Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
April 2023
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
2022 Full Annual Report
Section 1 Important Notes, Contents and Definitions
The board of directors, the board of supervisors and directors, supervisors and senior management of the Company hereby
guarantee that no false or misleading statement or major omission was made to the materials in this report and that they will
assume all the responsibility, individually and jointly, for the authenticity, accuracy and completeness of the contents of the annual
report.
Ren Jianhua, the head of the Company, Zhang Guofu, the head of accounting work, and Zhang Guofu, the head of accounting
body (accountant in charge), guarantee the authenticity, accuracy and completeness of the financial report in this annual report.
All directors of the Company personally attended the board meeting for reviewing this report.
The Company has risks such as policy fluctuations in the real estate market, price fluctuations of raw materials and intensifying
market competition. Please pay attention to the investment risks.
The preplanned profit distribution deliberated and approved by the board of directors is as follows: taking 944,094,916 shares as
the radix, the Company will send cash dividends of RMB 5 (tax included) and 0 bonus share (tax included) to all shareholders for
every 10 shares, and instead of converting capital reserve into share capital.
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Contents
Section 1 Important Notes, Contents and Definitions ........................................................................................ 2
Section 2 Company Profile and Major Financial Indicators ............................................................................. 6
Section 3 Management Discussion and Analysis ............................................................................................... 10
Section 4 Corporate Governance ....................................................................................................................... 22
Section 5 Environmental and social responsibility ........................................................................................... 37
Section 6 Important Matters............................................................................................................................... 38
Section 7 Changes in Shares and Shareholders ................................................................................................ 43
Section 8 Preferred Shares.................................................................................................................................. 49
Section 9 Corporate Bonds ................................................................................................................................. 50
Section 10 Financial Report ................................................................................................................................ 51
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Directory of documents available for inspection
I. Financial statements containing signatures of the legal representative, the head of accounting work, and the head of
accounting body with seals.
II. Original audit report stamped by ShineWing Certified Public Accountants (Special general partnership) and signed and
stamped with the certified public accountants.
III. Original copies of the documents and announcement of the Company published on the newspaper designated by the CSRC
in the reporting period.
IV. 2022 annual report of the Company signed by the legal representative.
V. Other relevant information.
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Definitions
Terms Refers to Definition
The Company, company, ROBAM Appliances Refers to Hangzhou ROBAM Appliances Co., Ltd.
Mingqi Refers to Hangzhou Mingqi Electric Co., Ltd.
Shengzhou Kinde Intelligent Kitchen
Kinde Intelligent Refers to
Electric Co., Ltd.
Hangzhou Jinhe Electric Appliances Co.,
Jinhe Electric Appliances Refers to
Ltd
Hangzhou ROBAM Industrial Group Co.,
ROBAM Group Refers to Ltd., controlling shareholder of the
Company
Reporting period Refers to Year 2022
Beijing All View Cloud Data Technology
AVC Refers to
Co., Ltd.
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Section 2 Company Profile and Major Financial Indicators
I. Company Information
Stock abbreviation ROBAM Stock code 002508
Stock exchange for stock listing Shenzhen Stock Exchange
Company name in Chinese Hangzhou ROBAM Appliances Co., Ltd.
Company short name in Chinese ROBAM
Company name in English (if any) HANGZHOU ROBAM APPLIANCES CO.,LTD.
Company short name in English (if
ROBAM
any)
Legal representative of the
Ren Jianhua
Company
No. 592 Linping Av., Yuhang Economic Development Zone, Yuhang District, Hangzhou City,
Registered address
Zhejiang Province
Postal code of the registered
311100
address
Historical changes of the
N/A
Company's registered address
No. 592 Linping Av., Yuhang Economic Development Zone, Yuhang District, Hangzhou City,
Office address
Zhejiang Province
Postal code of the office address 311100
Company website http://www.robam.com/
Email robam@robam.com
II. Contact Person and Contact Information
Secretary to the board of directors Securities affairs representative
Name Wang Gang Jiang Yu
No. 592 Linping Av., Yuhang Economic No. 592 Linping Av., Yuhang Economic
Contact address: Development Zone, Yuhang District, Development Zone, Yuhang District,
Hangzhou City, Zhejiang Province Hangzhou City, Zhejiang Province
Tel 0571-86187810 0571-86187810
Fax 0571-86187769 0571-86187769
Email wg@robam.com jy@robam.com
III. Information Disclosure and Keeping Place
The website(s) of the stock exchange where the Company Securities Times, China Securities Journal, Securities Daily,
discloses the annual report Shanghai Securities News
The name and website of the media where the Company discloses
http://www.cninfo.com.cn
the annual report
Place of preparation of the Company’s annual report Board office
IV. Registration Changes
Uniform social credit code 91330000725252053F
Changes in main business since the Company's listing (if any) N/A
Changes of controlling shareholders (if any) N/A
IV. Other Relevant Information
Accounting firm engaged by the Company
Shinewing Certified Public Accountants (special general
Name of the accounting firm
partnership)
Office address of the accounting firm 9/F, Block A, Fuhua Mansion, No.8 Chaoyangmen North Street,
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Dongcheng District, Beijing
Name of signatory accountant Lei Yongxin, Wang Qing
The sponsor institution engaged by the Company to perform the continuous supervision responsibility during the reporting period
□ Applicable Not applicable
The financial advisor engaged by the Company to perform the continuous supervision responsibility during the reporting period
□ Applicable Not applicable
V. Major Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of the previous years
□ Yes No
Increase /
decrease this
2022 2021 year compared 2020
to the previous
year
Operating income (yuan) 10,271,500,571.04 10,147,706,035.35 1.22% 8,128,620,799.31
Net profits attributable to
shareholders of listed companies 1,572,404,918.21 1,331,712,059.03 18.07% 1,660,749,958.89
(yuan)
Net profits attributable to
shareholders of the listed company
1,479,102,088.00 1,276,853,316.64 15.84% 1,584,584,566.83
after deduction of non-recurring
profits and losses (yuan)
Net cash flow from operating
1,944,786,304.02 1,365,377,219.33 42.44% 1,537,299,958.71
activities (yuan)
Basic EPS (yuan/share) 1.67 1.41 18.44% 1.75
Diluted EPS (yuan/share) 1.67 1.41 18.44% 1.75
Weighted average return on net
17.21% 15.78% 1.43% 22.39%
assets
Increase /
decrease at the
end of this year
End of 2022 End of 2021 End of 2020
compared to the
end of the
previous year
Total assets (yuan) 15,039,825,287.53 13,906,035,181.12 8.15% 12,457,568,276.25
Net assets attributable to
shareholders of listed companies 9,732,463,766.91 8,627,026,739.27 12.81% 8,050,626,815.35
(yuan)
The lower net profit of the Company before and after deducting non-recurring profit and loss in the last three fiscal years is
negative, and the audit report of the latest year shows that the Company's ability to continue as a going concern is uncertain
□ Yes No
The lower net profit before and after deducting non-recurring profit and loss is negative
□ Yes No
VI. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences between net profits and net assets in financial statements disclosed according to the
International Accounting Standards (IAS) and Chinese Accounting Standards simultaneously
□ Applicable Not applicable
No difference between net profits and net assets in financial statements disclosed according to the International Accounting
Standards (IAS) and Chinese Accounting Standards during the reporting period.
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
2. Differences between net profits and net assets in financial statements disclosed according to the
Overseas Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable Not applicable
No difference between net profits and net assets in financial statements disclosed according to the Overseas Accounting Standards
and Chinese Accounting Standards during the reporting period.
VII. Key Quarterly Financial Indicators
Unit: yuan
Q1 Q2 Q3 Q4
Operating income 2,086,165,521.12 2,358,144,578.57 2,792,652,705.58 3,034,537,765.77
Net profits attributable to
shareholders of listed 367,704,718.16 355,844,663.09 509,980,371.09 338,875,165.87
companies
Net profits attributable to
shareholders of the listed
company after deduction 335,557,193.45 300,287,890.62 496,561,217.73 346,695,786.20
of non-recurring profits
and losses
Net cash flow from
127,753,283.12 195,101,839.21 854,375,584.21 767,555,597.48
operating activities
Whether there is significant difference between the above financial indicators or the total sum of them and the financial indicators
related to the quarterly report and semiannual report disclosed by the Company
□ Yes No
VIII. Non-recurring Profit and Loss Items and Amount
Applicable □ Not applicable
Unit: yuan
Descript
Item Amount in 2022 Amount in 2021 Amount in 2020
ion
Profits and losses on the disposal of non-current
assets (including the write-off part of the provision 113,456.26 -2,290,187.24 -422,706.54
for asset impairment)
Government subsidies included into the current
profits and losses (except those government
subsidies, which are closely related to the normal
business of the Company, comply with national 101,963,275.49 65,893,969.94 91,184,657.20
policies and regulations and continuously enjoyed
in accordance with a certain standard quota or
quantity)
Reversal of impairment provision for receivables
24,667,546.54 1,034,992.00
subject to separate impairment test
Income and expenditure other than those
-2,044,818.28 -2,306,626.52 -2,965,479.76
mentioned above
Minus: Amount affected by income tax 26,789,339.27 6,738,387.65 11,202,215.16
Amount of minority shareholders' equity affected
4,607,290.53 735,018.14 428,863.68
(after tax)
Total 93,302,830.21 54,858,742.39 76,165,392.06 --
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
Applicable □ Not applicable
Item Amount Cause
VAT exemption or reduction or National tax policies, recurring
45,970,536.15
refund business
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Individual income tax service charge National tax policies, recurring
541,758.65
refund business
Total 46,512,294.80 —
Description of defining the non-recurring profit and loss items enumerated in the “Interpretative Announcement No. 1 on
Information Disclosure of Public Securities Issuing Companies - Non-recurrent Profits and Losses” as recurrent profit and loss
items
□ Applicable Not applicable
The Company does not have any non-recurrent profit and loss items enumerated in the “Interpretative Announcement No. 1 on
Information Disclosure of Public Securities Issuing Companies - Non-recurrent Profits and Losses” as recurrent profit and loss
items.
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Section 3 Management Discussion and Analysis
I. Industry Situation of the Company During the Reporting Period
In 2022, due to the seriously weak of market demand, the sales and completion of housing declined seriously, restraining the new
demand in the market and having a huge impact on the kitchen appliances industry. According to the overall data released by All
View Cloud (AVC), the retail sales of kitchen and bathroom appliances (such as range hoods, gas hobs, sterilizer cabinets,
dishwashers, built-in appliances, integrated appliances, water heaters, and water purifiers) this year amounted to RMB 158.6
billion, representing a year-on-year decrease of 9.6%. From the perspective of kitchen function, the total sales of professional
cooking kitchen appliances (range hoods, gas hobs, and built-in microwave ovens, built-in electrical steam ovens and built-in
electric ovens) was RMB 53.7 billion, representing a year-on-year decrease of 10.9%; The total sales of cleaning appliances
(dishwashers, gas water heaters, and water purifiers) was RMB 53.4 billion, representing a year-on-year decrease of 11.4%. The
total sales of storage appliances (refrigerators, sterilizer cabinets) RMB 96.2 billion, representing a year-on-year decrease of 4.8%.
The concentration of kitchen appliance industry continues to increase, the height and thickness of the brand are producing more
and more obvious “dividends”, the polarization is intensifying, the siphon effect of head brand is obvious, and it is becoming more
and more difficult for the long-tail brand. At the same time, the channel innovation of kitchen appliance industry is still continuing.
From the home appliance chain stores to the rise and rapid growth of e-commerce, to the integration of online and offline
transaction, to the sinking of channels and the rise of reserved installation, online wholesale and live streaming e-commerce,
fragmentation, diversification and segmentation of channels have become a trend. In addition, the kitchen appliance products
represented by range hoods and gas hobs are still the largest rigid demand categories in the current kitchen appliance industry. The
emerging kitchen appliances such as dishwashers and steam oven-ovens have brought opportunities and dividends for product
expansion in the industry. The competition in the kitchen appliance industry will turn to the “product” dimension, and there will be
a huge extension space of each kitchen appliance product. In the future, the competition in the kitchen appliance industry will
focus on product innovation. In the medium and long term, integrated and intelligent technologies will be applied to more kitchen
appliance products and cooking scenes.
According to the National Economic and Social Development Statistics Bulletin 2022 issued by the National Bureau of statistics,
at the end of 2022, the urbanization rate of the country's permanent population was 65.22%, 0.50 percentage points higher than
that at the end of the previous year. Compared to the urbanization rate of over 80% in developed countries, there is a broad
development prospect and a good long-term trend for the kitchen appliance industry. China is at the mid-term level of urbanization
development. The new market and stock market will jointly support the future development space of the kitchen appliance
industry. While` the urbanization will also move towards the road of high-quality development, and the trend of the kitchen
category expansion and product upgrade in China will continue.
II. Main Business of the Company during Reporting Period
Dedicated to creating a new quality kitchen for millions of families, the Company takes foot in the kitchen field and focuses on the
development, production, sales and comprehensive services of kitchen appliances, including range hoods, gas hobs, steam oven-
oven, dishwashers and integrated stoves, and it is committed to creating a more “convenient, healthy and interesting” kitchen life
for thousands of families. After more than 40 years of development and growth, the Company has become the manufacturer with
the longest history, the highest market share and the largest production capacity in the Chinese kitchen appliance industry.
According to product attributes and cooking methods, the Company's products are mainly divided into three categories. The first
category refers to the product group represented by range hoods. The second category refers to the electrified cooking product
group represented by steam oven-oven, steamer and oven. The third category refers to the water kitchen appliance product group
represented by dishwashers, gas water heater and water purifier. In addition, it also includes integrated product groups represented
by integrated stoves and integrated range hoods, etc., as well as refrigerators and other categories, providing consumers with a full
set of kitchen appliance solutions.
The channel layout of the Company is complete, forming three major channels focusing on offline retail, online e-commerce and
refined decoration engineering, as well as overseas channels.
1) Offline retail channels: mainly based on the national agent model of ROBAM, with the main channels divided into specialty
stores (agent specialty stores, Red Star Macalline, Easyhome, etc.), KA (Suning, GOME, Five Star and local chain channels),
innovate channels (whole house customization companies, home decoration companies and gas companies), sinking channels (JD
specialty stores, Tmall Youpin, Suning Retail Cloud, GOME New Retail, Five Star Wanzhentong, etc.) and local department
stores, etc.
2) Online e-commerce channels: mainly directly operated by the Company's e-commerce department. The main channels include
online platforms such as JD, Tmall and Suning, as well as other media platforms (new media social networking, official website,
private domain, TV shopping, etc.)
3) Refined decoration engineering channels: strategic engineering customers (leading real estate enterprises) and regional
engineering customers.
4) Overseas channels: North America, Australia, Malaysia, Cambodia and other Southeast Asian regions.
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III. Analysis of Core Competitiveness
No significant change in the Company's core competitiveness during the reporting period: The Company's core competitiveness is
mainly reflected in the high-end positioned the brand capacity, continuous innovative research and development capacity,
comprehensive and efficient operation capacity.
1. Brand capability of high-end positioning
Founded in 1988, the ROBAM continues to deepen the positioning of “big suction” and create high-end brand experience. “Big
suction” has become the synonym of “high-end range hood”, and the ROBAM has become one of the most famous and favorite
professional high-end kitchen appliance brands in China. Since 1991, ROBAM range hood has won the only “Quality Silver
Award of the People's Republic of China”, “China Famous-brand Product”, “National Inspection-free Product” in the kitchen
appliance industry; ROBAM has been recognized as “China Famous Brand”; ROBAM has won “Most Influential Brand in China's
Kitchen Appliance Industry” and “China's 500 Most Valuable Brands”. In addition, ROBAM Appliances has been rated as one of
the “BrandZ Top 100 Most Valuable Chinese Brands” for 7 consecutive years, and awarded the “Top 500 Asian Brands” for 15
consecutive years. In 2018, ROBAM Appliances put forward a new brand concept, that is, to “Creating China's new kitchen.”
ROBAM Appliances became the CCTV's leading national brand in the world and won the 2019-2020 High-end Brand Award
from China National Household Electric Appliances Commercial Association. From 2015 to 2022, ROBAM large-suction range
hoods and built-in gas hobs led the global sales for 8 consecutive years.
2. R&D capability of continuous innovation
The Company adheres to the principle of “product leading” and constantly pursues “technology leading”. The Company now has a
national technology center, a national laboratory, a national industrial design center, California institute of innovation, Shenzhen
innovation research institute and academician workstation of Tsinghua University. With industry-leading national industry designs,
intelligent manufacturing technology and superior product quality, ROBAM Appliances has already evolved into a market leader,
an industry standard advocate, and a CSR forerunner. In 2020, it won the Second Prize for Science and Technology Progress in
Zhejiang Province, and in 2021, it was listed in the China's Top 100 Enterprises of Light Industry Science and Technology. At the
same time, it has been increasing its investment in research and development, and standing at the industry leading level in R&D
team, R&D patents, standard formulation and other aspects. Since 2008, ROBAM Appliances has won more than 60 product
design awards, including authoritative awards at home and abroad, such as Germany IF, Germany Red Dot, and China Red Star,
leading the trend of kitchen appliance product design. The Company has authorized a total of more than 3,000 patents, covering all
major categories of kitchen ecology supporting easy cooking with superb technologies.
3. Comprehensive and efficient operation capability
The Company has the leading marketing capability in the industry: by adopting the only agency marketing mode in the industry,
the Company has created the most comprehensive, efficient and responsive marketing system in the industry through strong
management and control, equity incentive and the de facto business partner system. The Company deepens intelligent
manufacturing and refined operation. It was awarded the “National Top 100 Quality Inspection Integrity Benchmark” and
“National Excellent Quality and Excellent Credit Enterprise” in 2020. The Company focuses on global manufacturing and strives
to become a first-class manufacturing benchmark in China. In 2021, it was awarded the “Future Factory” medal by the Economy
and Information Technology Department of Zhejiang. In addition, the Company accelerates the integration of digitization and
informatization, focuses on the interactive innovation and continuous optimization of data, technology, business process and
organizational structure, constantly improves new capabilities in the informatization environment, and improves the sustainable
competitiveness in domestic and foreign markets. At the same time, the Company is also a provincial industrial Internet platform
and has become one of the first batch of “Kunpeng” enterprises in Hangzhou.
IV. Main business analysis
1. Overview
In 2022, due to the major adverse factors such as the continuous downturn of the real estate industry and the rising comprehensive
cost of enterprises, the demand of the kitchen appliance industry was suppressed, resulting an overall negative growth. In terms of
retail channel, according to the monthly data report of offline retail market monitoring of All View (hereinafter referred to as “All
View Offline Report”), the retail sales of main categories of kitchen appliances, such as range hoods and gas hobs, decreased by
26.2% and 22.8% respectively compared with the same period of last year. In terms of e-commerce channel, according to the
monthly data report of online retail market monitoring of All View (hereinafter referred to as “All View Online Report”), the
online retail sales of kitchen appliance products decreased by 3.6% compared with the same period of last year. In terms of
engineering channel, according to the 2022 Annual Report on Kitchen Appliances in Refined Decoration Market for Real Estate
Commodity Housing in China of All View Cloud (AVC) (hereinafter referred to as the “AVC Real Estate Report”), in 2022, the
market size of range hood and gas hobs for refined decoration was 1.41 million units, representing a year-on-year decrease of 48%,
and the configuration rate of 96.7%; the market size of dishwasher for refined decoration was 458.3 thousand units, representing a
year-on-year decrease of 15.4%, and the configuration rate of 31.4%, representing a year-on-year increase of 12.5%.
As the industry leader, the Company closely focused on the annual business philosophy of “riding on the momentum, building
dreams and traveling far”, to make the market share of various categories stay ahead, and the market concentration increasing.
According to All View Offline Report, the retail sales and retail market share of ROBAM's range hoods were 31.7% and 25.8%,
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
increasing by 1.2 and 1.5 percentage points respectively compared with the same period last year. According to All View Online
Report, the retail sales and retail volume market share of the ROBAM kitchen appliance package were 30.5% and 24.0%, which
are basically the same as the same period last year. In the face of many adverse factors, the Company achieved an annual operating
income of RMB 10.272 billion, representing a year-on-year increase of 1.22%. The net profit attributable to shareholders of listed
companies was RMB 1.572 billion, representing a year-on-year increase of 18.07%, which were significantly superior to the
average level of the industry.
As of December 31, 2022, according to the All View offline report, the market share and market position of the offline retail sales
of Company's major product categories are shown in the following table:
Range hood Gas hobs Sterilizer cabinet Built-in steam & Built-in electrical Built-in electric Built-in
grill oven steam oven oven dishwasher
31.7% 30.7% 22.6% 33.1% 28.1% 26.2% 17.8%
1 1 2 1 2 2 3
As of December 31, 2022, according to the All View online report, the market share and market position of the online retail sales
of Company's major product categories are shown in the following table:
Kitchen appliance Range hood and Range hood Gas hobs Built-in steam & Built-in electrical Built-in
packages gas hobs grill oven steam oven dishwasher
30.5% 32.4% 16.1% 9.9% 14.4% 23.9% 15.1%
1 1 1 4 3 1 3
As of December 31, 2022, according to the All View Real Estate Report, the market share of ROBAM in refined decoration
channel was 33.1%, ranking second in the industry.
In 2022, the technology sector focused on science and technology and kitchen appliances, improved the hard technology of
products, had a new launch for digital kitchen appliances, and promoted the reform and innovation of the industry. “Creator i1”,
the first ROKI digital kitchen appliance product in the industry won the “2022 Red-Top Award for High-end Household
Appliances and Consumer Electronics in China”. In addition, the Company and China Household Electric Appliance Research
Institute jointly issued the Technical Specification for High-Performance Integrated Stoves, leading the integrated stoves industry
into the era of high performance. In this year, the Company applied for 1351 patents, including 401 invention patents; As of
December 31, 2022, the Company had been granted a total of 3457 patents, including 91 invention patents. This year, the
Company presided over the formulation of 10 standards and participated in the formulation of 20 standards. Among them, the
industry standard Steam Oven-Oven, the formulation of which was presided over by the Company, was successfully selected as the
Zhejiang manufacturing standard application project. Besides, its technological innovation ability has been recognized by the
industry, and it has won the first and second prizes of the 2022 Science and Technology Progress Award by China National Light
Industry Council, and the range hood project has been awarded with the first prize for four consecutive times.
In 2022, the marketing sector deepened the high-end positioning of brand, constantly enriched the product matrix, entered the
integrated stove market, opened the digital era of kitchen appliances, providing a full range of comprehensive solutions for kitchen
appliances. In terms of retail channels, the Company strengthened its high-end brand advantage, gave full play to the efficiency of
specialty stores, expanded front-end market traffic through innovative channels, accelerated the construction of sinking channels,
and optimized channel efficiency. Meanwhile, the Company focused on the users, upgraded the worry-free kitchen reform service,
consistently creating value for the users. In terms of e-commerce channels, the Company strengthened brand positioning, made
new and old media work together, efficiently tapped traffic value and revitalized the potential of stock market. In terms of
engineering channels, the Company optimized customer structure and strengthened risk management awareness, kept the market
advantage of old categories, and stimulated the improvement of permeability of new categories. In terms of overseas channels, it
steadily promoted the global layout and the process of brand internationalization.
In 2022, the production sector focused on “stabilizing production, strengthening organization, ensuring production and supply,
improving quality and efficiency, consolidating the foundation and seeking qualitative change”, being committed to becoming one
of the manufacturing benchmarks with strong comprehensive competitiveness in China's manufacturing industry. The Company
continuously promoted quality improvement and process innovation, focused on the building of differentiated and refined
manufacturing capabilities, to ensure the high quality delivery of various kitchen appliances. In this year, it won the “2022
National Quality Benchmark” award issued by the China Association for Quality. At the same time, by building an end-to-end
integrated supply chain, it aimed to create a cost control system with comprehensive competitive advantages to continuously
achieve the goal of cost reduction and efficiency improvement. Unmanned factories will deepen the digitalization construction and
application, so as to further build a digital transparent future factory in the future. The Maoshan Intelligent Manufacturing Park
project had been gradually put into use, giving rise to a continuously improvement of production efficiency and production benefit.
In 2022, the brand sector continued to building the first brand image of high-end kitchen appliances in China that knows Chinese
cooking best, and empowered kitchen appliances with science and technology, making the starting point of technology kitchen
higher. The Company held the 2022 New Technology Product Launch Conference for China New Kitchen, released the new
generation of high-performance integrated stoves and other new kitchen appliance products; in addition, it held the Global Launch
Conference for ROKI Digital Kitchen Appliance, launched the first set of digital kitchen appliance product “Creator i1”, and the
first digital person in the industry, Mr. ROKI. It held “China-Chic Family Feast”, the first Chinese Cooking Competition, the
second Dishwasher Festival and food education system activities and other activities, named “I Heard it's Delicious 2”, appeared
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
on “Topics in Focus”, “The Treasured Voice 3” and other programs, making a continuously improvement of its brand exposure
and influence. In addition, as the exclusive supplier of official household kitchen appliances for the 2022 Hangzhou Asian Games,
the Company helped to spread Chinese cooking culture and boosted the construction of Asian Games cities.
In 2022, for the brand “MQ”, which inherited the genes of excellent kitchen appliances, the Company explored the road of new
retail development with professional kitchen appliances as the development cornerstone and integrated kitchen appliances as the
growth momentum. By complementing with ROBAM, the Company comprehensively upgraded organizational resources, brand
potential energy, product innovation, channel expansion and other aspects of the brand “MQ” to provide users with ultimate
experience. For the brand “Kinde”, the Company consolidated the foundation, reformed and transformed, further deepened the
high-end strategies, and developed the customized market. For the brand “DACHOO”, the Company positioned it as professional
multi-functional desktop cooking appliances. The Company will further build new brand matrixes to achieve diversity integration.
In 2022, the Company continued to be recognized by the capital market in terms of corporate governance, internal management
and shareholder return. The Company became a council member of China Association for Public Companies. It was awarded level
A (Excellent) in the 2021 Annual Information Disclosure Assessment of listed companies in Shenzhen Stock Exchange, and has
won this award for nine consecutive years. At the same time, based on the improvement and excellent performance in corporate
governance and employee welfare projects, its MSCI ESG rating was upgraded to grade A, ranking high among global peer
(household durable goods) companies.
In order to realize common prosperity and build a normalized incentive mechanism, the Company launched the 2022 Stock Option
Incentive Plan, which aims to provide stock option incentives for the Company's middle-level core business and technical
backbones and consolidate the Company's long-term development foundation. The Company has been always adhering to standard
operation, being deeply engaged in the kitchen field, assisting in value investment, and promoting the high-quality development of
the Company.
2. Revenue and Costs
(1) Operating income composition
Unit: yuan
2022 2021
Year-on-year
Proportion in Proportion in increase /
Amount operating Amount operating decrease
income income
Total operating income 10,271,500,571.04 100% 10,147,706,035.35 100% 1.22%
By industry
Home and kitchen & bath
9,981,652,062.48 97.18% 9,878,609,034.58 97.35% 1.04%
appliances
Other business income 289,848,508.56 2.82% 269,097,000.77 2.65% 7.71%
By product
First category group
Including: Range hood 4,832,350,321.78 47.05% 4,879,636,891.65 48.09% -0.97%
Gas hobs 2,456,953,764.20 23.92% 2,439,639,215.87 24.04% 0.71%
Sterilizer cabinet 477,168,426.61 4.65% 544,149,587.07 5.36% -12.31%
Second category group
Including: Steam oven-
739,678,668.33 7.20% 647,136,752.08 6.38% 14.30%
oven
Steamer 99,986,752.60 0.97% 150,479,922.38 1.48% -33.55%
Steamer 82,492,751.09 0.80% 132,013,212.98 1.30% -37.51%
Third category group
Including: Dishwasher 593,794,747.49 5.78% 450,505,656.90 4.44% 31.81%
Water purifier 54,081,866.41 0.53% 59,858,528.51 0.59% -9.65%
Water heaters 192,404,223.01 1.87% 155,054,325.57 1.53% 24.09%
Integrated stove 384,843,160.10 3.75% 326,347,237.29 3.22% 17.92%
Other small home
67,897,380.86 0.66% 93,787,704.28 0.92% -27.61%
appliances
Other business income 289,848,508.56 2.82% 269,097,000.77 2.65% 7.71%
By region
East China - main
4,974,280,646.54 48.42% 4,699,565,607.49 46.33% 5.85%
products
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
East China - other 289,848,508.56 2.82% 269,097,000.77 2.65% 7.71%
South China 1,269,202,599.03 12.36% 1,313,350,785.57 12.94% -3.36%
Central China 859,455,161.51 8.37% 890,428,360.89 8.77% -3.48%
North China 1,250,622,282.44 12.18% 1,242,294,816.78 12.24% 0.67%
Northeast China 484,194,864.36 4.71% 512,607,935.65 5.05% -5.54%
Northwest China 444,338,961.01 4.33% 509,788,589.04 5.02% -12.84%
Southeast China 637,508,722.80 6.21% 647,294,350.69 6.38% -1.51%
Overseas regions 62,048,824.79 0.60% 63,278,588.47 0.62% -1.94%
Distribution model
Sales by proxy 2,446,494,399.39 23.82% 3,070,367,965.64 30.25% -20.32%
Sales by dealers 301,984,213.55 2.94% 380,213,068.56 3.75% -20.58%
Direct sales 5,402,928,683.48 52.60% 4,647,292,563.60 45.80% 16.26%
Engineering 2,058,478,176.62 20.04% 1,976,492,346.14 19.48% 4.15%
Other 61,615,098.00 0.60% 73,340,091.41 0.72% -15.99%
(2) Industries, products, regions and sales models that account for more than 10% of the Company's operating income
or profit
Applicable □ Not applicable
Unit: yuan
Year-on- Year-on- Year-on-
year year year
Gross increase / increase / increase /
Operating income Operating cost margin decrease decrease decrease
ratio of of of gross
operating operating margin
income cost ratio
By industry
Home and
kitchen & bath 10,271,500,571.04 5,137,368,758.15 49.98% 1.22% 6.25% -2.37%
appliances
By product
Range hood 4,832,350,321.78 2,332,382,332.73 51.73% -0.97% 3.13% -1.92%
Gas hobs 2,456,953,764.20 1,115,134,305.77 54.61% 0.71% 6.31% -2.39%
By region
East China 4,974,280,646.54 2,361,595,253.33 52.52% 5.85% 9.65% -1.65%
South China 1,269,202,599.03 688,488,642.51 45.75% -3.36% 0.74% -2.21%
North China 1,250,622,282.44 620,671,859.40 50.37% 0.67% 7.40% -3.11%
Distribution model
Sales by proxy 2,446,494,399.39 1,437,334,857.11 41.25% -20.32% -9.97% -6.76%
Direct sales 5,402,928,683.48 2,407,765,169.75 55.44% 16.26% 24.06% -2.80%
Engineering 2,058,478,176.62 1,071,050,433.40 47.97% 4.15% 1.92% 1.14%
In the case that the statistical standards for main business data of the Company are adjusted during the reporting period, the main
business data of the Company in recent 1 year are subject to those after the adjustment of the statistical standards at the end of the
reporting period
□ Applicable Not applicable
(3) Whether the Company's physical sales revenue is greater than the service revenue
Yes □ No
Year-on-year
Industry category Item Unit 2022 2021
increase / decrease
Home and kitchen & Sales quantity Unit 7,757,460 8,026,289 -3.35%
bath appliances Production output Unit 7,557,374 8,079,472 -6.46%
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Inventory Unit 2,075,152 2,275,238 -8.79%
Reasons for more than 30% year-on-year changes in the relevant data
□ Applicable Not applicable
(4) Performance of major sales contracts and major purchase contracts signed by the Company up to the reporting
period
□ Applicable Not applicable
(5) Composition of operating cost
Industry and product categories
Unit: yuan
2022 2021
Industry Year-on-year increase
Item Proportion in Proportion in
category Amount Amount / decrease
operating cost operating cost
Manufactu
Home and ring costs 517,639,044.69 10.07% 375,524,089.21 7.77% 37.84%
kitchen &
Raw
bath 4,425,668,122.58 86.15% 4,240,067,637.57 87.69% 4.38%
materials
appliances
Labor 194,061,590.88 3.78% 219,461,677.59 4.54% -11.57%
Unit: yuan
Product 2022 2021
Year-on-year
Classificati Item Proportion in Proportion in
Amount Amount increase / decrease
on operating cost operating cost
Manufactu
282,015,436.10 5.49% 213,123,127.91 4.41% 32.33%
ring costs
Range
Raw
hood 1,946,232,805.60 37.88% 1,929,019,611.59 39.90% 0.89%
materials
Labor 104,134,091.03 2.03% 119,516,025.36 2.47% -12.87%
Manufactu
58,395,892.78 1.14% 37,797,820.14 0.78% 54.50%
ring costs
Gas hobs Raw
1,031,439,648.62 20.08% 982,173,775.43 20.31% 5.02%
materials
Labor 25,298,764.37 0.49% 29,017,912.81 0.60% -12.82%
Manufactu
37,886,184.41 0.74% 20,520,264.95 0.42% 84.63%
ring costs
Steam
Raw
oven-oven 317,516,080.41 6.18% 280,530,437.29 5.80% 13.18%
materials
Labor 16,540,158.74 0.32% 14,288,741.43 0.30% 15.76%
Manufactu
39,309,333.79 0.77% 40,968,858.77 0.85% -4.05%
Dish- ring costs
washing Raw
275,583,128.32 5.36% 218,178,826.01 4.51% 26.31%
machine materials
Labor 12,107,381.36 0.24% 11,704,580.04 0.24% 3.44%
Manufactu
100,032,197.61 1.95% 63,114,017.44 1.31% 58.49%
ring costs
Other Raw
854,896,459.63 16.64% 830,164,987.25 17.17% 2.98%
materials
Labor 35,981,195.38 0.70% 44,934,417.95 0.93% -19.93%
(6) Whether the consolidation scope changes in the reporting period
Yes □ No
In June 22, 2022, the Company invested and established Hangzhou Jinhe Electric Appliances Co., Ltd. with the registered capital
of RMB 10 million and shareholding ratio of 100%. Such company belongs to the wholesale and retail industry and mainly
15
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
engages in the sales of kitchen appliance products of the Company. Now, its registered capital has been paid in and the company
has been put into operation.
(7) Major changes or adjustments of business, products or services of the Company during the reporting period
□ Applicable Not applicable
(8) Major sales customers and major suppliers
Major sales customers of the Company
Total sales amount of top five customers (yuan) 3,419,623,147.78
Proportion of total sales amount of top five customers in total
33.29%
annual sales
Among the sales amount of top five customers, proportion of
0.00%
sales amount of related parties in total annual sales
Top 5 customers of the Company
No. Customer name Sales Amount (yuan) Proportion in total annual sales
1 Unit 1 1,879,893,592.38 18.29%
2 Unit 2 785,441,885.78 7.65%
3 Unit 3 292,840,935.77 2.85%
4 Unit 4 232,876,119.48 2.27%
5 Unit 5 228,570,614.37 2.23%
Total -- 3,419,623,147.78 33.29%
Other information of major customers
□ Applicable Not applicable
Major suppliers of the Company
Total purchase amount of top five suppliers (yuan) 833,307,047.52
Proportion of total purchase amount of top five suppliers in total
20.22%
annual purchase amount
Among the purchase amount of top five suppliers, proportion of
purchase amount of related parties in total annual purchase 0.00%
amount
Top 5 suppliers of the Company
Proportion in total annual
No. Supplier name Purchase amount (yuan)
purchase amount
1 Unit 1 212,820,142.38 5.16%
2 Unit 2 194,092,130.95 4.71%
3 Unit 3 168,826,616.91 4.10%
4 Unit 4 135,995,120.29 3.30%
5 Unit 5 121,573,036.99 2.95%
Total -- 833,307,047.52 20.22%
Other information of major suppliers
□ Applicable Not applicable
3. Cost
Unit: yuan
Year-on-year increase / Description of major
2022 2021
decrease changes
Selling expenses 2,613,626,073.89 2,454,418,039.92 6.49% /
Management costs 430,968,403.74 363,762,372.63 18.48% /
Financial expenses -157,222,288.61 -139,673,507.87 12.56% /
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Research and
391,614,805.38 366,026,666.34 6.99% /
development expenses
4. R&D investment
R&D personnel of the Company
2022 2021 Proportion of change
Number of R&D personnel
929 876 6.05%
(person)
Proportion of R&D personnel 18.23% 17.95% 0.28%
Educational structure of R&D personnel
Bachelor 683 652 4.75%
Master 146 130 12.31%
Age composition of R&D personnel
Under 30 years old 297 261 13.79%
30~40 years old 476 463 2.81%
R&D investment of the Company
2022 2021 Proportion of change
R&D investment amount (yuan) 391,614,805.38 366,026,666.34 6.99%
Proportion of R&D investment in
3.81% 3.61% 0.20%
operating revenue
Capitalized amount of R&D
0.00 0.00 0.00%
investment (yuan)
Proportion of capitalized R&D
0.00% 0.00% 0.00%
investment in R&D investment
Reasons and effects of major changes in the composition of R&D personnel of the Company
□ Applicable Not applicable
Reasons for significant changes in the proportion of total R&D investment amount in operating revenue compared with the
previous year
□ Applicable Not applicable
Reasons for the great changes of R&D investment capitalization rate and description of its rationality
□ Applicable Not applicable
5. Cash flow
Unit: yuan
Year-on-year increase /
Item 2022 2021
decrease
Subtotal cash inflows from
11,572,752,136.63 10,571,104,254.72 9.48%
operating activities
Subtotal cash outflows from
9,627,965,832.61 9,205,727,035.39 4.59%
operating activities
Net cash flow from operating
1,944,786,304.02 1,365,377,219.33 42.44%
activities
Subtotal cash inflows from
3,038,030,947.22 2,774,993,853.52 9.48%
investment activities
Subtotal cash outflows from
3,082,085,886.40 3,635,682,805.12 -15.23%
investment activities
Net cash flow from investment
-44,054,939.18 -860,688,951.60 Not applicable
activities
Subtotal cash inflows from
66,662,732.06 31,544,588.74 111.33%
financing activities
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Subtotal cash outflows from
496,668,186.35 701,527,338.97 -29.20%
financing activities
Net cash flow from financing
-430,005,454.29 -669,982,750.23 Not applicable
activities
Net increase of cash and cash
1,476,425,521.39 -166,107,693.21 Not applicable
equivalents
Description of main influencing factors of significant changes in relevant data on a year-on-year basis
Applicable □ Not applicable
During the reporting period, the net cash flow from operating activities increased by 42.44% year-on-year, which was mainly due
to the strengthened risk control and the increased sales collection in the current period.
During the reporting period, the cash flow outflow from investment activities decreased by 15.23% year-on-year, which was
mainly due to the decreased amount of matured bank wealth management products.
During the reporting period, the cash flow outflow from financial activities decreased by 29.20% year-on-year during the reporting
period, which was mainly due to the share repurchases in the previous period.
Reasons for significant difference between the net cash flow from operating activities of the Company and the net profit of the
current year in the reporting period
□ Applicable Not applicable
V. Non-main business analysis
□ Applicable Not applicable
VI. Analysis of assets and liabilities
1. Major changes in asset composition
Unit: yuan
End of 2022 Beginning of 2022
Proportion Description of
Proportion in Proportion in change major changes
Amount Amount
total assets total assets
Monetary capital 5,292,762,670.94 35.19% 3,802,201,346.55 27.34% 7.85% /
Accounts
1,689,606,828.94 11.23% 1,597,692,860.90 11.49% -0.26% /
receivable
Inventory 1,610,110,798.10 10.71% 1,772,231,632.25 12.74% -2.03% /
Investment
55,887,198.54 0.37% 11,085,896.07 0.08% 0.29% /
properties
Long-term equity
8,718,505.62 0.06% 5,405,129.91 0.04% 0.02% /
investment
Fixed assets 1,622,235,227.74 10.79% 1,179,306,020.01 8.48% 2.31% /
Construction in
406,258,146.69 2.70% 454,643,364.82 3.27% -0.57% /
progress
Right-of-use
22,220,144.13 0.15% 29,902,954.22 0.22% -0.07% /
assets
Short-term
51,723,429.99 0.34% 29,616,655.41 0.21% 0.13% /
borrowing
Contract
959,915,567.03 6.38% 1,026,782,402.35 7.38% -1.00% /
liabilities
Lease liabilities 18,588,966.67 0.12% 26,177,034.29 0.19% -0.07% /
The proportion of overseas assets is relatively high
□ Applicable Not applicable
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
2. Assets and liabilities measured with fair value
Applicable Not applicable
See X. Financial Reports, XI. Fair Value Disclosure and Notes
3. Limitation on the assets and rights as of the end of the reporting period
Use of restricted monetary funds
Item Year-end balance Year-beginning balance
Letter of guarantee and bill acceptance security
96,335,329.20 82,212,526.20
deposit
ETC deposit 13,000.00
Total 96,348,329.20 82,212,526.20
VII. Analysis of investment
1. Overall situation
□ Applicable Not applicable
2. Significant equity investments acquired during the reporting period
□ Applicable Not applicable
3. Significant ongoing non-equity investments during the reporting period
□ Applicable Not applicable
4. Financial asset investment
(1) Securities investments
□ Applicable Not applicable
The Company had no securities investments in the reporting period.
(2) Derivatives investment
□ Applicable Not applicable
The Company had no derivatives investments in the reporting period.
5. Use of funds raised
□ Applicable Not applicable
No funds raised are used in the reporting period.
VIII. Sales of major assets and equities
1. Sales of major assets
□ Applicable Not applicable
The Company did not sell major assets in the reporting period.
2. Sales of major equities
□ Applicable Not applicable
IX. Analysis of main holding and joint-stock companies
Applicable □ Not applicable
Joint-stock companies that affect the net profits of the Company by more than 10% and main subsidiaries
Unit: yuan
Company Company Main Registere Total assets Net assets Operating income Operating profit Net profit
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
name type business d capital
Shanghai
Sales of
ROBAM
kitchen
Electric
Subsidiary electric 5000000 114,682,531.50 2,512,132.95 394,385,254.82 -17,260,433.05 -14,464,589.80
Appliance
appliance
Sales Co.,
products
Ltd.
Beijing
Sales of
ROBAM
kitchen
Electric
Subsidiary electric 5000000 88,385,708.49 41,111,522.58 542,976,748.20 -12,096,164.51 -9,642,241.11
Appliance
appliance
Sales Co.,
products
Ltd.
Sales of
Hangzhou
kitchen
Mingqi
Subsidiary electric 50000000 173,946,094.51 50,130,395.33 340,119,786.11 -21,697,104.97 -20,376,970.76
Electric Co.,
appliance
Ltd.
products
Shengzhou Production
Kinde and sales
Intelligent of kitchen
Subsidiary 32653061 501,112,499.41 252,244,096.11 170,999,666.69 -21,651,500.08 -24,500,532.58
Kitchen electric
Electric Co., appliance
Ltd. products
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable Not applicable
X. Structured entities controlled by the Company
□ Applicable Not applicable
XI. Prospect of the Company's future development
1. Company development strategy (2020-2022)
Focus on cooking, focus on range hoods, expand the first category advantages, lead the second category, and steadily promote the
third category. Adhere to the spirit of hard-working vise entrepreneurship, take products and users as the core, create a competitive
advantage of the enterprise. Continue to create a more “convenient, healthy and interesting” kitchen life for users, build a global
brand and a century-old enterprise.
I. Overall goal: build a global brand and a century-old enterprise.
To be a world-class century-old leader of cooking innovation.
II. Business goal: concentrate on cooking, focus on range hoods, expand the first category advantages, lead the second category,
and steadily promote the third category.
The first category refers to the product group represented by range hoods. The second category refers to the electrified cooking
product group represented by steam oven-oven. The third category refers to the water kitchen appliance product group represented
by dishwashers.
III. Core work: take products and users as the core, create a competitive advantage of the enterprise, and continue to create a more
“convenient, healthy and interesting” kitchen life for users.
The core of products focus on the leading product technology; users refer to the consumers who purchase and use kitchen products.
At present, the kitchen appliance industry has gradually entered the era of stock game. With the acceleration of industry
integration, products and user experience will become more and more important. Through technological innovation, expand the
competitive advantages of products, increase the market share driven by products, pay attention to the user's cooking process and
cooking environment, take improving the user's cooking experience as the starting point, make the products and user experience
the Company's competitive advantage, and continue to create a more “convenient, healthy and interesting” kitchen life for users.
2. Mission, vision and values of the Company
Mission: To render happiness of kitchen life for more families.
Vision: To be a world-class century-old leader of cooking innovation.
Values: Hard-working vise entrepreneurship.
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
3. In 2023, the Company's working policy will be “building dreams and traveling far, innovating and reforming for success”,
continuously keep the competitive advantage of traditional categories, vigorously develop new categories such as dishwashers,
steam oven-ovens, and integrated stoves, and drive the growth of business scale. It will target digital kitchen appliances to enhance
innovation capabilities, create core competitiveness of technological innovation, and open a new era of digital kitchen appliances.
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Section 4 Corporate Governance
I. Basic State of Corporate Governance
In the reporting period, the Company constantly improved the corporate governance structure, established and improved internal
management and control systems, and continued to carry out in-depth corporate governance activities in strict accordance with the
Company law, theSecurities Law, the Governance Guidelines for Listed Companies, the Rules for Stock Listing of Shenzhen Stock
Exchange and relevant laws and regulations of China Securities Regulatory Commission to further regulate the Company
operation and improve the corporate government level. By the end of the reporting period, the actual situation of corporate
governance conformed to the normative documents on listed corporate governance issued by China Securities Regulatory
Commission.
During the reporting period, the Company operated in strict accordance with national laws and regulations, Rules for Stock Listing
of Shenzhen Stock Exchange and Guidelines on the Standardized Operation of Listed Companies on the Main Board, and
performed its obligations of information disclosure in a timely, complete, true, accurate and fair manner. The Company has not
received the relevant documents of administrative supervision measures taken by the regulatory authorities.
(1) Shareholders and shareholders’ meeting
In strict accordance with the Rules of the Shareholders’ Meeting of Listed Companies and the Rules of Procedure of the
Shareholders' Meeting, the Company shall convene the shareholders’ meeting to ensure that all shareholders, especially minority
shareholders, enjoy equal status and fully exercise their rights.
(2) Company and controlling shareholders
The Company has independent business and operational independence and is independent from the controlling shareholders in
business, personnel, assets, institutions and finance. The Company's board of directors, the board of supervisors and internal
organize operate independently. The controlling shareholders of the Company can strictly regulate their own behaviors, without
directly or indirectly intervening in the Company's decision-making and business activities beyond the shareholders’ meeting.
(3) Directors and board of directors
The Company elects its directors in strict accordance with the recruiting procedures stipulated in the “Articles of Association”; all
the directors of the Company can carry out their work in accordance with the “Rules of Procedure of the Board of Directors” and
“Guidelines on the Behaviors of Directors of Listed Companies”, attend the board of directors and shareholders' meetings
earnestly, actively participate in the training of relevant knowledge, and be familiar with relevant laws and regulations.
(4) Supervisors and Board of Supervisors
The Company shall elect supervisors in strict accordance with the relevant provisions of the Company Law and the Articles of
Association, and the number and composition of the board of supervisors shall meet the requirements of laws and regulations. In
accordance with the requirements of the Rules of Procedure of the Board of Supervisors, the Company's supervisors can earnestly
perform their duties, effectively supervise the Company's major issues, related party transactions, financial condition, and the
performance of directors and managers, and express independent opinions.
(5) Performance Evaluation and Incentive and Restraint Mechanisms
The Company is gradually establishing a fair and transparent performance evaluation standard and incentive and restraint
mechanism for directors, supervisors and managers. The appointment of the Company's managers is open and transparent and
conforms to the provisions of laws and regulations.
(6) Information Disclosure and Transparency
The Company carries out information disclosure and investor relations management under the board secretary responsibility
system; the Company performs the information disclosure procedure in strict accordance with theMeasures for the Administration
of Information Disclosure and discloses the information on the designated information disclosure media such as Securities Times,
China Securities Journal, Securities Daily, Shanghai Securities News and cninfo in a true, accurate, complete and timely manner
according to law; meanwhile, according to the requirements of the Measures for the Investor Relations Management, the Company
standardizes investor reception procedures, receives visits and inquiries from shareholders, and ensures that all shareholders have
equal access to the Company information.
(7) Stakeholder
The Company fully respects and safeguards the legitimate rights and interests of relevant stakeholders, realizes the coordination
and balance of interests of the society, shareholders, the Company and employees, and jointly promotes the sustainable and steady
development of the Company.
(8) Internal Audit System
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
The Company has established an internal audit system and set up an internal audit department. The board of directors has
appointed the person in charge of internal audit to effectively control the Company's daily operation and management, internal
control system and major issues of the Company. There is no significant difference between the actual situation of corporate
governance and the normative documents on listed corporate governance issued by China Securities Regulatory Commission.
II. Independence of the Company Relative to the Controlling Shareholders and Actual
Controllers in Ensuring the Company's Assets, Personnel, Finance, Organization,
Business, etc.
The Company operates in strict accordance with the Company Law and Articles of Association, establishes and improves the
corporate governance structure, is completely separated from the controlling shareholders in terms of business, personnel, assets,
institutions and finance, and has independent and complete business and independent operation capability.
III. Horizontal competition
□ Applicable Not applicable
IV. Information about the annual general meeting of shareholders and extraordinary
general meeting of shareholders held during the reporting period
1. General meeting of shareholders during the reporting period
Investor
Meeting session Meeting type participation Convening date Date of disclosure Meeting resolution
proportion
Announcement of
First Extraordinary Resolutions of 2022 First
Extraordinary
General Meeting of Extraordinary General
general meeting 62.89% April 21, 2022 April 22, 2022
Shareholders in Meeting of Shareholders
of shareholders
2022 (Announcement No.: 2022-
027)
Announcement of
Annual general Resolutions of 2021 Annual
Annual general
meeting of General Meeting of
meeting of 63.52% June 6, 2022 June 7, 2022
shareholders in Shareholders
shareholders
2021 (Announcement No.: 2022-
038)
Announcement of
SecondExtraordinar Resolutions of 2022 Second
Extraordinary
y General Meeting Extraordinary General
general meeting 64.42% September 13, 2022 September 14, 2022
of Shareholders in Meeting of Shareholders
of shareholders
2022 (Announcement No.: 2022-
046)
2. The preferred shareholders with voting rights restored request an extraordinary general meeting of
shareholders
□ Applicable Not applicable
V. Directors, Supervisors and Senior Management
1. Basic information
During the reporting period, whether there was any resignation of directors and supervisors and dismissal of senior management
during their term of office
Yes No
Number of shares
Number of shares
Status of Gend Start date of End date of held at the
Name Position Age held at the end of
service er tenure tenure beginning of the
the period (shares)
period (shares)
Ren
Chairman Incumbent Male 66 August 18, 2020 August 17, 2023 5,923,150 5,923,150
Jianhua
Ren Fujia Deputy Incumbent Male 39 August 18, 2020 August 17, 2023 2,100,075 2,100,075
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
chairman,
general
manager
Zhao
Director Incumbent Male 60 August 18, 2020 August 17, 2023 1,267,565 1,267,565
Jihong
Ren
Director Incumbent Male 60 August 18, 2020 August 17, 2023 1,267,562 1,267,562
Luozhong
Director,
Wang secretary to
Incumbent Male 47 August 18, 2020 August 17, 2023 576,750 576,750
Gang the board of
directors
Shen
Director Incumbent Male 57 August 18, 2020 August 17, 2023 1,143,264 1,143,264
Guoliang
Ma Independent Leaving September 13,
Male 69 August 18, 2020 0 0
Guoxin director office 2022
He Independent
Incumbent Male 67 August 18, 2020 August 17, 2023 0 0
Yuanfu director
Chen Independent
Incumbent Male 45 August 18, 2020 August 17, 2023 0 0
Yuanzhi director
Yu Independent September 13,
Incumbent Male 45 August 17, 2023 0 0
Lieming director 2022
Chairman of
Zhang
the board of Incumbent Male 57 August 18, 2020 August 17, 2023 834,315 834,315
Linyong
supervisors
Tang Employee
Incumbent Male 62 August 18, 2020 August 17, 2023 834,312 834,312
Genquan supervisor
Zhang
Supervisor Incumbent Male 56 August 18, 2020 August 17, 2023 834,312 834,312
Songnian
Zhang Employee Fema
Incumbent 44 August 18, 2020 August 17, 2023 0 0
Huifen supervisor le
Shen
Supervisor Incumbent Male 63 August 18, 2020 August 17, 2023 53,875 53,875
Yueming
Deputy
Xia
general Incumbent Male 47 August 18, 2020 August 17, 2023 411,950 411,950
Zhiming
manager
Deputy
He
general Incumbent Male 48 August 18, 2020 August 17, 2023 411,950 411,950
Yadong
manager
Deputy
Zhou
general Incumbent Male 47 May 10, 2022 August 17, 2023 0 0
Haixin
manager
Chief
Zhang
financial Incumbent Male 53 August 18, 2020 August 17, 2023 411,950 411,950
Guofu
officer
Total -- -- -- -- -- -- 16,071,030 16,071,030
Change of directors, supervisors and senior management
Applicable □ Not applicable
Name Position held Type Date Cause
Zhou Haixin Deputy general manager Elected May 10, 2022 Elected
Yu Lieming Independent director Elected September 13, 2022 Elected
Leave office upon Leave office upon
Ma Guoxin Independent director September 13, 2022
expiration of tenure expiration of tenure
2. Service status
1). Resume of current directors
Professional background, main work experience and main responsibilities currently in the Company of current directors,
24
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
supervisors and senior management of the Company
Mr. Ren Jianhua, Han nationality, born in August 1956, Chinese, without permanent residency abroad; junior high school
education, member of Communist Party of China, economist. He began to work in 1978 and successively served as the supply and
marketing section chief and factory director of Yuhang Hongxing Hardware Factory, the chairman, general manager and Secretary
of the Party branch of Hangzhou ROBAM Industrial Group Co., Ltd., and the chairman and general manager of Hangzhou
ROBAM Home Appliances & Kitchen Sanitary Co., Ltd. He has won the titles of national model worker and outstanding member
of Communist Party of Zhejiang Province, and was elected as the deputy to the 8th and 10th National People's Congress of
Zhejiang Province, deputy to the 11th National People's Congress of Hangzhou City, the Party representative, deputy to the 12th
and 13th National People's Congress of Hangzhou City, and the 12th Fengyun Zhejiang Merchants. At present, he is the chairman
of Hangzhou ROBAM Appliances Co., Ltd., ROBAM Industrial Group Co., Ltd., Hangzhou Nbond Nonwoven Co., Ltd.,
Hangzhou Guoguang Touring Commodity Co., Ltd., Hangzhou Amblem Kitchenware Co., Ltd., the executive director and general
manager of Hangzhou Mingqi Electric Co., Ltd., the executive director and general manager of Hangzhou ROBAM Fuchuang
Investment Management Co., Ltd., the deputy chairman of Garden Hotel Hangzhou, the executive director of Zhejiang Hangzhou
Yuhang Rural Commercial Bank Company Limited, Hangzhou Dongming Forest Park Co., Ltd., Hangzhou Bonyee Daily
Necessity Technology Co., Ltd., the executive director and general manager of Hangzhou Jinchuang Investment Co., Ltd., the
executive partner of Hangzhou Jinnuochang Investment Management Partnership (Limited Partnership).
Mr. Ren Fujia, Han nationality, born in January 1983, Chinese, without permanent residency abroad; bachelor degree. He used to
be the product manager of marketing department and the deputy general manager of R&D center of Hangzhou ROBAM Industrial
Group Co., Ltd., the deputy general manager of Hangzhou ROBAM Home Appliances & Kitchen Sanitary Co., Ltd.; now he is the
director of Hangzhou Nbond Nonwoven Co., Ltd., the deputy chairman and general manager of Hangzhou ROBAM Appliances
Co., Ltd., the director of Hangzhou Amblem Kitchenware Co., Ltd., and the deputy chairman of De Dietrich Trade (Shanghai) Co.,
Ltd.
Mr. Zhaojihong, Han nationality, born in December 1962, Chinese, without permanent residency abroad; master degree, senior
economist. He successively served as the chairman and general manager of Hubei Huangshi Jinye Group Co., Ltd, the deputy
general manager and general manager of the marketing center of ROBAM Group, the deputy general manager and general
manager of the marketing center of ROBAM Home Appliances, and the deputy general manager of the Company. He has
successively won the titles of national outstanding entrepreneur, outstanding Hangzhou merchant in the World, “Top 10 influential
figures in China's kitchen and bathroom industry”, “Top 10 personalities in China's home appliance industry”, and twice won the
Mondale world economic man achievement award and was selected into the dictionary of Chinese experts and celebrities. At
present, he is the director of uTransHub Technologies Co., Ltd., the director and general manager of Hangzhou ROBAM
Appliances Co., Ltd., the director of Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd., and the chairman of Zhejiang
Cooking Future Technology Co., Ltd.
Mr. Ren Luozhong, Han nationality, born in August 1962, Chinese, without permanent residency abroad; EMBA, assistant
economist. He began to work in 1982 and successively served as the operation director of Yuhang Hongxing Hardware Factory,
the deputy general manager, general manager of the marketing center, general manager of the technology center and director of the
first production department of ROBAM Group, the director and deputy general manager of ROBAM Home Appliances, and the
deputy general manager of the Company. At present, he is the deputy chairman of Hangzhou ROBAM Industrial Group Co., Ltd.,
the director of Hangzhou Amblem Kitchenware Co., Ltd., the president of Hangzhou Yuhang District ROBAM Charity
Foundation.
Mr. Wang Gang, Han nationality, born in October 1975, Chinese, without permanent residency abroad; master degree, EMBA of
China Europe International Business School, member of Communist Party of China, certified public accountant, senior economist.
He began to work in 1997 and successively served as an inspector of Haining Local Taxation Bureau of Zhejiang Province, the
R&D director of Shanghai Realize Investment Consulting Co., Ltd., the secretary of the board of directors, director of human
resources, general manager assistant of Shanghai Hailong Software Co., Ltd, and the secretary of the board of directors of
Hangzhou ROBAM Home Appliances & Kitchen Sanitary Co., Ltd. At present, he is the secretary of the board of directors of the
Company, the director of Hangzhou Nbond Nonwoven Co., Ltd., the director of Shengzhou Kinde Intelligent Kitchen Electric Co.,
Ltd., the director of De Dietrich Trade (Shanghai) Co., Ltd., the supervisor of Hangzhou ROBAM Fuchuang Investment
Management Co., Ltd., the director of Hangzhou Guoguang Touring Commodity Co., Ltd., the director of Hangzhou Fortune Gas
Cryogenic Group Co., Ltd., the director of Versolsolar Hangzhou Co., Ltd., the director of Hangzhou Wheeler General Machinery
Co., Ltd., the independent director of Hangzhou Great Star Industrial Co., Ltd., the independent director of Hangzhou Xiaodian
Technology Co., Ltd., and the supervisor of Shanghai MXCHIP Information Technology Co., Ltd., the legal representative and
secretary general of association of listed companies of Linping District, Hangzhou City.
Mr. Shen Guoliang, Han nationality, born in November 1965, Chinese, without permanent residency abroad; high school
education. He began to work in 1982 and successively served as the chief of the transportation section, chief financial officer and
the deputy general manager of the marketing center of Yuhang Hongxing Hardware Factory, the director of ROBAM Home
Appliances, and the chairman of the board of supervisors of the Company. At present, he is the director of Hangzhou ROBAM
Industrial Group Co., Ltd., the deputy chairman of Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd., the director of Zhejiang
Cooking Future Technology Co., Ltd., the supervisor of Hangzhou Amblem Kitchenware Co., Ltd., and the supervisor of Beijing
ROBAM Electric Appliance Sales Co., Ltd.
Mr. He Yuanfu, Han nationality, born in March 1955, bachelor degree, Chinese, without permanent residency abroad; professor-
level senior accountant, certified public accountant, retired in January 2012. At present, he is the independent director of Sichuan
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Langsha Holding Co., Ltd., the independent director of Zhejiang Ruirentang Pharmaceutical Chain Co., Ltd., the independent
director of CertusNet Information Co., Ltd., and the independent director of Chint Anneng Digital Power (Zhejiang) Co., Ltd. He
used to be the chief member of the accounting management office of Zhejiang Provincial Department of Finance, the Secretary
General of Zhejiang Institute of Certified Public Accountants, the director of Zhejiang Financial Cadre Education Center, and the
vice president of Zhejiang Zhonghua Accounting Correspondence School.
Mr. Chen Yuanzhi, Han nationality, born in November 1977, Chinese, member of Communist Party of China, doctor degree in
management, is now the independent director of the Company, a professor of China Executive Leadership Academy Pudong, an
adjunct professor of East China Normal University, an adjunct researcher in the Research Center of Technological Innovation,
Tsinghua University, the executive director of China Soft Science Research Society, a managing director of the Chinese Institute
of Business Administration, and an expert of Shanghai Science and Technology Expert Database.
Mr. Yu Lieming, Han nationality, born in December 1977, Chinese, without permanent residency abroad; master degree. He began
to work in 1994 and served as the deputy director of the Administration Committee of Yuhang Economic and Technological
Development Zone of Hangzhou, the vice president of Chunfeng Holdings Group Co., Ltd., and chairman of the board of
supervisors of Zhejiang CFMOTO Power Co., Ltd At present, he is the executive vice president and secretary of the board of
directors of Hamaton Automotive Technology Co., Ltd.
2). Resume of current supervisors
Mr. Zhang Linyong, Han nationality, born in August 1965, Chinese, without permanent residency abroad; high school education,
member of Communist Party of China, assistant economist. He began to work in 1984 and successively served as the office
director of Yuhang Hongxing Hardware Factory, the general manager, director of the engineering department of Hangzhou Huafa
Electric Appliance Co., Ltd., and the director of ROBAM Home Appliances. At present, he is the chairman of the board of
supervisors of the Company, the director of Hangzhou ROBAM Industrial Group Co., Ltd.
Mr. Tang Genquan, Han nationality, born in October 1960, Chinese, without permanent residency abroad; college degree, engineer.
He began to work in 1979 and successively served as the mould workshop director and technical director of Yuhang Hongxing
Hardware Factory, the deputy general manager of technology, general manager of production quality and director of the third
production department of ROBAM Group, the director of ROBAM Home Appliances. In 1993-1994 and 2005-2006, he was
awarded as the outstanding scientific and technological worker of Hangzhou. In 2004, he was selected into the “new century talent
project 139 youth talent cultivation candidate list”, applied for 1 national invention patent, 7 utility model patents and 10 design
patents. He has been employed as a member of China daily hardware industry expert committee since 1996 and the deputy
secretary general of fifth China daily hardware industry expert committee since 2006. At present, he is the employee representative
supervisor of the Company, the director of Hangzhou ROBAM Industrial Group Co., Ltd., the supervisor of Hangzhou ROBAM
Gas Station Co., Ltd., and the secretary general of Hangzhou Yuhang District ROBAM Charity Foundation.
Mr. Zhang Songnian, Han nationality, born in September 1966, Chinese, without permanent residency abroad; high school
education. He began to work in 1983 and successively served as the production section chief of Yuhang Hongxing Hardware
Factory, the deputy general manager of Hangzhou Huafa Electric Appliance Co., Ltd., the deputy director of production
department, director of the second production department and general manager of product R&D center of ROBAM Group, and the
supervisor of ROBAM Home Appliances. At present, he is the supervisor of the Company, the director of Hangzhou ROBAM
Industrial Group Co., Ltd.
Ms. Zhang Huifen, Han nationality, born in October 1977, Chinese, without permanent residency abroad; college degree, junior
economist, junior accountant. She began to work in 1997 and successively served as the employee of Hangzhou Gaobo Electronic
Co., Ltd., the employee of punching machine third workshop, member of audit department of marketing center and office clerk of
financial center of ROBAM Group. At present, he is the employee representative supervisor of the Company.
Mr. Shen Yueming, Han nationality, born in November 1959, Chinese, without permanent residency abroad; high school
education. He began to work in 1978 and successively served as the factory director of Tingzhi Food Factory of Yuhang Supply
and Marketing Cooperative, the production section director of Hangzhou Huafa Electric Appliance Co., Ltd., and the general
manager of Beijing ROBAM Electric Appliance Sales Co., Ltd. At present, he is the supervisor of the Company.
3). Resume of current senior management
Mr. Ren Fujia is the general manager of the Company. Please refer to the resume of the directors of the Company for the
introduction.
Mr. Xiazhiming, Han nationality, born in May 1975, Chinese, without permanent residency abroad; college degree. He began to
work in 1996 and successively served as the production section chief of Qiaori Electric Products Factory, the manufacturing
director of Foxconn Technology Co., Ltd. and the production director of the Company's production center. At present, he is the
deputy general manager of the Company.
Mr. He Yadong, Han nationality, born in August 1974, Chinese, without permanent residency abroad; bachelor degree, senior
economist. He began to work in 2000 and successively served as the marketing section chief, director of marketing department and
deputy general manager of marketing center of ROBAM Group, the assistant to general manager of ROBAM Home Appliances,
and director of the Company. At present, he is the deputy general manager of the Company.
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Mr. Zhou Haixin, Han nationality, born in February 1975, Chinese, without permanent residency abroad; doctor degree, senior
engineer. He began to work in 2001 and successively served as the researcher of Agilent Technologies Software Co. Ltd., the
project manger of Sony Ericsson Mobile Communication Products Co., Ltd., the project director of Qingdao Haier Telecom Co.,
Ltd., the R&D director of Guangbao Mobile Electronic and Telecommunication Components Co., Ltd., and the senior R&D
director of the Company. At present, he is the deputy general manager of the Company.
Mr. Zhang Guofu, Han nationality, born in December 1969, Chinese, without permanent residency abroad; bachelor degree. He
began to work in 1990 and successively served as the capital section chief, director of financial center of Hangzhou ROBAM
Industrial Group Co., Ltd., and financial chief of Hangzhou ROBAM Home Appliances & Kitchen Sanitary Co., Ltd. At present,
he is the chief financial officer of the Company, the supervisor of Hangzhou Mingqi Electric Co., Ltd., the director of Shengzhou
Kinde Intelligent Kitchen Electric Co., Ltd., and the director of De Dietrich Trade (Shanghai) Co., Ltd.
Service status in the shareholder unit
Applicable □ Not applicable
Position held in shareholder Whether to receive remuneration or
Name of staff Shareholder unit name
unit allowance in the shareholder unit
Ren Jianhua Hangzhou ROBAM Industrial Group Co., Ltd. Chairman No
Ren Jianhua Hangzhou Jinchuang Investment Co., Ltd. Executive director No
Ren
Hangzhou ROBAM Industrial Group Co., Ltd. Deputy chairman No
Luozhong
Zhao Jihong Hangzhou ROBAM Industrial Group Co., Ltd. Director, general manager No
Shen
Hangzhou ROBAM Industrial Group Co., Ltd. Director No
Guoliang
Zhang
Hangzhou ROBAM Industrial Group Co., Ltd. Director No
Linyong
Tang
Hangzhou ROBAM Industrial Group Co., Ltd. Director No
Genquan
Zhang
Hangzhou ROBAM Industrial Group Co., Ltd. Director No
Songnian
Description of service status in the shareholder unit: none
Service status in other unit
Applicable □ Not applicable
Name of staff Other unit name Position held in other unit
Hangzhou Amblem Kitchenware Co., Ltd. Chairman
Garden Hotel Hangzhou Deputy chairman
Hangzhou Dongming Forest Park Co., Ltd. Director
Hangzhou Nbond Nonwoven Co., Ltd. Chairman
Zhejiang Hangzhou Yuhang Rural Commercial Bank
Director
Company Limited
Ren Jianhua Hangzhou ROBAM Gas Station Co., Ltd. Chairman
Hangzhou Jinnuochang Investment Management
Executive partner
Partnership (Limited Partnership)
Hangzhou Bonyee Daily Necessity Technology Co., Ltd. Executive director
Hangzhou ROBAM Fuchuang Investment Management Executive director and general
Co., Ltd. manager
Executive director and general
Hangzhou Mingqi Electric Co., Ltd.
manager
De Dietrich Trade (Shanghai) Co., Ltd. Deputy chairman
Ren Fujia Hangzhou Amblem Kitchenware Co., Ltd. Director
Hangzhou Nbond Nonwoven Co., Ltd. Director
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. Chairman
Zhao Jihong uTransHub Technologies Co., Ltd. Director
Zhejiang Cooking Future Technology Co., Ltd. Chairman
Ren Luozhong Hangzhou Amblem Kitchenware Co., Ltd. Director
Hangzhou Amblem Kitchenware Co., Ltd. Supervisor
Shen Guoliang Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. Deputy chairman
Beijing ROBAM Electric Appliance Sales Co., Ltd. Supervisor
27
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Zhejiang Cooking Future Technology Co., Ltd. Director
Sichuan Langsha Holding Ltd. Independent director
Zhejiang Ruirentang Pharmaceutical Chain Co., Ltd. Independent director
He Yuanfu
CertusNet Information Co., Ltd. Independent director
Chint Anneng Digital Power (Zhejiang) Co., Ltd. Independent director
China Executive Leadership Academy Pudong Professor
Chen Yuanzhi Hangzhou Gosing Rubber&Plastic Materials Co., Ltd. Independent director
Research Center of Technological Innovation, Tsinghua
Researcher
University
Secretary to the board of
Yu Lieming Hamaton Automotive Technology Co., Ltd.
directors
Hangzhou ROBAM Fuchuang Investment Management
Supervisor
Co., Ltd.
Shanghai MXCHIP Information Technology Co., Ltd. Supervisor
Hangzhou Fortune Gas Cryogenic Group Co., Ltd. Director
Versolsolar Hangzhou Co., Ltd. Director
Hangzhou Nbond Nonwoven Co., Ltd. Director
Wang Gang De Dietrich Trade (Shanghai) Co., Ltd. Director
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. Director
Hangzhou Wheeler General Machinery Co., Ltd. Director
Hangzhou Guoguang Touring Commodity Co., Ltd. Director
Hangzhou Xiaodian Technology Co., Ltd. Independent director
Hangzhou Great Star Industrial Co., Ltd. Independent director
De Dietrich Trade (Shanghai) Co., Ltd. Director
Zhang Guofu Hangzhou Mingqi Electric Co., Ltd. Supervisor
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. Director
Tang Genquan Hangzhou ROBAM Gas Station Co., Ltd. Supervisor
Punishment of current directors, supervisors and senior management of the Company and those who left during the reporting
period by securities regulators in recent three years
□ Applicable Not applicable
3. Remuneration of Directors, Supervisors and Senior Management
Decision making procedures, determination basis and actual payment of remuneration of directors, supervisors and senior
management
The Company has established a sound performance appraisal system and salary system for senior management, whose work
performance is directly linked to their income. The remuneration and appraisal committee of the board of directors is responsible
for the year-end assessment of the working ability, performance of duties, completion of responsibility objectives, etc. of the
senior management, and preparing the remuneration plan and submitting it to the board of directors of the Company for approval.
The remuneration of directors, supervisors and senior management shall be paid on time.
Remuneration of directors, supervisors and senior management during the reporting period
Unit: 10,000 yuan
Whether to get
Total pretax
remuneration
remuneration
Name Position Gender Age Status of service from related
received from
parties of the
the Company
Company
Ren
Chairman Male 66 Incumbent 86.91 No
Jianhua
Deputy chairman,
Ren Fujia Male 39 Incumbent 121.02 No
general manager
Ren
Director Male 60 Incumbent 81.31 No
Luozhong
Zhao
Director Male 60 Incumbent 84.11 No
Jihong
Wang Director, secretary to
Male 47 Incumbent 98.43 No
Gang the board of directors
28
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Shen
Director Male 57 Incumbent 72.39 No
Guoliang
Ma Guoxin Independent director Male 69 Leaving office 6.69 No
He Yuanfu Independent director Male 67 Incumbent 9.52 No
Chen
Independent director Male 45 Incumbent 9.52 No
Yuanzhi
Yu
Independent director Male 45 Incumbent 2.86 No
Lieming
Zhang Chairman of the board
Male 57 Incumbent 66.52 No
Linyong of supervisors
Tang
Supervisor Male 62 Incumbent 82.99 No
Genquan
Zhang
Supervisor Male 56 Incumbent 66.52 No
Songnian
Zhang
Supervisor Female 44 Incumbent 13.72 No
Huifen
Shen
Supervisor Male 63 Incumbent 28.21 No
Yueming
Deputy general
He Yadong Male 48 Incumbent 114.89 No
manager
Xia Deputy general
Male 47 Incumbent 113.32 No
Zhiming manager
Zhou Deputy general
Male 47 Incumbent 262.66 No
Haixin manager
Zhang
Chief financial officer Male 53 Incumbent 102.63 No
Guofu
Total -- -- -- -- 1,424.22 --
VI. Performance of duties by directors during the reporting period
1. Board of Directors during this reporting period
Meeting session Convening date Date of disclosure Meeting resolution
The 9th Meeting of Announcement of the Resolution of
the Fifth Board of March 31, 2022 April 1, 2022 ROBAM's 9th Meeting of the Fifth
Directors Board of Directors
The 10thMeeting of Announcement of the Resolution of
the Fifth Board of April 19, 2022 April 20, 2022 ROBAM's 10th Meeting of the Fifth
Directors Board of Directors
The 11thMeeting of Announcement of the Resolution of
the Fifth Board of May 10, 2022 May 11, 2022 ROBAM's 11th Meeting of the Fifth
Directors Board of Directors
The 12thMeeting of Announcement of the Resolution of
the Fifth Board of August 25, 2022 August 26, 2022 ROBAM's 12th Meeting of the Fifth
Directors Board of Directors
The 13thMeeting of Announcement of the Resolution of
the Fifth Board of October 24, 2022 October 25, 2022 ROBAM's 13th Meeting of the Fifth
Directors Board of Directors
2. Attendance of directors at the board meetings and the general meeting of shareholders
Attendance of directors at the board meetings and the general meeting of shareholders
Whether not to
Number of
Number of personally
board meetings Number of Number of Number of
board meetings Number of attend the
Name of to be attended board meetings board meetings shareholders'
attended by board meetings board meeting
director during this attended on delegated to meetings
correspondenc absent for two
reporting site attend attended
e consecutive
period
times
Ren Jianhua 5 4 1 0 0 No 3
29
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Ren Fujia 5 4 1 0 0 No 3
Zhao Jihong 5 4 1 0 0 No 3
Ren Luozhong 5 4 1 0 0 No 3
Wang Gang 5 4 1 0 0 No 3
Shen Guoliang 5 4 1 0 0 No 3
Ma Guoxin 4 3 1 0 0 No 3
He Yuanfu 5 4 1 0 0 No 3
Chen Yuanzhi 5 2 3 0 0 No 3
Yu Lieming 1 1 0 0 0 No 0
3. Objections made by directors on relevant matters
Whether the director raises any objection to the relevant matters of the Company
□ Yes No
During the reporting period, the directors did not raise any objection to the relevant matters of the Company.
4. Other description on the performance of duties by the directors
Whether relevant suggestions of the director to the Company have been adopted: Not applicable
Description on adoption or non-adoption of relevant suggestions of the director to the Company: none
VII. Special committees under the board of directors during the reporting period
Number of
Name of Convening
Member meetings Meeting content
committee date
held
Audit He Yuanfu, Chen Yuanzhi, January 15,
1 1. Review the 2021 Audit Work Plan of the Company
committee Ren Luozhong 2022
1. Review the 2021 Audit Report of the Company;
2. Review the 2021 Internal Control Evaluation Report;
Audit He Yuanfu, Chen Yuanzhi, 3. Review the Proposal on Renewing the Appointment
1 April 18, 2022
committee Ren Luozhong of the Company's Audit Institution for 2022;
4. Review the Full Text of First Quarter Report of the
Company in 2022.
Audit He Yuanfu, Chen Yuanzhi, August 25, 1. Review the Semiannual Report of the Company in
1
committee Ren Luozhong 2022 2022
Audit He Yuanfu, Chen Yuanzhi, October 24, 1. Review the Third Quarter Report of the Company in
1
committee Ren Luozhong 2022 2022
Nomination He Yuanfu, Chen Yuanzhi, 1. Review theProposal on Nominating the Senior
1 May 4, 2022
committee Ren Jianhua Management of the Company
Nomination He Yuanfu, Chen Yuanzhi, August 25, 1. Review the Proposal on Nominating the Independent
1
committee Ren Jianhua 2022 Directors of the Company
Remuneration
Ma Guoxin, Chen Yuanzhi, January 20, 1. Review the Proposal on 2021 Annual Performance
and assessment 1
Ren Fujia 2022 Appraisal of Senior Management
committee
1. Review The Company's 2022 Stock Option Incentive
Remuneration Plan (draft) and its Abstract;
Ma Guoxin, Chen Yuanzhi, March 31,
and assessment 1 2. Review the Implementation, Assessment and
Ren Fujia 2022
committee Management Measures for the Company's 2022 Stock
Option Incentive Plan;
Strategic Ren Jianhua, Ren Fujia, Ma January 13, 1. Review the Proposal on 2021 Annual Strategic
1
committee Guoxin, Wang Gang 2022 Review
VIII. Work of board of supervisors
Whether the board of supervisors find any risk of the Company in the supervision activities during the reporting period
□ Yes No
The board of supervisors has no objection to the supervisory matters during the reporting period.
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
IX. Company Employees
1. Number of employees, professional composition and education background
Number of employees in the parent company at the end of the
3,322
reporting period (person)
Number of employees in major subsidiaries at the end of the
1,773
reporting period (person)
Total number of employees at the end of the reporting period
5,095
(person)
Total number of employees receiving salary in the current period
5,102
(person)
Number of retired employees whose expenses need to be borne
91
by the parent company and major subsidiaries (person)
Professional composition
Professional composition categories Number of professionals (person)
Production personnel 1,937
Sales personnel 1,467
Technical personnel 929
Financial personnel 176
Administrative personnel 586
Total 5,095
Education background
Education background categories Number (person)
Doctor 8
Master 200
Bachelor 1,499
College 1,028
Other 2,360
Total 5,095
2. Pay policy
The Company has formulated “Salary Management Standards” and “Performance Management Standards”, and established a
salary management system based on the post value and centered on the competency and performance evaluation of employees,
according to the salary status of the regional market and industry.
3. Training plan
In 2022, the Company carried out various trainings, including Lemon, Blue Whale, Sunflower, Ivy League and other projects as
well as the Elite Plan; As the Company's own mobile learning online platform, Chestnut School played an important role in the
achievement transformation of the development course of internal trainer, and the Company's employees' participation in learning
has been greatly improved.
4. Labor outsourcing
Applicable □ Not applicable
Total hours of labor outsourcing (hours) 3,221,420
Total remuneration paid for labor outsourcing (yuan) 137,767,526.04
X. Profit distribution and share capital increase from capital surplus
Profit distribution policy during the reporting period, especially the formulation, implementation or adjustment of cash dividend
policy
Applicable □ Not applicable
Description for cash dividend policy
Does it meet the requirements of the Company’s articles of association and of the Yes
31
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
resolutions of shareholders’ meeting?
Is the dividend distribution standard and proportion specific and clear? Yes
Are relevant decision-making procedures and mechanisms complete? Yes
Have the independent directors performed their duties and fulfilled their due roles? Yes
Do the minor shareholders have the chance to fully express their opinions and demands,
Yes
and are their legal rights and interests fully protected?
Are the conditions and procedures normative and transparent in case of adjustments or
Yes
changes of the cash dividend policy?
The Company made profits during the reporting period and the profits available for distribution to shareholders of the parent
company were positive, but no proposal for the distribution of cash dividend was put forward
□ Applicable Not applicable
Profit distribution and share capital increase from capital surplus during the reporting period
Applicable □ Not applicable
Bonus shares per 10 shares (shares) 0
Dividend per 10 shares (yuan) (including tax) 5
Equity base of distribution plan (shares) 944,094,916
Amount of cash dividend (yuan) (including tax) 472,047,458.00
Amount of cash dividend in other forms (e.g. share repurchase)
0.00
(yuan)
Amount of cash dividend (including other forms) (yuan) 472,047,458.00
Distributable profit (yuan) 8,156,489,150.49
Ratio of total amount of cash dividend (including other forms)
100%
to total amount of distributable profit
Cash dividend distribution in this period
Should the Company be in a growing stage and have major capital expenditure arrangements, the cash dividend should account for a
minimum of 20% of the profit distribution when the profit is distributed.
Description for details of profit distribution or share capital increase from capital surplus plan
According to the standard unqualified audit report issued by ShineWing Certified Public Accountants, the Company’s net profit
attributable to the parent company owner in 2022 was RMB 1,657,226,772.47 (number of parent company), plus the undistributed
profit (parent company) of RMB 6,971,309,836.02 at the beginning of the year, minus the cash dividend of profit distribution of
2021, i.e., RMB 472,047,458.00, the Company's profit available to shareholders at the end of 2022 was RMB 8,156,489,150.49.
Taking 944,094,916 shares as the radix (the existing total capital stock of 949,024,050 shares, excluding 4,929,134 shares
repurchased), the Company distributed cash dividends of RMB 5 (tax inclusive) for every 10 shares to all shareholders, amounting up
to a total of RMB 472,047,458.00.
In case of any change due to the listing of new shares, the exercising of equity incentive, the conversion of convertible bonds into
shares, share repurchase, etc. during the period from the disclosure of the distribution plan to the equity registration date when the
profit distribution is implemented, the distribution proportion will be adjusted accordingly according to the principle that the total
amount of cash dividends will remain unchanged.
XI. Implementation of the Company's equity incentive plan, employee stock ownership
plan or other employee incentive measures
Applicable □ Not applicable
1. Equity incentive
2021 stock option plan:
1. 1. On April 19, 2022, the Company held the 10th meeting of the fifth Board of Directors and the 10thmeeting of the fifth Board
of Supervisors, deliberated and adopted the Proposal on the Cancellation of Partial Stock Options in the 2021 Stock Option
Incentive Plan and the Proposal on Cancellation of the 2021 Stock Option Incentive Plan for Failure to Meet the Exercise
Conditions during the First Exercise Period.
In accordance with relevant laws and regulations and the Company's Proposal on 2021 Stock Option Incentive Plan (draft), 4
incentive objects no longer meet the incentive conditions due to their resignation, thus the Company will cancel 80,000 stock
options which have been granted to but not exercised by such incentive objects; Due to the failure to meet the exercise conditions
of stock options in 2021 during the first exercise period, the Company will cancel 1,184,000 stock options held by the incentive
objects that have been granted in the first exercise period but do not meet the exercise conditions.
32
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
2. On April 26, 2022, after verification and confirmation by Shenzhen Branch of China Securities Depository and Clearing
Corporation Limited, the cancellation of the aforementioned 1,264,000 stock options has been completed. The Company has
canceled a total of 1,264,000 stock options, accounting for 0.13% of the Company's current total capital stock. The cancellation of
stock options conforms to relevant laws and regulations, the Articles of Association and the Incentive Plan (Draft). The stock
options that have been canceled this time have not yet been exercised, and the cancellation will not have any impact on the
Company's capital stock, and the capital stock structure has not changed.
2022 stock option plan:
1. On March 31, 2022, the Company held the 9th meeting of the fifth board of directors, deliberated and adopted the Proposal on
2022 Stock Option Incentive Plan (draft) of the Company and its Abstract and other relevant proposals, and the independent
directors expressed their independent consent on the matters related to the Company's stock option incentive plan. The 9th meeting
of the fifth board of supervisors of the Company deliberated and adopted the above-mentioned relevant proposals and issued the
consent. The Company disclosed the above matters on April 1, 2022.
2. From April 1, 2022 to April 10, 2022, the Company publicized the names and positions of the incentive objects of the stock
option incentive plan through internal posting. On April 13, 2022, the board of supervisors of the Company issued the Review
Opinions and Announcement of the Board of Supervisors on the List of Incentive Objects of the 2022 Stock Option Incentive Plan.
On the same day, the Company disclosed the “Self-inspection Report on Insiders’ and Incentive Objects’ Trading of Company
Stock with Inside Information of 2022 Restricted Stock Incentive Plan”.
3. On April 21, 2022, the Company held the first extraordinary general meeting of shareholders in 2022, deliberated and adopted
the Proposal on 2022 Stock Option Incentive Plan (draft) of the Company and its Abstract and other relevant 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 grant date of stock option, grant stock option to incentive objects when they meet the conditions and handle all
matters necessary for granting equity.
4. On May 10, 2022, the Company's 11th meeting of the fifth Board of Directors and the 11th meeting of the fifth Board of
Supervisors deliberated and adopted the Proposal on Granting Stock Options to Incentive Objects. The board of supervisors once
again verified the list of incentive objects granted and expressed their consent. The independent directors of the Company
expressed their independent consent thereon.
5. On May 26, 2022, the Company completed the registration of the option plan grant. Due to the resigned personnel did not have
the qualification of incentive objects, the actual number of incentive objects granted in this stock option incentive plan has been
adjusted from 285 to 282, and the total number of equity actually granted has been adjusted from 4,810,000 to 4,780,000,
accounting for approximately 0.50% of the Company's current total capital stock.
Equity incentive obtained by directors and senior management of the Company
Applicable Not applicable
Evaluation mechanism and incentive for senior management:
1. On April 14, 2021, the Company held the 4th meeting of the fifth board of directors, deliberated and adopted the Proposal on
Business Partner Shareholding Plan (draft) of the Company and its Abstract and other relevant proposals, and the independent
directors expressed their independent consent on the matters related to the Company's business partner shareholding plan. The 4th
meeting of the fifth board of supervisors of the Company deliberated and adopted the above-mentioned relevant proposals and
expressed their consent. The Company disclosed the above matters on April 15, 2021.
2. On April 30, 2021, the Company held the first extraordinary general meeting of shareholders in 2021, deliberated and adopted
the Proposal on Business Partner Shareholding Plan (Draft) of the Company and its Abstract and other relevant proposals. The
plan was approved by the first extraordinary general meeting of shareholders in 2021, and the board of directors was authorized to
determine and handle all matters related to the plan.
3. On April 20, 2022, the Company disclosed the Announcement on the Failure to Meet the 2021 Assessment Conditions for the
Business Partner Shareholding Plan. According to relevant provisions of the shareholding plan, in case of a failure of meeting the
2021 assessment conditions for the business partner shareholding plan, the Company will not withdraw the special funds for the
shareholding plan this year.
2. Implementation of the employee stock ownership plan
□ Applicable Not applicable
3. Other employee incentives
□ Applicable Not applicable
33
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
XII. Construction and implementation of internal control system during the reporting
period
1. Construction and implementation of internal control
See the 2022 Internal Control Self-evaluation Report disclosed by the Company on the designated information disclosure website
http://www.cninfo.com.cn for details.
2. Details of significant internal control defects discovered during the reporting period
□ Yes No
XIII. Management and control of subsidiaries during the reporting period
The Company appoints directors or senior management to hold regular business and financial meetings every month according to
the Company's development and business objectives specified in the annual budget planning meeting, and timely review and
follow up the implementation of the subsidiaries' business plans and the completion of various performance evaluation indicators.
According to the requirements of the Company's Information Disclosure Management System, each subsidiary shall timely report
relevant information on major business/financial matters to the headquarters of the listed company, give timely feedback on the
progress or changes of major matters, and perform the approval procedures of the board of directors and the general meeting of
shareholders when necessary.
XIV. Internal control self-evaluation report or internal control audit report
1. Internal control self-evaluation report
Full disclosure date of internal control self-
April 26, 2023
evaluation report
Index of full disclosure of internal control
Cninfo: Full text of 2022 internal control self-evaluation report of ROBAM
evaluation report
Proportion of the total assets of the unit
included in the evaluation scope to the total
100.00%
assets of the consolidated financial
statement of the Company
Proportion of operating income of the unit
included in the evaluation scope to the
100.00%
operating income of the consolidated
financial statement of the Company
Defect identification standard
Number of major defects in financial
0
reports
Number of major defects in non-financial
0
reports
Number of important defects in financial
0
reports
Number of important defects in non-
0
financial reports
1. Defect identification standard for internal control of financial reports
Defect Definition Quantitation standard Qualitative standard
Signs of major defects in the financial
The quantitative standard takes the operating income
report include:
and the total assets as the measurement index.
A combination of one or 1) The internal control defects that may cause losses 1) Corrupt practice of directors,
more internal control or whose losses are related to the income statement supervisors and senior management;
deficiencies existing in 2) Misstatement correction of material
are measured on the basis of operating income:
the internal control that errors in financial reports that have been
Major Major defect: misstatement amount > 2% of
may result in a failure to announced by the Company;
defect operating income;
timely prevent or detect 2) The internal control defects that may cause losses 3) Material misstatement in the current
and correct material financial report, which is not found by the
or whose losses are related to the assets management
misstatement in the internal control in the process of
are measured on the basis of total assets:
financial statements. operation;
Major defect: misstatement amount ＞1% of total
4) Ineffective control and supervision of
assets;
the Company’s external and internal
34
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
financial reports by the audit committee
and audit department.
Signs of important defects in the financial
report include:
1) Failure to select and apply accounting
The quantitative standard takes the operating income policies in accordance with generally
A combination of one or and the total assets as the measurement index. accepted accounting principles;
more internal control 1) The internal control defects that may cause losses 2) No anti-fraud procedures and control
deficiencies existing in or whose losses are related to the income statement measures have been established;
the internal control that are measured on the basis of operating income: 3) There is no corresponding control
Import
are not as severe as Important defect: 1% of operating income < mechanism established or no
ant
major defects, but are misstatement amount < 2% of operating income; implementation of and no corresponding
defect
still sufficient to attract 2) The internal control defects that may cause losses compensatory control for the accounting
the attention of corporate or whose losses are related to the assets management treatment of non-routine or special
financial reporting are measured on the basis of total assets: transactions;
supervisors. Important defect: 0.5% of total assets < misstatement 4) One or more defects in the control of
amount < 1% of total assets; the final financial reporting process and
no reasonable assurance that the financial
statements will achieve the objective of
authenticity and completeness.
The quantitative standard takes the operating income
and the total assets as the measurement index.
1) The internal control defects that may cause losses
or whose losses are related to the income statement
It refers to other defects are measured on the basis of operating income: Common defects in financial reports refer
Comm
other than the major Common defect: misstatement amount < 1% of to control defects other than the major
on
defects and important operating income; defects and important defects mentioned
defect
defects. 2) The internal control defects that may cause losses above.
or whose losses are related to the assets management
are measured on the basis of total assets:
Common defect: misstatement amount < 0.5% of
total assets;
2. Defect identification standard for internal control of non-financial reports
Defect Definition Quantitation standard Qualitative standard
It refers to a 1) The defects in non-financial reports are
combination of mainly determined according to the influence of
one or more the defects on the business process effectiveness
control defects that and the possibility of occurrence;
Major Major defect: direct property loss ＞RMB 20
may cause an 2) The defects with high possibility that will
defect million;
enterprise to seriously reduce the work efficiency or effect, or
significantly seriously increase the uncertainty of the effect, or
deviate from make it seriously deviate from the expected goal
control objectives. are major defects;
It refers to a
combination of
one or more 1) The defects in non-financial reports are
control defects mainly determined according to the influence of
whose severity and the defects on the business process effectiveness
economic and the possibility of occurrence;
Important Important defect: RMB 5 million < direct
consequences are 2) The defects with high possibility that will
defect property loss < RMB 20 million;
inferior to those of significantly reduce the work efficiency or effect,
a major defect but or significantly increase the uncertainty of the
may cause an effect, or make it significantly deviate from the
enterprise to expected goal are important defects;
deviate from
control objectives.
1) The defects in non-financial reports are
mainly determined according to the influence of
Other control
the defects on the business process effectiveness
Common defects other than Common defect: direct property loss < RMB 5
and the possibility of occurrence;
defect major defects and million;
2) The defects with low possibility that will
important defects.
reduce the work efficiency or effect, or increase
the uncertainty of the effect, or make it deviate
35
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
from the expected goal are common defects;
2. Internal control audit report
Applicable □ Not applicable
Deliberations in the internal control audit report
On December 31, 2022, ROBAM maintained effective internal control over financial reporting in all major aspects in accordance
with the Basic Standards for Enterprise Internal Control and relevant regulations.
Disclosure of internal control audit report Disclosure
Disclosure date of the full text of internal control audit report April 26, 2023
Disclosure index of the full text of internal control audit report Cninfo: Full text of 2022 internal control audit report of ROBAM
Type of the opinions on internal control audit report Standard unqualified opinions
Whether there are significant defects in non-financial reports No
Whether the accounting firm issues an internal control audit report with non-standard opinions
□ Yes No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report of the board of
directors
Yes □ No
XV. Rectification of problems in self-inspection of special actions for governance of listed
companies
According to the requirements of the regulatory authorities, the Company has carried out a four-month special self-inspection on
the governance of listed companies since December 17, 2020. In the special self-inspection, the Company comprehensively
reviewed the corporate governance in seven aspects: the basic situation of listed companies, the operation and decision-making of
organizations, the controlling shareholders, actual controllers and related parties, the construction of internal control standard
system, information disclosure and transparency and institutions, foreign investors; find problems and deficiencies according to
the regulatory rules, the Articles of Association and other normative documents, take the special self-inspection activity as an
opportunity to improve the governance level and safeguard the interests of investors. Through such self-inspection, the Company
does not violate the provisions of the state and the CSRC. The corporate governance level meets the requirements of laws and
regulations such as the Company Law, the Securities Law, the Guidelines for Standard Operation of Listed Companies of
Shenzhen Stock Exchange and the Guidelines for Articles of Association of Listed Companies, and the Company’s governance
structure is relatively perfect and its operation is standardized. The Company will continue to sort out and update the issued
internal control system of the Company in a timely manner in accordance with the existing laws and regulations, and constantly
establish and improve the internal control system of the Company to make it play a real and effective role.
36
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Section 5 Environmental and social responsibility
I. Major environmental issues
Whether the listed company and its subsidiaries are key pollutant discharging units announced by environmental protection
authorities
□ Yes No
Measures taken to reduce carbon emissions during the reporting period and relevant effects
□ Applicable Not applicable
Reasons for non-disclosure of other environmental information: none
II. Social responsibility
See the 2022 Environmental, Social and Corporate Governance Report disclosed by the Company on the designated information
disclosure media http://www.cninfo.com.cn for details.
III. Consolidate and expand the achievements of poverty alleviation and rural
revitalization
See the 2022 Environmental, Social and Corporate Governance Report disclosed by the Company on the designated information
disclosure media http://www.cninfo.com.cn for details.
37
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Section 6 Important Matters
I. Performance in fulfilling commitments
1. Commitments fulfilled within and not fulfilled by the end of the reporting period by the Company’s
actual controller, shareholders, related parties, acquirer and other commitment parties
Applicable □ Not applicable
Comm Time limit
Commitment Commitment Commitment Degree of
Commitment content itment for
reason party type performance
time acceptance
After the expiry of the 36-month
Directors, sales restriction period, the shares
supervisors and transferred each year during
Commitment senior Commitment his/her tenure shall not exceed Nove
made at the management to restriction 25% of the total number of shares mber Strict
Long-term
time of IPO or directly or on sales of held directly or indirectly in the 23, performance
refinancing indirectly shares Company; the Company shares 2010
holding shares directly or indirectly held shall
of the Company not be transferred within six
months after the resignation.
1. The Company/I and other
enterprises under the control of
the Company/me do not, and will
not, directly or indirectly, engage
in any activities that constitute
horizontal competition with the
existing and future business of
ROBAM and its holding
subsidiaries; 2. If any business
opportunity obtained the
Company/I and other enterprises
under the control of the
Hangzhou Company/me from any third party
Commitment ROBAM Commitment constitutes or may constitute Nove
made at the Industrial on avoiding substantial competition with the mber Strict
Long-term
time of IPO or Group Co., horizontal business of ROBAM, the 23, performance
refinancing Ltd.; Ren competition Company/I will immediately 2010
Jianhua notify ROBAM and transfer such
business opportunity to ROBAM;
3. The Company/I and other
enterprises under the control of
the Company/me commit not to
provide technical information,
process flow, marketing channels
or other trade secrets to other
companies, enterprises,
organizations or individuals
whose business constitutes
competition with the business of
ROBAM.
Whether the
commitment is
Yes
fulfilled on
time
2. In case the Company’s asset or project saw earning expectation, and the reporting period is still
covered by the term of the earning expectation, the Company shall make a statement about the asset or
project fulfilling the original expectation and the reasons thereof.
□ Applicable Not applicable
38
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
II. Non-operating occupation of funds of listed companies by controlling shareholders
and other related parties
□ Applicable Not applicable
No non-operating occupation of funds of listed companies by controlling shareholders and other related parties during the
reporting period.
III. Illegal external guarantee
□ Applicable Not applicable
No illegal external guarantee of the Company during the reporting period.
IV. Statement of the board of directors on the latest “non-standard audit report”
□ Applicable Not applicable
V. Statement of the board of directors, the board of supervisors and independent
directors (if any) on the “non-standard audit report” of the accounting firm during the
reporting period
□ Applicable Not applicable
VI. Explanation of changes in accounting policy and accounting estimates or significant
accounting error correction when compared to the financial statements of the previous
year
□ Applicable Not applicable
There is no change in accounting policy, accounting estimate or significant accounting error correction in the reporting period.
VII. Explanation of changes in the scope of combined financial statements when compared
with financial statements of the previous fiscal year
Applicable □ Not applicable
In June 22, 2022, the Company invested and established Hangzhou Jinhe Electric Appliances Co., Ltd. with the
registered capital of RMB 10 million and shareholding ratio of 100%. Such company belongs to the retail and
wholesale industry and mainly engages in the sales of kitchen appliance products of the Company. Now, its registered
capital has been paid in and the company has been put into operation.
VIII. Appointment of and dismissal of accounting firms
Accounting firm currently appointed
Shinewing Certified Public Accountants (special general
Name of Chinese accounting firm
partnership)
Remuneration (10,000 yuan) 145
Term of audit services 4
CPAs Lei Yongxin, Wang Qing
Term of auditing services of CPAs 4
Has the accounting firm been changed within the reporting period?
□ Yes No
Employment of internal control audit accounting firm, financial advisor or sponsor
Applicable Not applicable
ShineWing Certified Public Accountants (Special general partnership) served as the internal control audit agency of the Company
in 2022, with an audit fee of RMB 1,450,000, including: RMB 1,150,000 for financial statement audit and RMB 300,000 for
internal control audit.
39
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
IX. Delisting confronted upon disclosure of the annual report
□ Applicable Not applicable
X. Bankruptcy reorganization
□ Applicable Not applicable
No bankruptcy reorganization of the Company during the reporting period.
XI. Major litigation, arbitration matters
□ Applicable Not applicable
No major litigation or arbitration matters of the Company during the reporting period.
XII. Punishment and rectification
□ Applicable Not applicable
No punishment or rectification of the Company during the reporting period.
XIII. Credit conditions of the Company, its controlling shareholders and actual controllers
□ Applicable Not applicable
XIV. Major related transactions
1. Related transactions related to daily operation
□ Applicable Not applicable
No related transactions related to daily operation of the Company during the reporting period.
2. Related transactions arising from the acquisition or sale of assets or equity
□ Applicable Not applicable
No Related transactions arising from the acquisition or sale of assets or equity of the Company during the reporting period.
3. Related transactions of joint foreign investment
□ Applicable Not applicable
No related transactions of joint foreign investment of the Company during the reporting period.
4. Related claims and debts
□ Applicable Not applicable
No related claims and debts of the Company during the reporting period.
5. Transactions with related financial companies
□ Applicable Not applicable
There is no deposit, loan, credit or other financial business between the Company and the related financial companies and the
related parties.
6. Transactions between the financial companies controlled by the Company and related parties
□ Applicable Not applicable
There is no deposit, loan, credit or other financial business between the financial companies controlled by the Company and the
related parties.
7. Other major related transactions
□ Applicable Not applicable
40
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
No other major related transactions of the Company during the reporting period.
XV. Major contracts and their performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ Applicable Not applicable
No trusteeship of the Company during the reporting period.
(2) Contracting
□ Applicable Not applicable
No contracting of the Company during the reporting period.
(3) Lease
□ Applicable Not applicable
No lease of the Company during the reporting period.
2. Major guarantee
□ Applicable Not applicable
No major guarantee of the Company during the reporting period.
3. Entrusted cash asset management
(1) Entrusted financing
Applicable □ Not applicable
Entrusted financing during the reporting period
Unit: 10,000 yuan
Overdue amount
of impairment
Source of funds for Amount incurred in Overdue amount not accrued for
Specific type Outstanding balance
entrusted financing entrusted financing recovered financial
management not
recovered
Bank financial
Owned fund 252,000.00 251,184.45 0 0
products
Total 252,000.00 251,184.45 0 0
Specific circumstance of high-risk entrusted financing with significant single amount or with low security and poor liquidity
□ Applicable Not applicable
The entrusted financing is expected not to recover the principal or has other circumstances that may cause impairment
□ Applicable Not applicable
(2) Entrusted loans
□ Applicable Not applicable
No entrusted loans of the Company during the reporting period.
4. Other major contracts
□ Applicable Not applicable
No other major contracts of the Company during the reporting period.
41
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
XVI. Description of other important events
□ Applicable Not applicable
No other important events to be described during the reporting period.
XVII. Major events of subsidiaries
Applicable □ Not applicable
42
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Section 7 Changes in Shares and Shareholders
I. Change in shares
1. Change in shares
Unit: share
Before this change Increase / decrease (+, -) After this change
Share
capital
New
Share increase
Quantity Proportion issue of Other Subtotal Quantity Proportion
donation from
shares
reserved
funds
-
I. Restricted shares 14,123,269 1.49% -2,070,000 12,053,269 1.27%
2,070,000
1. State shareholding
2. State legal person
shareholding
-
3. Other domestic shareholding 14,123,269 1.49% -2,070,000 12,053,269 1.27%
2,070,000
Wherein: domestic legal person
shareholding
Domestic natural person -
14,123,269 1.49% -2,070,000 12,053,269 1.27%
shareholding 2,070,000
4. Foreign shareholding
Wherein: foreign legal person
shareholding
Foreign natural person
shareholding
II. Unrestricted shares 934,900,781 98.51% 2,070,000 2,070,000 936,970,781 98.73%
1. RMB common share 934,900,781 98.51% 2,070,000 2,070,000 936,970,781 98.73%
2. Foreign shares listed in
China
3. Foreign shares listed abroad
4. Other
III. Total amount of shares 949,024,050 100.00% 0 0 949,024,050 100.00%
Causes for change in shares
Applicable □ Not applicable
Unlocked by the directors, supervisors and senior management of the Company based on 25% of the Company's shares registered
in his/her name on the last trading day of the previous year.
Approval of changes in shares
□ Applicable Not applicable
Transfer of share changes
□ Applicable Not applicable
Influence of share changes on the basic EPS, diluted EPS, net assets per share attributable to common shareholders of the
Company and other financial indexes in the most recent year and the most recent period
□ Applicable Not applicable
Other information the Company deems necessary or required by the securities regulatory authorities to disclose
□ Applicable Not applicable
2. Changes in restricted shares
Applicable □ Not applicable
Unit: share
43
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Number of Number of
Number of restricted shares Number of
Shareholde restricted shares shares released from restricted shares Reasons for
Date of lifting the restricted sale
r's name at the beginning increased in restricted sale at the end of the restricted sale
of the period current in current period
period period
Lock-up shares
for directors, Unlock based on 25% of the Company's shares
Zhao
1,267,549 0 316,875 950,674 supervisors, registered in his/her name on the last trading day
Jihong
senior of the previous year
management
Lock-up shares
for directors, Unlock based on 25% of the Company's shares
Zhang
834,234 0 208,500 625,734 supervisors, registered in his/her name on the last trading day
Songnian
senior of the previous year
management
Lock-up shares
for directors, Unlock based on 25% of the Company's shares
Zhang
834,236 0 208,500 625,736 supervisors, registered in his/her name on the last trading day
Linyong
senior of the previous year
management
Lock-up shares
for directors, Unlock based on 25% of the Company's shares
Zhang
308,962 0 0 308,962 supervisors, registered in his/her name on the last trading day
Guofu
senior of the previous year
management
Lock-up shares
for directors, Unlock based on 25% of the Company's shares
Xia
308,962 0 0 308,962 supervisors, registered in his/her name on the last trading day
Zhiming
senior of the previous year
management
Lock-up shares
for directors, Unlock based on 25% of the Company's shares
Wang
432,562 0 0 432,562 supervisors, registered in his/her name on the last trading day
Gang
senior of the previous year
management
Lock-up shares
for directors, Unlock based on 25% of the Company's shares
Tang
834,234 0 208,500 625,734 supervisors, registered in his/her name on the last trading day
Genquan
senior of the previous year
management
Lock-up shares
for directors, Unlock based on 25% of the Company's shares
Shen
1,143,198 0 285,750 857,448 supervisors, registered in his/her name on the last trading day
Guoliang
senior of the previous year
management
Lock-up shares
for directors, Unlock based on 25% of the Company's shares
Ren
1,267,546 0 316,875 950,671 supervisors, registered in his/her name on the last trading day
Luozhong
senior of the previous year
management
Lock-up shares
for directors, Unlock based on 25% of the Company's shares
Ren
4,442,362 0 0 4,442,362 supervisors, registered in his/her name on the last trading day
Jianhua
senior of the previous year
management
Lock-up shares
for directors, Unlock based on 25% of the Company's shares
Ren Fujia 2,100,056 0 525,000 1,575,056 supervisors, registered in his/her name on the last trading day
senior of the previous year
management
Lock-up shares
for directors, Unlock based on 25% of the Company's shares
He Yadong 308,962 0 0 308,962 supervisors, registered in his/her name on the last trading day
senior of the previous year
management
Lock-up shares
Unlock based on 25% of the Company's shares
Shen for directors,
40,406 0 0 40,406 registered in his/her name on the last trading day
Yueming supervisors,
of the previous year
senior
44
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
management
Total 14,123,269 0 2,070,000 12,053,269 -- --
II. Securities issuance and listing
1. Securities issuance (excluding preferred shares) during the reporting period
□ Applicable Not applicable
2. Description of changes in the total number of shares, shareholder structure, asset and liability
structure of the Company
□ Applicable Not applicable
3. Existing internal employee shares
□ Applicable Not applicable
III. Shareholders and actual controllers
1. Number and shareholding of the Company's shareholders
Unit: share
Total
Total number
number of
of common
Total number preferred Total number of preferred
shareholders at
of common shareholders shareholders with voting
the end of the
shareholders at with voting rights restored at the end of
59,999 previous 53,121 0 0
the end of the rights the previous month before the
month before
reporting restored at disclosure date of the annual
the disclosure
period the end of report
date of the
the reporting
annual report
period
Shareholders holding more than 5% shares or top 10 shareholders
Increase or Number of Pledge, mark or freeze
Number of Number of
decrease shares held
Shareholder's Shareholder Shareholding shares held at shares held with
during the with limited Status of
name nature ratio the end of the unlimited sales Quantity
reporting sales shares
reporting period conditions
period conditions
Hangzhou
ROBAM Domestic non-
Industrial state legal 49.68% 471,510,000 471,510,000
Group Co., person
Ltd.
Hong Kong
Securities
Overseas legal
Clearing 9.39% 89,096,531 89,096,531
person
Company
Limited
TEMASEK
FULLERTON Overseas legal
1.76% 16,730,061 16,730,061
ALPHA PTE person
LTD
Domestic
Shen Guoying 1.29% 12,240,000 12,240,000
natural person
CITIC
Securities
Company
Limited - Other 0.74% 7,029,066 7,029,066
Social
Security Fund
1106 Portfolio
PICC Property
and Casualty
Company
Limited - Other 0.74% 7,011,440 7,011,440
Traditional -
General
Insurance
45
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Products
National
Social
Other 0.72% 6,822,706 6,822,706
Security Fund
418 Portfolio
Hangzhou
Domestic non-
Jinchuang
state legal 0.70% 6,640,085 6,640,085
Investment
person
Co., Ltd.
Hangzhou
Domestic non-
Yinchuang
state legal 0.67% 6,318,000 6,318,000
Investment
person
Co., Ltd.
Domestic
Ren Jianhua 0.62% 5,923,150 4,442,362 1,480,788
natural person
Situation of strategic investors
or general legal persons
becoming the top 10
N/A
shareholders due to the
allotment of new shares (if any)
(see note 3)
Description of the above- The actual controller of the Company’s controlling shareholder Hangzhou ROBAM Industrial Group Co., Ltd. and
mentioned shareholder the shareholder Hangzhou Jinchuang Investment Co., Ltd. is Mr. Ren Jianhua, and the natural person shareholder
association or concerted action Shen Guoying is the wife of Ren Jianhua. The above shareholders have the possibility of acting in unison.
Description of the above
shareholders involved in
N/A
entrusting / entrusted voting
right and waiver of voting right
Special note on the existence of
special repurchase accounts
N/A
among the top 10 shareholders
(if any) (see Note 10)
Shareholding of top 10 shareholders with unlimited sales conditions
Number of shares with unlimited sales conditions held at the end of the Share type
Shareholder's name
reporting period Share type Quantity
Hangzhou ROBAM Industrial
471,510,000 RMB common share 471,510,000
Group Co., Ltd.
Hong Kong Securities Clearing
89,096,531 RMB common share 89,096,531
Company Limited
TEMASEK FULLERTON
16,730,061 RMB common share 16,730,061
ALPHA PTE LTD
Shen Guoying 12,240,000 RMB common share 12,240,000
CITIC Securities Company
Limited - Social Security Fund 7,029,066 RMB common share 7,029,066
1106 Portfolio
PICC Property and Casualty
Company Limited - Traditional 7,011,440 RMB common share 7,011,440
- General Insurance Products
National Social Security Fund
6,822,706 RMB common share 6,822,706
418 Portfolio
Hangzhou Jinchuang
6,640,085 RMB common share 6,640,085
Investment Co., Ltd.
Hangzhou Yinchuang
6,318,000 RMB common share 6,318,000
Investment Co., Ltd.
Industrial and Commercial
Bank of China Limited－
Penghua selects hybrid 5,787,141 RMB common share 5,787,141
securities investment funds
with ingenuity
Description of the association
or concerted action between top
10 public shareholders with
The actual controller of the Company’s controlling shareholder Hangzhou ROBAM Industrial Group Co., Ltd. and
unlimited sales conditions, and
the shareholder Hangzhou Jinchuang Investment Co., Ltd. is Mr. Ren Jianhua, and the natural person shareholder
between top 10 public
Shen Guoying is the wife of Ren Jianhua. The above shareholders have the possibility of acting in unison.
shareholders with unlimited
sales conditions and top 10
shareholders
46
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Securities margin trading
business attended by top 10
N/A
ordinary shareholders (if any)
(see note 4)
Whether the Company’s top 10 common shareholders and op 10 common shareholders with unlimited sales conditions agreed on a
repurchase transaction during the reporting period
□ Yes No
The Company’s top 10 common shareholders and op 10 common shareholders with unlimited sales conditions did not agree on a
repurchase transaction during the reporting period
2. Controlling shareholders of the Company
Nature of controlling shareholder: natural person holding
Type of controlling shareholder: legal person
Controlling shareholder's Legal Representative
Date of establishment Organization code Main business
name / Head of Unit
Hangzhou ROBAM
Industrial investment,
Industrial Group Co., Ren Jianhua March 22, 1995 913301101438402503
import and export of goods
Ltd.
Equity of other domestic
and foreign listed
companies controlled
The controlling shareholder of Hangzhou Nbond Nonwoven Co., Ltd., and the participating shareholder of
and participated by
Zhejiang CFMOTO Power Co., Ltd, Hangzhou Fortune Gas Cryogenic Group Co., Ltd.
controlling shareholders
during the reporting
period
Change of controlling shareholders during the reporting period
□ Applicable Not applicable
No change in controlling shareholders during the reporting period.
3. Actual controller of the Company and the person acting in concert
Nature of actual controller: domestic natural person
Type of actual controller: natural person
Whether to obtain the right of
Relationship with actual
Actual controller’s name Nationality residence in other countries or
controller
regions
Ren Jianhua Self Chinese No
Main occupations and positions Please refer to the resume of the Company's directors for details
Domestic and foreign listed
Actual controller of Hangzhou ROBAM Appliances Co., Ltd. and Hangzhou Nbond Nonwoven
companies that have held shares
Co., Ltd.
in the past 10 years
Changes in actual controller during the reporting period
□ Applicable Not applicable
No change in actual controller during the reporting period.
Block diagram of property right and control relationship between the Company and actual controller
47
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Ren Jianhua
Jinchuang
ROBAM Group
Investment
Hangzhou ROBAM Appliances Co., Ltd.
The actual controller controls the Company through trust or other asset management methods
□ Applicable Not applicable
4. The cumulative number of pledged shares of the Company's controlling shareholder or the largest
shareholder and its persons acting in concert accounts for 80% of the Company's shares held by
them
□ Applicable Not applicable
5. Other legal person shareholders holding more than 10%
□ Applicable Not applicable
6. Restricted share reduction of controlling shareholders, actual controller, reorganizers and other
commitment subjects
□ Applicable Not applicable
IV. Specific implementation of share repurchase in the reporting period
Implementation progress of share repurchase
□ Applicable Not applicable
Implementation progress of reducing repurchased shares by centralized competitive bidding trading
□ Applicable Not applicable
48
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Section 8 Preferred Shares
□ Applicable Not applicable
No preferred shares of the Company during the reporting period.
49
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Section 9 Corporate Bonds
□ Applicable Not applicable
50
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Section 10 Financial Report
I. Audit report
Type of audit opinion Standard unqualified opinion
Date of signing of audit report April 25, 2023
Shinewing Certified Public Accountants (special general
Name of audit institution
partnership)
Name of Certified Public Accountant Lei Yongxin, Wang Qing
Audit report
XYZH/2023BJAA10B0385
To all shareholders of Hangzhou ROBAM Appliances Co., Ltd.:
I. Audit opinion
We have audited the accompanying financial statements of Hangzhou ROBAM Appliances Co., Ltd. (hereinafter referred to as
ROBAM), including the consolidated balance sheet and the balance sheet of parent company as of December 31, 2022,
consolidated income statement and income statement of parent company, consolidated cash flow statement and cash flow
statement of parent company, consolidated statement of change in equity and statement of change in equity of parent company for
the year 2022 and notes to relevant financial statements.
In our opinion, the attached financial statements of your company have been prepared in accordance with the provisions of the
Accounting Standards for Business Enterprises and give a true and fair view of the consolidated financial position and financial
position of parent company of ROBAM as of December 31, 2022 and of the financial performance and cash flows for the year
2022 in all significant terms.
II. Basis for audit opinion
We conducted our audit in accordance with the Standards on Auditing for Certified Public Accountants. The “responsibility of
certified public accountants for audit of financial statements” in the audit report further expounds our responsibilities under such
standards. We were independent of ROBAM and fulfill other responsibilities in terms of professional ethics according to the code
of professional ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
III. Key audit items
The key audit items are those that we consider most important to audit the financial statements of the current period in our
professional judgment. The response to these items is based on the audit of the financial statements as a whole and the formation
of an audit opinion. We do not comment on these items separately. We have identified the following items as key audit items to be
communicated in the audit report.
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Hangzhou ROBAM Appliances Co., Ltd.
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1. Revenue recognition - agency model and engineering channels
Key audit items Response in audit
Refer to Notes to financial statements IV. 33 and For the income recognition of the agency mode and engineering channels, the
VI. 37 Operating income and operating cost. audit procedures we implemented mainly include:
In 2022, the operating income of ROBAM was 1. Understand key internal controls related to income recognition, evaluate and
RMB 1,027,150.06, representing an increase of test the effectiveness of internal control design and implementation;
RMB 123,794,500 compared with that in 2021, 2. Check the information of the shareholders and main personnel of the agency
including the agency mode income of RMB company and evaluate whether there is any correlation;
2,446,494,400 and the engineering channel income 3. Evaluate whether the income recognition method and recognition time point
of RMB 2,058,478,200, totally accounting for comply with the relevant provisions of the Accounting Standards for Business
43.86% of revenue of the period. Enterprises in combination with the contract terms and business nature and the
Since the agency mode income and engineering terms related to the time point of commodity control transfer;
channel income account for large proportion in the 4. Carry out substantive analysis procedures on operating income and gross
operating income and are one of the key margin ratio by channels, customers, products, etc., identify whether there are
performance indicators of ROBAM, there may be significant or abnormal fluctuations, and analyze the causes of fluctuations;
an inherent risk that the management may recognize 5. Check the original documents of the income recognition for major customers
the income in the wrong way to reach the specific according to the income recognition policy and settlement process and evaluate
goal or expected goal. Therefore, we regard income the authenticity and accuracy of operating income recognition;
recognition as a key audit issue. 6. Confirm current sales to main customers by sampling combined with the
confirmation of accounts receivable;
7. Carry out the cut-off test procedure of income, check the supporting
documents such as outbound delivery order and acceptance certificate for the
operating income recognized before and after the balance sheet date, and
evaluate whether the operating income is recognized within an appropriate
period;
8. Check whether the information relating to operating income has been
properly presented and disclosed in the financial statements.
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Hangzhou ROBAM Appliances Co., Ltd.
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2. Impairment of notes receivable and accounts receivable
Key audit items Response in audit
Refer to Notes to financial statements IV. 11.12, VI. For the impairment of notes receivable and accounts receivable, the audit
3 Notes receivable and VI. 4 Accounts receivable. procedures we implemented mainly include:
As of December 31, 2022, the balance of notes 1. Understand key internal controls for notes receivable and accounts
receivable of ROBAM was RMB 902,437,900 and receivable of ROBAM, evaluate and test the effectiveness of internal control
the provision for bad debt was RMB 20,664,600; design and implementation;
the balance of accounts receivable was RMB 2. Check the contracts of main customers according to the income status,
2,792,948,900, and the provision for bad debt was understand the settlement terms, pay attention to the customers who have not
RMB 1,103,342,100. made payment after the settlement credit period or acceptance period, and
Due to the large amount of notes receivable and analyze the reasons. Judge the solvency of customers by understanding their
accounts receivable at the end of the period, the operating and financial conditions;
management needs to use material accounting 3. Analyze the implementation of the new financial instrument standards for
estimate and judgment when determining the receivables, including the rationality of determination and estimation of the
recoverable amount, so we regard the impairment of expected credit loss model for the receivables of ROBAM, calculate the
notes receivable and accounts receivable as the key expected credit loss amount on the balance sheet date, and analyze whether the
audit items. credit loss is fully accounted for in the receivables period;
4. Verify the rationality of expected credit loss of receivables combined with
the receivables confirmation procedure and post-dated collection by analyzing
the aging of accounts receivable;
5. Carry out supervision procedures, check the balance of notes receivable at
the end of the period, and check the current endorsement and discount status to
check whether they conform to the derecognition conditions;
6. Check the post-dated acceptance status of notes receivable from main
customers, record the amount of notes receivable collected after the post-dated
period, and check the supporting documents, such as bank receipt and other
vouchers, for those with large amounts of notes receivable;
7. Check whether the information relating to notes receivable and accounts
receivable has been properly presented and disclosed in the financial
statements.
IV. Other information
The management of ROBAM (hereinafter referred to as the management) is responsible for other information, including the
information covered in ROBAM annual report for 2022, but excluding the financial statements and our audit report.
Our audit opinion on the financial statements does not cover other information and we does not express any form of verification
conclusions on other information.
Combined with our audit of the financial statements, it’s our responsibility to read other information. In this process, we shall
consider whether material inconsistency or material misstatement of other information with the financial statements or the
situation understood by us in the audit process.
Based on the work that has been executed by us, we should report the fact of material misstatement confirmed in other information.
We have nothing to report in this regard.
V. Responsibility of management and government for the financial statements
The management is responsible for preparing the financial statements in accordance with the provisions of the Accounting
Standards for Business Enterprises and giving a true and fair view; designing, implementing and maintaining necessary internal
control, so that the financial statements are free from material misstatement, whether due to fraud or error.
When preparing the financial statements, the management is responsible for evaluating the going-concern ability of ROBAM,
disclosing the matters related to the going-concern (if applicable) and using the going-concern assumption, unless the management
plans to liquidate ROBAM or stop operation or no other realistic options.
The government is responsible for supervising the financial reporting process of ROBAM.
VI. Responsibility of certified public accountants for audit of financial statements
Our goal is to obtain reasonable guarantee on inexistence of the material misstatement of the financial statements whether due to
fraud or error and to issue an audit report including audit opinion. Reasonable guarantee is high level guarantee, but it cannot
guarantee that a material misstatement of the audit executed according to the auditing standards will always be found.
Misstatement may be caused by fraud or error. If the reasonable expected misstatements may affect the economic decision made
by the financial statement user according to the financial statements, whether individually or collectively, the misstatement is
generally believed material.
We made professional judgment and maintained professional skepticism in the audit process according to the auditing standards.
53
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
We also performed the following:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
implement audit procedures to address these risks, and obtain sufficient and appropriate audit evidence as the basis for audit
opinion. Since the fraud may involve collusion, forge, intentional omission, false statement or above internal control, the risk of
material misstatement caused by fraud is higher than that caused by error.
(2) Understand internal control related to the audit in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and relevant
disclosure.
(4) Draw a conclusion about the appropriateness of the going-concern assumption used by the management. Meanwhile, draw a
conclusion about the major uncertainty of the matters or circumstances possibly resulting in major concerns about the going-
concern ability of ROBAM according to the audit evidence obtained. If we draw a conclusion that major uncertainty exists, the
auditing standards require us to request the statement user to notice relevant disclosure in the financial statements in the audit
report; in case of insufficient disclosure, we should issue a modified audit report. Our conclusion is made on the basis of the
information available as of the audit report date. However, the future matters or circumstances may result in going concern failure
of ROBAM.
(5) Evaluate the overall presentation, structure and content of the financial statements and evaluate whether the financial
statements give a true and fair view of relevant transactions and matters.
(6) Obtain adequate and appropriate audit evidence for the financial information of ROBAM entity or business activities to
express an opinion on the financial statements. We are responsible for guiding, supervising and implementing the group audit and
take full responsibility for the audit opinions.
We communicate with the governance on the planned audit scope, time arrangement and major audit findings, including the
internal control defects identified by us in the audit and worthing attention.
We also provide the governance with a statement of compliance with the ethical requirements relating to our independence and
communicate with the governance with respect to all relations and other matters that may reasonably be considered to affect our
independence and the relevant precautions (if applicable).
From the items communicated with the governance, we determine which items are most important to the audit of current financial
statements and thus constitute the key audit items. We describe these items in our audit report, unless the disclosure of these
matters is prohibited by law or regulation, or, in rare circumstances, we determine that we should not communicate the items in
our audit report if it is reasonably expected that the negative consequences of communicating an item outweigh the benefits in the
public interest.
II. Financial statements
Unit of statements in financial notes: CNY
1. Consolidated Balance Sheet
Unit: Hangzhou ROBAM Appliances Co., Ltd.
December 31, 2022
Unit: yuan
Item December 31, 2022 January 01, 2022
Current assets:
Monetary capital 5,292,762,670.94 3,802,201,346.55
Deposit reservation for balance
Lending funds
Trading financial assets 2,511,844,508.00 2,872,312,500.00
Derivative financial assets
Notes receivable 881,773,341.71 1,330,193,894.82
Accounts receivable 1,689,606,828.94 1,597,692,860.90
Receivables financing
Advances to suppliers 177,500,353.37 131,162,030.95
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Premiums receivables
Reinsurance accounts receivable
Provision of cession receivable
Other receivables 80,429,057.84 73,487,381.46
Including: Interest receivable
Dividends receivable
Redemptory monetary capital for sale
Inventory 1,610,110,798.10 1,772,231,632.25
Contract assets
Assets held for sales
Non-current assets due within a year
Other current assets 334,348.76 4,110,429.16
Total current assets 12,244,361,907.66 11,583,392,076.09
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 8,718,505.62 5,405,129.91
Other equity instrument investments 2,116,023.22 2,116,023.22
Other non-current financial assets
Investment properties 55,887,198.54 11,085,896.07
Fixed assets 1,622,235,227.74 1,179,306,020.01
Construction in progress 406,258,146.69 454,643,364.82
Productive biological assets
Oil and gas assets
Right-of-use assets 22,220,144.13 29,902,954.22
Intangible assets 221,356,558.38 229,391,803.26
Development expenditure
Goodwill 60,573,832.56 80,589,565.84
Long-term unamortized expenses 5,852,899.90 5,385,436.20
Deferred income tax assets 340,811,345.96 286,348,037.04
Other non-current assets 49,433,497.13 38,468,874.44
Total non-current assets 2,795,463,379.87 2,322,643,105.03
Total assets 15,039,825,287.53 13,906,035,181.12
Current liabilities:
Short-term borrowing 51,723,429.99 29,616,655.41
Borrowings from central bank
Borrowing funds
Trading financial liabilities
Derivative financial liabilities
Notes payable 872,550,306.86 962,665,463.99
Accounts payable 2,418,755,167.31 2,181,900,261.00
Advance from customers
Contract liabilities 959,915,567.03 1,026,782,402.35
Financial assets sold for repurchase
Deposits from customers and interbank
Acting trading securities
Acting underwriting securities
Payroll payable 153,942,329.88 165,177,425.08
Tax payable 152,351,620.58 212,202,393.54
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Other payables 281,878,208.25 267,781,215.06
Including: Interest payable
Dividends payable
Fees and commissions payable
Dividend payable for reinsurance
Liabilities held for sales
Non-current liabilities due within a year 5,720,175.21 5,387,591.43
Other current liabilities 120,126,501.73 124,284,081.56
Total current liabilities 5,016,963,306.84 4,975,797,489.42
Non-current liabilities:
Reserve fund for insurance contracts
Long-term borrowing
Bonds payable
Including: preferred stock
Perpetual bond
Lease liabilities 18,588,966.67 26,177,034.29
Long-term payable
Long-term payroll payable
Estimated liabilities
Deferred income 123,912,110.43 131,747,378.42
Deferred income tax liabilities 22,107,934.58 6,254,762.76
Other non-current liabilities
Total non-current liabilities 164,609,011.68 164,179,175.47
Total liabilities 5,181,572,318.52 5,139,976,664.89
Owner's equity:
Capital stock 949,024,050.00 949,024,050.00
Other equity instruments
Including: preferred stock
Perpetual bond
Capital reserve 409,997,665.58 404,918,098.15
Minus: treasury stock 199,995,742.59 199,995,742.59
Other comprehensive income -100,157,634.16 -100,157,634.16
Special reserve
Surplus reserves 474,516,412.50 474,516,412.50
General risk preparation
Undistributed profit 8,199,079,015.58 7,098,721,555.37
Total owners' equities attributable to the
9,732,463,766.91 8,627,026,739.27
owners of parent company
Minority equity 125,789,202.10 139,031,776.96
Total owners' equities 9,858,252,969.01 8,766,058,516.23
Total liabilities and owners' equities 15,039,825,287.53 13,906,035,181.12
Legal representative: Ren Jianhua Head of accounting work: Zhang Guofu Head of accounting body:
Zhang Guofu
2. Balance sheet of parent company
Unit: yuan
Item December 31, 2022 January 01, 2022
Current assets:
Monetary capital 5,054,810,287.04 3,554,239,202.02
Trading financial assets 2,500,000,000.00 2,800,000,000.00
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Hangzhou ROBAM Appliances Co., Ltd.
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Derivative financial assets
Notes receivable 879,223,549.33 1,327,893,894.82
Accounts receivable 1,620,543,528.97 1,496,691,827.59
Receivables financing
Advances to suppliers 167,724,048.79 108,926,615.26
Other receivables 83,900,676.77 66,149,239.78
Including: Interest receivable
Dividends receivable 10,200,000.00
Inventory 1,499,780,747.70 1,674,764,364.28
Contract assets
Assets held for sales
Non-current assets due within a year
Other current assets
Total current assets 11,805,982,838.60 11,028,665,143.75
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 251,769,849.44 242,037,500.08
Other equity instrument investments 2,116,023.22 2,116,023.22
Other non-current financial assets
Investment properties 4,426,211.90 11,361,192.77
Fixed assets 1,396,227,874.68 1,114,958,987.32
Construction in progress 406,258,146.69 280,105,490.57
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 149,864,689.61 152,123,403.04
Development expenditure
Goodwill
Long-term unamortized expenses 1,486,622.90 1,653,433.47
Deferred income tax assets 323,776,879.25 285,017,337.53
Other non-current assets 49,433,497.13 36,602,077.16
Total non-current assets 2,585,359,794.82 2,125,975,445.16
Total assets 14,391,342,633.42 13,154,640,588.91
Current liabilities:
Short-term borrowing 573,429.99 29,616,655.41
Trading financial liabilities
Derivative financial liabilities
Notes payable 810,820,603.91 869,702,988.97
Accounts payable 2,282,866,624.07 2,051,194,342.69
Advance from customers
Contract liabilities 890,640,445.28 923,802,307.69
Payroll payable 121,417,848.03 129,893,906.19
Tax payable 130,548,651.54 196,058,797.24
Other payables 254,460,632.28 240,983,242.45
Including: Interest payable
Dividends payable
Liabilities held for sales
Non-current liabilities due within a year
Other current liabilities 109,801,716.95 110,927,917.94
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Hangzhou ROBAM Appliances Co., Ltd.
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Total current liabilities 4,601,129,952.05 4,552,180,158.58
Non-current liabilities:
Long-term borrowing
Bonds payable
Including: preferred stock
Perpetual bond
Lease liabilities
Long-term payable
Long-term payroll payable
Estimated liabilities
Deferred income 86,923,728.32 102,890,393.42
Deferred income tax liabilities 13,804,141.19
Other non-current liabilities
Total non-current liabilities 100,727,869.51 102,890,393.42
Total liabilities 4,701,857,821.56 4,655,070,552.00
Owner's equity:
Capital stock 949,024,050.00 949,024,050.00
Other equity instruments
Including: preferred stock
Perpetual bond
Capital reserve 409,608,575.62 404,873,115.14
Minus: treasury stock 199,995,742.59 199,995,742.59
Other comprehensive income -100,157,634.16 -100,157,634.16
Special reserve
Surplus reserves 474,516,412.50 474,516,412.50
Undistributed profit 8,156,489,150.49 6,971,309,836.02
Total owners' equities 9,689,484,811.86 8,499,570,036.91
Total liabilities and owners' equities 14,391,342,633.42 13,154,640,588.91
3. Consolidated Statement of Income
Unit: yuan
Item Year 2022 Year 2021
I. Total operating income 10,271,500,571.04 10,147,706,035.35
Including: Operating income 10,271,500,571.04 10,147,706,035.35
Interest revenue
Premium earned
Fee and commission income
II. Total operating costs 8,494,920,336.60 7,960,178,225.56
Including: Operating costs 5,137,368,758.15 4,835,053,404.37
Interest expenditure
Fee and commission expense
Surrender value
Net payments for insurance claims
Net reserve fund extracted for insurance
contracts
Bond insurance expense
Reinsurance costs
Taxes and surcharges 78,564,584.05 80,591,250.17
Selling expenses 2,613,626,073.89 2,454,418,039.92
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Hangzhou ROBAM Appliances Co., Ltd.
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Management costs 430,968,403.74 363,762,372.63
Research and development expenses 391,614,805.38 366,026,666.34
Financial expenses -157,222,288.61 -139,673,507.87
Including: interest expenditure 10,249,057.76 9,638,311.28
Interest revenue 162,232,029.99 152,136,833.79
Plus: other incomes 148,475,570.29 77,424,555.44
Income from investment (loss expressed with
98,961,069.15 90,502,532.06
“-”)
Including: Income from investment of
-826,624.29 -47,639.68
joint venture and cooperative enterprise
Income from derecognition of
financial assets measured at amortized cost
Exchange gain (loss expressed with “-”)
Net exposure hedging gain (loss expressed
with “-”)
Income from fair value changes (loss
expressed with “-”)
Credit impairment losses (loss expressed with
-224,114,601.65 -765,499,437.07
“-”)
Assets impairment losses (loss expressed with
-24,998,305.92 -52,632,725.80
“-”)
Income from disposal of assets (loss
143,437.75 -2,122,173.87
expressed with “-”)
III. Operating profits (loss expressed with “-”) 1,775,047,404.06 1,535,200,560.55
Plus: Non-operating income 3,268,479.05 1,779,825.86
Minus: non-operating expenditure 5,343,278.82 4,211,465.75
IV. Total profits (total loss expressed with “-”) 1,772,972,604.29 1,532,768,920.66
Minus: Income tax expenses 214,666,153.99 183,977,497.96
V. Net profits (net loss expressed with “-”) 1,558,306,450.30 1,348,791,422.70
(I) Classified by business continuity
1. Net profits from going concern (net loss
1,558,306,450.30 1,348,791,422.70
expressed with “-”)
2. Net profits from discontinuing operation
(net loss expressed with “-”)
(II) Classified by ownership
1. Net profits attributable to shareholders of
1,572,404,918.21 1,331,712,059.03
parent company
2. * Minority interest income -14,098,467.91 17,079,363.67
VI. Net amount of other comprehensive income after
-85,000,000.00
tax
Net amount of other comprehensive income after
-85,000,000.00
tax attributed to parent company owners
(I) Other comprehensive income that can't be
-85,000,000.00
reclassified into profit and loss
1. Remeasure the variation of net
indebtedness or net asset of defined
benefit plan
2. Other comprehensive income that can't
be reclassified into profit and loss in the
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Hangzhou ROBAM Appliances Co., Ltd.
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invested enterprise under equity method
3. Fair value change of other equity
-85,000,000.00
instrument investments
4. Fair value change of enterprise credit
risks
5. Other
(II) Other comprehensive income that will be
reclassified into profit and loss
1. Other comprehensive income that will be
reclassified into profit and loss in the
invested enterprise under equity method
2. Fair value change of other debt
investments
3. Amount of financial assets reclassified
into other comprehensive income
4. Provision for credit impairment of other
debt investments
5. Cash flow hedging reserve
6. Balance arising from the translation of
foreign currency financial statements
7. Other
Net amount of other comprehensive income after
tax attributed to minority shareholders
VII. Total comprehensive income 1,558,306,450.30 1,263,791,422.70
Total comprehensive income attributed to parent
1,572,404,918.21 1,246,712,059.03
company owners
Total comprehensive income belonging to
-14,098,467.91 17,079,363.67
minority shareholders
VIII. Earnings per share
(I) Basic earnings per share 1.67 1.41
(II) Diluted earnings per share 1.67 1.41
In case of business combination involving enterprises under common control in this period, the net profits achieved by the
combined enterprise before combination were RMB and achieved by the combined enterprise in previous period were RMB .
Legal representative: Ren Jianhua Head of accounting work: Zhang Guofu Head of accounting body: Zhang Guofu
4. Income statement of parent company
Unit: yuan
Item Year 2022 Year 2021
I. Operating income 9,524,550,185.59 9,284,231,145.49
Minus: Operating costs 4,901,492,041.67 4,557,542,158.07
Taxes and surcharges 69,828,676.76 73,299,717.92
Selling expenses 2,218,801,283.55 2,044,292,085.93
Management costs 304,689,831.15 261,914,391.23
Research and development
376,891,023.54 349,772,824.04
expenses
Financial expenses -156,113,652.92 -137,078,786.08
Including: interest expenditure 8,322,009.99 7,860,839.16
Interest revenue 158,191,509.22 146,898,250.58
Plus: other incomes 131,366,920.67 71,947,430.91
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Income from investment (loss
107,771,898.15 109,604,014.60
expressed with “-”)
Including: Income from
investment of joint venture and cooperative -514,676.57 -47,639.68
enterprise
Income from
derecognition of financial assets measured
at amortized cost (loss expressed with “-”)
Net exposure hedging gain (loss
expressed with “-”)
Income from fair value changes
(loss expressed with “-”)
Credit impairment losses (loss
-165,304,249.28 -765,307,835.18
expressed with “-”)
Assets impairment losses (loss
-4,982,572.64 -52,632,725.80
expressed with “-”)
Income from disposal of assets
-157,339.21 -2,281,424.63
(loss expressed with “-”)
II. Operating profit (loss to be filled out
1,877,655,639.53 1,495,818,214.28
with the minus sign “-”)
Plus: Non-operating income 3,023,087.48 1,323,613.73
Minus: non-operating expenditure 4,201,871.53 2,551,970.49
III. Total profit (total loss to be filled out
1,876,476,855.48 1,494,589,857.52
with the minus sign “-”)
Minus: Income tax expenses 219,250,083.01 170,448,503.19
IV. Net profit (net loss to be filled out with
1,657,226,772.47 1,324,141,354.33
the minus sign “-”)
(I) Net profits from going concern (net
1,657,226,772.47 1,324,141,354.33
loss expressed with “-”)
(II) Net profits from discontinuing
operation (net loss expressed with “-”)
V. Net amount of other comprehensive
-85,000,000.00
income after tax
(I) Other comprehensive income that
-85,000,000.00
can't be reclassified into profit and loss
1. Remeasure the variation of net
indebtedness or net asset of
defined benefit plan
2. Other comprehensive income
that can't be reclassified into
profit and loss in the invested
enterprise under equity method
3. Fair value change of other
-85,000,000.00
equity instrument investments
4. Fair value change of enterprise
credit risks
5. Other
(II) Other comprehensive income that
will be reclassified into profit and loss
1. Other comprehensive income
that will be reclassified into
profit and loss in the invested
enterprise under equity method
2. Fair value change of other debt
investments
3. Amount of financial assets
reclassified into other
comprehensive income
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4. Provision for credit impairment
of other debt investments
5. Cash flow hedging reserve
6. Balance arising from the
translation of foreign currency
financial statements
7. Other
VI. Total comprehensive income 1,657,226,772.47 1,239,141,354.33
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated Statement of Cash Flow
Unit: yuan
Item Year 2022 Year 2021
I. Cash flow from financing activities:
Cash from selling commodities or
11,217,554,991.80 10,288,453,339.62
offering labor
Net increase of customer deposit and
deposit from other banks
Net increase of borrowings from
central bank
Net increase of borrowing funds from
other financial institutions
Cash from obtaining original
insurance contract premium
Cash received from insurance
premium of original insurance contract
Net increase of deposit and investment
of insured
Cash from interest, handling charges
and commissions
Net increase of borrowing funds
Net increase of repurchase of business
funds
Net cash from acting trading securities
Refund of tax and levies 52,622,361.53 10,979,888.36
Other cash received related to
302,574,783.30 271,671,026.74
operating activities
Subtotal cash inflows from operating
11,572,752,136.63 10,571,104,254.72
activities
Cash paid for selling commodities or
5,130,311,485.16 5,176,102,168.67
offering labor
Net increase of customer loans and
advances
Net increase of amount due from
central bank and interbank
Cash paid for original insurance
contract claims payment
Net increase of lending funds
Cash paid for interest, handling
charges and commissions
Cash paid for policy dividend
Cash paid to and for employees 1,014,928,118.78 916,057,162.36
Taxes and fees paid 924,067,905.31 931,911,190.31
Other cash paid related to operating
2,558,658,323.36 2,181,656,514.05
activities
Subtotal cash outflows from operating
9,627,965,832.61 9,205,727,035.39
activities
Net cash flow from operating activities 1,944,786,304.02 1,365,377,219.33
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II. Cash flow from investment activities:
Cash from investment withdrawal 2,935,774,392.00 2,680,500,000.00
Cash from investment income 101,112,262.32 91,763,782.62
Net cash from disposal of fixed assets,
intangible assets and other long-term 1,144,292.90 2,730,070.90
assets
Net cash received from the disposal of
subsidiaries and other business entities
Other cash received related to
investment activities
Subtotal cash inflows from investment
3,038,030,947.22 2,774,993,853.52
activities
Cash paid for the purchase and
construction of fixed assets, intangible 502,585,886.40 432,870,305.12
assets and other long term assets
Cash paid for investment 2,579,500,000.00 3,202,812,500.00
Net cash received from reinsurance
business
Net cash paid for obtaining
subsidiaries and other business units
Other cash paid related to investment
activities
Subtotal cash outflows from investment
3,082,085,886.40 3,635,682,805.12
activities
Net cash flow from investment activities -44,054,939.18 -860,688,951.60
III. Cash flow from financing activities:
Receipts from equity securities 11,000,000.00 850,000.00
Including: Cash received from
subsidies’ absorption of minority 11,000,000.00 850,000.00
shareholders’ investment
Cash received from borrowings 54,650,000.00
Other cash received related to
1,012,732.06 30,694,588.74
financing activities
Subtotal cash inflows from financing
66,662,732.06 31,544,588.74
activities
Cash repayments of amounts
3,500,000.00
borrowed
Cash paid for distribution of dividends
482,408,349.01 495,485,158.00
or profits and for interest expenses
Including: Dividends and profits paid
9,800,000.00 22,050,000.00
by subsidiaries to minority shareholders
Other cash paid related to financing
10,759,837.34 206,042,180.97
activities
Subtotal cash outflows from financing
496,668,186.35 701,527,338.97
activities
Net cash flow from financing activities -430,005,454.29 -669,982,750.23
IV. Impact of exchange rate movements
5,699,610.84 -813,210.71
on cash and cash equivalents
V. Net increase of cash and cash
1,476,425,521.39 -166,107,693.21
equivalents
Plus: Balance of cash and cash
3,719,988,820.35 3,886,096,513.56
equivalents at the beginning of the period
VI. Balance of cash and cash equivalents
5,196,414,341.74 3,719,988,820.35
at the beginning of the period
6. Cash flow statement of parent company
Unit: yuan
Item Year 2022 Year 2021
I. Cash flow from financing activities:
Cash from selling commodities or
10,511,492,286.98 9,400,393,477.64
offering labor
Refund of tax and levies 45,959,892.74 10,979,888.36
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Other cash received related to
244,654,467.09 230,569,238.02
operating activities
Subtotal cash inflows from operating
10,802,106,646.81 9,641,942,604.02
activities
Cash paid for selling commodities or
4,928,332,766.89 4,977,299,230.52
offering labor
Cash paid to and for employees 741,560,434.55 674,644,809.06
Taxes and fees paid 851,796,665.44 863,049,900.49
Other cash paid related to operating
2,277,803,150.69 1,854,214,173.41
activities
Subtotal cash outflows from operating
8,799,493,017.57 8,369,208,113.48
activities
Net cash flow from operating activities 2,002,613,629.24 1,272,734,490.54
II. Cash flow from investment activities:
Cash from investment withdrawal 2,800,000,000.00 2,260,000,000.00
Cash from investment income 99,306,676.81 110,584,544.21
Net cash from disposal of fixed assets,
intangible assets and other long-term 620,992.90 2,295,850.90
assets
Net cash received from the disposal of
subsidiaries and other business entities
Other cash received related to
investment activities
Subtotal cash inflows from investment
2,899,927,669.71 2,372,880,395.11
activities
Cash paid for the purchase and
construction of fixed assets, intangible 448,805,021.56 312,910,594.46
assets and other long term assets
Cash paid for investment 2,510,000,000.00 2,812,000,000.00
Net cash paid for obtaining
subsidiaries and other business units
Other cash paid related to investment
activities
Subtotal cash outflows from investment
2,958,805,021.56 3,124,910,594.46
activities
Net cash flow from investment activities -58,877,351.85 -752,030,199.35
III. Cash flow from financing activities:
Receipts from equity securities
Cash received from borrowings
Other cash received related to
1,012,732.06 30,694,588.74
financing activities
Subtotal cash inflows from financing
1,012,732.06 30,694,588.74
activities
Cash repayments of amounts
borrowed
Cash paid for distribution of dividends
472,047,458.00 473,435,158.00
or profits and for interest expenses
Other cash paid related to financing
4,030,091.57 199,995,742.59
activities
Subtotal cash outflows from financing
476,077,549.57 673,430,900.59
activities
Net cash flow from financing activities -475,064,817.51 -642,736,311.85
IV. Impact of exchange rate movements
5,699,610.84 -812,928.86
on cash and cash equivalents
V. Net increase of cash and cash
1,474,371,070.72 -122,844,949.52
equivalents
Plus: Balance of cash and cash
3,504,333,910.43 3,627,178,859.95
equivalents at the beginning of the period
VI. Balance of cash and cash equivalents
4,978,704,981.15 3,504,333,910.43
at the beginning of the period
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7. Consolidated statement of change in equity
Current amount
Unit: yuan
Year 2022
Owners' equities attributable to the owners of parent company
Other equity
Item instruments Other Minority Total owners'
Minus: Special Surplus General risk Undistributed Oth equity equities
Capital stock Prefer Perpet Capital reserve comprehensive Subtotal
Oth Treasury stock reserve reserves preparation profit er
red ual income
er
stock bond
-
I. Ending balance in previous year 949,024,050.00 404,918,098.15 199,995,742.59 474,516,412.50 7,098,721,555.37 8,627,026,739.27 139,031,776.96 8,766,058,516.23
100,157,634.16
Plus: Changes in accounting policies
Prior period error correction
Business combination under
common control
Other
-
II. Beginning balance in current year 949,024,050.00 404,918,098.15 199,995,742.59 474,516,412.50 7,098,721,555.37 8,627,026,739.27 139,031,776.96 8,766,058,516.23
100,157,634.16
III. Increase/decrease in the current period
5,079,567.43 1,100,357,460.21 1,105,437,027.64 -13,242,574.86 1,092,194,452.78
(less to be filled out with the minus sign “-)
(I) Total comprehensive income 1,572,404,918.21 1,572,404,918.21 -14,098,467.91 1,558,306,450.30
(II) Owner’s invested and decreased capital 5,079,567.43 5,079,567.43 10,655,893.05 15,735,460.48
1. Common stock invested by the owner 344,106.95 344,106.95 10,655,893.05 11,000,000.00
2. Capital invested by other equity
instrument holders
3. Amount of share-based payment
4,735,460.48 4,735,460.48 4,735,460.48
included in the owner’s equity
4. Other
(III) Profit distribution -472,047,458.00 -472,047,458.00 -9,800,000.00 -481,847,458.00
1. Withdrawal of surplus reserves
2. Withdrawal of general risk preparation
3. Distribution of owners (or shareholders) -472,047,458.00 -472,047,458.00 -9,800,000.00 -481,847,458.00
4. Other
(IV) Internal transfer of owner’s equity
1. Capital surplus transfer to paid-in capital
(or capital stock)
2. Earned surplus transfer to paid-in capital
(or capital stock)
3. Earned surplus covering the deficit
4. Carryforward retained earnings in
variation of defined benefit plan
5. Carryforward retained earnings of other
comprehensive income
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6. Other
(V) Special reserve
1. Draw in this current
2. Use in this current
(VI) Other
-
IV. Balance at the end of current period 949,024,050.00 409,997,665.58 199,995,742.59 474,516,412.50 8,199,079,015.58 9,732,463,766.91 125,789,202.10 9,858,252,969.01
100,157,634.16
Last term amount
Unit: yuan
Year 2021
Owners' equities attributable to the owners of parent company
Other equity
Item instruments Other General Total owners'
Minus: treasury Special Oth Minority equity
Capital stock Prefer Perpe Capital reserve comprehensive Surplus reserves risk Undistributed profit Subtotal equities
Oth stock reserve er
red tual income preparation
er
stock bond
I. Ending balance in previous year 949,024,050.00 401,799,332.67 -15,157,634.16 474,516,412.50 6,240,444,654.34 8,050,626,815.35 143,152,413.29 8,193,779,228.64
Plus: Changes in accounting policies
Prior period error correction
Business combination under
common control
Other
II. Beginning balance in current year 949,024,050.00 401,799,332.67 -15,157,634.16 474,516,412.50 6,240,444,654.34 8,050,626,815.35 143,152,413.29 8,193,779,228.64
III. Increase/decrease in the current
period (less to be filled out with the 3,118,765.48 199,995,742.59 -85,000,000.00 858,276,901.03 576,399,923.92 -4,120,636.33 572,279,287.59
minus sign “-)
(I) Total comprehensive income -85,000,000.00 1,331,712,059.03 1,246,712,059.03 17,079,363.67 1,263,791,422.70
(II) Owner’s invested and decreased
3,118,765.48 199,995,742.59 -196,876,977.11 850,000.00 -196,026,977.11
capital
1. Common stock invested by the owner 850,000.00 850,000.00
2. Capital invested by other equity
instrument holders
3. Amount of share-based payment
3,118,765.48 199,995,742.59 -196,876,977.11 -196,876,977.11
included in the owner’s equity
4. Other
(III) Profit distribution -473,435,158.00 -473,435,158.00 -22,050,000.00 -495,485,158.00
1. Withdrawal of surplus reserves
2. Withdrawal of general risk preparation
3. Distribution of owners (or
-473,435,158.00 -473,435,158.00 -22,050,000.00 -495,485,158.00
shareholders)
4. Other
(IV) Internal transfer of owner’s equity
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1. Capital surplus transfer to paid-in
capital (or capital stock)
2. Earned surplus transfer to paid-in
capital (or capital stock)
3. Earned surplus covering the deficit
4. Carryforward retained earnings in
variation of defined benefit plan
5. Carryforward retained earnings of
other comprehensive income
6. Other
(V) Special reserve
1. Draw in this current
2. Use in this current
(VI) Other
IV. Balance at the end of current period 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
8. Statement of change in equity of parent company
Current amount
Unit: yuan
Year 2022
Item 其他权益工具 Minus: treasury
Other
Undistributed Total owners'
Capital stock Capital reserve comprehensive Special reserve Surplus reserves Other
Preferred stock Perpetual bond Other stock profit equities
income
I. Ending balance in
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
previous year
Plus: Changes in
accounting policies
Prior period
error correction
Other
II. Beginning balance in
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
current year
III. Increase/decrease in
the current period (less to
4,735,460.48 1,185,179,314.47 1,189,914,774.95
be filled out with the
minus sign “-)
(I) Total comprehensive
1,657,226,772.47 1,657,226,772.47
income
(II) Owner’s invested
4,735,460.48 4,735,460.48
and decreased capital
1. Common stock
invested by the owner
2. Capital invested by
other equity instrument
holders
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3. Amount of share-
based payment included 4,735,460.48 4,735,460.48
in the owner’s equity
4. Other
(III) Profit distribution -472,047,458.00 -472,047,458.00
1. Withdrawal of surplus
reserves
2. Distribution of owners
-472,047,458.00 -472,047,458.00
(or shareholders)
3. Other
(IV) Internal transfer of
owner’s equity
1. Capital surplus
transfer to paid-in capital
(or capital stock)
2. Earned surplus
transfer to paid-in capital
(or capital stock)
3. Earned surplus
covering the deficit
4. Carryforward retained
earnings in variation of
defined benefit plan
5. Carryforward retained
earnings of other
comprehensive income
6. Other
(V) Special reserve
1. Draw in this current
2. Use in this current
(VI) Other
IV. Balance at the end of
949,024,050.00 409,608,575.62 199,995,742.59 -100,157,634.16 474,516,412.50 8,156,489,150.49 9,689,484,811.86
current period
Last term amount
Unit: yuan
Year 2021
Other equity
instruments Other
Item Minus: treasury Special Oth Total owners'
Capital stock Preferr Perpet Capital reserve comprehensive Surplus reserves Undistributed profit
Oth stock reserve er equities
ed ual income
er
stock bond
I. Ending balance in previous 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
Prior period error correction
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Other
II. Beginning balance in current 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. Increase/decrease in the current period (less
3,118,765.48 199,995,742.59 -85,000,000.00 850,706,196.33 568,829,219.22
to be filled out with the minus sign “-)
(I) Total comprehensive income -85,000,000.00 1,324,141,354.33 1,239,141,354.33
(II) Owner’s invested and decreased capital 3,118,765.48 199,995,742.59 -196,876,977.11
1. Common stock invested by the owner
2. Capital invested by other equity instrument
holders
3. Amount of share-based payment included in
3,118,765.48 199,995,742.59 -196,876,977.11
the owner’s equity
4. Other
(III) Profit distribution -473,435,158.00 -473,435,158.00
1. Withdrawal of surplus reserves
2. Distribution of owners (or shareholders) -473,435,158.00 -473,435,158.00
3. Other
(IV) Internal transfer of owner’s equity
1. Capital surplus transfer to paid-in capital (or
capital stock)
2. Earned surplus transfer to paid-in capital (or
capital stock)
3. Earned surplus covering the deficit
4. Carryforward retained earnings in variation
of defined benefit plan
5. Carryforward retained earnings of other
comprehensive income
6. Other
(V) Special reserve
1. Draw in this current
2. Use in this current
(VI) Other
IV. Balance at the end of current period 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
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III. Basic status of company
Hangzhou ROBAM Appliances Co., Ltd. (ROBAM or the Company) is a limited liability company established by Hangzhou
ROBAM Home Appliances & Kitchen Sanitary Co., Ltd. by means of overall change on November 7, 2000. Approved by
China Securities Regulatory Commission (ZJXK [2010] No.1512) in 2010, the Company issued 40 million ordinary shares to
the public for the first time on November 23, 2010, with a par value of RMB 1 per share and an issue price of RMB 24.00 and
the stock code of 002508.
As of December 31, 2022, the total capital stock of the Company was 949,024,050 shares, and the registered capital was RMB
949,024,050. Unified social credit code: 91330000725252053F, legal representative: Ren Jianhua; registered address: No.592,
Linping Av., Yuhang Economic Development Zone, Yuhang District, Hangzhou City; headquarters office address: No.592,
Linping Av., Yuhang Economic Development Zone, Yuhang District, Hangzhou City.
On April 26, 2022, the Company's business scope was changed into: general items: Home appliance manufacturing; Research
and development of kitchenware, sanitary ware and daily necessities; Wholesale of kitchenware, sanitary ware and daily
necessities; Sales of daily glass products; Sales of home appliances; Home appliance installation services; Research and
development of home appliances; Sales of household supplies; Sales of daily necessities; Manufacturing of daily wooden
products; Retail of household appliances; Repair of home appliances; Sales of electric heating food processing equipment;
Wholesale of daily necessities; Technical services, development, consultation, exchange, transfer, and promotion; Sales of
non-electric home appliances; Manufacturing of non-electric home appliances; Production of gas appliances; Sales of
refrigeration and air conditioning equipment; Manufacturing of refrigeration and air conditioning equipment; Development of
basic artificial intelligence software; Manufacturing of smart home consumer equipment; Sales of artificial intelligence
hardware; Manufacturing of special equipment for business, catering and services; Sales of special equipment for business,
catering and services; Import and export of goods; Manufacturing of special equipment for environmental protection; Sales of
special equipment for environmental protection (except for items subject to approval according to law, subject to activities
shall be carried out independently with the business license according to law). License items: production of disinfection
equipment; production of electric heating food processing equipment (Items subject to approval according to the law can only
be carried out after getting the approval of relevant departments. Specific operating projects are subject to the approval results
of relevant departments).
The Company is mainly engaged in the development, production, sales and comprehensive services of kitchen appliances in
the manufacturing industry. Its main products include range hood, gas hob, sterilizer, steamer, oven, dishwasher, water
purifier, microwave, integrated stove and purification tank.
The scope of the Company's consolidated financial statements includes eight subsidiaries: Beijing ROBAM Electric
Appliance Sales Co., Ltd., Shanghai ROBAM Electric Appliance Sales Co., Ltd., Hangzhou Mingqi Electric Co., Ltd., Dize
Home AppliancesTrading (Shanghai) Co., Ltd., Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd., Hangzhou ROBAM
Fuchuang Investment Management Co., Ltd. and Zhejiang Cooking Future Technology Co., Ltd. and Hangzhou Jinhe Electric
Appliances Co., Ltd. Compared with the previous year, the consolidation scope of the Company was expanded due to the
establishment of Hangzhou Jinhe Electric Appliances Co., Ltd.
IV. Preparation basis of financial statements
1. Preparation basis
The financial statements of the Company are prepared on the basis of the going -concern and the accounting policy and
accounting estimate in “IV. Significant accounting policy and accounting estimate” according to the actual transactions and
items, the Accounting Standards for Business Enterprises promulgated by the Ministry of Finance and relevant provisions.
2. Going concern
After comprehensive consideration to the macro policy risks, market operation risks, Company’s current and long-term
profitability, solvency, financial flexibility, intention of the management to change its business policy and other factors, the
Company's management believes that the Company has no issue affecting the Comp any's going-concern ability within 12
months from the end of the report.
V. Significant accounting policy and accounting estimate
Specific accounting policy and accounting estimate:
The specific accounting policies and accounting estimates formulated by the Company according to the actual production and
operation characteristics include the operating cycle, the recognition and measurement of bad debt provision of receivables,
the measurement of issued inventory, the classification and depreciation of fixed as sets, the amortization of intangible assets,
the capitalization conditions of R&D expenses, the income recognition and measurement, etc.
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1. Statement on complying with corporate accounting standards
The Company’s financial statements comply with the requirements of the ASBE and truly and completely reflect the
Company's financial position, business performance, cash flows and other relevant information.
2. Accounting period
The fiscal year of the Company runs from January 1 to December 31 of each calenda r year.
3. Operating cycle
The Company’s normal operating cycle is one year (12 months).
4. Accounting standard money
The bookkeeping currency of the Company is RMB.
5. Accounting process method of business combination involving enterprises under and not under
common control
The assets and liabilities acquired by the Company as the combining party through business combination under common
control are measured on the combination date according to the book value of the combined party in the consolidated
statements of the final controlling party. The difference between the book value of the net assets obtained and the
consideration paid for the combination is adjusted against capital reserve; if the capital reserve is not sufficient to absor b the
difference, the retained earnings shall be adjusted.
The acquiree's identifiable assets, liabilities and contingent liabilities acquired through business combination not under
common control are measured at fair value on the acquisition date. The combined cost is the fair value of the cash or non-cash
assets paid, liabilities incurred or assumed and equity securities issued by the acquirer on the acquiring date for acquisiti on of
the control right of the acquiree, as well as the sum of direct costs for the business combination (f or the business combination
realized by steps through several times, the combined cost is the sum of the costs of each transaction). Where the combined
cost exceeds the acquirer’s interest in the fair value of the acquiree’s net identifiable assets, the di fference is recognized as
goodwill; where the combined cost is less than the acquirer’s interest in the fair value of the acquiree’s net identifiable a ssets,
the acquirer first reassesses the fair values of the acquiree's identifiable assets, liabilities a nd contingent liabilities in
combination and the fair values of non-cash assets or equity securities issued for consolidation consideration. If after
reassessment, the combined cost is still less than the acquirer's interest in the fair value of the acquir ee’s net identifiable
assets, the difference is included in the current non-operating income.
6. Methods for preparing consolidated financial statements
The Company includes all subsidiaries under its control in the consolidated financial statements.
In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company
and subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accountin g
policies and the accounting period of the Company.
All significant internal transactions, current balances and unrealized profits in the consolidation scope shall be set off wh en
the consolidated statements are prepared. The share of the owner's equity of the subsidiar ies not attributable to the parent
company and current net profits and losses, other comprehensive income, and the share of other comprehensive income
attributable to the minority interests shall be presented in the consolidated financial statements under “minority equity,
minority interest income, other comprehensive income attributed to minority shareholders and total comprehensive income
attributed to minority shareholders”.
For a subsidiary in the business combination under common control, its business performance and cash flows have been
consolidated since the beginning of the consolidation year into the consolidated financial statements. When preparing and
comparing the consolidated financial statements, the Company shall adjust the relevant items of t he previous year's financial
statements, which shall be regarded as the subject of the consolidated report that has been in existence since the beginning of
the control by the final controlling party.
For a subsidiary in the business combination not under common control, its business performance and cash flows shall be
incorporated into the consolidated financial statements from the date of the Company's acquisition of control. In preparing t he
consolidated financial statements, the financial statements of the subsidiary shall be adjusted on the basis of the fair values of
the identifiable assets, liabilities and contingent liabilities as determined on the acquiring date.
If the Company acquires the equity of the acquiree by steps through several deals and f inally forms business combination not
under common control, in the compilation of the consolidated statements, as for the equity interests held in the acquiree
before the acquiring date, they shall be re-measured according to their fair values at the acquiring date; the difference between
their fair values and book value shall be recorded into the investment gains for the period including the acquiring date. Oth er
related comprehensive gains in relation to the equity interests held in the acquiree under the equity accounting before the
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acquiring date, and the changes in owners’ equity other than net profit and loss, other comprehensive income and profit
distribution shall be carried forward into profit and loss on investments in the period of the acquiring d ate, except for other
comprehensive income from the change caused by the remeasurement of the net liabilities or net assets of the defined benefit
plan by the investee.
In consolidated financial statements, when the Company disposes of part of long -term equity investment in the subsidiary
before losing control rights, the difference between the disposal price and the long -term equity investment disposed of relative
to the share of the net assets to be enjoyed and continuously calculated from the acquiring d ate or combination date is
adjusted against capital premium or capital stock premium; if the capital reserve is not sufficient to absorb the difference, the
retained earnings shall be adjusted.
When the Company loses the control right over the investee due to disposal of part of the equity investment or other reasons,
the residual equity shall be re-measured at its fair value on the date of losing the control right in preparing the consolidated
financial statements. The difference between the sum of the consideration acquired by disposal of the equity and the fair value
of the residual equity, and the share of the net assets of the original subsidiary continuously calculated from the acquiring day
or combination date according to the original shareholding ratio, shall be included in the profit and loss on investments in the
period of lose of the control right and written down against the goodwill. Other comprehensive income related to the equity
investment of the original subsidiary is transferred into the current profit and loss on investments in the period of loss of
control right.
7. Joint venture arrangements classification and Co-operation accounting treatment
The Company’s joint venture arrangements include cooperative enterprise.
The investment in the cooperative enterprise is subject to the accounting treatment by the Company as the joint venture party
according to the Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investments.
8. Determining standards of cash and cash equivalents
The cash in the cash flow statement of the Company refers to the cash on hand and deposits readily available for payment.
The cash equivalents represent the short-term (no more than three months) and highly liquid investments that are readily
convertible into known amounts of cash and that are subject to an insignificant risk of change in value.
9. Foreign currency transaction and foreign currency statement translation
1. Foreign currency transaction
The foreign currency transaction of the Company is converted to Ren minbi at the spot rate on the transaction date. The
foreign currency project, on the balance sheet date, is converted to Renminbi at the spot rate. The resulting converted
difference is included in current profit and loss except the balance of exchange of special foreign currency loan related to
acquisition or construction of assets meeting the capitalization conditions. Non -monetary items in foreign currency measured
at fair value are converted by the spot rate on the recognition date of the fair value. Th e difference between the bookkeeping
currency amount after conversion and the original bookkeeping currency amount is recorded into the capital reserve if
belonging to non-monetary items in foreign currency of available-for-sale financial assets, or recorded into current profit and
loss if belonging to non-monetary items in foreign currency measured at fair value and with the changes included in current
profit and loss. Non-monetary items in foreign currency measured by the historical cost are still convert ed by the spot rate on
the transaction date without changing the RMB amount.
2. Conversion of financial statements denominated in foreign currencies
The assets and liabilities in the balance sheet of a foreign operation are converted at the spot rate on the b alance sheet date; all
items of owner’s equity, except the “undistributed profit”, are converted at the spot rate at the time of occurrence. The income
and expense items in the income statement of a foreign operation are converted at the approximate exchan ge rate of the spot
rate on the date of transaction. The converted difference of the foreign currency financial statements generated according to
the above translation shall be presented in other comprehensive income. For a foreign currency monetary item w hich
constitutes a net investment in overseas operations, the exchange difference resulting from the change of exchange rate shall
be presented as other comprehensive income in the compilation of the consolidated financial statements. Upon disposal of an
overseas operation, other comprehensive income related to the overseas operation shall be transferred to the current profit an d
loss according to the proportion.
The approximate exchange rate of the spot exchange rate on the date of the cash flows shall be based on for the translation of
cash flows in a foreign currency and in an overseas subsidiary. The effect of a change in exchange rate on cash shall be
separately presented in the cash flow statement.
10. Financial instruments
The Company recognizes a financial asset or financial liability when becoming a party of the financial instrument contract.
1. Financial assets
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1) Classification, recognition basis and measurement method for financial assets
According to the business model of managing financial assets and the contractual cash flow characteristics of financial assets,
the financial assets of the Company are classified into: financial assets measured at the amortized cost; financial assets
measured at fair value of which changes are recorded into other co mprehensive income; financial assets at fair value through
profit or loss (“FVTPL”).
The financial asset of the Company that meets the following conditions simultaneously is classified as financial asset
measured at the amortized cost: ① The business model for managing the financial asset is to collect contractual cash flows.
② According to the contract terms of the financial asset, the cash flow generated on a specific date is only for the payment of
the principal and the interest based on the outstanding principal amount. Such financial asset is initially measured at the fair
value and the relevant transaction costs are charged to initially recognized amount; further measurement is made at the
amortized cost. With the exception of the hedged item designated as such, the difference between the initial amount and the
amount due shall be amortized in accordance with the effective interest method, and the gains and losses arising from the
amortization, impairment, exchange gains and losses and the derecognition shall be recorded into the current profit and loss.
The financial asset of the Company that meets the following conditions simultaneously is classified as the financial asset
measured at fair value of which changes are recorded into other comprehensive in come: ① The business model for managing
such financial assets is to collect contractual cash flows and to sell the financial asset. ② According to the contract terms of
the financial asset, the cash flow generated on a specific date is only for the payment of the principal and the interest based on
the outstanding principal amount. Such financial asset is initially measured at the fair value and the relevant transaction c osts
are charged to initially recognized amount. With the exception of the hedged item designated as such, the other gains or losses
incurred from such financial asset, except for credit impairment losses or gains, exchange gains and losses and interest on t he
financial asset calculated by effective interest method, shall be included in other comprehensive income; when the financial
asset is derecognized, the accumulated gains or losses previously recorded in other comprehensive income should be
transferred from other comprehensive income in current profit and loss.
The Company recognizes interest income by effective interest method. The interest income is determined by multiplying the
book balance of a financial asset by the effective interest rate, except as follows: ① For an acquired or originated financial
asset with credit impairment, the interest income shall be determined according to the amortized cost of the financial asset and
the effective interest rate adjusted by credit from the initial recognition. ② For an acquired or originated financial asset with
credit impairment, but which has credit impairment in the subsequent period, the interest income of the financial asset shall be
determined according to the amortized cost and the effective interest rate of the financial asset in the subsequent period.
The Company designates the non-transactional equity instruments as the financial assets measured at fair value of which
changes are recorded into other comprehensive income. Such designation, once made, shall not be revoked. The non -
transactional equity instruments measured at fair value of which changes are recorded into other comprehensive income are
initially measured at the fair value and the relevant transaction costs are charged to initially recognized amount; except fo r the
dividends (excluding the part of investment cost recovery) recorded into the current profit and loss, other related gains and
losses (including exchange gains and losses) are recorded into other comprehensive income and shall not be transferred into
the current profit and loss subsequently. Upon derecognition, the accumulated gains or losses previously recorded in other
comprehensive income should be transferred from other comprehensive income to the retained earnings.
The above financial assets measured at the amortized cost and the financial assets measured at fair value of which changes are
recorded into other comprehensive income are classified as financial assets at fair value through profit or loss ( “FVTPL”).
Such financial asset is initially measured at the fair value and the relevant transaction costs are directly charged to the current
profit and loss. Gains or losses on such financial assets are charged to the current profit and loss.
The financial assets recognized by the Company through business combination not under common control or constituted by
contingent consideration are classified as financial assets at fair value through profit or loss ( “FVTPL”).
2) Recognition basis and measurement method for transfer of financial assets
The financial asset is derecognized when meeting any of the following con ditions: ① The contract right to charge the cash
flow of the financial asset is terminated; ② The financial asset has been transferred and almost all risks and remuneration of
the financial asset ownership are transferred; ③ The financial asset has been transferred and the Company does neither
transfer nor retain almost all risks and remuneration of the financial asset ownership but gives up the control over the
financial asset.
If the overall transfer of the financial asset meets the derecognition conditio ns, the difference of the book value of the
transferred financial asset from the sum of the consideration received and the derecognized amount in the cumulative amount
of the fair value changes originally included in other comprehensive income (according t o the contract terms of the financial
asset transferred, the cash flow generated on a specific date is only for the payment of the principal and the interest based on
the outstanding principal amount) is charged to the current profit and loss.
If the partial transfer of the financial asset meets the derecognition conditions, the overall book value of the transferred
financial asset, between the derecognized part and non-derecognized part, is allocated according to the respective relative fair
value. The difference of the sum of the consideration received from transfer and the derecognized amount in the cumulative
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amount of the fair value changes in the derecognized part originally included in other comprehensive income (according to the
contract terms of the financial asset transferred, the cash flow generated on a specific date is only for the payment of the
principal and the interest based on the outstanding principal amount) from the overall book value of the above -mentioned
financial asset allocated is charged to current profit and loss.
2. Financial liabilities
1) Classification, recognition basis and measurement method for financial liabilities
Financial liabilities, upon initial recognition, are divided into those measured with fair value and with the changes included in
current profit and loss and other financial liabilities.
Financial liabilities measured with fair value and with the changes included in current profit and loss, including the tradin g
financial liabilities and the financial liabilities measured with fair value and with the changes included in current profit and
loss upon initial recognition. The financial liability is subsequently measured with the fair value. The gain or loss formed
from the changes in the fair value as well as the dividends and interest expenditure related to the financial liability is charged
to current profit and loss.
The other financial liabilities are subsequently measured with the amortized cost by means of effective interest method.
Except for the following items, the financial assets are classified as the financial liabilities measured at amortized cost: ①
Financial liabilities measured with fair value and with the changes included in current profit and loss, including the tradin g
financial liabilities (including derivative instruments belonging to financial liabilities) and the financial liabilities mea sured
with fair value and with the changes included in current profit and loss. ② Financial liabilities formed by the transfer of
financial assets not conforming to the derecognition conditions or by continuing to involve in the transferred financial asse ts.
③ Financial guarantee contracts that do not fall under the above ① or ② circumstances, and loan commitments to lend at a
below-market rate that do not fall under the above ① circumstance.
The financial liabilities recognized by the Company as the acquirer through business combination not under common control
or formed by contingent consideration are classified as financial liabilities at fair value through profit or loss for accoun ting.
2) Derecognition of financial liabilities
The Company derecognizes a financial liability (or part of it) only when the underlying present obligation (or part of it) is
discharged. An agreement between the Company and a creditor to replace the existing financial liability with a new one with
substantially different terms is accounted for as the derecognition of the existing financial liability and the recognition of a
new financial liability. When the Company makes material alteration to the contract terms of the existing financial liability
(or part of it), it derecognizes the existing financial liability (or part of it) and recognizes a new one according to the altered
terms. The difference between the book value of the derecognized part and the consideration paid is charged to current profit
and loss.
3) Fair value determination method of financial assets and financial liabilities
The fair value of the financial assets and financial liabilities is measured by the Company at the prices in the principal ma rket.
If no principal market exists, the fair value is measured at the most favorable market price by valuation techniques that are
applicable at the time and are supported by sufficient data and other information available. The input value used in the fair
value measurement is divided into three levels. That is, the input value of th e first level is the unadjusted quotation of the
same assets or liabilities on the active market that can be obtained on the measurement day. The input value of the second
level is the direct or indirect observable input value of related assets or liabilit ies other than the input value of the first level.
The input value of the third level is the non-observable input value of the relevant assets or liabilities. The Company prefers
the input value of the first level and finally the input value of the third l evel. The level of the measurement results of the fair
value is determined by the lowest level of the input value that is of great significance to the measurement of fair value as a
whole.
The Company measures the equity instrument investment at fair value. However, in limited cases, if the recent information
used to determine the fair value is insufficient, or the possible estimated amount of the fair value is widely distributed, a nd the
cost represents the best estimate of the fair value within the range, the cost may represent the appropriate estimate of the fair
value within the range.
3. Offset of financial assets and financial liabilities
The financial assets and financial liabilities of the Company are listed respectively in the balance sheet and no mutually offset.
However, when the following conditions are met at the same time, they are listed as net amount after offset in the balance
sheet: (1) the Company has the legal right to offset the recognized amount and may execute the legal right currently ; (2) the
Company plans to settle with net amount or realize the financial asset and pay off the financial liability simultaneously.
4. Distinction between financial liabilities and equity instruments and relevant treatment method
The Company distinguishes between a financial liability and an equity instrument in accordance with the following
principles :(1) If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or other
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financial assets, the contractual obligation is defined as a financial liability. Although some financial instruments do not
explicitly contain terms and conditions for the obligation to deliver cash or other financial assets, they may indirectly for m
contractual obligations through other terms and conditions. (2) If a financial instrument is to be settled by or with the
Company's equity instrument, it is necessary to consider whether the Company's equity instrument used to settle the financial
instrument is to be used as a substitute for cash or other financial assets or to give the holder of the instrument a residual
equity in the assets of the issuer after deducting all liabilities. In the former case, the financial instrument is a financi al
liability of the issuer; in the latter case, the instrument is the issuer’s equity instrument. If it is stipulated in a financial
instrument contract that the Company shall or may settle the financial instrument by its own equity instruments in some cases ,
in which, the amount of the contractual rights or contractual obligations is equal to the number of its equity instruments
available or to be delivered multiplied by its fair value at the time of settlement, the contract is classified as a financia l
liability, whether the amount of the contractual rights or obligations is fixed or whether it is based in whole or in part on
changes in variables (such as the interest rate, the price of a commodity or the price of a financial instrument) other than the
market price of the Company's equity instruments.
In classifying a financial instrument (or its components) in the consolidated statements, the Company takes into account all
terms and conditions agreed between the members of the Company and the financial instrument holder. The instrument shall
be classified as a financial liability if the Company as a whole is obligated to deliver cash, other financial assets, or settle
accounts in other ways that cause the instrument to become a financial liability as a result of the instrument.
The interest, dividends, profits or losses related to a financial instrument or its components classified as a financial liability,
as well as gains or losses from redemption or refinancing, shall be recorded into the Company's current profit and loss.
The issuance (including refinancing), repurchase, sales or cancellation of financial instrument or its components classified as
equity instruments is handled as the equity changes, and the fair value change of the equity instruments is not recognized.
5. Impairment of financial instruments
The Company withdraws the provision for impairment for the financial assets measured at the amortized cost, financial assets
measured at fair value of which changes are recorded into other comprehensive income, and financial guarantee contracts
based on the expected credit loss, and recognizes the credit impairment loss.
The expected credit loss refers to the weighted average credit loss of financial instruments weighted by the risk of default.
Credit loss refers to the difference between all contract cash flows disco unted by the Company at the original effective
interest rate and receivable according to the contract and all expected cash flows received, that is, the present value of al l cash
shortage. The financial assets purchased or originated that have suffered fro m credit impairment shall be discounted at the
effective interest rate of the financial assets through credit adjustment.
The provision for loss on the accounts receivable from standard transactions in the income guidelines and not containing
material financing elements shall be measured by the Company by simplified measurement according to the amount
equivalent to the expected credit loss in the whole duration.
For the financial assets purchased or originated that have suffered from credit impairment, only the cumulative changes of the
expected credit loss in the whole duration upon initial recognition are recognized as provision for loss on the balance sheet
date. On each balance sheet date, the amount of change in the expected credit loss over the entire duration is recorded as an
impairment loss or gain in the current period. Favorable changes in the expected credit loss are recognized as impairment
gains even if the expected credit loss for the entire duration recognized on the balance sheet date is less than the amount of
overdue credit loss reflected in the estimated cash flow upon initial recognition.
For the financial assets other than those purchased or originated that have suffered from credit impairment by simplified
measurement, the Company shall evaluate whether the credit risk of relevant financial instrument has increased significantly
upon initial recognition on each balance sheet date and measure its provision for loss and recognize the expected credit loss es
and changes respectively in the following cases:
1) If the credit risk of the financial instrument has not increased significantly upon initial recognition and is in the first s tage,
its provision for loss is measured according to the amount equivalent to the expected credit loss of the finan cial instrument in
the next 12 months, and the interest income is calculated according to the book balance and the effective interest rate.
2) If the credit risk of the financial instrument has significantly increased without credit impairment upon initial re cognition
and is in the second stage, its provision for loss is measured according to the amount equivalent to the expected credit loss of
the financial instrument in the whole duration, and the interest income is calculated according to the book balance a nd the
effective interest rate.
3) If the financial instrument has suffered from credit impairment upon initial recognition and is in the third stage, its
provision for loss is measured according to the amount equivalent to the expected credit loss of the fin ancial instrument in the
whole duration, and the interest income is calculated according to the amortized cost and the effective interest rate.
The amount increased or written back of the provision for credit loss of the financial instrument is recorded as an impairment
loss or gain in the current period. Except for financial assets measured at fair value of which changes are recorded into oth er
comprehensive income, the book balance of financial assets is offset by the provision for credit losses. For fina ncial assets
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measured at fair value of which changes are recorded into other comprehensive income, the Company recognizes its provision
for credit losses in other comprehensive income and does not reduce the book value of the financial assets on the balanc e
sheet.
If the Company has measured the provision for loss in the previous accounting period according to the amount equivalent to
the expected credit loss of the financial instrument in the whole duration but the credit risk of the financial instrument h as no
longer been increased significantly upon initial recognition on the current balance sheet date, the Company shall measure the
provision for loss on the financial instrument on the current balance sheet date according to the amount equivalent to the
expected credit loss in the next 12 months and the resulting amount written back from the provision for loss is recorded as an
impairment gain in the current period.
① Significant increase in credit risk
By means of the reasonable and valid forward-looking information available, the Company determines whether the credit
risks of financial instruments have increased significantly upon initial recognition by comparing the default risk of the
financial instruments on the balance sheet date with the default risk on the initial recognition date. For financial guarantee
contracts, when the Company applies the impairment provisions on financial instruments, the date on which the Company
becomes a party to make an irrevocable commitment shall be the initial recogniti on date. The Company will consider the
following factors when assessing whether the credit risk has increased significantly: whether there are significant changes i n
the actual or overdue operating results of the debtor; whether there has been a significan t adverse change in the regulatory,
economic or technical environment in which the debtor resides; whether there are significant changes in the value of collater al
as collateral for debt or in the quality of guarantees or credit enhancements provided by th ird parties, as well as the
probability that these changes are expected to reduce the financial incentive for the debtor to repay on the terms specified in
the contract or affect the breach of contract; whether there has been a significant change in the ex pected performance and
repayment behavior of the debtor; whether the Company's credit management methods for financial instruments have changed.
For a financial instrument with low credit risk on the balance sheet date, the Company assumes that the credit risk has not
increased significantly upon the initial recognition. The financial instrument is considered to have a low credit risk if the
financial instrument has relatively low default risk, and the borrower has a strong ability to fulfill its contractua l cash flow
obligations in a short term, which will not necessarily reduced even if there are adverse changes in the economic situation a nd
operating environment in a long term.
② Financial assets that have suffered from credit impairment
When one or more events occur that adversely affect the expected future cash flow of a financial asset, the financial asset
becomes a financial asset with credit impairment. The evidence for credit impairment of financial assets includes: the debtor
has incurred major financial difficulties; the debtor breaches a contract, such as by default or exceeding payment of default or
late payment of interest or principal; the creditor gives the debtor concessions that he would not make under any
circumstances for economic or contractual reasons related to the debtor's financial difficulties; the debtor is likely to go
bankrupt or undergo other financial restructuring; the financial difficulties of the issuer or debtor cause the active market for
the financial asset to disappear; a substantial discount at which a financial asset is purchased or originated reflects the fact of
credit loss.
The credit impairment of the financial asset may be caused by the joint action of the above events, and may not necessarily b e
caused by the events that can be identified separately.
③ Determination of expected credit loss
The Company evaluates the expected credit losses of financial instruments on the basis of individual and combined
instruments, and in assessing the expected credit losses, takes into ac count reasonable and valid information about past events,
current conditions and projections of future economic conditions.
Based on the characteristics of common credit risks, the Company divides financial instruments into different combinations.
The individual assessment standards and the characteristics of the combination credit risks of relevant financial instruments
are detailed in the accounting policies of relevant financial instruments.
The Company shall determine the expected credit losses of the relevant financial instruments in the following ways:
In the case of a financial asset, the credit loss is the present value of the difference between the contract cash flow recei vable
by the Company and the expected cash flow receivable;
In the case of a financial guarantee contract, the credit loss is the present value of the difference between the estimated
amount of payment to be made by the Company in respect of any credit loss incurred under the contract, and the amount that
the Company expects to receive from the contract holder, debtor or anywhere else;
In the case of a financial asset with credit impairment on the balance sheet date but not purchased or originated with credit
impairment, the credit loss is the difference between the book balance of the financial asset and the present value of the
estimated future cash flow discounted at the original effective interest rate.
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11. Notes receivable
Based on the acceptor credit risk of notes receivable as a common risk feature, the Company divides the notes receivable into
different combinations and determines the expected credit loss accounting estimation policy:
Combination Basis for recognition of
Accrual method
classification combination
The Company believes that the banker's acceptance bill held
Banker's acceptance bill The acceptor is a banking
does not have significant credit risk and will not cause
combination financial institution
major losses due to bank default.
The acceptor is a financial
The Company measures the provision for bad debt of
Commercial acceptance company or other non-bank
commercial acceptance bills receivable according to the
bill combination financial institution or enterprise
expected credit loss of the entire duration
unit
12. Accounts receivable
The provision for loss on the accounts receivable (whether or containing material financing elements) from standard
transactions in theAccounting Standards for Enterprises No.14 - Revenues and on the lease receivables regulated in the
Accounting Standards for Enterprises No. 21 - Lease shall be measured by the Company by simplified measurement
according to the amount equivalent to the expected credit loss in the whole duration.
The Company shall evaluate whether the credit risks of accounts receivable have increased significantly on the basis of a
single financial instrument or a financial instrument combination. The Company makes single assessment of the credit risks
for the accounts receivable with significantly different credit risks and the following features: accounts receivable in dispute
with the other party or involving litigation or arbitration; accounts receivable with obvious signs that the debtor is likely to be
unable to perform the repayment obligations. It is feasible for the Company to evaluate whether the credit risks increase
significantly on the basis of financial instrument combination if it is unable to obtain sufficient evidence for significant
increase in credit risks at reasonable cost at the level of single financial instrument. The Company can classify financi al
instruments based on the characteristics of common credit risk in assessment based on the financial instrument combination.
The Company divides the accounts receivable into the following combinations based on their credit risk characteristics:
Combination classification Basis for recognition of combination Accrual method
Credit loss withdrawn on accounts
The receivables with the same aging have
receivable by aging analysis Expected credit loss rate
similar credit risk characteristics
method
Related parties in the consolidation Funds of subsidiaries in the consolidation
Generally no expected credit loss
scope scope of controlling shareholders
If there is objective evidence that a credit impairment has occurred in an account receivable, the Company s hall withdraw the
provision for bad debts for that account receivable and recognize the expected credit loss.
For the accounts receivable with the credit loss drawn by aging analysis method, based on the actual credit losses of the
previous year and taking into account the forward-looking information of the current year, the Company's accounting
estimation policy for measuring expected credit losses is as follows:
Aging Expected credit loss rate
Within 1 year 5.00%
1~2 years 10.00%
2~3 years 20.00%
3~4 years 50.00%
4~5 years 80.00%
More than 5 years 100.00%
The Company shall calculate the expected credit loss of the accounts receivable on the balance sheet date. If the expected
credit loss is greater than the book amount of the provision for impairment of current accounts receivable, the Company
recognizes the difference as the provision for impairment of accounts receivable, debits the “credit impairment loss” and
credits the “provision for bad debt”. On the contrary, the Company recognizes the difference as an impairment gain and
records the opposite.
Where the Company has actually incurred a credit loss and the relevant accounts receivable are determined to be irrecoverable,
and the write-off is approved, the “provision for bad debt” shall be debited and the “accounts receivable” shall be credited
according to the approved write-off amount. If the write-off amount is greater than the provision for loss which has been
calculated, the “credit impairment loss” shall be debited according to the difference.
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13. Receivables financing
The financial asset of the Company that meets the following conditions simultaneously is classified as the financial asset
measured at fair value of which changes are recorded into other comprehensive income: the business model for managing
such financial assets is to collect contractual cash flows and to sell the financial asset; according to the contract terms of the
financial asset, the cash flow generated on a specific date is only for the payment of the principal and the interest based o n the
outstanding principal amount.
The Company transfers the accounts receivable held in the form of discount or endorsement. Such accounts receivable with
frequent business and large amount involved are measured at fair value and their changes are recorded into other
comprehensive income according to relevant regulations in the financial instrument standards if the management business
model is to collect and sell contractual cash flows.
14. Other receivables
Recognition 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 has different accounting
treatment methods for other receivables impairment in different stages:
● the credit risks has not increased significantly upon initial recognition (first stage).
For the financial instruments in this stage, the Company should measure the provision for loss according to the expected
credit loss over the next 12 months.
The Company takes aging as the credit risk characteristic to group other receivables and me asures them on the basis of
combination, which is equivalent to the expected credit loss in the next 12 months.
● The credit risk has significantly increased without credit impairment upon initial recognition (second stage).
For the financial instruments in this stage, the Company should measure the provision for loss according to the expected
credit loss in the whole duration.
● Credit impairment upon initial recognition (third stage)
For the financial instruments in this stage, the Company should measure the provision for loss according to the expected
credit loss in the whole duration.
15. Inventory
The Company's inventory mainly includes low priced and easily worn articles, raw materials, work in process, merchandise
inventory and goods shipped in transit, etc.
The perpetual inventory system is adopted for the inventories and the inventories are price according to the actual cost when
obtained; the cost of the inventories is recognized by the weighted average method when received or issued. The low priced
and easily worn articles and packages are amortized by one-time writing-off method.
The year-end inventory is priced according to the cost of inventories or net realizable value, whichever is lower. In case of
inventory damage, full or partial obsolescence or selling price below the cost, the non-recoverable part of its cost is expected
and the inventory falling price reserves are withdrawn. The inventory falling price reserves of the merchandise inventory and
raw materials are withdrawn according to the difference between the cost of a single inventory item and its net realizable
value; for the inventories with large quantity and low unit price, the inventory falling price reserves are withdrawn accordi ng
to the inventory category.
For the merchandise inventory, work in process, materials for sale and other merchandise inventories directly used for sale,
the net realizable value is recognized by the amount of the estimated sale price of the inventories subtracted by the estimat ed
selling expenses and related taxes; for the material inventory possessed for production, the net realizable value is recognized
by the amount of the estimated sale price of the finished products subtracted by the estimated cost about to occur in
completion, estimated selling expenses and related taxes.
16. Contract assets
1. Methods and standards for the recognition of contract assets
Contract assets refer to the Company's rights to receive consideration for the transfer of goods to the customer, and such
rights are subject to factors other than the passage of time. If the Company sells two clearly distinguishable commodities to
customers, and it has the right to receive payment due to the delivery of one of the commodities, but the receipt of such
payment also depends on the delivery of another commodity, the Company regards the right to receive payment as a contract
asset.
2. Recognition method and accounting treatment method of the expected credit loss of contract assets
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For the recognition method of expected credit loss of contract assets, refer to the above 1. Financial assets and financial
liabilities, 11. Notes receivable and 12. Accounts receivable.
The Company shall calculate the expected credit loss of the contract assets on the balance sheet date. If the expected credit
loss is greater than the book amount of the provision for impairment of current contract assets, the Company recognizes the
difference as the provision for impairment, debits the “assets impairment loss” and credits the “provision for impairment of
contract assets”. On the contrary, the Company recognizes the difference as an impairment gain and records the opposite.
Where the Company has actually incurred a credit loss and the relevant contract assets are determined to be irrecoverable, an d
the write-off is approved, the “provision for impairment of contract assets” shall be debited and the “contract assets” shall be
credited according to the approved write-off amount. If the write-off amount is greater than the provision for loss which has
been calculated, the “assets impairment loss” shall be debited according to the difference.
17. Contract cost
1. Recognition method of asset amount related to contract cost
The Company's assets related to contract cost include the contract performance cost and the contract acquisition cost.
The contract performance cost, that is, the cost incurred by the Company for the performance of the contract, which is not
within the scope of other accounting standards for business enterprises and meets the following conditions at the same time, is
recognized as an asset as the contract performance cost: such cost is directly related to a current or prospective contract,
including direct labor, direct materials, manufacturing expenses (or similar expenses), costs clearly borne by the customer a nd
other costs incurred solely as a result of the contract; Such cost increases the resources used by the Company to fulfill its
performance obligations in the future; And such cost is expected to be recovered.
The contract acquisition cost, that is, the incremental cost incurred by the Company to acquire the contract, which is expected
to be recovered, is recognized as an asset as the contract acquisition cost; If the amortization period of such asset does no t
exceed one year, it shall be recorded into the current profit and loss when it occurs. Incremental cost refers to the cost that
will not occur if the Company does not acquire the contract (such as sales commission, etc.). Other expenses incurred by the
Company to acquire the contract other than the expected recoverable incremental costs (such as travel expenses incurred
regardless of whether the contract is acquired or not) shall be recorded into the current profit and loss when it occurs, exc ept
those clearly borne by the customer.
2. Amortization of assets related to contract cost
Assets related to contract costs are amortized on the same basis as income recognition of goods related to the asset, and are
recorded into the current profit and loss when it occurs.
3. Impairment of assets related to contract cost
When determining the impairment loss of assets related to the contract cost, the Company first determines the impairment loss
of other assets related to the contract recognized in accordance with other relevant accounting standards for business
enterprises; Then, if the book value is higher than the difference between the residual consideration expected to be obtained
by the Company due to the transfer of goods related to the asset and the estimated cost to be incurred for the transfer of
relevant goods, the excess part shall be accrued for impairment provision and recognized as asset impairment loss.
If the factors of impairment in the previous period change so that the difference above is higher than the book value of the
asset, the Company shall reverse the withdrawn asset impairment provision and include it into the current profit and loss, but
the book value of the reversed asset shall not exceed the book value of such asset on the reversal date if the impairment
provision is not withdrawn.
18. Long-term equity investment
The Company's long-term equity investment mainly consists of investment in subsidiaries, joint ventures and cooperative
enterprises.
The Company's judgment on common control is based on the collective control of the arrangement by all participants or a
combination of participants, and the policy on the activities related to the arrangement must be agreed upon by all participa nts
in the collective control of the arrangement.
When the Company directly or indirectly owns more than 20% (including) but less t han 50% voting rights of the investee
through its subsidiaries, it is generally considered to have a significant impact on the investee. When the Company owns less
than 20% voting rights of the investee, it shall be judged to have a significant impact on t he investee with comprehensive
consideration to dispatching representatives in the board of directors of the investee or similar authority, participating in the
formulation process of the financial and business policy of the investee, conducting important transactions with the investee,
dispatching management to the investee or providing key technical data for the investee.
The company that forms control over the investee shall be a subsidiary of the Company. For the long -term equity investment
acquired through business combination under common control, the share of the book value of the net assets of the combined
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party in the consolidated statements of the final controlling party, on the combination date, is regarded as the initial cost of
the long-term equity investment. If the book value of the net assets of the combined party on the combination date is negative,
the long-term equity investment cost shall be determined as zero.
If the Company acquires the equity of the investee under common control by step s through several deals, finally forms
business combination and such deals belong to package deal, the deals shall be subject to accounting treatment as a deal to
obtain the control right. If the deals do not belong to the package deal, the share of the bo ok value of the net assets of the
combined party in the consolidated financial statements of the final controlling party, on the combination date, is regarded as
the initial cost of the long-term equity investment. The difference between the initial cost of the long-term equity investment
and the sum of the book value of the long-term equity investment before the combination plus the book value of the new
consideration for shares on the combination date is adjusted against capital reserve; if the capital re serve is not sufficient to
absorb the difference, the retained earnings shall be written down.
For the long-term equity investment acquired through business combination not under common control, the combined cost is
the initial investment cost.
If the Company acquires the equity of the investee not under common control by steps through several deals, finally forms
business combination and such deals belong to package deal, the deals shall be subject to accounting treatment as a deal to
obtain the control right. If the deals do not belong to the package deal, the sum of the book value of the equity investment
originally held and newly increased investment cost shall be considered as initial cost of the investment that calculates
according to cost method. If the equity held before the acquiring date is calculated by the equity method, other comprehensive
income calculated by the equity method is not adjusted and shall be subject to accounting treatment when disposing of the
investment through adopting the basis for the direct disposal of relevant assets or liabilities of the investee. If the original
equity held before the acquiring date is calculated at fair value in the available-for-sale financial assets, the change in the
cumulative fair value originally included in other comprehensive income is transferred to the current investment profit and
loss on the combination date.
Except for the long-term equity investment acquired through business combination, for the long-term equity investment made
by paying cash, the investment cost shall be the purchase price actually paid; for the long -term equity investment acquired by
issuing equity securities, the investment cost shall be the fair value of the equity securities issued; for the long -term equity
investment acquired through the exchange of non-monetary assets, the initial investment cost shall be recognized in
accordance with the relevant provisions of the Accounting Standards for Business Enterprises No.7 - Exchange of Non-
monetary Assets; for the long-term equity investment acquired by debt restructuring, the initial investment cost shall be
recognized in accordance with the relevant provisions of the Accounting Standards for Business Enterprises No.12 - Debt
Restructuring.
The investment in subsidiaries is measured by the cost method and the investment in joint ventures and cooperative
enterprises is measured by equity method.
For the long-term equity investment calculated by cost method subsequently, the long-term equity investment cost is adjusted
when the investment is added or recovered. The cash dividends or profits declared to be distributed by the investee should be
recognized as current investment income.
The book value of the long-term equity investment measured subsequently by equity method shall be inc reased or decreased
with the change in the owner’s equity of the investee. The share of the net profits and losses of the investee to be enjoyed
shall be recognized after offsetting of the part of the internal deal profits and losses attributable to the Co mpany between the
joint venture and cooperative enterprise according to the shareholding ratio and after adjustment of the new profits of the
investee on the basis of the fair value of the identifiable assets of the investee when the investment is obtained and according
to the Company’s accounting policy and accounting period.
In disposal of the long-term equity investment, the balance between the book value and the actual price obtained is charged to
current investment income. If a long-term equity investment calculated by the equity method is included in the owner's equity
due to changes in the owner's equity other than the net profit and loss of the investee, the part originally included in the
owner's equity in the disposal of the investment shall be transferred to the current investment profit and loss by the
corresponding proportion.
If the deals for disposal of the equity by steps until the loss of the control right do not belong to the package deal, each deal
shall be subject to accounting treatment respectively. If they belong to a package deal, the deals shall be subject to accounting
treatment as a deal for disposal of subsidiary and loss of the control right; however, the difference between each disposal
price and the book value of the long-term equity investment corresponding to the equity disposed of before the loss of control
right is recognized as other comprehensive income and then transferred into the current profit and loss in the period of loss of
control right.
19. Investment properties
Measurement mode of investment properties: measured by cost method.
Depreciation or amortization method: The Company's investment properties include the leased buildings which are measured
by cost model.
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The Company's investment properties are depreciated or amortized by the straight-line depreciation method. The estimated
service life, net residual rate and yearly depreciation (amortization) ratio of all types of investment properties are as fol lows:
Yearly depreciation
Category Depreciation life (year) Expected residual rate (%)
(%)
Houses and buildings 20 years 5.00 4.75
20. Fixed assets
(1) Recognition conditions
The Company’s fixed assets refer to the tangible assets with the following features which are held for production of goods,
provision of labor, lease (excluding lease of buildings) or operating management and whose service life exceeds year.
The fixed assets can be recognized when the economic benefits related to the fixed assets are likely to flow to the Company
and when the cost of the fixed assets can be reliably measured. The fixed assets, including buildings, machinery equipment,
transportation equipment and other equipment, are entered into the account by actual cost when obtained, in which, the cost o f
purchased fixed assets includes buying price, import tariff and other relevant taxes, as well as other expenses incurred before
the fixed assets reach the extended usable status and directly attributable to the assets; cost of self -constructed fixed assets,
consisting of necessary expenses incurred from construction of the asset to the intended serviceable conditions; the cost
invested by the investors in the fixed assets is determined according to the value stipulated in the investment contracts or
agreements, except the value stipulated in the contracts or agreements is not fair; the fixed assets under financing lease shall
be recorded in the accounts according to the lower present value between the fair value of the leased asset on the lease
commencement date and the minimum lease payment.
Accounting treatment of subsequent expenditure of fixed assets: subsequent expenditure of fixed assets mainly includes the
transformation and renovation expenses and repair expenses. If the economic benefits related may flow in and the cost can be
reliably measured, the subsequent expenditure is included in the fixed asset cost and the book value of the replaced part is
derecognized. The other subsequent expenditure is charged to current profit and loss upon occurrence.
The Company shall review the service life, estimated residual value and depreciation method of the fixed assets on each
balance sheet date and handle any change as the accounting estimate change.
When the fixed assets are disposed of or cannot generate economic benefits through expected use or dispos al, the fixed assets
are derecognized. The income from sale, transfer, scrap or damage disposal of fixed assets is included in current profits and
losses after deducting the book value and related taxes.
(2) Depreciation method
Category Depreciation method Depreciation life Residual rate Yearly depreciation
Houses and buildings Straight-line method 20 years 5.00% 4.75%
Machinery equipment Straight-line method 10 years 5.00% 9.50%
Transportation
Straight-line method 5 years 5.00% 19.00%
equipment
Other equipment Straight-line method 5 years 5.00% 19.00%
21. Construction in progress
The construction in progress is measured according to the actual cost. The self-run construction shall be measured by direct
materials, direct wages and direct construction costs; the outsourced construction shall be measured according to the paid
project cost; the equipment installation project cost shall be determined according to the value, installation cost and test run
expenses of the equipment installed. The cost of the construction in progress should also include the capitalized borrowing
costs.
The fixed assets of the construction shall be carried forward to the fixed assets by the estimated value according to the
construction budget, cost or actual construction cost from the date when they reach the intended usable state, and the
depreciation shall be calculated and withdrawn from the following month. The original value difference of the fixed assets is
adjusted after the completion settlement procedures.
22. Borrowing costs
Recognition principle of capitalization of borrowing costs: the construction or production borrowing costs incurred and
directly attributable to the assets meeting the capitalization conditions are capitalized and charged to relevant asset costs ;
other borrowing costs shall be recognized as costs according to the amount incurred when they occur and shall be included in
the current profit and loss. Assets meeting the capitalization conditions refer to the fixed assets, intangible assets, inven tories
and other assets which can reach the intended usable or marketable status only after quite a long time (generally more than 1
year) of construction or production activities.
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Capitalization period of borrowing costs: the borrowing costs related to the assets tha t meet the capitalization conditions start
to be capitalized when the expenditure to acquire and the borrowing costs have occurred and the construction or production
activities required to make the assets reach the usable or marketable status have started. In case of abnormal interrupt of the
assets meeting the capitalization conditions for more than 3 consecutive months in the construction or production process, th e
capitalization of the borrowing costs is suspended; the borrowing costs stop capitalization when the construction or
production assets meeting the capitalization conditions reach the usable or marketable status.
Calculation method for capitalized amount of borrowing costs: when special borrowings are borrowed for construction or
production of the assets meeting the capitalization conditions, the difference between the interest incurred in the period of
special borrowings and the interest income from the unused borrowing fund in the bank or the investment income of
temporary investment is deemed as the capitalized amount of the interest on the special borrowings. When general borrowings
are occupied for construction or production of assets meeting the capitalized conditions, the weighted average of the
expenditure to acquire exceeding the special borrowings in the cumulative expenditure to acquire is multiplied by the
weighted average interest rate of the general borrowings occupied to calculate and determine the amount of interest to be
capitalized on the general borrowings.
23. Right-of-use assets
The right-of-use assets refers to the right of the Company, as the lessee, to use the leased assets during the lease term.
(1) Initial measurement
On the beginning date of the lease term, the Company make the initial measurement of the right-of-use assets according to the
cost. The cost includes the following four items: ① the initial measurement amount of lease liabilities; ② the amount of lease
payment paid on or before the beginning of the lease term. In case of a lease incentive, the amount of the granted lease
incentive shall be deducted; ③ The initial direct expenses incurred, i.e., the incremental costs incurred to complete the lease;
④ The expected costs for dismantling and removing the leased assets, restoring the site where the leased assets are located or
restoring the leased assets to the state agreed upon under the lease terms, except those costs for the production inventory.
(2) Subsequent measurement
After the beginning date of the lease term, the Company adopts the cost model for subsequent measurement of the right-of-use
assets, that is, the right-of-use assets are measured at cost less accumulated depreciation and accumulated impairment losses.
If the Company re-measures the lease liabilities in accordance with the relevant provisions of the lease standards, the book
value of the right-of-use assets shall be adjusted accordingly.
Depreciation of right-of-use assets
From the beginning date of the lease term, the Company makes the depreciation of t he right-of-use assets. The right-of-use
assets are usually depreciated from the month when the lease term begins. The amount of depreciation accrued shall be
included in the cost of relevant assets or current profit and loss according to the purpose of th e right-of-use assets.
When determining the depreciation method of the right-of-use assets, the Company makes a decision according to the
expected consumption mode of the economic benefits related to the right -of-use assets, and depreciates the right-of-use assets
by using the straight-line method.
The Company follows the following principles when determining the depreciation life of the right -of-use assets: Where it can
be reasonably determined that the ownership of the leased assets can be acquired upon t he expiration of the lease term,
depreciation shall be calculated and withdrawn during the remaining service life of the leased assets; where it is impossible to
reasonably determine that the ownership of the leased assets can be acquired upon the expirati on of the lease term, the
depreciation shall be calculated and withdrawn within a shorter period of the lease term and the remaining service life of th e
leased assets.
Impairment of right-of-use assets
In case of impairment of the right-of-use assets, the Company will conduct subsequent depreciation according to the book
value of the right-of-use assets after deducting the impairment loss.
24. Intangible assets
(1) Valuation method, service life and impairment test
The Company's intangible assets mainly include land use rights, software, trademarks, patents, etc. The actual cost of the
purchased intangible assets shall be the actual cost and other relevant expenses. The actual cost of the intangible assets
invested by the investors is determined according to the value stipulated in the investment contracts or agreements. If the
value stipulated in the contracts or agreements is not fair, the actual cost is determined according to the fair value. The
intangible assets are amortized by the straight-line method. The classification and amortization period of the Company's
intangible assets are as follows:
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Category Amortization period
Land use right 50 years
Patent 10 years
Software 3~5 years
Trademark and domain name 10 years
The Company’s land use right is amortized averagely according to the transfer life from the date of transfer; the Company's
patent right, non-patented technology, the right to use the special software and other intangible assets are amortized averagely
by the shortest of the estimated service life, the beneficial life stipulated in the contract and the effective life stipulated by law.
The amortization amount shall be recorded into the current profit and loss or the cost of related assets according to its
beneficiary object.
The expected useful life and amortization methods of the intangible assets with limited useful life are reviewed at the end of
each year and adjusted accordingly in case of change; the expected useful life of the intangible assets with uncertain useful
life are reviewed in each accounting period. If there is evidence that the service life of intangible assets is limited, the service
life shall be estimated and amortized within the expected useful life.
(2) Accounting policy of expenditure for internal research and development
The expenditure of the Company's internal R&D projects is classified into the expenditure at the research stage and the
expenditure at the development stage according to its nature and great uncertainty of the intangible assets eventually formed
by R&D activities.
For intangible assets developed independently, the expenditure in the research stage shall be included in the current profit and
loss when it occurs; The expenditures in the development stage shall be recognized as assets if they meet the following
conditions at the same time:
● Technically feasible to complete the intangible assets, so that they can be used or sold;
● It is intended to finish and use or sell the intangible assets;
● The products generated by the intangible assets can be sold or the intangible assets themselves can be sold;
● It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with the suppor t
of sufficient technologies, financial resources and other resources; and
● The development expenditures of the intangible assets can be reliably measured.
The expenses at the development stage not meeting above conditions are included in current profits and losses when obtained.
The development expenses included in profits and losses in previous periods are not recognized as assets in subsequent
periods. The capitalized expenses at the development stage are listed as development expenses in the balance sheet and
transferred to intangible assets when the project reaches the intended usable state.
If the expenditure at the research stage and the expenditure at the development stage cannot be distinguished, the R&D
expenditure incurred is fully charged to the current profit and loss. The cost of intangible assets formed by internal
development activities consists only of the total expenditure incurred between the point at which the conditions for
capitalization are met and the time at which the intangible assets reach their intended use. The expenditure that has been
expensed and included in the profit and loss for the same intangible asset before reaching the capitalization conditions in the
development process is no longer adjusted.
25. Long-term assets impairment
The Company checks the intangible assets determined for the long-term equity investment, fixed assets, construction in
progress and service life of the subsidiaries, joint ventures and cooperative enterprises on each balance sheet date. When th ere
are the following signs, indicating that the assets may be impaired, the Company will conduct impairment te st; for intangible
assets with uncertain goodwill and beneficial life, impairment test shall be conducted at the end of each year whether there is
any sign of impairment or not. Where it is difficult to test the recoverable amount of a single asset, the te st shall be based on
the asset group or the combination of asset groups to which the asset belongs.
After the impairment test, if the book value of the asset exceeds the recoverable amount, the difference is recognized as an
impairment loss. Once the impairment loss of the said asset is recognized, it will not be carried back in the subsequent
accounting period. The recoverable amount of an asset is the higher of the net amount of the assets fair value subtracted by
the disposal costs and the present value of the expected future cash flow of the assets.
Signs of impairment are as follows:
● The market price of assets has fallen sharply in the current period, and its decline is significantly higher than the
expected decline due to the passage of time or normal use;
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● The economic, technical or legal environment in which the enterprise operates and the market in which its assets are
located are undergoing or will undergo significant changes in the current period or in the near future, thus adversely
affecting the enterprise;
● The market interest rate or other market return on investment has increased in the current period, which affects the
discount rate of the enterprise in calculating the present value of the expected future cash flow of assets, resulting in a
significant reduction in the recoverable amount of asset;
● There is evidence that the assets have become obsolete or its entity has been damaged;
● The assets have been or will be idle, terminated or disposed of in advance;
● The evidence in the internal report of the enterprise indicates that the economic performance of the assets has been or
will be lower than the expectation, such as the net cash flow created by the assets or the realized operating profit (or loss )
is far lower (or higher) than the expected amount;
● Other signs indicating that the assets may have been impaired.
26. Goodwill
Goodwill refers to the difference between the cost of equity investment or the cost of business combination not under the
same control and the fair value share of the investee or the acquiree's identifiable net assets that should be enjoyed or acquired
in the business combination on the acquisition date or the acquisition purchase date.
Goodwill related to subsidiaries is presented separately in the consolidated financial statements , and goodwill related to joint
ventures and cooperative enterprises is included in the book value of long -term equity investment.
27. Long-term unamortized expenses
The long-term unamortized expenses of the Company refer to the expenses that have been paid, but should be borne in the
current period and subsequent periods with the amortization period of more than one year (excluding one year). Such
expenses are amortized on average in the benefit period. If a long-term unamortized expense item cannot
benefit a later accounting period, the amortized value of the item that has not been amortized is
transferred to the current profit and loss.
28. Contract liabilities
Contract liabilities reflect the obligations of the Company to transfer goods to customers for consideration has been received
or receivable from customers. If the customer has paid the contract consideration or the Company has obtained the right to
receive the contract consideration unconditionally before the Company transfers the goods to the customer, the contract
liabilities shall be recognized according to the amount received or receivable at the earlier of the actual payment made by t he
customer and the due payment.
29. Employee compensation
(1) Short-term compensation accounting method
The short-term compensation mainly includes salary, bonus, allowances and subsidies, employee services and benefits,
housing fund, labor union expenditure and personnel education fund, medical insurance premiums, industrial injury insurance
premium, birth insurance premium and other social insurance premiums. The short -term compensation actually happened
during the accounting period when the staff offering the service for the Company sha ll be recognized as liabilities and
included in the current gains and losses or relevant assets cost by the beneficiary object.
(2) Post-employment benefits accounting method
Post-employment benefits mainly include basic endowment insurance, unemployment insurance and enterprise annuity
payment and are classified as defined contribution plans according to the risks and obligations undertaken by the Company.
The sinking funds made to a separate entity on the balance sheet date in exchange for services rende red by the employee
during the accounting period shall be recognized as liabilities and included in the current gains and losses or relevant asse ts
cost by the beneficiary object.
(3) Termination benefits accounting method
The Company puts forward compensation for an employee to terminate the labor relationship with the employee before expiry
of the employee labor contract. When failing to unilaterally withdraw the dismission welfare due to termination of labor
relation plan or downsizing suggestions, or when recognizing the costs related to restructuring involving payment of
dimission welfare (whichever comes first), the Company recognizes the employee compensation liabilities from the
dismission welfare and includes in current profit and loss. The compensation that is paid beyond a year is included in current
profit and loss after discount.
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(4) Other long-term employee benefits accounting method
Other long-term employee benefits mainly include the long-term incentive plan and long-term benefits and shall be subject to
the accounting treatment according to relevant provisions in the defined contribution plans.
30. Lease liabilities
(1) Initial measurement
The Company initially measures the lease liabilities according to the present value of the unpaid lease payments at the
beginning date of the lease term.
1) Lease payments
Lease payments refer to the amounts paid by the Company to the lessor related to the right to use the leased assets during th e
lease term, including: ① Fixed payment and substantial fixed payment. In case of a lease incentive, the amount related to
lease incentive shall be deducted; ② Variable lease payments depending on the index or ratio, which is determined at the
initial measurement according to the index or ratio on the beginning date of the lease term; ③ The exercise price of the call
option when the Company reasonably determines to exercise the call option; ④ The amount to be paid for exercising the
option to terminate the lease when the lease term reflects that the Company will exercise the option to t erminate the lease; ⑤
The amount expected to be paid according to the guarantee residual value provided by the Company.
2) Discount rate
When calculating the present value of lease payments, the Company adopts the interest rate implicit in lease as the discou nt
rate, which refers to the interest rate that makes the sum of the present value of the lessor's lease receipts and the presen t
value of the unguaranteed residual value equal to the sum of the fair value of the leased asset and the lessor's initial dire ct
expenses. If the Company is unable to determine the interest rate implicit in lease, the incremental loan interest rate shall be
used as the discount rate. The incremental loan interest rate refers to the interest rate that the Company must pay to borrow
funds with similar mortgage conditions during similar periods in order to obtain assets of similar value to the right -of-use
assets under similar economic environment. The interest rate is related to the following matters: ① The Company's own
situation, that is, the group's solvency and credit status; ② The term of the “loan”, i.e. the lease term; ③ The amount of
“borrowed” funds, i.e. the amount of lease liabilities; ④ “Mortgage conditions”, that is, the nature and quality of the
underlying assets; ⑤ Economic environment, including jurisdiction of the lessee, pricing currency, contract signing time, etc.
Based on the bank loan interest rate, the Company obtains the incremental loan interest rate by adjusting the above factors.
(2) Subsequent measurement
After the beginning date of the lease term, the Company makes subsequent measurement of the lease liabilities according to
the following principles: ① When confirming the interest of the lease liabilities, increase the carrying amount of the lease
liabilities; ② When paying the lease payment, reduce the carrying amount of the lease liabilities; ③ When the lease payment
changes due to revaluation or lease change, remeasure the carrying value of the lease liabilities.
The Company calculates the interest expense of the lease liabilities in each period of the lease term according to the fixed
periodic interest rate and records it into the current profit and loss, except those that should be capitalized. Periodic int erest
rate refers to the discount rate adopted by the Company for the initial measurement of lease liabilities, or the revised discount
rate adopted by the Company when the lease liabilities need to be remeasured according to the revised discount rate due to th e
change of lease payment or lease change.
(3) Remeasurement
After the beginning date of the lease term, in case of the following circumstances, the Company shall re -measure the lease
liabilities according to the present value of the lease payment after the change, and adjust the book value of the right -of-use
assets accordingly. If the book value of the right-of-use assets has been reduced to zero, but the lease liabilities still needs to
be further reduced, the Company will record the remaining amount into the current profit and loss. ① Substantial fixed
payment amount changes (in this case, the original discount rate will be adopted for discount); ② The expected amount
payable of the guarantee residual value changes (in this case, the original discount rate will be adopted for discount); ③ The
index or rate used to determine the amount of lease payment changes (in this case, the revised discount rate will be adopted
for discount); ④ The evaluation result of the call option changes (in this case, the revised discount rate will be adopted for
discount); ⑤ The evaluation result or actual exercise of the renewal option or termination option changes (in this case, the
revised discount rate will be adopted for discount).
31. Estimated liabilities
Any business related to contingencies such as external guarantee, pending litigat ion or arbitration, product quality assurance,
staff reduction plan, loss contract, restructuring obligation, environmental pollution remediation, commitment and fixed asse t
disposal obligation, if meeting all of the following conditions, is recognized as a liability: the obligation is the current
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obligation undertaken by the Company; performance of the obligation is likely to lead to the outflow of economic benefits;
the amount of the obligation can be reliably measured.
The estimated liabilities are initially recognized according to the best estimate number of the expenditure required to perform
relevant current obligations with consideration to the contingency related risks, uncertainty, time value of money and other
factors. If the time value of money has significant impact, the best estimate number is determined after discount of the future
cash flow. The book value of the estimated liabilities is reviewed on the balance sheet date and adjusted to reflect the curr ent
best estimate number if there is any change.
The existence of a potential obligation for past transactions or events shall be substantiated by the occurrence or non -
occurrence of future uncertainties; the Company will disclose the potential or current obligation a as contingent liability i f the
performance of such obligation is not likely to result in the outflow of economic benefits from the Company or if the amount
of such obligation cannot be reliably measured.
32. Share-based payment
The term share-based payment refers to a transaction in which the Company grants equity instruments or undertakes equity-
instrument-based liabilities in return for services from employee or other parties. The share-based payments shall consist of
equity-settled share-based payments and cash-settled share-based payments.
The equity-settled share-based payment in return for employee services is measured at the fair value of the equity instruments
granted to the employees. The amount of such fair value, under the situation that the rights can only be exercised after th e
service is finished and the set performance is achieved within the waiting period, and basing on the optimum estimation for
the number of equity instrument which exercise rights within the waiting period, will be measured according to straight -line
method and counted into relevant costs and expenses. The capital reserve will be increased correspondingly.
The share-based payment settled by cash will be measured according to the fair value of the liability confirmed basing on the
shares borne by the Company and other equity instruments. If the rights can be exercised immediately after being granted, the
payment will be counted into relevant costs or expenses at the fair value of the liabilities assumed and the liability will b e
increased correspondingly. If the rights can only be exercised after the situation that service within the waiting period is
completed and set performance is achieved, the service obtained at the current period, according to the fair value amount of
the liability borne by the Company, and basing on the optimum estimation for the condition of exercising rights, will be
counted into costs or expenses on each and every balance sheet date during the waiting period, and the liability will be
increased correspondingly.
Each and every balance sheet date and settlement before relevant liability settlement, the fair value of liability will be
remeasured, of which changes occurred will be counted into the current period.
33. Income
Accounting policies for income recognition and measurement
The Company’s operating income mainly includes income from selling commodities, income from offering labor and transfer
of asset use right.
1. Income recognition principle
The Company has fulfilled its contractual obligation to recognize income when the customer acquire s control of the relevant
goods or services. Obtaining control of the relevant goods or services is the ability to dominate the use of the goods or
provision of services and gain almost all economic benefits from them.
The Company evaluates the contract on the contract commencement date, identifies each individual performance obligation
contained in the contract, and determines whether each individual performance obligation is performed within a certain period
of time or at a certain point in time.
If one of the following conditions is satisfied, the Company shall be deemed to have performed its performance obligation
within a certain period of time; otherwise, it shall be deemed to have performed its performance obligation at a certain time
point:
1) The customer obtains and consumes the economic benefits arising from the Company’s performance at the same time of
the Company’s performance.
2) The customer can control the goods under construction during the Company’s performance.
3) The goods produced by the Company during the performance are of irreplaceable use, and the Company shall be entitled to
receive payment for the accumulated part of the performance completed so far during the whole contract period.
For the performance obligations performed within a certain period of time, the Company shall recognize the income in
accordance with the performance progress during that period. If the performance schedule cannot be reasonably determined
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and the cost already incurred by the Company is expected to be compensated, the Company shall recognize the income
according to the cost already incurred until the performance schedule can be reasonably determined.
For performance obligations performed at a certain time point, the Company recognizes income at the time point when the
customer acquires control of the relevant goods or services. In determining whether the customer has acquired control of
goods or services, the Company considers the following indications:
1) The Company has the current collection right for the goods or services.
2) The Company has transferred legal ownership to the goods to the customer.
3) The Company has transferred the goods in kind to the customer.
4) The Company has transferred the main risks and rewards on the property in the goods to the customer;
5) The customer has accepted the goods or services, etc.
The Company's right to receive consideration for the transfer of goods or services to the customer is listed as the contract
assets, and the contract assets are depreciated on the basis of expected credit l osses. The rights that the Company owns and
unconditionally to collect consideration from the customer are listed as receivables. The obligations of the Company to
transfer goods or services to customers for which consideration has been received or receiva ble are listed as contractual
liabilities.
2. Income measurement principle
1) If the contract contains two or more performance obligations, the Company shall, at the beginning of the contract,
apportion the transaction price to each individual performance obligation according to the relative proportion of the individual
selling price of the goods or services committed by each individual performance obligation, and measure the income
according to the transaction price apportioned to each single performance obligat ion.
2) The transaction price means the amount of consideration that the Company is expected to be entitled to collect for the
transfer of goods or services to the customer, excluding payments collected on behalf of third parties. The transaction price
recognized by the Company does not exceed the amount of accumulated recognized income which is highly unlikely to be
materially reversed when the relevant uncertainty is eliminated. The amount expected to be returned to the customer is not
included in the transaction price as a liability.
3) If there is a material financing component in the contract, the Company shall determine the transaction price based on the
amount payable in cash when the customer acquires control of the goods or services. The difference betwee n the transaction
price and the contract consideration shall be amortized by the effective interest method during the contract period. On the
commencement date of the contract, if the Company expects that the interval between the customer's acquisition of control of
the goods or services and the customer's payment of the price will not exceed one year, the material financing elements in th e
contract will not be considered.
3. Specific methods of revenue recognition
1) Revenue recognized on time
The Company's sales of electrical products, accessories and materials belong to the performance obligation to be performed at
a certain point in time.
Recognition conditions of income from domestic goods: the Company has delivered the products to the customers according
to the contract, the customers have received the goods, the payment for goods has been recovered or the receipt voucher has
been obtained, and the relevant economic benefits are likely to flow into the Company, the main risks and rewards of the
ownership of the goods have been transferred, and the legal ownership and control of the goods have been transferred.
Recognition conditions of income from export goods: the Company has declared the products to leave the port according to
the contract, obtained the bill of lading, recovered the payment for goods or obtained the receipt voucher, and the relevant
economic benefits are likely to flow into the Company, the main risks and rewards of the ownership of the goods have been
transferred, and the legal ownership and control of the goods have been transferred.
2) Revenue recognized according to performance progress
The Company's technical service income and business contracts between operating leases and customers belong to the
performance obligations performed within a certain period of time, and the income shall be recognized according to the
performance progress.
34. Government subsidies
The Company's government subsidies include financial allocations. The asset related government subsidies refer to the
government subsidies obtained by the Company and used for acquisition or construction or for formation of long -term assets
in other ways; the income related government subsidies refer to the government subsidies other than the asset related
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government subsidies. The government subsidies without subsidy objects specified in government documents shall be judged
by the Company according to the above principle, or classified into income related government subsidies as a whole if it is
difficult to judge.
The government subsidies as the monetary assets are measured according to the amount received. For subsidies allocated in
accordance with fixed quota standards, or if there is evidence at the end of year that the Company can meet relevant
conditions stipulated in the financial support policy and can be expected to receive the financial support fund, the government
subsidies are measured according to receivables. The government subsidies not as the monetary assets are measured according
to the fair value, or measured according to the nominal amount (RMB 1) if the fair value cannot be obtained reliably.
The government subsidies related to assets are recognized as deferred income and equally distributed and charged to the
current profit and loss in the service life of relevant assets.
If the related asset is sold, transferred, scrapped or damaged before the end of the useful life, the deferred income balance not
yet distributed is transferred in the profits and losses in the period of assets disposal.
The income related government subsidies, if used to compensate for related costs or losses in subsequent periods, are
recognized as the deferred income and charged to the current profit and loss when related costs or losses are recognized. The
government subsidies pertinent to the daily activities of the Company shall be included in other income or used to offset
relevant costs and expenses according to the substance of the economic business. The government subsidies irrelevant with
the daily activities of the Company shall be included in non-operating revenues and expenditures.
Where the Company has obtained discount interest on preferential loans, it shall distinguish between the two situations in
which the financial department allocates discount interest funds to the lending bank and t he financial department directly
allocates discount interest funds to the Company, and conduct accounting treatment according to the following principles:
● Where the financial department allocates the discount interest funds to the lending bank, and the len ding bank provides
the loan to the Company at the preferential policy interest rate, the Company shall take the actual amount of the loan
received as the entry value of the loan, and calculate the relevant borrowing costs according to the loan principal an d the
preferential policy interest rate.
● Where the financial department directly allocates discount interest funds to the Company, the Company will write down
the corresponding discount interest against the relevant borrowing costs.
If the government subsidy confirmed by the Company needs to be returned, the accounting treatment shall be carried out in
accordance with the following provisions in the current situation of the return:
1) The book value of related assets is adjusted if it is offset upon initial recognition.
2) For those with related deferred income, the book balance of related deferred income is written down and the excess is
accounted into the current profits and losses.
3) In the other cases, they are directly accounted into the current profits and losses.
35. Deferred income tax assets and deferred income tax liabilities
The Company’s deferred income tax assets and deferred income tax liabilities are calculated and recognized acc ording to the
difference (temporary difference) between the tax base and book value of the assets and liabilities. For the deductible loss that
can be carried forward to the subsequent year according to the tax law, the corresponding deferred income tax as sets are
recognized. For the deductible temporary differences related to the initial recognition of the goodwill, the corresponding
deferred income tax liabilities are not recognized. For the temporary differences related to the initial recognition of the assets
or liabilities incurred in the transaction not for business combination that will not affect the accounting profits and incom e tax
payable (or deductible loss), the corresponding deferred income tax assets and liabilities are not recognized. The def erred
income tax assets and deferred income tax liabilities are measured on the balance sheet date according to the applicable tax
rate in the period of expected recovery of relevant assets of liquidation of relevant liabilities.
The Company recognizes the deferred income tax assets by deductible temporary differences, within the limit of the income
tax payable that may be obtained in the future and used to offset the deductible temporary differences, the deductible loss a nd
tax deduction.
36. Lease
(1) Accounting treatment method of operating lease
(1) Identification of lease
Lease refers to a contract in which the lessor transfers the right to use assets to the lessee for consideration within a cer tain
period of time. On the commencement date of the contract, the Comp any evaluates whether the contract is a lease or includes
a lease. If a party to the contract assigns the right to control the use of one or more identified assets within a certain pe riod of
time in exchange for consideration, the contract is a lease or in cludes a lease. In order to determine whether the contract
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assigns the right to control the use of the identified assets within a certain period of time, the Company evaluates whether the
customers in the contract is entitled to obtain almost all the econo mic benefits arising from the use of the identified assets
during the use period, and to dominate the use of the identified assets during the use period.
If the contract contains multiple separate leases at the same time, the Company will split the contrac t and conduct accounting
treatment for each separate lease. If the contract contains both leased and non -leased parts, the Company will split the leased
and non-leased parts for accounting treatment.
(2) The Company as the lessee
1) Lease recognition
On the beginning date of the lease term, the Company recognizes the right -of-use assets and lease liabilities. See Note IV “23.
Right-of-use assets” and “30. Lease liabilities” for the recognition and measurement of right-of-use assets and lease liabilities.
2) Lease change
Lease change refers to the change of lease scope, lease consideration and lease term beyond the terms of the original contrac t,
including adding or terminating the right to use one or more leased assets, extending or shortening the lease term specified in
the contract, etc. The effective date of the lease change refers to the date when both parties reach an agreement on the leas e
change.
If the lease changes and meets the following conditions, the Company will treat the lease change as a separate lease for
accounting: ① the lease change expands the lease scope or extends the lease term by adding the right to use one or more
leased assets; ② The increased consideration is equivalent to the amount of the separate price of the extended part of the lease
scope or the extended part of the lease term as adjusted according to the conditions of the contract.
If the lease change is not treated as a separate lease, on the effective date of the lease change, the Company will apportion the
consideration of the changed contract in accordance with the relevant provisions of the lease standards and re -determine the
lease term after the change; The revised discount rate is adopted to discount the changed lease payment to re-measure the
lease liabilities. When calculating the present value of the lease payment after the change, the Company adopts the interest
rate implicit in lease during the remaining lease period as the discount ra te; If the interest rate implicit in lease cannot be
determined for the remaining lease period, the Company will adopt the lessee's incremental loan interest rate on the effectiv e
date of the lease change as the discount rate. With regard to the impact of the above adjustment of lease liabilities, the
Company shall distinguish the following circumstances for accounting treatment: ① if the lease scope is reduced or the lease
term is shortened due to the lease change, the lessee shall reduce the book value of the right-of-use assets, and include the
relevant gain or loss of lease under partial or complete termination into the current profit and loss. ② If the lease liabilities
are re-measured due to other lease changes, the lessee shall adjust the book value o f the right-of-use assets accordingly.
3) Short-term lease and low-value asset lease
The Company chooses not to recognize the right-of-use assets and lease liabilities for short-term lease with a lease term of no
more than 12 months and low-value asset lease with a lower value when the single leased asset is a brand-new asset. The
Company will record the lease payment of short-term lease and low-value asset lease into the relevant asset cost or current
profit and loss according to the straight-line method or other systematic and reasonable methods during each period of the
lease term.
(3) The Company as the lessor
On the basis that (1) the evaluated contract is related to lease or includes a lease, the Company, as the lessor, divides the lease
into finance lease and operating lease on the commencement date of the lease.
If a lease substantially transfers almost all the risks and rewards related to the ownership of the leased assets, the lessor
classifies such lease as a finance lease, and other leases other than fin ance leases as operating leases.
(2) Accounting treatment method of finance lease
For a lease under one or more of the following circumstances, the Company usually classifies it as a finance lease: ① when
the lease term expires, the ownership of the leased asset is transferred to the lessee; ② The lessee has the option to purchase
the leased asset, and the purchase price is low enough compared with fair value of the leased asset when the option is
expected to be exercised, so it can be reasonably determined that the lessee will exercise the option on the commencement
date of the lease; ③ Although the ownership of the asset is not transferred, the lease term accounts for most of the service life
of the leased asset (no less than 75% of the service life of the leased asset); ④ On the commencement date of the lease, the
present value of the lease receipts is almost equal to fair value of the leased asset (no less than 90% of the fair value of the
leased asset) ; ⑤ The property of the leased asset is special. If no major transformation is made, only the lessee can use it. In
case of one or more of the following signs in a lease, the Company may also classify it as a finance lease: ① if the lessee
cancels the lease, and the loss to the lessor caused by the thereby is b orne by the lessee; ② The gains or losses arising from
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the fluctuation of the fair value of the residual value of assets belong to the lessee; ③ The lessee has the ability to continue
the lease for the next period at a rent far below the market level.
1) Finance lease accounting treatment
Initial measurement
On the beginning date of the lease term, the Company recognizes the finance lease receivables for the finance lease and
terminates the recognition of the finance lease assets. When the Company initially measures the finance lease receivables, th e
net amount of the lease investment is taken as the entry value of the finance lease receivables.
The net amount of the lease investment is the sum of the unguaranteed residual value and the present value of the lease
receipts not received on the beginning date of the lease term discounted at the interest rate implicit in lease. Lease receipts
refer to the amount that the lessor should collect from the lessee due to the assignment of the right to use the leased asset s
during the lease term, including: ① The fixed payment and substantial fixed payment to be paid by the lessee. In case of a
lease incentive, the amount related to lease incentive shall be deducted; ② The amount of variable lease payments depending
on the index or ratio, which is determined at the initial measurement according to the index or ratio on the beginning date of
the lease term; ③ The exercise price of the call option, provided that it is reasonably determined that the lessee will exercise
the option; ④ The amount to be paid by the lessee to exercise the option to terminate the lease, provided that the lease term
reflects that the lessee will exercise the termination option; ⑤ The guarantee residual value provided by the lessee, the party
related to the lessee and an independent third party with the financial ability to perform the guarantee obligation to the le ssor.
Subsequent measurement
The Company calculates and recognizes the interest income of each period within the lease term according to the fixed
periodic interest rate. The periodic interest rate refers to the implicit discount rate used to determine the net investment of the
lease (in the case of sublease, if the interest rate implicit in lease of the sublease cannot be determined, the discount rate of the
original lease shall be adopted (adjusted according to the initial direct expenses related to the sublease)), or the change o f the
finance lease is not accounted for as a separate lease, and if the change takes effect on the commencement date of the lease,
the revised discount rate as determined according to relevant regulations is adopted when the lease will be classified as
finance lease conditions.
Accounting treatment of lease change
If the financial lease changes and meets the following conditions, the Company will treat the change as a separate lease for
accounting: ① the change expands the lease scope by adding the right to use one or more leased assets; ② The increased
consideration is equivalent to the amount of the separate price of the extended part of the lease scope as adjusted according to
the conditions of the contract.
If the change of a finance lease is not accounted for as a separate lease and meets th e conditions that if the change takes effect
on the commencement date of the lease and the lease will be classified as an operating lease, the Company will account for it
as a new lease from the effective date of the lease change, and take the net investme nt of the lease before the effective date of
the lease change as the book value of the leased asset.
2) Accounting treatment of operating lease
Treatment of rent
During each period of the lease term, the Company adopts the straight -line method / other systematic and reasonable methods
to recognize the lease receipts of operating lease as rental income.
Incentives provided
If the rent-free period is provided, the Company will apportioned the total rent according to the straight -line method / other
reasonable methods in the whole lease period without deducting the rent-free period, and the rent income shall be recognized
during the rent-free period. If the Company bears some expenses of the lessee, the expenses shall be deducted from the total
rental income and apportioned within the lease term according to the balance of rental income after deduction.
Initial direct costs
The initial direct expenses incurred by the Company in connection with the operating lease shall be capitalized to the cost o f
the underlying assets of the lease and included in the current profit and loss by stages on the same recognition basis as the
rental income during the lease term.
Depreciation
For the fixed assets in the operating leased assets, the Company adopts the depreciation policy of similar assets for
depreciation; Other operating leased assets are amortized in systematic and reasonable methods.
Variable lease payments
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The variable lease payments obtained by the Company related to operating lease that are not included in the lease receipts are
included in the current profit and loss when actually incurred.
Change of operating lease
If the operating lease is changed, the Company will treat it as a new lease for accounting since the effective date of the ch ange.
The amount of advance receipts or lease receivables related to the lease before the change is regarded as the amount of new
lease receipts.
37. Other significant accounting policy and accounting estimate
When preparing the financial statements, the management of the Company is required to use estimates and assumptions,
which will have an impact on the application of accounting policies and the amount of assets, liabilities, income and expense s.
The actual situation may differ from these estimates. The management of the Company c ontinuously evaluates the judgment
of key assumptions and uncertainties involved in the estimates. The impact of changes in accounting estimates shall be
recognized in the current and future periods of the changes.
The following accounting estimates and key assumptions have significant risks that will lead to major adjustments to the book
value of assets and liabilities in the future periods:
(1) Financial assets impairment
The expected credit loss model is adopted to evaluate the impairment of financial instru ments in the financial assets
impairment, which requires major judgment and estimates and requires considering all reasonable and substantiated
information, including forward-looking information. In making such judgments and estimates, the Company deduces the
expected changes of the debtor's credit risks based on historical data combined with economic policies, macroeconomic
indicators, industrial risks, external market environment, technical environment, changes in customer conditions and other
factors.
(2) Provision for inventory impairment
Basis for determining the net realizable value of inventories: the net realizable value of merchandise inventory, materials f or
sale and other merchandise inventories directly used for sale is recognized by the amount of th e estimated sale price of the
inventories subtracted by the estimated selling expenses and related taxes; For the inventories held to perform the sales
contract or labor contract, the net realizable value is calculated on the basis of contract price; If th e number of the inventories
held by the enterprise is greater than the quantity ordered in the sales contract, the net realizable value of the excessive
inventories is calculated on the basis of general sale price.
The method for inventory falling price reserves: it is priced according to the lower of the year-end inventory and the net
realizable value. At the end of the period, on the basis of a comprehensive inventory of the inventories, the inventory falli ng
price reserves are withdrawn for the part of its cost is expected to be non-recoverable due to the inventory damage, full or
partial obsolescence or selling price below the cost.
If the influence factors writing down the inventory value before have disappeared, resulting in the net realizable value of the
inventories higher than the book value, the amount written down shall be restored and reversed within the originally
withdrawn amount of inventory falling price reserves and the amount reversed is included in current profit and loss.
(3) Accounting estimates of provision for impairment of goodwill
The Company conducts impairment test on goodwill every year. The recoverable amount of asset group or the combination of
asset groups containing goodwill is the present value of its estimated future cash flows, w hich need to be calculated using
accounting estimates.
If the management revises the gross margin ratio used in the calculation of future cash flows of asset group and the
combination of asset groups, and the revised gross margin ratio is lower than the cu rrent gross margin ratio, the Company
needs to withdraw impairment provision for the increase of goodwill.
If the management revises the pre-tax discount rate used for cash flow discount, and the revised gross margin ratio is higher
than the current gross margin ratio, the Company needs to withdraw impairment provision for the increase of goodwill.
If the actual gross margin ratio or pre-tax discount rate is higher or lower than the management's estimates, the Company
cannot reverse the originally accrued goodwill impairment loss.
(4) Accounting estimates of impairment provisions for fixed assets
The Company conducts impairment test on fixed assets such as houses, buildings, machinery and equipment with signs of
impairment on the balance sheet date. The recoverable amount of fixed assets is the higher of the present value of its
estimated future cash flows and the net value of the fair value of the assets minus the disposal expense, which need to be
calculated using accounting estimates.
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If the management revises the gross margin ratio used in the calculation of future cash flows of asset group and the
combination of asset groups, and the revised gross margin ratio is lower than the current gross margin ratio, the Company
needs to withdraw impairment provision for the increase of fixed assets.
If the management revises the pre-tax discount rate used for cash flow discount, and the revised gross margin ratio is higher
than the current gross margin ratio, the Company needs to withdraw impairment provision for the increase of fixed assets.
If the actual gross margin ratio or pre-tax discount rate is higher or lower than the management's estimates, the Company
cannot reverse the originally accrued impairment provisions for fixed assets.
(5) Accounting estimates for deferred income tax asset recognition
The estimation of deferred income tax assets requires an estimate of the taxable income and applicable tax rate of each year in
the future. The realization of deferred income tax assets depends on whether the Group is likel y to obtain sufficient taxable
income 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 result i n significant
adjustments to deferred income tax.
(6) Useful 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. Th e
estimated service life is determined by the management based on the historical experience of similar assets, with reference to
the estimates commonly used in the same industry and in combination with the expected technical updates. When there are
significant changes in previous estimates, the depreciation expenses and amortization expenses for the future period shall be
adjusted accordingly.
38. Significant accounting policy and accounting estimate change
(1) Changes in significant accounting policies
Applicable □ Not applicable
Content and reasons of changes in accounting policies Approval procedures Remark
On December 30, 2021, the Ministry of Finance issued the Circular on
Issuing the Interpretation of Accounting Standards for Business The 13thMeeting of the
Enterprises No.15 (C.K. [2021] No. 35) (hereinafter referred to as the Fifth Board of
“Standard Interpretation No.15”). The Company has implemented the Directors
Standard Interpretation No.15 since January 1, 2022.
(2) Significant accounting estimate change
□ Applicable Not applicable
VI. Tax
1. Main tax categories and tax rates
Tax category Taxation basis Tax rate
Added value tax Income from selling commodities 13%
Added value tax Technical service income 6%
Added value tax Income from house lease 5%
Urban maintenance and construction tax Turnover tax payable 7%
Education surcharge Turnover tax payable 3%
Surcharge for local education Turnover tax payable 2%
Housing property tax 70% of original value of the property 1.2%
Housing property tax Rental income 12%
Land use tax Total land area 5-10 yuan/m2
Corporate income tax Income tax payable 15%, 25%, 20%
If there are taxpayers with different enterprise income tax rates, the disclosure statement shall present
Name of taxpayer Income tax rate
Hangzhou ROBAM Appliances Co., Ltd. 15%
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. 15%
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Zhejiang Cooking Future Technology Co., Ltd. 25%
Beijing ROBAM Electric Appliance Sales Co., Ltd. 25%
Shanghai ROBAM Electric Appliance Sales Co., Ltd. 25%
Hangzhou Mingqi Electric Co., Ltd. 25%
Dize Home Appliances Trading (Shanghai) Co., Ltd. 25%
Hangzhou ROBAM Fuchuang Investment Management Co.,
20%
Ltd.
Hangzhou Jinhe Electric Appliances Co., Ltd 25%
2. Tax preference
Preferential policies for income tax
On December 1, 2020, the Science Technology Department of Zhejiang Province, Zhejiang Provincial Department of Finance,
Zhejiang Provincial Tax Service of State Taxation Administration and Zhejiang Local Taxation Bureau jointly issued a high -
tech enterprise certificate (No. GR202033007142) and the Company passed the high -tech enterprise identification for 3 years.
According to relevant regulations, after passing the high-tech enterprise identification, the Company can enjoy the relevant
preferential policies of the state on high-tech enterprises for three consecutive years (i.e., the income tax preference period
from January 1, 2020 to December 31, 2022), and the enterprise income tax shall be levied at the rate of 15%.
Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. (hereinafter referred to as Shengzhou Kinde), a subsidiary of the
Company, obtained the high-tech enterprise certificate (No. GR202233010421) jointly issued by the Science Technology
Department of Zhejiang Province, Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service of State
Taxation Administration on December 24, 2022 and passed the high -tech enterprise identification. The Company can enjoy
the relevant preferential policies of the state on high-tech enterprises for three consecutive years (i.e., the income tax
preference period from January 1, 2022 to December 31, 2024), and the enterprise income tax shall be levied at the rate of
15%.
According to the Announcement [2021] No. 8 of the State Taxation Administration, Hangzhou ROBAM Fuchuang Investment
Management Co., Ltd., a subsidiary of the Company, includes the part of the annual taxable income tax of small meager -profit
enterprises that does not exceed 1 million yuan into the taxable income at a red uced rate of 12.5%, and the enterprise income
tax shall be paid at the rate of 20%.
On September 22, 2022, according to the Announcement of the Ministry of Finance, the State Administration of Taxation, and
the Ministry of Science and Technology on Increasing Support for the Pre-tax Deduction for Technological Innovation
(Announcement No. 28 of the Ministry of Finance, the State Administration of Taxation, and the Ministry of Science and
Technology in 2022), for the equipment and appliances newly purchased by high -tech enterprises from October 1, 2022 to
December 31, 2022, the full amount of taxable income is allowed to be deducted in a lump sum, and a 100% additional
deduction before tax is allowed. The Company and its subsidiary Shengzhou Kinde are subject to the preferential tax policies
of corporate income tax.
● Preferential policies for added-value tax
According to the Notice of the State Taxation Administration of the Ministry of Finance on the Value -added Tax Policy for
Software Products (C.S. [2011] No. 100), the Company's embedded software sales products enjoy the v alue-added tax
refunded as soon as they are collected.
● Preferential tax policies for land use tax
According to Article 7 of the “Decision of the State Council on Amending theInterim Regulations of the People's Republic of
China Governing Land Use Tax on Cities and Towns” (Order No. 483 of the State Council of the People's Republic of China),
the Company enjoys preferential policies for reducing or exempting land use tax.
VII. Notes to items in consolidated financial statements
1. Monetary capital
Unit: yuan
Item Ending balance Beginning balance
Cash on hand 85,806.05 80,944.99
Bank deposit 5,194,887,841.18 3,718,304,060.33
Other monetary capital 97,789,023.71 83,816,341.23
Total 5,292,762,670.94 3,802,201,346.55
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Hangzhou ROBAM Appliances Co., Ltd.
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Note: ETC cash deposit of RMB 13,000.00 in bank deposits at the end of the year is restricted funds; Other monetary capital
at the year end is RMB 97,789,023.71, of which the L/C deposit of RMB 76,092,305.89, bill acceptance deposit of RMB
20,243,023.31 are limited funds, Alipay balance and Wechat balan ce of RMB 1,453,694.51 are non-limited funds that can be
withdrawn at any time.
Use of restricted monetary funds
Item Year-end balance Year-beginning balance
Letter of guarantee and bill acceptance
96,335,329.20 82,212,526.20
security deposit
ETC deposit 13,000.00
Total 96,348,329.20 82,212,526.20
2. Trading financial assets
Unit: yuan
Item Ending balance Beginning balance
Financial assets measured with fair
value and with the changes included in 2,511,844,508.00 2,872,312,500.00
current profit and loss
Where:
Bank financial products 2,511,844,508.00 2,872,312,500.00
Total 2,511,844,508.00 2,872,312,500.00
3. Notes receivable
(1) Classified presentation of notes receivable
Unit: yuan
Item Ending balance Beginning balance
Bank acceptance bill 609,791,571.72 862,581,158.56
Trade acceptance 271,981,769.99 467,612,736.26
Total 881,773,341.71 1,330,193,894.82
Unit: yuan
Ending balance Beginning balance
Book balance Provision for bad debt Book balance Provision for bad debt
Category
Accruing Book value Accruing Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Notes
receivable
of
12,553,205. 6,659,943.2 5,893,262.5 269,463,72 224,066,80 45,396,925.
provision 1.39% 53.05% 17.09% 83.15%
80 2 8 9.35 3.50 85
for bad
debt by
single item
Where:
Notes
receivable
of
provision 889,884,73 14,004,658. 875,880,07 1,307,018,8 22,221,884. 1,284,796,9
98.61% 1.57% 82.91% 1.70%
for bad 7.69 56 9.13 53.73 76 68.97
debt by
combinatio
n
Where:
Banker's
609,791,57 609,791,57 862,581,15 862,581,15
acceptance 67.57% 54.72%
1.72 1.72 8.56 8.56
bill
Commercia
l 280,093,16 14,004,658. 266,088,50 444,437,69 22,221,884. 422,215,81
31.04% 5.00% 28.19% 5.00%
acceptance 5.97 56 7.41 5.17 76 0.41
bill
902,437,94 20,664,601. 881,773,34 1,576,482,5 246,288,68 1,330,193,8
Total 100.00% 2.29% 100.00% 15.62%
3.49 78 1.71 83.08 8.26 94.82
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Provision for bad debt by single item:
Unit: yuan
Ending balance
Name
Book balance Provision for bad debt Accruing proportion Reasons for provision
Unit 1 9,336,504.18 4,668,252.09 50.00%
Unit 2 1,300,000.00 650,000.00 50.00%
Unit 3 1,042,901.00 730,030.70 70.00%
Unit 4 750,731.20 525,511.84 70.00%
Unit 5 123,069.42 86,148.59 70.00%
Total 12,553,205.80 6,659,943.22
Provision for bad debt by combination:
Unit: yuan
Ending balance
Name
Book balance Provision for bad debt Accruing proportion
Banker's acceptance bill
609,791,571.72
combination
Commercial acceptance bill
280,093,165.97 14,004,658.56 5.00%
combination
Total 889,884,737.69 14,004,658.56
(2) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
Changes in amount in current period
Category Beginning balance Recover Ending balance
Canceled after
Provision ed or Other
verification
reversed
Commercial
246,288,688.26 -225,624,086.48 20,664,601.78
acceptance bill
Total 246,288,688.26 -225,624,086.48 20,664,601.78
(3) Notes transferred to accounts receivable by the Company at the end of the period due to failure of
the drawer to perform
Unit: yuan
Amount transferred to accounts receivable at the end of the
Item
period
Trade acceptance 329,189,770.19
Total 329,189,770.19
4. Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: yuan
Ending balance Beginning balance
Book balance Provision for bad debt Book balance Provision for bad debt
Category Book
Proport Accruing Accruing Book value
Amount Amount value Amount Proportion Amount
ion proportion proportion
Accounts receivable
1,639,679,3 58.71 1,030,780,6 608,898,61 630,075,05 553,584,09 76,490,961.
of provision for bad 62.86% 28.04% 87.86%
15.79 % 96.17 9.62 2.06 0.07 99
debt by single item
Where:
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Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Provision for bad 1,639,679,3 58.71 1,030,780,6 608,898,61 630,075,05 553,584,09 76,490,961.
62.86% 28.04% 87.86%
debt by single item 15.79 % 96.17 9.62 2.06 0.07 99
Accounts receivable
1,153,269,5 41.29 72,561,356. 1,080,708, 1,617,347, 96,145,244 1,521,201,8
of provision for bad 6.29% 71.96% 5.94%
65.99 % 67 209.32 143.15 .24 98.91
debt by combination
Where:
Accounts receivable
of provision for bad
debt by expected 1,153,269,5 41.29 72,561,356. 1,080,708, 1,617,347, 96,145,244 1,521,201,8
6.29% 71.96% 5.94%
credit loss 65.99 % 67 209.32 143.15 .24 98.91
combination based
on aging features
2,792,948,8 100.00 1,103,342,0 1,689,606, 2,247,422, 649,729,33 1,597,692,8
Total 39.50% 100.00% 28.91%
81.78 % 52.84 828.94 195.21 4.31 60.90
Provision for bad debt by single item:
Unit: yuan
Ending balance
Name
Book balance Provision for bad debt Accruing proportion Reasons for provision
Unit 1 657,344,204.78 657,344,204.78 100.00% Difficult to recover
Unit 2 607,891,265.65 182,367,379.70 30.00% Debt overdue
Unit 3 112,811,043.19 42,342,003.78 37.53% Debt overdue
Unit 4 80,690,330.78 56,483,231.54 70.00% Debt default
Unit 5 27,754,259.57 18,956,340.20 68.30% Debt default
Unit 6 24,817,347.78 4,963,469.56 20.00% Debt overdue
Unit 7 21,370,090.54 14,959,063.38 70.00% Debt default
Unit 8 20,263,294.09 5,751,727.45 28.38% Debt overdue
Unit 9 16,210,905.78 11,325,134.05 69.86% Debt default
Unit 10 14,139,851.56 8,965,986.59 63.41% Debt default
Unit 11 10,185,685.90 2,157,682.25 21.18% Debt overdue
Unit 12 9,475,265.17 6,632,685.62 70.00% Debt default
Unit 13 8,440,716.52 4,288,717.32 50.81% Debt default
Unit 14 8,009,318.82 2,345,903.11 29.29% Debt overdue
Unit 15 4,025,730.93 2,818,011.65 70.00% Debt default
It is expected that there
Unit 16 16,250,004.73 9,079,155.19 55.87%
is recovery risk
Total 1,639,679,315.79 1,030,780,696.17
Note: Affected by national policies in the real estate industry, many real estate developers have financial deterioration and
debt defaults. The Company actively collects claims receivable or requires them to repay the debts with other assets. This ye ar,
the Company has carried out debt restructuring of claims receivable with real estate customers, and made the bad debt
provision at the expected credit loss rate of 20% for the part of the year -end balance of accounts receivable for which a debt
repayment agreement has been signed. See “Other important issues 2. Corporate debt restructuring matters” for details.
Provision for bad debt by combination: accounts receivable of provision for bad debt by expected credit loss combination
based on aging features
Unit: yuan
Ending balance
Name
Book balance Provision for bad debt Accruing proportion
Within 1 year 1,009,720,783.90 50,485,305.60 5.00%
1~2 years 112,392,592.96 11,239,259.29 10.00%
2~3 years 20,956,595.32 4,191,319.06 20.00%
3~4 years 6,123,348.00 3,061,674.01 50.00%
4~5 years 2,462,235.47 1,969,788.37 80.00%
More than 5 years 1,614,010.34 1,614,010.34 100.00%
96
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Total 1,153,269,565.99 72,561,356.67
Disclosure by aging
Unit: yuan
Aging Book balance
Within 1 year (including 1 year) 1,414,611,796.19
Within 1 year (including 1 year) 1,414,611,796.19
1~2 years 1,310,592,988.91
2~3 years 52,140,042.25
More than 3 years 15,604,054.43
3~4 years 8,167,899.77
4~5 years 5,260,654.01
More than 5 years 2,175,500.65
Total 2,792,948,881.78
(2) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
Changes in amount in current period
Beginning
Category Recovered or Canceled after Ending balance
balance Provision Other
reversed verification
Provision for
bad debt of 1,103,342,052.8
649,729,334.31 478,552,796.11 24,667,546.54 272,531.04
accounts 4
receivable
1,103,342,052.8
Total 649,729,334.31 478,552,796.11 24,667,546.54 272,531.04
4
(3) Receivables with top 5 ending balances by debtor
Unit: yuan
Proportion in total ending
Ending balance of accounts Ending balance of bad debt
Unit name balance of accounts
receivable provision
receivable
Unit 1 607,712,069.65 21.76% 182,313,620.90
Unit 2 452,376,997.98 16.13% 452,376,997.98
Unit 3 201,930,395.59 7.20% 10,096,519.78
Unit 4 95,125,955.20 3.39% 95,125,955.20
Unit 5 62,543,420.42 2.23% 62,543,420.42
Total 1,419,688,838.84 50.84%
(4) Amount of assets and liabilities formed by transferring accounts receivable and continuing
involvement
Unit: yuan
Asset item Year-end balance Liability item Year-end balance
Accounts receivable with
573,429.99 Short-term borrowing 573,429.99
recourse factoring
5. Advances to suppliers
(1) Presentation of advances to suppliers by aging
Unit: yuan
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2022 Full Annual Report
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 176,828,710.59 99.62% 129,823,235.88 98.98%
1~2 years 331,685.80 0.19% 1,308,725.59 1.00%
2~3 years 309,887.50 0.17% 30,069.48 0.02%
More than 3 years 30,069.48 0.02%
Total 177,500,353.37 131,162,030.95
(2) Advances to suppliers with top 5 ending balances by prepayment object
The total amount of advances to suppliers with top 5 ending balances by prepayment object in the current year was RMB
94,603,621.04, accounting for 53.30% of total number of ending balance of advances to suppliers.
6. Other receivables
Unit: yuan
Item Ending balance Beginning balance
Other receivables 80,429,057.84 73,487,381.46
Total 80,429,057.84 73,487,381.46
(1) Other receivables
1) Other receivables classified by nature
Unit: yuan
Nature of payment Ending book balance Beginning book balance
Deposit and margin 38,184,552.92 48,646,642.67
Collection by third party 50,695,825.81 39,389,486.99
Imprest 2,601,040.33 2,785,329.49
Withheld amount 4,898,268.76 3,224,265.49
Other 519,033.02 57,881.26
Total 96,898,720.84 94,103,605.90
2) Provision for bad debt
Unit: yuan
Stage 1 Stage 2 Stage 3
Expected credit loss for
Provision for bad debt Expected credit loss for Total
Expected credit losses the entire duration
the entire duration (no
over the next 12 months (credit impairment has
credit impairment)
occurred)
Balance on January 1,
20,616,224.44 20,616,224.44
2022
Balance on January 1,
2022 in current period
Withdrawn in current
-4,146,561.44 -4,146,561.44
period
Balance on December
16,469,663.00 16,469,663.00
31, 2022
Large book balance change in the current period of provision for loss
□ Applicable Not applicable
Disclosure by aging
Unit: yuan
Aging Book balance
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2022 Full Annual Report
Within 1 year (including 1 year) 70,253,063.08
Within 1 year (including 1 year) 70,253,063.08
1~2 years 9,080,735.82
2~3 years 4,279,573.74
More than 3 years 13,285,348.20
3~4 years 2,965,976.80
4~5 years 3,046,691.50
More than 5 years 7,272,679.90
Total 96,898,720.84
3) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
Changes in amount in current period
Category Beginning balance Recovered or Canceled after Ending balance
Provision Other
reversed verification
Provision for
bad debt of
20,616,224.44 -4,146,561.44 16,469,663.00
other
receivables
Total 20,616,224.44 -4,146,561.44 16,469,663.00
4) Other receivables with top 5 ending balances by debtor
Unit: yuan
Proportion in total
Ending balance of
Unit name Nature of payment Ending balance Aging other ending
bad debt provision
balance receivable
Collection by third
0~5 years and
Unit 1 party, unit security 33,940,660.20 35.03% 1,807,033.01
above
deposit
Collection by third
Unit 2 9,589,038.27 Within 1 year 9.90% 479,451.91
party
Unit security
Unit 3 4,928,000.00 More than 5 years 5.09% 4,928,000.00
deposit
Collection by third
Unit 4 party, unit security 4,648,009.63 0~5 years 4.80% 287,400.48
deposit
Unit 5 Withheld amount 3,004,085.55 Within 1 year 3.10% 150,204.28
Total 56,109,793.65 57.92% 7,652,089.68
7. Inventory
(1) Inventory classification
Unit: yuan
Ending balance Beginning balance
Inventory falling
Inventory falling
price reserves or
price reserves or
Item provision for
provision for
Book balance Book value Book balance impairment of Book value
impairment of
contract
contract
performance
performance costs
costs
Semi-
finished
946,934,786.68 34,166,612.43 912,768,174.25 971,605,585.98 51,220,027.98 920,385,558.00
products
shipped in
99
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
transit
Merchandise
433,960,199.87 38,422,564.56 395,537,635.31 529,957,331.64 28,819,579.60 501,137,752.04
inventory
Raw
124,228,344.80 124,228,344.80 161,795,174.65 161,795,174.65
materials
Low priced
and easily
worn articles 22,715,660.50 22,715,660.50 23,495,275.67 23,495,275.67
and
wrappage
Work in
110,725,274.36 110,725,274.36 116,573,107.77 116,573,107.77
process
Contract
performance 44,135,708.88 44,135,708.88 48,844,764.12 48,844,764.12
cost
1,682,699,975.
Total 72,589,176.99 1,610,110,798.10 1,852,271,239.83 80,039,607.58 1,772,231,632.25
09
(2) Inventory falling price reserves and provision for impairment of contract performance costs
Unit: yuan
Amount increased in current Amount decreased in current
Beginning period period
Item Ending balance
balance Reversed or
Provision Other Other
written off
Semi-finished
products
51,220,027.98 -12,081,017.47 4,972,398.08 34,166,612.43
shipped in
transit
Merchandise
28,819,579.60 13,747,842.79 4,144,857.83 38,422,564.56
inventory
Total 80,039,607.58 1,666,825.32 9,117,255.91 72,589,176.99
8. Other current assets
Unit: yuan
Item Ending balance Beginning balance
Pending deduct VAT on purchase 333,014.51 3,442,185.74
Prepaid tax 1,334.25 668,243.42
Total 334,348.76 4,110,429.16
9. Long-term equity investment
Unit: yuan
Increase or decrease in current period
Balance
Investme of
Beginn nt gains Adjustm Declared Ending impairm
ing and ent of payment Provisio balance ent
Invested unit balance Further Capital losses other
Changes
of cash n for (book provisio
(book invest reductio recogniz compreh in other dividend impairm Other
ment n equity value) n at the
value) ed by the ensive s or ent end of
equity income profits period
method
I. Joint enterprise
De Dietrich
Trade 3,661,70 162,760. 3,824,46
(Shanghai) 0.03 00 0.03
Co., Ltd.
3,661,70 162,760. 3,824,46
Subtotal
0.03 00 0.03
II. Joint venture
Zhejiang 1,743,4 - 1,065,99
100
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Tingshuo 29.88 677,436. 3.31
Brand 57
Operation
Managemen
t Co., Ltd.
Shaoxing
Shuaige
-
Kitchen and 4,140,00 3,828,05
311,947.
Bathroom 0.00 2.28
72
Technology
Co., Ltd.*1
-
1,743,4 4,140,00 4,894,04
Subtotal 989,384.
29.88 0.00 5.59
29
-
5,405,1 4,140,00 8,718,50
Total 826,624.
29.91 0.00 5.62
29
Other description:
*1. The Company's subsidiary, Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. contributed to establish Shaoxing
Shuaige Kitchen and Bathroom Technology Co., Ltd. on March 9, 2022, holding 40% of the shares. Such company is now in
the preparatory period.
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10. Other equity instrument investments
Unit: yuan
Item Ending balance Beginning balance
Suzhou Industrial Park Ruican Investment
Enterprise (limited partnership)
Shanghai MXCHIP Information Technology
2,116,023.22 2,116,023.22
Co., Ltd.
Total 2,116,023.22 2,116,023.22
Separate disclosure of the current period of non-transactional equity instruments
Unit: yuan
Cause for
Amount of designation to Causes for
other measure at fair carryforward
comprehens value of which retained
Recognized
Item name Aggregate gains Aggregate losses ive income changes are earnings of
dividend income
transferred recorded into other
to retained other comprehensive
earnings comprehensive income
income
Suzhou
Industrial Park
Ruican
Held for non-
Investment 100,000,000.00 —
trading purposes
Enterprise
(limited
partnership)
Shanghai
MXCHIP
Held for non-
Information 17,832,510.78 —
trading purposes
Technology Co.,
Ltd.
Total 117,832,510.78 — —
11. Investment properties
(1) Investment properties using cost measurement mode
Applicable □ Not applicable
Unit: yuan
Houses and
Item Land use right Total
buildings
I. Original book value
1. Beginning balance 11,676,710.68 11,676,710.68
2. Amount increased in current period*1 56,957,445.43 1,062,744.00 58,020,189.43
(1) Purchased
(2) Transfer from inventory/fixed
56,957,445.43 1,062,744.00 58,020,189.43
assets/construction in progress
(3) Increase by business combination
3. Amount decreased in current period 6,992,399.10 6,992,399.10
(1) Disposal
(2) Other transfer-out 6,992,399.10 6,992,399.10
4. Ending balance 61,641,757.01 1,062,744.00 62,704,501.01
II. Accumulated depreciation and amortization
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Hangzhou ROBAM Appliances Co., Ltd.
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1. Beginning balance 590,814.61 590,814.61
2. Amount increased in current period 6,277,447.75 336,535.60 6,613,983.35
(1) Accrual or amortization 1,813,454.87 15,941.16 1,829,396.03
(2) Other transfer-in 4,463,992.88 320,594.44 4,784,587.32
3. Amount decreased in current period 387,495.49 387,495.49
(1) Disposal
(2) Other transfer-out 387,495.49 387,495.49
4. Ending balance 6,480,766.87 336,535.60 6,817,302.47
III. Provision for impairment
1. Beginning balance
2. Amount increased in current period
(1) Provision
3. Amount decreased in current period
(1) Disposal
(2) Other transfer-out 387,495.49 387,495.49
4. Ending balance
IV. Book value
1. Ending book value 55,160,990.14 726,208.40 55,887,198.54
2. Beginning book value 11,085,896.07 11,085,896.07
*1. The other increase in investment properties this year comes from the completion of construction of the new plant of
Shengzhou Kinde, a subsidiary of the Company. The company has relocated all of its facilities to the new plant and rented out
the original plant and part of the new plant.
12. Fixed assets
Unit: yuan
Item Ending balance Beginning balance
Fixed assets 1,622,235,227.74 1,179,306,020.01
Total 1,622,235,227.74 1,179,306,020.01
(1) Fixed assets
Unit: yuan
Item 房屋及建筑物 机器设备 运输设备 其他设备 合计
I. Original book value:
1. Beginning balance 1,072,125,559.90 679,169,886.72 21,794,424.31 84,018,707.47 1,857,108,578.40
2. Amount increased in
508,052,163.80 100,443,322.89 873,081.44 17,573,982.75 626,942,550.88
current period
(1) Purchase 11,023,673.21 21,848,597.52 846,886.75 7,966,904.05 41,686,061.53
(2) Transfer from
490,036,091.49 78,594,725.37 26,194.69 9,607,078.70 578,264,090.25
construction in progress
(3) Increase by business
6,992,399.10 6,992,399.10
combination
3. Amount decreased in
56,957,445.43 7,067,579.99 293,110.03 1,301,118.64 65,619,254.09
current period
(1) Disposal or scrap 7,067,579.99 293,110.03 1,301,118.64 8,661,808.66
(2) Other decreases *1 56,957,445.43 56,957,445.43
4. Ending balance 1,523,220,278.27 772,545,629.62 22,374,395.72 100,291,571.58 2,418,431,875.19
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. Amount increased in 58,074,219.47 57,454,469.11 2,246,996.41 9,894,545.61 127,670,230.60
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current period
(1) Provision 57,686,723.98 57,454,469.11 2,246,996.41 9,894,545.61 127,282,735.11
(2) Other increase 387,495.49 387,495.49
3. Amount decreased in
4,463,992.88 3,427,703.44 278,454.50 1,105,990.72 9,276,141.54
current period
(1) Disposal or scrap 3,427,703.44 278,454.50 1,105,990.72 4,812,148.66
(2) Other decreases 4,463,992.88 4,463,992.88
4. Ending balance 321,138,425.43 395,184,441.84 14,716,378.28 65,157,401.90 796,196,647.45
III. Provision for impairment
1. Beginning balance
2. Amount increased in
current period
3. Amount decreased in
current period
4. Ending balance
IV. Book value
1. Ending book value 1,202,081,852.84 377,361,187.78 7,658,017.44 35,134,169.68 1,622,235,227.74
2. Beginning book value 804,597,361.06 338,012,210.55 9,046,587.94 27,649,860.46 1,179,306,020.01
*1. See “Investment properties” herein for details.
(2) Fixed assets without certificate of title
Unit: yuan
Reasons for not obtaining the certificate
Item Book value
of title
The newly built buildings are being
Houses and buildings 616,079,655.22
handled
13. Construction in progress
Unit: yuan
Item Ending balance Beginning balance
Construction in progress 406,258,146.69 454,643,364.82
Total 406,258,146.69 454,643,364.82
(1) Construction in progress
Unit: yuan
Ending balance Beginning balance
Provision Provision
Item for for
Book balance Book value Book balance Book value
impairme impairme
nt nt
Maoshan
intelligent
manufacturing
192,769,369.56 192,769,369.56 194,423,004.31 194,423,004.31
base
infrastructure
project
ROBAM
192,286,508.04 192,286,508.04 59,931,795.23 59,931,795.23
Building project
Project of
production 5,941,592.92 5,941,592.92 10,336,283.17 10,336,283.17
department 1
Customized
management 5,505,845.75 5,505,845.75 3,223,516.47 3,223,516.47
software
Project of 3,855,078.16 3,855,078.16 2,779,911.26 2,779,911.26
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production
department 3
Project of
production 1,387,610.64 1,387,610.64 1,185,840.80 1,185,840.80
department 2
Other sporadic
4,512,141.62 4,512,141.62 5,406,555.22 5,406,555.22
projects
Shengzhou
Chengnan 174,099,821.16 174,099,821.16
project
Integrated range
3,256,637.20 3,256,637.20
hood project
Total 406,258,146.69 406,258,146.69 454,643,364.82 454,643,364.82
(2) Current changes in major projects under construction
Unit: yuan
Amount
Other Proportion of
Amount carried Progr Source
Beginning decreases Ending total project
Item name Budget number increased in forward to ess of of
balance in current balance input to the
current period fixed assets in works funds
period budget
current period
Maoshan
intelligent
manufactu 192,769,
954,238,416.50 194,423,004.31 317,074,946.38 318,728,581.13
369.56
83.94% 83.94% Other
ring base
infrastruct
ure project
Shengzho
u 100.00
240,960,000.00 174,099,821.16 53,001,646.38 227,101,467.54 100.00%
%
Other
Chengnan
project
ROBAM
192,286,
Building 724,750,000.00 59,931,795.23 132,354,712.81
508.04
26.53% 26.53% Other
project
385,055,
Total 1,919,948,416.50 428,454,620.70 502,431,305.57 545,830,048.67
877.60
14. Right-of-use assets
Unit: yuan
Item Houses and buildings Total
I. Original book value
1. Beginning balance 35,620,757.32 35,620,757.32
2. Amount increased in current
3,146,563.11 3,146,563.11
period
(1) Rent in 3,146,563.11 3,146,563.11
3. Amount decreased in current
5,689,271.41 5,689,271.41
period
(1) Disposal 5,689,271.41 5,689,271.41
4. Ending balance 33,078,049.02 33,078,049.02
II. Accumulated depreciation
1. Beginning balance 5,717,803.10 5,717,803.10
2. Amount increased in current
5,561,093.48 5,561,093.48
period
(1) Provision 5,561,093.48 5,561,093.48
3. Amount decreased in current
420,991.69 420,991.69
period
(1) Disposal 420,991.69 420,991.69
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4. Ending balance 10,857,904.89 10,857,904.89
III. Provision for impairment
1. Beginning balance
2. Amount increased in current
period
3. Amount decreased in current
period
4. Ending balance
IV. Book value
1. Ending book value 22,220,144.13 22,220,144.13
2. Beginning book value 29,902,954.22 29,902,954.22
15. Intangible assets
(1) Intangible assets
Unit: yuan
Item Land use right Software Trademark Patent Total
I. Original book value
1. Year-beginning
225,656,679.95 59,863,685.75 24,624,622.64 7,300,000.00 317,444,988.34
balance
2. Amount increased in
6,191,277.67 6,191,277.67
this year
(1) Purchase 1,201,769.92 1,201,769.92
(2) Transfer from
4,989,507.75 4,989,507.75
construction in progress
3. Amount decreased
1,062,744.00 1,062,744.00
in this year
(1) Other decreases 1,062,744.00 1,062,744.00
4. Year-end balance 224,593,935.95 66,054,963.42 24,624,622.64 7,300,000.00 322,573,522.01
II. Accumulated
amortization
1. Year-beginning
30,136,519.99 45,382,855.83 8,603,040.04 3,930,769.22 88,053,185.08
balance
2. Amount increased in
4,539,860.51 5,358,973.31 2,462,462.24 1,123,076.93 13,484,372.99
this year
(1) Provision 4,539,860.51 5,358,973.31 2,462,462.24 1,123,076.93 13,484,372.99
3. Amount decreased
320,594.44 320,594.44
in this year
(1) Other decreases 320,594.44 320,594.44
4. Year-end balance 34,355,786.06 50,741,829.14 11,065,502.28 5,053,846.15 101,216,963.63
III. Provision for
impairment
1. Year-beginning
balance
2. Amount increased in
this year
3. Amount decreased
in this year
4. Year-end balance
IV. Book value
1. Book value at the
190,238,149.89 15,313,134.28 13,559,120.36 2,246,153.85 221,356,558.38
end of the year
2. Book value at the
195,520,159.96 14,480,829.92 16,021,582.60 3,369,230.78 229,391,803.26
beginning of the year
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16. Goodwill
(1) Original book value of goodwill
Unit: yuan
Investee name Increase in current period Decrease in current period
or goodwill Beginning balance By business Ending balance
forming matter Disposal
combination
Shengzhou
Kinde
Intelligent 80,589,565.84 80,589,565.84
Kitchen Electric
Co., Ltd.
Total 80,589,565.84 80,589,565.84
(2) Provision for impairment of goodwill
Unit: yuan
Investee name or Increase in current period Decrease in current period
Beginning
goodwill forming Ending balance
balance Provision Disposal
matter
Shengzhou Kinde
Intelligent Kitchen 20,015,733.28 20,015,733.28
Electric Co., Ltd.
Total 20,015,733.28 20,015,733.28
Information about the asset group or combination of asset groups in which the goodwill is located
The Company recognizes Shengzhou Kinde as an asset group, and the asset group of goodwill at the end of the year is
consistent with the asset group recognized in the goodwill impairment test on the purchase date and previous years.
Goodwill impairment test process and recognition method of key parameters (forecast period growth rate when estimating the
present value of future cash flow, stable period growth rate, profit rate, discount rate and forecast period) and goodwill
impairment loss:
The Company entrusts Zhonghe Asset Appraisal Co., Ltd. (hereinafter referred to as Zhonghe Asset) to evaluate Shengzhou
Kinde asset group to determine whether the goodwill is impaired. According to the Z.H.Z.B.Zi (2023) No.BJU3005 Valuation
Report for the Purpose of Goodwill Impairment Test issued by Zhonghe Asset, Zhonghe Asset makes a decision according to
the five-year financial budget for 2023-2027 approved by the management, and estimate the cash flow and stable period
growth rate of 4.84% for the next five years with the growth rate of 31.38%, 14.33%, 14.42%, 9.66% and 4.84%, calculate the
present value model of future cash flow with a after-tax discount rate of 11.92%, and based on the assumption of going
concern, conduct impairment tests on goodwill with the higher of the net of the fair value of the asset less disposal charges
and the present value of the expected future cash flow of the asset. According to the test, the recoverable amount of
Shengzhou Kinde asset group on December 31, 2022 was RMB 366,560,000, which is lower than the book value of the asset
group including goodwill, and there was impairment of goodwill, and the provision f or impairment was RMB 2,0015,700 this
year.
17. Long-term unamortized expenses
Unit: yuan
Amortization
Amount increased
Item Beginning balance amount in current Other decreases Ending balance
in current period
period
Office decoration
2,693,191.62 4,119,782.04 1,837,438.47 4,975,535.19
fee
Service charge 937,763.96 3,390,382.69 3,759,815.38 568,331.27
Brand endorsement
1,572,876.21 13,479,514.93 14,868,186.66 184,204.48
fee
Consulting fee 151,465.27 470,841.87 543,390.47 78,916.67
Environmental
30,139.14 385,479.63 369,706.48 45,912.29
protection fee
Total 5,385,436.20 21,846,001.16 21,378,537.46 5,852,899.90
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18. Deferred income tax assets and deferred income tax liabilities
(1) Unoffset deferred income tax assets
Unit: yuan
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Provision for credit
1,140,080,421.22 177,937,345.82 917,479,025.92 138,811,114.82
impairment
Recognition for
provisional estimate 775,373,813.20 116,306,071.98 656,596,891.65 98,489,533.76
cost
Fair value change of
other equity instrument 117,832,510.80 17,674,876.62 117,832,510.78 17,674,876.62
investments
Recognition for
86,923,728.33 13,038,559.25 102,890,393.42 15,433,559.00
deferred income
Provision for
75,904,924.33 11,385,738.65 80,039,607.58 12,005,941.14
impairment of assets
Unrealized profit of
9,265,235.74 2,316,308.94 6,550,213.16 1,637,825.81
internal transaction
Recognition for equity
7,950,207.60 1,239,475.54 3,118,765.48 480,458.47
incentive
Unrecognized financing
3,651,876.63 912,969.16 1,349,960.44 337,490.11
expenses
Payroll payable
withdrawn but not 9,848,248.72 1,477,237.31
issued
Total 2,216,982,717.85 340,811,345.96 1,895,705,617.15 286,348,037.04
(2) Unoffset deferred income tax liabilities
Unit: yuan
Ending balance Beginning balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Appreciation of assets
appraisal for business
21,533,616.61 3,230,042.49 25,908,559.83 3,886,283.97
combination not under
common control
Taxable temporary
differences due to the
125,852,613.90 18,877,892.09 15,789,858.60 2,368,478.79
pretax deduction of fixed
assets
Total 147,386,230.51 22,107,934.58 41,698,418.43 6,254,762.76
(3) Deferred income tax assets or liabilities presented as net amount after offset
Unit: yuan
Ending balance of Beginning offset Beginning balance of
Ending offset amount
deferred income tax amount of deferred deferred income tax
Item of deferred income tax
assets and liabilities income tax assets and assets and liabilities
assets and liabilities
after offset liabilities after offset
Deferred income tax
340,811,345.96 286,348,037.04
assets
Deferred income tax
22,107,934.58 6,254,762.76
liabilities
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(4) Details of unrecognized deferred income tax assets
Unit: yuan
Item Ending balance Beginning balance
Deductible loss 44,298,409.84 18,037,908.58
Total 44,298,409.84 18,037,908.58
(5) Deductible losses on unrecognized deferred income tax assets will expire in the following year
Unit: yuan
Year Ending amount Beginning amount Remark
2022 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 10,380,561.57 8,429,540.53
2027 24,349,032.53
Total 44,298,409.84 18,037,908.58
19. Other non-current assets
Unit: yuan
Ending balance Beginning balance
Item Provision
Provision for
Book balance Book value Book balance for Book value
impairment
impairment
Advance
payment for 4,082,671.76 4,082,671.76 33,649,858.27 33,649,858.27
equipment
Project
mortgage
48,666,572.69 3,315,747.32 45,350,825.37 3,129,005.00 3,129,005.00
property * Note
1
Advance
payment for 1,690,011.17 1,690,011.17
engineering
Total 52,749,244.45 3,315,747.32 49,433,497.13 38,468,874.44 38,468,874.44
*1. At the end of the year, the Company signed the debt restructuring agreement and completed the online signing procedures
for the purchase of the project mortgage property and parking space with a total price of RMB 48,666,600, and the
impairment provision of RMB 3,315,700. See “Other important issues 2. Corporate debt restructuring matters” in this report
for details.
20. Short-term borrowing
（1） Classification of short-term borrowing
Unit: yuan
Item Ending balance Beginning balance
Credit loan 51,150,000.00
Accounts receivable factoring 573,429.99 29,616,655.41
Total 51,723,429.99 29,616,655.41
Note 1: It is the working capital loan of the Company's subsidiary, Shengzhou Kinde, from Shaoxing Shengzhou Sub -branch
of Bank of Communications Co., Ltd. and Shaoxing Shengzhou Sub-branch of China Construction Bank Co., Ltd. The loan
term is 1 year, and the interest rate range is 3.40% -3.70%.
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21. Notes payable
Unit: yuan
Type Ending balance Beginning balance
Banker's acceptance bill 872,550,306.86 962,665,463.99
Total 872,550,306.86 962,665,463.99
22. Accounts payable
(1) Presentation of accounts payable
Unit: yuan
Item Ending balance Beginning balance
Payment for materials 1,179,804,339.04 1,087,160,715.37
Costs 1,004,448,565.06 923,334,216.09
Project payment 202,679,315.68 152,898,742.07
Payment for equipment 31,822,947.53 18,506,587.47
Total 2,418,755,167.31 2,181,900,261.00
Note: As of December 31, 2022, the Company's balance of important accounts payable with an age of more than one year
were RMB 59,730,514.43, mainly for project funds and fees not yet settled.
23. Contract liabilities
Unit: yuan
Item Ending balance Beginning balance
Advances from customers 959,915,567.03 1,026,782,402.35
Total 959,915,567.03 1,026,782,402.35
24. Payroll payable
(1) Presentation of payroll payable
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
I. Short-term
159,707,932.44 931,850,463.36 941,488,124.43 150,070,271.37
compensation
II. Welfare after
dismission - defined 5,469,492.64 70,264,585.09 72,037,620.93 3,696,456.80
contribution plan
III. Dismission welfare 1,464,567.42 1,288,965.71 175,601.71
Total 165,177,425.08 1,003,579,615.87 1,014,814,711.07 153,942,329.88
(2) Presentation of short-term compensation
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
1. Wages, bonuses,
155,146,075.83 780,933,004.92 791,397,299.14 144,681,781.61
allowances and subsidies
2. Employee welfare
80.00 44,848,900.05 44,848,980.05
expenses
3. Social insurance
3,769,101.65 48,060,674.57 47,510,607.78 4,319,168.44
premium
Including: medical
3,619,348.25 46,435,292.73 45,841,652.78 4,212,988.20
insurance premium
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Industrial
149,753.40 1,625,381.84 1,668,955.00 106,180.24
injury insurance premium
4. Housing fund 374,934.40 41,383,393.85 41,093,423.25 664,905.00
5. Labor union
expenditure and personnel 417,740.56 16,624,489.97 16,637,814.21 404,416.32
education fund
Total 159,707,932.44 931,850,463.36 941,488,124.43 150,070,271.37
(3) Presentation of defined contribution plans
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
1. Basic endowment
5,282,063.72 67,919,214.75 69,630,019.28 3,571,259.19
insurance
2. Unemployment
187,428.92 2,345,370.34 2,407,601.65 125,197.61
insurance premium
Total 5,469,492.64 70,264,585.09 72,037,620.93 3,696,456.80
25. Tax payable
Unit: yuan
Item Ending balance Beginning balance
Corporate income tax 70,376,526.39 137,979,203.70
Added value tax 56,957,133.24 53,911,099.54
Housing property tax 10,345,173.49 6,555,342.60
Land use tax 4,382,947.50 4,382,947.50
Urban maintenance and construction tax 3,805,759.15 3,868,615.91
Individual income tax 2,226,988.94 2,141,479.84
Education surcharge 1,631,039.59 1,657,978.22
Stamp duty 1,538,692.42 600,407.34
Surcharge for local education 1,087,359.86 1,105,318.89
Total 152,351,620.58 212,202,393.54
26. Other payables
Unit: yuan
Item Ending balance Beginning balance
Other payables 281,878,208.25 267,781,215.06
Total 281,878,208.25 267,781,215.06
1) Other payables listed by nature
Unit: yuan
Item Ending balance Beginning balance
Margin payable 265,582,978.77 252,335,944.60
Collections for others 7,285,543.45 6,179,088.18
Deposit payable 6,122,832.30 5,104,062.30
Related party transactions 2,700,000.00
Other 2,886,853.73 1,462,119.98
Total 281,878,208.25 267,781,215.06
Note: As of December 31, 2022, the Company's important other payables with an age of more than one year were RMB
230,270,137.95, mainly for sales deposit.
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27. Non-current liabilities due within a year
Unit: yuan
Item Ending balance Beginning balance
Lease liabilities due within one year 5,720,175.21 5,387,591.43
Total 5,720,175.21 5,387,591.43
28. Other current liabilities
Unit: yuan
Item Ending balance Beginning balance
Output tax to be carried forward 120,126,501.73 124,284,081.56
Total 120,126,501.73 124,284,081.56
Unit: yuan
29. Lease liabilities
Unit: yuan
Item Ending balance Beginning balance
Lease payments 28,173,738.18 37,325,149.01
Unrecognized financing expenses -3,864,596.28 -5,760,523.29
Non-current liabilities reclassified to due
-5,720,175.23 -5,387,591.43
within a year
Total 18,588,966.67 26,177,034.29
30. Deferred income
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance Causes
period period
Government
131,747,378.42 10,868,940.00 18,704,207.99 123,912,110.43
subsidies
Total 131,747,378.42 10,868,940.00 18,704,207.99 123,912,110.43 --
Other description:
Amount Amount
Amount of Amount
included in offsetting
Year- additional included in Other Asset/inco
Government current the cost in Year-end
beginning subsidy in other income alterat me
subsidy project non- the balance
balance current in current ions related
operating current
year period
income period
Subsidies for
factories,
infrastructure, 36,988,382.1
28,856,985.00 9,618,940.00 1,487,542.89 Asset related
equipment, etc. in 1
Chengnan New
District
Project fund of for
intelligent
manufacturing, 29,705,342.5
38,244,848.14 8,539,505.64 Asset related
integrated 0
standardization and
new mode application
Production and
construction project
19,757,289.3
of annual production 22,331,070.60 2,573,781.24
6
Asset related
of 2.25 million
kitchen appliances
Unmaned intelligent
15,669,066.2
factory based on 5G 17,747,914.45 2,078,848.20
5
Asset related
and Cloud technology
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Technological
upgrading project of
8,300,000.00 8,300,000.00 Asset related
manufacturing
enterprises
Construction project
of kitchen appliance
7,044,601.01 1,275,175.85 5,769,425.16 Asset related
R&D, design and test
center
Project of annual 108
embedded kitchen
4,251,843.75 682,491.00 3,569,352.75 Asset related
electric appliance
products
Technical
transformation
project with an 2,216,987.91 374,411.16 1,842,576.75 Asset related
annual output of
500,000 units
Future factory project 1,250,000.00 131,744.34 1,118,255.66 Asset related
Digital intelligent
manufacturing
workshop of 422,222.28 46,286.78 375,935.50 Asset related
intelligent household
appliances
New-generation
environmentally
friendly and energy-
531,025.31 190,650.84 340,374.47 Asset related
saving kitchen
appliances and
production line
Recycling
transformation 360,466.65 91,610.16 268,856.49 Asset related
project
Academician expert
210,622.64 44,371.40 166,251.24 Asset related
workstation
Kitchen appliance
R&D, design and test 34,946.80 7,624.80 27,322.00 Asset related
center
Project of annual
production of 2.25
24,680.65 11,000.46 13,680.19 Asset related
million digital
workshops
Subsidy for the
production and
construction project
1,139,057.12 1,139,057.12 Asset related
of annual production
of 1 million kitchen
appliances
Subsidies for
investment project of
30,106.11 30,106.11 Asset related
annual production of
150,000 range hoods
Total 123,912,110.
131,747,378.42 10,868,940.00 18,704,207.99 —
43
31. Capital stock
Unit: yuan
Increase/decrease (+, -)
Share capital
Beginning balance New Ending balance
Share increase from
issue of Other Subtotal
donation reserved
shares
funds
Total amount
949,024,050.00 949,024,050.00
of shares
32. Capital reserve
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
Capital premium (capital
401,799,332.67 401,799,332.67
stock premium)
113
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Other capital surplus 3,118,765.48 5,079,567.43 8,198,332.91
Total 404,918,098.15 5,079,567.43 409,997,665.58
Note: The increase in other capital surplus, includes the amount of RMB 4,735,460.48 coming from the provision of equity
incentives in the current period. Please refer to XV. Other important issues, equity incentives in this report; The remaining
increase of RMB 344,106.95 came from the change in equity held by minority shareholders of the Company’s controlling
subsidiary Zhejiang Cooking Future Technology Co., Ltd. this year.
33. Treasury stock
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
Share repurchase 199,995,742.59 199,995,742.59
Total 199,995,742.59 199,995,742.59
34. Other comprehensive income
Unit: yuan
Amount incurred in current period
Minus: amount
Minus: amount
included in other
included in other
comprehensive Attributa
comprehensive Attributa
Beginning Amount income in Minus: ble to
Item income in ble to the
balance before previous period Income minority Ending balance
previous period parent
current and included in tax sharehol
and carried company
income tax carried forward expenses ders after
forward to profit after tax
to retained tax
and loss in
earnings in
current period
current period
I. Other
comprehensi
ve income -
-
that can't be 100,157,6
100,157,634.16
reclassified 34.16
into profit
and loss
Fair value
change of -
-
other equity 100,157,6
100,157,634.16
instrument 34.16
investments
Total other -
-
comprehensi 100,157,6
100,157,634.16
ve income 34.16
35. Surplus reserves
Unit: yuan
Increase in current Decrease in current
Item Beginning balance Ending balance
period period
Statutory surplus
474,516,412.50 474,516,412.50
reserves
Total 474,516,412.50 474,516,412.50
36. Undistributed profit
Unit: yuan
Item Current period Prior period
Undistributed profit at the end of 7,098,721,555.37 6,240,444,654.34
114
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
previous period before adjustment
Undistributed profits at the beginning of
7,098,721,555.37 6,240,444,654.34
the period after adjustment
Plus: Net profits attributable to the
owners of parent company in the current 1,572,404,918.21 1,331,712,059.03
period
Common stock dividends payable 472,047,458.00 473,435,158.00
Undistributed profits at the end of the
8,199,079,015.58 7,098,721,555.37
period
37. Operating income and operating cost
Unit: yuan
Amount incurred in current period Amount incurred in previous period
Item
Income Cost Income Cost
Main business 9,981,652,062.48 5,021,006,447.26 9,878,609,034.58 4,780,326,936.38
Other businesses 289,848,508.56 116,362,310.89 269,097,000.77 54,726,467.99
Total 10,271,500,571.04 5,137,368,758.15 10,147,706,035.35 4,835,053,404.37
Unit: yuan
38. Taxes and surcharges
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Urban maintenance and construction tax 36,866,764.88 38,432,112.18
Education surcharge 26,333,403.43 27,451,508.66
Housing property tax 10,952,011.11 7,059,080.25
Stamp duty 4,372,007.14 3,168,252.51
Vehicle and vessel use tax 31,382.80 8,219.19
Land use tax 4,444,471.50
Other 9,014.69 27,605.88
Total 78,564,584.05 80,591,250.17
39. Selling expenses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Sales and service fees 1,025,589,168.39 888,105,322.12
Advertising and promotion expenses 742,763,089.08 688,276,034.18
Employee compensation 377,046,127.44 335,997,909.99
Booth decoration fee 193,012,956.27 234,356,309.98
Promotion fees 101,079,371.35 120,917,154.89
Material consumption 67,685,473.69 70,585,682.15
Traveling expense 27,632,789.17 36,526,754.00
Intermediary service charge 21,405,980.86 18,942,729.75
Rental fees 16,347,878.64 16,683,897.40
Business entertainment expenses 16,132,300.29 17,321,525.30
Office allowance 14,226,573.69 12,091,581.39
Other 10,704,365.02 14,613,138.77
Total 2,613,626,073.89 2,454,418,039.92
40. Management costs
Unit: yuan
115
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2022 Full Annual Report
Item Amount incurred in current period Amount incurred in previous period
Employee compensation 232,915,393.30 196,152,990.40
Depreciation and amortization 57,769,379.05 49,553,437.40
Consulting service charge 30,328,558.67 27,970,501.93
Maintenance expense 20,325,200.99 18,523,798.07
Office allowance 19,173,287.07 15,140,294.06
Rental and property fees 16,857,502.46 10,256,242.02
Business entertainment expenses 9,589,758.62 7,427,987.83
Traveling expense 8,655,474.80 8,295,851.23
Communication expense 5,882,277.89 5,536,487.28
Equity incentive fee 4,735,460.49 3,118,765.48
Car fare 3,990,965.03 4,010,092.59
Material consumption 2,329,956.33 2,410,539.20
Other 18,415,189.04 15,365,385.14
Total 430,968,403.74 363,762,372.63
41. Research and development expenses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Employee compensation 200,367,321.67 178,520,125.46
Direct investment 153,846,595.26 151,535,589.24
Depreciation and amortization 15,626,975.33 15,344,134.84
Design fee 6,949,423.09 7,421,984.65
Other expenses 14,824,490.03 13,204,832.15
Total 391,614,805.38 366,026,666.34
42. Financial expenses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Interest expenditure 10,249,057.76 9,638,311.28
Minus: Interest revenue 162,232,029.99 152,136,833.79
Plus: Exchange gain or loss -7,158,057.38 1,087,864.00
Plus: other expenses 1,918,741.00 1,737,150.64
Total -157,222,288.61 -139,673,507.87
43. Other income
Unit: yuan
Other sources of income Amount incurred in current period Amount incurred in previous period
Financial support funds for enterprise
52,042,148.00 33,070,000.00
cultivation
Embedded software tax rebate 45,959,892.74 10,979,888.36
Amortization of deferred income 18,704,207.99 18,416,145.48
Special financial funds 10,005,040.00 976,752.00
Intelligent manufacturing, integrated
standardization and new mode 6,497,000.00
application project
Special fund for industrial development 3,626,125.00 7,967,840.13
Job subsidies and social insurance
3,508,713.85 1,038,232.33
subsidies
Performance award of Shanghai
3,010,000.00
Hongkou District Finance Bureau
116
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Subsidies for R&D investment 2,788,200.00
Training allowance 706,097.00
Service charge refund 541,758.65 575,697.14
Patent reward fund 367,040.00 4,352,000.00
VAT exemption or reduction 10,643.41 18,000.00
Other subsidies 708,703.65 30,000.00
44. Investment income
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
long-term equity investment gains
-826,624.29 -47,639.68
measured by employing the equity method
Investment income from trading financial
99,787,693.44 90,550,171.74
assets during the holding period
Total 98,961,069.15 90,502,532.06
45. Credit impairment loss
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Loss on bad debts of other receivables 4,146,561.44 -7,095,025.28
Loss on bad debts of notes receivable 225,624,086.48 -179,981,579.03
Loss on bad debts of accounts receivable -453,885,249.57 -578,422,832.76
Total -224,114,601.65 -765,499,437.07
46. Assets impairment losses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Inventory falling price loss and
impairment loss of contract performance -1,666,825.32 -52,632,725.80
costs
Loss on impairment of goodwill -20,015,733.28
Other -3,315,747.32
Total -24,998,305.92 -52,632,725.80
47. Income from disposal of assets
Unit: yuan
Source of income from disposal of assets Amount incurred in current period Amount incurred in previous period
Income from disposal of non-current
143,437.75 -2,122,173.87
assets
Including: income from disposal of fixed
-113,948.48 -2,122,173.87
assets
Income from disposal of right-of-use
257,386.23
assets
48. Non-operating income
Unit: yuan
Amounts recorded in the non-
Amount incurred in current Amount incurred in previous
Item recurring gains and losses of
period period
the current period
Government subsidies 43,000.00
Liquidated damages and fines 2,661,012.65 15,853.31 2,661,012.65
117
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Gain on retirement of non-
33,060.29 33,060.29
current assets
Other 574,406.11 1,720,972.55 574,406.11
Total 3,268,479.05 1,779,825.86 3,268,479.05
Other description:
Amount incurred in Amount incurred Source and Asset/income
Item
current year in last year Basis related
Subsidies for early scrapping of
diesel vehicles under China III 13,000.00 Income related
vehicle emission standards
Corporate Culture Club awards and
30,000.00 Income related
subsidies
Total 43,000.00 — —
49. Non-operating expenditure
Unit: yuan
Amounts recorded in the non-
Amount incurred in current Amount incurred in previous
Item recurring gains and losses of
period period
the current period
External donations 3,734,913.97 2,000,000.00 3,734,913.97
Abnormal loss 506,839.36 350,752.22 506,839.36
Penalty expenditure 5,300.00 178,475.20 5,300.00
Loss on damage and scrap of
63,041.78 168,013.37 63,041.78
non-current assets
Other 1,033,183.71 1,514,224.96 1,033,183.71
Total 5,343,278.82 4,211,465.75 5,343,278.82
50. Income tax expenses
(1) Income tax expenses
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Current income tax expenses 253,156,740.77 341,789,501.27
Deferred income tax expenses -38,490,586.78 -157,812,003.31
Total 214,666,153.99 183,977,497.96
(2) Accounting profit and income tax expense adjustment process
Unit: yuan
Item Amount incurred in current period
Total profit 1,772,972,604.29
Income tax expenses calculated at the appropriate/applicable
265,945,890.64
tax rate
Impact of different tax rates applied on subsidiaries -6,238,450.28
Impact of income tax before adjustment 1,271,781.52
Impact of non-deductible costs, expenses and losses 6,629,081.51
Impact of temporary difference or deductible losses on
11,709,883.55
unrecognized deferred income tax assets in the current period
Profits and losses of cooperative enterprise or joint venture
77,201.49
accounted by equity method
Tax impact of additional deduction for research and
-50,745,074.98
development expenses (express with “-”)
Tax impact of additional deduction for fixed assets (express
-13,811,187.63
with “-”)
118
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2022 Full Annual Report
Other -172,971.83
Income tax expenses 214,666,153.99
51. Other comprehensive income
See the notes for details.
52. Cash flow statement items
(1) Other cash received related to operating activities
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Income from deposit interest 162,232,029.99 152,136,833.79
Government subsidies 94,665,016.15 59,051,409.96
Agent business 1,173,444.43 17,645,868.20
Imprest 3,448,325.00 5,429,032.71
Margin and deposit 30,208,569.09 21,136,563.04
Other payments 10,847,398.64 16,271,319.04
Total 302,574,783.30 271,671,026.74
(2) Other cash paid related to operating activities
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Period charge 2,472,346,407.79 2,043,557,267.21
Agent business 38,185,746.87 51,345,724.50
Margin and deposit 9,124,879.36 11,160,267.03
Deposit for L/C and acceptance bill 28,100,235.97 54,739,852.30
Imprest 3,431,848.41 1,154,242.51
Other 7,469,204.96 19,699,160.50
Total 2,558,658,323.36 2,181,656,514.05
(3) Other cash received related to financing activities
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Accounts receivable factoring income 1,012,732.06 30,694,588.74
Total 1,012,732.06 30,694,588.74
(4) Other cash paid related to financing activities
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Factoring refund with recourse 4,030,091.57
Rent 6,729,745.77 6,046,438.38
Share repurchase 199,995,742.59
Total 10,759,837.34 206,042,180.97
53. Further information on cash flow statement
(1) Further information on cash flow statement
Unit: yuan
Further information Current amount Last term amount
1. Reconciliation from net profits to cash flows from operating
119
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
activities
Net profit 1,558,306,450.30 1,348,791,422.70
Plus: Provision for impairment of assets 24,998,305.92 52,632,725.80
Credit impairment loss 224,114,601.65 765,499,437.07
Depreciation of fixed assets, oil and gas assets and productive
129,112,131.14 106,025,150.37
biological assets
Depreciation of Right-of-use assets 5,561,093.48 5,717,803.10
Amortization of intangible assets 13,484,372.99 13,348,356.24
Amortization of long-term deferred expenses 21,378,537.46 2,560,738.71
Loss on disposal of fixed assets, intangible assets and other
-143,437.75 2,122,173.87
long-term assets (gains expressed with “-”)
Loss on retirement of fixed assets (gains expressed with “-”) 29,981.49 168,013.37
Loss from fair value changes (gains expressed with “-”)
Financial expenses (gains expressed with “-”) 4,582,493.50 10,451,521.99
Investment losses (gains expressed with “-”) -98,961,069.15 -90,502,532.06
Decreased in deferred income tax assets (increase expressed
-54,463,308.92 -158,856,006.33
with “-”)
Increase in deferred income tax liabilities (decrease expressed
15,853,171.82 1,044,003.02
with “-”)
Decrease in inventories (increase expressed with “-”) 160,454,008.83 -434,882,037.88
Decrease in operating receivables (increase expressed with “-”) 59,527,120.84 -859,544,649.72
Increase in operating payables (decrease expressed with “-”) -119,048,149.58 600,801,099.08
Other
Net cash flow from operating activities 1,944,786,304.02 1,365,377,219.33
2. Significant investment and financing activities not involving cash
deposit and withdrawal
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets under financing lease
3. Net changes in cash and cash equivalents:
Ending balance of cash 5,196,414,341.74 3,719,988,820.35
Minus: Beginning balance of cash 3,719,988,820.35 3,886,096,513.56
Plus: Beginning balance of cash equivalents
Minus: Ending balance of cash equivalents
Net increase of cash and cash equivalents 1,476,425,521.39 -166,107,693.21
(2) Composition of cash and cash equivalents
Unit: yuan
Item Ending balance Beginning balance
I. Cash 5,196,414,341.74 3,719,988,820.35
Including: cash on hand 85,806.05 80,944.99
Bank deposit readily available for
5,194,874,841.18 3,718,304,060.33
payment
Other monetary capital readily available
1,453,694.51 1,603,815.03
for payment
III. Balance of cash and cash equivalents
5,196,414,341.74 3,719,988,820.35
at end of period
54. Notes to items in statement of owner's equity
State the name of “other” items and the amount of adjustment to the ending balance of previous year:
55. Assets with ownership or use rights restricted
Unit: yuan
120
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Item Ending book value Causes for restriction
Letter of guarantee and bill acceptance
Monetary capital 96,335,329.20
security deposit
Monetary capital 13,000.00 ETC deposit
Total 96,348,329.20
56. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: yuan
Ending balance in foreign Ending balance converted to
Item Conversion exchange rate
currency RMB
Monetary capital
Including: USD 2,584,479.12 6.9646 17,999,863.28
Euro 11.92 7.4229 88.48
AUD 1,275.11 4.7138 6,010.61
Accounts receivable
Including: USD 3,392,740.30 6.9646 23,629,079.09
Advance from customers
Including: AUD 179,874.81 4.7138 847,893.88
Euro 11,213.96 7.4229 83,240.10
57. Government subsidies
(1) Basic information of government subsidies
Unit: yuan
Amount recorded in current
Type Amount Presented item
profit and loss
Financial support funds for
Other income 52,042,148.00
enterprise cultivation 52,042,148.00
Embedded software tax rebate 45,959,892.74 Other income 45,959,892.74
Special financial funds 10,005,040.00 Other income 10,005,040.00
Subsidies for factories,
infrastructure, equipment, etc. Deferred income
in Chengnan New District 9,247,055.87
Subsidies for factories,
infrastructure, equipment, etc. Other income 371,884.13
in Chengnan New District 371,884.13
Intelligent manufacturing,
integrated standardization and Other income 6,497,000.00
new mode application project 6,497,000.00
Special fund for industrial
Other income 3,626,125.00
development 3,626,125.00
Job subsidies and social
Other income 3,508,713.85
insurance subsidies 3,508,713.85
Performance award of Shanghai
Hongkou District Finance Other income
Bureau 3,010,000.00 3,010,000.00
Subsidies for R&D investment 2,788,200.00 Other income 2,788,200.00
Future factory project 1,118,255.66 Deferred income
Future factory project 131,744.34 Other income 131,744.34
Training allowance 706,097.00 Other income 706,097.00
Service charge refund 541,758.65 Other income 541,758.65
Patent reward fund 367,040.00 Other income 367,040.00
121
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2022 Full Annual Report
VAT exemption or reduction 10,643.41 Other income 10,643.41
Other subsidies 708,703.65 Other income 708,703.65
Total 140,640,302.30 — 130,274,990.77
VIII. Consolidation scope changes
1. Change of merger scope for other reasons
In June 22, 2022, the Company invested and established Hangzhou Jinhe Electric Appliances Co., Ltd. with the registered
capital of RMB 10 million and shareholding ratio of 100%. Such company belongs to the wholesale and retail industry and
mainly engages in the sales of kitchen appliance products of the Company. Now, its registered c apital has been paid in and the
company has been put into operation.
IX. Interests in other entities
1. Interests in a subsidiary
(1) Composition of enterprise group
Main Registration Shareholding ratio Way of
Subsidiary name Business nature
operation site place Direct Indirect obtaining
Business
Beijing ROBAM Sales of kitchen
combination
Electric Appliance Beijing Beijing electric appliance 100.00%
under common
Sales Co., Ltd. products
control
Business
Shanghai ROBAM Sales of kitchen
combination
Electric Appliance Shanghai Shanghai electric appliance 100.00%
under common
Sales Co., Ltd. products
control
Sales of kitchen
Hangzhou Mingqi Acquisition by
Hangzhou Hangzhou electric appliance 100.00%
Electric Co., Ltd. establishment
products
Dize Home
Sales of kitchen
Appliances Trading Acquisition by
Shanghai Shanghai electric appliance 51.00%
(Shanghai) Co., investment
products
Ltd.
Business
Shengzhou Kinde Production and sales
combination not
Intelligent Kitchen Shengzhou Shengzhou of kitchen electric 51.00%
under common
Electric Co., Ltd. appliance products
control
Hangzhou
ROBAM Fuchuang Assets and
Acquisition by
Investment Hangzhou Hangzhou investment 100.00%
establishment
Management Co., management
Ltd.
Zhejiang Cooking
Intelligent kitchen Acquisition by
Future Technology Shengzhou Shengzhou 32.13%
design establishment
Co., Ltd.
Hangzhou Jinhe Sales of kitchen
Acquisition by
Electric Appliances Hangzhou Hangzhou electric appliance 100.00%
establishment
Co., Ltd products
Note: The basis that the Company holds half or less of the voting rights of Zhejiang Cooking Future Technology Co., Ltd., but
still controls Zhejiang Cooking Future Technology Co., Ltd. basis: since the Company forms a control relationship with
Shengzhou Kinde, it also forms a control relationship with its holding subsidiary Zhejiang Cooking Future Technology Co.,
Ltd. On January 6, 2022, the Company's subsidiary, Shengzhou Kinde Intelligent Kitchen Electric Co., Ltd. signed the Equity
Transfer Contract with Gongqingcheng Binglan Investment Partnership (limited partnership) , to stipulate that Shengzhou
Kinde Intelligent Kitchen Electric Co., Ltd. will transfer the subscribed 7% equity of Zhejiang Cooking Future Technology
Co., Ltd. to Gongqingcheng Binglan Investment Partnership (limited partnership) to change its shareholding ratio from 70%
to 63%, and change the shareholding ratio of the Company from 35.70% to 32.13%.
122
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(2) Important non-wholly owned subsidiary
Unit: yuan
Current profits and Current dividends
Minority shareholding Ending balance of
Subsidiary name losses attributable to declared to minority
ratio minority equity
minority shareholders shareholders
Shengzhou Kinde
Intelligent Kitchen 49.00% -9,994,106.97 9,800,000.00 118,293,284.50
Electric Co., Ltd.
Zhejiang Cooking
Future Technology Co., 37.00% -4,104,395.68 10,829,229.79
Ltd.
(3) Main financial information of important non-wholly owned subsidiaries
Unit: yuan
Ending balance Beginning balance
Subsidiar Non- Non- Non- Non-
y name Current Total Current Total Current Total Current Total
current current current current
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Shengzho
u Kinde
Intelligen 152,256, 348,855, 501,112, 203,576, 45,292,1 248,868,4 215,540, 309,621, 525,162, 204,306, 35,111,7 239,417,8
t Kitchen 797.00 702.41 499.41 227.80 75.50 03.30 936.45 535.16 471.61 095.17 47.76 42.93
Electric
Co., Ltd.
Zhejiang
Cooking
Future 25,723,8 6,669,99 32,393,8 3,125,65 3,125,658 18,295,6 1,856,30 20,151,9 4,790,78 4,790,781
Technolo 50.48 6.33 46.81 8.21 .21 24.97 6.24 31.21 1.30 .30
gy Co.,
Ltd.
Unit: yuan
Amount incurred in current period Amount incurred in previous period
Subsidiary Total Cash flow Total Cash flow
name Operating Operating
Net profit comprehensive from financing Net profit comprehensive from financing
income income
income activities income activities
Shengzhou
Kinde
Intelligent 170,999,666.6 - - - 279,090,651.5
37,631,627.30 37,631,627.30 50,456,257.24
Kitchen 9 24,500,532.58 24,500,532.58 53,403,723.94 0
Electric Co.,
Ltd.
Zhejiang
Cooking
- - - -
Future 1,291,219.22 360,328.16 -8,887,591.74 -8,887,591.74
11,092,961.31 11,092,961.31 19,686,152.21 11,991,748.70
Technology
Co., Ltd.
2. Equity in joint venture arrangement or joint venture
(1) Unimportant cooperative enterprises or joint ventures
Shareholding ratio Accounting
treatment
Name of
method of
cooperative Main operation Registration
Business nature investment in
enterprise or site place Direct Indirect cooperative
joint venture
enterprises or
joint ventures
De Dietrich
Trade Sales of kitchen
Shanghai Shanghai 51.00% Equity method
(Shanghai) Co., appliances
Ltd.
Zhejiang Hangzhou Hangzhou Retail industry 40.00% Equity method
123
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Tingshuo Brand
Operation
Management
Co., Ltd.
Shaoxing
Shuaige Kitchen Manufacture of
and Bathroom Shaoxing City Shaoxing City kitchen 20.40% Equity method
Technology Co., appliances
Ltd.
(2) Summary of financial information of unimportant cooperative enterprises and joint ventures
Unit: yuan
Ending balance/amount incurred in Beginning balance/amount incurred in
current period previous period
Cooperative enterprise:
Total book value of investment 3,824,460.03 3,661,700.03
Total number of following items by
shareholding ratio
- Net profit 162,760.00 208,930.44
- Total comprehensive income 162,760.00 208,930.44
Joint venture:
Total book value of investment 4,894,045.59 1,743,429.88
Total number of following items by
shareholding ratio
- Net profit -989,384.29 -256,570.12
- Total comprehensive income -989,384.29 -256,570.12
X. Risks associated with financial instruments
The main financial instruments of the Company include accounts receivable, accounts payable, etc. The detailed description
of the financial instruments is shown in Note VI. The risks associated with these financial instruments and the risk
management policies adopted by the Company to mitigate these risks are described below. The management of the Company
shall manage and monitor these risk exposures to ensure that the above risks are controlled within the limited scope.
1. The Company's various risk management objectives and policies are as follows:
The Company’s risk management is to strike an appropriate balance between risks and benefits, mini mize the negative impact
of risks on the Company's business performance and maximize the interests of shareholders and other equity investors. Based
on this risk management objective, the basic strategy of the Company's risk management is to determine and analyze various
risks faced by the Company, establish an appropriate bottom line for risk tolerance, make risk management and timely and
reliably supervise various risks to control the risks within the limited scope.
● Market risk - price risk
The Company sells the products at market prices and are therefore subject to fluctuations in these prices.
● Credit risk
The largest credit risk exposure that may cause financial losses of the Company on December 31, 2022 mainly comes from
the loss of financial assets of the Company caused by the failure of the other party to fulfill its obligations, including the book
value of financial assets recognized in the consolidated balance sheet.
In order to reduce credit risks, the Company shall assign special personnel to determine the credit limit, conduct credit
examination and approval, and implement other monitoring procedures to ensure that necessary measures are taken to recover
overdue claims. Moreover, the Company shall review the recovery of each single re ceivable on each balance sheet date to
ensure that adequate bad debt provisions are withdrawn for unrecoverable amounts. Therefore, the Company's management
believes that the Company's credit risk has been greatly reduced.
The Company's working capital is deposited in banks with high credit rating, so the credit risk of working capital is low.
There is no significant credit concentration risk due to the Company's risk exposure to multiple parties and customers.
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The Company has adopted the necessary policies to ensure that all sales customers have good credit records. The Company
has no significant credit concentration risk.
Total amount of the top 5 accounts receivable: RMB 1,419,688,838.84.
Total amount of the top 5 other receivables: RMB 56,109,793.65.
● Liquidity risk:
The risk that the Company is unable to perform its financial obligations at maturity. The Company manages its liquidity risk
by ensuring that it has sufficient liquidity to meet maturing obligations without causing unacceptable losses or damag e to the
credibility of the business. The management of the Company has conducted a detailed inspection on the working capital of the
Company and regularly analyzed the debt structure, term and bank line of credit to ensure sufficient funds. The conclusion is
that the Company has sufficient funds to meet the needs of the Company's short -term debts and capital expenditures. The
financial assets and financial liabilities held by the Company are analyzed as follows according to the maturity of
undiscounted remaining contractual obligations:
Amount on December 31, 2022:
More than five
Item Within one year One to two years Two to five years Total
years
Financial assets
Monetary capital 5,292,762,670.94 5,292,762,670.94
Trading financial
2,511,844,508.00 2,511,844,508.00
assets
Notes receivable 881,773,341.71 881,773,341.71
Accounts receivable 1,689,606,828.94 1,689,606,828.94
Other receivables 80,429,057.84 80,429,057.84
Financial liabilities
Short-term
51,723,429.99 51,723,429.99
borrowing
Notes payable 872,550,306.86 872,550,306.86
Accounts payable 2,418,755,167.31 2,418,755,167.31
Other payables 281,878,208.25 281,878,208.25
Payroll payable 153,942,329.88 153,942,329.88
Other current
120,126,501.73 120,126,501.73
liabilities
Non-current
liabilities due within 5,720,175.21 5,720,175.21
a year
Lease liabilities 4,926,795.88 8,802,594.45 4,859,576.34 18,588,966.67
● Sensitivity analysis of foreign exchange risk
The Company's exchange rate risk is mainly related to US dollar, Euro, Australian dollar and other currencies. The foreign
exchange risk borne by the Company is mainly related to USD (which shall be modified according to the actual situation), and
the main business activities of the Company are denominated and settled in RMB. As of December 31, 2022, the Company's
assets and liabilities were RMB balance, except the foreign currency balance of the assets and liabilities in Note “Foreign
currency monetary items”. The foreign exchange risks arising from the assets and liabilities of such foreign currency balance
may have an impact on the Company's business performance.
The Company pays close attention to the exchange rate movement on its foreign exchange risks. and has not taken any
measures to avoid foreign exchange risks.
XI. Fair value disclosure
1. Ending fair value of assets and liabilities measured with fair value
Unit: yuan
Ending fair value
Item Measurement of fair
Measurement of fair Measurement of fair
value at the second Total
value at the first level value at the third level
level
I. Continuous fair value
-- -- -- --
measurement
(I) Trading financial
2,511,844,508.00 2,511,844,508.00
assets
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1. Financial assets
measured with fair
value and with the 2,511,844,508.00 2,511,844,508.00
changes included in
current profit and loss
(2) Equity instrument
2,116,023.22 2,116,023.22
investments
Total assets
continuously measured 2,513,960,531.22 2,513,960,531.22
at fair value
II. Non-continuous fair
-- -- -- --
value measurement
2. Continuous and non-continuous measurement items of fair value at third level, qualitative and
quantitative information on valuation techniques adopted and important parameters
Relationship
Significant
December 31, 2022 between
Item Valuation technique unobserva
Fair value unobservable value
ble value
and fair value
Bank financial Best estimate of fair Investment
2,511,844,508.00 —
products value cost
Other equity
Best estimate of fair Investment
instrument 2,116,023.22 —
value cost
investments
Note: Due to the deterioration of the business environment, business conditions and financial conditions of the invested
enterprise Suzhou Industrial Park Ruican Investment Enterprise (limited partnership), the Company takes zero yuan as a
reasonable estimate of the fair value for measurement.
XII. Related parties and related transactions
1. Parent company of the Company
Shareholding ratio Voting right ratio
Parent company of the parent of the parent
Registration place Business nature Registered capital
name company in the company in the
Company Company
Hangzhou ROBAM Investment and
Hangzhou,
Industrial Group industrial RMB 60 million 49.68% 49.68%
Zhejiang
Co., Ltd. management
The ultimate controlling party of the Company: Ren Jianhua
2. Subsidiaries of the Company
See the Notes for the details of the Company's subsidiaries.
3. Cooperative enterprises and joint ventures
See the note for important cooperative enterprises or joint ventures of the Company.
Other cooperative enterprises or joint ventures that made related party transactions with the Company in the current period, or
formed the balance of related party transactions with the Company in the previous periods are as follows:
Name of cooperative enterprise or joint venture Relationship with the Company
Hangzhou Amblem Kitchenware Co., Ltd. Controlled by the same final controller
Hangzhou ROBAM Gas Station Co., Ltd. Controlled by the same final controller
Hangzhou Nbond Nonwoven Co., Ltd. Controlled by the same final controller
Hangzhou Yuhang Matt Spray Painting Factory Other related parties
Garden Hotel Hangzhou Other related parties
Hangzhou Bonyee Daily Necessity Technology Co., Ltd. Controlled by the same final controller
Shaoxing Kinde Electric Appliance Co., Ltd. Other related parties
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Hangzhou Guoguang Touring Commodity Co., Ltd. Controlled by the same final controller
Hangzhou Seazons Health Care Products Co., Ltd. Controlled by the same final controller
Hangzhou Linping ROBAM Charity Foundation Other related parties
4. Related transaction
(1) Related transaction of purchases and sales of goods, provision and acceptance of services
Purchase of goods/acceptance of services
Unit: yuan
Whether the
Related transaction Amount incurred in Approved Amount incurred in
Related party transaction quota is
content current period transaction quota previous period
exceeded
Hangzhou Amblem
Kitchenware Co., Product purchase 28,302,583.22 No 1,846,329.38
Ltd.
Hangzhou Yuhang
Matt Spray Labor receiving 9,589,975.85 No 9,560,985.98
Painting Factory
Hangzhou Seazons
Health Care Product purchase 2,704,152.47 No 6,339,452.12
Products Co., Ltd.
Shaoxing Shuaige
Kitchen and
Bathroom Product purchase 1,983,294.00 No
Technology Co.,
Ltd.
Hangzhou ROBAM
Gas Station Co., Product purchase 995,343.75 No 854,444.59
Ltd.
Zhejiang Tingshuo
Brand Operation
Labor receiving 400,760.00 No
Management Co.,
Ltd.
Hangzhou
Guoguang Touring
Product purchase 106,473.99 No 94,897.35
Commodity Co.,
Ltd.
Hangzhou Nbond
Nonwoven Co., Product purchase 95,302.65 No 86,436.20
Ltd.
Hangzhou Bonyee
Daily Necessity
Product purchase 8,728.42 No 424.78
Technology Co.,
Ltd.
Garden Hotel
Labor receiving No 201,474.34
Hangzhou
Total — 44,186,614.35 18,984,444.74
Selling commodities/offering labor
Unit: yuan
Amount incurred in current Amount incurred in previous
Related party Related transaction content
period period
Hangzhou Amblem
Selling goods 5,814,674.29 11,650,995.14
Kitchenware Co., Ltd.
Hangzhou Linping ROBAM
Selling goods 3,914,955.70
Charity Foundation
De Dietrich Trade (Shanghai) Selling goods 1,326,580.82 1,190,969.50
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Co., Ltd.
Hangzhou Nbond Nonwoven
Selling goods 10,746.90
Co., Ltd.
Total — 11,066,957.71 12,841,964.64
(2) Related-party lease
The Company as the lessor:
Unit: yuan
Lease income recognized in Lease income recognized in
Name of lessee Type of leased assets
the current period the previous period
Hangzhou ROBAM Industrial
House 28,800.00 28,800.00
Group Co., Ltd.
The Company as the lessee:
Unit: yuan
Variable lease
Simplified
payments not
treatment of rental Interest expenses
included in the Increased right-of-
costs for short-term Rent paid incurred on lease
measurement of use assets
lease and low-value liabilities
Type of lease liabilities (if
Name of asset lease
leased applicable)
lessor
assets Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount
incurred incurred incurred incurred incurred incurred incurred incurred incurred incurred
in in in in in in in in in in
current previous current previous current previous current previous current previous
period period period period period period period period period period
Hangzho
u
ROBAM 550,024. 550,024.
House
Industria 57 57
l Group
Co., Ltd.
(3) Key management personnel remuneration
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Total remuneration 14,242,333.46 11,350,618.33
5. Accounts receivable and payable by related parties
(1) Receivables
Unit: yuan
Ending balance Beginning balance
Item name Related party Provision for Provision for bad
Book balance Book balance
bad debt debt
Hangzhou Amblem
Accounts
Kitchenware Co., 1,432,274.00
receivable
Ltd.
Hangzhou Seazons
Advance to
Health Care Products 3,769.89
supplier
Co., Ltd.
Total 1,436,043.89
(2) Payables
Unit: yuan
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Item name Related party Ending book balance Beginning book balance
Hangzhou Yuhang Matt Spray
Accounts payable 3,043,849.87 3,543,430.78
Painting Factory
Hangzhou ROBAM Gas Station
Accounts payable 2,548,095.18 1,723,356.74
Co., Ltd.
Hangzhou Guoguang Touring
Accounts payable 6,963.19 23,605.20
Commodity Co., Ltd.
Hangzhou Amblem Kitchenware
Accounts payable 4,386,391.83
Co., Ltd.
Shaoxing Shuaige Kitchen and
Accounts payable 298,021.70
Bathroom Technology Co., Ltd.
Hangzhou Yuhang Matt Spray
Other payables 200,000.00 200,000.00
Painting Factory
Hangzhou Guoguang Touring
Other payables 2,000.00 2,000.00
Commodity Co., Ltd.
Total 10,485,321.77 5,492,392.72
XIII. Share-based payment
1. Overall status of share-based payment
Applicable Not applicable
2. Equity-settled share-based payments
Applicable Not applicable
See XVI. Other important issues, stock option incentive plan (2) Equity-settled share-based payments
3. Share-based payment settled by cash
□ Applicable Not applicable
4. Modification and termination of share-based payment
5. Other
XIV. Commitment and contingencies
1. Important commitment issues
Important commitments on balance sheet date
The Company has committed to invest RMB 4 million in Tingshuo Brand, an associated company of the Company. At present,
RMB 2 million has been paid in, accounting for 40% of the equity, and RMB 2 million has not been paid. Except for the
above commitments, the Company has no other major commitments as of the date of presen tation of the financial statements.
2. Contingencies
(1) Important contingencies on balance sheet date
The Company had no significant contingencies to be disclosed as of December 31, 2022.
(2) Explanation even if the Company has no important contingencies to be disclosed
The Company has no important contingencies to be disclosed.
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3. Other
XV. Post-balance sheet events
1. Important non-adjustment items
(1) 2023 stock option incentive plan
On April 25, 2023, the 14th meeting of the Fifth Board of Directors of the Company deliber ated and approved the Company's
“Proposal on 2023 Stock Option Incentive Plan (draft) of the Company and its Abstract ”. The incentive plan mainly takes the
operating income from 2023 to 2025 as the performance evaluation target, and provides stock option i ncentive to middle
management and core technology (business) backbones working in the Company (including subsidiaries). The proposal still
shall be subject to the deliberation and approval by the Company's annual general meeting of shareholders in 2022.
(2) Cancellation of partial stock options in the 2021 stock option incentive plan
On April 25, 2023, the 14thmeeting of the Fifth Board of Directors of the Company deliberated and approved the “Proposal
on Cancellation of the 2021 Stock Option Incentive Plan for Failure to Meet the Exercise Conditions during the Second
Exercise Period” and the “Proposal on the Cancellation of Partial Stock Options in the 2021 Stock Option Incentive Plan ”. As
a failure of meeting the exercise conditions of the second exercise period of stock options in 2021, the Company will cancel
831,000 stock options held by the incentive objects that have been granted in the second exercise period but do not meet the
exercise conditions; As 13 incentive objects under the Company's 2021 Stock Op tion Incentive Plan no longer meet the
incentive conditions due to their resignation, thus the Company will cancel 114,000 stock options granted to but not exercise d
by the above 13 incentive objects, totaling 945,000 stock options.
(3) Cancellation of partial stock options in the 2022 stock option incentive plan
On April 25, 2023, the 14th meeting of the Fifth Board of Directors of the Company deliberated and approved the “Proposal
on Cancellation of the 2022 Stock Option Incentive Plan for Failure to Meet the Exercise Conditions during the First Exercise
Period” and the “Proposal on the Cancellation of Partial Stock Options in the 2022 Stock Option Incentive Plan. ” As a failure
of meeting the exercise conditions of the first exercise period of stock options in 2022 , the Company will cancel 1,359,000
stock options held by the incentive objects that have been granted in the first exercise period but do not meet the e xercise
conditions; As 13 incentive objects under the Company's 2022 Stock Option Incentive Plan no longer meet the incentive
conditions due to their resignation, thus the Company will cancel 240,000 stock options granted to but not exercised by the
above 13 incentive objects; As 1 incentive object under the Company's 2022 Stock Option Incentive Plan no longer meets the
incentive conditions due to his/her death, thus the Company will cancel 10,000 stock options granted to but not exercised by
the above 1 incentive object, totaling 1,609,000 stock options;
(4) Post-term debt restructuring matters
As of the reporting date, the newly signed accounts receivable debt repayment agreement of the Company amounted to RMB
17,185,500, including RMB 6,191,400 for which online signing and delivery procedures have been completed; The amount of
debt repayment agreement signed in 2022 for which online signing and delivery procedures has been completed was RMB
3,453,100.
2. Profit distribution
Item Amount
Profit or dividend to be distributed 472,047,458.00
On April 25, 2023, according to the “Proposal on 2022 Annual Profit Distribution Plan” deliberated and adopted by the 14th
meeting of the fifth Board of Directors of the Company, based on the total share capital of 944,094,916 (the existing total
share capital is 949,024,050 shares, excluding the repurchased 4,929,134 shares), the Company i ntends to pay a cash dividend
of RMB 5 (tax-inclusive) per 10 shares to all shareholders, for a total of RMB 472,047,458.00. The proposal still shall be
subject to the deliberation and approval by the Company's annual general meeting of shareholders in 202 2.
Except for the aforementioned post balance sheet events, the Company has no other major post -balance sheet events.
XVI. Other important issues
1. Stock option incentive plan
(1) Overall status of share-based payment
Item Conditions
Total amount of equity instruments granted by the Company in this year 4,780,000.00
Total amount of equity instruments exercised by the Company in this year
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Item Conditions
Total amount of the Company's equity instruments invalidate in this year 1,264,000.00
The exercise price of the 2021 stock
option incentive plan is RMB 36.57 per
Range of the exercise price of the Company's stock options outstanding at the end share, with a remaining term of 1-2 years;
of the year and the remaining term of the contract The exercise price of the 2022 stock
option incentive plan is RMB 29.27 per
share, with a remaining term of 1-3 years.
Range of the exercise price of the Company's other equity instruments
outstanding at the end of the year and the remaining term of the contract
1) 2021 stock option incentive plan
On April 14, 2021, the Company held the 4thmeeting of the Fifth Board of Directors. The meeting deliberated and approved
“Business Partner Shareholding Plan (Draft)”, “2021 Stock Option Incentive Plan (Draft)” and other relevant proposals, and
decided to take the operating income and non-net profit after deduction belonging to the parent company from 2021 to 2023
as the main performance assessment objectives, implemented the business partner shareholding plan for the core managers in
the Company (including its 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; implemented the stock option incentive for the Company's middle management and core technology (business)
backbones, totaling 142 people.
On April 30, 2021, the first extraordinary shareholders' meeting of the Company in 2021 deliberated and approved the above
proposals, and determined May 10, 2021 as the first grant date of stock options in this incentive plan. In 2021, 3.04 million
stock options was actually granted to 138 people.
On April 19, 2022, the 10th meeting of the Fifth Board of Directors and the 9 th meeting of the Fifth Board of Supervisors of
the Company deliberated and approved the “Proposal on Cancellation of the 2021 Stock Option Incentive Plan for Failure to
Meet the Exercise Conditions during the First Exercise Period” and the “Proposal on the Cancellation of Partial Stock Options
in the 2021 Stock Option Incentive Plan” and other proposals. Due to the failure to meet the exercise conditions of stock
options in 2021 during the first exercise period, the Company will cancel 1,184,000 stock options held by the incentive
objects that have been granted in the first exercise period but do not meet the exercise conditions; As 4 incentive objects
under the Company's 2021 Stock Option Incentive Plan no longer meet the incentive conditions due to their resi gnation, thus
the Company will cancel 80,000 stock options granted to but not exercised by the above 4 incentive objects. On April 26,
2022, after verification and confirmation by Shenzhen Branch of China Securities Depository and Clearing Corporation
Limited, the cancellation of the aforementioned 1,264,000 stock options has been completed.
2) 2022 stock option incentive plan
On March 31, 2022, the 9th meeting of the Fifth Board of Directors of the Company deliberated and approved the Company's
“2022 Stock Option Incentive Plan (draft)”. The incentive plan mainly takes the operating income from 2022 to 2024 as the
performance evaluation target, and provides stock option incentive to 285 middle management and core technology (business)
backbones working in the Company (including subsidiaries), with an exercise price of 29.27 yuan/share. The validity period
of stock options in this incentive plan shall be from the of grant of stock options to the date of full exercise or cancellat ion of
stock options granted to the incentive object, with a maximum of 48 months. The vesting period of the stock options in this
incentive plan shall be 12 months, 24 months and 36 months respectively from the corresponding grant date of the stock
options, and the exercise ratio of each exercise period shall be 30%, 30% and 40% respectively.
Assuming that the incentive objects of the granted stock option exercise all of their options during each exercise period, th e
cost amortization of the granted stock option from 2022 to 2025 is as follows:
Quantity of stock Total expenses to be 2022 (10,000 2023 (10,000 2024 (10,000 2025 (10,000
option (10,000) amortized (10,000 yuan) yuan) yuan) yuan) yuan)
481.00 2,031.74 757.58 746.03 437.23 90.91
On April 21, 2022, the Company held the first extraordinary general meeting of shareholders to deliberate and adopt the
“Proposal on 2022 Stock Option Incentive Plan (draft) of the Company and its Abstract ” and other relevant proposals On May
10, 2022, the Company's 11th meeting of the fifth Board of Directors deliberated and adopted the “Proposal on Granting
Stock Options to Incentive Objects”. The stock option incentive is actually granted to 282 person on May 10, 2022, with the
quantity of 4.78 million, exercise price of RMB 29.27 per share. On May 26, 2022, the registration of stock option grants was
completed.
(2) Equity-settled share-based payments
Item Conditions
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Item Conditions
The Company evaluates the fair value of
Method for determining the fair value of equity instruments the stock options with the internationally
on the grant date recognized BlackScholes option pricing
model
Basis for the determination of the number of viable equity Optimum estimation for the number of
instruments viable equity instruments
Reasons for significant differences between the estimates of N/A
this year and the previous year
Accumulated amount of equity-settled share-based payments 7,854,225.96
recorded in capital reserves
Total amount of expenses recognized by equity-settled share- 4,735,460.48
based payments in this year
2. Corporate debt restructuring matters
As of December 31, 2022, the Company has signed the following project mortgage property agreements and completed the
online signing procedures of the property as follows:
Including: those completing the Amount of those not
Amount of debt agreement online signing procedures and completing the online
Item
signed delivery procedures signing procedures and
Fees for procedures delivery procedures
Real estate customers (38) 164,232,192.36 50,337,125.23 113,895,067.13
Total 164,232,192.36 50,337,125.23 113,895,067.13
The total balance of accounts receivable involved in the project mortgage property agreements signed between the Company
and the aforementioned real estate customers is RMB 164,232,200, of which RMB 50,337,100 has been completed with
online signing or delivery procedures, the recognition of claims receivable of which has been terminated. The fair value of the
mortgaged property at the time of debt restructuring is reported in other non -current assets. The fair value of the property is
RMB 51,514,000, which was confirmed through public market inquiry. The Company pays the difference of RMB 1,176,900
in cash, the debt restructuring matters do not generate any restructuring gains or losses at the time of restructuring; The
remaining RMB 113,895,100 has not yet been completed with online registration of the house and the Company has not
terminated the recognition of claims receivable, and make the provision for bad debts based on an expected credit loss rate o f
20%.
The Company had no other important matters to be disclosed as of December 31, 2022.
XVII. Notes on main items of parent company's financial statement
1. Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: yuan
Ending balance Beginning balance
Book balance Provision for bad debt Book balance Provision for bad debt
Category
Accruing Book value Accruing Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts
receivable of
1,543,95 972,062,39 571,893,59 628,127,24 551,636,28 76,490,961.
provision for 58.11% 62.96% 29.39% 87.82%
5,986.32 5.33 0.99 8.06 6.07 99
bad debt by
single item
Where:
Accounts
receivable of
1,112,93 64,280,210. 1,048,649,9 1,509,321,5 89,120,674. 1,420,200,8
provision for 41.89% 5.78% 70.61% 5.90%
0,148.56 58 37.98 39.72 12 65.60
bad debt by
combination
Where:
Combination
99,792,7 99,792,768. 13,799,399. 13,799,399.
of related 3.76% 0.64%
68.36 36 00 00
party
Accounts 1,013,13 38.13% 64,280,210. 6.34% 948,857,16 1,495,522,1 69.97% 89,120,674. 5.96% 1,406,401,4
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receivable of 7,380.20 58 9.62 40.72 12 66.60
provision for
bad debt by
expected
credit loss
combination
based on
aging features
2,656,88 1,036,342,6 1,620,543,5 2,137,448,7 640,756,96 1,496,691,8
Total 100.00% 39.01% 100.00% 29.98%
6,134.88 05.91 28.97 87.78 0.19 27.59
Provision for bad debt by single item:
Unit: yuan
Ending balance
Name
Book balance Provision for bad debt Accruing proportion Reasons for provision
Unit 1 657,344,204.78 657,344,204.78 100.00% Difficult to recover
Unit 2 585,673,768.95 175,702,130.69 30.00% Debt overdue
Unit 3 112,811,043.19 42,342,003.78 37.53% Debt overdue
Unit 4 27,754,259.57 18,956,340.20 68.30% Debt default
Unit 5 24,817,347.78 4,963,469.56 20.00% Debt overdue
Unit 6 21,370,090.54 14,959,063.38 70.00% Debt default
Unit 7 20,263,294.09 5,751,727.45 28.38% Debt overdue
Unit 8 16,210,905.78 11,325,134.05 69.86% Debt default
Unit 9 14,139,851.56 8,965,986.59 63.41% Debt default
Unit 10 10,185,685.90 2,157,682.25 21.18% Debt overdue
Unit 11 9,475,265.17 6,632,685.62 70.00% Debt default
Unit 12 9,181,060.96 6,426,742.67 70.00% Debt default
Unit 13 8,440,716.52 4,288,717.32 50.81% Debt default
Unit 14 8,009,318.82 2,345,903.11 29.29% Debt overdue
Unit 15 4,025,730.93 2,818,011.65 70.00% Debt default
It is expected that there
Unit 16 14,253,441.78 7,082,592.23 49.69%
is recovery risk
Total 1,543,955,986.32 972,062,395.33
Provision for bad debt by combination: accounts receivable of provision for bad debt by expected credit loss combination
based on aging features
Unit: yuan
Ending balance
Name
Book balance Provision for bad debt Accruing proportion
Within 1 year 876,938,472.66 43,846,923.63 5.00%
1~2 years 106,716,453.33 10,671,645.33 10.00%
2~3 years 20,374,364.02 4,074,872.80 20.00%
3~4 years 5,916,513.91 2,958,256.96 50.00%
4~5 years 2,315,322.08 1,852,257.66 80.00%
More than 5 years 876,254.20 876,254.20 100.00%
Total 1,013,137,380.20 64,280,210.58
Description of the basis for determining the combination:
Provision for bad debt by combination: accounts receivable of provision for bad debt by combination of related parties
Unit: yuan
Ending balance
Name
Book balance Provision for bad debt Accruing proportion
Combination of related party 99,792,768.36
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Total 99,792,768.36
Description of the basis for determining the combination:
If the bad debt provision of accounts receivable is withdrawn according to the general model of expected credit loss, please
refer to the disclosure method of other receivables to disclose the relevant information of bad debt provision:
□ Applicable Not applicable
Disclosure by aging
Unit: yuan
Aging Book balance
Within 1 year (including 1 year) 1,304,372,596.67
Within 1 year (including 1 year) 1,304,372,596.67
1~2 years 1,288,794,867.92
2~3 years 51,406,707.51
More than 3 years 12,311,962.78
3~4 years 7,674,961.53
4~5 years 3,585,776.77
More than 5 years 1,051,224.48
Total 2,656,886,134.88
(2) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
Changes in amount in current period
Category Beginning balance Recovered or Canceled after Ot Ending balance
Provision
reversed verification her
Provision for
bad debt of
640,756,960.19 420,476,255.80 24,667,546.54 223,063.54 1,036,342,605.91
accounts
receivable
Total 640,756,960.19 420,476,255.80 24,667,546.54 223,063.54 1,036,342,605.91
(3) Receivables with top 5 ending balances by debtor
Unit: yuan
Proportion in total ending
Ending balance of accounts Ending balance of bad debt
Unit name balance of accounts
receivable provision
receivable
Unit 1 585,494,572.95 22.04% 175,648,371.89
Unit 2 452,376,997.98 17.03% 452,376,997.98
Unit 3 200,404,163.35 7.54% 10,020,208.17
Unit 4 95,125,955.20 3.58% 95,125,955.20
Unit 5 62,543,420.42 2.35% 62,543,420.42
Total 1,395,945,109.90 52.54%
(4) Amount of assets and liabilities formed by transferring accounts receivable and continuing
involvement
Asset item Year-end balance Liability item Year-end balance
Accounts receivable with
573,429.99 Short-term borrowing 573,429.99
recourse factoring
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2022 Full Annual Report
2. Other receivables
Unit: yuan
Item Ending balance Beginning balance
Dividends receivable 10,200,000.00
Other receivables 73,700,676.77 66,149,239.78
Total 83,900,676.77 66,149,239.78
(1) Dividends receivable
1) Classification of dividends receivable
Unit: yuan
Project (or investee) Ending balance Beginning balance
Shengzhou Kinde Intelligent Kitchen
10,200,000.00
Electric Co., Ltd.
Total 10,200,000.00
(2) Other receivables
1) Other receivables classified by nature
Unit: yuan
Nature of payment Ending book balance Beginning book balance
Collection by third party 50,695,825.81 39,389,486.99
Deposit and margin 30,213,932.48 41,547,121.13
Associated contact 4,064,000.00 4,064,000.00
Withheld amount 4,337,682.15 2,646,050.39
Imprest 1,972,794.63 966,513.08
Other 6,022.00 6,021.99
Total 91,290,257.07 88,619,193.58
2) Provision for bad debt
Unit: yuan
Stage 1 Stage 2 Stage 3
Expected credit loss for
Provision for bad debt Expected credit Expected credit loss for Total
the entire duration
losses over the next the entire duration (no
(credit impairment has
12 months credit impairment)
occurred)
Balance on January 1,
22,469,953.80 22,469,953.80
2022
Balance on January 1,
2022 in current period
Withdrawn in current
-4,880,373.50 -4,880,373.50
period
Balance on December 31,
17,589,580.30 17,589,580.30
2022
Large book balance change in the current period of provision for loss
□ Applicable Not applicable
Disclosure by aging
Unit: yuan
Aging Book balance
Within 1 year (including 1 year) 66,837,836.02
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Within 1 year (including 1 year) 66,837,836.02
1~2 years 6,804,424.74
2~3 years 3,014,521.11
More than 3 years 14,633,475.20
3~4 years 2,701,746.80
4~5 years 1,591,300.00
More than 5 years 10,340,428.40
Total 91,290,257.07
3) Provision, recovery or reversal of bad debt reserves in the current period
Provision for bad debts in current period:
Unit: yuan
Changes in amount in current period
Beginning
Category Recovered or Canceled after Ending balance
balance Provision Other
reversed verification
Provision for
bad debt of
22,469,953.80 -4,880,373.50 17,589,580.30
other
receivables
Total 22,469,953.80 -4,880,373.50 17,589,580.30
4) Other receivables with top 5 ending balances by debtor
Unit: yuan
Proportion in total
Ending balance of
Unit name Nature of payment Ending balance Aging other ending
bad debt provision
balance receivable
Collection by third
Unit 1 33,740,160.20 Within 1 year 36.96% 1,687,008.01
party
Collection by third
Unit 2 9,589,038.27 Within 1 year 10.50% 479,451.91
party
Unit security
Unit 3 4,928,000.00 More than 5 years 5.40% 4,928,000.00
deposit
Collection by third
Unit 4 4,428,009.63 0~5 years 4.85% 221,400.48
party
Unit 5 Associated contact 4,064,000.00 More than 5 years 4.45% 4,064,000.00
Total 56,749,208.10 62.16% 11,379,860.40
3. Long-term equity investment
Unit: yuan
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in
267,279,396.10 20,400,000.00 246,879,396.10 257,032,370.17 20,400,000.00 236,632,370.17
subsidiaries
Investment in
associated enterprises 4,890,453.34 4,890,453.34 5,405,129.91 5,405,129.91
and joint enterprises
Total 272,169,849.44 20,400,000.00 251,769,849.44 262,437,500.08 20,400,000.00 242,037,500.08
(1) Investment in subsidiaries
Unit: yuan
Invested unit Beginning balance Increase or decrease in current period Ending Balance of
136
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
(book value) Capita balance (book impairment
Further l Provision for value) provision at
Other
investment reducti impairment the end of
on period
Shengzhou
Kinde
Intelligent 162,320,000.0
162,320,000.00
Kitchen 0
Electric Co.,
Ltd.
Hangzhou
Mingqi
52,028,217.25 247,025.93 52,275,243.18
Electric Co.,
Ltd.
Dize Home
Appliances
Trading 630,900.00 630,900.00 20,400,000.00
(Shanghai)
Co., Ltd.
Shanghai
ROBAM
Electric
5,838,272.10 5,838,272.10
Appliance
Sales Co.,
Ltd.
Beijing
ROBAM
Electric
5,814,980.82 5,814,980.82
Appliance
Sales Co.,
Ltd.
Hangzhou
ROBAM
Fuchuang
10,000,000.00 10,000,000.00
Investment
Management
Co., Ltd.
Hangzhou
Jinhe Electric
10,000,000.00 10,000,000.00
Appliances
Co., Ltd
246,879,396.1
Total 236,632,370.17 10,247,025.93 20,400,000.00
0
(2) Investment in associated enterprises and joint enterprises
Unit: yuan
Increase or decrease in current period
Balance
Investme of
Beginnin nt gains Adjustm Declared Ending impairm
g and ent of payment Provisio
Invested balance ent
balance Further Capital losses other
Changes
of cash n for
entity investme reductio in other Other (book provisio
(book recogniz compreh dividend impairm
nt n equity value) n at the
value) ed by the ensive s or ent end of
equity income profits period
method
I. Joint enterprise
De
Dietrich
3,661,70 162,760. 3,824,46
Trade
0.03 00 0.03
(Shangh
ai) Co.,
137
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2022 Full Annual Report
Ltd.
3,661,70 162,760. 3,824,46
Subtotal
0.03 00 0.03
II. Joint venture
Zhejiang
Tingshu
o Brand
-
Operatio 1,743,42 1,065,99
677,436.
n 9.88 3.31
57
Manage
ment
Co., Ltd.
-
1,743,42 1,065,99
Subtotal 677,436.
9.88 3.31
57
-
5,405,12 4,890,45
Total 514,676.
9.91 3.34
57
4. Operating income and operating cost
Unit: yuan
Amount incurred in current period Amount incurred in previous period
Item
Income Cost Income Cost
Main business 9,254,790,315.93 4,792,994,074.50 9,034,839,040.01 4,512,516,514.28
Other businesses 269,759,869.66 108,497,967.17 249,392,105.48 45,025,643.79
Total 9,524,550,185.59 4,901,492,041.67 9,284,231,145.49 4,557,542,158.07
Unit: yuan
5. Investment income
Unit: yuan
Item Amount incurred in current period Amount incurred in previous period
Long-term equity investment income checked
10,200,000.00 22,950,000.00
by cost method
long-term equity investment gains measured
-514,676.57 -47,639.68
by employing the equity method
Investment income from trading financial
98,086,574.72 86,701,654.28
assets during the holding period
Total 107,771,898.15 109,604,014.60
XVIII. Further information
1. Current non-recurring gain and loss statement
Applicable □ Not applicable
Unit: yuan
Item Amount Description
Profit and loss on disposal of non-current assets 113,456.26
Government subsidies included into the current profits and
losses (except those government subsidies, which are
closely related to the normal business of the Company,
101,963,275.49
comply with national policies and regulations and
continuously enjoyed in accordance with a certain standard
quota or quantity)
Reversal of impairment provision for receivables subject to
24,667,546.54
separate impairment test
138
Hangzhou ROBAM Appliances Co., Ltd.
2022 Full Annual Report
Income and expenditure other than those mentioned above -2,044,818.28
Minus: Amount affected by income tax 26,789,339.27
Amount of minority shareholders' equity affected 4,607,290.53
Total 93,302,830.21 --
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
Applicable □ Not applicable
Item Amount Cause
VAT exemption or reduction or National tax policies, recurring
45,970,536.15
refund business
Individual income tax service National tax policies, recurring
541,758.65
charge refund business
Total 46,512,294.80 —
Description of defining the non-recurring profit and loss items enumerated in the “Interpretative Announcement No. 1 on
Information Disclosure of Public Securities Issuing Companies - Non-recurrent Profits and Losses” as recurrent profit and
loss items
□ Applicable Not applicable
2. Return on net assets and earnings per share
Weighted average return on Earnings Per Share
Reporting profit
net assets Basic EPS (yuan/share) Diluted EPS (yuan/share)
Net profit attributable to
common shareholders of the 17.21% 1.67 1.67
Company
Net profit attributable to
common shareholders of the
16.19% 1.57 1.57
Company after deduction of
non-recurring profits and losses
3. Differences in Accounting Data under Domestic and Foreign Accounting Standards
(1) Differences between net profits and net assets in financial statements disclosed according to the
International Accounting Standards (IAS) and Chinese Accounting Standards simultaneously
□ Applicable Not applicable
(2) Differences between net profits and net assets in financial statements disclosed according to the
Overseas Accounting Standards and Chinese Accounting Standards simultaneously
□ Applicable Not applicable
(3) Causes for differences in accounting data under domestic and foreign accounting standards. If the
difference adjustment has been made to the data audited by the overseas audit institution, the name of
the overseas audit institution shall be indicated
4. Other
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