Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Hangzhou Robam Appliances Co., Ltd.
Semi-Annual Report 2022
August 2022
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Chapter 1 Important Notes, Contents and Interpretations
The Board of Directors, the Board of Supervisors, as well as the directors, supervisors and senior
management of Hangzhou Robam Appliances Co., Ltd. (the Company) hereby guarantee that there are
no false representations, misleading statements, or material omissions in this Semi-Annual Report (“the
Report”), and are severally and jointly liable for the authenticity, accuracy and completeness of the
information contained herein.
Ren Jianhua, the head of the Company, Zhang Guofu, the person in charge of the Company’s
accounting, and Zhang Guofu, the head of the accounting department (the accountant in charge) hereby
declare and warrant that the financial report contained in the Report is authentic, accurate, and
complete.
All the directors attended a board meeting, during which they reviewed the Report. The Company
is exposed to risks such as fluctuations in the real estate market, price fluctuations of raw materials and
intensified market competition, so investors shall pay attention to
investment risks.
The Company does not plan to distribute cash dividends or bonus shares, or convert capital reserve
into capital stock.
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Contents
Chapter 1 Important Notes, Contents and Interpretations ................................................................................ 1
Chapter 2 Company Profile and Major Financial Indicators ........................................................................... 5
Chapter 3 Management Discussion and Analysis ................................................................................................. 8
Chapter 4 Corporate Governance............................................................................................................................. 17
Chapter 5 Environmental and Social Responsibilities ................................................................................. 20
Chapter 6 Significant Matters ........................................................................................................................ 21
Chapter 7 Changes in Shares and Shareholders ................................................................................................... 25
Chapter 8 Preferred Shares ........................................................................................................................................ 31
Chapter 9 Bonds ............................................................................................................................................................ 32
Chapter 10 Financial Report ...................................................................................................................................... 33
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Documents available for reference
I. Financial statement signed by the legal representative, the person in charge of accounting and the head of the
accounting department and affixed with seal.
II. Original copies of documents and announcements of the Company published in the newspaper designated by
China Securities Regulatory Commission during the Reporting Period.
III. The Semi-Annual Report 2022 signed by the legal representative.
IV. Other information.
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Interpretations
Item refer(s) to Contents
The Company, Company, Robam refer to Hangzhou Robam Appliances Co., Ltd.
Appliances
MingQi refers to Hangzhou MingQi Electric Co., Ltd.
Kinde Subsidiary refers to Shengzhou Kinde Intelligent Kitchen Appliances
Co., Ltd.
Robam Group refers to Hangzhou Robam Industrial Group Co., Ltd.,
controlling shareholder of the Company
The reporting period refers to The first half of 2022
AVC refers to Beijing All View Cloud Data Technology Co., Ltd.
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Chapter 2 Company Profile and Major Financial Indicators
I. Company Profile
Stock abbreviation Robam Stock code 002508
Stocks traded on Shenzhen Stock Exchange
Chinese name of the Company Hangzhou Robam Appliances Co., Ltd.
Short Chinese name of the
Robam
Company (if any)
Legal representative of the
Ren Jianhua
Company
II. Contact Person and Contact Information
Secretary of the Board of Directors Representative of securities affairs
Name Wang Gang Jiang Yu
No. 592, Linping Avenue, Linping No. 592, Linping Avenue, Linping
Contact address
District, Hangzhou, Zhejiang Province District, Hangzhou, Zhejiang Province
Telephone 0571--86187810 0571--86187810
Fax 0571--86187769 0571--86187769
E-mail wg@robam.com jy@robam.com
III. Other Information
1. Contact information
Whether the registered address, office address and zip code as well as the website and email address of the Company changed
during the reporting period?
□Applicable √ Not applicable
There are no changes in the registered address, office address and zip code as well as the website and email address of the Company
during the reporting period. For details, please refer to the Annual Report 2021.
2. Information disclosure and filing location
Whether the information disclosure and filing locations changed during the reporting period?
□Applicable √ Not applicable
During the reporting period, there were no changes in the newspapers designated by the Company for information disclosure, the
website designated by China Securities Regulatory Commission (CSRC) for publishing the semi-annual report, and the location for
filing the semi-annual report of the Company. For details, please refer to the Annual Report 2021.
IV. Other information
Whether other relevant information changed during the reporting period?
□Applicable √ Not applicable
IV. Key Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of previous years?
□ Yes √ No
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
The reporting period The same period last year YoY change
Operating Income (RMB) 4,444,310,099.69 4,326,082,031.62 2.73%
Net profit attributable to shareholders of the 723,549,381.25 790,388,759.79 -8.46%
listed company (RMB)
Net profit attributable to shareholders of
the listed company after deducting non- 635,845,084.07 746,385,371.21 -14.81%
recurring gains/losses (RMB)
Net cash flow from operating activities 322,855,122.33 730,222,059.09 -55.79%
(RMB)
Basic earnings per share (EPS) (RMB/share) 0.76 0.83 -8.43%
Diluted EPS (RMB/share) 0.76 0.83 -8.43%
Weighted average return on net assets 8.05% 9.49% -1.44%
End of the reporting
End of last year Change
period
Total assets (RMB) 13,982,964,746.92 13,906,035,181.12 0.55%
Net assets attributable to shareholders of the 8,882,527,028.79 8,627,026,739.27 2.96%
listed company (RMB)
V. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Whether there are differences in the net profit and net asset disclosed in the Financial Report under
International Accounting Standards (IAS) and China’s accounting standards?
□Applicable √Not applicable
There is no difference in the net profit and net asset disclosed in the Financial Report under IAS and China’s accounting standards
during the reporting period.
2. Whether there are differences in the net profit and net asset disclosed in the Financial Report under
foreign accounting standards and China’s accounting standards during?
□Applicable √Not applicable
There is no difference in the net profit and net asset disclosed in the Financial Report under foreign accounting standards and
China’s accounting standards during the reporting period.
VI. Items and Amounts of Non-recurring Gains and Losses
√Applicable □Not applicable
In RMB
Item Amount Description
Gains and losses on disposal of non-current assets (including the part written- -34,179.72
off with provision for asset impairment accrued)
Government subsidy included in current gains and losses (except the 70,291,099.51
government subsidy closely related to the Company’s normal business, in
line with national policy and enjoyed by quota or ration in accordance
with the unified national standard)
Reversal of provision for impairment of receivables separately tested for 35,248,286.47
impairment
Other non-operating revenues and expenses except the above items 1,209,871.06
Less: Affected amount of income tax 16,069,241.63
Affected amount of minority shareholders’ equity (after tax) 2,941,538.51
Total 87,704,297.18
Other items of gains and losses meeting the definition of non-recurring gains and losses: □Applicable √ Not applicable
The Company does not have other items of gains and losses meeting the definition of non-recurring gains and losses.
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Explanation on the circumstance where items of the non-recurring gains and losses listed in the Explanatory Announcement No. 1
on Information Disclosure for Companies Offering Their Securities to the Public — Non-recurring Gains and Losses (referred to
as “Announcement No.1”) are defined as recurring gains and losses
□Applicable √ Not applicable
There is no circumstance where the items of non-recurring gains and losses enumerated in accordance with the Announcement
No.1 are defined as recurring gains and losses.
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Chapter 3 Management Discussion and Analysis
I. Main Businesses during the Reporting Period
In the first half of 2022, the kitchen appliance industry as a whole was in sluggish growth in the face of major
unfavorable factors such as the recurrence of the COVID-19 epidemic, the sharp downturn in the real estate industry and
the rise in comprehensive costs of the Company, but the industry concentration continued to rise. In terms of the retail
channel, as shown in AVC monthly data report based on offline retail monitoring (“AVC Offline Report”), the retail sales
of the main categories of kitchen appliances, i.e., range hoods and gas stoves, fell by 23.5% and 18.5% respectively,
compared to that of the last year. In terms of the e-commerce channel, as shown in AVC monthly data report based on
online retail monitoring (“AVC Online Report”), the year-on-year (YoY) growth of the retail sales of the kitchen
appliances package registered 1.1%. In terms of the engineering channel, as shown in the AVC Real Estate Big Data
(“AVC Real Estate Report”), the rate of equipping standard range hoods and stoves remained more than 95%, the rate of
equipping disinfection cabinets continued to decline as it lost part of the market as a result of the disinfection function of
dishwashers, and the rate of equipping dishwashers and combi-steam ovens as new categories of kitchen appliances
gradually increased; the rate of equipping dishwashers from January to May 2022 was 26.5%, a YoY growth of 9.6%, and
that of combi-steam ovens was 2.8%, a YoY growth of 0.7%. As the epidemic has been basically under control since June
and a series of national incentive policies have been released, coupled with kitchen appliances having the attribute of
durable household appliances, the demand for kitchen appliances will remain despite of the epidemic disturbance, which is
expected to be unleashed gradually in the second half of the year.
As a leading company in the industry, the Company has tightly focused on the annual management concept of “Ride
the momentum, build dreams, and lead the development of the industry”, and has taken innovation in the kitchen appliance
category as the driving force, realizing a significant increase in market share in all categories. According to the AVC
Offline Report, the retail sales and retail market share of the Robam range hoods were 31.7% and 25.6%, respectively, a
YoY growth of 1.1% and 1.5%. According to the AVC Online Report, the retail sales and retail market share of the
Robam kitchen appliances package were 31.7% and 25.1%, respectively, a YoY growth of 3.1% and 3.8%. The retail sales
and retail market share of the built-in dishwashers increased significantly to 12.8% from 6.8% in the same period last year.
In the face of many unfavorable factors in the first half of the year, the Company achieved operating income of RMB
4.444 billion, a YoY growth of 2.73%, which was significantly higher than the industry average level.
As of June 30, 2022, according to AVC Offline Report, the market shares and market rankings of the Company’s main
product categories in terms of offline retail sales are shown in the following:
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Table:
Range hoods Gas stove Disinfection Built-in Built-in Built-in Built-in
cabinet combi- electric electric dishwasher
steam oven steam oven oven
31.7% 30.1% 22.5% 35.7% 23.9% 36.6% 17.4%
1 1 2 1 2 2 2
As of June 30, 2022, according to AVC Online Report, the market shares and market rankings of the Company’s
main product categories in terms of online retail sales are shown in the following:
Table:
Kitchen 2-piece package Range hoods Gas stove Built-in Built-in Built-in
appliance of range hood combi- electric dishwasher
package and stove steam oven steam oven
31.7% 33.9% 15.0% 8.8% 16.0% 27.3% 12.8%
1 1 1 5 3 1 2
As of June 30, 2022, according to AVC Real Estate Report, the market share of Robam range hoods in the fine
decoration channel was 29.2%, ranking No.2 in the industry. In the first half of 2022, in terms of the technology, the
Company insisted on the product innovation, combining science and technology with kitchen appliances and continuing
to promote cooking reform from product hardware innovation to the construction of digital cooking ecosystem. In terms
of the hardware, kitchen appliances technology was iteratively upgraded to lead the development of the industry in an all-
round way. “Ultra-slim technology” opens up a new form in the field of range hood and achieves a technological
breakthrough in ultra-slim air duct and super wind pressure; “hybrid technology” breaks the boundary of steaming and
baking and realizes the combination of multi-stage cooking steps of steaming, baking and frying; “Guangyan technology”
breaks down functional barriers and realizes the function integration in terms of “washing, disinfection, drying and
storage” of dishwashers; “integrated technology” takes the integrated stove as the starting point and it marks the first step
into the field of integrated kitchen; “cold cooking technology” launches cold cooking refrigerator and achieves the full
layout of kitchen appliances. In terms of the software, Robam established the world’s largest research library of Chinese
AI cooking curves to restore the taste of Chinese kitchens with technology and enhance the soft power of kitchen
appliances. In the first half year of 2022, the Company applied for 754 patents, including 223 invention patents, and
participated in the formulation of 12 standards, 5 of which were led by the Company. As of June 30, 2022, a total of
2,658 patents were granted, including 78 invention patents; the Company participated in the formulation of 108
international, national, industry and group standards, 28 of which were led by the Company. The technological
innovation capability has been continuously recognized by the industry, and the project of “Research and Development
and industrialization of the Technology Reducing the Noise of and Improving the Sound Quality of Range Hood” won
the first prize of Science and Technology Progress Award of China National Light Industry Council in 2021.
In the first half of 2022, in terms of the marketing, the Company continued to strengthen the high-end brand
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
positioning, superimpose the advantages of new and old product categories of kitchen appliances and stimulate the vitality
of multiple channels, so as to provide comprehensive and customer-centered solutions for kitchen appliances. For the retail
channel, with high-end positioning as the advantage, products as the carrier and service as the guarantee, the Company
promoted the marketing digitalization, accelerated the establishment of channels in lower-tier cities, and optimized channel
efficiency. For the e-commerce channel, relying on the new and old media matrix and mutual empowerment between high-
quality products and flow resources, the Company strengthened the brand position and improved channel efficiency. For the
innovation, the Company accurately positioned and deeply sought the existing market resources, and cooperated with
leading whole house customization companies and home decoration companies, to obtain the front-end flow and enrich the
consumption scenarios. For the engineering channel, the Company improved the awareness of risk control, optimized the
customer structure, and made use of the advantages of old product categories to drive the continuous improvement of the
permeability of new product categories, so as to provide kitchen appliance product package solutions for fine decoration
houses. For the overseas channel, the Company steadily promoted the global layout and brand internationalization.
In the first half of 2022, in terms of the production, the Company focused on the theme of “strengthening organization,
seeking development and promoting reform”, and comprehensively implemented the three core strategies of “precise
delivery, high-quality manufacturing and data-driven approach”, to constantly develop into one of the most competitive
benchmarking enterprises in China's manufacturing industry. Through the digital construction of the whole industrial chain,
the Company achieved scientific and accurate product demand forecast, and successfully completed the reform of direct
distribution and delivery in more than 10 regions across the country, with the order satisfaction of users continuously
improved. Meanwhile, the Company constantly improved the supply chain management system, implemented meticulous
production management, and applied innovative processes and technologies, so as to ensure the high-quality delivery of new
and old product categories of kitchen appliances. As the first intelligent manufacturing base in China's kitchen appliance
industry, the Robam digital intelligent manufacturing base takes the lead in the overall digitalization upgrading of the
industry, which has been selected as one of the first batch of “future factories” in Zhejiang Province. In addition, the
Maoshan Intelligent Manufacturing Park Project has been gradually put into use, and the upgrading of intelligent
manufacturing will further improve production efficiency and lay a solid foundation for the long-term development of the
Company.
In the first half of 2022, in terms of the brand, the Company insisted on the brand marketing theme of “holding on to
high-end brand, building consumer-based cooking brand equity, and competing for users' likes” to develop into the No. 1
brand in the market of Chinese high-end kitchen appliances. Themed by “Higher Starting Point of High-tech Kitchen”, the
2022 New Chinese Kitchen - New Product Launch Conference was held, formally releasing a number of new products
such as Robam ultra-slim near-suction range hood Huancai series, large-capacity combi-steam oven, Guangyan dishwasher
series, new generation of high-performance integrated stove, Creator series and refrigerator. These new products, covering
all aspects of cooking, are designed to enhance the starting point of the high-tech kitchen. The Company hold a series of
activities, such as the National Tide Family Banquet, the First China Cooking Competition, the Second China Dishwasher
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Festival; meanwhile, the brand was exposed in the “Focus Report”, showed as the title sponsor of the show “It Sounds
Incredible 2”, and carried out cross-border cooperation with the variety show "Treasured Voice 3", to actively broaden the
target audience range and set up a new brand image. In addition, as an official exclusive supplier of household kitchen
appliances for the 2022 Hangzhou Asian Games, the Company helped to spread Chinese culinary culture and contributed to
the construction of the Asian Games city.
In the first half of 2022, MingQi promoted the integration of multiple channels and transformed into a one-stop,
complete kitchen appliance provider. Kinde launched the dual chamber integrated stove series and integrated sink series,
which are professional products specially designed for customers. Besides, the industrialization project of the intelligent
integrated kitchen ecology, upon completion, will further improve the R&D and production capabilities of integrated
kitchen appliances.
In the first half of 2022, the Company continued to be recognized by the capital market in terms of corporate
governance, internal management, shareholder return, etc. The Company has become the Council Member of China
Association for Public Companies. Besides, it was awarded class A (excellent) in the 2021 Information Disclosure
Assessment on Companies Listed on the Shenzhen Stock Exchange, and has won this award for nine consecutive years. In
the field of investor relations, at the event of the 13th Tianma Award for Investor Relations of Chinese Listed Companies
sponsored by Securities Times, the Company won the “Best Investor Relations Award of Chinese Listed Companies” and
the “Best Board of Directors Award for Investor Relations of Chinese Listed Companies”, and the Secretary of the Board
of Directors of the Company was awarded the “Best Board Secretary for Investor Relations of Listed Companies on the
Mainboard”. Besides, the Company also won the honor of “Top 100 Listed Companies on China's Mainboard” at the event
of the 15th Value Appraisal of Chinese Listed Companies.
In order to practice common prosperity and build a regular incentive mechanism, the Company launched the 2022
Stock Option Incentive Plan to provide stock option incentive for the Company's middle-level personnel in core business
and technical experts, so as to consolidate the Company's long-term development foundation. The Company has been
adhering to standard operation, and will continue to make efforts in the kitchen field and facilitate value investment to
promote its high-quality development.
II. Analysis of Core Competitiveness
There is NO material change in the Company’s core competitiveness during the reporting period. The Company’s
core competitiveness is mainly reflected in its high-end brand positioning, R&D capability for continuous innovation,
comprehensive and efficient operation capability, as shown in the Annual Report 2021.
III. Analysis of Main Business
Overview
Please refer to the relevant content of “I. Main Businesses during the Reporting Period”.
Year-on-year changes in key financial data
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
In RMB
The reporting period The same period last YOY change Reason for change
year
Operating income 4,444,310,099.69 4,326,082,031.62 2.73%
Operating costs 2,240,019,882.53 1,993,891,622.30 12.34%
Sale expenses 1,184,704,589.52 1,163,782,611.88 1.80%
Administrative expenses 183,583,864.57 149,993,109.17 22.39%
Financial expense -62,275,458.91 -47,926,579.43 29.94%
Income tax expense 131,172,418.86 143,489,604.07 -8.58%
R&D input 169,368,645.53 143,433,206.12 18.08%
It is mainly due to the
322,855,122.33 730,222,059.09 -55.79% procurement of raw
Net cash flow from materials and the
operating activities increase in various
expenses.
-275,734,087.51 214,520,601.79 -228.54% It is mainly due to the
decrease in the amount
of maturing bank
Net cash flow from financial products and
investing activities the increase in the
Company's
infrastructure
expenditure.
It is mainly due to the
-443,071,536.06 -689,078,739.78 -35.70%
Net cash flow from share repurchase in
financing activities the previous period.
It is mainly due to the
-392,838,975.59 255,399,364.87 -253.81% increase in the
procurement of raw
materials and various
Net increase in cash expenses, as well as
and cash equivalents the increase in the
Company's
infrastructure
expenditure.
No major changes on profit composition or profit resources occurred in reporting period
Composition of operating income
In RMB
The reporting period The same period last year
% of % of YOY change
Amount operating Amount operating
income income
Total operating income 4,444,310,099.69 100% 4,326,082,031.62 100% 2.73%
By industry
Kitchen and bathroom 4,317,490,105.88 97.15% 4,225,828,188.22 97.68% 2.17%
appliances income 126,819,993.81 2.85% 100,253,843.40 2.32% 26.50%
By product category
Category 1
Incl: Range hood 2,074,153,523.02 46.68% 2,091,007,767.04 48.35% -0.81%
Gas stove 1,057,307,687.10 23.79% 1,045,144,595.58 24.16% 1.16%
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Disinfection 197,092,502.71 4.43% 239,178,201.99 5.53% -17.60%
Category 2
Incl: All-purpose 358,429,402.29 8.06% 262,228,450.48 6.06% 36.69%
ovenSteam oven 47,657,561.06 1.07% 80,562,429.90 1.86% -40.84%
Baking oven 39,476,578.27 0.89% 67,544,092.31 1.56% -41.55%
Category 3
Incl: Dishwasher 246,993,832.57 5.56% 170,976,797.67 3.95% 44.46%
Water purifier 27,217,675.16 0.61% 24,371,501.10 0.56% 11.68%
Water heater 85,479,990.00 1.92% 48,894,607.25 1.13% 74.82%
Integrated stove 145,144,422.16 3.27% 143,366,801.65 3.31% 1.24%
Other small appliances 38,536,931.54 0.87% 52,552,943.25 1.21% -26.67%
Other operating income 126,819,993.81 2.85% 100,253,843.40 2.32% 26.50%
By region
East China-Main 2,188,169,639.99 49.24% 2,054,958,956.16 47.50% 6.48%
Products 126,819,993.81 2.85% 100,253,843.40 2.32% 26.50%
South China 540,221,730.07 12.16% 533,053,014.50 12.32% 1.34%
Central China 400,497,450.21 9.01% 390,795,590.34 9.03% 2.48%
North China 454,151,283.49 10.22% 457,558,221.06 10.58% -0.74%
Northeast China 195,279,872.46 4.39% 229,898,842.06 5.31% -15.06%
Northwest China 221,418,193.90 4.98% 218,086,613.97 5.04% 1.53%
Southwest China 290,681,625.76 6.54% 317,765,047.05 7.35% -8.52%
Overseas 27,070,310.00 0.61% 23,711,903.08 0.55% 14.16%
Industries, products and regions accounting for more than 10% of the Company’s operating income or profit
√Applicable □Not applicable
In RMB
YoY change in
Gross YoY change in YoY change in the
Operating income Operating costs operating
margin operating costs gross margin
income
By industry
Kitchen and 4,317,490,105.88 2,205,131,842.03 48.93% 2.17% 18.47% -7.03%
bathroom
appliances category
Range hoods 2,074,153,523.02 1,024,406,260.72 50.61% -0.81% 17.20% -7.59%
Gas stove 1,057,307,687.10 482,143,255.55 54.40% 1.16% 17.22% -6.24%
By region
East China 2,188,169,639.99 1,080,516,672.65 50.62% 6.48% 25.40% -7.45%
South China 540,221,730.07 293,169,584.70 45.73% 1.34% 16.80% -7.18%
North China 454,151,283.49 218,350,221.53 51.92% -0.74% 14.77% -6.50%
Main business data of the Company in the recent reporting period according to adjusted statistical caliber at the end of the reporting
period is applied in case that the statistical caliber of such data is adjusted during the reporting period
□Applicable √ Not applicable
Description of reasons for relevant data increasing/decreasing by more than 30% year-on-year
□Applicable √ Not applicable
IV. Analysis of Non-core Business
□Applicable √ Not applicable
V. Analysis of Assets and Liabilities
1. Significant changes in assets composition
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In RMB
End of the reporting period End of last year
Note on
% of total % of total Change in
Amount Amount significan
assets assets percentage
t changes
Cash and cash 3,400,788,038.91 24.32% 3,802,201,346.55 27.34% -3.02%
equivalents
Accounts 1,640,360,454.56 11.73% 1,597,692,860.90 11.49% 0.24%
receivable
Inventory 1,825,088,381.03 13.05% 1,772,231,632.25 12.74% 0.31%
Investment real 4,286,705.36 0.03% 11,085,896.07 0.08% -0.05%
estate
Long-term equity 6,597,242.59 0.05% 5,405,129.91 0.04% 0.01%
investment
Fixed assets 1,168,388,890.69 8.36% 1,179,306,020.01 8.48% -0.12%
Construction in 699,981,173.60 5.01% 454,643,364.82 3.27% 1.74%
process
Right-of-use 22,021,250.61 0.16% 29,902,954.22 0.22% -0.06%
assets
Short-term 39,657,061.74 0.28% 29,616,655.41 0.21% 0.07%
borrowings
Contract 979,436,556.29 7.00% 1,026,782,402.35 7.38% -0.38%
liabilities
Lease liabilities 18,575,629.84 0.13% 26,177,034.29 0.19% -0.06%
2. Major overseas assets
□Applicable √ Not applicable
3. Assets and liabilities measured at fair value
□Applicable √ Not applicable
4. Restricted asset rights by the end of the reporting period
Restricted cash and cash equivalents
In RMB
Item Ending balance Beginning balance
Letter of guarantee and margin for 73,638,194.15 82,212,526.20
acceptance of bill
Total 73,638,194.15 82,212,526.20
VI. Analysis of Investment
1. Overview
√ Applicable Not applicable
Hangzhou Jinhe Electric Appliances Co., Ltd., a newly established wholly-owned subsidiary, with a registered capital of RMB 10 million,
will complete the industrial and commercial registration procedures on June 22, 2022.
2. Major equity investments obtained during the reporting period
□Applicable √ Not applicable
3. Major ongoing non-equity investments during the reporting period
□Applicable √ Not applicable
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
4. Financial asset investment
(1) Securities investment
□Applicable √ Not applicable
The Company had no securities investment during the reporting period.
(2) Derivative investment
□Applicable √ Not applicable
The Company had no derivatives investment during the reporting period.
5. Use of the raised funds
□Applicable √ Not applicable
The Company did not use the raised funds during the reporting period.
VII. Sale of Major Assets and Equities
1. Sale of major assets
□Applicable √ Not applicable
The Company did not sell major assets during the reporting period.
2. Sale of major equities
□Applicable √ Not applicable
VIII. Analysis of Main Holding and Joint-stock Companies
√ Applicable Not applicable
In RMB
Com
Company Registered Total assets Net assets Operating income Operating profit Net profit
name pany Main business
capital
type
Shanghai
Subs Sales of
Robam 5000000 103,023,097.72 22,524,912.62 141,581,849.64 7,070,742.40 5,548,189.87
idiar kitchen
Appliances
y appliance
Sales Co.,
s
Ltd.
Beijing
Subs Sales of
Robam 5000000 83,825,514.16 48,634,155.24 300,321,514.13 -1,449,802.68 -2,119,608.45
idiar kitchen
Appliances
y appliance
Sales Co.,
s
Ltd.
Hangzhou Subs Sales of
50000000 191,246,312.60 70,678,739.83 151,908,412.43 -72,923.94 235,001.79
MingQi idiar kitchen
Electric Co., y appliance
Ltd. s
Shengzhou
Subs Production
Kinde 32653061 502,228,995.00 283,501,335.13 77,502,270.79 -466,108.04 -2,848,019.82
idiar and sales of
Intelligent
y kitchen
Kitchen
appliances
Appliances
Co., Ltd.
IX. Structured Entities Controlled by the Company
□Applicable √ Not applicable
X. Risks faced and countermeasures taken by the Company
(1) Risk of fluctuations in the real estate market
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
The Company has been long engaged in the kitchen business, offering kitchen appliances such as range hoods, gas stoves, combi-
steam ovens, dishwashers and integrated stoves. Its demand is closely related to
the kitchen decoration, with certain "decoration" and "furniture" attributes. At present, the main market demand for kitchen appliances is
mainly from the new house buyers, the proportion of renewal demand is gradually increasing, and the demand for products is greatly
affected by the fluctuation of the real estate market. The Company has certain anti-fluctuation ability by virtue of its market leadership,
although fluctuations in the real estate market will still have an impact on the Company’s operating results. In addition, some private
real estate enterprises defaulted on commercial paper debt due to liquidity problems, which may lead to the failure to recover the
Company's engineering business receivables.
(2) Risk of price fluctuations of raw materials
The main raw materials of the Company’s equipment are stainless steel, cold-rolled sheet, copper and glass, etc., whose price
fluctuations will directly affect the cost of the Company’s products and in turn have an impact on its profitability.
(3) Risk of intensified market competition
In recent years, due to the tightening of the overall macro environment of the kitchen appliance industry, the continuous
improvement of industry concentration and the entry of and increased investment of comprehensive brands and Internet brands in the
kitchen appliance market, the market competition in the kitchen appliances industry has become increasingly fierce, and the
intensification of market competition will have a certain impact on the Company’s operating results.
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Chapter 4 Corporate Governance
I. Annual General Meeting of Shareholders and Extraordinary General Meeting of
Shareholders during the Reporting Period
1. Shareholders’ meeting during the reporting period
Propo
rtion
of
Type of atten Date of
Session of meeting Date of meeting Resolutions
meeting ding disclosure
invest
ors
Announcement of Resolutions of the
The first extraordinary general Extraord April 21, 2022 April 22, 2022
62.89 First Extraordinary
meeting of shareholders in 2022 inary %
general General Meeting of
meeting Shareholders of Robam
of Appliances in 2022
sharehol (Announcement No. 2022-027)
ders
Annual June 6, 2022 June 7, 2022 Announcement of Resolutions of
2021 Annual General Meeting 63.52
of Shareholders General the 2021 Annual General
% Meeting of Shareholders of
Meeting
of Robam Appliances
Sharehol (Announcement No. 2022-038)
ders
2. Preferred shareholders with voting rights recovered requested to convene an extraordinary general
meeting of shareholders
□Applicable √ Not applicable
II. Changes in Directors, Supervisors and Senior Management
√Applicable □Not applicable
Name Position held Type Date Reasons
Zhou Haixin Deputy General Manager Appointment May 11, 2022 Company appointment
III. Profit Distribution and Conversion of Capital Reserve into Capital Stock during
the Reporting Period
□Applicable √ Not applicable
The Company has no plans of distributing cash dividends or bonus shares, or converting capital reserve into capital stock for the
first half of 2022.
IV. Implementation of the Equity Incentive Plan, Employee Stock Ownership Plan
or other Employee Incentives
√Applicable □Not applicable
1. Equity incentive
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
2021 Stock Option Incentive Plan:
1. On April 19, 2022, the Tenth Meeting of the Fifth Session of the Board of Directors and the Tenth Meeting of the Fifth
Session of the Board of Supervisors were held, deliberating and adopting the Proposal on Cancellation of Partial Stock Options in
the 2021 Stock Option Incentive Plan and the Proposal on Cancellation of Stock Options of the 2021 Stock Option Incentive Plan
in the Case Where the Vesting Conditions Are Not Met in the First Exercise Period.
According to the relevant laws and regulations and the provisions of the Company's 2021 Stock Option Incentive Plan
(Draft), the Company would cancel a total of 80,000 stock options that have been granted but not yet exercised by the four
incentive targets who have left their jobs and thus no longer meet the incentive conditions; the Company would cancel the 1.184
million stock options held by the incentive targets that have been granted but not qualified for exercise in the first exercise period
of 2021 Stock Option Incentive Plan because the vesting conditions are not met.
2. On April 26, 2022, it was examined and confirmed by Shenzhen Branch of China Securities Depository and Clearing Co.,
Ltd., that the cancellation of the above 1.264 million stock options had been completed. The Company cancelled a total of 1.264
million stock options mentioned above, accounting for 0.13% of the Company's current total capital stock. The cancellation of
stock options conforms to the relevant laws and regulations, the Articles of Association and the 2021 Stock Option Incentive Plan
(Draft) and other relevant provisions. The cancelled stock options have not been exercised yet, and it will not affect the Company's
capital stock after cancellation, with the stock structure unchanged.
2022 Stock Option Incentive Plan:
1. On March 31, 2022, the Company held the Ninth Meeting of the Fifth Session of the Board of Directors, during which the
Proposal on 2022 Stock Option Incentive Plan (Draft) of the Company and Its Summary and other related proposals were
deliberated and approved, and the independent directors expressed their independent opinions on and approved the matters related
to the Company’s stock option incentive plan. The Ninth Meeting of the Fifth Session of the Board of Supervisors of the Company
deliberated and approved the above-mentioned proposal and expressed its concurring opinion. The Company disclosed the above
matters on April 1, 2022.
2. From April 1 to April 10, 2022, the Company internally disclosed the names and titles of the incentive targets of the stock
option incentive plan. On April 13, 2022, the Company’s Board of Supervisors published the Review Opinions of the Board of
Supervisors on the List of Incentive Targets of the 2022 Stock Option Incentive Plan and Explanation on the Publicity. On the same
day, the Company disclosed the Self-inspection Report on the Purchase and Sale of the Company’s Shares by Insiders and
Incentive Targets of the 2022 Stock Option Incentive Plan.
3. On April 21, 2022, the Company held the first extraordinary general meeting of shareholders in 2022, and deliberated and
adopted the Proposal on 2022 Stock Option Incentive Plan (Draft) of the Company and Its Summary and other related proposals.
The plan was approved by the first extraordinary general meeting of shareholders in 2022, and the Board of Directors was
authorized to determine the stock option grant date; the stock option will be granted to the incentive targets and all matters relevant
to the grant of stock option shall be handled when they are eligible.
4. On May 10, 2022, the 11th Meeting of the Fifth Session of the Board of Directors and the 11th Meeting of the Fifth Session
of the Board of Supervisors of the Company deliberated and approved the Proposal on the Granting Stock Options to Incentive
Targets. The Board of Supervisors verified the list of incentive targets again and expressed its agreement, and the independent
directors of the Company expressed their independent agreement on it.
5. On May 26, 2022, the Company completed the registration of the grant of the options. As the departed employees did not
have the qualification of incentive targets, the number of incentive targets actually granted under this Stock Option Incentive Plan
was adjusted from 285 to 282, and the total number of stock options actually granted was adjusted from 4.81 million to 4.78
million, accounting for 0.50% of the current total capital stock of the Company.
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
2. Implementation of Employee Stock Ownership Plan
□Applicable √ Not applicable
3. Other employee incentive measures
□Applicable √ Not applicable
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Chapter 5 Environmental and Social Responsibilities
I. Major Environmental Issues
Whether the listed company and its subsidiaries are the key pollution-discharging units announced by the environmental
protection authorities.
□Yes √ No
Administrative penalties imposed on the Company for environmental issues during the reporting period
Impact on the
Name of the The Company's
production and
Company or its Reasons for penalties Violations Penalties rectification
operation of the
subsidiary measures
listed company
None None None None None None
Other environmental information disclosed with reference to key emission units: None
Measures taken to reduce the Company's carbon emissions during the reporting period and their effects
□Applicable √ Not applicable
Reasons for not disclosing other environmental information: None.
II. Social Responsibility
The Company regularly publishes the CSR Report or the ESG Report every year. For details, please refer to the Robam
Appliances 2021 ESG Report disclosed on www.cninfo.com.cn.
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Chapter 6 Significant Matters
I. Commitments made by the Company’s actual controllers, shareholders, affiliates, purchasers
and the Company itself and other relevant parties already fulfilled during the reporting period
and not yet fulfilled at the end of the reporting period
□Applicable √ Not applicable
There were no commitments made by the Company’s actual controllers, shareholders, affiliates, purchasers and the Company itself and
other relevant parties that was already fulfilled during the reporting period and was not yet fulfilled at the end of the reporting period
II. Non-operating Occupation of Funds of the Listed Company by the Controlling Shareholder
and Other Affiliated Parties
□Applicable √Not applicable
There was no non-operating occupation of funds of the listed company by the controlling shareholder and other affiliates during the
reporting period.
III. Illegal External Guarantee
□Applicable √Not applicable
There was no illegal external guarantee during the reporting period.
IV. Appointment and Dismissal of Accounting Firm
Whether the semi-annual financial report has been audited
□Yes √No
The semi-annual financial report of the Company was not audited.
V. Statements of the Board of Directors and the Board of Supervisors on the “Non-standard
Audit Report” Issued by the Accounting Firm for the Reporting Period
□Applicable √Not applicable
VI. Statements of the Board of Directors on the “Non-standard Audit Report” for the Last
Year
□Applicable √Not applicable
VII. Matters Related to Bankruptcy Reorganization
□Applicable √Not applicable
The Company did not have any matters related to bankruptcy reorganization during the reporting period.
VIII. Litigation Matters
Material litigation and arbitration
□Applicable √Not applicable
The Company had no major litigation and arbitration during the reporting period.
Other litigation matters
□Applicable √Not applicable
IX. Punishment and Rectification
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
□Applicable √Not applicable
X. Integrity Conditions of the Company and its Controlling Shareholders
□Applicable √Not applicable
XI. Major Connected Transactions
1. Connected transactions concerning daily operations
□Applicable √Not applicable
The Company had no connected transactions concerning daily operations during the reporting period.
2. Connected transactions related to the acquisition or sales of assets or equity
□Applicable √Not applicable
The Company had no connected transactions related to the acquisition or sales of assets or equity during the reporting period.
3. Connected transactions related to joint outward investment
□Applicable √Not applicable
The Company had no connected transactions related to joint outward investment during the reporting period.
4. Connected transactions on credit and debt
□Applicable √Not applicable
The Company had no connected transactions on credit and debt during the reporting period.
5. Transactions with connected finance companies
□Applicable √Not applicable
There were no deposits, loans, credits or other financial operations between the Company and connected finance companies and
affiliates.
6. Transactions between the finance companies controlled by the Company and the affiliates
□Applicable √Not applicable
There were no deposits, loans, credits or other financial operations between the finance companies controlled by the Company and
the affiliates.
7. Other major connected transactions
□Applicable √Not applicable
There were no other major connected transactions during the reporting period.
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
XII. Major Contracts and Their Performance
1. Entrustment, contracting and leasing
(1) Entrustment
□Applicable √Not applicable
The Company had no entrustment during the reporting period.
(2) Contracting
□Applicable √Not applicable
The Company had no contracting during the reporting period.
(3) Leasing
□Applicable √Not applicable
The Company had no leasing during the reporting period.
2. Material guarantee
□Applicable √Not applicable
The Company had no material guarantee during the reporting period.
3. Financial management entrusting
√Applicable □Not applicable
Unit: RMB 10,000
Impairment amount
Sources of
Incurred amount of accrued of overdue
financial Amount overdue
Specific type financial management Unexpired balance but not recovered
management but not recovered
entrusting financial
entrusting
management
Bank financial Own funds 92,350 288,476 0 0
products Total 92,350 288,476 0 0
The specific situation of high-risk entrusted financial management with large single-item amount or low safety, poor liquidity and no
break-even
□Applicable √Not applicable
Entrusted financial management is expected to be unable to recover the principal or where there are other circumstances that may
result in impairment
□Applicable √Not applicable
4. Other material contracts
□Applicable √Not applicable
The Company had no other material contracts during the reporting period.
XIII. Explanation of Other Significant Matters
□Applicable √Not applicable
The Company had no other significant matters that need to be explained during the reporting period.
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
XIV. Significant Matters of Subsidiaries of the Company
□Applicable √Not applicable
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Chapter 7 Changes in Shares and Shareholders
I. Changes in Shares
1. Changes in shares
Unit: share
Before change Change (+. -) After change
Shares
Bon conver
Percentage Issue us ted Percentag
Quantity of new Others Subtotal Quantity
(%) shar from e (%)
shares capital
es
reserve
I. Shares subject to 14,123,269 1.49% -2,070,000 -2,070,000 12,053,269 1.27%
sales restrictions
1. Shares held by the
state
2. Shares held by the
state-owned legal
persons
3. Shares held by 14,123,269 1.49% -2,070,000 -2,070,000 12,053,269 1.27%
other domestic
investors
Including:
shares held by domestic
legal persons
Including: shares 14,123,269 1.49% -2,070,000 -2,070,000 12,053,269 1.27%
held by domestic
natural persons
4. Shares held by
overseas investors
Including:
shares held by overseas
legal persons
Shares held by
overseas natural
persons
II. Shares without sales 934,900,781 98.51% 2,070,000 2,070,000 936,970,781 98.73%
restrictions
1. RMB ordinary 934,900,781 98.51% 2,070,000 2,070,000 936,970,781 98.73%
shares
2. Foreign shares
listed in China
3. Foreign shares
listed abroad
4. Others
100.00
III. Total shares 949,024,050 100.00% 0 0 949,024,050
%
Reason for share changes
√ Applicable Not applicable
The directors, supervisors and senior management of the Company shall unlock 25% of the Company's shares registered in their names
on the last trading day of the previous year.
2. Changes in restricted shares
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
√Applicable □Not applicable
Number of
Number of
Number of shares whose Number of
restricted
restricted sales restricted
Shareholder shares The reasons for
shares at the restrictions shares at the Date of lifting sales restrictions
name increased in sales restrictions
beginning of have been lifted end of the
the current
the period in the current period
period
period
Zhao Jihong 1,267,549 316,875 950,674 Locked shares Unlock 25% of the Company's
of directors, shares registered in their names on
supervisors the last trading day of the previous
and senior year
management
Zhang 834,234 208,500 625,734 Locked shares Unlock 25% of the Company's
Songnian of directors, shares registered in their names on
supervisors the last trading day of the previous
and senior year
management
Zhang 834,236 208,500 625,736 Locked shares Unlock 25% of the Company's
Linyong of directors, shares registered in their names on
supervisors the last trading day of the previous
and senior year
management
Zhang Guofu 308,962 0 308,962 Locked shares Unlock 25% of the Company's
of directors, shares registered in their names on
supervisors the last trading day of the previous
and senior year
management
Xia Zhiming 308,962 0 308,962 Locked shares Unlock 25% of the Company's
of directors, shares registered in their names on
supervisors the last trading day of the previous
and senior year
management
Wang Gang 432,562 0 432,562 Locked shares Unlock 25% of the Company's
of directors, shares registered in their names on
supervisors the last trading day of the previous
and senior year
management
Tang 834,234 208,500 625,734 Locked shares Unlock 25% of the Company's
Genquan of directors, shares registered in their names on
supervisors the last trading day of the previous
and senior year
management
Shen 1,143,198 285,750 857,448 Locked shares Unlock 25% of the Company's
Guoliang of directors, shares registered in their names on
supervisors the last trading day of the previous
and senior year
management
Ren 1,267,546 316,875 950,671 Locked shares Unlock 25% of the Company's
Luozhong of directors, shares registered in their names on
supervisors the last trading day of the previous
and senior year
management
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Ren Jianhua 4,442,362 0 4,442,362 Locked shares Unlock 25% of the Company's
of directors, shares registered in their names on
supervisors the last trading day of the previous
and senior year
management
Ren Fujia 2,100,056 525,000 1,575,056 Locked shares Unlock 25% of the Company's
of directors, shares registered in their names on
supervisors the last trading day of the previous
and senior year
management
He Yadong 308,962 0 308,962 Locked shares Unlock 25% of the Company's
of directors, shares registered in their names on
supervisors the last trading day of the previous
and senior year
management
Shen 40,406 0 40,406 Locked shares Unlock 25% of the Company's
Yueming of directors, shares registered in their names on
supervisors the last trading day of the previous
and senior year
management
Total 14,123,269 2,070,000 0 12,053,269 -- --
II. Securities Issuance and Listing
□Applicable √Not applicable
III. Number of Shareholders of the Company and Their Shareholdings
Unit: share
Total number of preferred shareholders
Total number of common shareholders 52,457 0
with the voting rights recovered at the
at the end of the reporting period
end of reporting period
Shareholdings of common shareholders holding more than 5% of the Company’s shares or top 10 common shareholders
Pledged, marked or frozen
Number of Number shares
common of
Number of
shares held Change during shares shares without
Name of shareholder Nature of Sharehold at the end subject
the reporting sales Status of
shareholder ing ratio of the to sales Quantity
period restrictions shares
reporting restricti
period ons
Domestic
Hangzhou Robam
non-state- 471,510,00
Industrial Group Co., 49.68% 0 471,510,000
owned legal 0
Ltd.
person
Hong Kong Securities
Overseas
Clearing Company 8.90% 84,446,021 -10,883,905 84,446,021
corporation
Limited
TEMASEK
Overseas
FULLERTON 1.65% 15,690,099 10,345,244 15,690,099
corporation
ALPHA PTE LTD
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Domestic
Shen Guoying natural 1.29% 12,240,000 0 12,240,000
Norges Bank- equity person
Overseas
0.81% 7,680,141 1,969,886 7,680,141
fund corporation
Domestic
Hangzhou Jinchuang non-state-
Investment Co., Ltd. owned legal 0.70% 6,640,085 0 6,640,085
person
Industrial Bank Co.,
Ltd. ICBC Credit
Suisse Culture &
Others
Sports Industry Stock 0.68% 6,436,819 -911,700 6,436,819
Securities Investment
Fund
Hangzhou Yinchuang Domestic non-
state-owned
Investment Co., Ltd. legal person 0.67% 6,318,000 0 6,318,000
Qian Hai Life Insurance
Co., Ltd.
Others
-participating 0.65% 6,199,919 6,199,919 6,199,919
insurance products
PICC Life Insurance
Company Limited-
Others
dividends-individual 0.64% 6,037,014 2,327,714 6,037,014
insurance dividends
Strategic investor or general legal None
person who becomes one of the top
10 common shareholders due to
rights issue
Description of the associated Mr. Ren Jianhua is the actual controller of the controlling shareholder of the Company-
relationship or consistent actions of Hangzhou Robam Industrial Group Co., Ltd., and the shareholder of the Company - Hangzhou
the above shareholders Jinchuang Investment Co., Ltd.; and the natural person shareholder, Shen Guoying, is his wife.
Therefore, there is a possibility that these shareholders will act in concert.
Statements of the above
shareholders on proxy/trustee voting None
rights and abstention from voting
rights
Special note on the existence of None
special repurchase accounts among
the top 10 shareholders
Shareholdings of the top 10 common shareholders not subject to sales restrictions
Type of shares
Number of shares without sales restrictions held at the end of the
Name of shareholder Type of
reporting period Quantity
shares
RMB
Hangzhou Robam Industrial Group ordinar
471,510,000 471,510,000
Co., Ltd. y
shares
Hong Kong Securities Clearing ordinar
84,446,021 84,446,021
Company Limited y
shares
RMB
TEMASEK FULLERTON ALPHA ordinar
15,690,099 15,690,099
PTE LTD y
shares
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
RMB
Shen Guoying 12,240,000 ordinar 12,240,000
y
shares
RMB
Norges Bank-equity fund 7,680,141 ordinar 7,680,141
y
shares
RMB
Hangzhou Jinchuang Investment Co., ordinar
6,640,085 6,640,085
Ltd. y
shares
RMB
Industrial Bank Co., Ltd. ICBC
Credit Suisse Culture & Sports ordinar
Industry Stock Securities Investment 6,436,819 y 6,436,819
Fund shares
Hangzhou Yinchuang Investment RMB
6,318,000 ordinar 6,318,000
Co., Ltd.
y
shares
RMB
Qian Hai Life Insurance Co., Ltd.
6,199,919 ordinar 6,199,919
-participating policy products y
shares
RMB
PICC Life Insurance Company
Limited ordinar
-dividends-individual insurance 6,037,014 y 6,037,014
dividends shares
Description on associated
relationship or concerted actions Mr. Ren Jianhua is the actual controller of the controlling shareholder of the Company-
among the top 10 common Hangzhou Robam Industrial Group Co., Ltd., and the shareholder of the Company -
shareholders not subject to sales Hangzhou Jinchuang Investment Co., Ltd.; and the natural person shareholder, Shen Guoying,
restrictions and between the top 10 is his wife. Therefore, there is a possibility that these shareholders will act in concert.
common shareholders not subject to
sales restrictions and the top 10
common shareholders
Description of the top 10 common
None
shareholders engaging in securities
margin trading
Did any of the top 10 common shareholders and the top 10 common shareholders not subject to sales restrictions of the Company have
any agreed repurchase trading during the reporting period?
□Yes √No
There was no agreed repurchase trading between the top 10 common shareholders and the top 10 common shareholders not subject to
sales restrictions of the Company during the reporting period.
IV. Changes in Shares Held by Directors, Supervisors, and Senior
Management
□Applicable √Not applicable
There was no change in the shareholdings of directors, supervisors, and senior management of the Company during the reporting
period. For details, please refer to the Annual Report 2021.
V. Changes in the Controlling Shareholder and the Actual Controller
Changes in the controlling shareholder during the reporting period
□Applicable √Not applicable
There was no change in the controlling shareholder of the Company during the reporting period.
Changes in the actual controller during the reporting period
□Applicable √Not applicable
There was no change in the actual controller of the Company during the reporting period.
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Chapter 8 Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares during the reporting period.
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Chapter 9 Bonds
□Applicable √Not applicable
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Chapter 10 Financial Report
I. Audit Report
Whether the semi-annual report has been audited
□Yes √No
The semi-annual financial report of the Company was not audited.
II. Financial Statements
The financial statement notes are represented in RMB.
1. Consolidated Balance Sheet
Prepared by: Hangzhou Robam Appliances
Co., Ltd. June 30, 2022
In RMB
Item June 30, 2022 January 1, 2022
Current assets:
Cash and cash equivalents 3,400,788,038.91 3,802,201,346.55
Deposit reservation for balance
Lendings to banks and other financial
institutions
Financial assets held for trading 2,884,760,000.00 2,872,312,500.00
Derivative financial assets
Notes receivable 1,308,046,816.29 1,330,193,894.82
Accounts receivable 1,640,360,454.56 1,597,692,860.90
Accounts receivable financing
Prepayments 186,696,023.47 131,162,030.95
Receivable premium
Reinsurance accounts receivable
Provision of cession receivable
Other receivables 105,383,151.12 73,487,381.46
Inc: Interests receivable
Dividends receivable
Redemptory monetary capital for sale
Inventory 1,825,088,381.03 1,772,231,632.25
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 105,891.12 4,110,429.16
Total current assets 11,351,228,756.50 11,583,392,076.09
Non-current assets:
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Loans and advances
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 6,597,242.59 5,405,129.91
Investment in other equity instruments 2,116,023.22 2,116,023.22
Other non-current financial assets
Investment real estate 4,286,705.36 11,085,896.07
Fixed assets 1,168,388,890.69 1,179,306,020.01
Construction in process 699,981,173.60 454,643,364.82
Biological assets for production
Oil & gas assets
Right-of-use assets 22,021,250.61 29,902,954.22
Intangible assets 225,772,221.34 229,391,803.26
Development expenditure
Goodwill 80,589,565.84 80,589,565.84
Long-term prepaid expenses 3,589,385.75 5,385,436.20
Deferred income tax assets 340,774,443.43 286,348,037.04
Other non-current assets 77,619,087.99 38,468,874.44
Total non-current assets 2,631,735,990.42 2,322,643,105.03
Total assets 13,982,964,746.92 13,906,035,181.12
Current liabilities:
Short-term borrowings 39,657,061.74 29,616,655.41
Borrowings from the central bank
Borrowings from banks and other
financial institutions
Financial liabilities held for trading
Derivative financial liabilities
Notes payables 809,469,587.67 962,665,463.99
Accounts payable 2,303,202,819.34 2,181,900,261.00
Advance receipts
Contract liabilities 979,436,556.29 1,026,782,402.35
Financial assets sold for repurchase
Deposits from customers and interbank
Receivings from vicariously traded
securities
Receivings from vicariously sold
securities
Payroll payable 53,282,842.44 165,177,425.08
Taxes payable 230,030,822.59 212,202,393.54
Other payables 269,409,072.30 267,781,215.06
Inc: Interests payable
Dividends payable
Fees and commissions payable
Dividends payable for reinsurance
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Liabilities held for sale
Non-current liabilities due within one 5,414,420.90 5,387,591.43
year
Other current liabilities 115,300,198.58 124,284,081.56
Total current liabilities 4,805,203,381.85 4,975,797,489.42
Non-current liabilities:
Reserves for insurance contracts
Long-term loans
Bonds payable
Inc: Preferred shares
Perpetual bonds
Lease liabilities 18,575,629.84 26,177,034.29
Long-term accounts payable
Long-term payroll payable
Estimated liabilities
Deferred income 124,643,232.96 131,747,378.42
Deferred income tax liabilities 8,061,237.74 6,254,762.76
Other non-current liabilities
Total non-current liabilities 151,280,100.54 164,179,175.47
Total liabilities 4,956,483,482.39 5,139,976,664.89
Owner’s equity:
Capital stock 949,024,050.00 949,024,050.00
Other equity instruments
Inc: Preferred shares
Perpetual bonds
Capital reserve 408,916,464.42 404,918,098.15
Less: Treasury share 199,995,742.59 199,995,742.59
Other comprehensive income -100,157,634.16 -100,157,634.16
Special reserves
Surplus reserves 474,516,412.50 474,516,412.50
General risk reserves
Undistributed profits 7,350,223,478.62 7,098,721,555.37
Total owners’ equity attributable to the 8,882,527,028.79 8,627,026,739.27
parent company
Minority interests 143,954,235.74 139,031,776.96
Total owner’s equity 9,026,481,264.53 8,766,058,516.23
Total liabilities and owner’s equity 13,982,964,746.92 13,906,035,181.12
Legal representative: Ren Jianhua Person in charge of accounting: Zhang Guofu Head of the accounting department: Zhang
Guofu
2. Balance Sheet of the Parent Company
In RMB
Item June 30, 2022 January 1, 2022
Current assets:
Cash and cash equivalents 3,213,633,336.04 3,554,239,202.02
Financial assets held for trading 2,850,000,000.00 2,800,000,000.00
Derivative financial assets
Notes receivable 1,308,046,816.29 1,327,893,894.82
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Accounts receivable 1,567,703,600.71 1,496,691,827.59
Accounts receivable financing
Prepayments 162,530,740.38 108,926,615.26
Other receivables 92,064,235.68 66,149,239.78
Inc: Interests receivable
Dividends receivable
Inventory 1,705,978,027.59 1,674,764,364.28
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets
Total current assets 10,899,956,756.69 11,028,665,143.75
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 239,273,010.65 242,037,500.08
Investment in other equity instruments 2,116,023.22 2,116,023.22
Other non-current financial assets
Investment real estate 4,549,733.16 11,361,192.77
Fixed assets 1,104,047,903.97 1,114,958,987.32
Construction in process 490,566,391.05 280,105,490.57
Biological assets for production
Oil & gas assets
Right-of-use assets
Intangible assets 151,047,407.97 152,123,403.04
Development expenditure
Goodwill
Long-term prepaid expenses 1,533,100.35 1,653,433.47
Deferred income tax assets 339,011,895.46 285,017,337.53
Other non-current assets 76,677,276.82 36,602,077.16
Total non-current assets 2,408,822,742.65 2,125,975,445.16
Total assets 13,308,779,499.34 13,154,640,588.91
Current liabilities:
Short-term borrowings 26,157,061.74 29,616,655.41
Financial liabilities held for trading
Derivative financial liabilities
Notes payables 734,514,108.17 869,702,988.97
Accounts payable 2,188,681,498.77 2,051,194,342.69
Advance receipts
Contract liabilities 896,481,698.25 923,802,307.69
Payroll payable 42,165,488.89 129,893,906.19
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Taxes payable 221,371,522.40 196,058,797.24
Other payables 247,212,708.19 240,983,242.45
Inc: Interests payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities 104,516,067.03 110,927,917.94
Total current liabilities 4,461,100,153.44 4,552,180,158.58
Non-current liabilities:
Long-term loans
Bonds payable
Inc: Preferred shares
Perpetual bonds
Lease liabilities
Long-term accounts payable
Long-term payroll payable
Estimated liabilities
Deferred income 95,786,247.96 102,890,393.42
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 95,786,247.96 102,890,393.42
Total liabilities 4,556,886,401.40 4,655,070,552.00
Owner’s equity:
Capital stock 949,024,050.00 949,024,050.00
Other equity instruments
Inc: Preferred shares
Perpetual bonds
Capital reserve 408,871,481.41 404,873,115.14
Less: Treasury share 199,995,742.59 199,995,742.59
Other comprehensive income -100,157,634.16 -100,157,634.16
Special reserves
Surplus reserves 474,516,412.50 474,516,412.50
Undistributed profits 7,219,634,530.78 6,971,309,836.02
Total owner’s equity 8,751,893,097.94 8,499,570,036.91
Total liabilities and owner’s equity 13,308,779,499.34 13,154,640,588.91
3. Consolidated Income Statement
In RMB
Item The first half of 2022 The first half of 2021
I. Total operating income 4,444,310,099.69 4,326,082,031.62
Inc: Operating income 4,444,310,099.69 4,326,082,031.62
Interest income
Earned premium
Fee and commission income
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
II. Total operating costs 3,739,161,547.48 3,435,552,198.16
Inc: Operating costs 2,240,019,882.53 1,993,891,622.30
Interest expenses
Fee and commission expenses
Surrender value
Net payments for insurance claims
Net allotment of reserves for insurance
liabilities
Policy dividend expenditures
Reinsurance expenses
Taxes and surcharges 23,760,024.24 32,378,228.12
Sale expenses 1,184,704,589.52 1,163,782,611.88
Administrative expenses 183,583,864.57 149,993,109.17
R&D expenses 169,368,645.53 143,433,206.12
Financial expenses -62,275,458.91 -47,926,579.43
Inc: Interest expenses 1,018,439.59 1,228,635.41
Interest income 60,042,815.83 50,677,538.57
Add: other income 94,070,746.70 55,086,765.01
Investment income (“-” for losses) 19,168,941.11 31,429,517.67
Inc: Income from investment in joint
ventures and associated companies -2,947,887.32 -1,440,070.07
Gains on derecognition of
financial assets measured at
amortized cost
Exchange gains (“-” for losses)
Net exposure hedging gains
(“-” for losses)
Gains from changes in fair value
(“-” for losses)
Losses from credit impairment (“-” for 9,024,313.93 -31,492,439.21
losses)
Losses from asset impairment (“-” for 24,056,013.60
losses)
Gains on disposal of assets (“-” for losses) 37,838.75 -2,035,843.51
III. Operating profits (“-” for losses) 851,506,406.30 943,517,833.42
Add: non-operating income 2,696,007.72 1,195,370.24
Less: non-operating expenditure 1,558,155.13 1,577,924.28
IV. Total profits (“-” for total losses) 852,644,258.89 943,135,279.38
Less: income tax expenses 131,172,418.86 143,489,604.07
V. Net profits (“-” for losses) 721,471,840.03 799,645,675.31
(I) By operational sustainability
1. Net profits from continuing operations 721,471,840.03 799,645,675.31
(“-” for net losses)
2. Net profits from discontinued
operations (“-” for net losses)
(II) By ownership
1. Net profits attributable to owners of the 723,549,381.25 790,388,759.79
parent company
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
2. Minority shareholders’ gains and losses -2,077,541.22 9,256,915.52
VI. After-tax net amount of other comprehensive
income
After-tax net amount of other comprehensive
income attributable to the owners of parent
company
(I) Other comprehensive incomes that cannot
be reclassified into profit or loss
1. Changes in re-measured and defined
benefit plans
2. Other comprehensive income which
cannot be transferred to gains or losses
under the equity method
3. Changes in fair value of the investment
in other equity instruments
4. Changes in fair value of the credit risk
of the Company
5. Others
(II) Other comprehensive income which will
be reclassified into gains and losses
1. Other comprehensive income which can
be transferred into gains and losses under
the equity method
2. Changes in fair value of other debt
investments
3. Amount of financial assets reclassified
into other comprehensive income
4. Provision for credit impairment of other
debt investments
5. Cash flow hedge reserve
6. Converted difference in foreign
currency statements
7. Others
After-tax net amount of other comprehensive
income attributable to minority shareholders
VII. Total comprehensive income 721,471,840.03 799,645,675.31
Total comprehensive income attributable to 723,549,381.25 790,388,759.79
owners of the parent company
Total comprehensive income attributable to -2,077,541.22 9,256,915.52
minority shareholders
VIII. Earnings per share (EPS):
(I) Basic EPS 0.76 0.83
(II) Diluted EPS 0.76 0.83
Legal representative: Ren Jianhua Person in charge of accounting: Zhang Guofu Head of the accounting department: Zhang Guofu
4. Income Statement of the Parent Company
In RMB
Item The first half of 2022 The first half of 2021
I. Operating income 4,159,599,550.58 3,957,294,958.01
Less: Operating costs 2,146,921,987.07 1,867,434,874.51
Taxes and surcharges 21,169,789.36 29,052,610.83
Sale expenses 1,053,210,272.02 995,416,077.48
Administrative expenses 130,121,271.69 107,028,148.18
R&D expenses 161,720,456.56 136,896,643.39
Financial expenses -61,053,558.14 -46,049,005.34
Inc: Interest expenses 714,893.28 1,228,635.41
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Interest income 58,189,221.15 47,935,867.95
Add: other income 86,160,552.68 51,032,167.31
Investment income (“-” for losses) 17,639,080.72 52,446,657.81
Inc: Income from investment in joint ventures -2,947,887.32 -1,440,070.07
and associated companies
Gains on derecognition of financial
assets measured at amortized cost (“-” for losses)
Net exposure hedging gains (“-” for losses)
Gains from changes in fair value (“-” for losses)
Losses from credit impairment (“-” for losses) 11,220,864.57 -32,279,529.57
Losses from asset impairment (“-” for losses) 24,056,013.60
Gains on disposal of assets (“-” for losses) -134,264.41 -2,072,673.59
II. Operating profits (“-” for losses) 846,451,579.18 936,642,230.92
Add: non-operating income 2,622,330.74 917,022.51
Less: non-operating expenditure 1,188,024.98 1,203,445.87
III. Total profits (“-” for total losses) 847,885,884.94 936,355,807.56
Less: Income tax expenses 127,513,732.18 137,593,038.71
IV. Net profits (“-” for net losses) 720,372,152.76 798,762,768.85
(I) Net profits from going concern (“-” for net 720,372,152.76 798,762,768.85
losses)
(II) Net profits from discontinued operations
(“-” for net losses)
V. After-tax net amount of other comprehensive income
(I) Other comprehensive income that cannot be
reclassified into gains and losses
1. Changes in re-measured and defined benefit
plans
2. Other comprehensive income which cannot be
transferred to gains or losses under the equity
method
3. Changes in fair value of the investment in other
equity instruments
4. Changes in fair value of the credit risk of the
Company
5. Others
(II) Other comprehensive income which will be
reclassified into gains and losses
1. Other comprehensive income which can be
transferred into gains and losses under the equity
method
2. Changes in fair value of other debt investments
3. Amount of financial assets reclassified into
other comprehensive income
4. Provision for credit impairment of other debt
investments
5. Cash flow hedge reserve
6. Converted difference in foreign currency
statements
7. Others
VI. Total comprehensive income 720,372,152.76 798,762,768.85
VII. EPS:
(I) Basic EPS
(II) Diluted EPS
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
5. Consolidated Cash Flow Statement
In RMB
Item The first half of 2022 The first half of 2021
I. Cash flow from operating activities:
Cash received for the sale of goods and 4,817,937,199.39 4,738,990,263.73
rendering of services
Net increase in clients’ deposits and
deposits from banks and other financial
institutions
Net increase in borrowings from the
central bank
Net increase in borrowings from other
financial institutions
Cash received from receiving insurance
premium of the original insurance
contract
Net cash from receiving reinsurance
premium
Net increase in deposits and investment
of insured persons
Cash received from interests, fees and
commissions
Net increase in borrowed funds
Net increase in repurchase business
funds
Net cash received from vicariously
traded securities
Refunds of taxes 29,520,918.02 7,323,753.03
Cash received relating to other 177,926,833.07 118,704,652.16
operating activities
Subtotal of cash inflow from operating 5,025,384,950.48 4,865,018,668.92
activities
Cash paid for purchased products and 2,583,318,265.69 2,252,759,526.62
received services
Net increase in loans and advances to
customers
Net increase in deposits with the central
bank and other financial institutions
Cash paid for claims of original
insurance contract
Net increase in lending funds
Cash paid for interests, fees and
commissions
Cash paid for policy dividends
Cash paid to and on behalf of 509,673,044.55 437,124,075.00
employees
Cash paid for taxes 408,649,175.45 369,427,461.40
Cash paid related to other operating 1,200,889,342.46 1,075,485,546.81
activities
Subtotal of cash outflow from operating 4,702,529,828.15 4,134,796,609.83
activities
Net cash flow from operating activities 322,855,122.33 730,222,059.09
II. Cash flow from investing activities:
Cash received from return of 892,912,500.00 1,234,000,000.00
investments
Cash received from return on 23,238,518.93 33,853,727.02
investments
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Net cash received from disposal of 1,030,970.40 2,206,278.90
fixed assets, intangible assets and other
long-term assets
Net cash received from disposal of
subsidiaries and other business entities
Cashes received related to other
investment activities
Subtotal of cash inflow from investment 917,181,989.33 1,270,060,005.92
activities
Cash paid for purchase and 269,416,076.84 154,539,404.13
construction of fixed assets, intangible
assets and other long-term assets
Cash paid to investments 923,500,000.00 901,000,000.00
Net increase in pledged loans
Net cash from subsidiaries and other
operating entities
Cash paid related to other investment
activities
Subtotal of cash outflow from investment 1,192,916,076.84 1,055,539,404.13
activities flow from investment activities -275,734,087.51 214,520,601.79
III. Cash flow from financing activities:
Cash from acquiring investments 25,000,000.00 850,000.00
Including: Cash received by 11,000,000.00 850,000.00
subsidiaries from investments of
minority shareholders
Cash from acquiring debts 17,000,000.00
Other cashes received in relation to 1,012,732.06 5,552,160.81
financing activities
Subtotal of cash inflow from financing 43,012,732.06 6,402,160.81
activities
Cash paid for repayments of debts 3,500,000.00
Cash paid for distribution of
dividends, profits or interest expenses 476,047,458.00 495,485,158.00
Inc: Dividends or profits paid by 4,000,000.00 22,950,000.00
subsidiaries to minority shareholders
Other cashes paid in relation to 6,536,810.12 199,995,742.59
financing activities
Subtotal of cash outflow from financing 486,084,268.12 695,480,900.59
activities
Net cash flow from financing activities -443,071,536.06 -689,078,739.78
IV. Effect of change in exchange rate 3,111,525.65 -264,556.23
on cash and cash equivalents
V. Net increase in cash and cash -392,838,975.59 255,399,364.87
equivalents
Plus: Opening balance of cash and cash 3,719,988,820.35 3,886,096,513.56
equivalents
VI. Closing balance of cash and cash 3,327,149,844.76 4,141,495,878.43
equivalents
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
6. Cash Flow Statement of the Parent Company
In RMB
Item The first half of 2022 The first half of 2021
I. Cash flow from operating activities:
Cash received for the sale of goods and 4,510,190,738.71 4,346,968,618.40
rendering of services
Refunds of taxes 23,286,694.84 7,323,753.03
Cash received relating to other 130,386,047.45 99,542,054.03
operating activities
Subtotal of cash inflow from operating 4,663,863,481.00 4,453,834,425.46
activities
Cash paid for purchased products and 2,444,657,366.67 2,138,946,028.17
received services
Cash paid to and on behalf of 388,860,388.83 340,735,312.05
employees
Cash paid for taxes 377,718,507.95 330,152,814.67
Cash paid related to other operating 1,074,310,127.24 932,462,696.53
activities
Subtotal of cash outflow from operating 4,285,546,390.69 3,742,296,851.42
activities
Net cash flow from operating activities 378,317,090.31 711,537,574.04
II. Cash flow from investing activities:
Cash received from return of 800,000,000.00 960,000,000.00
investments
Cash received from return on 21,676,168.09 54,819,617.81
investments
Net cash received from disposal of 509,970.40 2,156,298.90
fixed assets, intangible assets and other
long-term assets
Net cash received from disposal of
subsidiaries and other business entities
Cashes received related to other
investment activities
Subtotal of cash inflow from investment 822,186,138.49 1,016,975,916.71
activities
Cash paid for purchase and 227,459,776.46 112,968,774.96
construction of fixed assets, intangible
assets and other long-term assets
Cash paid to investments 850,000,000.00 610,000,000.00
Net cash from subsidiaries and other
operating entities
Cash paid related to other investment
activities
Subtotal of cash outflow from investment 1,077,459,776.46 722,968,774.96
activities
Net cash flow from investment activities -255,273,637.97 294,007,141.75
III. Cash flow from financing activities:
Cash from acquiring investments
Cash from acquiring debts
Other cashes received in relation to 1,012,732.06 5,552,160.81
financing activities
Subtotal of cash inflow from financing 1,012,732.06 5,552,160.81
activities
Cash paid for repayments of debts
Cash paid for distribution of 472,047,458.00 473,435,158.00
dividends, profits or interest expenses
Other cashes paid in relation to 3,516,183.32 199,995,742.59
financing activities
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Subtotal of cash outflow from financing 475,563,641.32 673,430,900.59
activities
Net cash flow from financing activities -474,550,909.26 -667,878,739.78
IV. Effect of change in exchange rate 3,111,599.62 -264,437.65
on cash and cash equivalents
V. Net increase in cash and cash -348,395,857.30 337,401,538.36
equivalents
Plus: Opening balance of cash and cash 3,504,333,910.43 3,627,178,859.95
equivalents
VI. Closing balance of cash and cash 3,155,938,053.13 3,964,580,398.31
equivalents
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
7. Consolidated Statement of Changes in Owners’ Equity
Current amount In RMB
The first half of 2022
Owners’ equity attributable to the parent company
Other equity
instruments
Gen
Item Spe
Pref Perp eral Minority interests Total owner’s equity
erre etua Other comprehensive cial Oth
Capital stock Capital reserve Less: Treasury share Surplus reserves risk Undistributed profits Subtotal
Oth income rese er
d l rese
er rves
shar bon rves
es ds
I. Ending balance of 949,024,050.00 404,918,098.15 199,995,742.59 -100,157,634.16 474,516,412.50 7,098,721,555.37 8,627,026,739.27 139,031,776.96 8,766,058,516.23
last year
Plus: Changes in
accounting policies
Correction
of errors of
the
previous
period
Business
combination under
common control
Others
II. Beginning balance 949,024,050.00 404,918,098.15 199,995,742.59 -100,157,634.16 474,516,412.50 7,098,721,555.37 8,627,026,739.27 139,031,776.96 8,766,058,516.23
of this year
III. Change in
current period (“-” 3,998,366.27 - - 251,501,923.25 255,500,289.52 4,922,458.78 260,422,748.30
for decrease)
(I) Total 723,549,381.25 723,549,381.25 -2,077,541.22 721,471,840.03
comprehensive
income
(II) Capital invested 3,998,366.27 - 3,998,366.27 11,000,000.00 14,998,366.27
and decreased by the
owners
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
1. Common shares 11,000,000.00 11,000,000.00
-
invested by the
owners
2. Other equity - -
instruments Capital
invested by holders
3. Amount of share- 3,998,366.27 3,998,366.27 3,998,366.27
based payments
recognized in
owners’ equity
4. Others -
(III) Profit -472,047,458.00 -472,047,458.00 -4,000,000.00 -476,047,458.00
distribution
1. Withdrawal of -
surplus reserve
2. Appropriation -
of general risk
reserve
3． Distribution -472,047,458.00 -472,047,458.00 -4,000,000.00 -476,047,458.00
to owners (or
shareholders)
4. Others -
(IV) Internal carry- -
forward of owners’
equity
1. Capital reserve -
converted into
capital (or capital
stock)
2. Surplus reserve -
converted into
capital (or capital
stock)
3. Surplus
reserves making
up for losses
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
4. Changes of
defined benefit
plans carried
forward to retained
earnings
5. Other
comprehensive
income carried
forward to
retained earnings
6. Others
(V) Special reserve
1. Withdrawn in
current period
2. Used in current
period
(VI) Others
IV. Ending balance of 949,024,050.00 408,916,464.42 199,995,742.59 -100,157,634.16 474,516,412.50 7,350,223,478.62 8,882,527,028.79 143,954,235.74 9,026,481,264.53
current period
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Amount of last year
In RMB
The first half of 2021
Owners’ equity attributable to the parent company
Item Other equity instruments Special General
Othe Minority interests Total owner’s equity
Other comprehensive reserve risk
Capital stock Perpet Capital reserve Less: Treasury share Surplus reserves Undistributed profits Subtotal
Othe income r
Preferred s reserves
ual
shares r
bonds
-
I. Ending balance of last year 949,024,050.00 401,799,332.67 474,516,412.50 6,240,444,654.34 8,050,626,815.35 143,152,413.29 8,193,779,228.64
15,157,634.16
Plus: Changes in accounting
policies
Correction of errors of the
previous period
Business combination under
common control
Others
-
II. Beginning balance of this year 949,024,050.00 401,799,332.67 474,516,412.50 6,240,444,654.34 8,050,626,815.35 143,152,413.29 8,193,779,228.64
15,157,634.16
III. Change in current period (“-”
802,690.61 199,995,742.59 294,903,601.79 95,710,549.81 10,106,915.52 105,817,465.33
for decrease)
(I) Total comprehensive income 790,388,759.79 790,388,759.79 9,256,915.52 799,645,675.31
(II) Capital invested and decreased by 802,690.61 802,690.61 850,000.00 1,652,690.61
the owners
1. Common shares invested by the 850,000.00 850,000.00
owners
2. Capital invested by holders of other
equity instruments
3. Amount of share-based payments
802,690.61 802,690.61 802,690.61
recognized in owners’ equity
4. Others
(III) Profit distribution -495,485,158.00 -495,485,158.00 -495,485,158.00
1. Withdrawal of surplus reserve
2. Appropriation of general risk
reserve
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3． Distribution to owners (or -495,485,158.00 -495,485,158.00 -495,485,158.00
shareholders)
4. Others
(IV) Internal carry-forward of owners’
equity
1. Capital reserve converted into
capital (or capital stock)
2. Surplus reserve converted into
capital (or capital stock)
3． Surplus reserves making up for
losses
4. Changes of defined benefit plans
carried forward to retained earnings
5. Other comprehensive income
carried forward to retained earnings
6. Others
(V) Special reserve
1. Withdrawn in current period
2. Used in current period
(VI) Others 199,995,742.59 -199,995,742.59 -199,995,742.59
-
IV. Ending balance of current period 949,024,050.00 402,602,023.28 199,995,742.59 474,516,412.50 6,535,348,256.13 8,146,337,365.16 153,259,328.81 8,299,596,693.97
15,157,634.16
8. Statement of Changes in Owners’ Equity of the Parent Company
Current amount
In RMB
The first half of 2022
Item Other equity instruments
Capital stock Capital reserve Less: Treasury Other Special Surplus reserves Undistributed Others Total owner’s equity
share comprehensive reserves profits
Preferred Perpetual Others
income
shares bonds
I. Ending balance of last year 949,024,050.00 404,873,115.14 199,995,742.59 -100,157,634.16 474,516,412.50 6,971,309,836.02 8,499,570,036.91
Plus: Changes in accounting policies
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Correction of errors of the previous period
Others
II. Beginning balance of this year 949,024,050.00 404,873,115.14 199,995,742.59 -100,157,634.16 474,516,412.50 6,971,309,836.02 8,499,570,036.91
III. Change in current period (“-” for decrease) 3,998,366.27 248,324,694.76 252,323,061.03
(I) Total comprehensive income 720,372,152.76 720,372,152.76
(II) Capital invested and decreased by the owners 3,998,366.27 3,998,366.27
1. Common shares invested by the owners
2. Capital invested by holders of other equity instruments
3. Amount of share-based payments recognized in owners’ 3,998,366.27 3,998,366.27
equity
4. Others
(III) Profit distribution -472,047,458.00 -472,047,458.00
1. Withdrawal of surplus reserve
2. Distribution to owners (or shareholders) -472,047,458.00 -472,047,458.00
3. Others
(IV) Internal carry-forward of owners’ equity
1. Capital reserve converted into capital (or capital stock)
2. Surplus reserve converted into capital (or capital stock)
3. Surplus reserves making up for losses
4. Changes of defined benefit plans carried forward to retained
earnings
5. Other comprehensive income carried forward to retained
earnings
6. Others
(V) Special reserve
1. Withdrawn in current period
2. Used in current period
(VI) Others
IV. Ending balance of current period 949,024,050.00 408,871,481.41 199,995,742.59 -100,157,634.16 474,516,412.50 7,219,634,530.78 8,751,893,097.94
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Amount of last year
In RMB
The first half of 2021
Item Other equity instruments
Capital stock Capital reserve Less: Treasury Other Special Surplus reserves Undistributed profits Others Total owner’s equity
share comprehensive reserves
Preferred Perpetual Others
shares bonds income
I. Ending balance of last year 949,024,050.00 401,754,349.66 -15,157,634.16 474,516,412.50 6,120,603,639.69 7,930,740,817.69
Plus: Changes in accounting policies
Correction of errors of the previous period
Others
II. Beginning balance of this year 949,024,050.00 401,754,349.66 -15,157,634.16 474,516,412.50 6,120,603,639.69 7,930,740,817.69
III. Change in current period (“-” for decrease) 802,690.61 199,995,742.59 325,327,610.85 126,134,558.87
(I) Total comprehensive income 798,762,768.85 798,762,768.85
(II) Capital invested and decreased by the owners 802,690.61 802,690.61
1. Common shares invested by the owners
2. Capital invested by holders of other equity instruments
3. Amount of share-based payments recognized in owners’ 802,690.61 802,690.61
equity
4. Others
(III) Profit distribution -473,435,158.00 -473,435,158.00
1. Withdrawal of surplus reserve
2. Distribution to owners (or shareholders) -473,435,158.00 -473,435,158.00
3. Others
(IV) Internal carry-forward of owners’ equity
1. Capital reserve converted into capital (or capital stock)
2. Surplus reserve converted into capital (or capital stock)
3. Surplus reserves making up for losses
4. Changes of defined benefit plans carried forward to retained
earnings
5. Other comprehensive income carried forward to retained
earnings
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6. Others
(V) Special reserve
1. Withdrawn in current period
2. Used in current period
(VI) Others 199,995,742.59 -199,995,742.59
IV. Ending balance of current period 949,024,050.00 402,557,040.27 199,995,742.59 -15,157,634.16 474,516,412.50 6,445,931,250.54 8,056,875,376.56
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III. Basic Information of the Company
Hangzhou Robam Appliances Co., Ltd. (hereinafter referred to as Robam or the Company) is an incorporated company
established by overall changing Hangzhou Robam Home Appliances Co., Ltd. on November 7, 2000. Approved by China Securities
Regulatory Commission (Approval document No.: ZJXK [2010] No. 1512), the Company offered 40 million ordinary shares in RMB to
the public for the first time on November 23, 2010 (stock code: 002508), with the par value of RMB 1 per share and the issue price of
RMB 24.00 per share.
As of June 30, 2022, the total capital stocks of the Company reached RMB 949,024,050 after several equity changes. The
Company’s unified social credit code is 91330000725252053F; the legal representative is Ren Jianhua; the address is No.592, Linping
Avenue, Yuhang Economic Development Area, Yuhang District, Hangzhou.
The Company is a manufacturing company, with major businesses covering research & development, production, sales and
comprehensive services of kitchen appliances. Its main products include range hoods, gas stoves, disinfection cabinets, steam ovens,
baking ovens, dishwashers, water purifiers, microwave ovens, integrated stoves, and purification tanks.
The main business scope is: business items licensed in Article 13: production of disinfection device; production of electrothermal
food processing equipment (For business subject to approval according to law, relevant operating activities may not be carried out until
they are approved by relevant authorities, and the specific business items shall be subject to the results of examination and approval).
General business: research and development of kitchen utensils, sanitary ware and daily sundries; wholesale of kitchen utensils, sanitary
ware and daily sundries; sales of daily glass products; sales of household appliances; installation services for household appliances;
research and development of household appliances; sales of household products; sales of daily necessities; manufacturing of daily
wood products; retail of household appliances; repair of household appliances; manufacturing of household appliances; sales of
electrothermal food processing equipment; wholesale of daily necessities; technical services, technology development, technical
consultation, technology exchange, technology transfer and technology promotion; sales of non-electric household appliances;
manufacturing of non-electric household appliances; production of gas appliances; sales of refrigeration and air-conditioning equipment;
manufacturing of refrigeration and air-conditioning equipment; basic artificial intelligence software development; manufacturing of
intelligent household consumption equipment; sales of artificial intelligence hardware; manufacturing of special equipment for
commerce, catering and service; sales of special equipment for commerce, catering and service; import and export of goods;
manufacturing of special equipment for environmental protection; sales of special equipment for environmental protection (except for
business subject to approval according to law, operating activities shall be independently carried out as described in business license
according to law).
The consolidated financial statements of the Company cover eight companies, including Beijing Robam Appliances Sales Co.,
Ltd., Shanghai Robam Appliances Sales Co., Ltd., Hangzhou MingQi Electric Co., Ltd., De Dietrich Household Appliances Trading
(Shanghai) Co., Ltd., Shengzhou Kinde Intelligent Kitchen Appliances Co., Ltd., Hangzhou Robam Fuchuang Investment Management
Co., Ltd. Zhejiang Cookingfuture Technology Co., Ltd. and Hangzhou Jinhe Electric Appliances Co., Ltd. Compared to the last period,
the Company added one subsidiary in this period as the Hangzhou Jinhe Electric Appliances Co., Ltd. was newly established. For
details, please see relevant contents in the section of "IX. Interests in Other Entities" herein.
IV. Basis for Preparation of Financial Statements
1. Preparation basis
The financial statements of the Company are prepared on a going concern basis, and in light of the Company’s actual transactions
and events, in accordance with the Accounting Standards for Business Enterprises promulgated by the Ministry of Finance of China and
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relevant provisions, as well as the accounting policies and estimates stated in the section of "Significant Accounting Policies and
Estimates" herein.
2. Going concern
After taking into account of factors such as macro policy risks, market management risks, and the current and long-term
profitability, solvency, and financial flexibility of the Company, as well as the intention of the management to change the operation
policies, the management of the Company believes that there are no matters affecting the Company’s going concern within 12 months
from the end of the reporting period onwards.
V. Significant Accounting Policies and Estimates
Specific accounting policies and estimates:
The specific accounting policies and estimates prepared by the Company according to its actual production and operation
include the operating cycle, the recognition and measurement of receivables and bad debts, measurement of inventory delivered, fixed
assets classification as well as depreciation methods, invisible asset amortization, conditions for the capitalization of R&D expenses,
and revenue recognition and measurement.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of the Accounting Standards for Business
Enterprises, and truthfully and completely reflect financial position, business results, cash flow and other relevant information of the
Company.
2. Accounting period
The Company’s accounting period starts on January 1 and ends on December 31 on the Gregorian calendar.
3. Operating cycle
The normal operating cycle of the Company shall be one year (12 months).
4. Bookkeeping base currency
The Company adopts RMB as the bookkeeping base currency.
5. Accounting approaches to business combinations under or not under common control
The assets and liabilities acquired by the Company as the combining party in a business combination under common control
shall be measured at the book value of the combined party in the final controller’s consolidated statements on the combination date.
The capital reserve shall be adjusted against the difference between the book value of the net assets acquired by the combining party
and the book value of the combination consideration paid by it. If the capital reserve is insufficient to offset the difference, the
retained earnings shall be adjusted.
The identifiable assets, liabilities and contingent liabilities acquired from the acquiree in a business combination not under
common control shall be measured at fair value on the acquisition date. The combination cost is the sum of fair values of cash or non-
cash assets paid, liabilities issued or undertaken, equity securities issued, etc. by the Company for the purpose of taking control over
the acquired party on the acquisition date and all directly related expenses incurred during the business combination (in case of
business combination accomplished through multiple transactions step by step, the combination cost is the sum of the cost of every
single transaction). If the combination cost is greater than the fair value share of the acquiree’s identifiable net assets acquired from
the acquiree in the combination, the case is recognized as goodwill. Where the combination cost is less than the fair value share of the
identifiable net assets acquired from the acquiree, the fair values of the identifiable assets, debts and contingent liabilities acquired in
the combination and those of non-cash assets subject to combination consideration or issued equity securities shall be rechecked first,
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and then in case the combination cost is less than the fair value shares of the identifiable net assets acquired from the acquiree, the
difference shall be included in the non-operating income in the period of the combination.
6. Methods of preparing consolidated financial statements
All subsidiaries under the control of the Company are included into the consolidated financial statements.
The financial statements of subsidiaries are adjusted in accordance with the accounting policies and accounting period of the
Company when preparing the consolidated financial statements, where the accounting policies and accounting periods are inconsistent
between the Company and its subsidiaries.
All major internal transactions, inter-company balances, and unrealized profits with the scope of consolidation shall be offset
when preparing consolidated financial statements. The portion of owner’s equity of subsidiaries not held by the parent company and
net current profit & loss, other comprehensive incomes and the portion of total comprehensive incomes belonging to minority equity
are presented under "minority equity, minority interest income, other comprehensive incomes belonging to minority shareholders and
total comprehensive incomes belonging to minority shareholders, respectively."
For a subsidiary acquired from a business combination under common control, its operating results and cash flows are included
in the consolidated financial statements since the beginning of the consolidation year. When the comparable consolidated financial
statements are being prepared, relevant items in the financial statements of the last year are adjusted with the stated party formed after
merging deemed to exist from the time of the ultimate controlling party starting to control.
For a subsidiary acquired through business combinations not under the same control, its operating results and cash flows shall
be included into the consolidated financial statement since the date when the Company obtains control. When preparing the
consolidated financial statements, the subsidiary’s financial statements shall be adjusted on basis of the fair value of all identifiable
assets, liabilities and contingent liabilities ascertained on the purchasing date.
For equity interests in an investee not under common control realized by two or more transactions, which finally bring about the
business combination, equity interests in the investee before the acquisition date shall be re-measured at fair value on the acquisition
date and the balance between the fair value and the book value shall be included in the investment gains for the current period when
preparing the consolidated statements. If the related acquiree’s equity held before the acquiring date contains other comprehensive
income and the other changes of owner’s equity except for net profits and losses, other comprehensive income and profit distributions,
it shall be transferred to investment gains or losses on the date of acquisition, excluding the other comprehensive income derived from
changes of net liabilities or net assets due to re-measurement on defined benefit plan by the investee.
Without losing any control right, the Company has partially disposed the long-term equity investment in the subsidiary. In the
consolidated financial statement, according to the difference between the disposal prices of part of the equity investment in the
subsidiary and net assets of the subsidiary attributed to the Company as a result of disposal of long-term equity investment
continuously calculated from the purchase date or consolidation date in the subsidiary, capital premium or stock premium is adjusted,
where the capital surplus is not sufficient to be offset, they are adjusted to the retained earnings.
Where the Company loses the controlling right of the invested party for such reason as disposing partial equity investment, the
remaining equity is re-measured as per the fair value of such equity on the day of losing controlling rights when preparing the
consolidated financial statements. The balance from the sum of the consideration obtained upon the disposal of equity and the fair
value of the remaining equity less the appropriable share of the net asset of the former subsidiaries, calculated as per the former
shareholding proportion from the purchase day or merging day, is included in the investment income for the period when the right of
control is lost and the goodwill is deducted. Other comprehensive incomes related to former equity investment in subsidiaries shall be
recognized as current investment profits & losses upon losing controls.
7. Classification of joint venture arrangement and accounting methods for joint operation
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The joint arrangement of the Company includes the joint venture.
The Company, serving as one part of the joint venture, shall, in accordance with the provisions of the Accounting Standards for
Business Enterprises No. 2 Long-term Equity Investments, conduct accounting treatment of the investment of the joint venture.
8. Recognition standard of cash and cash equivalents
Cash presented in the Company’s cash flow statement refers to cash on hand and deposits that are available for payment at any
time. Cash equivalents presented in the cash flow statement refer to short-term investments (not exceeding three months) with high
liquidity and that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value.
9. Foreign currency business and conversion of foreign currency statement
Foreign currency transactions
The Company translates the foreign-currency amount of foreign-currency transactions into an RMB amount based on the spot
exchange rate applicable on the transaction date. On the balance sheet date, the monetary items in foreign currencies shall be converted
at the spot rate on the said balance sheet date. The conversion differences arising therefrom, except the exchange balance arising from
the foreign currency borrowings special for acquisition or production of qualifying assets which shall be processed according to the
capitalization principle, shall be directly included in the current profit or loss. The foreign currency non-monetary items measured at
fair value shall be converted according to the spot rate of the date when the fair value is confirmed. If the difference between the
converted amount of booking base currency and the original amount of booking base currency belongs to the salable financial asset,
such difference shall be included in the capital reserve; if such difference belongs to the foreign currency non-monetary item which is
measured at fair value and whose change is included in the profits and losses of the current period, it shall be included in current profits
and losses. The foreign currency non-monetary items measured by historical cost shall still be translated according to the spot rate on
the transaction date, while RMB amount remains unchanged.
Translation of foreign currency financial statements
Assets and liabilities items in the balance sheets of foreign operations are translated into RMB using the spot exchange rate at the
balance sheet date, while the shareholders’ equity items, except for the "undistributed profit", are translated into RMB using the spot
exchange rate at the date of transaction. The income and expense items in the income statements of overseas operations are translated at
the exchange rate approximate to the spot rate at the date of transaction. The difference arising from the above translation is presented
separately under other comprehensive income. For monetary items denominated in foreign currencies that materially constitute overseas
net investment in overseas operations, exchange differences arising from changes in exchange rates, when preparing the consolidated
financial statements, are also separately presented under the Shareholders’ equity as foreign currency translation differences. In case of
disposal of an overseas operation, foreign currency translation differences relating to the overseas operation are proportionately
transferred to the profits or losses of the period when the disposal was transacted. During the disposal of an overseas operation, other
comprehensive incomes related to the overseas operation are transferred in proportion into the disposal of current profits and losses.
The foreign currency cash flow and the cash flow of overseas subsidiaries shall be converted using the exchange rate approximate
to the spot rate of the transaction date of the cash flow. The effect of exchange rate changes on cash is presented separately in the cash
flow statement.
10. Financial instruments
The Company shall recognize a financial asset or a financial liability when it becomes a party to a financial instrument contract.
Financial assets
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Classification, recognition basis and measurement method of financial assets
Based on the business model for management of financial assets and the contractual cash flow characteristics of financial assets,
the Company classifies the financial assets into three types: 1) the financial asset measured at amortized cost; 2) the financial asset
measured at the fair value with its changes included into other comprehensive incomes; and 3) and the financial asset measured at the
fair value with its changes included into current profits or losses.
The financial assets meeting all of the following conditions can be classified as those measured at amortized cost by the Company:
① the Company adopts the business management mode of financial assets for the purpose of collecting contractual cash flow. ② In
accordance with the contract terms of the financial assets, the cash flow generated at the specific date is only the payment of the
principal and the interest on the basis of the outstanding principal amount. Such financial assets are initially measured at their fair
values, with related transaction costs included into the amount of initial recognition, and subsequent measurement conducted with the
amortized cost. Apart from those designated as hedged items, the difference between the initial amount amortized with the effective
interest method and the amount due, profits or losses incurred upon amortization, impairment, exchange profits and losses and
derecognition shall be included into current profits and losses.
Where the following conditions are reached at the same time, the financial assets can be classified by the Company as those
measured at fair value with the changes included into other comprehensive income: ① the Company adopts the business management
mode of the financial assets for the purpose of collecting contractual cash flow and selling the financial assets. ② In accordance with
the contract terms of the financial assets, the cash flow generated at the specific date is only the payment of the principal and the interest
on the basis of the outstanding principal amount. Such financial assets are initially measured at their fair values, with related transaction
costs included into the amount of initial recognition. Apart from those designated as the hedged items, profits or losses incurred by such
financial assets shall be included into the comprehensive incomes, except for credit impairment losses or gains, exchange profits and
losses and the interests calculated as per the actual interest rate for such financial assets. Upon derecognition of the financial assets, the
accumulated gains or losses previously recorded in other comprehensive incomes shall be transferred out of such other comprehensive
incomes and included into the current profits and losses.
The interest income is recognized by the Company using the effective interest method. The interest income is determined by
multiplying the book balance of financial assets by the effective interest rate, except for conditions below:
① For the financial assets purchased by or originating from the Company with credit impairment, from the initial confirmation, the
interest income shall be determined as per the amortized cost of the financial asset and the effect interest rate subject to credit
adjustment. ② The financial assets purchased by or originating from the Company with no credit impairment but having credit
impairment during the follow-up period shall be subject to interest income calculation by the Company based on the amortized cost and
actual interest rate of the financial assets during the follow-up period.
The non-trading equity instrument is designated by the Company as the financial asset which is measured at its fair value with
changes included into current profits and losses. The designation shall not be canceled once it is made. The non-trading equity
instrument investment, designed by the Company to be measured at the fair value with their changes included in other comprehensive
incomes, is initially measured at fair value, with related transaction cost included in the amount of initial confirmation. Except for the
obtained dividends (excluding those of the recovered investment cost), which are included in current profits and losses, other related
profits and losses (including exchange profits and losses) are completely included in the other comprehensive incomes and will not then
be converted into current profits and losses. Upon derecognition, the accumulated gains or losses previously included into other
comprehensive incomes are transferred from other comprehensive incomes and included into retained earnings.
Except for the financial assets classified to be measured by the amortized cost and those measured at fair value through other
comprehensive income, other financial assets are classified by the Company as those measured at fair value through current profits and
losses. Such financial assets are initially measured at their fair values, with related transaction costs directly included into the current
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profits and losses. Such financial assets are initially measured at their fair values, with related transaction costs directly included into the
current profits and losses. Profits or losses of such financial assets shall be included in the current profits and losses.
The financial asset formed by the contingent consideration confirmed during business combination not under the same control
are classified as those measured by its fair value by the Company, with changes included into current profits and losses.
Recognition basis and measurement method for transfer of financial assets
Financial assets meeting one of the following conditions shall be derecognized by the Company: ① the contractual right to
collect the cash flow of the financial asset is terminated; ② The financial assets have been transferred by the Company, and almost all
risks and returns associated with the ownership of the financial asset are transferred; ③ The financial assets have been transferred, and
the Company had neither transferred nor retained almost all risks and rewards in the ownership of the financial assets, but given up the
control over the financial assets.
For a financial asset that is entirely transferred and meets the conditions of derecognition, the difference is calculated between the
book value of the transferred financial asset and the sum of consideration received from such transfer and the accumulated changes in
fair value, which is directly included into other comprehensive income and corresponds to the derecognized amount (in accordance with
the contract terms of the financial assets involved in such transfer, the cash flow generated at the specific date is only the payment of the
principal and the interest on the basis of the outstanding principal amount). This difference is included into the current profits and losses.
For a financial asset that is partially transferred and meets the conditions of derecognition, the overall book value of the
transferred financial asset is split according to the relative fair value between the part derecognized and the part not derecognized, and
the difference between the following two amounts is recognized in current profits and losses: the sum of consideration received due to
transfer and the amount amortized to the derecognized part and corresponding to the accumulative change of fair value which is firstly
included into the other comprehensive income (in accordance with the contract terms of the financial assets, the cash flow generated at
the specific date is only the payment of the principal and the interest on the basis of the outstanding principal amount), and the overall
book value of aforesaid financial assets.
Financial liabilities
1) Classification, recognition basis and measurement method of financial liabilities
The Company’s financial liabilities are grouped, upon initial recognition, into financial liabilities measured at fair value, with the
changes included in the current profit or loss and other financial liabilities.
Financial liabilities measured at fair value with changes included in the current profits and losses include trading financial
liabilities and financial liabilities designated to be measured as at fair value with changes included in the current profits and losses upon
initial recognition. The net gain or loss arising from changes in fair value, dividends and interest paid related to such financial liabilities
are recorded in profits and losses for the period in which they are incurred.
Other financial liabilities are measured subsequently at the amortized cost by adopting the effective interest method. Apart from
the following items, the Company will classify the financial liabilities as those measured at amortized cost: ① the financial liabilities
measured at fair value with changes included into current profits and losses include financial liabilities held for trading (including
derivatives that are financial liabilities) and financial liabilities designated to be measured at fair value with changes included into
current profits and losses. ② The financial liabilities formed by transferring of the financial assets failed to meet the conditions for
derecognition or formed by continuous involvement of transferred financial assets. ③ The financial guarantee contracts that do not fall
under the above ① and ② as well as loan commitments at a rate below the market rate of interest that do not fall under the above ①.
Where a contingent consideration is recognized by the Company as a financial liability in a business combination not under
common control, such financial liability shall be measured at fair value with changes included into the current profits and losses during
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accounting treatment.
2) Derecognition conditions for financial liabilities
When the current obligation of the financial liabilities has been relieved in whole or part, the part of the financial liabilities or
obligations that have been relieved upon confirmation is terminated. If the Company reaches an agreement with the creditor to replace
the existing financial liabilities by undertaking new financial liabilities and the contract terms of the existing and new liabilities are
different in substance, the existing financial liabilities shall be derecognized while the new liabilities shall be recognized. Where all or
part of the contract terms of the existing financial liabilities are subject to material modification, the Company shall derecognize all or
part of the existing financial liabilities while recognizing the financial liabilities with modified terms as new financial liabilities. The
difference between the book value of the terminated part upon confirmation and the considerations paid is included in the current
profit and loss.
3) Method for determining the fair value of financial assets and financial liabilities
The Company measures the fair value of financial assets and financial liabilities in the main market. If there is no major market,
the Company measures the fair value of financial assets and financial liabilities with most beneficial price for the market and adopts
evaluation techniques with much available data and other information support that is applicable at that time. Input data for
determining fair values has three levels, wherein the input data of the first level is the unadjusted price available for the same asset or
liability on the date of evaluation in an active market; the input data of the second level are directly or indirectly observable value of
relevant assets or liabilities apart from input data of the first level; the input data of the third level are unobservable value of relevant
assets or liabilities. The Company gives priority of using the first-level inputs and takes the third-level inputs as the last. The lowest
layer that has significant impact on the overall fair value evaluation determines which layer this fair value evaluation result shall
belong to.
Investments in equity instruments of the Company are measured at fair value. However, under certain circumstances, if recent
information needed to determine the fair value is insufficient, or if the estimated amount of the fair value features an extensive
distribution scope and the cost represents the best estimate of the fair value in that distribution scope, the cost may represent the
appropriate estimate on the fair value within that distribution scope.
Offsetting financial assets and financial liabilities
Financial assets and liabilities of the Company are presented separately in the balance sheet without offsetting. However, the net
amount resulting from the offsetting between financial assets and financial liabilities shall be presented in the balance sheet only if all
of the following criteria are met: (1) The Company has the statutory right to set off recognized amounts which is currently enforceable.
(2) The Company intends either to settle on a net basis, or to realize the financial assets and pay off the financial liabilities
simultaneously.
Distinction and relevant treatment methods of financial liabilities and equity instruments
The Company distinguishes between financial liabilities and equity instruments according to the following principles: (1) Where
the Company cannot unconditionally avoid fulfilling certain contractual obligation by delivering cash or other financial assets, then
such contractual obligation is in line with the definition of the financial liabilities. Although certain financial instruments do not
expressly contain terms and conditions for the contractual obligation to deliver cash or other financial instruments, the contractual
obligation may be indirectly formed according to other terms and conditions. (2) Where a financial instrument must or is able to be
settled by the Company’s own equity instrument, the Company shall consider whether the Company’s own equity instrument as the
settlement instrument is a substitute of cash or other financial assets, or the residual interest in the assets of an entity after deducting
all of its liabilities. If it is the first case, the instrument shall be the financial liability of the issuer; if it is the second case, the
instrument shall be the equity instrument of the issuer. Under some circumstances, the contract of a financial instrument may require
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that the financial instrument must or is able to be settled by the Company’s own equity instrument. The amount of contractual right or
contractual obligation equals to the amount of its own equity instrument receivable or payable multiplied by its fair value at the time
of settlement. Whether the amount of such contractual right or obligation is fixed, or varies, wholly or partially, based on variables
other than the market value of the Company’s own equity instrument (such as interest rates, the price of a commodity or the price of a
financial instrument), such contract is classified as financial liability.
In classifying financial instruments (or components) in the consolidated statements, the Company shall take into account all the
terms and conditions agreed between members of the Company and holders of the financial instruments. If the Company, as a whole,
undertakes the obligation to deliver cash, other financial assets or settle in other ways that cause the financial instrument to become a
financial liability, the instrument shall be classified as a financial liability.
If a financial instrument or any of its components is a financial liability, the relevant interests, dividends, gains or losses, and
gains or losses from redemption or re-financing and so on are included in the current profits & losses of the Company.
If a financial instrument or its component belongs to an equity instrument, for its issue (including re-financing), repurchase, sale
or cancellation, the Company will treat it as a change in equity and will not recognize the change in fair value of equity instruments.
Impairment of financial instruments
The Company, based on expected credit losses, performed impairment accounting and recognized credit impairment losses on
financial assets measured at amortized cost, financial assets classified to be measured at the fair value with the changes included into
other comprehensive incomes as well as financial guarantee contracts.
The expected credit loss is a weighted average of credit losses on financial instruments weighted at the risk of default. Credit
loss refers to the difference between all contractual cash flows discounted as per the original effective interest rate and receivable from
the contract and all cash flows expected to be received by the Company, namely, the present value of a shortage of cash. Among them,
financial assets purchased or underlying with credit impairment of the Company shall be discounted at the financial assets’ effective
interest rate after credit adjustment.
For account receivables arising from transactions scoped in ASBE on Revenue not containing significant financing components,
the Company takes the simplified measurement method to measure its loss provisions based on the amount of expected credit losses
during the entire duration.
For financial assets purchased or underlying with credit impairment, the cumulative change in expected credit loss during the
entire duration since the date of balance sheet date after initial recognition will be recognized as provision for loss. On each date of
balance sheet, the amount of change in expected credit loss during the entire duration is included into current profits and losses as
impairment losses or gains. Even if the expected credit loss within the entire duration determined on the date of balance sheet is less
than the amount of expected credit loss reflected by estimated cash flow upon initial recognition, any favorable change in expected
credit loss will be recognized as impairment gains.
In addition to other financial assets adopting the aforesaid simplified measurement method or financial assets purchased or
underlying with credit impairment, the Company shall assess whether the credit risk of relevant financial instruments has increased
significantly since the initial recognition on each balance sheet date, and shall respectively accrue their provision for loss and
recognize the expected credit loss and its change:
1) In the event that the credit risk has not increased significantly since the initial recognition and it is in Stage I, the Company
shall measure its loss provisions based on the amount of expected credit losses for the coming 12 months of such financial instrument
and calculate the interest on the basis of book balance and effective interest rate.
2) In the event that the credit risk of the financial instrument has increased significantly since the initial recognition but with no
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credit impairment and it is in Stage II, the Company shall measure its loss provisions based on the amount of the expected credit loss
of the financial instrument during the entire duration and calculate the interest on the basis of book balance and effective interest rate.
3) In case that credit impairment of the financial instrument has incurred since the initial recognition and it is in Stage III, the
Company shall measure the loss provisions of the financial instrument based on the amount of expected credit losses during the entire
duration, and calculate the interest at amortized cost and effective interest rate.
Increases or reversals of the provisions for credit losses of the financial instrument are recorded in the current profits and losses
as impairment losses or gains. Except for financial assets classified to be measured at fair value through other comprehensive income,
the book balance of financial assets is deducted with provision for credit losses. For financial assets classified to be measured at fair
value, with the change included in other comprehensive incomes, the Company shall recognize the provision for credit loss in other
comprehensive incomes, and shall not decrease the book value of such financial assets listed in the balance sheet.
Where the Company has measured the provisions for losses based on the amount of the expected credit loss over the entire
duration of such financial instruments in the prior accounting period, but on the current balance sheet date, such financial instruments
no longer fall into the scope of significantly increased credit risk since initial recognition, the Company measures the provisions for
the losses of such financial instruments based on the amount equivalent to the expected credit losses over the coming 12 months on
the current balance sheet date, with resulting carrybacks of provisions for losses recorded in the current profits and losses as
impairment gains.
① Significant increase in credit risk
The Company determines if there is a significant increase in credit risk of financial instruments since initial recognition by
comparing the risks of default of financial instruments on the balance sheet date and the date of initial recognition based on reasonable
and well-grounded forward-looking information available. For the financial guarantee contract, when the Company applies the
regulations on impairment of financial instruments, the date when the Company becomes the party which makes the irrevocable
undertaking is regarded as the date of initial recognition. The Company will take into account the following factors when it assesses
whether the credit risk is significantly increased: the operating results of the debtor have actually changed or are expected to
significantly change or not; whether the regulatory, economic or technical environment where the debtor is located has significantly
and adversely changed or not; whether the value of the collateral as the debt pledge or the guarantee provided by the third party or
credit enhancement quality has significantly changed or not, as these changes are expected to reduce the economic motives of the
debtor to make repayments within the time limits prescribed in the Contract or to impact the default probability; whether the expected
performance or repayment behavior of the debtor has significantly changed or not; whether the Company has changed its management
method for financial instrument credit or not, etc.
On the balance sheet date, if the Company determines that the financial instrument only carries low credit risks, then the
Company will assume that the credit risks of the financial instrument have not increased significantly since the initial recognition. If
the risk of default on financial instruments is low, the borrower is highly capable of performing its contractual cash flow obligations
in the short term, and even if the economic situation and operating environment are adversely changed over a long period of time but
not necessarily reducing the borrower’s performance of its contractual cash obligations, then the financial instrument is considered as
having a lower credit risk.
② Credit-impaired financial assets
In case of one or more events adversely affecting the estimated future cash flows of a financial asset, the financial asset
becomes a financial asset to which a credit impairment has occurred. Evidence of a credit impairment on a financial asset includes the
following information: serious financial difficulties of the debtor; a breach of contract by the debtor, such as a default or overdue
payment of interest or principle; the creditor, for economic or contractual considerations relating to financial difficulties of the debtor,
offers the debtor concessions that are impossible in any other circumstances; it is probable that the debtor will enter bankruptcy or
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other financial reorganization; the disappearance of an active market for that financial asset because of financial difficulties of the
issuer or the debtor; the purchase or origination of a financial asset at a deep discount that reflects the incurred credit losses.
The credit impairment of financial assets may be caused by the joint effect of the above multiple events, and may not be caused by
individually identifiable events.
③ Determination of expected credit losses
In assessing the expected credit loss, the Company takes reasonable and well-founded information into consideration about past
events, current condition and predictions of future economic status based on the expected credit loss of single and combined financial
evaluation instruments.
The Company divides the financial instruments into different portfolios based on the common credit risk characteristics. See
accounting policies of relevant financial instruments for single evaluation standards and combined credit risk characteristics.
The Company determines the expected credit losses of financial instruments under the following methods: For financial assets, the
credit loss is calculated as the present value of the difference between the contractual cash flows to be collected by the Company and
cash flows that are expected to be collected.
For the financial guarantee contract, the credit loss is the expected payment made to the contract holder by the Company to
reimburse the contract holder against the credit losses incurred by the contract holder, deducted by the present value of the differences
between the amounts expected to be received by the Company from the contract holder, debtor or any other party.
For financial assets which have been credit-impaired on the balance sheet date but are not purchased or underlying with credit
impairment, the credit loss is calculated as the difference between the book balance of such financial assets and present value of
anticipated future cash flows discounted at the original effective interest rate.
11. Notes receivable
The Company, based on the acceptor credit risk of the notes receivable as common risk characteristics, divides the notes
receivable into different combinations and determines the accounting estimation policy of expected credit loss.
Classification of combination Basis for determining combination Provision method
The Company believed that there was no significant credit risk
Banker’s acceptances The acceptor is a banking financial in the bank’s acceptance held by the Company and there will be
combined institution. no significant loss due to the default of the bank.
The acceptor is a non-bank The Company shall measure the bad-debt provision of
Trade acceptances combined financial institution or enterprise receivable trade acceptance based on the expected credit loss
like a finance company. during the entire duration.
12. Accounts receivable
For the receivables arising from transactions regulated by the Accounting Standards for Business Enterprises No. 14 Revenue
Standards (whether or not containing significant financing components) and the lease receivables regulated by the Accounting
Standards for Business Enterprises No. 21 Leasing, the Company takes the simplified measurement method to measure its loss
provisions based on the amount of expected credit losses during the entire duration.
For accounts receivable, the Company assesses whether the credit risk increases significantly on the basis of a single financial
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instrument or a combination of financial instruments. The Company singly evaluates the credit risk of receivables with significantly
different credit risks and the following characteristics: receivables in dispute with the other party or involved in litigation and
arbitration; accounts receivable that there are obvious indications showing that the debtor is likely to be unable to fulfill the
repayment obligation. The Company is unable to obtain sufficient evidence of significant increase in credit risk at the level of single
financial instrument at reasonable cost, but it is feasible to assess whether the credit risk increases significantly on the basis of the
combination of financial instruments. When the assessment is performed on the combination of financial instruments, the Company
can classify the financial instruments based on the common credit risk characteristics.
The Company classifies the accounts receivable into the following combinations based on their credit risk characteristics:
Classification of combination Basis for determining combination Provision method
Credit loss that accrues accounts Accounts receivable with the same aging have
receivable by aging analysis method similar credit risk characteristics Expected rates of credit loss
Related parties within the Funds of subsidiaries within the consolidation No expected credit loss under normal
consolidation scope scope of controlling shareholders circumstances
If there is objective evidence showing that the credit impairment of certain account receivable has incurred, the Company shall
singly withdraw the bad debt reserve of accounts receivable and confirm the expected credit loss.
For accounts receivable with credit loss accrued from receivables by aging analysis method, based on the actual credit loss of
previous years and considering the forward-looking information of this year, the accounting estimate policies of the Company for
measuring the expected credit loss are as follows:
Aging Expected rates of credit loss
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 calculates the expected credit loss of receivables on the balance sheet date. If the expected credit loss is greater
than the carrying amount of the current receivables impairment provision, the Company will recognize the difference as impairment
loss of receivables, debit "credit impairment loss" and credit "bad debt provision". Otherwise, the Company will recognize the
difference as impairment gains and make opposite accounting records.
For the actual credit losses of the Company, if the relevant receivables are determined to be unrecoverable and are approved to be
written off, the Company shall debit "bad debt provision" and credit "accounts receivable" according to the approved write-off amount.
If the write-off amount is greater than the accrued loss provisions, the "credit impairment loss" will be debited according to the
difference.
13. Receivables financing
Where the following conditions are reached at the same time, the financial assets can be classified as those measured at fair value
and its change and included in other comprehensive income: the Company adopts the business management mode of the financial assets
for the purpose of collecting contractual cash flow and selling the financial assets; as stipulated in contract terms of the financial assets,
the cash flows generated on special dates are solely the payments to principals and interests on the principal amount outstanding.
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In the case where the Company transfers the receivables held in the form of discount or endorsement and such business is more
frequent and involves a large amount of money, its business management model is, in essence, to collect and sell contract cash flow,
and according to the relevant provisions of financial instrument standards, the receivables are classified into financial assets with
changes measured at fair value and included in other comprehensive income.
14. Other receivables
Determination and accounting method for expected credit loss of other receivables
The Company divides the process of credit impairment of other receivables into three stages and adopts different accounting
treatment methods for the impairment of other receivables in different stages:
Credit risk has not increased significantly since initial recognition (Stage I)
For the financial instruments in this stage, the Company shall measure the loss provisions based on the expected credit loss in the
next 12 months.
The Company classifies other receivables based on aging as a credit risk characteristic and measure them on the basis of
combination, which is equivalent to the expected credit loss in the next 12 months.
Credit risk has increased significantly since initial recognition but has not been impaired (Stage II)
For the financial instruments in this stage, the Company shall measure the loss provisions based on the expected credit loss
during the entire duration.
Credit impairment after initial recognition (Stage III)
For the financial instruments in this stage, the Company shall measure the loss provisions based on the expected credit loss
during the entire duration.
15. Inventories
Inventories of the Company mainly include low-value consumables, raw materials, goods in-process, merchandise inventory and
goods shipped in transit.
The inventories are managed based on perpetual inventory system, and valued at actual cost on acquisition. Low-value
consumables and packaging materials are amortized using one-off amortization method.
At the end of accounting period, inventory is valuated at cost or net realizable value, whichever is lower; provision for
inventory depreciation reserves is made for the part of the cost uncollectible of inventory due to damage, fully or partially out of
date or selling price lower than the cost, etc. Inventory revaluation reserves of merchandise inventories and raw materials are
generally accrued as the excess of the higher cost of individual inventory over its net realizable value. For raw and auxiliary
materials of larger amount and lower unit price, inventory revaluation reserves shall be accrued based on the category.
Net realizable value of merchandise inventories, goods in-process or held-for-sale materials is determined by their estimated
selling price deducted by estimated selling expenses and related taxes; net realizable value for materials held for production is
determined by the estimated selling price of finished goods deducted by the estimated cost to completion, estimated selling expenses
and the related taxes.
16. Contract assets
Recognition method and standard of contract asset
Contract asset refers to the rights of the Company to receive consideration for goods transferred to the customer, which depend on
other factors except for the lapse of time. For example, where the Company sells two clearly distinguished commodities to the customer
and has the right to collect the payment because one commodity is delivered but the payment relies on the delivery of the other
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commodity, the Company will treat the collection rights as the contract assets.
Determination and accounting method for expected credit loss of contract assets
For the determination method for expected credit loss of contract assets, please refer to relevant contents in 10. Financial asset and
liabilities; 11. Notes receivable and 12. Receivables.
The Company calculates the expected credit loss of contract assets on the balance sheet date. If the expected credit loss is greater
than the carrying amount of the current impairment provision of contract assets, the Company will recognize the difference as
impairment loss, debit "asset impairment loss" and credit "contract asset impairment provision". Otherwise, the Company will recognize
the difference as impairment gains and make opposite accounting records.
For the actual credit losses of the Company, if the relevant contract assets are determined to be unrecoverable and are
approved to be written off, the Company shall debit "contract asset impairment provision" and credit "contract assets" according to
the approved write-off amount. If the write-off amount is greater than the accrued loss provisions, the "asset impairment loss" will
be debited according to the difference.
17. Contract costs
Method for determining amount of assets related to contract costs
The Company’s assets related to the contract costs comprise the contract performance cost and the contract acquisition cost.
The contract performance cost, namely the cost incurred to perform the contract by the Company, not covered by other
accounting standards for business enterprises, shall be deemed as one asset if it meets the conditions below: the cost is directly
related to one existing contract or one contract expected to be acquired and covers direct labor cost, direct material cost,
manufacturing cost (or similar cost), the cost clearly specified to be borne by the customer and other costs incurred by the contract
only; the cost increases the resources available to the Company to fulfill performance duties in the future; the cost is expected to be
recovered.
The contract acquisition cost refers to the incremental cost incurred by the Company for the purpose of securing a contract,
which will be recognized in the form of contract acquisition cost as an asset if it is expected to be recovered; if the amortization
period of the assets does not exceed one year, such cost shall be included in current profit or loss. Incremental cost refers to the cost
which will not incur unless a contract is secured by the Company (e.g., sales commission, etc.). Other costs (such as the travel
expense, whether or not the contract will be acquired, except the incremental cost which can be recovered as expected) incurred the
Company for purpose of acquiring the contract shall be included in the current profit or loss at the time of occurrence, unless those
clearly specified to be borne by the customer.
Asset amortization related to contract costs
The Company’s assets related to contract costs are amortized on the same basis as revenue recognition of goods related to the asset and
included in the current profits or losses.
Asset impairment related to contract cost
When the Company recognizes the impairment loss related to contract costs, the Company shall firstly recognize the
impairment loss of other assets which are recognized as per other account standards for business enterprises and are related to the
contract. Then, if the book value is higher than the difference between the remaining consideration expected to be received for the
transfer of the commodity associated with the asset and the estimated costs to be incurred for the transfer of relevant commodity,
impairment provision will be made for the excess portion and recognized as asset impairment loss.
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If the factors causing the impairment of prior period change and make the previous difference between the above-mentioned
items higher than the book value of the asset, the withdrew asset impairment provision shall be reversed and recorded in the current
profits or losses, although the book value of asset after reversion shall not exceed the book value of the asset at the reversion date
under the condition of not withdrawing the impairment provision.
18. Assets held for sales
None
19. Debt investment
None
20. Other debt investment
None
21. Long-term receivables
None
22. Long-term equity investment
Long-term equity investment of the Company mainly includes the investment to the subsidiaries, associated enterprises and joint
ventures. The Company follows the basis to judge the joint control: all the participants or group of participants collectively control the
arrangements, and the policies for activities related to such arrangement must be agreed by all such participants.
In general, it constitutes significant influence on an investee if the Company directly or indirectly, through a subsidiary, controls
20% (inclusive) or more (less than 50%) of voting shares of the investee. Where the Company controls less than 20% voting shares of
the investee directly or indirectly through a subsidiary, significant effects on the investee shall be judged based on the facts and
circumstances where the Company appoints representative to the board of directors or similar authority of the investee, participates
the development of financial and operating policies of the investee, conducts important trading with the investee, dispatches
management personnel to the investee or provides key technical data to the investee.
The one forming control over the investee is the subsidiary of the Company. For the long-term equity investment acquired
through business combination under the same control, the share of the combined party in the book value of net assets presented in
consolidated financial statements of ultimate controlling party acquired at the date of combination is recognized as initial investment
cost of long-term equity investment. The book value of net assets for the combined party is negative on the combining date, and the
long-term equity investment cost is determined as zero.
In case the equity of the investee under the same control is obtained through multiple deals step by step to finally form business
combination, for package deals, the Company shall account each deal as a deal to obtain the control. If it is not a package deal, the
share of the book value of combined party’s net assets presented in consolidated financial statements of ultimate controlling party
acquired at the date of combination is recognized as initial investment cost of long-term equity investment. The difference between
initial investment cost and the sum of the book value of long-term equity investment before the combination is realized and the book
value of consideration additionally paid to further acquire shares on the date of combination is adjusted against the capital surplus; if
the capital reserve is not sufficient to be offset, the remaining balance is adjusted against retained earnings.
For long-term equity investments acquired through business combinations not under common control, the combined cost is used
as the initial investment cost.
In case the equity of the investee under the same control is obtained through multiple deals step by step to finally form business
combination, for package deals, the Company shall account each deal as a deal to obtain the control. If it is not a package deal, initial
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investment cost accounted using cost method will be the sum of the book value of original equity investment and new investment cost.
For equity investments held before the date of acquisition where equity method is adopted, relevant other comprehensive income
accounted originally by equity method shall not be adjusted for the time being, accounting treatment should be applied to the
investment on the same basis as those adopted by the invested entity for direct disposal of related assets or liabilities. For equity held
before the date of acquisition and accounted at fair value in the available-for-sale financial assets, the accumulated change in fair
value which is originally included in other comprehensive income shall be transferred to the investment profit or loss for the current
period on the combining date.
Apart from the long-term equity investments acquired through business combination mentioned above, the long-term equity
investments acquired by cash payment is recorded as the cost of investment based on the purchase price actually paid. For long-term
equity investments obtained by issuing equity securities, the fair value of the equity securities issued is recorded as the investment
cost. For long-term equity investments obtained by exchange of non-monetary assets, the initial investment cost shall be determined in
accordance with relevant provisions in the Accounting Standards for Business Enterprises No. 7 Exchange of Non-Monetary Assets.
For long-term equity investments obtained by debt restructuring, the initial investment cost shall be determined in accordance with
the relevant provisions of the Accounting Standards for Business Enterprises No. 12 Debt Restructuring. Investment in subsidiaries by
the Company shall be calculated by cost method, while investment in joint ventures and associates by the Company shall be calculated
by equity method.
For long-term equity investment calculated by cost method, the cost of long-term equity investment shall be adjusted when the
investment is added or recovered. The cash dividends or profits declared to be distributed by the investee shall be recognized as the
current investment income.
For long-term equity investment calculated by equity method in subsequent measurement, the book value of the long-term
equity investment shall be increased or decreased accordingly with the changes in owner’s equity of the investee. The shares of the
net profits & losses of the investee attributable to the Company shall be recognized based on the fair value of all identifiable net assets
of the investee upon acquisition of the investment in accordance with the accounting policies and accounting period of the Company,
after deducting the parts of the profits & losses arising from internal transactions between the associates and joint ventures attributable
to the Company calculated on the basis of shareholding ratio and adjusting the net profits of the investee.
When disposing the long-term equity investment, the balance between the book value and the acquired price actually shall be
included in the current profit and loss. As for long-term equity investments calculated by the equity method, when other changes in
owners’ equity other than net gain or loss of the investee are recorded in owners’ equity, the amount initially recorded in owners’
equity is proportionally transferred into current investment income.
If all transactions from step-by-step disposal of equity to loss of controlling interest do not belong to package transaction, the
Company will conduct accounting treatment for each transaction. In case of package transaction, all transactions shall be calculated as
one transaction of disposing subsidiaries and losing control power for accounting treatment. However, the difference between disposal
cost of each transaction and book value of long-term equity investment corresponding to equity disposed before losing control power
shall be recognized as other comprehensive income and then shall be transferred into current profits and losses of losing control
power upon such loss.
23. Investment real estate
Leased houses and buildings are included into the investment real estates of the Company. Measurement is carried out by cost model.
The investment real estates of the Company are depreciated or amortized by the composite life method. The estimated service life, net
residual value ratio and annual depreciation (amortization) rate of the investment real estate are as follows:
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Type Depreciation Estimated residual Annual
Houses and buildings period (year) value ratio (%) depreciation
rate (%)
24. Fixed assets
(1) Recognition conditions
Fixed assets of the Company refer to tangible assets with service life over one year, which are held for producing goods,
rendering labor services, lease (exclusive of leased houses and buildings) or operation and management.
Fixed assets are recognized when the economic benefits related thereto are likely to flow into the Company and their costs can be
measured reliably. Fixed assets include houses and buildings, machine and equipment, transportation equipment and other equipment,
and the actual cost at the time of acquisition is taken as the entry value. Among them, the cost of purchased fixed assets includes the
purchase price, import duties and other related taxes, as well as other expenditures that can be directly attributed to the fixed assets
before the fixed assets reach the predetermined serviceable state; the cost of the self-constructed fixed assets consists of necessary
expenses incurred before the constructed assets are ready for the intended use; the fixed assets invested by investors shall be accounted
for at the value agreed in the investment contract or agreement, or at the fair value if the value agreed in the investment contract or
agreement is unfair; for fixed assets obtained by financing lease, the lower of the fair value of rented assets and the present value of
the minimum lease payment on the lease start date shall be recorded as the entry value.
(2) Depreciation method
Type Depreciation Depreciation Residual value rate Annual
method period depreciation rate
Houses and buildings Straight-line method 20 years 5.00% 4.75%
Machine and equipment Straight-line method 10 years 5.00% 9.50%
Transportation Straight-line method 5 years 5.00% 19.00%
equipment Straight-line method 5 years 5.00% 19.00%
Processing of subsequent expenditure of fixed assets: The subsequent expenditure of fixed assets mainly includes
renovation/modification expenditure and repair expenditure. When the relevant economic benefits are likely to flow in and the
costs can be measured in a reliable manner, they shall be included in the cost of fixed assets. For the replaced part, the book value
shall be derecognized. All the other subsequent expenditures are recognized in profit or loss for the current period in which they
are incurred.
The Company will recheck the estimated service life, the estimated net residual value and the depreciation method of the
fixed assets on each balance sheet date.
Changes, if any, are regarded as the accounting estimate changes. A fixed asset is derecognized when it is disposed of or no
economic benefit is expected from the use or disposal of the asset. The amount of proceeds on sale and transfer of a fixed asset as
well as disposal of a scrapped or damaged fixed asset less its carrying amount and related taxes, is recognized in profit and loss for
the current period.
25. Construction in process
Construction in progress is measured at the actual cost. The self-operating works are measured according to the direct
material, direct wage, direct construction cost, etc.; the outsourced works are measured according to the project price payable; the
project cost of the equipment installation works is determined according to the value of installed equipment, installation cost,
commissioning cost and other expenditures incurred. The cost of construction in process shall also include borrowing costs that
should be capitalized.
The fixed assets constructed by the Company shall be transferred into fixed assets at the estimated value based on project
budget, construction cost and actual project cost from the date when fixed assets get ready for intended use and depreciation of
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such assets will be accrued in next month. Upon completion of the final accounts formalities, the original value difference of the
fixed assets will be adjusted.
26. Borrowing costs
Recognition principle of borrowing cost capitalization: The borrowing costs incurred by the Company that can be directly
attributable to the acquisition and construction or production of qualifying assets, will be capitalized and included in the relevant asset
cost. Other borrowing costs are recognized as expenses based on the amount incurred and included in the current profit and loss.
Qualifying assets are defined as assets that require a substantial amount of time (usually more than one year) for construction or
production activities before the asset is ready for its intended use or sale. These include fixed assets, intangible assets and inventory.
Period of capitalizing the borrowing costs: The Company will start to capitalize the borrowing costs related to the qualifying assets
when the asset expenditure has been incurred, the borrowing costs have been incurred, and the acquisition, construction or production
activities necessary to prepare assets for their intended use or sale are in progress. Where the acquisition, construction or production of a
qualifying asset are interrupted abnormally and the interruption period lasts for more than 3 months, the capitalization of the borrowing
costs shall be suspended. Capitalization of borrowing costs shall cease once the acquisition, construction or production necessary to
prepare the qualifying asset for its intended use or sale are complete.
Method for calculating the amount of borrowing costs to capitalize: If borrowing funds are used specifically for acquiring,
constructing or producing qualifying assets, the amount of interest eligible for capitalization by the Company will be the actual interest
costs incurred during the specific borrowing period minus the interest income obtained by depositing or temporarily investing unspent
borrowed funds. Where a general borrowing is used for the acquisition and construction or production of qualifying assets, the
Company shall calculate and determine the to-be-capitalized amount of interests on the general borrowing by multiplying the weighted
average of the accumulative asset expenditure minus the asset expenditure of the specific borrowing by the weighted average interest
rate of the general borrowing used.
27. Biological assets: none
28. Oil & gas assets: none
29. Right-of-use assets
The right-of-use asset refers to the right of the Company to use the leased assets as a lessee during the lease term.
(1) Initial measurement
On the commencement date of the lease term, the Company carries out initial measurement to the use-of-right asset. The cost
comprises the following four items: ① initial measurement amount of lease liabilities; ② the amount of lease payment made on or
before commencement date of lease term, net of relevant amount of used lease incentives (if any); ③ the initial direct cost incurred (i.e.,
the incremental cost incurred by reaching the lease agreement); ④ costs expected to be incurred to disassemble and remove the leased
assets, restore the site where the leased assets are located or restore the leased assets to the conditions as agreed under the terms of the
lease, excluding costs incurred to produce the inventory.
(2) Subsequent measurement
On the commencement date of the lease term, the Company carries out subsequent measurement to the use-of-right assets in the
cost mode, that is, measuring the use-of-right assets by deducting the accrued depreciation amount and accrued impairment loss from
the cost. Where the Company remeasures the lease liabilities according to relevant provisions of the lease criterion, the book value of
the use-of-right assets shall be adjusted correspondingly.
Depreciation of right-of-use assets
On the commencement date of the lease term, the provision for depreciation shall be made by the Company to the right-of-use
assets. Generally, the depreciation amount of the use-of-right assets is accrued from the month when the lease term starts. The
accrued depreciation amount shall be recognized as the cost of relevant assets or current profit or loss according to the purpose of
the right-of-use assets.
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When determining the depreciation method of right-of-use asset, the Company shall make decisions according to the
expected consumption method of the economic benefits related to the right-of-use asset and accrue depreciation to the right-of-use
asset with the linear method.
When determining the depreciation years of the right-of-use assets, the Company shall follow the principles below: If the
Company can reasonably determine that the ownership of the leased assets is acquired at the expiration of the lease term,
depreciation shall be accrued within the remaining service life of the leased assets; if it is not reasonably certain that the ownership
of the leased assets can be acquired at the expiration of the lease term, the leased assets shall be depreciated over the shorter of the
lease term and the remaining service life of the leased assets.
Impairment of right-of-use assets
In case of impairment of use-of-right assets, the Company shall make subsequent depreciation as per the book value of use-of-
right assets after the impairment loss is deducted.
30. Intangible assets
(1) Valuation method, service life and impairment test
The intangible assets of the Company mainly include land use rights, software, trademarks and patents. As for intangible
assets that are purchased, the actual cost is composed of the actual price paid and other relevant expenditures. For the intangible
assets that are invested by investors, the actual cost is determined by the agreed value in the investment contract or agreement, but
if the agreed value is not fair, the fair value will be taken as the actual cost. Intangible assets are amortized using the composite life
method, and the classifications and amortization periods of the Company’s intangible assets are as follows:
Type Amortization year
Land use right 50 years
Patents 10 years
Software 3--5 years
Trademark or domain name 10 years
The Company’s land use rights are amortized evenly according to the lease term, starting from the date of transfer. The
Company’s patent rights, non-patented technologies, special software use rights and other intangible assets are amortized evenly
by stages according to whichever period is the shortest: the asset’s estimated service life, the beneficial period stipulated in the
contract, or the period of legal validity. The amount of amortization is included into the current profits and losses or included into
the relevant asset cost according to the beneficiaries.
At the end of each year, the Company shall review, and adjust in case of changes, the estimated service life and amortization
methods used for intangible assets with limited service life; in each accounting period, the Company shall review the estimated
service life of intangible assets whose service life is uncertain. Where there is evidence showing that the service life of these
intangible assets is limited, the Company shall estimate the service life thereof and amortize these intangible assets during the
estimated service life.
(2) Accounting policies for internal R&D expenditures
The internal R&D expenditures of the Company can be divided into expenditures made at the research stage and those made
at the development stage, depending on the nature of the expenditure and the extent of uncertainty on whether the R&D activities
will finally form intangible assets.
For internally-generated intangible assets, expenditures at the research stage are included in the current profits and losses, and
expenditures at the development stage are recognized as asset when the following conditions are met:
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It is technically feasible to complete the intangible assets so that they can be used or sold.
There is an intention to complete and use or sell the intangible assets.
There is a potential market for the products manufactured by applying the intangible assets or there is a potential market for the intangible assets
themselves.
There is sufficient support in terms of technological, financial and other resources in order to complete the development of the intangible assets, and
there is the capability to use or sell the intangible asset.
The expenditures made on the intangible assets during the development stage can be measured reliably.
Expenditures made in the development stage that fail to meet the above conditions shall be included in the current profits and
losses when incurred. The development expenditures previously included in the profit and loss statement will not be recognized as
assets in subsequent periods. The expenditures incurred and capitalized at the development stage are recorded as development
expenditures on the balance sheet and will be carried over as the intangible asset on the date when the project is ready for its intended
use.
If the expenditures made at the research and development stages cannot be distinguished, all the R&D expenditures incurred will
be fully included in the current profits and losses. The costs of the intangible assets generated by internal development activities only
include the total expenditures incurred from the time when the capitalization conditions are met to the point when the intangible assets
are used for their intended purposes; for expenditures that are already recorded as such in the profit and loss statement before the
capitalization conditions are met during development of the same intangible asset, no adjustments will be made.
31. Impairment of long-term assets
On each balance sheet date, the Company shall audit the projects of subsidiaries, joint ventures and associated companies,
including long-term equity investments, fixed assets, projects under construction, and intangible assets with finite service life. If any
of the signs listed below are identified, this is an indication that the asset may be impaired and the Company shall conduct an
impairment test. Impairment tests are carried out on goodwill and intangible assets with uncertain service life at the end of each period,
irrespective of whether there is any indication that the assets may be impaired. If there is difficulty in testing the recoverable amount
of a single asset, a test shall be conducted on the asset group which the asset belongs to, or on a combination of asset groups.
After the impairment test, if the book value of the asset exceeds its recoverable amount, the difference shall be recognized as an
impairment loss. Once such an impairment loss has been confirmed, it shall not be reversed in the subsequent accounting period. The
recoverable amount of an asset is the greater of its fair value less the net value of asset disposal and present value of expected future
cash flow.
The following signs may indicate asset impairment:
Current market price of the asset drops substantially, with the drop in price being notably higher than the expected drop over time
or due to the asset’s normal use.
Significant changes occur in the current period or will occur in the recent future in terms of the economic, technical or legal
environment of the operation of an enterprise, and the asset market which have or will have negative impacts on the enterprise.
The market interest rate or other market investment return rates have risen in the current period, affecting the enterprise’s
discount rate for calculating the asset’s present value of expected future cash flow, and leading to a substantial decrease in
recoverable amounts of the assets.
There is any amount of evidence to prove the asset has been out of date or the physical asset has been damaged.
The asset has been or will be left unused, terminated for use or disposed of ahead of schedule.
There is evidence from the enterprise’s internal reports proving that the economic performance of the asset has been lower or
will be lower than expected. For example, the net cash flow generated by the assets or operating profits (or losses) realized is
much lower (or higher) than the expected amounts;
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Other signs indicating that the asset may have been impaired.
32. Long-term deferred expenses
The long-term deferred expenses of the Company refer to the expenses that have been paid, but shall be borne in the current
and future periods with an amortization period of more than one year. Moreover, such expenses shall be subject to average
amortization within the benefit period. If long-term deferred expense items cannot benefit the future accounting periods, the
amortized value of such items yet to be amortized shall be fully transferred into the current profits and losses.
33. Contract liabilities
Contract liabilities reflect the obligations of the Company to transfer goods to the client for which consideration is received or
receivable from the client. Before the Company transfers goods to the client, and the client has paid the consideration in the contract
or the Company has obtained the right of unconditionally collecting the consideration, the contract liabilities are recognized
according to the received or receivable amount either at the time of actual payment by the client or when the payment is
due―whichever is earlier.
34. Employee remuneration
(1) Accounting treatment method of short-term remuneration
Short-term remunerations mainly include wages, bonuses, allowances and subsidies, employee welfare, housing funds, labor
union funds, employee education funds, medical insurance premiums, industrial injury insurance premiums, and maternity insurance
premiums. In the accounting period during which the employee has rendered service, the actual short-term remuneration incurred is
recognized as a liability and recorded in the current profits and losses or related asset costs based on the beneficiary.
(2) Accounting treatment method of post-employment benefits
The post-employment benefits mainly consist of basic endowment insurance, unemployment insurance, enterprise and annuity
payments, which are classified into defined contribution plans according to the risks and obligations undertaken by the Company.
Moreover, the contributions paid into a separate entity in exchange for the employee’s services during the accounting periods at the
balance sheet date are recognized as a liability, and recorded in current profits and losses or relevant asset costs based on the
beneficiary.
(3) Accounting treatment method of dismissal benefits
Dismissal benefits are required in instances when the Company terminates labor relationships with a certain employee prior to
the maturity of their labor contract. The Company shall recognize the employee remuneration liabilities incurred from termination
benefits and include them into the current profits and losses. This occurs either when the Company cannot unilaterally withdraw the
termination benefits provided by the plan on the termination of the labor relationship or dismissal proposal, or when the Company
recognizes the costs or expenses related to restructuring the payment of termination benefits-whichever occurs earlier. The
compensations paid exceeding one year will be discounted then included in the current profits or losses.
(4) Accounting treatment method of other long-term employee benefits
Other long-term benefits mainly include long-term incentive plans and long-term benefits. The Company conducts accounting
treatment according to relevant provisions of the defined contribution plans.
35. Lease liabilities
(1) Initial measurement
The Company shall initially measure the lease liabilities according to the present value of the lease payment unpaid on the
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commencement date of the lease term.
1) Lease payment
The lease payment refers to the payment made by the Company to the leaser as for the right of use the leased assets during the
lease term, including: ① fixed payment and practical fixed payment, with relevant lease incentive (if any) deducted; ② variable
lease payments that are based on an index or rate, which shall be determined at the time of initial measurement based on the index or
rate on the commencement date of the lease term; ③ the exercise price of a purchase option if the Company is reasonably certain to
exercise that option; ④the amount payable for exercising the option to terminate the lease if the Company intends to exercise the
option to terminate the lease during the lease term; ⑤ expected payable amount based on secured residual value provided by the
Company.
2) Discount rate
In calculating the present value of the lease payments, the Company adopts the interest rate implicit in lease as the discount
rate. This interest rate is the interest rate that makes the sum of the present value of the lessor's lease income and the present value
of the unsecured residual value equal to the sum of the fair value of the leased assets and the lessor's initial direct costs. If the
Company is unable to determine the interest rate implicit in lease, it will adopt the incremental borrowing rate as the discount rate.
The incremental loan interest rate is defined as the interest rate that the Company would have to pay to borrow, for a term similar to
the duration of the lease and with similar security, the funds necessary to obtain an asset of similar value to the asset by right of use
in a similar economic environment. The interest rate is related to the following items: ① the Company's own conditions, namely,
the solvency and credit status of the Group; ② the term of the "loan", namely, the lease term; ③ the amount of "borrowed" funds,
namely, the amount of the lease liability; ④ the "mortgage condition", namely, the nature and quality of the underlying asset; and
⑤ the economic environment, including the jurisdiction of the lessee, the invoicing currency and the time of signing the contract.
On the basis of the bank loan interest rate and taking into account the above factors, the Company calculates the incremental
borrowing rate.
(2) Subsequent measurement
When the lease term commences, the Company shall make subsequent measurement for the lease liabilities on the basis of
principles below: ① increase the carrying account of lease liabilities when the interests of lease liabilities are recognized; ② decrease
the carrying account of lease liabilities when the lease payment is made; ③ remeasure the book value of lease liabilities when the lease
payment is changed due to revaluation, lease change or other reasons.
The interest expenses of lease liabilities in each period of the lease term are calculated in accordance with the fixed periodic
interest rate, and are included in the current profit or loss, unless capitalization is required. The periodic interest rate refers to the
discount rate taken by the Company for initial measurement or the revised discount rate taken by the Company when it is necessary to
remeasure the lease liabilities as per the revised discount rate due to lease payment change or lease change.
(3) Remeasurement
When the following circumstances occur after the commencement of the lease term, the Company shall remeasure the lease
liabilities according to the present value of the changed lease payment and adjust the book value of right-to-use assets accordingly. If
the book value of the right-to-use assets has been reduced to zero, but the lease liabilities still need to be further reduced, the Company
shall include the remaining amount in the profits and losses of the current period. ① a change in the practical fixed payment (in this
case, the original discount rate is adopted); ② a change in the amount expected to be payable for the residual value of the guarantee (in
this case, the original discount rate is adopted); ③ a change in the index or ratio used to determine the lease payment (in this case, the
revised discount rate is adopted). ④ a change in the evaluation result of the purchase option (in this case, the revised discount rate is
adopted); ⑤ a change in the evaluation results or actual exercise of the option to renew or terminate the lease (in this case, the revised
discount rate is adopted).
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36. Provisions
When obligations relating to contingencies such as external guarantee, pending litigation or arbitration, product quality
assurance, layoff plans, loss contracts, restructuring obligations, environmental pollution control, commitments, and disposal
obligation of fixed assets also meet the following conditions, the Company recognizes it as a liability: the obligation is currently
being undertaken by the Company; there is a high possibility that the fulfillment of the obligation will result in the outflow of
economic benefits from the enterprise; and the amount of the obligation can be reliably measured.
Provisions are initially measured according to the best estimate of the expenditure required to settle the present obligation,
taking into account factors relating to contingencies such as risks, uncertainties and the time value of money. Where the time value
of money has a significant impact, the best estimate shall be ascertained after discounting the future relevant cash outflow. The
book value of provisions is reviewed at the balance sheet date and adjusted to reflect the current best estimate if there is any change.
For possible obligations arising from past transactions or events whose existence depends on whether one or more uncertain
future events occur; or for present obligations formed by past transactions or events, where the fulfillment of the obligation is not
likely to cause an outflow of economic benefits from the Company, or the amount of the obligation cannot be reliably measured,
the Company will disclose these possible or present obligations as contingent liabilities.
37. Share-based payment
Share-based payment refers to transactions in which equity instruments are granted or liabilities are incurred based on equity
instruments in order to obtain services provided by the employees or other parties. Share-based payments are divided into equity-
settled and cash-settled share-based payments.
Equity-settled share-based payments made in exchange for the service of employees are measured at the fair value on the date at
which the equity instrument is granted to employees. Where the right may only be exercised if the service is completed within the
waiting period, or if specified performance conditions are met, the fair value shall be included in relevant costs or expenses using the
straight-line method and capital reserve shall be increased accordingly, based on the best estimate of the number of vested equity
instruments within the waiting period.
Cash-settled share-based payments shall be measured at the fair value of liabilities, and recognized on the basis of share options
or other equity instruments undertaken by the Company. If excisable immediately after the grant, the fair value of the liabilities
assumed shall be included in the relevant costs or expenses on the grant date, and the liabilities shall be increased accordingly. If it is
necessary to complete the services in the waiting period or achieve the specified performance conditions before the right is excisable,
on each balance sheet date of the waiting period, the services acquired in the current period shall be included in the cost or expense
based on the best estimation of the excisable right, and the liabilities shall be adjusted accordingly according to the fair values of the
liabilities assumed by the Company.
On each balance sheet date and settlement date prior to the settlement of relevant liabilities, the fair value of the liabilities will be
re-measured, with any changes recorded in the profits and losses at the current period.
38. Preferred shares, perpetual bonds and other financial instruments.
39. Income
Accounting policies used for the recognition and measurement of income
Operating revenues of the Company mainly include the income from sales of goods, rendering labor service and transferring right-
of-use assets.
Revenue recognition principle
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The Company recognizes the revenue upon fulfillment of its performance obligations within the contract, that is, when the client
obtains control of the relevant goods or services. Acquisition of control over relevant goods or services means the ability to manage
the use of such goods or the provision of services and to receive almost all economic benefits therefrom.
The Company assesses the contract from the commencement date of the contract and recognizes each individual performance
obligation included by the contract, and determines if each individual performance obligation will be fulfilled during a certain period
or at a certain time point.
The performance obligations are to be fulfilled within a specified period once the Company meets one of the following conditions;
otherwise, the Company is to fulfill the performance obligations at a specified time point:
1) The client obtains and consumes the economic benefits while the Company fulfills the performance obligations.
2) The client can control goods or services still under construction while the Company is still in the process of fulfilling the
performance obligations.
3) The goods generated while the Company is in the process of performing the contract are indispensable, and the Company
has the right to collect partial payments for the cumulative performance obligations that have been fulfilled so far within the
contract period.
If the performance obligations are performed within the specified period, the Company will recognize the revenue within this
period in accordance with the progress of the contract’s performance. If the performance progress cannot be reasonably determined
and the costs incurred by the Company are expected to be compensated, the revenue will be ascertained according to the costs
incurred, until the performance progress can be reasonably determined.
If the performance obligations are performed at the specified time point, the Company will recognize the revenue at the time when
the client obtains control over the relevant goods or services. In judging whether the client has obtained control over goods or services,
the Company shall consider the following signs:
1) The Company has the current right to collect payment for the goods or services.
2) The Company has transferred the legal ownership of the goods to the client.
3) The Company has transferred physical possession of the goods to the client.
4) The Company has transferred the main risks and rewards of ownership of the goods to the client.
5) The customer has accepted the goods or services, etc.
The Company lists the right to receive considerations for transfer of goods or services to the customer as a contract asset, for
which the impairment will be withdrawn on the basis of expected credit loss. The right of the Company to unconditionally receive
considerations from the customer is listed as receivables. The Company presents the obligation to transfer goods or services to the
customer for considerations received or receivable from the customer as a contract liability.
Revenue measurement principle
1) If there are two or more performance obligations in the contract, the Company will apportion the transaction price to each single
performance obligation according to the relative proportion of the separate selling price of the goods or services promised by the single
performance obligation at the beginning of the contract, and the revenue shall be measured according to the transaction price
apportioned to each single performance obligation.
2) The transaction price refers to the amount of consideration that the Company expects to collect as a result of the transfer of
goods or services to the client, excluding the amount collected by third parties. The transaction price recognized by the Company shall
not exceed the amount of the recognized accumulative revenue which is not likely to significantly turn back when relevant uncertainty
is eliminated. The expected amount to be returned to the client will be listed as a liability and not be included in the transaction price.
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3) If there is significant financing in the contract, the Company shall determine the transaction price according to the amount
payable in cash when the client obtains control over the goods or services. The difference between the transaction price and the contract
consideration shall be amortized by the effective interest method during the contract period. On the contract commencement date, if the
Company estimates that the time between the client’s acquisition of control over goods or services and the payment of the price by the
client will not exceed one year, the significant financing in the contract shall not be considered.
Specific method for revenue recognition
1) Revenue recognized by time point
Selling electric appliances, fittings and materials by the Company is the performance obligation at a time point.
Revenue recognition conditions for goods made for domestic market: The Company has delivered the goods to the customer
according to the contract terms and the customer has received the product; the payment has been collected or the receipt voucher has
been provided and relevant economic profits might flow into the Company; main risks and remuneration as for the ownership of the
goods have been transferred; and legal ownership and control right of the goods have been transferred.
Revenue recognition conditions for exported commodity: The Company has declared the product to the customs and the product
has been delivered according to the contract terms; the bill of lading has been obtained, the payment has been collected or the receipt
voucher has been provided and relevant economic profits might flow into the Company; main risks and remuneration as for the
ownership of the commodity have been transferred; and legal ownership and control right of the commodity have been transferred.
2) Revenue recognized by performance progress
The technical service revenue of the Company and the business contract between the operating lease and the customer are the
performance obligations to be performed within a period, for which the revenue shall be recognized according to the performance
progress.
Differences in accounting policies for revenue recognition due to different operating models for the same type of business
40. Government grants
The government grants of the Company include fiscal appropriation. Government grants relating to assets refer to government
grants obtained by the Company for purchasing and acquiring long-term assets or forming long-term assets by other ways. The
income-related government grants refer to those other than asset-related grants. In case the purpose of a grant is not expressly
stipulated in the government document, the Company will categorize the grant according to these above principles. If it is difficult
to categorize the grant, it will be categorized as the income-related government grant.
If a government grant is a monetary asset, it will be measured at the amount received; for the grant appropriated according to the
fixed quota or for the grant where there is concrete evidence showing that the Company is qualified to receive governmental financial
support and will be able to receive the support by the end of the accounting period, the grant will be measured at the receivable; if the
government grant is a non-monetary asset, it will be measured at the fair value, or measured at its nominal amount (RMB 1) if the fair
value cannot be obtained reliably.
The government grants relating to assets are recognized as deferred income, and the government subsidies relating to assets
recognized as deferred income are included into the current losses and profits according to the average distribution method within
relevant asset service life.
If the relevant asset has been sold, transferred, retired or damaged before the end of the service life, the balance of the relevant
deferred income that has not been allocated will be transferred into the current profit and loss of asset disposal.
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Government grants relating to income that compensate future costs, expenses or losses are recognized as deferred income, and
recognized in profit or loss in reporting the related costs, expenses or losses. The government grants relating to the ordinary
activities are included in other income or deducted against relevant costs and expenses according to the nature of the accounting
event, otherwise, they are included in non-operating income. Government grants unrelated to daily activities will be included in
non-operating income.
If the Company obtains the subsidized loan as a result of preferential financial policy, there will be two situations: the Ministry of
Finance appropriates the interest subsidy to the lending bank, or the Ministry of Finance directly appropriates the subsidy to the
Company, and the accounting treatment for each of these situations is as follows:
Where the Ministry of Finance appropriates the subsidy to the lending bank, and the bank provides the Company with the loan at a
discounted interest rate, the Company will use the actual amount of loan received as the book value of the loan, and calculate the
relevant borrowing costs based on the principal of the loan and the interest rate.
Where the Ministry of Finance directly appropriate the interest subsidy to the Company, the Company will deduct the
corresponding interest subsidy against the borrowing costs. Where the governmental grants recognized by the Company need to be
returned, the accounting treatment will be done as follows in the period they are returned:
1) Where the book value of relevant assets is deducted at the time of the initial recognition, the book value of assets will be
adjusted.
2) Where there is any deferred income concerned, the book balance of the deferred income will be deducted, but the excessive part
will be included in the current profit or loss.
3) For other circumstances, the government grants will be directly included in the current profit or loss.
41. Deferred income tax assets/deferred income tax liabilities
Deferred income tax assets and deferred income tax liabilities of the Company are calculated and recognized based on the
differences (temporary differences) between the tax base and the book value of the assets or liabilities. For the deductible loss and tax
credits that can be deducted annually in the subsequent years according to tax laws, the corresponding deferred income tax assets are
recognized. Where the temporary differences arise from the initial recognition of goodwill, the corresponding deferred income tax
liabilities are not recognized. No deferred tax asset or deferred tax liability is recognized where the temporary differences arising from
the initial recognition of assets or liabilities in a transaction that is not a business combination affect neither accounting profit nor
taxable profit (or deductible loss). On the balance sheet date, the deferred income tax asset and liability are measured at the applicable
tax rates during the period when the asset is realized or the liability is settled as expected.
The Company recognizes the deferred income tax asset to the extent that it is probable that the taxable income will be available
against which the deductible temporary differences, deductible losses and tax credits can be deducted.
42. Lease
(1) Accounting method for operating lease
(1) Identification of lease
Lease refers to that the leaser transfers the right to use the asset to the lessee within a certain period to obtain consideration
contracts. On the commencement date of the contract, the Company assesses whether the contract serves as the lease or includes the
lease. If one party to the contract transfers the right to control one or more identified assets during a certain period in exchange for
consideration, such contract is or includes lease. To determine whether the contract has transferred the right to control the use of the
identified assets in a certain period of time, the Company assesses whether the customer in the contract is entitled to receive almost all
the economic benefits arising from the use of the identified assets during the use period and is entitled to manage the use of the
identified assets during the use period.
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If a number of separate leases are contained in one contract, the Company will split the contract and adopt accounting methods to
each lease on an individual basis. If a contract includes both lease and non-lease components, the Company will separate the lease from
the non-lease component before accounting treatment.
(2) The Company serves as the lessee
1) Lease recognition
At the commencement of the lease term, the right-of-use assets and lease liabilities shall be recognized for the lease by the
Company. For the recognition and measurement of right-to-use assets and lease liabilities, please refer to the items of "Right-to-use
assets" and "Lease liabilities" in notes.
2) Lease change
Lease change refers to the change in lease scope, lease consideration and lease term beyond the terms of the original contract,
including increasing or terminating the right to use one or more leased assets and extending or shortening the lease term stipulated in the
contract. The effective date of lease change refers to the date when the Parties reach the agreement on lease change.
When a change happens to the lease and meets the following conditions, the Company will treat it as a separate lease: ① the lease
change expands the lease scope or extends the lease term by increasing one or more use rights to the leased assets; ② the increased
consideration is equivalent to the single price for the expanded portion of lease scope or extended portion of lease term adjusted
according to the contract.
In case where accounting treatment is not made for lease change as a single lease, on the effective date of lease change, the
Company will appropriate the consideration of the changed contract according to the relevant provisions of the lease criteria and
redefine the updated lease term. In addition, the Company will discount the changed lease payment according to the revised discount
rate, so as to remeasure the lease liabilities. In calculating the present value of the lease payment after the change, the Company uses the
interest rate implicit in lease for the remaining lease term as the discount rate. if the interest rate implicit in lease for the remaining lease
term cannot be determined, the incremental borrowing interest rate of the lessee on the effective date of lease change shall be used as
the discount rate by the Company. With regard to the impact of the above adjustment of lease liabilities, the Company adopts
accounting methods in the following situations: ① In the event that the lease scope is narrowed down or the lease term is shortened as a
result of the lease change, the lessee shall reduce the book value of the right-of-use assets, and the relevant gains or losses from the
partial or complete termination of the lease shall be included into the current loss and profit. ② For the lease liabilities remeasured due
to other lease changes, the lessee shall adjust the book value of the right-of-use assets accordingly.
3)Short-term leases and leases of low-value assets
For short-term leases with a lease term of no more than 12 months and low-value asset leases at a low value when individual leased
assets are brand new, the Company chooses not to recognize the right-of-use assets and lease liabilities. Lease payments under short-
term leases and leases of low-value assets are recognized by the Company on a straight-line basis or by other systematic and reasonable
methods over the lease term, and included in either the cost of the related asset or the current profit or loss.
(3) The Company serves as the lessor
On the basis that (1) the contract is assessed to be a lease or include a lease, the Company, as the lessor, divides the lease into
financial lease and operating lease at the commencement of the lease.
A lease that transfers in substance almost all the risks and rewards incident to ownership of a leased asset is classified as a financial
lease by the lessor. A lease other than the financial lease is an operating lease.
The Company usually classifies a lease as a financial lease if one or more of the following situations exist: ① the ownership of the
leased asset is transferred to the lessee at the expiration of the lease term; ② the lessee has the right to choose to purchase the leased
asset; the established purchase price is expected to be much lower than the fair value of the leased asset at the time of the expected
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exercise of the option, and hence it can be reasonably determined that the lessee will exercise this right of choice on the inception of
lease; ③ the lease term accounts for a substantial proportion (no less than 75%) of the service life of the leased asset, notwithstanding
that the ownership of the asset will not be transferred; ④ on the inception of lease, the present value of the lease receipts is almost equal
to the fair value of the leased asset (no less than 90% of the fair value of the leased asset); and ⑤ the leased assets are of a specialized
nature that only the lessee can use them without making major modifications. The Company may also classify a lease as a financial lease
if one or more of the following signs exist: ① if the lessee cancels the lease, the resulting loss to the lessor shall be borne by the lessee;
② the gain or loss arising from the fluctuation in the fair value of the residual value of the asset shall be attributable to the lessee; and
③ the lessee is able to continue the lease to the next period at a rent much lower than the market level.
(2) Accounting methods of financial lease
1) Accounting methods for financial lease
Initial measurement
On the commencement date of lease term, the Company recognizes financial lease receivables for financial lease and derecognizes
financial lease assets. Upon initial measurement of financial lease receivables, the Company takes net investment in lease as entry value
of financial lease receivables.
Net investment in lease is the sum of unsecured residual value and the present value of outstanding lease receipts discounted on
interest rate implicit in lease on the commencement date of the lease term. Lease receipts refer to the amount that the lessor shall collect
from the lessee for transferring the right to use the leased assets during the lease term, including: ① the amount of fixed payment and
substantial fixed payment to be paid by the lessee, net of relevant amount of lease incentives if any; ② variable lease payments that are
based on an index or rate, which shall be determined at the time of initial measurement based on the index or rate on the commencement
date of the lease term; ③ exercise price of call option, given that the lessee will reasonably exercise such option; ④ amount payable by
the lessee for exercising the option to terminate the lease, if it is indicated during the lease term that the lessee will exercise the option to
terminate the lease; ⑤ The residual value of the guarantee provided to the lessor by the lessee, a party related to the lessee and an
independent third party with the financial ability to meet the guarantee obligation.
Subsequent measurement
The Company calculates and recognizes the interest income in each period of the lease term according to the fixed periodic rate.
Such periodic rate refers to the implicit discount rate used to determine the net investment in the lease (in case of sublease, the discount
rate of the original lease is adopted if the interest rate implicit in lease of the sublease cannot be determined (adjusted according to the
initial direct cost related to sublease)), or the revised discount rate determined according to the relevant provisions when the change of
the financial lease has not been treated as a separate lease for accounting and it is satisfied that the lease will be classified as the
financial lease if the change takes effect at the beginning of the lease.
Accounting treatment of lease change
When a change happens to the financial lease and meets the following conditions, the Company will treat it as a separate lease: ①
the change expands the lease scope by increasing one or more use rights to the leased assets; ② the increased consideration is
equivalent to the single price for the expanded portion of lease scope adjusted according to the contract.
If such a change to the financial lease is not accounted for as a separate lease and the condition is satisfied that if the change
becomes effective on the commencement date of the lease, the lease is classified as an operating lease, the Company will account for it
as a new lease from the effective date of the lease change and regard the net lease investment prior to the effective date of the lease
change as the book value of the leased asset.
2) Accounting methods for operating lease
Treatment of rent
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The Company adopts the straight-line method/other systematic and reasonable methods to recognize the lease receipts from
operating leases as rental income during all periods within the lease term.
Incentive measures provided
If a rent-free period is provided, total rent shall be amortized by adopting the straight-line method/other systematic and reasonable
methods within the lease term not excluding the rent-free period, and the rental income shall be recognized in the rent-free period.
Certain costs incurred by the lessee, if undertaken by the Company, shall be excluded from total rental income and the balance of rental
income after deducting these costs shall be amortized within the lease term.
Initial direct costs
The initial direct costs incurred by the Company related to the operating lease shall be capitalized to the cost of leased underlying
asset and shall be included in current profits and losses on the same basis as recognition of rental income during the lease term.
Depreciation
For fixed assets included in assets under operating leases, accrual depreciation shall base on the depreciation policy adopted by the
Company for similar assets. Other assets under operating leases shall be amortized in a systematic and reasonable manner.
Variable lease payments
Variable lease payments acquired by the Company in connection with operating leases that are not included in the lease receipts are
recognized in the current profits and losses when actually incurred. Change of operating lease
In case of changes in the operating lease, the Company will treat it as a new lease as of the effective date of the change, and the
lease advance or receivables related to the lease before the change will be regarded as the amount received from the new lease.
43. Other significant accounting policies and accounting estimates
When preparing the financial statements, the management of the Company needs to use estimates and assumptions that will have an
impact on the application of accounting policies and the amount of assets, liabilities, income and expenses. The actual situation may be
different from these estimates. The management of the Company continuously evaluates the key assumptions and uncertainties involved
in the estimates. The impact of a change in accounting estimates is recognized in the current and future periods of the change.
The following accounting estimates and key assumptions pose a risk of significant adjustment to the book value of assets and
liabilities in future periods:
(1) Impairment of financial assets
The expected credit loss model is used to evaluate the impairment of financial instruments. The application of the expected credit
loss model requires significant judgments and estimates, and all reasonable and well-founded information, including forward-looking
information, should be considered. When making such judgments and estimates, the Company deduces the expected changes in the
debtor's credit risk based on historical data combined with economic policies, macroeconomic indicators, industry risk, external market
environment, technical environment, changes in customer conditions and other factors.
(2) Provision for impairment of inventories
Basis for determining net realizable value of inventories: The net realizable value of merchandise inventories or held-for-sale
materials are determined by their estimated selling price deducted by estimated selling expenses and related taxes. The net realizable
value of inventories held for the execution of sales contracts or labor contracts is calculated on the basis of the contract price. If the
quantity of inventories held by the Company is more than the quantity ordered in a sales contract, the net realizable value of the excess
inventories is calculated on the basis of the general sales price.
Methods of provision for inventory depreciation: At the end of accounting period, inventory is valuated at cost or net realizable
value, whichever is lower; at the end of accounting period, on the basis of a comprehensive inventory count, provision for inventory
depreciation reserves is made for the part of the cost uncollectible of inventory due to damage, fully or partially out of date or selling
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price lower than the cost, etc.
If the factors affecting the write-down of inventory value in previous years have disappeared, the amount of write-down shall be
restored, and reversed within the original provision for inventory depreciation, and the amount reversed shall be included in the current
profits or losses.
(3) Accounting estimates for provision for impairment of goodwill
The Company conducts an impairment test on goodwill every year. The recoverable amount of the asset group and the asset group
combination that include goodwill are the present values of their estimated future cash flows, the calculation of which requires the use
of accounting estimates.
If the management revises the gross profit margin used in the future cash flow calculation of the asset group and the asset
group combination and the revised gross profit margin is lower than the current one, the Company shall increase the provision for
impairment of goodwill.
If the management revises the pre-tax discount rate applied to the discounted cash flow, and the revised pre-tax discount rate
is higher than the current one, the Company shall increase the provision for impairment of goodwill.
If the actual gross profit margin or pre-tax discount rate is higher or lower than the management's estimates, the Company cannot
reverse the goodwill impairment loss originally accrued.
(4) Accounting estimates for provision for impairment of fixed assets
The Company conducts impairment tests on buildings, machinery and equipment and other fixed assets that show signs of
impairment on the balance sheet date.
Recoverable amount of fixed assets
Accounting estimates shall be used for the calculation of the higher of the present value of its estimated future cash flows and the
net amount of the fair value of the assets minus the disposal expenses.
If the management revises the gross profit margin used in the future cash flow calculation of the asset group and the asset group
combination, and the revised gross profit margin is lower than the current one, the Company shall increase the provision for
impairment of fixed assets.
If the management revises the pre-tax discount rate applied to the discounted cash flow, and the revised pre-tax discount rate is
higher than the current one, the Company shall increase the provision for impairment of fixed assets.
If the actual gross profit margin or pre-tax discount rate is higher or lower than the management estimates, the Company cannot
reverse the original provision for impairment of fixed assets.
(5) Accounting estimates for the recognition of deferred income tax assets
The estimation of deferred income tax assets requires the estimates of taxable income and the applicable tax rate for each future
year. The realization of deferred income tax assets depends on whether it is probable that sufficient taxable income will be available to
the Group in the future. Changes in future tax rates and the reversal time of temporary differences may also affect income tax expenses
(income) and the balance of deferred income tax. Changes in the above estimates may lead to significant adjustments to deferred
income tax.
(6) Service life of fixed assets and intangible assets
The Company shall review the expected service life of fixed assets and intangible assets at least at the end of each year. The
expected service life is determined by the management based on the historical experience of similar assets, referring to the estimates
commonly used in the same industry and in combination with expected technological updates. When there is a significant change in
previous estimates, depreciation expenses and amortization expenses for future periods are adjusted accordingly.
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44. Significant accounting policy and accounting estimate changes
(1) Significant accounting policy changes
□Applicable √Not applicable
(2) Significant accounting estimate changes
□Applicable √Not applicable
45. Others
VI. Taxation
1. Main tax categories and tax rates
Category Tax base Tax rate
VAT Income from sales of goods 13%
VAT Income from provision of technical 6%
VAT servicesincome 5%
City maintenance and construction tax Turnover tax payable 7%
Education surcharge Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
House tax 70% of the original value of the house 1.2%
House tax Rental income 12%
Land use tax Total land area RMB 5-10/m2
Corporate income tax Taxable income 15%, 25%, 20%
Disclosure of taxpayers with different corporate income tax rates
Name of taxpayer Income tax rate
Hangzhou Robam Appliances Co., Ltd. 15%
Shengzhou Kinde Intelligent Kitchen Appliances Co., Ltd. 15%
Zhejiang Cookingfuture Technology Co., Ltd. 25%
Beijing Robam Appliances Sales Co., Ltd. 25%
Shanghai Robam Appliances Sales Co., Ltd. 25%
Hangzhou MingQi Electric Co., Ltd. 25%
De Dietrich Household Appliances Trading (Shanghai) Co., Ltd. 25%
Hangzhou Robam Fuchuang Investment Management Co., Ltd. 20%
Hangzhou Jinhe Electric Appliances Co., Ltd. 20%
2. Preferential tax policy
Preferential income tax policy
The Company obtained the Certificate of High-Tech Enterprise (Certificate No.: GR202033007142) jointly issued by Zhejiang
Provincial Department of Science and Technology, Zhejiang Provincial Department of Finance, Zhejiang Provincial Tax Service, State
Taxation Administration, and Local Taxation Bureau of Zhejiang Province on December 1, 2020. The certificate is valid for 3 years.
According to the relevant provisions, after being identified as a high-tech enterprise, the Company will enjoy the relevant preferential
policies of the state on high-tech enterprises for three consecutive years (i.e., the Company is entitled to the preferential corporate
income tax policy from January 1, 2020 to December 31, 2022), and the corporate income tax shall be levied at the rate of 15%.
The subsidiary of the Company, Shengzhou Kinde Intelligent Kitchen Appliances Co., Ltd. (hereinafter referred to as Shengzhou
Kinde), obtained the Certificate of High-tech Enterprise (Certificate No.: GR201933002261) jointly issued by Zhejiang Provincial
Department of Science and Technology, Zhejiang Provincial Department of Finance, and Zhejiang Provincial Tax Service, State
Taxation Administration on December 4, 2019. After the recognition, it will enjoy the preferential tax policy of the state on high-tech
enterprises for three consecutive years (i.e., it is entitled to the preferential corporate income tax policy from January 1, 2019 to
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
December 31, 2021), and its corporate income tax shall be levied at the tax rate of 15%.
According to the Announcement ([2017] No. 24) of the State Taxation Administration: Notice of the State Taxation
Administration on Issues Related to the Implementation of Preferential Income Tax Policies for High-tech Enterprises, prior to passing
the next recognition, Shengzhou Kinde will temporarily prepay at a tax rate of 15% for corporate income tax in the year in which the
qualification as a high-tech enterprise expires, i.e., 2022.
According to the Announcement ([2021] No. 8) of the State Taxation Administration, for Hangzhou Robam Fuchuang
Investment Management Co., Ltd. and Hangzhou Jinhe Electric Appliances Co., Ltd., subsidiaries of the Company, the part of the
annual taxable income of small low-profit enterprises not exceeding RMB 1 million shall be reduced to 12.5% to be levied at the
tax rate of 20% for the corporate income tax.
Preferential VAT policy
According to the Notice of the Ministry of Finance and the State Taxation Administration on the Value-added Tax Policy for
Software Products (CS [2011] No. 100), the Company's embedded software products are entitled to immediate VAT refund.
3. Others
VII. Notes to Items in the Consolidated Financial Statements
1. Cash and cash equivalents
In RMB
Item Ending balance Beginning balance
Cash in hand 122,392.82 80,944.99
Deposit in bank 3,326,702,947.52 3,718,304,060.33
Other cash and cash equivalents 73,962,698.57 83,816,341.23
Total 3,400,788,038.91 3,802,201,346.55
Other description
Note: The other cash and cash equivalents at the end of the accounting period are RMB 73,962,698.57, including the banker’s L/G
margin of RMB 57,695,282.91, and the bill acceptance margin of RMB 15,942,911.24, the use of which are both restricted, as well as
the Alipay balance of RMB 311,187.79 and WeChat balance of RMB 13,316.63, which are unrestricted funds to be withdrawn at any
time.
Restricted cash and cash equivalents
Item Ending balance Beginning balance
Banker’s L/G margin and bill acceptance margin 73,638,194.15 82,212,526.20
Total 73,638,194.15 82,212,526.20
2. Financial assets held for trading
In RMB
Item Ending balance Beginning balance
Financial assets measured at fair value
through profit or loss 2,884,760,000.00 2,872,312,500.00
Including:
financial products 2,884,760,000.00 2,872,312,500.00
Including:
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Total 2,884,760,000.00 2,872,312,500.00
3. Notes receivable
(1) Classified presentation of notes receivable
In RMB
Item Ending balance Beginning balance
Banker’s acceptance 900,887,049.22 862,581,158.56
Trade acceptance 407,159,767.07 467,612,736.26
Total 1,308,046,816.29 1,330,193,894.82
In RMB
Ending balance Beginning balance
Book
Book balance Bad debt reserve Book balance Bad debt reserve
Type value
Book
Percentag value Percentag
Percentage e of Percentage e of
Amount Amount Amount Amount
(%) provision (%) provision
Notes
receiva
ble 108,894 7.83% 63,437, 58.26% 45,456, 269,463 17.09% 224,066 83.15% 45,396,
with ,455.48 739.55 715.93 ,729.35 ,803.50 925.85
an
individ
ual
bad
debt
provisi
on
Including:
Provisi
108,894 7.83% 63,437, 58.26% 45,456, 269,463 17.09% 224,066 83.15% 45,396,
on for
,455.48 739.55 715.93 ,729.35 ,803.50 925.85
bad
debts
by
individual
item
Notes
receiva 1,281,6 1,262,5 1,307,0 1,284,7
ble 92.17% 19,037, 1.49% 82.91% 22,221, 1.70%
27,103. 002.70 90,100. 18,853. 884.76 96,968.
with a 06 36 73 97
collect
ive
bad
debt
provisi
on
Including:
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Banker 900,887 64.79% 900,887 862,581 54.72% 862,581
’s ,049.22 ,049.22 ,158.56 ,158.56
accept
ance
Trade 380,740 27.38% 19,037, 5.00% 361,703 444,437 28.19% 22,221, 5.00% 422,215
accept ,053.84 002.70 ,051.14 ,695.17 884.76 ,810.41
ance
1,390,5 1,308,0 1,576,4 1,330,1
100.00% 82,474, 5.93% 100.00% 246,288 15.62%
Total 21,558. 46,816. 82,583. 93,894.
742.25 ,688.26
54 29 08 82
Provision for bad debts by individual item:
In RMB
Ending balance
Name
Book balance Bad debt reserve Percentage of provision Reasons for provision
Unit 1 53,694,250.56 10,738,850.10 20.00% Debt rollover
Unit 2 46,862,486.65 46,862,486.65 100.00% Debt default
Unit 3 5,183,343.00 3,628,340.10 70.00% Full recovery is expected
Unit 4 995,659.17 696,961.42 70.00% to berecovery is expected
Unit 5 1,459,193.10 1,021,435.17 70.00% to berecovery is expected
Unit 6 455,562.75 318,893.93 70.00% to berecovery is expected
Unit 7 243,960.25 170,772.18 70.00% to berecovery is expected
Total 108,894,455.48 63,437,739.55 to be difficult
Collective bad debt provision: Combination of bank acceptance
In RMB
Ending balance
Name
Book balance Bad debt reserve Percentage of provision
Banker’s acceptances 900,887,049.22 0.00
combined
Total 900,887,049.22 0.00
Collective bad debt provision: Combination of trade acceptance
In RMB
Ending balance
Name
Book balance Bad debt reserve Percentage of provision
Trade acceptances combined 380,740,053.84 19,037,002.70 5.00%
Total 380,740,053.84 19,037,002.70
If the provision for bad debts of notes receivable is made according to the general model of expected credit loss, please refer to the
disclosure methods of other receivables to disclose the relevant information about the provision for bad debts:
□Applicable √ Not applicable
(2) Bad debt provision, and its recovery or reversal in the current period
Provision for bad debts in the current period:
In RMB
Amount of change in the current period
Type Beginning Ending
balance Provision Recovery or Write-off Others balance
reversal
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
-
246,288,688. 155,207,942. 8,606,003.69 82,474,742.2
Trade acceptance
26 32 5
-
Total 246,288,688. 155,207,942. 8,606,003.69 82,474,742.2
26 32 5
Significant recoveries or reversals of provisions for bad debts during the reporting period:
□Applicable √Not applicable
(3) Notes receivable that has been endorsed or discounted by the Company and not due on the balance
sheet date at the end of the period
In RMB
Item Ending amount derecognized Ending amount not derecognized
Trade acceptance 0.00 2,651,069.04
Total 0.00 2,651,069.04
(4) Notes transferred to accounts receivable by the Company due to drawer’s non-performance at the end of
the period
In RMB
Item
Amount of accounts receivable transferred at the end of the period
Trade acceptance 193,510,242.90
Total 193,510,242.90
5. Accounts receivable
(1) Classified disclosure of accounts receivable
In RMB
Ending balance Beginning balance
Type Book balance Bad debt reserve Book balance Bad debt reserve
Book value Book value
Percentage Percentage Percentage Percentage
Amount Amount Amount Amount
(%) of provision (%) of provision
Accounts
receivabl
e with
793,829 706,359 87,470, 630,075 553,584 76,490,
individual 32.42% 88.98% 28.04% 87.86%
,431.62 ,418.12 013.50 ,052.06 ,090.07 961.99
bad debt
provision
s
Including:
Provision
for bad
debts by 793,829 32.42% 706,359 88.98% 87,470, 630,075 28.04% 553,584 87.86% 76,490,
individual ,431.62 ,418.12 013.50 ,052.06 ,090.07 961.99
item
Accounts
receivabl
e with a 1,655,0 1,552,8 1,617,3 1,521,2
102,189 96,145,
collective 79,442. 67.58% 6.17% 90,441. 47,143. 71.96% 5.94% 01,898.
,001.34 244.24
bad debt 40 06 15 91
provision
Including:
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Multiple
accounts
receivable
which are
grouped by
expected
credit loss
based on 1,655,079,4 102,189,0 1,552,890,4 1,617,347,1 96,145, 1,521,201,8
67.58% 6.17% 71.96% 5.94%
their age 42.40 01.34 41.06 43.15 244,24 98.91
characterist
ics and
with a
collective
bad debt
provision
2,448,9 1,640,3 2,247,4 1,597,6
Total 08,874. 100.00% 808,548 33.02% 60,454. 22,195. 100.00% 649,729 28.91% 92,860.
02 ,419.46 56 21 ,334.31 90
Provision for bad debts by individual item: Provision for bad debts of receivables by individual item
In RMB
Ending balance
Name
Book balance Bad debt reserve Percentage of provision Reasons for provision
Unit 1 613,202,711.42 613,202,711.42 100.00 Debt default
Unit 2 68,795,196.31 13,759,039.26 20.00 Debt rollover
Unit 3 27,760,507.34 19,432,355.14 70.00% Full recovery is expected
to be difficult
Unit 4 20,766,804.51 14,536,763.16 70.00% Full recovery is expected
to be difficult
Unit 5 19,980,052.93 13,986,037.05 70.00% Full recovery is expected
to be difficult
Unit 6 14,247,715.67 9,973,400.97 70.00% Full recovery is expected
to be difficult
Unit 7 9,243,574.60 6,470,502.22 70.00% Full recovery is expected
to be difficult
Unit 8 8,070,171.98 5,649,120.39 70.00% Full recovery is expected
to be difficult
Unit 9 3,654,431.88 2,558,102.32 70.00% Full recovery is expected
to be difficult
Unit 10 2,887,210.93 2,021,047.65 70.00% Full recovery is expected
to be difficult
Unit 11 1,773,645.05 1,773,645.05 100.00% Debt default
Unit 12 3,447,409.00 2,996,693.49 86.93% Expected to be exposed to
recovery risk
Total 793,829,431.62 706,359,418.12
Collective bad debt provision: for multiple accounts receivable grouped by expected credit loss based on their age characteristics,
their bad debts are provided for collectively.
In RMB
Ending balance
Name
Book balance Bad debt reserve Percentage of provision
Within 1 year 1,372,778,421.26 68,638,921.06 5.00%
1-2 years 261,066,239.87 26,106,623.99 10.00%
2-3 years 14,024,540.13 2,804,908.03 20.00%
3-4 years 4,816,068.57 2,408,034.30 50.00%
4-5 years 818,293.02 654,634.41 80.00%
More than 5 years 1,575,879.55 1,575,879.55 100.00%
Total 1,655,079,442.40 102,189,001.34
If the bad debt provision for accounts receivable is made according to the general model of expected credit loss, please refer to the
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disclosure methods of other receivables to disclose the relevant information about the provision for bad debts:
□Applicable √Not applicable
Disclosed based on the aging of receivables
In RMB
Aging Ending balance
Within 1 year (including 1 year) 1,585,366,431.89
Within 1 year (including 1 year) 1,585,366,431.89
1-2 years 686,217,532.78
2-3 years 165,746,625.01
More than 3 years 11,578,284.34
3-4 years 7,090,417.37
4-5 years 966,963.42
More than 5 years 3,520,903.55
Total 2,448,908,874.02
(2) Bad debt provision, and its recovery or reversal in the current period
Provision for bad debts in the current period:
In RMB
Amount of change in the current period
Type Beginning balance Ending balance
Provision Recovery or reversal Write-off Others
Bad debt
649,729,334.31 185,461,367.93 26,642,282.78 808,548,419.46
provision for
accounts
receivable
Total 649,729,334.31 185,461,367.93 26,642,282.78 808,548,419.46
(3) Top five debtors with the biggest ending balances of receivables
In RMB
Ending balance of accounts Proportion in the total ending Ending balance of bad debt
Unit balance of accounts receivable
receivable reserves
Unit 1 614,703,488.15 25.10% 37,386,355.40
Unit 2 422,007,941.34 17.23% 422,007,941.34
Unit 3 95,125,955.20 3.88% 95,125,955.20
Unit 4 68,013,931.65 2.78% 3,400,696.58
Unit 5 55,059,796.18 2.25% 2,752,989.81
Total 1,254,911,112.52 51.24%
7. Advance payments
(1) Advance payments presented by aging
In RMB
Ending balance Beginning balance
Aging
Amount Percentage (%) Amount Percentage (%)
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Within 1 year 184,421,637.20 98.78% 129,823,235.88 98.98%
1-2 years 2,143,102.72 1.15% 1,308,725.59 1.00%
2-3 years 56,337.70 0.03% 30,069.48 0.02%
More than 3 years 74,945.85 0.04%
Total 186,696,023.47 131,162,030.95
8. Other receivables
In RMB
Item Ending balance Beginning balance
Other receivables 105,383,151.12 73,487,381.46
Total 105,383,151.12 73,487,381.46
(1) Other receivables
1) Classification of other receivables by nature
In RMB
Initial book balance at the beginning of the
Nature of receivable Book balance at the end of the period
period
Security/guarantee deposits 37,642,042.10 48,646,642.67
Collections by a third party 61,097,321.97 39,389,486.99
Cash reserve 12,223,382.79 2,785,329.49
Withholdings 6,919,436.49 3,224,265.49
Others 4,087,739.14 57,881.26
Total 121,969,922.49 94,103,605.90
2) Bad debt provision
In RMB
Phase I Phase II Phase III
Expected credit loss
Bad debt reserve Expected credit loss Expected credit loss Total
over the entire duration
over the next 12 over the entire duration
(without credit
months (with credit impairment)
impairment)
Balance on January 1, 20,616,224.44 20,616,224.44
2022
Balance on January 1,
2022 in the current
period
Provision in the current -4,029,453.07 -4,029,453.07
period
Balance on June 30, 2022 16,586,771.37 16,586,771.37
Changes in the book balance with significant change in amount of the loss provision in the current period
□Applicable √ Not applicable
Disclosed based on the aging of receivables
In RMB
Aging Ending balance
Within 1 year (including 1 year) 98,365,217.59
Within 1 year (including 1 year) 98,365,217.59
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1-2 years 8,072,690.63
2-3 years 2,812,051.27
More than 3 years 12,719,963.00
3-4 years 4,201,000.60
4-5 years 1,729,913.50
More than 5 years 6,789,048.90
Total 121,969,922.49
3) Bad debt provision, and its recovery or reversal in the current period
Provision for bad debts in the current period:
In RMB
Type Beginning Amount of change in the current period Ending
balance balance
Provision Recover Write-off Others
y or
reversal
Bad debt 20,616,224.44 -4,029,453.07 16,586,771.37
reserve for
other
receivables
Total 20,616,224.44 -4,029,453.07 16,586,771.37
4) Top five debtors with the biggest ending balances of other receivables
In RMB
Proportion in the
total ending Ending balance of
Unit Nature of receivable Ending balance Aging
balance of other bad debt provision
accounts receivable
Unit 1 Collections by a 27,716,044.47 22.72 1,385,802.22
third party Within 1 year
Unit 2 Withholdings 5,416,389.09 Within 1 year 4.44 270,819.45
Unit 3 Security/guarantee 4,928,000.00 4.04 4,928,000.00
deposits More than 5 years
Unit 4 Security/guarantee 1,660,000.00 1.36 83,000.00
deposits Within 1 year
Unit 5 Security/guarantee 1,175,000.00 0.96 292,623.25
deposits 0-4 years
Total 40,895,433.56 33.53 6,960,244.92
9. Inventory
(1) Classification of inventories
In RMB
Ending balance Beginning balance
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Provision for Provision for
Item Book balance obsolete Book value Book balance obsolete Book value
inventory or for inventory or
impairment of the for impairment
cost of contract of the cost of
performance contract
performance
Raw 134,841,725.92 134,841,725.92 161,795,174.65 161,795,174.65
materials
Products in 109,408,799.37 109,408,799.37 116,573,107.77 116,573,107.77
process
28,819,579.6
Merchandise 548,931,655.53 19,005,263.10 529,926,392.43 529,957,331.64 501,137,752.04
inventory 0
Contract 47,737,003.06 47,737,003.06 48,844,764.12 48,844,764.12
performance
costs
51,220,027.9
Goods 1,011,705,771.92 36,978,330.88 974,727,441.04 971,605,585.98 920,385,558.00
shipped in 8
transit
Low-cost
consumab 28,447,019.21 28,447,019.21 23,495,275.67 23,495,275.67
les and
packing
materials
1,825,088,381.0 1,852,271,239. 80,039,607.5 1,772,231,632.2
Total 1,881,071,975.01 55,983,593.98
3 83 8 5
(2) Provision for obsolete inventory or for impairment of the contract performance costs
In RMB
Increased amount in the current Decreased amount in the
Item Beginning balance period current period Ending balance
Provision Others Reversals or write- Others
off
Merchandise 28,819,579.60 -9,814,316.50 19,005,263.10
inventory
Goods shipped 51,220,027.98 -14,241,697.10 36,978,330.88
in transit
Total 80,039,607.58 -24,056,013.60 55,983,593.98
(3) Explanation that the ending balance of inventory includes the amount of capitalized borrowing costs
(4) Explanation on amortization amount of contract performance costs in current period
10. Other current assets
In RMB
Item Ending balance Beginning balance
Input tax to be deducted 105,891.12 3,442,185.74
Prepaid tax 668,243.42
Total 105,891.12 4,110,429.16
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11. Long-term equity investment
In RMB
Increase/decrease in the current period
Investme Cash Ending
Beginnin nt profit Adjustm dividend balance
Ending
g Addition or loss s or Provisio of
Negative ent of Other balance
Investee balance al recogniz profits n for impairm
other (book
(book investme investme ed using changes
declare d impairm Others ent
nt compreh in equity value)
value) nt the and ent provisio
ensive n
equity income distribut
method ed
I. Joint venture
De
Dietric -
3,661, 2,538, 1,122,
h 700.03 742.02
958.01
Trade
(Shang
hai)
Co.,
Ltd.
Shaoxi
ng 4,140, 4,140,
Shuaig 000.00 000.00
e
Kitche
n &
Bathro
om
Techno
logy
Co.,
Ltd.
-
Subtotal 3,661, 4,140, 2,538, 5,262,
700.03 000.00 958.01 742.02
II. Associated companies
Zhejian
g -
1,743, 408,92 1,334,
Tingsh 429.88 500.57
9.31
uo
Brand
Operati
on and
Manag
ement
Co.,
Ltd.
-
Subtotal 1,743, 408,92 1,334,
429.88 9.31 500.57
-
Total 5,405, 4,140, 2,947, 6,597,
129.91 000.00 887.32 242.59
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12. Other equity instrument investments
In RMB
Item Ending balance Beginning balance
Shanghai MXCHIP Information 2,116,023.22 2,116,023.22
Technology Co., Ltd.
Total 2,116,023.22 2,116,023.22
Disclosure of non-tradable equity instrument investment by item in the current period
In RMB
Recognize Amount transferred Reason for being designated to Reason for the transfer
d Accum from other be measured by fair value and of other comprehensive
Item ulated Accumulated losses
dividends comprehensive the change being recorded in incomes to retained
income gains incomes to retained other comprehensive income earnings
earnings
Suzhou Industrial
Park Ruican 100,000,000.00
Investment Held not for the purpose of
Enterprise (Limited trading
Partnership)
Shanghai MXCHIP 17,832,510.78
Information Held not for the purpose of
Technology Co., trading
Ltd.
13. Investment real estate
(1) Investment real estate under the cost measurement mode
√Applicable □Not applicable
In RMB
Item Buildings Total
I. Original book value
1. Beginning balance 11,676,710.68 11,676,710.68
2. Increased amount in the current period
3. Decreased amount in the current period 6,992,399.10 6,992,399.10
(1) Other transfer-out 6,992,399.10 6,992,399.10
4. Ending balance 4,684,311.58 4,684,311.58
II. Accumulated depreciation and amortization
1. Beginning balance 590,814.61 590,814.61
2. Increased amount in the current period 111,252.36 111,252.36
(1) Accrual or amortization 111,252.36 111,252.36
3. Decreased amount in the current period 304,460.75 304,460.75
(1) Other transfer-out 304,460.75 304,460.75
4. Ending balance 397,606.22 397,606.22
III. Impairment provision 0 0
IV. Book value
1. Ending book value 4,286,705.36 4,286,705.36
2. Beginning book value 11,085,896.07 11,085,896.07
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14. Fixed assets
In RMB
Item Ending balance Beginning balance
Fixed assets 1,168,388,890.69 1,179,306,020.01
Total 1,168,388,890.69 1,179,306,020.01
(1) Fixed assets
In RMB
Item Machine and Transportation Total
Houses and buildings Other equipment
equipment equipment
I. Original book value:
1. Beginning balance 1,072,125,559.85 679,169,886.72 21,794,424.31 84,018,707.52 1,857,108,578.40
2. Increased amount in 13,472,162.01 32,996,332.65 785,486.72 3,091,735.94 50,345,717.32
the current period
(1) Purchase 6,479,762.91 8,987,725.72 2,551,982.50 18,019,471.13
(2) Construction in
24,008,606.93 785,486.72 539,753.44 25,333,847.09
process transfer-in
(3) Other increases 6,992,399.10 6,992,399.10
3. Decreased amount in 3,431,788.07 293,110.00 981,072.86 4,705,970.93
the current period
(1) Disposal or
3,431,788.07 293,110.00 981,072.86 4,705,970.93
retirement waste
4. Ending balance 1,085,597,721.86 708,734,431.30 22,286,801.03 86,129,370.60 1,902,748,324.79
II. Accumulated depreciation
1. Beginning balance 267,528,198.84 341,157,676.17 12,747,836.37 56,368,847.01 677,802,558.39
2. Increased amount in 26,013,144.29 28,293,360.58 1,192,980.00 4,828,661.11 60,328,145.98
the current period
(1) Provision 25,708,683.54 28,293,360.58 1,192,980.00 4,828,661.11 60,023,685.23
(2) Other increases 304,460.75 304,460.75
3. Decreased amount in 2,584,243.83 278,454.50 908,571.94 3,771,270.27
the current period
(1) Disposal or
2,584,243.83 278,454.50 908,571.94 3,771,270.27
retirement
4. Ending balance 293,541,343.13 366,866,792.92 13,662,361.87 60,288,936.18 734,359,434.10
III. Impairment provision
IV. Book value
1. Ending book value 792,056,378.73 341,867,638.38 8,624,439.16 25,840,434.42 1,168,388,890.69
2. Beginning book value 804,597,361.01 338,012,210.55 9,046,587.94 27,649,860.51 1,179,306,020.01
(2) Fixed assets without property right certificate
In RMB
Reasons for failure to obtain the property
Item Book value
right certificate
419,931,359.46 The formalities for the newly built plant
Houses and buildings
are in progress
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15. Construction in process
In RMB
Item Ending balance Beginning balance
Construction in process 699,981,173.60 454,643,364.82
Total 699,981,173.60 454,643,364.82
(1) Construction in progress
In RMB
Ending balance Beginning balance
Item Impairme
Impairment nt
Book balance Book value Book balance Book value
provision provision
Construction of 331,252,892.16 331,252,892.16 194,423,004.31 194,423,004.31
Maoshan
Intelligent
Manufacturing
Base
infrastructure
Shengzhou 209,171,419.72 209,171,419.72 174,099,821.16 174,099,821.16
Chengnan
project
Robam Mansion 109,722,514.61 109,722,514.61 59,931,795.23 59,931,795.23
project
Project of the 10,336,283.17 10,336,283.17
First Production
Department
Integrated Range 3,256,637.20 3,256,637.20 3,256,637.20 3,256,637.20
Hood Project
Customized 2,110,176.00 2,110,176.00 3,223,516.47 3,223,516.47
management
software
Project of the 135,398.24 135,398.24 2,779,911.26 2,779,911.26
Third Production
Department
Project of the 424,778.76 424,778.76 1,185,840.80 1,185,840.80
Second
Production
Department
Project of the 42,352,732.41 42,352,732.41
Fourth
Production
Department
Other smaller 1,554,624.50 1,554,624.50 5,406,555.22 5,406,555.22
projects
Total 699,981,173.60 699,981,173.60 454,643,364.82 454,643,364.82
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(2) Current changes in major projects under construction
In RMB
Amoun Proport Includi
t ion of ng:
Accum Interest
Increas transfer Other accum Amoun
ulated capitali
ed red decreas ulated t of
Beginn Project amount zation Fundin
Name amount into es in Ending project capitali
Budget ing progres of rate in g
of item in the fixed the balance invest zed
balance s interest the source
current assets current ment in interest
capitali current
period in the period the in the
zation period
current budget current
period (%) period
Constr 899,28 194,42 136,82 331,25 83.55% 83.55%
uction 0,000. 3,004. 9,887. 2,892. Others
of 00 31 85 16
Maosh
an
Intellig
ent
Manuf
acturin
g Base
infrastr
ucture
240,960, 174,099, 35,071,5 209,171, 86.81% 86.81%
000.00 821.16 98.56 419.72 Others
Sheng
zhou
Cheng
nan
projec
t
708,250, 59,931,7 49,790,7 109,722, 15.49% 15.49%
Robam 000.00 95.23 19.38 514.61 Others
Mansion
Project
1,848,490, 428,454, 221,692, 650,146,
Total 000,00 620.70 205.79 826.49
16. Right-of-use assets
In RMB
Item Houses and buildings Total
I. Original book value
1. Beginning balance 35,620,757.32 35,620,757.32
2. Increased amount in the current
period
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3. Decreased amount in the current 5,542,402.33 5,542,402.33
period
(1) Disposal 5,542,402.33 5,542,402.33
4. Ending balance 30,078,354.99 30,078,354.99
II. Accumulated depreciation
1. Beginning balance 5,717,803.10 5,717,803.10
2. Increased amount in the current 2,735,187.20 2,735,187.20
period
(1) Provision 2,735,187.20 2,735,187.20
3. Decreased amount in the current 395,885.92 395,885.92
period
(1) Disposal 395,885.92 395,885.92
4. Ending balance 8,057,104.38 8,057,104.38
III. Impairment provision
IV. Book value
1. Ending book value 22,021,250.61 22,021,250.61
2. Beginning book value 29,902,954.22 29,902,954.22
17. Intangible assets
(1) Intangible assets
In RMB
Item Land use right Software Trademark Patents Total
I. Original book value
1. Beginning balance 225,656,679.95 59,863,685.75 24,624,622.64 7,300,000.00 317,444,988.34
2. Increased amount in the 3,168,141.60 3,168,141.60
current period
(1) Purchase 3,168,141.60 3,168,141.60
3. Decreased amount in the
current period
(1) Disposal
4. Ending balance 225,656,679.95 63,031,827.35 24,624,622.64 7,300,000.00 320,613,129.94
II. Accumulated amortization
1. Beginning balance 30,136,519.99 45,379,740.27 8,606,155.60 3,930,769.22 88,053,185.08
2. Increased amount in the 2,296,326.15 2,698,627.78 1,231,231.12 561,538.47 6,787,723.52
current period
(1) Provision 2,296,326.15 2,698,627.78 1,231,231.12 561,538.47 6,787,723.52
3. Decreased amount in the
current period
4. Ending balance 32,432,846.14 48,078,368.05 9,837,386.72 4,492,307.69 94,840,908.60
III. Impairment provision
IV. Book value
1. Ending book value 193,223,833.81 14,953,459.30 14,787,235.92 2,807,692.31 225,772,221.34
2. Beginning book value 195,520,159.96 14,483,945.48 16,018,467.04 3,369,230.78 229,391,803.26
18. Goodwill
(1) Original book value of goodwill
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In RMB
Decrease in
Increase in the current
the current
Name of investee or item that generates period
Beginning balance period Ending balance
goodwill
Generated by business
Disposal
combination
Shengzhou Kinde Intelligent Kitchen 80,589,565.84 80,589,565.84
Appliances Co., Ltd.
Total 80,589,565.84 80,589,565.84
Information about the asset group or combination of asset groups to which goodwill belongs
The Company recognizes Shengzhou Kinde as an asset group. Goodwill at the end of this period is in the same asset group as
recognized upon goodwill impairment test at the date of purchase and in previous year.
Procedures and parameters of goodwill impairment test and methods to recognize goodwill impairment loss
The Company appoints Zhonghe Appraisal Co., Ltd. (Zhonghe Appraisal) to evaluate the Shengzhou Kinde assets group, so as to
determine if there is goodwill impairment. According to the Appraisal Report (ZHZBZ (2022) No. BJU3002,002) for the purpose
of goodwill impairment test issued by Zhonghe Appraisal, Zhonghe Appraisal has determined according to the five-year cash flow
estimate approved by the management, reckoned the cash flow after the five-year forecast period using certain long-term average
growth rate, calculated using the present value model of future cash flow, and, under the going-concern assumption, made
goodwill impairment test with the higher of the net value of assets’ fair value minus disposal expenses and the present value of
estimated assets’ future cash flow. As tested, the recoverable amount of Shengzhou Kinde assets group is higher than the book
value of the assets group containing goodwill. No sign of goodwill impairment is found.
19. Long-term unamortized expenses
In RMB
Amount of
Increased amount in
Item Beginning balance amortization in the Other decreases Ending balance
the current period
current period
Service fee 918,029.08 473,907.27 489,297.54 902,638.81
Consulting fee 171,200.15 37,667.36 133,532.79
Brand endorsement 1,572,876.21 184,204.47 791,648.15 965,432.53
cost decoration 2,693,191.62 1,120,603.43 1,572,588.19
expenses 30,139.14 14,945.71 15,193.43
protection costs
Total 5,385,436.20 658,111.74 2,454,162.19 3,589,385.75
20. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets before offset
In RMB
Ending balance Beginning balance
Item
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Credit impairment 907,609,933.08 137,464,760.94 917,479,025.92 138,811,114.82
provision
Deferred income tax 1,064,974,915.35 159,746,237.30 656,596,891.65 98,489,533.76
assets before offset
recognized based on the
provisional estimated
expenses
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Change of the fair 117,832,510.78 17,674,876.62 117,832,510.78 17,674,876.62
value of other equity
instrument
investments
Deferred income tax 95,786,247.96 14,367,937.19 102,890,393.42 15,433,559.00
assets before offset
recognized based on the
deferred income
Asset impairment 55,983,593.98 8,397,539.10 80,039,607.58 12,005,941.14
provision
Accrued and unpaid 9,848,248.72 1,477,237.31
salaries
Unrealized profits of 6,392,315.82 1,597,686.80 6,550,213.16 1,637,825.81
internal transactions
Deferred income tax 7,117,131.75 1,098,553.20 3,118,765.48 480,458.47
assets before offset
recognized due to equity
incentive
Unrecognized financial 1,707,409.13 426,852.28 1,349,960.44 337,490.11
expenses
Total 2,257,404,057.85 340,774,443.43 1,895,705,617.15 286,348,037.04
(2) Deferred income tax liabilities before offset
In RMB
Item Ending balance Beginning balance
Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Asset appraisal 23,538,118.33 3,530,717.75 25,908,559.83 3,886,283.97
appreciation arising
from business
combination where the
acquired company is
not controlled by the
same party after the
combination
Temporary taxable
difference incurred 30,203,466.60 4,530,519.99 15,789,858.60 2,368,478.79
from pre-tax
deduction of fixed
assets
Total 53,741,584.93 8,061,237.74 41,698,418.43 6,254,762.76
(3) Deferred income tax assets or liabilities presented in net amount after offset
In RMB
Amount of deferred Initial amount of
Ending balance of Beginning balance of
income tax assets offset deferred income tax
deferred income tax deferred income tax
Item against deferred income assets offset against
assets or liabilities after assets or liabilities after
tax liabilities at the end deferred income tax
offset offset
of the period liabilities
Deferred income tax 340,774,443.43 286,348,037.04
assets
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Deferred income tax 8,061,237.74 6,254,762.76
liabilities
(4) Presentation of unrecognized deferred income tax assets
In RMB
Item Ending balance Beginning balance
Deductible tax losses 21,721,067.74 18,037,908.58
Total 21,721,067.74 18,037,908.58
(5) The deductible losses of unrecognized deferred income tax assets will be due in the following years
In RMB
Year Ending amount Beginning amount Remarks
2022 39,552.31 39,552.31
2023 6,714.34 6,714.34
2024 5,602.28 5,602.28
2025 9,556,499.12 9,556,499.12
2026 8,429,540.53 8,429,540.53
2027 3,683,159.16
Total 21,721,067.74 18,037,908.58
21. Other non-current assets
In RMB
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Prepayments 51,019,955.27 51,019,955.27 33,649,858.27 33,649,858.27
for equipment 25,657,321.55 25,657,321.55 3,129,005.00 3,129,005.00
purchase
Prepayments 941,811.17 941,811.17 1,690,011.17 1,690,011.17
purchase
Total 77,619,087.99 77,619,087.99 38,468,874.44 38,468,874.44
22. Short-term borrowings
(I) Classification of short-term borrowings
In RMB
Item Ending balance Beginning balance
Credit borrowings 39,657,061.74 29,616,655.41
Total 39,657,061.74 29,616,655.41
Description on the classification of short-term borrowings:
Note: This represents the Company's failure to derecognize the bank receivables with recourse factoring of RMB 26,157,061.74 and
bank credit loans of RMB 13,500,000.00.
23. Notes payable
In RMB
Type Ending balance Beginning balance
Banker’s acceptance 809,469,587.67 962,665,463.99
Total 809,469,587.67 962,665,463.99
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The total amount of notes payable that were due and unpaid at the end of this period was RMB 0.00.
24. Accounts payable
In RMB
Item Ending balance Beginning balance
Payment for materials 999,839,708.25 1,087,160,715.37
Payment for expenses 1,081,853,053.58 923,334,216.09
Payment for construction 197,017,080.54 152,898,742.07
Payment for equipment 24,492,976.97 18,506,587.47
Total 2,303,202,819.34 2,181,900,261.00
Note: As of June 30, 2022, the important accounts payable with an age of more than one year totaled RMB 13,390,151.23, mainly
involving the outstanding payment for expenses.
25. Contract liabilities
In RMB
Item Ending balance Beginning balance
Advances on sales 979,436,556.29 1,026,782,402.35
Total 979,436,556.29 1,026,782,402.35
26. Employee remuneration payable
(1) Presentation of employee remuneration payable
In RMB
Increase in the current Decrease in the current
Item Beginning balance Ending balance
period period
I. Short-term 159,707,932.44 362,682,903.25 471,190,482.93 51,200,352.76
remuneration
II. Post-employment
5,469,492.64 30,869,390.02 34,637,886.83 1,700,995.83
benefits defined
contribution plan
III. Termination benefits 1,209,255.99 827,762.14 381,493.85
Total 165,177,425.08 394,761,549.26 506,656,131.90 53,282,842.44
(2) Presentation of short-term remuneration
In RMB
Item Beginning Increase in the Decrease in the Ending balance
balance current period current period
1. Salaries, bonuses,
subsidies and 155,146,075.83 306,920,793.36 412,651,592.31 49,415,276.88
allowances
2. Employee welfare 80.00 11,590,637.58 11,590,717.58
3. Social insurance 3,769,101.65 20,070,961.00 22,645,067.06 1,194,995.59
Including: Medical
insurance 3,619,348.25 19,523,501.39 21,980,169.99 1,162,679.65
Occupation
al injury 149,753.40 547,459.61 664,897.07 32,315.94
insurance
4. Housing funds 374,934.40 16,595,977.25 16,754,372.65 216,539.00
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5. Labor union and
staff education 417,740.56 7,504,534.06 7,548,733.33 373,541.29
expenses
Total 159,707,932.44 362,682,903.25 471,190,482.93 51,200,352.76
(3) Presentation of the defined contribution plans
In RMB
Item Beginning Increase in the Decrease in the Ending balance
balance current period current period
1. Basic pensions 5,282,063.72 29,889,193.15 33,527,153.25 1,644,103.62
2. Unemployment 187,428.92 980,196.87 1,110,733.58 56,892.21
insurance
Total 5,469,492.64 30,869,390.02 34,637,886.83 1,700,995.83
27. Taxes payable
In RMB
Item Ending balance Beginning balance
Corporate income tax 124,049,884.68 137,979,203.70
VAT 87,399,323.21 53,911,099.54
City maintenance and construction tax 6,159,411.70 2,141,479.84
Individual income tax 1,120,602.89 3,868,615.91
Education surcharge 2,639,747.85 1,657,978.22
Local education surcharge 1,759,832.01 1,105,318.89
Stamp tax 409,582.18 600,407.34
Land use tax 4,382,947.50
House tax 6,492,438.07 6,555,342.60
Total 230,030,822.59 212,202,393.54
28. Other payables
In RMB
Item Ending balance Beginning balance
Other payables 269,409,072.30 267,781,215.06
Total 269,409,072.30 267,781,215.06
(1) Other payables
1) Other payables presented by nature
In RMB
Item Ending balance Beginning balance
Security deposits payable 257,963,026.75 252,335,944.60
Collections by a third party 4,491,763.37 6,179,088.18
Guarantee deposits payable 5,929,870.30 5,104,062.30
Connected transactions 2,700,000.00
Others 1,024,411.88 1,462,119.98
Total 269,409,072.30 267,781,215.06
2) Other important payables with an age of more than one year
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As of June 30, 2022, the important other payables with an age of more than one year totaled RMB 231,518,785.92, mainly involving
the sales deposits.
29. Non-current liabilities due within one year
In RMB
Item Ending balance Beginning balance
Lease liabilities due within one year 5,414,420.90 5,387,591.43
Total 5,414,420.90 5,387,591.43
30. Other current liabilities
In RMB
Item Ending balance Beginning balance
Output tax to be transferred 115,300,198.58 124,284,081.56
Total 115,300,198.58 124,284,081.56
31. Lease liabilities
In RMB
Item Ending balance Beginning balance
Lease payment amount 27,033,092.96 37,325,149.01
Unrecognized financial expenses -3,043,042.22 -5,760,523.29
Non-current liabilities due within one year -5,414,420.90 -5,387,591.43
after reclassification
Total 18,575,629.84 26,177,034.29
32. Deferred income
In RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance Cause of formation
period current period
Government grants 131,747,378.42 1,250,000.00 8,354,145.46 124,643,232.96
Total 131,747,378.42 1,250,000.00 8,354,145.46 124,643,232.96
Projects with government grants:
In RMB
Projects with government Amount of newly Amount included in the Related to
Beginning balance added government current profits and Ending balance assets/income
grants
Project of intelligent grants for this year for this year
losses4,269,752.82 33,975,095.32
38,244,848.14 Related to
manufacturing and integrated
assets
standard
and new modelof application 1,286,890.62 21,044,179.98
22,331,070.60 Related to
line with an annual output of
assets
2.25 million sets of kitchen
appliances
Construction of kitchen 549,179.75 6,495,421.26
7,044,601.01 Related to
appliance R&D, design and
assets
testing center
Subsidy for the construction 571,891.98 567,165.14
1,139,057.12 Related to
of production line
assets
with an annual output of 1
million sets of kitchen
appliances
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Construction of production 341,245.50 3,910,598.25
4,251,843.75 Related to
line
assets
with an annual new
Development ofoutput of 1.08 95,325.42 435,699.89
531,025.31 Related to
million setsofof built-in
assets
kitchen appliances
energy-saving kitchen
appliances and their
production line
Construction of digital -9,136.48 431,358.76
422,222.28 Related to
intelligent workshop for
assets
smart home appliances
Construction of the digital -123,825.26 148,505.91
24,680.65 Related to
workshop with an annual
assets
output of 2.25 million sets of
kitchen appliances
Recycling-centered renewal 360,466.65 45,805.08 314,661.57 Related to
project assets
Subsidy for an investment in 30,106.11 -
30,106.11 Related to
a production line with an
assets
annual output of 150,000
kitchen range hoods
Academician & expert work 210,622.64 22,553.06 188,069.58 Related to
station assets
Construction of the kitchen 3,812.40 31,134.40
34,946.80 Related to
appliance R&D, design and
assets
testing
center
Technological upgrading for 8,300,000.00 - 8,300,000.00 Related to
manufacturing enterprises assets
Technological upgrading 2,216,987.91 187,205.58 2,029,782.33 Related to
project with an annual output assets
of 500,000
Intelligent unmanned factory 1,039,424.10 16,708,490.35
17,747,914.45 Related to
based on 5G and cloud
assets
technologies
Subsidy for the 28,856,985.00
28,856,985.00 Related to
No. M2020-09 Land of assets
Chengnan New Area
Robam Future Factory 1,250,000.00 43,914.78 1,206,085.22 Related to
Project assets
Total 131,747,378.42 1,250,000.00 8,354,145.46 124,643,232.96 —
33. Capital stock
In RMB
Increase and decrease of this change (+, -)
Beginning Ending
balance Issue of new Bonus shares Shares Others Subtotal balance
shares converted
from capital
reserve
Total number 949,024,05 949,024,05
of shares 0.00 0.00
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34. Capital reserve
In RMB
Item Beginning balance Increase in the current Decrease in the current Ending balance
period period
Capital (stock)
premium 401,799,332.67 401,799,332.67
Other capital reserves 3,118,765.48 3,998,366.27 7,117,131.75
Total 404,918,098.15 3,998,366.27 408,916,464.42
Note: for the increase in other capital reserves, please refer to the relevant explanation on equity incentives in the item of other
significant matters in this note.
35. Treasury shares
In RMB
Item Beginning balance Increase in the current Decrease in the current Ending balance
period period
Share repurchase 199,995,742.59 199,995,742.59
Total 199,995,742.59 199,995,742.59
36. Other comprehensive incomes
In RMB
Amount of the current period
Less:
Less:
amount
amount
included in
included in
Amount other
other Net income Net income
incurred comprehens
Beginning comprehens after tax after tax Ending
Item before ive incomes Less:
balance ive incomes attributable attributable balance
income tax previously income tax
previously to the to minority
in the and then expenses
and then parent shareholder
current transferred
transferred company s
period into the
into current
current
retained
profit or
earnings
loss
I. Other
comprehe - -
nsive 100,157,6 100,157,6
incomes 34.16 34.16
that
cannot be
reclassifie
d into
profit or
loss
Cha
- -
nges in
100,157,6 100,157,6
fair value
of the 34.16 34.16
investme
nt in
other
equity
instrumen
ts
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Total of - -
other 100,157,6 100,157,6
comprehe 34.16 34.16
nsive
incomes
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37. Surplus reserve
In RMB
Item Beginning Increase in the Decrease in the Ending balance
balance current period current period
Statutory surplus reserve 474,516,412.50 474,516,412.50
Total 474,516,412.50 474,516,412.50
38. Undistributed profit
In RMB
Item Current period Previous period
Undistributed profit at the end of previous 7,098,721,555.37 6,240,444,654.34
period before adjustment
Undistributed profit at the beginning of the 7,098,721,555.37 6,240,444,654.34
period after adjustment
Add: Net profits attributable to owners
of the parent company in the current 723,549,381.25 1,331,712,059.03
period
Dividends payable for ordinary shares 472,047,458.00 473,435,158.00
Undistributed profit at the end of the 7,350,223,478.62 7,098,721,555.37
period
Details of adjustment of undistributed profit at the beginning of the period:
1) Undistributed profit at the beginning of the period affected due to the retroactive adjustment of the Accounting Standards for
Business Enterprises and its related new regulations (RMB).
2) Undistributed profit at the beginning of the period affected due to the change in accounting policies (RMB).
3) Undistributed profit at the beginning of the period affected due to the correction of significant accounting errors (RMB).
4) Undistributed profit at the beginning of the period affected due to the change in the scope of consolidation caused by the common
control (RMB).
5) Total undistributed profits at the beginning of the period affected due to other adjustments (RMB).
39. Operating income and operating cost
In RMB
Amount of the current period Amount of the previous period
Item
Income Cost Income Cost
Main business 4,317,490,105.88 2,205,131,842.03 4,225,828,188.22 1,968,087,094.43
Other businesses 126,819,993.81 34,888,040.50 100,253,843.40 25,804,527.87
Total 4,444,310,099.69 2,240,019,882.53 4,326,082,031.62 1,993,891,622.30
40. Taxes and surcharges
In RMB
Item Amount of the current period Amount of the previous period
City maintenance and construction tax 15,541,302.70 18,048,209.85
Education surcharge 11,100,930.49 12,771,763.53
House tax 309,227.61 421,529.89
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Land use tax -4,382,947.50 61,524.00
Stamp tax 1,176,949.93 1,060,955.85
Vehicle and vessel usage tax 9,939.84 9,895.14
Environmental protection tax 4,621.17 4,349.86
Total 23,760,024.24 32,378,228.12
Other notes:
According to the Notice on Taxation Matters of Hangzhou Linping District Tax Service, State Taxation Administration (HLPT [2022]
No. 17731), the Company was exempted from the urban land use tax for the year 2021.
41. Sales expenses
In RMB
Item Amount of the current period Amount of the previous period
Marketing service expenses 631,391,446.17 658,869,399.50
Advertisement expenses 259,175,406.07 212,712,834.57
Employee remuneration 139,790,625.89 111,001,158.94
Booth decoration expenses 59,578,022.62 66,732,522.09
Promotional activity expenses 18,422,096.45 37,411,007.65
Material consumption 33,049,395.80 31,534,245.53
Business hospitality cost 7,472,828.11 7,040,351.39
Travel expenses 6,801,054.02 7,379,352.93
Rental fees 8,555,672.36 7,880,885.39
Intermediary service fees 7,477,610.64 7,606,687.09
Office expenses 4,560,789.33 7,154,345.09
Others 8,429,642.06 8,459,821.71
Total 1,184,704,589.52 1,163,782,611.88
42. Administrative expenses
In RMB
Item Amount of the current period Amount of the previous period
Employee remuneration 91,121,750.84 75,168,362.35
Depreciation and amortization 25,271,929.68 20,340,171.28
Consulting service fees 12,229,974.53 8,560,518.67
Maintenance expenses 10,083,182.01 8,390,641.09
Office expenses 6,639,136.07 6,978,151.70
Rental fees 5,712,938.91 9,087,992.71
Travel expenses 3,083,013.05 3,019,005.02
Business hospitality cost 4,374,301.07 3,159,347.68
Communication expense 2,918,739.13 2,603,129.38
Travel expenses 2,285,073.79 2,016,160.37
Costs of equity incentive 3,998,366.27 802,690.60
Material consumption 4,431,994.70 2,719,283.02
Others 11,433,464.52 7,147,655.30
Total 183,583,864.57 149,993,109.17
43. R&D expenses
In RMB
Item Amount of the current period Amount of the previous period
Employee remuneration 78,436,915.06 63,291,760.88
Direct input 73,217,115.42 61,648,388.01
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Depreciation and amortization 7,636,633.77 7,336,784.12
Design fees 2,899,636.01 4,232,409.85
Other expenses 7,178,345.27 6,923,863.26
Total 169,368,645.53 143,433,206.12
44. Financial expenses
In RMB
Item Amount of the current period Amount of the previous period
Interest expenses 1,018,439.59 1,228,635.41
Less: Interest income 60,042,815.83 50,677,538.57
Add: foreign exchange gain/loss -3,940,324.55 332,356.04
Add: other expenses 689,241.88 1,189,967.69
Total -62,275,458.91 -47,926,579.43
45. Other incomes
In RMB
Sources generating other incomes Amount of the current period Amount of the previous period
Financial support fund to boost the 49,775,390.00 35,660,000.00
corporate development
Amortization of deferred income 8,354,145.46 9,208,072.74
Tax rebate for sales of embedded software 23,286,694.84 7,323,753.03
Special funds for industrial development 9,608,719.00 2,350,852.22
Patent awards 1,175,521.65
Post allowance and social insurance 1,372,323.40 122,278.28
allowance
Refund of individual income tax handling 482,308.94 412,808.74
fee
VAT exemption or reduction 10,643.41
Other subsidies 5,000.00 9,000.00
46. Investment income
In RMB
Item Amount of the current period Amount of the previous period
Income from long-term equity investments -2,947,887.32 -1,440,070.07
accounted for using the equity method
Investment income during holding of
financial assets for trading 22,116,828.43 32,869,587.74
Total 19,168,941.11 31,429,517.67
47. Loss from credit impairment
In RMB
Item Amount of the current period Amount of the previous period
Bad debt losses of other receivables 4,029,453.07 -7,524,268.32
Bad debt losses on notes receivable 163,813,946.01 -23,680,868.74
Bad debt losses from accounts receivable -158,819,085.15 -287,302.15
Total 9,024,313.93 -31,492,439.21
48. Loss from asset impairment
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In RMB
Item Amount of the current period Amount of the previous period
II. Loss from obsolete inventory or from
impairment of the contract performance 24,056,013.60
costs
Total 24,056,013.60
49. Asset disposal income
In RMB
Sources of asset disposal income Amount of the current period Amount of the previous period
Non-current asset disposal income 37,838.75 -2,035,843.51
Including: income from disposal of fixed 37,838.75 -2,035,843.51
assets
Total 37,838.75 -2,035,843.51
50. Non-operating revenue
In RMB
Amount included in the
Item Amount of the current period Amount of the previous period current non-recurring gains
and losses
Government grants 13,000.00
Penalty income 13,200.00 13,200.00
Others 2,682,807.72 1,182,370.24 2,682,807.72
Total 2,696,007.72 1,195,370.24 2,696,007.72
Government grants included in the current profit or loss:
Amount of the previous Related to
Item Amount of the current period Source and basis assets/income
period
Subsidy for early scrapping of diesel 13,000.00 Related to
vehicle of national III emission income
standard
Total 13,000.00 — —
51. Non-operating expenditures
In RMB
Amount included in the
Item Amount of the current period Amount of the previous period current non-recurring gains
and losses
External donations 1,000,077.70 1,000,000.00 1,000,077.70
Amercement outlay 56,677.00 56,677.00
Losses from non-current asset 72,018.47 1,923.08 72,018.47
damage or retirement
Others 429,381.96 576,001.20 429,381.96
Total 1,558,155.13 1,577,924.28 1,558,155.13
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52. Income tax expenses
(1) Presentation of income tax expenses
In RMB
Item Amount of the current period Amount of the previous period
Current income tax expenses 183,792,350.28 221,466,949.04
Deferred income tax expenses -52,619,931.42 -77,977,344.97
Total 131,172,418.86 143,489,604.07
(2) Adjustment of accounting profit and income tax expenses
In RMB
Item Amount of the current period
Total profit 852,644,258.89
Income tax expense calculated based on statutory/applicable tax 127,896,638.88
rate
Effects of the subsidiaries’ application of different tax rates 181,089.38
Effects of the adjustment of income tax in previous period 175,155.04
Effects of the non-deductible costs, expenses and losses 3,181,949.83
Effects of using deductible losses of unrecognized deferred
income taxes in the previous period
Effects of the deductible temporary differences or deductible
losses of unrecognized deferred income tax assets in the current 920,789.79
period
Profit and loss of joint ventures and associated companies -442,183.10
accounted for by equity method
Effects of taxes deducted by research and development expense -741,020.96
addition (indicated with "-")
Income tax expense 131,172,418.86
53. Other comprehensive incomes
See 36. Other comprehensive incomes of Note VII for details.
54. Items in cash flow statement
(1) Other cash received from operating activities
In RMB
Item Amount of the current period Amount of the previous period
Interest revenue on deposits 60,042,815.83 50,677,538.57
Government grants 63,679,906.40 38,558,939.24
Revenue collected and payment made on 5,123,692.97 12,423,235.01
behalf of other agencies
Cash reserve 1,233,346.31 5,010,000.00
Guarantee and security deposits 14,850,829.06 9,382,127.28
L/C margin and bill acceptance margin 30,104,468.61
Other payments 2,891,773.89 2,652,812.06
Total 177,926,833.07 118,704,652.16
(2) Other cash paid in relation to operating activities
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In RMB
Item Amount of the current period Amount of the previous period
Period expenses 1,141,993,734.77 1,035,315,521.21
Revenue collected and payment made on 9,787,117.46 7,363,869.83
behalf of other agencies
Guarantee and security deposits 13,629,302.87 7,846,747.85
L/C margin and bill acceptance margin 21,530,136.56 10,236,863.39
Cash reserve 8,383,255.70 13,693,388.58
Others 5,565,795.10 1,029,155.95
Total 1,200,889,342.46 1,075,485,546.81
(3) Other cash received from financing activities
In RMB
Item Amount of the current period Amount of the previous period
Income from accounts receivable factoring 1,012,732.06 5,552,160.81
Total 1,012,732.06 5,552,160.81
(4) Other cash paid in relation to financing activities
In RMB
Item Amount of the current period Amount of the previous period
Expenditure for accounts receivable 3,516,183.32
factoring
Rental 3,020,626.80
Share repurchase 199,995,742.59
Total 6,536,810.12 199,995,742.59
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55. Supplementary information of Cash Flow Statement
(1) Supplementary information of Cash Flow Statement
In RMB
Supplementary information Current amount Amount of the previous
period
1. Reconciliation of net profit to cash flow from operating activities:
Net profit 721,471,840.03 799,645,675.31
Add: Asset impairment provision -24,056,013.60
Credit impairment provision -9,024,313.93 31,492,439.21
Depreciation of fixed assets, depreciation of oil and gas assets, and 60,134,937.59 51,125,161.10
depreciation of productive biological assets
Depreciation of right-of-use assets 2,735,187.20
Amortization of intangible assets 6,787,723.52 6,475,429.26
Amortization of long-term deferred expenses 2,454,162.19 1,613,095.73
Losses arising from disposal of fixed assets, intangible assets and other long-
term assets (gains expressed with "-") -37,838.75 2,035,843.51
Losses on disposal of fixed assets (gains indicated with "-") 72,018.47 1,923.08
Losses from fair value change (gains expressed with “-”)
Financial expenses (profit shall be indicated with"-") -2,921,884.96 264,556.23
Investment losses (gains expressed with “-”) -19,168,941.11 -31,429,517.67
Decrease in deferred income tax assets (increase shall be indicated with “-”) -54,426,406.39 -77,723,821.81
Increase in deferred income tax liabilities (decrease shall be indicated with “- 1,806,474.98 -253,781.85
”)
Decrease in inventories (increase shall be indicated with “-”) -28,800,735.18 -192,725,465.63
Decrease in operating receivables (increase shall be indicated with “-”) -137,525,667.47 -530,224,948.55
Increase in operating payables (decrease expressed with "-") -196,645,420.26 678,330,853.31
Others -8,405,382.14
Net cash flow from operating activities 322,855,122.33 730,222,059.09
2. Non-cash flow-involved major investing and financing activities:
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets acquired under financing leases
3． Net increase/decrease in cash and cash equivalents:
Ending balance of cash 3,327,149,844.76 4,141,495,878.43
Less: cash beginning balance 3,719,988,820.35 3,886,096,513.56
Add: ending balance of cash equivalents
Less: cash equivalents at the beginning of the period
Net increase in cash and cash equivalents -392,838,975.59 255,399,364.87
(2) Composition of cash and cash equivalents
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In RMB
Item Ending balance Beginning balance
I. Cash 3,327,149,844.76 3,719,988,820.35
Including: cash on hand 122,392.82 80,944.99
deposits available for payment at 3,326,702,947.52 3,718,304,060.33
any time
Other cash and cash equivalents
available for payment at any time 324,504.42 1,603,815.03
III. Balance of cash and cash equivalents 3,327,149,844.76 3,719,988,820.35
at the end of the period
56. Note to items in the Statement of Changes in Owner’s Equity
Name of the item under "Others" whose previous ending balance was adjusted, the adjusted amount and other matters: NA
57. Assets with restricted ownership and right to use
In RMB
Item Ending book value Reasons for limit
Cash and cash equivalents 73,638,194.15 L/G margin and note margin
Total 73,638,194.15
58. Foreign currency monetary item
(1) Foreign currency monetary item
In RMB
Item Ending balance in foreign Exchange rate for conversion Ending balance in RMB
currency
Cash and cash equivalents
Including: USD 9,527,417.96 6.7114 63,942,312.90
EUR 101.12 7.0084 708.69
AUD 3.29 4.6145 15.18
Accounts receivable
Including: USD 3,088,568.19 6.7114 20,728,616.53
EUR 289.60 7.0084 2,029.63
AUD 30.00 4.6145 138.44
Accounts received in advance
Including: AUD 41,826.83 4.6145 193,009.90
USD 338,682.83 6.7114 2,273,035.95
EUR 17,468.96 7.0084 122,429.46
(2) Description for overseas operating entities, including the disclosure of the main overseas business location,
bookkeeping base currency and selection basis for the important overseas operating entities as well as the
reason for the change of bookkeeping base currency (if any).
□Applicable √ Not applicable
59. Government grants
(1) Basic information about government grants
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In RMB
Type Amount Items Amounts included in
current profits and losses
2020 advantage enterprise cultivation funds 30,000,000.00 Other income 30,000,000.00
Tax rebate for sales of embedded software 23,286,694.84 Other income 23,286,694.84
2020 Yuhang District "Kunpeng" and "Quasi-Kunpeng" 18,715,390.00 Other income 18,715,390.00
enterprise cultivation funds
Fund subsidy for equipment under industrial economic policies 3,149,100.00 Other income 3,149,100.00
Subsidy for project of collaborative innovation of industrial 2,400,000.00 Other income 2,400,000.00
chains
R&D subsidy for science and technology enterprises in 1,988,200.00 Other income 1,988,200.00
Hangzhou
Post allowance and social insurance allowance 1,372,323.40 Other income 1,372,323.40
Financial rewards for enterprises with annual main business 1,000,000.00 Other income 1,000,000.00
income exceeding RMB 10 billion
Subsidy for the purchase of industrial robots in Shengzhou in 867,900.00 Other income 867,900.00
2021
Standardization project subsidy 835,120.00 Other income 835,120.00
Refund of individual income tax handling fee 482,308.94 Other income 482,308.94
2021 District Open 88 credit insurance policy subsidy 285,040.00 Other income 285,040.00
Special funds for the development of e-commerce industry in 200,000.00 Other income 200,000.00
2020
Funds (first batch) for the science and technology policy in 200,000.00 Other income 200,000.00
2022
Manufacturing industry incentive 170,000.00 Other income 170,000.00
Subsidy for protection of intellectual property rights 163,635.65 Other income 163,635.65
2022 Hangzhou special patent subsidy (first batch) 135,000.00 Other income 135,000.00
2021 Shaoxing intelligent manufacturing subsidy 100,000.00 Other income 100,000.00
New product project award (second batch) for the development 60,000.00 Other income 60,000.00
of private economy in 2020
Commendation and reward for key enterprises 60,000.00 Other income 60,000.00
The "795 Policy" subsidy 50,000.00 Other income 50,000.00
"Top ten industrial enterprises" in Shengzhou Sanjiang Sub- 50,000.00 Other income 50,000.00
district
Subsidies for encouraging intellectual property development 41,766.00 Other income 41,766.00
Incentives for encouraging industrial enterprises to increase 30,000.00 Other income 30,000.00
equipment investment
2021 Innovation voucher subsidy funds 28,479.00 Other income 28,479.00
Special funds for promotion of finance of the Linping District 20,000.00 Other income 20,000.00
Commerce Bureau
VAT exemption or reduction 10,643.41 Other income 10,643.41
Subsidy of the Linping District Commerce Bureau for 10,000.00 Other income 10,000.00
enhancing the level of commercial and trade development
Talent introduction and cultivation reward 5,000.00 Other income 5,000.00
Future Factory subsidy 1,250,000.00 Deferred 1,250,000.00
income
(2) Return of government grants
□Applicable √ Not applicable
VIII. Changes in the scope of consolidated financial statements
After being examined and approved by the President's Office Meeting of the Company, Hangzhou Jinhe Electric
Appliances Co., Ltd., a wholly-owned subsidiary, was established with a registered capital of RMB 10 million, and
its industrial and commercial registration formalities were completed on June 22, 2022.
IX. Interests in Other Entities
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1. Interests in subsidiaries
(1) Composition of the Robam Group
Principal place of Shareholding ratio Acquisition
Subsidiary Registration place Nature of business
business Direct Indirect method
Beijing Robam Beijing Beijing Sales of kitchen 100.00% Business
Appliances appliances combination
Sales Co., Ltd. under common
control
Shanghai Robam
Shanghai Shanghai Sales of kitchen 100.00% Business
Electric appliances combination under
Appliance
common control
Sales Co., Ltd.
Hangzhou Hangzhou Hangzhou Sales of kitchen 100.00%
MingQi Electric appliances Acquisition upon
Co., Ltd. its establishment
De Dietrich
Shanghai Shanghai Sales of kitchen 51.00% Acquired through
Household appliances investment
Appliances
Trading Production
Shengzhou Shengzhou 51.00%
(Shanghai) and sales of Business
Co., Ltd. kitchen combination not
Kitchen appliances under common
Appliances control
Co., Ltd.
Hangzhou Asset,
Hangzhou Hangzhou 100.00%
Robam investment
Fuchuang management, Acquisition upon
Investment etc. its establishment
Management
Co., Ltd.
Zhejiang Shengzhou Shengzhou Smart kitchen 32.13%
Cookingfuture design Acquisition upon
Technology its establishment
Co., Ltd.
Hangzhou Hangzhou Hangzhou Sales of kitchen 100.00
Jinhe Electric appliances Acquisition upon
Appliances its establishment
Co., Ltd.
Note: The basis for the Company to hold half or less of the voting rights of Zhejiang Cookingfuture Technology Co., Ltd. but still
control it: as the Company has a controlling relationship with Shengzhou Kinde, it also has a controlling relationship with its holding
subsidiary Zhejiang Cookingfuture Technology Co., Ltd.
(2) Major partially-owned subsidiaries
In RMB
Dividend declared and
Gains/losses attributable Balance of minority
Proportion of shares held to minority shareholders distributed to minority
Subsidiary shareholders’ equity at
by minority shareholders in the current period shareholders in the
the end of the period
current period
Shengzhou Kinde 49.00% -740,298.59 4,000,000.00 133,016,480.44
Intelligent Kitchen
Appliances Co., Ltd.
Zhejiang 37.00% -1,337,206.38 11,024,123.58
Cookingfuture
Technology Co., Ltd.
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(3) Main financial information of major partially-owned subsidiaries
In RMB
Ending balance Beginning balance
Subsidi
ary Non- Non-
Non- Current Total Non- Current Total
Current Total current Current Total current
current liabiliti liabiliti current liabiliti liabiliti
assets assets liabiliti assets assets liabiliti
assets es es assets es es
es es
156,5 345,6 502,2 175,4 43,31 218,7 215,5 309,6 525,1 204,3 35,11 239,4
Sheng 36,55 92,43 28,99 14,16 3,496 27,65 40,93 21,53 62,47 06,09 1,747 17,84
zhou 5.46 9.54 5.00 3.40 .47 9.87 6.45 5.16 1.61 5.17 .76 2.93
Kinde
Intelli
gent
Kitch
en
Appli
ances
Co.,
Ltd.
Zhejia 35,75 2,319 38,07 1,326 1,326 18,29 1,856 20,15 4,790 4,790
ng 4,206 ,556. 3,763 ,685. ,685. 5,624 ,306. 1,931 ,781. ,781.
.83 78 .61 00 00 .97 24 .21 30 30
Cooki
ngfutu
re
Techn
ology
Co.,
Ltd.
In RMB
Amount of the current period Amount of the previous period
Subsidiar
y
Cash flow Cash flow
Total Total
Operating from Operating from
Net profit comprehens Net profit comprehens
income operating income operating
ive income ive income
activities activities
Shengzhou 77,502,270.7 - - - 124,027,172. 20,862,147.6 20,862,147.6 6,936,248.30
Kinde 9 2,848,019 2,848,019 21,169,06 62 6 6
Intelligent .82 .82 4.76
Kitchen
Appliances
Co., Ltd.
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Zhejiang 593,200,0 - - - - - -
Cookingfu 2 3,614,071 3,614,071 10,664,34 3,217,615 3,217,615 4,240,135
ture .30 .30 9,92 .53 .53 .64
Technolog
y Co., Ltd.
3. Interests in joint ventures or associated companies
(1) Minor joint ventures or associated companies
Accounting
Name of joint Principal place Registration Nature of treatment of
ventures or Shareholding ratio
of business place business investment in
associated joint ventures
companies or associated
Direct Indirect
companies
De Dietrich
Trade Shanghai Shanghai Sales of kitchen 51.00% Equity method
appliances
(Shanghai)
Co., Ltd.
Zhejiang
Hangzhou Hangzhou Retail 40.00% Equity method
Tingshuo
Brand
Operation and
Management
Co., Ltd.
Shaoxing
Shaoxing Shaoxing Sales of kitchen 40.00% Equity method
Shuaige appliances
Kitchen &
Bathroom
Technology
Co., Ltd.
(2) Summary of the financial information of minor joint ventures or associated companies
In RMB
Ending balance/amount incurred in current Beginning balance/amount of the previous
period period
Joint venture:
Total book value of investment 5,262,742.02 3,661,700.03
Totals of the following items calculated as
per respective shareholding proportion
--Net profit -2,538,958.01 208,930.44
-Total comprehensive income -2,538,958.01 208,930.44
Associated company:
Total book value of investment 1,334,500.57 1,743,429.88
Totals of the following items calculated as
per respective shareholding proportion
--Net profit -408,929.31 -256,570.12
-Total comprehensive income -408,929.31 -256,570.12
X. Risks Related to Financial Instruments
Major financial instruments of the Company include receivables and payables. See the note for detailed description
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of these financial instruments. Risks related to these financial instruments and risk management policies adopted by the
Company to reduce such risks are outlined as follows. The management of the Company manages and monitors such
risk exposures to ensure to keep the risks above within limited scope.
1. The Company’s various risk management objectives and policies are outlined as follows:
Risk management conducted by the Company is to properly balance risk and income, minimize negative impacts
of the risks on the Company’s business performance and maximize benefits of the shareholders and other equity
investors. Based on the risk management objective, the Company’s basic risk management policy is to determine and
analyze all kinds of risks faced by the Company, establish appropriate risk bottom line for risk management, and
monitor all risks promptly and reliably keep risks within a limited range.
(1) Market risk – price risk
Since the Company sells its products at market prices, it may be affected by such price fluctuations.
(2) Credit risk
As of June 30, 2022, the largest credit risk exposure that may bring financial loss to the Company mainly comes
from the Company’s financial assets loss caused by the other party’s failure to perform its obligations in the contract,
particularly including the loss in the book value of recognized financial assets in the consolidated balance sheet.
To reduce credit risk, the Company has a dedicated team responsible for determining the credit line, conducting
credit approval and implementing other monitoring procedures, to ensure that necessary measures are taken to recover
due debt. In addition, the Company reviews the recovery of each account payable on each balance sheet date, so as to
ensure sufficient bad debt provisions for unrecoverable accounts. Therefore, the management of the Company holds
that the credit risk faced by the Company has been significantly reduced.
The credit risk of the Company’s liquid capital is low since it is deposited at banks with relatively high credit rating.
Because the risk exposures of the Company are related to multiple contracting parties and multiple clients, the Company
has no major credit risk concentration.
The Company adopts necessary policies to ensure all of the clients involved in the sales of our products have good
credit record. The Company has no major credit risk concentration.
The receivables of the top five contracting parties totaled RMB 1,254,911,112.52.
Other receivables of the top five contracting parties totaled RMB 40,895,433.56.
(3) Liquidity risk
Liquidity risk is faced by the Company where it cannot meet its financial obligations as they fall due. The
Company manages the liquidity risk by ensuring capital liquidity to fulfill its due obligations to avoid unacceptable
losses or damage to corporate reputation. The Company management has closely examined the liquid capital of the
Company and regularly analyzed the liability structure/term, bank lines and so on to endure fund sufficiency. It is
concluded that the Company has sufficient funds to meet the demands of short-term debt and capital expenditure of
the Company. Analysis of the financial assets and financial liabilities of the Company as per maturity of the
undiscounted contract obligations remained is made as follows:
Amount on June 30, 2022
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Item
Within 1 year 1-2 years 2-5 years Over 5 years Total
Financial assets
Cash and cash equivalents 3,400,788,038.91 3,400,788,038.91
Financial assets held for 2,884,760,000.00 2,884,760,000.00
trading
Notes receivable 1,308,046,816.29 1,308,046,816.29
Accounts receivable 1,640,360,454.56 1,640,360,454.56
Other receivables 105,383,151.12 105,383,151.12
Financial liabilities
Short-term borrowings 39,657,061.74 39,657,061.74
Notes payables 809,469,587.67 809,469,587.67
Accounts payable 2,303,202,819.34 2,303,202,819.34
Other payables 269,409,072.30 269,409,072.30
Payroll payable 53,282,842.44 53,282,842.44
Other current liabilities 115,300,198.58 115,300,198.58
Non-current liabilities 5,414,420.90 5,414,420.90
due within one year
Lease liabilities 3,498,355.33 8,140,360.20 6,936,914.31 18,575,629.84
(4) Sensitivity analysis on foreign exchange risks
The exchange rate risk borne by the Company is mainly associated with USD, Euro and HKD, etc. The foreign
exchange risk borne by the Company is mainly associated with USD (which shall be changed according to relevant
realities). As of June 30, 2022, the Company's balances of assets and liabilities are in RMB (except for the balances of
the assets and liabilities in foreign currency in "VII. 58 Foreign currency monetary item" in this Note). Exchange risk
resulting from the assets and liabilities whose balances are in foreign currency may affect the Company’s performance.
The Company pays close attention to the impact of change in exchange rate on the Company’s exchange risk.
Currently, the Company hasn’t adopted any measures to avoid foreign exchange risk.
XI. Disclosure of Fair Value
1. Assets and liabilities measured at fair value at the end of the period
In RMB
Ending fair value
Item
Fair value measurement Fair value measurement Fair value measurement
(Level 1) (Level 2) (Level 3) Total
Continuous fair value
measurement -- -- -- --
(I) Financial assets
held for trading 2,884,760,000.00 2,884,760,000.00
1. Financial assets
measured at fair value 2,884,760,000.00 2,884,760,000.00
with changes included
in current profit or
loss
(1) Financial products 2,884,760,000.00 2,884,760,000.00
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2. Financial assets
measured at fair value 2,116,023.22 2,116,023.22
with changes included
in current profit or
loss
(III) Investment in
other equity 2,116,023.22 2,116,023.22
instruments
Total assets measured
continuously at fair 2,886,876,023.22 2,886,876,023.22
value
II. Non-continuous
-- -- -- --
fair value
measurement
2. Valuation techniques adopted and qualitative and quantitative information on important parameters for
the items involved in Level 3 continuous and non-continuous fair value measurement
Item June 30, 2022 Valuation Significant Relationship between
Fair value techniques unobservable unobservable value
financial products 2,884,760,000.00 Optimal fair value value
Investment and fair value
—
estimation cost
Shanghai MXCHIP
2,116,023.22 Optimal fair value Investment —
Information Technology
estimation cost
Co., Ltd.
Due to the deterioration of the operating environment, operating conditions and financial situation of
the invested enterprise, Suzhou Industrial Park Ruican Investment Enterprise (Limited Partnership),
the Company measured it with zero as a reasonable estimate of fair value.
XII. Related Party and Related Party Transactions
1. The Company’s parent company
Proportion of the Proportion of
Company’s shares voting right of the
Parent company Registration place Nature of business Registered capital held by the parent parent company in
company the Company
Hangzhou Hangzhou, Zhejiang Investment and RMB 60 million 49.68% 49.68%
Robam Industrial industrial
Group Co., Ltd. management
The ultimate controlling party of the Company is Ren Jianhua
2. The Company’s subsidiaries
See the Note for more about the Company’s subsidiaries.
3. The Company's joint ventures and associated companies
See the Note for more about the Company’s major joint ventures or associated companies.
4. Other related parties
Name of other related parties Relation between other related parties and the Company
Hangzhou Amblem Household Co., Ltd. Controlled by the same ultimate controlling party
Hangzhou Yuhang Robam Fuel Station Co., Ltd. Controlled by the same ultimate controlling party
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Hangzhou Nbond Nonwovens Co., Ltd. Controlled by the same ultimate controlling party
Hangzhou Yuhang Yaguang Spray Coating Factory Other related parties
Hangzhou City Garden Hotel Co., Ltd. Other related parties
Hangzhou Bonyee Daily Necessity Technology Co., Ltd. Controlled by the same ultimate controlling party
Shaoxing Kinde Electric Appliances Co., Ltd. Other related parties
Hangzhou Guoguang Touring Commodity Co., Ltd. Controlled by the same ultimate controlling party
Hangzhou Small Planter Technology Co., Ltd. Controlled by the same ultimate controlling party
Hangzhou Linping ROBAM Charity Foundation Other related parties
5. Connected transactions
(1) Connected transactions regarding purchasing and selling goods and providing and accepting labor
services
Table of goods purchase and labor services receiving
In RMB
Description of the Whether exceeds the
Amount of the current Amount of the
Related parties connected approved limited or not
period previous period
transactions (Y/N)
Hangzhou Yuhang Yaguang Spray Receiving of labor 3,910,128.45 No 4,188,923.61
Coating Factory services
Hangzhou Small Planter Technology Co., Purchase of goods 1,767,541.39 No 2,277,929.75
Ltd.
Hangzhou Amblem Household Co., Ltd. Purchase of goods 19,517,425.33 No 413,419.77
Hangzhou Yuhang Robam Fuel Station Purchase of goods 485,747.10 No 299,710.75
Co., Ltd.
Zhejiang Tingshuo Brand Operation and Receiving of labor 200,000.00 No
Management Co., Ltd. services
Shaoxing Shuaige Kitchen & Bathroom Purchase of goods 376,177.00 No
Technology Co., Ltd.
Hangzhou City Garden Hotel Co., Ltd.Receiving of labor No 201,474.34
services
Hangzhou Guoguang Touring Commodity Purchase of goods 85,584.42 No 70,568.15
Co., Ltd.
Hangzhou Bonyee Daily Necessity Purchase of goods 8,344.42 No 424.78
Technology Co., Ltd.
Table of goods sales and labor services provision
In RMB
Related parties Description of the Amount of the Amount of the
connected current period previous period
Hangzhou Amblem Household Co., Ltd. Saletransactions 2,332,591.12 7,335,655.75
Hangzhou Nbond Nonwovens Co., Ltd. Sale of goods 10,746.90
Hangzhou Linping ROBAM Charity Foundation Sale of goods 696,446.84 13,100.00
(2) Related lease
The Company acts as the lessor:
In RMB
Lessee Type of leased asset Rental income recognized Lease income recognized in
in the current period the previous period
Hangzhou Robam Industrial Group Housing 14,400.00 14,400.00
Co., Ltd.
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The Company acts as the Lessee:
In RMB
Rental costs of Variable lease
short-term leases payments not Interest expenses Increased right-
Rental paid
Lessor Type and low-value included in lease on lease of-use
of asset leases with liabilities for liabilities assets
leased simplified measurement (if assumed
asset treatment (if applicable)
applicable)
Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun
t of t of t of t of t of t of t of t of t of t of
the the the the the the the the the the
curre previ curre previ curre previ curre previ curre previ
nt ous nt ous nt ous nt ous nt ous
perio perio perio perio perio perio perio perio perio perio
d d d d d d d d d d
Hangz
hou Housing 275,01 275,01
Robam 2.28 2.28
Industr
ial
Group
Co.,
Ltd.
(3) Remuneration of key management personnel
In RMB
Item Amount of the current period Amount of the previous period
Total remuneration 4,198,071.27 3,165,800.00
6. Receivables and payables of related parties
(1) Receivables: None
(2) Payables
In RMB
Book balance at the end of the Initial book balance at the
Name of item Related parties
period beginning of the period
Accounts payable Hangzhou Yuhang Yaguang Spray 2,391,109.79 3,543,430.78
Coating Factory
Accounts payable Hangzhou Yuhang Robam Fuel Station 2,272,284.87 1,723,356.74
Co., Ltd.
Accounts payable Hangzhou Guoguang Touring 24,000.00 23,605.20
Commodity Co., Ltd.
Accounts payable Hangzhou Amblem Household Co., 873,629.56
Ltd.
Accounts payable Hangzhou Small Planter Technology 925,935.50
Co., Ltd.
Accounts payable Shaoxing Shuaige Kitchen & 328,876.46
Bathroom Technology Co., Ltd.
Other payables Hangzhou Yuhang Yaguang Spray 200,000.00 200,000.00
Coating Factory
Other payables Hangzhou Guoguang Touring 2,000.00 2,000.00
Commodity Co., Ltd.
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Accounts received in Hangzhou Linping ROBAM 380,400.00
advance Charity Foundation
XIII. Share Payment
1. Overview of share payment
□Applicable √Not applicable
2. Equity-settled share payment
□Applicable √Not applicable
3. Cash-settled share payment
□Applicable √Not applicable
4. Modification and termination of share payment
5. Others
XIV. Commitments and contingencies
1. Major commitments
Major commitments on the balance sheet date
The Company has made a capital contribution of RMB 4.0 million to Zhejiang Tingshuo Brand Operation and Management Co., Ltd.,
an associate company, and has made a paid-up capital contribution of RMB 2.0 million, representing 40% of the equity, with RMB 2.0
million still outstanding. In addition to the above commitments, as of the day of submission of the Financial Statements, the Company
has no other major commitments.
2. Contingencies
(1) Major contingencies on the balance sheet date
As of June 30, 2022, the Company has no major contingencies that need to be disclosed
(2) It is also necessary to make it clear hereby that the Company has no major contingencies that need to be
disclosed.
The Company has no major contingency that need to be disclosed.
XV. Events After the Balance Sheet Date
As of June 30, 2022, the Company has no events after the Balance Sheet date to be disclosed.
XVI. Other Significant Events
On April 14, 2021, the Company held the Fourth Meeting of the Fifth Session of the Board of Directors, and deliberated and
adopted relevant proposals such as Business Partner Stock Ownership Plan (Draft) and 2021 Stock Option Incentive Plan (Draft). It was
decided to take the operating income and net profit attributable to the mother company after deducting non-recurring gains and losses
from 2021 to 2023 as the main performance appraisal target, to implement the Business Partner Stock Ownership Plan for the core
management personnel of the Company (including subsidiaries) who play an important role in the overall performance and
development of the Company, including directors (excluding independent directors), general managers, deputy general managers, senior
directors and directors, and to provide stock option incentives for 142 middle management personnel and core technical (business)
backbone of the Company.
On April 30, 2021, the first extraordinary general meeting of shareholders of the Company in 2021 deliberated and adopted the
above proposals, and determined May 10, 2021 as the first grant date of stock options under this Stock Option Incentive Plan, with
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3,130,000 stock options granted and 138 persons granted in 2021.
The Company used the internationally accepted Black-Scholes Option Pricing Model to estimate the fair value of the stock
options granted for the first time under this Plan. The amount of the services obtained in the current period included in the related costs
and capital reserve was RMB 2,422,022.38.
On March 31, 2022, the Company held the Ninth Meeting of the Fifth Session of the Board of Directors, and deliberated and
adopted relevant proposals such as the 2022 Stock Option Incentive Plan (Draft). It was decided to take the operating income from 2022
to 2024 as the main performance appraisal target, and to provide stock option incentives for 285 middle management personnel and core
technical (business) backbone of the Company.
On April 21, 2022, the first extraordinary general meeting of shareholders of the Company in 2022 deliberated and adopted the
above proposals, and determined May 10, 2022 as the first grant date of stock options under this Stock Option Incentive Plan, with
4,810,000 stock options granted and 285 persons granted in 2022.
On May 26, 2022, the Company completed the registration of the grant of the Stock Option Incentive Plan. As the departed
employees did not have the qualification of incentive targets, the number of incentive targets actually granted under this Stock Option
Incentive Plan was adjusted from 285 to 282, and the total number of stock options actually granted was adjusted from 4.81 million to
4.78 million, accounting for 0.50% of the current total capital stock of the Company.
The Company used the internationally accepted Black-Scholes Option Pricing Model to estimate the fair value of the stock
options granted for the first time under this Plan. The amount of the services obtained in the current period included in the related costs
and capital reserve was RMB 1,576,343.89.
As of June 30, 2022, the Company has no other significant events that need to be disclosed.
XVII. Notes to Main Items of the Financial Statements of the Parent Company
1. Accounts receivable
(1) Classified disclosure of accounts receivable
In RMB
Ending balance Beginning balance
Book balance Bad debt reserve Book Book balance Bad debt reserve
value
Type Percenta Book
Percentag
Percentage e of Percentage ge of value
Amount Amount Amount Amount provision
(%) provision (%)
Accou
nts
receiva 791,884 33.47% 704,414 88.95% 87,470, 628,127 29.39% 551,636 87.82% 76,490,
ble ,407.62 ,394.12 013.50 ,248.06 ,286.07 961.99
with
individ
ual bad
debt
provisi
ons
Including:
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Provisi 791,884 33.47% 704,414 88.95% 87,470, 628,127 29.39% 551,636 87.82% 76,490,
on by ,407.62 ,394.12 013.50 ,248.06 ,286.07 961.99
individ
ual
item
Accou
nts 1,573,8 1,480,2 1,509,3 1,420,2
receiva 66.53% 93,580, 5.95% 70.61% 89,120, 5.90%
14,171. 33,587. 21,539. 00,865.
ble 584.45 674.12
66 21 72 60
with a
collecti
ve bad
debt
provisi
on
Including:
Accou 49,434, 2.09% 0.00% 49,434, 13,799, 0.64% 13,799,
nts 128.61 128.61 399.00 399.00
receiva
ble
groupe
d
accordi
ng to
related
parties
Multiple
accounts
receivab 1,524,3 1,430,7 1,495,5 1,406,4
93,580, 89,120,
le which 80,043. 64.44% 584.45 6.14% 99,458. 22,140. 69.97% 674.12 5.96% 01,466.
are 05 60 72 60
grouped
by
expected
credit
loss
based on
their age
characte
ristics
and with
a
collectiv
e bad
debt
provisio
n
2,365,6 1,567,7 2,137,4 1,496,6
Total 100.00% 797,994 33.73% 100.00% 640,756 29.98%
98,579. 03,600. 48,787. 91,827.
,978.57 ,960.19
28 71 78 59
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Individual bad debt provision: Provision for bad debts by individual item
In RMB
Ending balance
Name
Book balance Bad debt reserve Percentage of provision Reasons for provision
Unit 1 613,202,711.42 613,202,711.42 100.00% Debt default
Unit 2 68,795,196.31 13,759,039.26 20.00% Debt rollover
Unit 3 27,760,507.34 19,432,355.14 70.00% Full recovery is
expected to be difficult
Unit 4 20,766,804.51 14,536,763.16 70.00% Full recovery is
expected to be difficult
Unit 5 19,980,052.93 13,986,037.05 70.00% Full recovery is
expected to be difficult
Unit 6 14,247,715.67 9,973,400.97 70.00% Full recovery is
expected to be difficult
Unit 7 9,243,574.60 6,470,502.22 70.00% Full recovery is
expected to be difficult
Unit 8 8,070,171.98 5,649,120.39 70.00% Full recovery is
expected to be difficult
Unit 9 3,654,431.88 2,558,102.32 70.00% Full recovery is
expected to be difficult
Unit 10 2,887,210.93 2,021,047.65 70.00% Full recovery is
expected to be difficult
Unit 11 1,773,645.05 1,773,645.05 100.00% Debt default
Unit 12 1,502,385.00 1,051,669.49 70.00% Full recovery is
expected to be difficult
Total 791,884,407.62 704,414,394.12
Collective bad debt provision: for multiple accounts receivable grouped by expected credit loss based on their age characteristics,
their bad debts are provided for collectively.
In RMB
Ending balance
Name
Book balance Bad debt reserve Percentage of provision
Within 1 year 1,262,166,953.38 63,108,347.67 5.00%
1--2 years 243,801,231.91 24,380,123.19 10.00%
2--3 years 12,395,441.23 2,479,088.25 20.00%
3--4 years 4,531,460.52 2,265,730.26 50.00%
4--5 years 688,304.63 550,643.70 80.00%
More than 5 years 796,651.38 796,651.38 100.00%
Total 1,524,380,043.05 93,580,584.45
Collective bad debt provision: Accounts receivable grouped according to related parties with a collective bad debt provision
In RMB
Ending balance
Name
Book balance Bad debt reserve Percentage of provision
Accounts receivable grouped 49,434,128.61
according to related parties
Total 49,434,128.61
If the bad debt provision for accounts receivable is made according to the general model of expected credit loss, please refer to the
disclosure methods of other receivables to disclose the relevant information about the provision for bad debts:
□Applicable √Not applicable
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Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2022
Disclosed based on the aging of receivables
In RMB
Aging Ending balance
Within 1 year (including 1 year) 1,524,263,631.65
Within 1 year (including 1 year) 1,524,263,631.65
1-2 years 668,877,985.79
2-3 years 164,117,526.11
More than 3 years 8,439,435.73
3-4 years 6,805,809.32
4-5 years 836,975.03
More than 5 years 796,651.38
Total 2,365,698,579.28
(2) Bad debt provision, and its recovery or reversal in the current period
Provision for bad debts in the current period:
In RMB
Amount of change in the current period
Type Beginning Ending balance
balance Provision Recovery or Write-
reversal Others
off
Bad debt reserves for 640,756,960.19 183,880,301.16 26,642,282.78 797,994,978.57
accounts receivable
Total 640,756,960.19 183,880,301.16 26,642,282.78 797,994,978.57
(3) Top five debtors with the biggest ending balances of receivables
In RMB
Unit Ending balance of accounts Proportion in the total ending Ending balance of bad debt
receivable balance of accounts receivable reserves
Unit 1 614,426,565.71 25.97% 37,344,885.46
Unit 2 422,007,941.34 17.84% 422,007,941.34
Unit 3 95,125,955.20 4.02% 95,125,955.20
Unit 4 68,013,931.65 2.88% 3,400,696.58
Unit 5 55,059,796.18 2.33% 2,752,989.81
Total 1,254,634,190.08 53.04%
2. Other receivables
In RMB
Item Ending balance Beginning balance
Other receivables 92,064,235.68 66,149,239.78
Total 92,064,235.68 66,149,239.78
(1) Other receivables
1) Classification of other receivables by nature
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In RMB
Nature of receivable Initial book balance at the beginning of the
Book balance at the end of the period
period
Collections by a third party 61,100,121.97 39,389,486.99
Security/guarantee deposits 29,918,951.94 41,547,121.13
Related transactions 4,064,000.00 4,064,000.00
Withholdings 5,433,817.70 2,646,050.39
Cash reserve 5,764,647.00 966,513.08
Others 3,607,713.93 6,021.99
Total 109,889,252.54 88,619,193.58
2) Bad debt provision
In RMB
Phase I Phase II Phase III
Bad debt reserve Expected credit loss over the Expected credit loss over the Total
Expected credit loss
entire duration (without credit entire duration (with credit
over the next 12 months
impairment) impairment)
Balance on
22,469,953.80 22,469,953.80
January 1, 2022
Balance on
January 1, 2022 in
the current period
Provision in the
current period -4,644,936.94 -4,644,936.94
Balance on June
30, 2022 17,825,016.86 17,825,016.86
Changes in the book balance with significant change in amount of the loss provision in the current period
□Applicable √ Not applicable
Disclosed based on the aging of receivables
In RMB
Aging Ending balance
Within 1 year (including 1 year) 87,599,700.03
Within 1 year (including 1 year) 87,599,700.03
1-2 years 6,163,068.61
2-3 years 1,935,029.70
More than 3 years 14,191,454.20
3-4 years 3,004,501.80
4-5 years 1,234,124.00
More than 5 years 9,952,828.40
Total 109,889,252.54
3) Bad debt provision, and its recovery or reversal in the current period
Provision for bad debts in the current period:
In RMB
Amount of change in the current period
Type Beginning balance Recovery or Ending balance
Provision Write-off Others
reversal
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Bad debt provision for other 22,469,953.80 -4,644,936.94 17,825,016.86
receivables
Total 22,469,953.80 -4,644,936.94 17,825,016.86
4) Top five debtors with the biggest ending balances of other receivables
In RMB
Proportion in the total
Ending balance of
Unit Nature of receivable Ending balance Aging ending balance of other
bad debt provision
accounts receivable
Unit 1 Collections by a third 27,716,044.47 Within 1 25.22% 1,385,802.22
party year
Unit 2 Withholdings 5,416,389.09 Within 1 4.93% 270,819.45
year
Unit 3 Security/guarantee 4,928,000.00 More than 4.48% 4,928,000.00
deposits 5 years
Unit 4 Borrowings 4,064,000.00 More than 3.70% 4,064,000.00
5 years
Unit 5 Security/guarantee 1,660,000.00 Within 1 1.51% 83,000.00
deposits year
Total 43,784,433.56 39.84% 10,731,621.67
3. Long-term equity investment
In RMB
Item Ending balance Beginning balance
Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investments in 257,215,768.06 20,400,000.00 236,815,768.06 257,032,370.17 20,400,000.00 236,632,370.17
subsidiaries
Investments in
2,457,242.59 0.00 2,457,242.59 5,405,129.91 0.00 5,405,129.91
joint ventures
and associated
companies
Total 259,673,010.65 20,400,000.00 239,273,010.65 262,437,500.08 20,400,000.00 242,037,500.08
(1) Investment in subsidiaries
In RMB
Increase/decrease in the current period
Neg Ending balance of
Beginning balance Provisio Ending balance (book
Investee ative impairment
(book value) n for Oth value)
Additional inve provision
investment impairm er
stme
ent
nt
Shengzhou Kinde 162,320,000.00 162,320,000.00
Intelligent Kitchen
Appliances Co.,
Ltd.
Hangzhou MingQi 52,028,217.25 183,397.89 52,211,615.14
Electric Co., Ltd.
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De Dietrich 630,900.00 630,900.00 20,400,000.00
Household
Appliances Trading
(Shanghai) Co.,
Ltd.
Shanghai Robam 5,838,272.10 5,838,272.10
Appliances Sales
Co., Ltd.
Beijing Robam 5,814,980.82 5,814,980.82
Appliances Sales
Co., Ltd.
Hangzhou Robam
10,000,000.00 10,000,000.00
Fuchuang Investment
Management Co.,
Ltd.
Total 236,632,370.17 183,397.89 236,815,768.06 20,400,000.00
(2) Investment in joint ventures and associated companies
In RMB
Increase/decrease in the current period
Adjust Ending
Cash
ment Othe balance
Add Neg divide Prov
Beginning Investment profit of r of
ition ativ nds or ision Ending balance
Investee balance (book or loss other chan impairm
al e profits for Oth (book value)
value) recognized using compr ges ent
inve inve declare impa er
the equity ehensi in provisio
stm stm d and irme
method ve equit n
ent ent distrib nt
incom y
uted
e
I. Joint venture
De
Dietrich 3,661,700.03 -2,538,958.01 1,122,742.02
Trade
(Shanghai)
Co., Ltd.
Subtotal 3,661,700.03 -2,538,958.01 1,122,742.02
II. Associated companies
Zhejiang
Tingshuo
1,743,429.88 -408,929.31 1,334,500.57
Brand
Operation
and
Managem
ent Co.,
Ltd.
Subtotal 1,743,429.88 -408,929.31 1,334,500.57
Total 5,405,129.91 -2,947,887.32 2,457,242.59 0.00
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4. Operating income and operating cost
In RMB
Amount of the current period Amount of the previous period
Item
Income Cost Income Cost
Main business 4,044,712,473.72 2,113,758,543.93 3,860,204,084.81 1,841,874,747.10
Other businesses 114,887,076.86 33,163,443.14 97,090,873.20 25,560,127.41
Total 4,159,599,550.58 2,146,921,987.07 3,957,294,958.01 1,867,434,874.51
5. Investment income
In RMB
Item Amount of the current period Amount of the previous period
Income from long-term equity investments -2,947,887.32 -1,440,070.07
accounted for using the equity method
Investment income during holding of financial 20,586,968.04 53,886,727.88
assets for trading
Total 17,639,080.72 52,446,657.81
6. Others
XVIII. Supplementary Information
1. Breakdown of non-recurring profits and losses in the current period
√Applicable □Not applicable
In RMB
Item Amount Description
Gains and losses from disposal of non-current assets -34,179.72
Government subsidy included in current gains and losses (except
the government subsidy closely related to the Company’s normal 70,291,099.51
business, in line with national policy and enjoyed by quota or
ration in accordance with the unified national standard)
Reversal of provision for impairment of receivables separately tested 35,248,286.47
for impairment
Other non-operating income and expenses except the above items 1,209,871.06
Less: Affected amount of income tax 16,069,241.63
Affected amount of minority shareholders’ equity 2,941,538.51
Total 87,704,297.18 --
Other items of gains and losses meeting the definition of non-recurring gains and losses:
□Applicable √Not applicable
The Company does not have other items of gains and losses meeting the definition of non-recurring gains and losses.
Explanation on the circumstance where items of the non-recurring gains and losses listed in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering Their Securities to the Public — Non-recurring Gains and Losses (referred to as
“Announcement No.1”) are defined as recurring gains and losses
□Applicable √Not applicable
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2. Return on equity and earnings per share (EPS)
EPS
Profit within the Reporting Period Weighted average
return on net assets Basic earnings per share (EPS)
Diluted EPS (RMB/share)
(RMB/share)
Net profit attributable to common 8.05% 0.76 0.76
stockholders of the Company
Net profit attributable to common
shareholders of the Company after 9.49% 0.83 0.83
deducting non-recurring profits and
losses
3. Accounting data differences under domestic and foreign accounting standards
(1) Differences of net profits and net assets in the Financial Reports disclosed as per the IAS and CAS
□Applicable √Not applicable
(2) Differences of net profits and net assets in the Financial Reports disclosed as per the foreign accounting
standard and CAS
□Applicable √Not applicable
(3) Explanation on the reasons for accounting data differences under domestic and foreign accounting
standards shall be made, and where data audited by an overseas audit institution has been adjusted based on
the differences, the name of the overseas audit institution shall be indicated.
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