02
(2) Other cash paid related to operating activities
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Period charge 1,659,646,233.71 1,590,751,809.98
Agent business 44,527,246.51 13,548,409.12
Margin and deposit 13,012,066.02 45,382,283.46
L/C deposit 10,192,656.02 24,475,893.97
Imprest 621,928.41 45,532,204.37
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Other 17,300,131.65 7,125,291.22
Total 1,745,300,262.32 1,726,815,892.12
(3) Other cash received related to financing activities
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Factoring income from accounts
6,076,177.30 0.00
receivable
Total 6,076,177.30 0.00
79. Further information on cash flow statement
(1) Further information on cash flow statement
Unit: yuan
Amount incurred in Amount incurred in
Item
current year last year
1. Reconciliation from net profits to cash flows from operating activities:
Net profit 1,687,357,903.94 1,614,245,354.63
Plus: Provision for impairment of assets 21,977,893.76 9,321,963.35
Credit impairment loss 64,138,118.53 48,823,331.47
Depreciation of fixed assets, oil and gas assets and productive biological
95,376,728.90 91,630,120.96
assets
Amortization of intangible assets 13,619,877.40 13,057,457.00
Amortization of long-term deferred expenses 420,355.97 4,959,043.17
Losses on disposal of fixed assets, intangible assets and other long-term
387,844.96 158,607.19
assets (gains expressed with “-”)
Loss on retirement of fixed assets (gains expressed with “-”) 34,861.58 318,500.98
Loss from fair value change (gains expressed with “-”) 0.00 0.00
Financial expenses (gains expressed with “-”) 7,763,829.30 -535,267.76
Investment losses (gains expressed with “-”) -39,488,969.96 -127,100,794.11
Decreased in deferred income tax assets (increase expressed with “-”) -41,614,914.62 -28,638,199.06
Increase in deferred income tax liabilities (decrease expressed with “-”) -507,088.51 -4,619,291.54
Decrease in inventories (increase expressed with “-”) -68,890,313.40 -1,386,157.52
Decrease in operating receivables (increase expressed with “-”) -681,714,318.42 -489,310,440.32
Increase in operating payables (decrease expressed with “-”) 478,438,149.28 424,296,698.46
Other 0.00 0.00
Net cash flow from operating activities 1,537,299,958.71 1,555,220,926.90
2. Significant investment and financing activities not involving cash deposit
and withdrawal:
Conversion of debt into capital 0.00 0.00
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Amount incurred in Amount incurred in
Item
current year last year
Convertible bonds due within one year 0.00 0.00
Fixed assets under financing lease 0.00 0.00
3. Net changes in cash and cash equivalents:
Ending balance of cash 3,886,096,513.56 4,029,296,265.50
Less: Beginning balance of cash 4,029,296,265.50 2,177,219,858.85
Plus: Ending balance of cash equivalents 0.00 0.00
Less: Ending balance of cash equivalents 0.00 0.00
Net increase of cash and cash equivalents -143,199,751.94 1,852,076,406.65
(2) Composition of cash and cash equivalents
Unit: yuan
Item Year-end balance Beginning balance
I. Cash 3,886,096,513.56 4,029,296,265.50
Including: cash on hand 110,770.11 218,775.77
Bank deposit readily available for payment 3,885,907,031.42 4,029,077,489.73
Other monetary capital readily available for payment 78,712.03 0.00
III. Balance of cash and cash equivalents at the end of period 3,886,096,513.56 4,029,296,265.50
80. 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:
81. Assets with ownership or use rights restricted
Unit: yuan
Item Book value at the end of period Reasons for being limited
Monetary capital 34,956,186.75 L/C and bill deposit
Total 34,956,186.75 --
82. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: yuan
Ending balance in foreign Ending balance converted to
Item Conversion exchange rate
currency RMB
156
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Monetary capital -- --
Including: USD 3,551,939.36 6.5249 23,176,049.13
Euro 646.24 8.0250 5,186.08
AUD 3.29 5.0163 16.50
Accounts receivable -- --
Including: USD 3,094,580.13 6.5249 20,191,825.89
Euro 11,503.56 8.0250 92,316.07
AUD 41,856.83 5.0163 209,966.42
83. No hedging
84. Government subsidies
(1) Basic information of government subsidies
Unit: yuan
Presented Amount recorded into the
Type Amount
items current profit/gain
Financial support funds for enterprise cultivation 54,039,120.00 Other incomes 54,039,120.00
Deferred
No.M2020-09 land fund subsidy of Chengnan New District 28,856,985.00 0.00
income
Unmaned intelligent factory based on 5G and Cloud Deferred
20,000,000.00 173,237.35
technology income
Performance award of Shanghai Hongkou District Finance
3,400,000.00 Other incomes 3,400,000.00
Bureau
Subsidies for technological upgrading project of annual Deferred
2,622,600.00 31,200.93
production of 500,000 income
Social insurance premium refund 2,483,600.00 Other incomes 2,483,600.00
The first batch of subsidies for Hangzhou Kunpeng
2,000,000.00 Other incomes 2,000,000.00
enterprises
Subsidies from the Economic and Information Technology
2,000,000.00 Other incomes 2,000,000.00
Bureau of Yuhang District
Steady post subsidies 1,645,097.07 Other incomes 1,645,097.07
Individual income tax service charge refund 1,111,062.72 Other incomes 1,111,062.72
Rewards on invention of utility model product and appearance 1,031,000.00 Other incomes 1,031,000.00
Subsidies for model enterprises of national intellectual
1,000,000.00 Other incomes 1,000,000.00
property
Market supervision special financial supporting funds for 800,000.00 Other incomes 800,000.00
157
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
industrial development
The first batch of provincial industrial Internet platform
750,000.00 Other incomes 750,000.00
reward funds
2019 Yuhang District patent licensing rewards 572,000.00 Other incomes 572,000.00
High-Tech rewards 500,000.00 Other incomes 500,000.00
Stimulation funds for model innovation of E-commerce 500,000.00 Other incomes 500,000.00
Yuhang Commerce Department Subsidies 500,000.00 Other incomes 500,000.00
Support promotion projects for digital demonstration 500,000.00 Other incomes 500,000.00
Subsidies from Yuhang Market Supervisory Authority 400,000.00 Other incomes 400,000.00
2019 corporate patents and trademarks protection 362,885.00 Other incomes 362,885.00
The 20th China Appearance Design Gold Medal Project 300,000.00 Other incomes 300,000.00
Subsidies from Yuhang District Employment Management
256,836.00 Other incomes 256,836.00
Service Center
Production-university-research cooperation project 250,000.00 Other incomes 250,000.00
Industrialization of patent for invention in Yuhang District 200,000.00 Other incomes 200,000.00
Social security subsidies 178,688.73 Other incomes 178,688.73
2019-2020 Provincial Industry New Products Awards 150,000.00 Other incomes 150,000.00
Subsidies from Yuhang Science and Technology Bureau 147,300.00 Other incomes 147,300.00
Business incentives 137,207.00 Other incomes 137,207.00
Subsidies for exhibition abroad 112,700.00 Other incomes 112,700.00
Subsidies for third-party platform deduction 100,000.00 Other incomes 100,000.00
Operating Skill Master Studio of Cheng Peng Processing
100,000.00 Other incomes 100,000.00
Center
Shaoxing Industrial Design Center 100,000.00 Other incomes 100,000.00
Income subsidies 92,700.00 Other incomes 92,700.00
Non-operating
National stage III diesel vehicles early liquidation subsidies 77,000.00 77,000.00
income
Financial subsidies from Yuhang Finance Bureau 60,000.00 Other incomes 60,000.00
Awards for key enterprises by Shanghai Hongkou District
60,000.00 Other incomes 60,000.00
Investment Promotion Office
2019 Hangzhou Embedded Microwave Oven Standardization
58,000.00 Other incomes 58,000.00
Project Award
Robam Association for Science and Technology - Robam
30,000.00 Other incomes 30,000.00
Appliance International Innovation Design Award
Non-operating
Corporate culture club award subsidies 30,000.00 30,000.00
income
158
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
2018 Fund Patent of Economic Policy of Industry 28,544.00 Other incomes 28,544.00
Subsidies for employment of disabled person 20,100.00 Other incomes 20,100.00
VAT exemption or reduction 18,000.00 Other incomes 18,000.00
Non-operating
Subsidies for training by working 8,500.00 8,500.00
income
Cost of maintenance for patent invention 8,080.00 Other incomes 8,080.00
Hiring subsidies 6,000.00 Other incomes 6,000.00
Smart electricity subsidies 5,000.00 Other incomes 5,000.00
Subsidies from Yuhang District Federation of Trade Unions 1,000.00 Other incomes 1,000.00
Non-operating
Other 15,975.00 15,975.00
income
VIII. Changes in Consolidation Scope
On October 25, 2020, the Company's holding subsidiary Shengzhou Kinde and Gongqingcheng Binlan Investment
partnership (limited partnership) (hereinafter referred to as "Binlan Investment") signed a Project Cooperation
Agreement. The agreement stipulates that both parties jointly contribute to the establishment of Cooking Future with
registered capital of 50 million yuan, including 35 million yuan contributed by Shengzhou Kinde, accounting for 70%
of the equity, and 15 million yuan contributed by Binlan Investment, accounting for 30% of the equity. There are 7
directors on the board of directors of Cooking Future, including 4 directors from Shengzhou Kinde and 3 directors from
Binglan Investment. The resolution of the board of directors must be approved by more than half of the members of the
board of directors, so Shengzhou Kinde controls Cooking Future. Cooking Future has completed the industrial and
commercial registration on November 16, 2020 and is currently in the preparation period.
IX. Rights in Other Main Bodies
1. Rights in subsidiaries
(1) Composition of enterprise group
Principal Shareholding ratio
Registration
Subsidiary name place of Business nature Way of obtaining
place Direct Indirect
business
Sales of kitchen Business
Beijing Robam Electric Appliance
Beijing Beijing electric appliance 100.00% 0.00% combination under
Sales Co., Ltd.
products common control
Sales of kitchen Business
Shanghai Robam Electric
Shanghai Shanghai electric appliance 100.00% 0.00% combination under
Appliance Sales Co., Ltd.
products common control
Hangzhou Mingqi Electric Co., Sales of kitchen Acquisition by
Hangzhou Hangzhou 100.00% 0.00%
Ltd. electric appliance establishment
159
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
products
Sales of kitchen
Dize Home Appliance Trading Acquisition by
Shanghai Shanghai electric appliance 51.00% 0.00%
(Shanghai) Co., Ltd. investment
products
Production and Business
Shengzhou Kinde Intelligent sales of kitchen combination not
Shengzhou Shengzhou 51.00% 0.00%
Kitchen Electric Co., Ltd. electric appliance under common
products control
Assets and
Hangzhou Robam Fuchuang Acquisition by
Hangzhou Hangzhou investment 100.00% 0.00%
Investment Management Co., Ltd. establishment
management
Zhejiang Cooking Future Design of smart Acquisition by
Shengzhou Shengzhou 35.70%
Technology Co., Ltd. kitchen establishment
Note: The basis on which the Company holds 50% voting power of Cooking Future or lower but still
controls Cooking Future: as stated in note "VII. Changes in the Scope of Consolidation", since the Company
controls Shengzhou Kinde, so it also controls holding subsidiaries of Shengzhou Kinde.
(2) Important non-wholly owned subsidiary
Unit: yuan
Minority Current profits and losses
Current dividends declared Ending balance of
Subsidiary name shareholding attributable to minority
to minority shareholders minority equity
ratio shareholders
Shengzhou Kinde
Intelligent Kitchen 49.00% 26,833,282.53 0.00 140,060,805.66
Electric Co., Ltd.
Zhejiang Cooking Future
30.00% -225,377.50 0.00 6,424,622.50
Technology Co., Ltd.
(3) Main financial information of important non-wholly owned subsidiaries
Unit: yuan
Year-end balance Beginning balance
Subsid Curren Non-c Curren Non-c
Non-c Total Non-c Total
iary Curren Total t urrent Curren Total t urrent
urrent liabilit urrent liabiliti
name t assets assets liabiliti liabilit t assets assets liabiliti liabiliti
assets ies assets es
es ies es es
Sheng
302,56 177,61 480,17 153,84 34,067 187,91 230,11 85,542 315,65 78,861 84,579
zhou 5,717,
2,407. 5,050. 7,458. 6,712. ,744.7 4,457. 3,578. ,835.3 6,414. ,987.9 ,836.2
Kinde 848.25
94 45 39 26 4 00 72 2 04 8 3
Intellig
160
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
ent
Kitche
n
Electri
c Co.,
Ltd.
Zhejia
ng
Cooki
ng 23,647 23,704
56,337 305,53 305,53
Future ,941.3 ,278.4 0.00 0.00 0.00 0.00 0.00 0.00 0.00
.05 6.79 6.79
Techn 9 4
ology
Co.,
Ltd.
Unit: yuan
Amount incurred in current period Amount incurred in previous period
Total Cash flow Total Cash flow
Subsidiary
Operating comprehen from Operating comprehen from
name Net profit Net profit
income sive financing income sive financing
income activities income activities
Shengzhou
Kinde
Intelligent 276,441,38 54,536,423 54,536,423 125,090,04 229,610,99 49,858,521 49,858,521 69,351,227
Kitchen 2.99 .58 .58 2.97 1.10 .98 .98 .07
Electric
Co., Ltd.
Zhejiang
Cooking
-751,258.3 -751,258.3 -615,581.1
Future 0.00 0.00 0.00 0.00 0.00
5 5 4
Technolog
y Co., Ltd.
(3) 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
Cooperative enterprise: -- --
Total book value of investment 3,452,769.59 4,168,338.79
Total number of following items by -- --
161
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
shareholding ratio
- Joint venture: -- --
Total number of following items by
-- --
shareholding ratio
- Net profit -715,569.20 1,550,487.63
- Total comprehensive income -715,569.20 1,550,487.63
Other description
Name of cooperative Principal Registratio Business nature Shareholding ratio Accounting treatment
enterprise place of n place （%） method of investment in joint
business Direct Indirect ventures
De Dietrich Trade Shanghai Shanghai Sales of kitchen 51.00 0.00 Equity method
(Shanghai) Co., Ltd. appliances
X. Risks Related to Financial Tools
The main financial instruments of the Company include accounts receivable, accounts payable, etc. The
detailed description of the financial instruments is shown in Note VI. The risks associated with these
financial instruments and the risk management policies adopted by the Company to mitigate these risks are
described below. The management of the Company shall manage and monitor these risk exposures to ensure
that the above risks are controlled within the limited scope.
The Company's various risk management objectives and policies are as follows:
The Company’s risk management is to strike an appropriate balance between risks and benefits, minimize the
negative impact of risks on the Company's business performance and maximize the interests of shareholders
and other equity investors. Based on this risk management objective, the basic strategy of the Company's risk
management is to determine and analyze various risks faced by the Company, establish an appropriate
bottom line for risk tolerance, make risk management and timely and reliably supervise various risks to
control the risks within the limited scope.
1. Market risk - Price risk
The Company sells the products at market prices and are therefore subject to price fluctuations.
2. Credit risk
As of December 31, 2020, the largest credit risk exposure that may cause financial losses of the Company
mainly comes from the loss of financial assets of the Company caused by the failure of the other party to
fulfill its obligations, including the book value of financial assets recognized in the consolidated balance
sheet.
In order to reduce credit risks, the Company shall assign special personnel to determine the credit limit,
conduct credit examination and approval, and implement other monitoring procedures to ensure that
162
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
necessary measures are taken to recover overdue claims. Moreover, the Company shall review the recovery
of each single receivable on each balance sheet date to ensure that adequate bad debt provisions are
withdrawn for unrecoverable amounts. Therefore, the Company's management believes that the Company's
credit risk has been greatly reduced.
The Company's working capital is deposited in banks with high credit rating, so the credit risk of working
capital is low.
There is no significant credit concentration risk due to the Company's risk exposure to multiple parties and
customers.
The Company has adopted the necessary policies to ensure that all trade debtors have good credit records,
therefore there is no significant credit concentration risk.
3. Liquidity Risk
Liquidity risk refers to the risk that the Company is unable to perform its financial obligations at maturity.
The Company manages its liquidity risk by ensuring that it has sufficient liquidity to meet maturing
obligations without causing unacceptable losses or damage to the credibility of the business. The
management of the Company has conducted a detailed inspection on its working capital, and has made
periodic analysis of liability structure, deadline and bank line of credit to ensure that funds is sufficient. It
concluded that the Company has sufficient funds to meet the Company’s short-term debt and capital
expenditures needs. The analysis of the financial assets and financial liabilities held by the Company based
on the maturity of the undiscounted remaining contract obligations is as follows:
Amount on December 31, 2020:
One to two Two to five More than
Item Within one year Total
years years five years
Financial assets 9,170,579,881.17 9,170,579,881.17
Monetary capital 3,921,052,700.31 3,921,052,700.31
Trading financial
2,352,000,000.00 2,352,000,000.00
assets
Notes receivable 1,832,701,443.08 1,832,701,443.08
Accounts receivable 1,008,235,946.40 1,008,235,946.40
Other receivables 56,589,791.38 56,589,791.38
Financial liabilities 2,976,936,298.11 2,976,936,298.11
Short-term borrowing 6,076,177.30 6,076,177.30
Notes payable 751,802,498.92 751,802,498.92
Accounts payable 1,723,832,208.09 1,723,832,208.09
Other payables 242,559,615.30 242,559,615.30
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
One to two Two to five More than
Item Within one year Total
years years five years
Payroll payable 126,130,391.24 126,130,391.24
Other current
126,535,407.26 126,535,407.26
liabilities
4. Foreign exchange risk
The Company's exchange rate risk is mainly related to US dollar, Euro, Hong Kong dollar and other
currencies. 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. As of December 31, 2020, the Company's assets and liabilities were RMB balance,
except the foreign currency balance of the assets and liabilities in Note “VI. 51 Foreign currency monetary
items”. The foreign exchange risks arising from the assets and liabilities of such foreign currency balance
may have an impact on the Company's business performance.
The Company pays close attention to the exchange rate movement on its foreign exchange risks. and has not
taken any measures to avoid foreign exchange risks.
XI. Fair Value Disclosure
1. Assets measured by fair value or fair value at end of period of debt
Unit: yuan
Ending fair value
Measurement of Measurement of
Item Measurement of fair
fair value at the fair value at the Total
value at the third level
first level second level
I. Continuous fair value measurement -- -- -- --
(I) Trading financial assets 0.00 0.00 2,352,000,000.00 2,352,000,000.00
1. FVTPL 0.00 0.00 2,352,000,000.00 2,352,000,000.00
(III) Other equity instrument
102,116,023.22 102,116,023.22
investments
Total liabilities measured with
0.00 0.00 2,454,116,023.22 2,454,116,023.22
continuous fair value continuously
II. Non-continuous fair value
-- -- -- --
measurement
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
2. Analysis on adjusted information of book value between the beginning and the end of period and
sensibility of non-visible parameters for continous items measured by third-tier fair value
Item December 31, 2020 Valuation technique Significant Relationship between
Fair value unobservable value unobservable value
and fair value
Bank financial products 2,352,000,000.00 Best estimate of fair value Investment cost —
Other equity instrument 102,116,023.22 Best estimate of fair value Investment cost —
investments
XII. Related Party and Related Trading
1. Parent company of the Company
Shareholding ratio Voting right ratio
Parent company of the parent of the parent
Registration place Business nature Registered capital
name company in the company in the
Company Company
Hangzhou Robam Investment and
Hangzhou,
Industrial Group industrial RMB 60 million 49.68% 49.68%
Zhejiang
Co., Ltd. management
2. Subsidies of the Company
See Note “ Composition of the Company” for the details of the subsidiaries.
3. Cooperative enterprise and joint venture of the Company
See Note “Important cooperative enterprises” for important cooperative enterprises or joint ventures of the Company.
4. Situation of other related parties
Name of other related parties Relationship between the Company with other related parties
Hangzhou Amblem Household 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
Shaoxing Kinde Electric Appliance Co., Ltd. Other shareholders of subsidiaries controlled by the Company
Hangzhou Guoguang Touring Commodity Co., Ltd. Controlled by the same parent company
165
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
5. Related trading
(1) Related transaction of purchases and sales of goods, provision and acceptance of services
Purchase of goods/acceptance of services
Unit: yuan
Content of related Amount incurred in Whether the transaction Amount incurred in
Related party
trading current period quota is exceeded previous period
Hangzhou Yuhang Matt Spray Painting
Labor receiving 11,303,674.25 No 13,955,880.37
Factory
Hangzhou Bonyee Daily Necessity
Product purchase 2,019,569.34 No 3,616,184.73
Technology Co., Ltd.
Hangzhou Amblem Household Co.,
Product purchase 1,814,159.29 No 1,993,224.66
Ltd.
Hangzhou Guoguang Touring
Product purchase 857,890.96 No 0.00
Commodity Co., Ltd.
Hangzhou Yuhang Robam Gas Station
Product purchase 678,662.70 No 1,008,020.11
Co., Ltd.
Hangzhou Nbond Nonwoven Co., Ltd. Product purchase 67,343.18 No 39,765.92
Garden Hotel Hangzhou Labor receiving 0.00 No 16,466.04
De Dietrich Trade (Shanghai) Co., Ltd. Product purchase 0.00 No 4,513.27
Table of selling commodities/ labor service providing
Unit: yuan
Content of related Amount incurred in Amount incurred in
Related party
trading current period previous period
Hangzhou Amblem Household Co., Ltd. Selling commodities 6,079,306.17 10,855,275.49
Shaoxing Kinde Electric Appliance Co., Ltd. Selling commodities 1,955,652.51 24,532,147.26
De Dietrich Trade (Shanghai) Co., Ltd. Selling commodities 0.00 68,820.97
(2) Related-party lease
The Company as the lessor:
Unit: yuan
Type of leased Lease income recognized in Lease income recognized in
Name of lessee
assets the current period the previous period
Hangzhou Robam Industrial Group Co.,
House 28,800.00 28,800.00
Ltd.
The company as the lessee:
Unit: yuan
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Type of leased Rental fees confirmed in the Rental fees confirmed in the
Name of the Lessor
assets current period previous period
Hangzhou Robam Industrial Group Co.,
House 550,024.57 550,024.57
Ltd.
(3) Key management personnel remuneration
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Total remuneration 10,849,828.94 9,823,762
6. Accounts receivable and payable by related parties
(1) Receivables
Year-end balance Beginning balance
Project name Related party Provision for Provision for
Book balance Book balance
bad debt bad debt
Hangzhou Amblem
Advance to supplier 0.00 50,000.00
Household Co., Ltd.
Shaoxing Kinde Electric
Advance to supplier 0.00 580,130.26
Appliance Co., Ltd.
Unit: yuan
(2) Payables
Unit: yuan
Year-begining book
Project name Related party Year-end book balance
balance
Accounts payable Hangzhou Yuhang Matt Spray Painting Factory 3,182,779.20 4,525,094.50
Accounts payable Hangzhou Yuhang Robam Gas Station Co., Ltd. 2,257,834.37 1,490,945.55
Accounts payable Hangzhou Guoguang Touring Commodity Co., Ltd. 22,336.73 0.00
Accounts payable Shaoxing Kinde Electric Appliance Co., Ltd. 0.00 57,552.91
Accounts payable Hangzhou Amblem Household Co., Ltd. 0.00 1,841.61
Other payables Hangzhou Yuhang Matt Spray Painting Factory 200,000.00 200,000.00
Other payables Hangzhou Guoguang Touring Commodity Co., Ltd. 2,000.00 0.00
Advance from
Hangzhou Amblem Household Co., Ltd. 0.00 139,622.44
customers
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7. Related party commitment
Shengzhou Kinde, a subsidiary of the Company, made a commitment to invest 35 million yuan in Cooking Future. 17.5 million yuan
has been paid in, with 70% stock right. The remaining 17.5 million yuan shall be paid in full before December 31, 2021.
XIII Share-based Payment
XIV Commitment Issues or Contingencies
1. Important commitment issues
Important commitment at the date of balance sheet:
Signed lease contracts that are being performed or are about to be performed and its financial influences
On December 31, 2020 (T), The Company has signed the irrevocable business leasing, which is being
performed or about to be performed shall bear the following payments during the following periods:
Period Business Leasing
T+1 year 1,676,569.00
T+2 year 2,037,031.35
T+3 year 2,112,477.00
After T+ 3 years 15,569,483.43
Total 21,395,560.78
Except for the aforementioned commitment issues , the Company has no other major commitment issues as
of the date of presentation of the financial statements.
2. Contingencies
(1) Important contingencies at the date of balance sheet:
The Company had no significant contingencies to be disclosed as of December 31, 2020.
(2) Remarks are also required if there is no important contingencies to be disclosed
The Company has no important contingencies to be disclosed.
XII Post-balance Sheet Events
21. Profit distribution
At the Company’s 5th meeting of the 5th Board of Directors on April 27, 2021, the Profit Distribution Plan for 2020
was approved. Based on the total share capital of 949,024,050.00 as at December 31, 2020, the Company intends to pay
a cash dividend of 5.00 yuan (tax inclusive) per 10 shares to all shareholders, for a total of 474,512,025.00 yuan. The
proposal shall be approved by shareholders' general meeting
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
XVI. Other Important Issues
XVII. Notes on Main Items of Parent Company's Financial Statement
1. Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: yuan
Year-end balance Beginning balance
Provision for bad
Book balance Book balance Provision for bad debt
debt
Category Book
Accruin
Accruing Book value
Proporti g value Proportio
Amount Amount Amount Amount proportio
on proporti n
n
on
Accounts receivable of
11,250,7 8,407,63 2,843,14
provision for bad debt 1.13% 74.73%
79.60 9.24 0.36
by single item
Including:
Accounts receivable of
984,599, 53,832,3 930,766, 743,804, 39,557,1 704,246,88
provision for bad debt 98.87% 5.47% 100.00% 5.32%
159.57 90.64 768.93 053.68 68.87 4.81
by combination
Including:
Combination of related 26,572,5 26,572,5 22,246,7 22,246,710.
2.67% 0.00 0.00% 2.99% 0.00 0.00%
party 41.50 41.50 10.00 00
Accounts receivable of
provision for bad debt
958,026, 53,832,3 904,194, 721,557, 39,557,1 682,000,17
by expected credit loss 96.20% 5.62% 97.01% 5.48%
618.07 90.64 227.43 343.68 68.87 4.81
combination based on
aging features
995,849, 62,240,0 933,609, 743,804, 39,557,1 704,246,88
Total 100.00% 100.00%
939.17 29.88 909.29 053.68 68.87 4.81
Provision for bad debt by single item:
Unit: yuan
Year-end balance
Name
Book balance Provision for bad debt Accruing proportion Reasons for provision
Provision for bad debt Expected to be
1,773,645.05 1,773,645.05 100.00%
by single item irrecoverable
Provision for bad debt 9,477,134.55 6,633,994.19 70.00% Expected risk of
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
by single item recovery
Total 11,250,779.60 8,407,639.24 -- --
Unit: yuan
Year-end balance
Name
Book balance Provision for bad debt Accruing proportion
Within 1 year 900,370,064.21 45,018,503.20 5.00%
1-2 years 44,742,447.58 4,474,244.76 10.00%
2-3 years 8,364,305.72 1,672,861.14 20.00%
3-4 years 3,640,702.45 1,820,351.23 50.00%
4-5 years 313,338.98 250,671.18 80.00%
More than 5 years 595,759.13 595,759.13 100.00%
Total 958,026,618.07 53,832,390.64 --
Provision for bad debt by combination: accounts receivable of provision for bad debt by combination of related party
Unit: yuan
Year-end balance
Name
Book balance Provision for bad debt Accruing proportion
Combination of related party 26,572,541.50 0.00 0.00%
Total 26,572,541.50 --
Disclosure by aging
Unit: yuan
Aging Book balance
Within 1 year (including 1 year) 936,163,103.72
Within 1 year (including 1 year) 936,163,103.72
1-2 years 44,934,833.62
2-3 years 8,428,556.22
More than 3 years 6,323,445.61
3-4 years 3,640,702.45
4-5 years 313,338.98
More than 5 years 2,369,404.18
Total 995,849,939.17
(2) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Changes in amount in current period
Beginning Year-end
Category Recovered or Canceled after
balance Provision Other balance
reversed verification
Provision for bad
debt of accounts 39,557,168.87 22,682,861.01 0.00 0.00 62,240,029.88
receivable
Total 39,557,168.87 22,682,861.01 0.00 0.00 62,240,029.88
(3) Accounts receivable actually written off at the current period N/A
(4) Receivables with top 5 ending balances by debtor
Unit: yuan
Proportion in total ending
Ending balance of accounts Ending balance of bad debt
Unit name balance of accounts
receivable provision
receivable
Unit 1 136,953,186.67 13.75% 6,847,659.33
Unit 2 106,880,264.70 10.73% 5,344,013.24
Unit 3 80,824,103.79 8.12% 4,041,205.19
Unit 4 22,204,462.73 2.23% 1,568,955.14
Unit 5 19,105,863.54 1.92% 955,293.18
Total 365,967,881.43 36.75%
2. Other receivables
Unit: yuan
Item Year-end balance Beginning balance
Dividends receivable 14,295,039.38
Other receivables 49,092,820.31 91,471,115.57
Total 49,092,820.31 105,766,154.95
(1) Dividends receivable
Unit: yuan
Project (or investee) Year-end balance Beginning balance
Suzhou Industrial Park Ruican Investment
0.00 14,295,039.38
Enterprise (limited partnership)
Total 14,295,039.38
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(2) Other receivables
1) Other receivables classified by nature
Unit: yuan
Fund nature Year-end book balance Year-begining book balance
Collection by third party 20,064,674.31 63,604,415.88
Deposit and margin 33,786,199.08 32,288,103.90
Associated transactions 4,064,000.00 4,064,000.00
Withheld amount 2,256,187.63 2,174,992.54
Imprest 1,383,261.26 1,572,298.56
Other 3,199,125.99 457,769.11
Total 64,753,448.27 104,161,579.99
2) Provision for bad debt
Unit: yuan
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss for Expected credit loss for
Provision for bad debt Total
losses over the next the entire duration (no the entire duration (credit
12 months credit impairment) impairment has occurred)
Balance on January 01,
12,690,464.42 0.00 0.00 12,690,464.42
2020
Balance on January 1,
—— —— —— ——
2020 in current period
Withdrawn in current
2,970,163.54 0.00 0.00 2,970,163.54
period
Balance on December
15,660,627.96 0.00 0.00 15,660,627.96
31, 2020
Large book balance change in the current period of provision for loss
□ Applicable √ Not applicable
Disclosure by aging
Unit: yuan
Aging Book balance
Within 1 year (including 1 year) 33,938,330.46
Within 1 year (including 1 year) 33,938,330.46
1-2 years 7,428,219.56
2-3 years 2,771,023.85
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
More than 3 years 20,615,874.40
3-4 years 15,763,946.00
4-5 years 336,083.46
More than 5 years 4,515,844.94
Total 64,753,448.27
3) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
Changes in amount in current period
Beginning Canceled
Category Recovered or Year-end balance
balance Provision after Other
reversed
verification
Provision for bad
12,690,464.
debt of other 2,970,163.54 0.00 0.00 15,660,627.96
42
receivables
12,690,464.
Total 2,970,163.54 0.00 0.00 15,660,627.96
42
4) Other receivables actually written off at the current period N/A
5) Other receivables with top 5 ending balances by debtor
Unit: yuan
Proportion in total
Ending balance of
Unit name Nature of payment Year-end balance Aging other ending
bad debt provision
balance receivable
Deposit and
Unit 1 14,778,000.00 3-4 years 22.82% 7,389,000.00
margin
Collection by third
Unit 2 14,390,028.64 Within 1 year 22.22% 719,501.43
party
Collection by third
Unit 3 3,852,394.93 Within 1 year 5.95% 192,619.75
party
Deposit and
Unit 4 3,000,000.00 1-2 years 4.63% 300,000.00
margin
Deposit and
Unit 5 2,218,384.00 Within 1 year 3.43% 110,919.20
margin
Total -- 38,238,807.57 -- 59.05% 8,712,040.38
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
3. Long-term equity investment
Unit: yuan
Year-end balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment
to
246,905,933.73 20,400,000.00 226,505,933.73 246,905,933.73 20,400,000.00 226,505,933.73
subsidiary
company
Investment
on joint
ventures
3,452,769.59 0.00 3,452,769.59 4,168,338.79 0.00 4,168,338.79
and
cooperative
enterprises
Total 250,358,703.32 20,400,000.00 229,958,703.32 251,074,272.52 20,400,000.00 230,674,272.52
(1) Investment on subsidiaries
Unit: yuan
Increase or decrease in current period Balance of
Beginning
Provision Ending balance impairment
Invested unit balance (book Further Capital
for Other (book value) provision at the
value) investment reduction
impairment end of period
Shengzhou
Kinde
Intelligent
162,320,000.00 0.00 0.00 0.00 162,320,000.00 0.00
Kitchen
Electric Co.,
Ltd.
Hangzhou
Mingqi
51,901,780.81 0.00 0.00 0.00 51,901,780.81 0.00
Electric Co.,
Ltd.
Dize Home
Appliance
Trading 21,030,900.00 0.00 0.00 0.00 21,030,900.00 20,400,000.00
(Shanghai)
Co., Ltd.
Shanghai 5,838,272.10 0.00 0.00 0.00 5,838,272.10 0.00
174
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Robam
Electric
Appliance
Sales Co.,
Ltd.
Beijing
Robam
Electric
5,814,980.82 0.00 0.00 0.00 5,814,980.82 0.00
Appliance
Sales Co.,
Ltd.
Total 226,505,933.73 226,505,933.73 20,400,000.00
(2) Investment on joint ventures and cooperative enterprises
Unit: yuan
Increase or decrease in current period
Investm Balance
ent Declare of
Beginni gains Adjust d impair
Ending
ng and ment of Change paymen Provisi ment
Investe Further Capital balance
balance losses other s in t of on for provisi
d entity investm reducti Other (book
(book recogni compre other cash impair on at
ent on value)
value) zed by hensive equity dividen ment the end
the income ds or of
equity profits period
method
I. Joint enterprise
De
Dietric
h Trade
4,168,3 -715,56 3,452,7
(Shang 0.00 0.00 0.00 0.00 0.00 0.00
38.79 9.20 69.59
hai)
Co.,
Ltd.
Subtota 4,168,3 -715,56 3,452,7
0.00 0.00 0.00 0.00 0.00 0.00
l 38.79 9.20 69.59
II. Joint venture
4,168,3 -715,56 3,452,7
Total 0.00
38.79 9.20 69.59
175
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
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 7,371,735,814.27 3,327,933,213.49 7,010,004,348.48 3,315,886,553.65
Other businesses 158,693,150.69 47,551,519.54 161,269,622.80 64,568,317.30
Total 7,530,428,964.96 3,375,484,733.03 7,171,273,971.28 3,380,454,870.95
5. Investment income
Unit: yuan
Amount incurred in current Amount incurred in previous
Item
period period
long-term equity investment gains measured by employing
-715,569.20 1,550,487.63
the equity method
Investment income from trading financial assets during the
20,859,653.65 102,743,555.45
holding period
Dividend income from other equity instrument investments
11,985,836.92 14,295,039.38
in the holding period
Total 32,129,921.37 118,589,082.46
XVIII. Further Information
1. Items of non-recurring profit and loss in current period
√Applicable □ Not applicable
Unit: yuan
Item Amount Description
Profit/loss on disposal of non-current assets -422,706.54
Government subsidies included into the current profits and losses, except those
government subsidies, which are closely related to the business of a company and 91,184,657.20
enjoyed in accordance with a certain standard quota or quantity of the state
Income and expenditure other than those mentioned above -2,965,479.76
Less: Amount affected by income tax 11,202,215.16
Amount of influence of minority shareholders' equity 428,863.68
Total 76,165,392.06 --
Explain the non-recurrent profit and loss items defined by the Company according to the Interpretative Announcement No. 1 on
Information Disclosure of Public Securities Issuing Companies - Non-recurrent Profits and Losses and defined from the
176
Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
non-recurrent profit and loss items enumerated in the Interpretative Announcement No. 1 on Information Disclosure of Public
Securities Issuing Companies - Non-recurrent Profits and Losses.
□ Applicable √ Not applicable
2. Return on net assets and earnings per share
Earnings Per Share
Weighted average return on net
Reporting profit Basic EPS Diluted EPS
assets
(yuan/share) (yuan/share)
Net profit attributable to common
22.39% 1.75 1.75
shareholders of the Company
Net margin attributable to the
company’s common share holders after 21.36% 1.67 1.67
deducting non-recurring profit and loss
3. Accounting data difference under domestic and foreign accounting standards
(1) Differences between net profits and net assets in financial statements disclosed according to the
International Accounting Standards (IAS) and Chinese Accounting Standards simultaneously
□ Applicable √ Not applicable
(2) Differences between net profits and net assets in financial statements disclosed according to the
Overseas Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable √ Not applicable
(3) Causes for differences in accounting data under domestic and foreign accounting standards. If the
difference adjustment has been made to the data audited by the overseas audit institution, the name of the
overseas audit institution shall be indicated
4. Others
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Hangzhou Robam Appliances Co., Ltd. 2020 Full Annual Report
Section 13: Reference file directory
I. Financial statements containing signatures of the legal representative, the head of accounting work, and the
head of accounting body with seals.
II. Original audit report stamped by ShineWing Certified Public Accountants (Special general partnership) and
signed and stamped with the certified public accountants.
III. Original copies of the documents and announcement of the Company published on the newspaper designated
by the CSRC in the reporting period.
IV. 2020 annual report of the Company signed by the legal representative.
V. Other relevant information
VI. Reference files kept at: board office.
178
