Guangdong Dongfang Precision Science & Technology Co., Ltd.
Semi-Annual Report 2024
【Date of Disclosure】26 July 2024
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the
directors, supervisors and senior management of Guangdong Dongfang Precision Science &
Technology Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee that the
contents of this Report are true, accurate and complete and free of any misrepresentations,
misleading statements, or material omissions, and collectively and individually accept legal
responsibility for such contents.
Tang Zhuolin, the Company’s legal representative, Shao Yongfeng, the Company’s Chief
Financial Officer, and Chen Nan, the Head of the Company’s Accounting Department
(equivalent to Financial Manager) hereby guarantee that the financial statements carried in
this Report are truthful, accurate and complete.
All directors of the Company attended in person the board meeting for the approval of this
Report.
For possible risks with respect to the Company, please refer to “X Risks Faced by the
Company and Countermeasures” of “Part III Management Discussion and Analysis” herein.
And investors are kindly advised to read through the aforesaid contents.
The Company has no semi-annual dividend plan, either in the form of cash or stock.
Special Declaration
This Report has been prepared in Chinese and translated into English. Should there be
any discrepancies or misunderstandings between the two versions, the Chinese version shall
prevail.
Page 2 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Table of Contents
Part I Important Notes, Table of Contents and Definitions ........................................................... 2
Part II Corporate Information and Key Financial Information ................................................... 7
Part III Manage ment Discussion and Analysis ............................................................................. 10
Part IV Corporate Governance ...................................................................................................... 67
Part V Environme ntal and Social Responsibilities ....................................................................... 70
Part VI Significant Events ............................................................................................................... 72
Part VII Share Changes and Shareholder Information ............................................................... 78
Part VIII Preference Shares ............................................................................................................ 86
Part IX Corporate Bonds ................................................................................................................ 87
Part X Corporate Financial Statements ......................................................................................... 88
Page 3 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Documents Available for Reference
1. The financial statements signed and sealed by the Company’s legal representative, Chief Financial Officer,
and the person-in-charge of the financial organ.
2. All the originals of the Company’s announcements and documents that were disclosed to the public during
the Reporting Period on the media designated by the CSRC for information disclosure.
3. The 2024 Semi-Annual Report carrying the signature of the legal representative.
4. The documents above are lodged in the Securities Department of the Company, 18A, China Merchants Plaza,
1166 Wanghai Road, Shekou, Shuiwan Community, Zhaoshang Street, Nanshan District, Shenzhen City,
Guangdong Province, China.
Page 4 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Definitions
Term Definition
Guangdong Dongfang Precision Science & Technology Co., Ltd., and its
Dongfang Precision, or the “Company”
consolidated subsidiaries, except where the context otherwise requires
The corrugated box packaging machinery division of Guangdong Dongfang
Dongfang Precision (China)
Precision Science & Technology Co., Ltd.
Fosber Italy Fosber S.p.A.
Fosber Asia Guangdong Fosber Intelligent Equipment Co., Ltd.
Fosber America Fosber America, Inc.
Fosber Tianjin Fosber Machinery (Tianjin) Co., Ltd
The business group including subsidiaries Fosber Italy, Fosber America, Qcorr,
Fosber Group
Tirua Group, etc.
Tirua Group Tirua Slu
Tirua America Tirua America Inc.
Tirua Asia Tirua (Guangdong) Intelligent Equipment Manufacturing Co., Ltd
QCorr QuantumCorrugated S.r.l.
Dongfang Precision (Europe)/EDF EDF Europe S.r.l.
Dongfang Precision (Netherland) Dong Fang Precision (Netherland) Cooperatief U.A.
Dongfang Precision (HK) Dong Fang Precision (HK) Limited
Wonder Digital Shenzhen Wonder Digital Technology Co., Ltd.
Parsun Power Suzhou Parsun Power Machine Co., Ltd.
Suzhou High-Tech Zone Jinquan Business Management Partnership (Limited
Suzhou Jinquan
Partnership)
Shunyi Investment Suzhou Shunyi Investment Co., Ltd.
Jaten Robot Guangdong Jaten Robot & Automation Co., Ltd.
Yineng Investment Hainan Yineng Investment Co., Ltd.
Yineng International Dongfang Yineng International Holding Co., Ltd.
Dongfang Digicom Dongfang Digicom Technology Co., Ltd.
Dongfang Digicom (Guangdong) Dongfang Digicom Technology (Guangdong) Co., Ltd.
Corrugated cardboard is a multi-layer paper-bonding object composed of at
least one sandwich layer of wavy medium (commonly known as "corrugated
Corrugated cardboard paper", "corrugated medium paper", "corrugated paper medium" and
"corrugated base paper") and one layer of cardboard (also known as "liner
board").
Corrugated box Corrugated box is a rigid paper container made of corrugated boards through
Page 5 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
die cutting, indenting, nailing, or gluing. Corrugated box is one of the most
widely used packaging containers in modern business and trade.
Corrugated box printing and packaging production line equipment include
corrugated box printing and packaging line and stand-alone products that
integrates pre-feeding, printing, grooving, die cutting, forming and packaging
Corrugated box printing and packaging production functions in whole or in part, which is highly functionally integrated, highly
line equipment automated and highly technical, can save the capital and manpower investment,
reduce workers' workload and improve the production efficiency of box
manufacturers, and requires equipment manufacturers to be highly competent in
design, technological innovation, assembly and finishing of parts.
Corrugated cardboard production lines are assembly lines comprising
corrugating, gluing, agglutinating, bundle breaking, dimension board cutting and
output processes, which are used to produce and process corrugated boards.
A corrugated cardboard production line has two independent process sections as
the wet section and the dry section. The wet section, composed of the base paper
stand, auto splicer, preheat pre-regulator, single-face corrugator, feeding bridge,
Corrugated cardboard production lines glue machine and double facer, is used to make corrugated based paper into three-
layer, five-layer, and seven-layer corrugated boards of different corrugated
combinations. The dry section, composed of the rotary shear, slitter indenter, cut-
off knife and stacker, is used to slit, indent, cut off and stack corrugated boards
as ordered.
Corrugated cardboard production lines are key production equipment for
corrugated board and box manufacturers.
Pre-printing and post-printing intelligent automatic packaging machinery refers
to equipment that is compatible with the corrugated box printing line or stand-
Pre-printing and post-printing intelligent automatic
alone products and can provide functions related to pre-printing and post-
packaging machinery
printing processes of corrugated box printing and packaging. It includes the pre-
feeder, stripper conveyor, intelligent stacker, and folder gluer.
Outboard motors are a kind of detachable power units that are mounted on the
Outboard motors
stern plate of a boat to drive the boat to sail.
General utility small gasoline motors are a kind of thermo-dynamic machinery
of 20kW power or less with a wide range of applicability. It is characterized by
small size, light weight, and easy operation, and is usually used as a power
General utility small gasoline motors engine for a variety of terminal products. By the structure of engine and
principle of work, general utility small gasoline motors can be divided into two-
stroke general utility small gasoline motors and four-stroke general utility small
gasoline motors.
CSRC China Securities Regulatory Commission
SZSE, or the “Stock Exchange” Shenzhen Stock Exchange
Expressed in the Chinese currency of Renminbi, expressed in tens of thousands
RMB yuan, RMB’0,000
of Renminbi
Page 6 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
The “Reporting Period” or “Current Period” The period from 1 January 2024 to 30 June 2024
Page 7 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name Dongfang Precision Stock code 002611
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 广东东方精工科技股份有限公司
Abbr. 东方精工
Company name in English (if
Guangdong Dongfang Precision Science & Technology Co., Ltd
any)
Abbr. (if any) Dongfang Precision
Legal representative Tang Zhuolin
II Contact Information
Board Secretary Securities Representative
Name Feng Jia Zhu Hongyu
18A, China Merchants Plaza, 1166 18A, China Merchants Plaza, 1166
Wanghai Road, Shekou, Shuiwan Wanghai Road, Shekou, Shuiwan
Office address Community, Zhaoshang Street, Nanshan Community, Zhaoshang Street, Nanshan
District, Shenzhen City, Guangdong District, Shenzhen City, Guangdong
Province, China Province, China
Tel. 0755-36889712 0755-36889712
Fax 0755-36889822 0755-36889822
Email address ir@vmtdf.com ir@vmtdf.com
III Other Information
1. Contact information of the company
Whether the company's registered address, company office address and its postal code, company website and e-mail address have
changed during the reporting period.
□ Applicable Not applicable
The company's registered address, company office address and its postal code, the company's website and e-mail address remain
unchanged during the reporting period, which can be found in the 2023 Annual report.
2. Information disclosure and location.
Whether the information disclosure and location have changed during the reporting period.
□ Applicable Not applicable
Page 8 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
The name and address of the stock exchange website and media where the Company discloses its half-yearly report and the place
where the Company's half-yearly report has been filed has not changed during the reporting period, which can be found in the Annual
Report 2023.
3. Other relevant information
Whether other relevant information has changed in the reporting period
□ Applicable √ Not applicable
IV Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.
□ Yes √ No
2024H1 2023H1 change (%)
Operating revenue (RMB yuan) 2,161,188,907.40 2,082,606,453.72 3.77%
Net profit attributable to the listed
163,880,472.14 206,149,605.30 -20.50%
company’s shareholders (RMB yuan)
Net profit attributable to the listed
company’s shareholders before exceptional 229,107,701.04 162,525,892.40 40.97%
gains and losses (RMB yuan)
Net cash generated from/used in operating
118,570,463.65 191,436,066.52 -38.06%
activities (RMB yuan)
Basic earnings per share (RMB yuan /share) 0.14 0.17 -17.65%
Diluted earnings per share (RMB yuan
0.14 0.17 -17.65%
/share)
Weighted average return on equity (%) 3.58% 4.95% -1.37%
30 June 2024 30 June 2023 Change (%)
Total assets (RMB yuan) 7,338,935,842.58 7,538,222,570.02 -2.64%
Equity attributable to the listed company’s
4,648,163,194.08 4,511,690,693.97 3.02%
shareholders (RMB yuan)
V Accounting Data Differences under China’s Accounting Standards for Business Enterprise s
(CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting
Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable Not applicable
No difference for the Reporting Period.
Page 9 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable Not applicable
No difference for the Reporting Period.
VI Exceptional Gains and Losses
Applicable □ Not applicable
Unit: RMB yuan
Item 2024H1 Note
Gain or loss on disposal of non-current assets (inclusive of
5,092,274.31
impairment allowance write-offs)
Government subsidies included in current profit and loss
(excluding those closely related to the company’s normal business
operations, in compliance with national policies, enjoyed according 10,323,357.51
to specified standards, and having a continuous impact on the
company’s profit and loss)
Gains and losses from changes in the fair value of financial assets
and financial liabilities held by non-financial enterprises, as well as
gains and losses from the disposal of financial assets and financial -90,655,088.24
liabilities, excluding effective hedging related to the company’s
normal business operations
Reversal of provision for impairment of accounts receivables
7,396.90
individually tested for impairment
Non-operating income and expenses other than the above 552,141.85
Minus: Income tax effects -10,195,770.51
Non-controlling interests effects (net of tax) 743,081.74
Total -65,227,228.90 --
Details of other profit and loss items that meet the definition of non-recurring profit or loss.
□ Applicable Not applicable
No such cases in the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items:
□ Applicable Not applicable
No such cases in the Reporting Period.
Page 10 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Part III Management Discussion and Analysis
With “intelligent equipment manufacturing” as its primary strategic focus, Dongfang Precision concentrates
on the manufacturing of high-end intelligent equipment. Its principal operations include “intelligent packaging
equipment” and “water powersports equipment”. The “intelligent packaging equipment business” consists of smart
corrugated packaging equipment, digital printers, and industrial Internet industry solutions. Dongfang Precision
accounts for approximately 15% of the global corrugated packaging equipment market, ranking first among
domestic enterprises of the same type and Top 2 in the global market.
The company has the capability to flexibly customize intelligent, efficient, and integrated production line
equipment for customers. Leveraging its capabilities in industrial Internet industry solutions and its advancements
in the field of artificial intelligence, the company is upgrading from intelligent equipment manufacturing to high-
quality digital and intelligent development, achieving a comprehensive breakthrough in its “digital and intelligent”
strategy. In the marine power equipment sector, Parsun Power’s outboard motor products have ranked first in the
domestic industry for three consecutive years (2020-2022). In 2021 and 2023, Parsun Power successfully mass-
produced 115-horsepower and 130-horsepower gasoline outboard motors, breaking the long-term monopoly of
American and Japanese brands in this power segment. In March 2024, Parsun Power officially released the 300-
horsepower gasoline outboard motor at the Shanghai International Boat Show, marking a full entry of domestic
outboard motors into the global high-end mainstream market.
During the reporting period, the company achieved a total operating revenue of approximately 2.161 billion
yuan, a year-on-year increase of 3.77%. The net profit attributable to shareholders of the listed company, after
deducting non-recurring gains and losses, was approximately 229 million yuan, a year-on-year increase of 40.97%.
The gross profit margin was 32.07%, a year-on-year increase of 2.78 percentage points. The asset-liability ratio was
33.32%, a year-on-year decrease of 6.62 percentage points. The core main business of the company, the intelligent
packaging equipment sector, achieved a total operating revenue of 1.783 billion yuan, a year-on-year increase of
6.88%, and the gross profit margin increased by 3.95 percentage points year-on-year, further enhancing the
profitability of the sector while the scale grew. Additionally, the company’s digital printing business released the
new WONDER INNO PRO SINGLE PASS industrial high-definition color digital printer. For the first time, this
device achieved the application of high-speed digital inkjet printing technology with a baseline printing accuracy
of 1800 NPI in the field of industrial-grade paper packaging printing. This provides the color printing packaging
field with a high-definition color digital printing device that can achieve an effect comparable to offset printing
through digital printing technology. The company’s industrial Internet business launched new products and modules
such as “InterLink”, “Micro Mes”, and “Equipment After-sales Service Management System”. These have been
prioritized for use in improving the company’s internal various brands and specifications of corrugated box printing
and packaging complete line products. They will also help customers in the corrugated paper packaging and
composite paperboard industries to improve the intelligence and digitization of a large number of existing
production line equipment, empowering “digital manufacturing.”
Page 11 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
The company’s consistent “1+N” development strategy and “industry-based + capital wings” development
path fully utilize the brand platform advantages of listed companies and deep integration and strategic control
capabilities. The company continuously enriches and improves its industrial layout under the “intelligent equipment
manufacturing” strategy through the external incubation of intelligent equipment enterprises with technology
innovation as the core, high technical barriers, and good development prospects. Subsidiaries/holding subsidiaries
under the company, such as the Fosber brand series companies, Tirua brand series companies, Parsun Power,
Wonder Digital, Dongfang Digicom, etc., have been fully integrated into the development system of listed
companies, becoming an important part of the company’s main business and profit contribution. Additionally, the
company’s invested and held companies, such as Jaten Robot, Ruoyu Technology, Nanjing Profeta, etc., have shown
good development momentum in the fields of robotics, artificial intelligence, 3D printing, etc., laying the foundation
for the company to expand the application fields of the “intelligent equipment manufacturing” strategy and
expanding the group’s industrial space.
I Principal Operations of the Company in the Reporting Period
(I) Industries in which the Company principally operates
According to the Classification of Strategic Emerging Industries (2018) and the Industrial Classification for
National Economic Activities (GB/T 4754-2017), the industries in which the Company principally operates are
shown below:
The Company’s Principal Business Divisions and Their Industries
Strategic Principal
emerging Industry business Primary products and their applications
industry division
1. Corrugated cardboard production lines: The corrugated cardboard
production lines are used for the production of corrugated cardboards of
different specifications, are the core machinery for corrugated packaging
production, and are widely used by medium and large enterprises
(cardboard plants) that produce corrugated cardboards in the corrugated
packaging industry.
Smart 2. Corrugated box printing and packaging production line equipment:
Intelligent Specialized The corrugated box printing and packaging production line equipment is
corrugated
manufacturing equipment used to produce and process corrugated cardboards into corrugated boxes
packaging
equipment manufacturing of different specifications and is the back-end machinery of the
equipment
corrugated cardboard production lines. Of the machinery, the printing
unit is the core machinery, of which the peripheral equipment units
includes the paper feeder unit, slotting and die cutter unit, stripper
transfer unit, FFG and stitching unit, and the counting and palletizer unit.
The corrugated box printing and packaging production line equipment is
widely used by various enterprises (box plants) that produce corrugated
boxes in the corrugated packaging industry.
Page 12 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Strategic Principal
emerging Industry business Primary products and their applications
industry division
Digital printing is a printing method that generates sheet-by-sheet variable
graphic images from digital information. With the help of printhead ink,
digital printing enables the formation of the image directly on the printing
stocks and can indirectly transmit the colour and auxiliary substances to
the print stocks to form the presswork. Digital printing can meet the
Digital requirement for industrial production.
printers
Wonder Digital, one of the subsidiaries controlled by Dongfang Precision,
is a leading supplier of digital printers in China. It is committed to
providing digital printers for industries such as paper packaging (colour
printing & pre-printing), advertising, home decoration, building materials,
and label printing.
Build the Industrial Internet Platform for industry, provide end-to-end
solutions and operational services that range from intelligent machinery,
Industrial Industrial integrated management of production and operations of enterprises,
Software and
Internet and Internet intelligent business decision-making, to agile corporate reforms and
information
supporting industry innovation for corporate customers from more than the paper packaging
services
services solutions industry, and promote the step-by-step digital transformation of the
business with a focus on essentials such as “connecting + data processing
and modeling + data intelligence applications”.
Railway, Outboard motors are a kind of detachable power units that are mounted
shipping, on the stern plate of a boat to drive the boat to sail and can be applied to
Manufacturing aviation and boats shorter than 24m in inland rivers, lakes, and coastal waters. They
Water
of ship other are widely used in water recreation, fishing, water traffic, emergency
powersports
auxiliary transport rescue, shore landing and maritime patrol.
equipment
equipment equipment
manufacturing
industries
(II) Industry overview
1. The Industries to which the Company's Intelligent Packaging Equipment Business Segment Belongs
1.1 Demand side—customers
The intelligent packaging equipment division of the Company specializes in “smart corrugated packaging
equipment” and “digital printers”. This division primarily serves B-end customers such as corrugated cardboard and
corrugated box manufacturers. As a machinery supplier, the Company provides various single machine and
complete production line products for cardboard and box production, which makes the Company depend on the
development of the downstream paper packaging industry to some extent.
End demand for corrugated packaging is growing: The corrugated box field is one of the major fields of
the paper packaging industry, of which the end demand is relevant to the prosperity of consumption and business
Page 13 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
activities. Corrugated packaging products are used in a vast number of fields, including food and beverage,
household chemicals, electronic products, and e-commerce express delivery, and are inelastically demanded by
consumers. Corrugated packaging applications in electronics, beverages, food, household chemicals and express
delivery accounted for 26%, 21%, 20%, 13% and 13% of the overall applications of corrugated packaging in
downstream sectors, respectively.
Over the past few years, the scale of China’s express corrugated packaging market has been on the rise. By the
forecast of Qianzhan Industry Research Institute, the scale of China’s express corrugated packaging market will
continue to rise in the upcoming years and is estimated to reach RMB86.4 billion by 2025 (CAGR for 2019 to 2025:
Approximately 15%). Terminal markets, including the express, electronics, and household chemicals terminal
markets, show an increasing demand for corrugated box and board packaging, which will drive the expansion of the
capacity of corrugated packaging enterprises and thus increase the demand for corrugated packaging machinery,
benefiting the machinery manufacturers.
Between 2017 and 2023, the domestic express business recorded rapid growth, with a compound annual growth
rate (CAGR) of approximately 27%. Data from the State Post Bureau showed that the total volume of domestic
express delivery for 2023 was 162.48 billion pieces, up 16.8% year-on-year.
Trend of China's Express Business Volume Above Scale, 2016-2023
1800.0 1624.8 60.0%
1600.0
50.0%
1400.0
1200.0 1083.0 1105.9 40.0%
833.6
1000.0 635.2
30.0%
800.0
600.0 507.1 20.0%
400.6
400.0 312.8
10.0%
200.0
0.0 0.0%
2016 2017 2018 2019 2020 2021 2022 2023
中国快递业务量 同比增速
According to the “June 2024 China Express Development Index Report” and related statistical data released
by the State Post Bureau in July 2024, China’s express market maintained a rapid development trend in the first half
of 2024, supporting the prosperity of the online economy and adding momentum to economic and social
development. In the first half of the year, the cumulative volume of express business in the domestic market was
80.16 billion pieces, a year-on-year increase of 23.1%, and the cumulative express business revenue was 653 billion
yuan, a year-on-year increase of 15.1%. Since March 2024, the monthly business increment has exceeded 2 billion
pieces. Especially during the “May Day” holiday (May 1st-5th) and the Dragon Boat Festival holiday (June 8th-
10th), the average daily express business volume increased by 32.7% and 25.6% year-on-year, respectively. Looking
forward to the second half of the year, the fundamentals supporting the continued development of the domestic
express industry will not change. There are still many favorable factors to promote industry growth. Policy dividends
will continue to be effective, and policy documents issued by various regions and departments to expand domestic
Page 14 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
demand and promote the rapid growth of new consumption will continue to exert force in the second half of the
year. With the improvement of industry service quality and supply capacity, express services will reach more
countries and regions, link more industries and enterprises, better meet more personalized and customized delivery
needs, and the industry is expected to gain more market increments.
The steady growth of the express industry scale continues to have a positive impact on the development of the
domestic corrugated paper packaging industry. According to statistics, in 2023, the new production capacity of
domestic corrugated paper and boxboard paper was 7.67 million tons, and the eliminated production capacity was
3.19 million tons, achieving a net new production capacity of 4.48 million tons. It is expected that there will still be
about 6.6 million tons of new production capacity in 2024.
Guided by the “large-scale equipment renewal” policy, a swift acceleration in equipment upgrades is
anticipated within the domestic corrugated packaging sector.
In February 2024, the Central Financial and Economic Affairs Commission held its fourth meeting to promote
a new round of large-scale equipment renewal and consumer goods trade-in, explicitly mentioning the need to
“promote the renewal and technological transformation of various types of production equipment and service
equipment”. On March 1, the State Council executive meeting considered and passed the Issuing the Action Plan
for Promoting Large-scale Equipment Renewals and Consumer Goods Trade-ins, proposing to “promote the
proportion of advanced production capacity to continue to increase”.
Over the years, China's corrugated packaging sector has largely consisted of numerous small- and medium-
sized box manufacturers dominated by low-end production capacities, leading to a highly decentralized market and
relatively low industry consolidation. Responding to the Party Central Committee and State Council's “large-scale
equipment renewal” policy directive, the corrugated packaging industry anticipates a heightened pace of equipment
modernization throughout the 14th Five-Year Plan period, with an expected surge in medium- to high-end
production capacity proportions.
With the continuous development of the downstream end consumption industry in China, the requirements of
corporate customers for corrugated boxes gradually increase. In the corrugated packaging industry, market
concentration and the phase-out of low-end production capacity is an inevitable trend, due to market competition,
capacity upgrading, M&A, etc. It is estimated that the line machinery that is more intelligent and productive will
replace the existing corrugated cardboard production lines and corrugated box printing and packaging production
line equipment in the upcoming five to ten years. By statistics, there are over 6,000 existing corrugated cardboard
production lines in the domestic market, and more corrugated box printing and packaging machinery.
According to estimates, the overall market share of the domestic industry of the 15 listed corrugated paper
packaging companies in China increased from 5.7% in 2017 to 10.9% in 2023. Statistics from the China Packaging
Federation show that in 2023, there were 2,991 enterprises above designated size in the national paper and
paperboard container manufacturing industry, a decrease of 164 from 2022, indicating a decrease in the number of
enterprises above designated size. The above data shows that the concentration of the domestic corrugated paper
packaging industry is continuously improving. In addition, the China Packaging Federation report shows that the
domestic paper packaging industry achieved a profit of 10.867 billion yuan in 2023, a year-on-year increase of
35.65%, of which the industry achieved a profit of 6.879 billion yuan in the second half of 2023, with a significant
Page 15 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
year-on-year increase in profits in the second half of 2023, and the trend of profit concentration towards leading
enterprises is obvious.
Digital and intelligent upgrading of the paper packaging and printing industry bring new development
opportunities. The traditional production mode has caused domestic paper packaging and printing enterprises to
be overly dependent on skilled technicians at critical positions and slow to identify the outdated management mode.
The “strategy of robot assembling line” and “smart factory” are increasingly recognized by the industry. Amid
intelligent manufacturing, the paper packaging and printing industry will usher in industrial upgrading and
transformation. Additionally, leading packaging enterprises, including Xiamen Hexing Packaging Printing Co., Ltd.
(HXPP), MYS Group Co. Ltd. (MYS), Shenzhen YUTO Packaging Technology Co., Ltd., and Shenzhen Jinjia
Group Co., Ltd., have pushed ahead with Internet-based development in recent years by entering into intelligent
manufacturing, cloud printing, or other markets, expected to launch a revolution in the Internet-based development
of the paper packaging and printing industry and injecting new impetus into industry integration. Concurrently, amid
intelligent manufacturing and Internet-based packaging, leading enterprises engaged in corrugated packaging
machinery are also expected to embrace new development opportunities.
Overseas demand is relatively steadily: In recent years when environmental pollution becomes more and
more serious, growing environmental awareness has led to “plastic bans and restrictions” across the world,
providing a major boost to paper as an alternative to plastic. England announced a ban on single-use plastics starting
October 2023, covering items like disposable plastic plates, trays, bowls and utensils. France is phasing in bans on
single-use plastic packaging for around 30 fruits and vegetables starting January 2022. The U.S. Department of the
Interior announced that single-use plastics will be gradually phased out in national parks and other public lands by
2032. The global green packaging market is projected to grow from USD262.27 billion in 2023 to USD381.98
billion in 2028, with a compound annual growth rate of 7.81% during the forecast period (2023-2028).
The corrugated cardboard produced by corrugated cardboard production lines is used to make various
corrugated boxes, corrugated cartons and other corrugated packaging materials, which are rigid consumer products
in European and American countries. According to Statista data, the US e-commerce market is expected to grow at
a compound annual growth rate of 12.7% from 2017 to 2027. The philosophy of “sustainability” is gaining ground
in the European and US consumer goods packaging markets. With the growing trend of "replacing plastics with
paper" in the packaging industry, demand for corrugated packaging materials in the European and US consumer
goods markets continues to grow steadily, helping to drive demand for corrugated packaging production line
equipment.
1.2 Supply side——the Company’s presence in the industry
A． World-leading comprehensive strength
Corrugated cardboard production lines: Major manufacturers of corrugated cardboard production lines around
the world include Fosber Group（Business entities under the company）, BHS (Germany), Marquip (a wholly-
owned subsidiary of the American Barry-Wehmiller), and J.S. Machine. Among them, Fosber Group and its major
rival from Germany, BHS, lead the others and are leaders in the global middle- and high-end corrugated cardboard
production line field. Fosber Group holds approximately 30% of the global middle- and high-end corrugated
cardboard production line market and more than 50% of the North American market.
Page 16 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Corrugated & pressure rollers, key components of corrugated cardboard production lines: The subsidiary
Tirua Group has more than 40 years of experience in the corrugated and pressure roller segment and is renowned
in Europe as a world-leading specialist in this segment.
Corrugated box printing and packaging production line equipment: Major manufacturers in this field include
Dongfang Precision, Bobst (Switzerland), Gopfert (Germany), Ward (a wholly-owned subsidiary of the American
Barry-Wehmiller), Ding Long (Shanghai), and Guangzhou Keshenglong. Dongfang Precision is an industry leader
in China and is competitive with the global industry leader, Bobst, from Switzerland. With an advantage in global
resource coordination, leading design concept, excellent overall R&D strength, and a product system featuring
complete categories and rich specifications, the Company can produce products that meet dozens of specifications
and different market positioning, covering fixed/open-close type, top printing/bottom printing, and complete
production line (inline) products/single machine, and has the completest product lines and richest product base of
the corrugated box printing and packaging production line equipment worldwide.
Digital printers: Major manufacturers include HP, EFI, Koenig & Bauer Durst, Wonder Digital, Hanhua
Gongye, and Atexco, among others. Wonder Digital, a majority-owned subsidiary of Dongfang Precision, has been
specializing in the development and manufacturing of digital printers for 13 years, and is a leader in the domestic
digital printer industry. It takes the lead among global suppliers of digital printers in applying high-speed inkjet
printing technology to corrugated packaging and is committed to extending digital printing technology to such fields
as paper packaging (colour printing & pre-printing), advertising, home furnishing, building materials, and label
printing.
In conclusion, Dongfang Precision leads the world in terms of its comprehensive strength in smart corrugated
packaging equipment business and can provide downstream customers such as cardboard plants and box plants with
“one-stop” machinery and service support that covers each production process, including corrugated cardboard
production, corrugated box production, and pre-printing and post-printing production processes, and different
technology roadmaps, including flexographic printing and digital printing.
The value of the global corrugated packaging equipment market is estimated to be about RMB30-40
billion. In terms of operating revenue, Dongfang Precision accounts for approximately 15% of the global
corrugated packaging equipment market, ranking first among domestic enterprises of the same type and Top
2 in the global market.
B. The rapid development of digital printing brings more development opportunities for the industry.
According to the latest report The Future of Inkjet Printing to 2027 by Smithers Pira, the market value of inkjet
printing in graphic printing and package printing globally reached USD86.8 billion in 2022. The inkjet printing
market has grown strongly over the past 5 years. Total inkjet printing output in 2022 was 46.2% higher compared
to 2017, with printed volume growing by over two-thirds. The report forecasts that growth of inkjet printing in
packaging will be most rapid from 2022 to 2027, with expected compound annual growth rates of 17.7% by
shipment quantity and 16.3% by value. Digital printing is expected to increase its market share in corrugated
packaging printing from 4% in 2022 to 9% in 2027, with high potential for growth of digital printing in the
corrugated packaging industry.
The main competitive edges of the digital printing technology of Wonder Digital, a majority-owned subsidiary
Page 17 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
of Dongfang Precision, are as follows:
(1) Advanced technology and a wide range of products
Digital printing adopts inkjet printing technology. It can be divided into UV printing (including colour printing
& pre-printing, with printing effects close to colour offset printing) and water-based ink printing (including colour
printing & pre-printing, with water-based dye/pigment inks, etc.) in terms of the ink type and printing effects. In
2024, Wonder Digital released the new WONDER INNO PRO SINGLE PASS industrial high-definition color
digital printer, with a baseline printing accuracy of up to 1800 NPI, achieving a revolution from color printing to
high-definition color printing in the field of paper packaging printing with domestic digital printing technology.
This provides the color printing packaging field with a high-definition color digital printing device that can achieve
an effect comparable to offset printing through digital printing technology.
(2) Integrated digital solutions that feature human-machine interaction and an integrated system
Wonder Digital’s digital printers feature high levels of system integration and human-machine interaction in
product design and technical implementation. Compared to traditional package printers, they are more user-friendly
and easier-to-operate. Wonder Digital’s digital printers can be operated after simple training, with just one person
needed to operate a multi-pass digital printer and two to run a single-pass inline for mass production.
(3) Convenient, flexible and efficient
Digital printing enjoys an absolute advantage in small and medium batches of printing and urgent printing
needs as it saves tedious processes, such as platemaking, imposition, and colour calibration. It enables electronic
documents generated via typesetting software, design software, and office applications to be directly output to digital
printers. Moreover, digital printing enables one-sheet, flexible printing, which cannot be done by traditional printing.
Additionally, digital printing enables a more flexible printing method that is, modifying while printing, and
vice versa, enabling “zero stock”. Such a flexible and quick printing method has strengthened the competitiveness
of customers in a competitive environment where every minute counts. With regard to pattern design, platemaking
in traditional printing is not required in digital printing, allowing more freedom for design and enabling designers
to give full play to their professionalism and tailor products to customers’ needs.
2. The industry to which the company's industrial Internet industry solutions business belongs
According to the Classification of Strategic Emerging Industries (2018), Dongfang Precision’s “industrial
Internet industry solutions” business division falls under the “industrial Internet and supporting services” industry.
Policy side: The Guiding Opinions of the State Council on Deepening the “Internet plus Advanced
Manufacturing” and Developing the Industrial Internet released by the State Council in 2017 marked China’s official
entry into digital development from information-based development in terms of industries. “Accelerate the
development of the industrial Internet” was proposed for the first time in the report on government work in 2018
and became a frequent visitor in the reports on government work for the next five years. In 2020, the National
Development and Reform Commission stated that, as one of the new network infrastructure types, the industrial
Internet is a part of the new infrastructure. Under the guidance of a range of policies, the industrial Internet and
smart factory have become the strategic development orientation of the transformation and upgrading of China’s
manufacturing.
Page 18 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Market side: China is the only country in the world whose industries cover all industrial categories in the
United Nations’ industrial classification. Concurrently, it is expected to grow into the world’s largest industrial
digitalization market. For the current manufacturing industry of China, digital transformation is no longer an “option”
but a “compulsory course” that is critical to its survival and long-term development.
As the manufacturing sector enters a “digital and intelligent” era, an increasing number of manufacturing
enterprises have realized that buying production equipment, enterprise resource planning (ERP) systems, or
manufacturing executive systems (MES) cannot meet the systematic requirements of intelligent manufacturing. By
contrast, industrial Internet platforms can systematically resolve all critical issues that cannot be handled through
traditional means. According to the Bluebook on the Digital Transformation of Enterprises--Empowering the Low-
carbon and Green Transformation of the Real Economy with New IT released by the China Academy of Information
and Communications Technology, after relevant manufacturing enterprises complete digital transformation, on
average, their production efficiency will be boosted by 37.6%, their operating expenses will be lowered by 21.2%,
and their energy utilisation rate will be improved by 16.1%. Concurrently, with the rapid development and
continuous iteration of the new-generation information technology, the cost of digital transformation of enterprises
is gradually decreasing, and more and more industrial enterprises will implement industrial Internet-based digital
transformation.
According to the data released by Frost & Sullivan, the scale of the market of industrial Internet platforms and
relevant solutions in China by 2025 is estimated to reach RMB193.12 billion. Between 2021 and 2025, the CAGR
of the market of industrial Internet platforms and relevant solutions in China is approximately 45.3%.
The Scale of the Market of Industrial Internet Platforms and Relevant Solutions and Forecast between 2020 and 2025
2,500 RMB'00 million
2,000 1,931.2
1,500
1,301.6
1,000 885.9
601.3
500 432.8
302.4
0
2020 2021 2022E 2023E 2024E 2025E
Supply side:According to the White Paper on the Economic Development of the Industrial Internet Industry
in China (2022), participants in the construction of industrial Internet platforms in China are diversified. Leading
manufacturing enterprises, information and communications enterprises, and Internet-based enterprises build
industrial Internet platforms in different dimensions and from different perspectives based on their own comparative
Page 19 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
advantages, enabling China’s industrial Internet industry to enjoy industrial enterprises, ICT enterprises, and Internet
enterprises at the same time.
The key technologies and industries that the industrial Internet involves are extensive and complex and can
hardly be fully covered by enterprises. Thus, developing the industrial Internet by relying on industrial
manufacturing enterprises becomes a typical development path of industrial Internet enterprises, such as Root Cloud,
Midea Cloud, and Baosight. In the packaging field, major manufacturers that provide industrial Internet-related
products and solutions services include Yunyin, Dongfang Digicom, and Shanghai Wantit.
The subsidiary Dongfang Digicom, carrying Dongfang Precision’s missions of expanding into the industrial
Internet industry and implementing “digital and intelligent transformation strategies”, was established in 2020. With
the vision “to become a world-leading provider of industrial Internet industry solutions”, Dongfang Digicom is
engaged in building industrial Internet platforms for industries using new-generation information technologies, such
as the IoT, cloud computing, big data, and artificial intelligence to facilitate digital and intelligent upgrading.
3. The Industries to which the company's water power products segment belongs
3.1 Demand side——customers
The outboard motors are the subsidiary Parsun Power’s main water powersports products. The company’s
marine power product business segment falls within the outboard motor industry, a subdivision of the ship
supporting equipment industry. Outboard motors are the key auxiliary equipment for small- and medium-sized ships
and are characterized by their compact structures, light weights, convenient installation and maintenance, easy
operations, and low noise. They are widely used in water recreation and sports, fishing, water traffic, emergency
rescue, shore landing, and maritime patrol.
The upstream of the outboard motor industry includes manufacturing raw materials and spare parts, such as
steel, non-ferrous metals, internal combustion engines, gearboxes, propellers, and electric motors. The upstream
raw material market is relatively mature, with sufficient market competition and product supply, ensuring that the
company’s raw material procurement can be fully guaranteed. The downstream of the outboard motor industry
involves the shipbuilding industry, primarily used in yachts, sailboats, and other vessels, which can be utilized for
recreational sports, commercial operations, and military maritime activities.
Page 20 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Applications of Parsun Power’s Outboard Motors
Field Scenario Example
Recreational
Recreational fishing, sailing and
water sports
Fishing, water
traffic and
Commercial
waterway
maintenance
Emergency rescue
and maritime
Official and patrol
military Beach landing and
water
reconnaissance
In terms of the global market, according to a report released by Global Market Insights Research Private
Limited (GMI), the global sales volume of outboard motors is expected to reach 914,800 in 2023 and 1.171 million
in 2030; and the global market value of outboard motors is expected to reach USD11.093 billion in 2023 and
Page 21 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
USD15.975 billion in 2030. By horsepower size, in 2023, the global outboard motor market had a market share of
20.28% for low-horsepower motors and 79.72% for medium-high horsepower motors. The medium-high
horsepower motor market has a larger share, and the trend towards high-horsepower motors capable of driving
recreational and luxury yachts is more pronounced. Outboard motors enjoy a vast global market. With global
economic growth, personal income increase, and the change in personal consumption habits, the global outboard
motor market trends toward stable growth. Worldwide, the outboard motor industry is dominated by Japanese and
American brands, including Yamaha (a Japanese outboard motor brand under Yamaha Motor) and Mercury (an
American outboard motor brand under Bentfield Group). Compared with major international competitors, Parsun
Power continues to capture market share in Europe, the United States and other developed countries, supported by
its cost-effective advantage of similar product performance and obvious price advantage.
In terms of the Chinese market, according to GMI’s report, the sales volume of outboard motors in China is
expected to reach 45,500 in 2023 and 75,800 million in 2030; and the market value of outboard motors in China is
expected to reach USD306 million in 2023 and USD588 million in 2030, with China’s compound annual growth
rate (CAGR) in sales volume and market value both much higher than those of the world. In 2023, the market
share of low-horsepower and medium-high horsepower outboard motors in China is expected to be 48.01% and
51.99%, respectively.
In recent years, considering the development of China’s water tourism and recreational industry and the
emphasis of the government on maritime rights, the Chinese government agencies at all levels have granted
vigorous policy support to ship-related industries. For example, the National Development and Reform
Commission has included high-performance ships, such as superyachts, luxury cruise ships, marine surveillance
vessels, and small-waterplane-area twin hulls, among items for encouragement. The Ministry of Industry and
Information Technology has proposed developing brand products, such as luxury superyachts, sightseeing boats,
and official boats. The State Council has also proposed vigorously developing marine tourism, manufacturing
localised tourism equipment such as cruises and cruise yachts, and vigorously developing cruise yacht tourism.
China’s yacht industry will usher in rapid development.
China has become one of the world’s fastest-growing outboard motor markets owing to its rapid economic
growth and changing recreational habits. With the rise of domestic brands represented by Parsun Power, domestic
substitution has gradually become one of the mainstream trends in the development of the outboard motor
industry in China, and there is the huge market potential for domestic substitution. Against the backdrop of the
country’s encouragement of import substitution of domestic equipment, China is expected to usher in a new stage
of prosperous development for domestic outboard motor enterprises. Leading domestic outboard motor companies
will enjoy the dual benefits of high industry growth and domestic substitution.
3.2 Supply side——the Company’s presence in the industry
The subsidiary Parsun Power specializes in R&D, manufacturing, and sales of outboard motors, aspiring to be
a world-class provider of water powersports products. Its outboard motors span a diverse power spectrum,
compatible with fossil fuels, electricity, and alternative energy sources. The majority of its product models have
been CCS-, CE- and EPA-certified. These products are widely used in water recreation, fishing, water traffic,
emergency rescue, shore landing and maritime patrol.
Page 22 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
As a top-ranking manufacturer in the domestic outboard motor industry, Parsun Power is a State-level "Little
Giant" enterprise with specialties, refined management, unique technologies, and innovation, as well as a State-
level High-tech Enterprise. Parsun Power’s outboard motors ranked first in the industry for three consecutive years
from 2020 to 2022. In 2021 and 2023, Parsun Power successfully mass-produced 115-horsepower and 130-
horsepower gasoline outboard motors, breaking the long-term monopoly of American and Japanese brands in this
power segment. In March 2024, Parsun Power officially released the 300-horsepower gasoline outboard motor at
the Shanghai International Boat Show, marking a full entry of domestic outboard motors into the global high-end
mainstream market.
(III) Principal operations of the Company in the Reporting Period
With “intelligent equipment manufacturing” as its primary strategic focus, Dongfang Precision concentrates
on the manufacturing of high-end intelligent equipment. Its principal operations include “intelligent packaging
equipment” and “water powersports equipment”. The “intelligent packaging equipment business” consists of smart
corrugated packaging equipment, digital printers, and industrial Internet industry solutions.
Business Divisions and Entities of Dongfang Precision
Page 23 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
A The intelligent packaging equipment division
The intelligent packaging equipment division consists of smart corrugated packaging equipment, digital printers, and industrial Internet industry solutions, which
cover the most important links in the value chain of corrugated packaging production (as shown below).
Relationship between Corrugated Packaging Manufacturing Value Chain and the Company's Smart Corrugated Packaging Equipment
Page 24 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
a. Smart corrugated packaging equipment business
(1) Corrugated cardboard production lines (including corrugated rollers)
The corrugated cardboard production lines business of Dongfang Precision is engaged in corrugated cardboard
production lines (under the brands of Fosber and Quantum) as well as corrugated and pressure rollers (under the
Tirua brand), which are key components of corrugated cardboard production lines. With the overseas Fosber Group
(under it, Fosber Italy, Fosber America, QCorr, and Tirua Group) as well as the domestic Fosber Asia and Tirua
Asia, Dongfang Precision is able to provide products and services for customers around the world.
From the perspective of end market, the three major series of corrugated cardboard production lines (S/Line
and Pro/Line under the Fosber brand, as well as Quantum Line under the Quantum brand), along with a wide range
of corrugated and pressure rollers (key components, under the Tirua brand), are complementary and synergistic,
achieving full coverage of the end market as a product portfolio.
From the point of the locations of business entities, the global layout of business assets lays a solid foundation
for the Company's global sales.
Overseas, Fobser Group primarily serves large- and medium-sized manufacturers in Europe, North America,
Latin America and other countries and regions. All the business units and profit centres of Fosber Group have their
business, assets and staff located in Europe and North America. They adopt a local management and operation
model, and design, develop and manufacture their products locally. Fosber Group has established stable partnerships
with major manufacturers in the corrugated packaging industry in Europe and the US.
Domestically, Fosber’s corrugated lines have been designed and adapted to the needs of customers in the
Chinese market. Supported by China’s most complete supply chain across all industrial sectors globally, as well as
the competitive edge of manufacturing, over 90% of the components of the corrugated lines are manufactured
domestically. These products, which are high-tech, high-performance and cost-efficient for they are made in China,
are provided for corrugated packaging manufacturers in China, Asia (East Asia, Southeast Asia, South Asia, and
the Middle East), Africa, Europe, and Latin America. Since 2022, the Company has introduced Tirua’s corrugated
and pressure rollers to China for domestic design and local production. While catering to the needs of Fosber Asia’s
corrugated lines for corrugated and pressure rollers, Tirua is also developing new markets in China and the rest of
Asia for its products.
(2) Corrugated box printing and packaging production lines
Dongfang Precision is a professional supplier of medium- and high-end corrugated box printing and packaging
production lines. Domestically, Dongfang Precision (China) is responsible for business operations associated with
corrugated box printing and packaging equipment, while in the overseas market, it is Dongfang Precision (Europe).
The product matrix of Dongfang Precision (China) includes corrugated converting line and single machine
products that are of dozens of specifications and different market positioning, featuring fixed type/open-close type,
top printing/bottom printing, and other technologies. These products mainly include “Dongfang Star” Quickset Top
Printing FFG and Top Printing Open-Close Type FFG Inline, as well as “Super Star” Bottom Printing Die Cutter
Stripper Vacuum Stacker Converting Line, Bottom Printing Open-Close Type FFG Inline and Bottom Printing
Open-Closed Type/FFG & Stitcher.
Page 25 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Dongfang Precision (Europe) specializes in high-end corrugated converting line products. Its primary products
include “FD” Quickset Top Printing FFG, “HGL” Quickset Bottom Printing FFG, and Quickset Bottom
Printing/Die Cutter Stripper Vacuum Line. These products are designed with noncrush feeder design, full servo
control, and fully automatic control features, making them more suitable for high-definition printing. Dongfang
Precision (Europe) also provides pre-printing and post-printing equipment compatible with the complete line
products, covering production processes such as paper feeding, stripping, transferring, palletizing, folding and
gluing. Dongfang Precision (Europe) primarily serves the European markets.
In the area of corrugated converting lines/single machines, Dongfang Precision is a professional manufacturer
with an early start and a strong foundation among domestic fellow companies, enjoying high brand awareness and
customer recognition in the industry. The products are highly popular not only in the domestic market but also
exported to over 60 countries and regions worldwide, including Europe, America, Asia, Africa, Latin America, and
Oceania.
Page 26 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Primary Product Portfolio of Dongfang Precision’s intelligent packaging Equipment Business - Corrugated Cardboard Production Lines
Product type Brand Product image Main characteristics
Fosber Brand S/Line
Width: 2.5m~2.8m
Production speed: 370~470 meters/minute
Designed for large corrugated board
manufacturers Beltless Technology
Caddy oil-free technology
Gapless changeover with no speed
reduction of the cadre
Industry leading changeover times
Optimum board quality and low operating
costs
Advanced Syncro4 system control
Process Control Supervision (PCS)
Corrugated Data Tracking Supervision (DTS)
Cardboard
Quantum Line：
Production Widths from 1.8m to 2.5m
Lines A new concept in corrugated board
production
Better suited for lightweight corrugated
board production
Innovative design, compact and flexible
Optimum appearance and print surface
quality
Lower energy consumption and less labor
Wavy Line：
Designed for the production of single-
sided corrugated boards
Compact and flexible
High quality at high speeds
Page 27 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Product type Brand Product image Main characteristics
Domestic Line:
Width: 2.2m~2.8m
Design speed: 270-370 meters/minute
Single tile, double tile, triple tile wet
section
Wet section without belt technology
Cadre without lubrication technology
High board quality
Advanced Syncro system control
Process Control Supervision (PCS)
Data Tracking Supervision (DTS)
Instant Set:
Dual Module Slitting Machine
Gapless order change speed of 250
meters/minute
Positioning accuracy of +/-0.5mm,
Within 3 seconds to change the order and
line up the knives
Corrugated & The world's leading supplier of
corrugating rolls and pressure rolls with
pressure
industry-leading machining and tungsten
rollers carbide treatment
Page 28 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Primary Product Portfolio of Dongfang Precision’s Smart Corrugated Packaging Equipment Business - Corrugated Box Printing and Packaging Production Line Equipment
Product type Brand Product image Main characteristics
Upper printing fixed type
Full servo control
DONGFANG STAR I QUICKSET TOP PRINTING FFG
No downtime for plate change
2 minutes quick order change
Vacuum adsorption large belt, high
precision cardboard transfer, long
service life
Energy saving up to 30
Only 2 people are needed to operate
the whole line
Print-on/off type
DONGFANG STAR II TOP PRINTING OPEN-CLOSE TYPE FFG
Integrated Vacuum adsorption roller transfer;
corrugated Computerized adjustment, easy to
box printing operate;
and High speed and stable operation;
packaging Patented folding structure; Improve
lines carton molding effect
Only 2-3 persons are needed to
operate the whole line
Suitable for shaped box, machine
box and pre-printed box, etc., with
one point and multiple die-cutting.
Mature down-printing die-cutting
technology; Clean chip removal and
accurate counting
Asia-Pacific STAR I BOTTOM PRINTING DIE CUTTER STRIPPER VACUUM STACKER CONVERTING LINE
Efficient production; Uninterrupted
Page 29 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Product type Brand Product image Main characteristics
feeding; No-speed down output of
bundles, flexible palletizing
methods
Configurable for double-sided
printing; 2-3 person operation
Vacuum adsorption roller transfer
Asia-Pacific STAR II BOTTOM PRINTING OPEN-CLOSE TYPE FFG INLINE Computerized adjustment of the
whole machine, easy to operate
Good effect of clearing waste, can
Integrated realize one opening and two die-
corrugated cutting line gluing carton.
box printing Patented folding structure improves
and carton molding effect.
packaging The whole line is operated by 2-3
lines persons
Design concept of down-printing
Asia-Pacific STAR III BOTTOM PRINTING OPEN-CLOSED TYPE/FFG & STITCHER
type gluing and nailing as a whole
Multi-purpose machine, to meet the
production needs of different orders
Saving space, reducing process,
greatly reducing labor cost.
Multiple pre-pressure to enhance
folding and molding effect, precise
control of molding accuracy.
Page 30 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Product type Brand Product image Main characteristics
High-end down-printing fixed in-
line
Spindle servo drive
Quick order change
Complete pre-press and post-press
supporting units
Page 31 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
b. Digital printers
The business is primarily led by the subsidiary Shenzhen Wonder Digital Technology Co., Ltd. Wonder Digital
provides solutions for customers in the digital printing industry, including digital printers, ink, accessories, and professional
services. Wonder Digital has introduced a variety of digital printers to meet the diverse needs of different market segments
and customer levels, including:
(1) Multi Pass digital printer series applicable for small-batch paper packaging printing
(2) Single Pass digital printer series applicable for large/medium/small batch paper packaging printing
(3) Single Pass digital series applicable for pre-printing on raw paper
(4) Hybrid printer series that combines Multi Pass high-precision printing and Single Pass high speed printing into one,
supporting both scanning mode printing for large size, high precision, and full colour orders, and instantly switching to
Single Pass mode for printing large volumes of small size orders.
Wonder Digital offers a diverse range of products that cover various types and specifications, from postprinting to pre-
printing, from water-based dye/pigment, water-based ink to spot colour UV ink, from boxes, offset cartons to sheet metal.
The products also support a range of application modes and scenarios, from single-sheet printing to exchange orders
seamlessly with variable data printing, and from single machine printing to integration with ERP systems. As a leading
enterprise in the domestic corrugated box digital printing industry, Wonder Digital has always focused on the application
innovation of digital printing technology in the field of industrial printing. In 2024, Wonder Digital released the new
WONDER INNO PRO SINGLE PASS industrial high-definition color digital printer. This is the first time that high-speed
digital inkjet printing technology with a baseline printing accuracy of 1800 NPI has been applied in the field of industrial-
grade paper packaging printing. This device provides the color printing packaging field with a high-definition color digital
printing solution that can achieve an effect comparable to offset printing through digital printing technology.
Apart from digital printers, Wonder Digital also sells supporting units after printing section including slotting and
varnish coating units, as well as special ink products that are compatible with its own-brand equipment. These special ink
products, including water-based dye ink, water-based pigment ink, and UV ink. Wonder Digital’s high cost-performance
digital printing solution provides customers with cost-effective configuration plans for digital inkjet printing equipment and
ink formulation plans. The cost-performance ratio of the ink is a crucial factor for customers to consider when evaluating
the overall solution.
Based on accumulated know-how and experience, Wonder Digital provides digital printers for advertising, home
decoration, and other fields, including flatbed printing and roll to roll printing technologies. The flatbed models can be used
for digital printing on materials such as aluminum panels, glass, metal plates, acrylic sheets, and alucobond panels, while
the roll-to-roll models are applicable for digital printing on corrugated cardboard, vehicle paste paper, lamp box fabric, PVC
film, decorated paper, and sheet metal like aluminum sheets, among others. Additionally, Wonder Digital also offers digital
printers for the label printing industry.
With its comprehensive product matrix, Wonder Digital provides paper packaging digital printers that meet the iverse
needs of industry customers with different market positions and levels. Since its establishment in 2011, Wonder Digital’s
digital printers have been exported to countries and regions such as Europe, America, Middle East, Latin America, and
Southeast Asia, with over 1,600 units of equipment installed worldwide. Leveraging its robust R&D prowess in China's
digital printer sector, Wonder Digital has forged an enviable brand identity and industry standing. Its cutting-edge
technology, superior reliability and stability, along with a compelling price-to-performance ratio, constitute the core
competitive strengths of Wonder Digital.
Page 32 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Primary Product Portfolio of Dongfang Precision’s intelligent packaging Equipment Business – Digital Printers
Product type Brand Product image Main characteristics
Printing reference accuracy: 1800 NPI
Improved stability and print clarity
WONDER INNO PRO SINGLE PASS Better colour printing effect
Industrial High-Definition Color Digital Printer Printing speed: up to 150 metres per
minute, to meet the needs of high-speed
printing
Printing thickness: 0.2mm-15mm
Printing material: thin paper/cardboard,
yellow and white kraft card, honeycomb
board, coated paper, etc.
Printing width up to 2500mm
Water-based dye ink/water-based pigment
waterproof ink is optional.
A cost-effective tool for bulk orders
Digital Printers
Adopts Epson's latest HD industrial
printheads.
Printing width up to 2500mm
Speed up to 700 ㎡/h
Printing thickness 1.5mm-35mm
Full suction platform printing and feeding
Coated paper and honeycomb board can
WD250++ Series Scanning Wide Format also be easily printed.
High Quality Carton Digital Printer Base accuracy 1200dpi
Water-based dye ink/water-based pigment
waterproof ink is optional.
Page 33 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Product type Brand Product image Main characteristics
Fully automatic feeder system
CMYK+W ink colour scheme is optional.
Printing quality is delicate and vivid
Colour effect comparable to offset
printing
Printing thickness: 0.2mm-20mm
Printing material: cardboard/copperplate
WD250 PRINT MASTER MULTI PASS paper, coated paper, yellow and white
Digital Printers
Digital inkjet color printing equipment
\ kraft card, etc.
Reel-to-Reel PrintingSuitable for
corrugated paper, body stickers, light box
fabric, PVC color film, decorative paper,
thin aluminum sheet, etc.Decorative
paper, thin aluminum plate,
Industrial SINGLE PASS roll-to-roll etc.Centralized printing and decentralized
high-speed digital pre-printing machine printing, cost saving
Combines two different digital printing
methods: Multi Pass high-precision
scanning and Single Pass high-speed
printing.Reduce the capital investment in
equipment, save space, labor,
MULTI PASS-SINGLE PASS All-in- maintenance and other costs, improve
One Digital Printing Machine production efficiency
Page 34 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
c. Industrial Internet industry solutions
Dongfang Digicom, a subsidiary of Dongfang Precision, serves as the primary business entity for “industrial
Internet industry solutions”.
Based on the extensive industry experience of Dongfang Precision spanning over three decades in the field of
corrugated packaging equipment, as well as guided by the Group’s strategies, the subsidiary Dongfang Digicom,
leveraging cutting-edge technologies such as the Internet of Things (IoT), cloud computing, big data, 5G, and
artificial intelligence (AI), has developed iDataPioneer, an industrial Internet platform for the packaging industry
in a broad sense.
The platform adheres to the Industrial Internet Architecture (v2.0) set forth by the Ministry of Industry and
Information Technology (MIIT), ensuring all products are secure, autonomous, and manageable. Anchored by the
three pillars of digital factory construction—connecting, data integration and analysis, and intelligent data
application. The industrial Internet platform iDataPioneer delivers a comprehensive one-stop service, spanning
from equipment connectivity for data collection to data integration, processing, analysis, and intelligent
applications. It sets benchmarks in several metrics within the industry, empowering large packaging enterprises to
adopt data-driven scientific management and decision-making, thereby facilitating their digital transformation.
Schematic diagram of the iDataPioneer Industrial Internet platform architecture
In 2024, Dongfang Digicom launched new products and modules such as “InterLink,” “Micro Mes,” and
“Equipment After-sales Service Management System” for packaging industry customers. These products can be
35 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
adapted to various brands and specifications of corrugated box printing and packaging complete line products,
including those under the Dongfang Precision brand. They can also help customers in the corrugated paper
packaging and composite paperboard industries enhance the intelligence and digitization of numerous existing
production line equipment, empowering “digital manufacturing” for packaging enterprises and assisting in the
creation of digital factories and digital workshops.
“InterLink” is a dedicated software system for managing orders and printing equipment, deeply integrating the
intelligent production management system with the HMI (Human-Machine Interface). This integration improves
operational efficiency, increases order processing capacity, and further reduces deployment costs. “Micro Mes” is
an integrated application solution based on the intelligent production management system and enterprise ERP. It
helps customers in the paper packaging printing field achieve a complete closed-loop management from order
creation, scheduling, and production to reporting. This product can be sold as an embedded system with paper
packaging printing equipment or as standalone software. It features flexible customization and rapid delivery,
helping customers in the paper packaging printing industry improve production and manufacturing intelligence
while achieving cost reduction and efficiency gains. The newly launched “Equipment After-sales Service
Management System” focuses on the after-sales service field of packaging printing equipment. Based on Dongfang
Digicom’s independently developed equipment IoT platform, it realizes intelligent management of the entire process
of customer equipment maintenance and repair through systematic after-sales service, online parts management,
full lifecycle management of equipment archives, and remote maintenance of equipment, improving the quality of
after-sales service for equipment suppliers.
d. The operational model of the intelligent packaging equipment business
R&D model: The Company has industry-leading independent design and R&D capabilities, continually
establishing high-level R&D innovation management mechanisms. The R&D team, spearheaded by industry
experts, employs a blend of long and short-term product R&D planning, supported by a market-oriented R&D
mechanism. Additionally, a robust R&D talent incentive mechanism enhances the Company’s overall technical
proficiency, cementing its leadership position in the industry.
Procurement and production model: The Company procures raw materials, such as steel plates, metal
components, and electrical parts (such as motors and PLCs), from external suppliers, while producing some core
components and corrugated rollers in-house.
The majority of the Company’s equipment products adhere to a “made-to-order production” model. Upon
receiving orders and partial deposits from customers, the Company purchases raw materials from suppliers based
on specific customer requirements and inventory levels, and develops production plans and schedules. The
Company advocates a “lean production” model for production and operational management, ensuring precise
control over BOM costs and manufacturing expenses, while continuously enhancing operational efficiency.
In the first half of 2024, the delivery period for orders of corrugated board production lines under the Fosber
Group was further shortened from 9 months in the second half of 2023 to about 6 months. The delivery period for
orders of corrugated box printing and packaging complete machine equipment under the Dongfang Precision
brand was 3 to 6 months, and the delivery period for orders of digital printing equipment under the Wonder
Digital brand was 1 to 3 months.
36 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Marketing Model: The Company employs a “direct selling + distribution” marketing model. It utilizes a direct
sales approach for the domestic market and a combination of direct sales and agent distribution for overseas markets,
tailoring the strategy to suit the unique needs of different countries and regions. This approach not only widens the
scope of sales channels and increases sales volume but also reduces market expansion and sales costs.
The Company’s complete production line and single machine products are typically one-time sales, with more
significant transaction amounts. However, accessories, software, and services can be sold multiple times throughout
the life-cycle of complete production line or single machine products. The growing number of existing equipment
sold in the downstream industry market presents a steady stream of sales opportunities for accessories, software,
and services. Additionally, providing high-quality technical support and services helps to promote the sales of
complete production line products.
In terms of the settlement of orders, the Company enjoys a high brand awareness and superior bargain power
in the industry, so it collects down payment in advance and payment by stages for the sales of corrugated cardboard
production lines and corrugated box printing and packaging equipment. Generally, 80% to 90% of the sales payment
can be collected upon the delivery of products.
B The water powersports equipment division
The subsidiary, Parsun Power, is a leading enterprise in the domestic outboard motor industry. According to
the certificate issued by the China Internal Combustion Engine Industry Association, Parsun Power’s outboard
motors ranked first in the industry for three consecutive years from 2020 to 2022. Parsun Power’s main products
are outboard motors of various specifications and different series, with horsepower ranging from 2 to 130. Its
outboard motors span a diverse power spectrum, compatible with fossil fuels, electricity, and alternative energy
sources. The majority of its product models have been CCS-, CE- and EPA-certified. These products are widely
used in water recreation, fishing, water traffic, emergency rescue, shore landing and maritime patrol.The outboard
motor products are exported to hundreds of countries and regions, including Europe, Africa, Oceania, South
America, North America, the Middle East, and Southeast Asia.
(1) Outboard motors
By the source of power, outboard motor products of Parsun Power are divided into gasoline outboard motors,
electric outboard motors, and diesel outboard motors.
Gasoline outboard motors enjoy the most abundant specifications and varieties. Parsun Power has accumulated
years of industry experience in the field and has had several proprietary technologies and applied them to products.
It has achieved mass production of the maximum 115hp gasoline outboard motors and has successfully broken the
long-term monopoly by international well-known brands in the 115hp sector. The stable and reliable quality of its
115hp gasoline outboard motors, contributing to the domestic substitution of medium- and high-horsepower
outboard motors and the improvement of the global market share of domestic brands. After successfully conquering
the 115hp gasoline model, Parsun Power's R&D team marches toward higher-horsepower models and strives the
make domestic-brand high-horsepower outboard motors take a place in the global competition of the high-
horsepower outboard motor market. In the first half of 2023, Parsun Power took it to the next level by successfully
completing the mass production and sale of 130hp gasoline outboard motors. Meanwhile. In March 2024, Parsun
Power officially released the 300-horsepower gasoline outboard motor at the Shanghai International Boat Show,
marking a full entry of domestic outboard motors and Parsun Power into the global high-end mainstream market.
Electric outboard motors are powered by batteries. They convert electric power into kinetic power through
37 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
motors. Compared with oil-fired ones, electric outboard motors are characterized by zero emissions, low noise, and
easy operation. Most of Parsun Power’s electric outboard motors are of low- and medium-horsepower, which are
mainly used in scenic spots and other sectors requiring stricter environmental protection.
Diesel outboard motors not only retain the characteristics of easy assembly, easy maintenance, and easy
operation of gasoline outboard motors but also enjoy the advantages of fuel saving, lower emissions, greater torque,
and being safer, more reliable, and easier for maintenance. Parsun Power's existing diesel outboard products are the
agent in mainland China to sell the Swedish brand OXE Marine's outboard products, models mainly include 150 hp,
175 hp, 200 hp, and 300 hp diesel outboards. These motors are mainly used in commercial transportation, offshore
oil extraction, and public law enforcement. Parsun Power is also promoting the research and development of its own
brand of diesel outboard motors.
Parsun Power has achieved a complete product line layout of “gasoline-diesel-electric” outboard motors and
will rely on its years of technical expertise and leading market share in the gasoline outboard motor field to expand
into high-horsepower diesel outboard motors and electric outboard motors.
Parsun Power's outboard motor products have stable quality and reliable performance, and some of them enjoy
comprehensive performance comparable to that of internationally well-known brands and emissions reaching
European and American standards. In the future, Parsun Power will focus on medium- and high-horsepower
outboard motors, enrich electric outboard motor production lines, continuously optimize the product structure of
outboard motors, and consolidate its leading position among domestic outboard motor manufacturers.
(2) General machines
Aside from outboard motors, Parsun Power also engages in the business of general machines. These general
machines constitute versatile power solutions and associated end-user items, featuring primarily small gasoline and
diesel engines for use in generators (like emergency power kits, and field operation power supplies), agricultural
equipment (e.g., water pumps, cultivators), gardening machinery (e.g., lawnmowers, chainsaws), compact
construction tools (e.g., cutters, tampers, concrete mixers, and levellers), among other miscellaneous applications.
These products find extensive usage across various sectors.
Parsun Power's general machine products mainly include gasoline engines, gasoline generator sets and gasoline
water pump sets. Gasoline engines, primarily single-cylinder four-stroke units, utilize gasoline as fuel and are
adaptable for use in agricultural machinery, gardening equipment, and other small machinery applications. Gasoline
generator sets combine these engines with generators, functioning as standby power sources. The gasoline water
pump sets feature centrifugal pumps driven by gasoline engines and are extensively utilized in agricultural irrigation,
livestock watering, and similar domains.
(3) The operational model of the water powersports equipment business
Parsun Power follows an industry-standard sales model that primarily relies on distribution, supplemented by
direct selling. The demand for outboard motors, which are the company’s main product, is mainly distributed
overseas, with end customers scattered throughout the world. Adopting a distribution-centric sales model enables
Parsun Power to reach end customers to the fullest extent possible.
Parsun Power produces outboard motor products independently, utilizing sales demand forecasts, customer
orders, product inventory status, material delivery progress, and product production cycles to formulate production
38 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
plans. The company then organizes the production of components in accordance with specialized processes and
procedures. In procurement, Parsun Power following the principle of “sales determine production, production
determines procurement,” Parsun Power determines the procurement requirements for its outboard motor business,
while also taking into account reasonable safety stock.
II Core Competitiveness Analysis
The analysis of the Company’s core competitiveness in the Reporting Period is as follows:
(I) Industry-leading technology and strong capabilities of R&D and innovation
The Company is at the forefront industry-wide in China in terms of R&D and technology. In terms of
intellectual property rights, as at the end of 2023, the Company had been granted a total of 420 domestic and foreign
patents, an increase of 49 as compared to the end of 2022, and a total of 75 software copyrights, an increase of 42
as compared to the end of 2022.
1. The smart corrugated packaging equipment business:
The middle- and high-end corrugated cardboard production lines under the Fosber brand are industry-leading
in speed, width, precision, stability, reliability, failure rate, and intelligence, characterized by high efficiency, energy
saving, stability, reliability, intelligent control, and easy operation and maintenance. The corrugated cardboard
production lines under the Fosber brand boast machinery with high technology, quality, and reliability, advanced
intelligent software systems, and technical support services and have won the praise of customers worldwide.
Fosber Asia has launched the “Instant Set” unit and applied it to corrugated cardboard production lines. Each
cutting blade and indentor are independently controlled by the servo motor, thus significantly improving the speed
of the order change of the dry section of corrugated lines and shortening the average time of order change from 8-
15 seconds to within 3 seconds. Moreover, it can better support the quick order switch of downstream customers
and meet the characteristics of multiple types and small batches of paper packaging orders in China.
Fosber Group has control systems that are developed based on Industry 4.0 technologies for its own high-end
corrugated cardboard production lines, including functional modules such as Syncro4, PCS (Process Control
System), Pro/Care, and Pro/Quality. These systems can help achieve highly accurate, digital and intelligent
management and control of the machine status, production process, routine maintenance, technical support, and
quality inspection of corrugated cardboard production lines. Advanced technologies, such as sensors, Advanced
Reality (AR), algorithm analysis, big data, and cloud computing, are adopted in these systems to realize the full
automation and intelligence of the whole process of production and processing of corrugated cardboards, monitor
the temperature, humidity, heat, folds, and other data of corrugated cardboard production lines in real time, and
monitor the dashboard dynamically in the production process. Through data-based production performance analysis
and cost analysis, it helps customers improve production efficiency. Through the “self-diagnosis system”, it
identifies abnormal operations and sends alerts, and identifies solutions in an intelligent manner. Through the “big
data analysis system” module, it collects real-time data in the corrugator production process through sensors, outputs
recommended configuration parameters and improvements through algorithm analysis, and helps customers
improve the effectiveness of production process control.
39 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
How Fosber Group’s PRO Series Intelligent Production Management Information Technology System Works
2. The digital printer business:
Wonder Digital is a leader in the domestic digital printer industry, a State-level High-tech Enterprise, and a
State-level “Little Giant” Enterprise with specialties, refined management, unique technologies and innovation.
With a complete digital printer offering, Wonder Digital breaks through the edge of mechanical engineering, bridges
the physical world and the digital world, and provides industry customers with a full range of digital printing
solutions.
Wonder Digital’s UV digital color printers and high-speed digital printers have a baseline printing accuracy of
1200 dpi. Their color printing effects in terms of clarity, detail, color brightness, and saturation are comparable to
traditional offset printing machines. In 2024, Wonder Digital released the new WONDER INNO PRO SINGLE
PASS industrial high-definition color digital printer, with a baseline printing accuracy of up to 1800 NPI. This
represents a revolution in domestic digital printing technology in the field of paper packaging printing, transitioning
from color printing to high-definition color printing. This device provides the color printing packaging field with a
high-definition color digital printing solution that can achieve an effect comparable to offset printing through digital
printing technology.
Wonder Digital’s large format roll to roll high speed digital printer outperforms domestic competitors in terms
of width and resolution and is competitive on the market in terms of size, energy consumption, and cost-performance.
3. The water powersports equipment business:
The subsidiary Parsun Power is committed to independent R&D and innovation of China-made outboard
motors, and is a state-level "Little Giant" enterprise with specialties, refined management, unique technologies and
innovation, a national high-tech enterprise, the Provincial Outboard Motor Engineering and Technology Research
Institute of Jiangsu, a technology center recognized by Jiangsu Province, a leading enterprise in China's internal
combustion engine industry and a council member of the Small Gasoline Motor Branch of China Internal
40 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Combustion Engine Industry Association. Its outboard motor products have won the Certificate for Industrialization
Demonstration Program under the National Torch Plan and honors including Innovative Products in Chinese
Machinery Industry, Products of Well-known Brands in Jiangsu, and Products of Well-known Brands in Suzhou.
Parsun Power has been developing in the outboard motor industry for over ten years and has had several China-
leading core technologies and accumulated rich scientifically innovative achievements after long-term R&D input
and technical accumulation.As of 31 December 2023, Parsun Power has been granted a total of 73 patents, including
11 invention patents; and it has won the Second Prize of China Machinery Industry Science and Technology Award
for twice.Parsun Power is one of the main drafters of two industry standards including Outboard Gasoline Engines-
General Requirements (JB/T 11875-2014) and General Technical Specification of Outboard Engine (CB/T 4505-
2020).
In 2021, Parsun Power successfully mass-produced a 115-horsepower outboard motor, breaking the long-term
monopoly of internationally renowned brands in this power segment. In 2023, Parsun Power successfully completed
the mass production and sales of a 130-horsepower outboard motor. In March 2024, Parsun Power officially released
the 300-horsepower outboard motor at the Shanghai International Boat Show. Currently, Parsun Power has
overcome key core technologies for high-horsepower outboard motors, successfully designing a high-power
gasoline outboard motor with a large-displacement V6 vertical shaft engine structure. This design solves the testing
difficulties of high-power gasoline outboard motors and innovatively applies engineering combustion theory to the
combustion and emission optimization of outboard motors, addressing many challenges in the development of high-
horsepower outboard motors for domestic brands.
(II) Complete layout in the corrugated packaging machinery industry chain and the most complete and
richest product portfolio in the industry
Among enterprises of the same type in the domestic corrugated packaging machinery industry, Dongfang
Precision has the most complete and comprehensive industry chain layout, with its business covering almost all key
processes in the corrugated packaging production and processing business chain. Meanwhile, the Company has the
most complete and richest corrugated packaging production line equipment in the industry, making it capable of
meeting the demands for complete production line and single machine products of different market positioning,
different customer types and dozens of specifications and models, second to none in China.
1. Corrugated cardboard production lines
In the area of “high-end smart corrugated cardboard production lines”, the subsidiary Fosber Group offers
S/Line and Pro/Line corrugated cardboard production lines under the brand of Fosber, Quantum Line microflute
corrugated board production lines, as well as corrugated and pressure rollers (key components of corrugated
cardboard production lines), among others. It provides medium- and high-end corrugated cardboard production lines
of various specifications and prices for medium and large corrugated cardboard manufacturers across the world.
The corrugated lines of the Fosber brand are applicable for producing corrugated cardboard with a thickness
of 2mm to 13mm, known for their high load-bearing capacity, excellent shock resistance, plasticity, and
environmental performance. The resulting corrugated cardboard is extensively used in fields such as logistics and
express delivery, furniture and household appliances, and electronic product packaging, serving as the outer
packaging for various types of corrugated boxes. The Quantum Line production line of the subsidiary QCorr is
41 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
primarily used for creating solid fiberboard below 2mm and microflute corrugated board. These corrugated board
products are known for being lightweight, strong, moisture-resistant, and environmentally friendly. As such, they
are widely used in offset carton packaging, high-end products, electronic products, and cultural and artistic product
packaging. From the perspective of end market, the three major series of corrugated cardboard production lines of
Fosber Group, S/Line, Pro/Line, and Quantum Line, are complementary, achieving full coverage of the end market
as a product portfolio.
Based on more than 40 years of experience in the corrugated and pressure roller segment, the subsidiary Tirua
Group is familiar with a wide range of brands and specifications of corrugated cardboard production lines in the
market, and is able to supply corrugated and pressure rollers compatible with these corrugated board production
lines. Additionally, the company can design and produce customized rollers to meet the specific needs of customers,
taking into account their machine types, special coating requirements, and paper characteristics.
2. Corrugated box printing and packaging production lines
Dongfang Precision (China) and Dongfang Precision (Europe) offer high quality corrugated converting line
and single machine products for China and the rest of the world. These products, which are of dozens of
specifications and different market positioning, cover fixed type/open-close type, top printing/bottom printing,
converting line (inline)/single machine, etc. They are the manufacturers with the widest range of products in this
segment across the world.
3. Digital printers
Wonder Digital possesses four major series of digital printers that cover various types and specifications, from
postprinting to pre-printing, from water-based dye/pigment, water-based ink to spot colour UV ink, from boxes,
offset cartons to sheet metal. The products also support a range of application modes and scenarios, from single-
sheet printing to exchange orders seamlessly with variable data printing, and from single machine printing to
integration with ERP systems. With a complete digital printer portfolio, Wonder Digital serves as a "supermarket
of digital printers", providing domestic and foreign industrial customers with a wide range of low-, medium-, and
high-end digital printers to satisfy the needs of these customers from different market segments.
Apart from digital printers, Wonder Digital also sells supporting units after printing section including slotting
and varnish coating units, as well as special ink products that are compatible with its own-brand equipment. These
special ink products, including water-based dye ink, water-based pigment ink, and UV ink.
(III) Profound Know-How experience and experienced team in the industry
Dongfang Precision has an experienced team with profound Know-How experience in the industry, which has
20 years of experience in both global and domestic industry markets and has an in-depth understanding of the
Company's industrial layout, development planning, R&D approach, production operation, marketing, and team
management. The core management team has a broad vision, can promptly keep up with the general development
trend of the smart corrugated packaging equipment manufacturing industry, and can enable the Company to achieve
steady and sustainable development through forward-looking strategic planning and layout.
As an enterprise that practices the management model of professional manager team and attaches great
importance to authorization management, Dongfang Precision takes "a wealth of talent" and "cultural guidance" as
the basis of its corporate strategy and corporate culture, and develops its organizational capacity, improves the
42 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Group's control over all business units and subsidiaries and integration of resources and assistance and aid, improves
the Group's overall operational efficiency and reduces the Group's operation cost and promotes the Company's
healthy and sustainable development by optimizing the organizational structure design, standardizing the
authorization and control system, implementing medium- and long-term incentives and further developing the
corporate culture.
(IV) High brand popularity and customer recognition worldwide
Dongfang Precision-branded corrugated box printing and packaging production line equipment, Fosber-
branded corrugated cardboard production lines, Wonder Digital-branded digital printers, Quantum-branded
corrugated cardboard production lines, Tirua-branded corrugated rollers and Parsun-branded outboard motors of
the Company are enjoying considerable brand recognition and industry influence at home and abroad.
In the field of intelligent packaging equipment: The subsidiary Fosber Group, established in 1978, stands as
one of the world's top two players in high-end corrugated cardboard production lines. Its Fosber-branded corrugated
lines enjoy strong brand recognition and customer favour in markets like Europe, North America, and Latin America.
Tirua Group, founded in 1921, boasts almost four decades of expertise in corrugated and pressure rollers, with
products distributed to over 60 countries globally. The subsidiary Qcorr, previously known as Agnati, an esteemed
Italian supplier of corrugated cardboard production lines with over 80 years' experience, commands a high standing
internationally. Dongfang Precision's corrugated box printing and packaging lines lead among Greater China
competitors, exporting to over 60 countries. Wonder Digital, a Chinese front-runner in the area of digital printers,
ships its digital printers to over 80 countries, boasting a market presence of over 1,600 installations.
With the constant growth in concentration and the continuous upgrading of capacity in the downstream industry,
large- and medium-sized packaging enterprises will need more middle- and high-end production line equipment,
digital printing solutions, and industrial Internet industry solutions. The Company has seized opportunities and
formed a better competitive edge by virtue of its stable business partnership during the industry changes.
In the field of water powersports equipment: The subsidiary Parsun Power is a top-ranking manufacturer in the
domestic outboard motor industry. According to the certificate issued by the China Internal Combustion Engine
Industry Association, Parsun Power’s outboard motors ranked first in the industry for three consecutive years from
2020 to 2022. Following extensive industry immersion, the Parsun Power brand has garnered significant recognition
and accolades, such as being named a "famous brand product of Jiangsu province" and a "famous brand product of
Suzhou city." Internationally, Parsun Power's distribution network extends to hundreds of countries and regions
across Europe, Africa, Oceania, South America, North America, the Middle East, and Southeast Asia. Domestically,
the company's sales footprint blankets most provinces and regions in China. Backed by dependable product quality
and comprehensive after-sales service, Parsun Power has forged enduring partnerships with numerous clients
worldwide.
(V) Global layout of business assets
The Company mainly serves customers in the corrugated packaging industry worldwide, and has realized the
global layout of its business assets:
In Asia, the Company has three domestic R&D and production bases in Foshan, Suzhou, and Shenzhen, in
Europe, it has R&D and production bases in Lucca, Bologna and Milan, Italy, and Pamplona, Spain, and in North
43 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
America, it has a production base in Green Bay, Wisconsin, USA. With such a layout in the three continents, the
Company has formed a global marketing and service network.
An internationalized marketing and service network enables the Company to seize all opportunities in the
global industry market and to provide product machinery and technical services for customers in the industry in
over 100 countries and regions worldwide.
An internationalized product R&D, production and supply chain layout enables the Company to make prompt
responses worldwide and meet customer demands and is conducive to the Company's integration of global resources,
improvement of resource allocation efficiency, complement of advantages, reduction of the total cost and
improvement of the allocation efficiency, so that the Company can be increasingly competitive in the world when
it is operated as a group.
(VI) Strong capabilities of strategic control and integration
Since listing, the Company has kept expanding its presence in the upstream and downstream of the industry
chain of its core business. After years of practice, the Company has developed strong strategic control and deep
integration of its business divisions and accumulated rich experience and practice, through the deep perception of
the industry, forecast of industry trends, and a clear understanding of its own strategic development objectives.
Strategic control is the core capability that the Company relies on to manage its various business entities. In
practice, the Company adjusted the strategic development plans, business models, product portfolios, market
strategies, and core management teams of the companies acquired with its in-depth understanding of the industry,
forward-looking foresight to the development trend of the industry, clear awareness of its strategic development
objectives, and well-established understanding of the capabilities and resources of all its business entities, so that
these companies can be energized for new growth and step on a new development stage.
In terms of post-investment integration, the Company has formulated a set of effective controls for post-
investment integration, including the corporate governance standardization policy, the “Board of Directors-
Supervisory Committee-General Meeting” operation mechanism, the strategic and financial control system,
decentralized authorization management, complete audits, and management incentives, forming a set of measures
44 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
for effective controls for post-investment integration with the Company’s own characteristics to secure the effective
implementation of the strategic plan.
● Corrugated cardboard production lines: Fosber Group recorded a compound annual growth rate (CAGR) of
net profit of 26%
After acquiring the controlling stake of Fosber Italy in 2014, the Company and its management took several
effective measures for integration, helped Fosber Group adjust its strategic planning and business strategies and
standardize the authorization management system, implemented the performance incentive policy for the core
management, and strengthened financial control.Such measures have successfully stimulated Fosber Group’s
business vitality. From 2015 to 2023, the CAGR of the operating revenue of Fosber Group was approximately 15%,
and that of its net profit was 26%.
● Water powersports products: Parsun Power’s CAGRs of operating revenue and net profit exceeded 20%
After acquiring the controlling stake of Parsun Power in 2015, the Company helped Parsun Power streamline
and adjust its strategies, develop the new development roadmap, increase inputs in technology, products, and R&D,
strengthen the marketing force, and improve the efficiency of the supply chain and production. It also supported
Parsun Power to introduce excellent talent for a more powerful core team. These measures enabled Parsun Power
to realize continuous and stable growth. From 2016 to 2023, both CAGRs of the operating revenue and net profit
of Parsun Power stood at 20%.
● Tirua Group and, the manufacturing pioneer, Agnati, were expanded to effectively stimulate new
momentum of established enterprises
In 2019 and 2020, the Company acquired the relevant business assets of Tirua Group, a nearly century-old
corrugated roller manufacturer, and merged Agnati, an Italian corrugated cardboard production line manufacturer
enjoying a high reputation for more than eight decades, into QCorr, a subsidiary of Dongfang Precision. The
Company and its management fully streamlined and standardized the development strategies, R&D planning,
product positioning, marketing, team building, and authorization management of these two established enterprises,
based on which optimization and adjustment were performed. These measures effectively stimulated the vitality of
the two old European companies and the enthusiasm of their manager teams.In 2023, subsidiaries QCorr and Tirua
Group both achieved good growth in annual operating revenue, the best annual results since they became members
of the Dongfang Precision family.
Relying on its strong strategic control and integration of business divisions, based on “mutual respect and
mutual trust” and with an open mind seeking common grounds while putting aside differences, the Company
effectively integrated all its business entities continuously released the synergy with the industry chain. Moreover,
it conducted active practice and accumulated precious experience in helping domestic private enterprises go global
and perform overseas industrial M&As and overseas companies carry out post-investment integration and
management optimization. Concurrently, such practice and experience facilitated the Company to lay a solid
foundation and provided strong support for the Company to promote the implementation of the five-year strategic
planning and realize long-term, sustainable, and steady development.
45 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
III Analysis of Principal Operations
i Overview
In the first half of 2024, China’s economy continued to show a positive recovery trend, operating steadily with
progress. According to data from the National Bureau of Statistics, in June 2024, China’s manufacturing PMI for
equipment manufacturing was 51.0%, up 0.3 percentage points from the previous month, marking the fourth
consecutive month of expansion. The transformation and upgrading of the manufacturing industry continue to
advance, and new productive forces continue to grow.
Under the strong leadership of the board of directors and the management team, all employees worked hard
and made progress in the first half of 2024, achieving stable growth in the company’s core main business. From
January to June 2024, the company achieved a total operating revenue of approximately 2.161 billion yuan, a year-
on-year increase of 3.77%. The net profit attributable to shareholders of the listed company was approximately 164
million yuan, a year-on-year decrease of 20.50%. However, the net profit attributable to shareholders of the listed
company after deducting non-recurring gains and losses was approximately 229 million yuan, a year-on-year
increase of 40.97%.
Unit: RMB 10,000
Operating
Gross profit
Business division revenue in YoY change YOY Change
margin in 2024H1
2024H1
Intelligent packaging
equipment 178,305.86 6.88% 33.86% 3.95%
Corrugated cardboard
production lines 146,960.55 10.98% 34.01% 6.02%
Corrugated box printing and
packaging production lines 22,027.40 -20.86% 34.57% -1.06%
Digital printers 9,317.91 41.78% 29.77% -14.52%
Water powersports equipment 37,813.03 -8.75% 23.64% -3.17%
Benefiting from the significant improvement in the supply constraints of chips, electronic components, and
raw materials since 2022, as well as the decline in raw material and energy prices, the operating costs of Fosber
Group, the main business unit of Dongfang Precision’s corrugated board lines, decreased year-on-year. Additionally,
the reliability of the supply chain was significantly improved. This led to an increase in the overall gross profit
margin of the company’s intelligent packaging equipment business by 3.95% compared to the same period last year.
Supported by efficient “lean production,” Fosber Group shortened the delivery period for orders from about 9
months in the second half of 2023 to about 6 months in the first half of 2024.
ii Main Business Operations During the Reporting Period
From January to June 2024, the intelligent packaging equipment sector achieved a total operating revenue of
46 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
1.783 billion yuan, a year-on-year increase of 6.88%, and the gross profit margin increased by 3.95 percentage
points year-on-year, further enhancing the profitability of the sector as it scaled up.
1. The intelligent packaging equipment division
A. Corrugated Board Production Line Business
a) Overseas Segment
From January to June 2024, the subsidiary Fosber Group achieved a total operating revenue of 1.352 billion
yuan, a year-on-year increase of 12.80%, and a net profit of 203 million yuan, a year-on-year increase of 76.4%.
From the first half of 2018 to the first half of 2024, Fosber Group’s compound annual growth rate (CAGR) of
operating revenue was 13%, and the CAGR of net profit was 31% (the above operating revenue and net profit are
based on Fosber Group’s consolidated financial statements).
In the first half of 2024, Fosber Group maintained stable operations, and supply chain management efficiency
continued to improve. The decline in raw material and energy costs in the European market further enhanced cost
reduction and efficiency improvement. Fosber Group adhered to “lean production,” taking measures to increase
efficiency and reduce costs in response to external changes, effectively promoting the improvement of the overall
gross profit margin during the reporting period.
In the European and North American markets, Fosber Group has maintained close cooperation with leaders
and large enterprises in the corrugated packaging industry for many years, becoming a reliable partner with good
industry customer recognition and brand reputation. During the reporting period, although mergers and acquisitions
among several major corrugated packaging companies in the European and North American markets slightly slowed
down capital expenditures in the corrugated packaging industry in these regions in the first half of 2024, Fosber
Group maintained a stable development momentum due to its stable market position and ample orders on hand. As
of the end of June 2024, the order delivery schedule for Fosber America’s orders had been extended to the second
quarter of 2025. Meanwhile, in Latin America, North Africa, and South Africa, Fosber Group achieved better
growth, especially receiving full-line orders from several countries in the Latin American market. Additionally, the
new service center established in Mexico this year has completed preliminary work and will begin normal operations
within 2024.
During the reporting period, the company increased its efforts in the expansion of corrugated packaging
equipment parts and after-sales support business. The subsidiary Tirua Group, while serving as a core parts supplier
of Fosber-branded corrugated lines and supplying corrugated rollers and pressure rollers to Fosber Group, also
provided high-performance corrugated rollers and pressure rollers to third-party customers in Europe and the
Americas (including other brands of corrugated board production line manufacturers and corrugated packaging
manufacturers). During the reporting period, Tirua Group achieved steady revenue growth, with significant
progress in business expansion to third-party customers, further enhancing its competitiveness in the European and
American markets. With the implementation of business plans and “lean production,” Tirua Group’s production
capacity steadily increased, achieving significant cost reduction and efficiency gains. These factors collectively led
to a net profit growth of over 20% for Tirua Group in the first half of 2024.
b) Domestic Segment
47 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
As a professional supplier of mid-to-high-end corrugated board production lines rooted in China and expanding
across Asia, Fosber Asia achieved positive results in “going global” during the reporting period. The overseas
market machine sales revenue increased by 17% year-on-year. In terms of parts and services, several equipment
technical transformation and upgrade projects from both domestic and international customers were secured in the
first half of the year, with parts and service sales revenue increasing by more than 30% year-on-year. In the domestic
market, efforts such as establishing model factories and participating in industry exhibitions continuously
strengthened domestic industry customers’ recognition of flagship products like the S/Line 370 high-speed
corrugated line and the “Instant Set” dual-module slitter-scorer, which better supports “short-run/small-batch”
production. During the reporting period, several machine orders were received from different regional markets,
assisting in the digital and intelligent upgrade of the domestic corrugated board manufacturing industry.
During the reporting period, Fosber Asia’s supply chain stability and procurement costs continued to improve.
The localization rate of main products, S/Line and Pro/Line, steadily increased. While maintaining a good level of
order production lead times, cost reduction, quality improvement, and efficiency enhancement further strengthened
the market competitiveness of Fosber Asia’s high-end corrugated lines. As the industry’s influence increased, more
and more industry customers partnered with Fosber Asia, becoming users of domestic high-end corrugated board
production lines.
The subsidiary Tirua Asia, responsible for localizing the production of Tirua brand corrugating rolls and
pressure rolls, completed the equipment commissioning and process verification work for the new factory in the
first half of 2024, initially achieving the capability for mass delivery of corrugating rolls and pressure rolls.
B. Corrugated Box Printing and Packaging Line Business
Overseas Market: In the first half of 2024, Dongfang Precision (China) achieved significant breakthroughs in
its overseas business, securing the first order for its new fixed linkage line in the European market. Dongfang
Precision (China) adopts a combined “distribution + direct sales” model for its overseas market business. Since
2023, the company’s overseas business personnel have intensified efforts to expand the direct sales market, focusing
on countries along the “Belt and Road.” During the reporting period, new overseas direct sales markets and multiple
overseas machine orders were obtained. Starting from the first quarter, Dongfang Precision (China) launched a four-
month “Key Overseas Market Inspection and Service Training Project,” sending teams to visit several countries to
provide timely and efficient services to overseas customers, earning praise for the “China Speed.” By strengthening
after-sales support services, the company offers not only machinery and equipment but also comprehensive lifecycle
services and solutions to overseas industry customers.
Domestic Market: During the reporting period, Dongfang Precision (China) received multiple “smart factory
logistics” orders in the domestic market. The company aims to create “smart factories” for its customers by
providing intelligent logistics transportation systems under the Dongfang Precision brand, covering both raw paper
logistics and cardboard logistics. This achieves visualized data and digital and intelligent logistics management
processes, enhancing the digital and intelligent levels of factory workshops while reducing costs and improving
quality and efficiency.
Production Operations: Dongfang Precision (China) continues to promote “energy saving and consumption
reduction, cost reduction, and efficiency improvement.” Since passing acceptance in 2023, the “digital workshop”
48 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
has been operating well. By introducing intelligent equipment, data collection and analysis, production process
optimization, and artificial intelligence assistance, the company optimizes management in areas such as order
progress, production performance, capacity analysis, quality management, product traceability, and inventory
management. Additionally, the company has taken measures such as improving production processes and
strengthening supply chain management to further reduce overall costs, improve efficiency, and enhance profit
margins. From January to June 2024, Dongfang Precision (China) achieved a year-on-year net profit growth of 12%.
C. Digital Printing Equipment Business
From January to June 2024, Wonder Digital achieved an operating revenue of 93.1791 million yuan, a year-
on-year increase of 41.9%, setting a new high for operating revenue in the first half of the year since 2022.
During the recovery and development of the national economy, the recognition of digital printing equipment
has continued to increase, especially among the numerous tertiary factories in the corrugated paper packaging
industry. Compared to traditional printing and packaging equipment, digital printing equipment has many features,
such as lower initial one-time investment, better print data variability, higher adaptability to the flexibility of end
packaging, and the characteristics of short-run and quick-turnaround marketing needs. In the current market
environment, it helps tertiary factory customers achieve higher turnover rates and timely delivery rates, thereby
achieving higher investment returns.
In the first half of 2024, Wonder Digital participated in four large-scale domestic and international exhibitions,
including the Drupa exhibition, the world’s largest trade show for the printing and graphic industry held for the first
time in nearly four years, and the 2024 South China International Corrugated Exhibition. With the theme “Digital
Inkjet, Colorful Printing Future,” Wonder Digital released the new WONDER INNO PRO SINGLE PASS industrial
high-definition color digital printer for the color printing packaging field. This innovation represents a revolution
in domestic digital printing technology in the field of paper packaging printing, transitioning from color printing to
high-definition color printing. This device provides the color printing packaging field with a high-definition color
digital printing solution that can achieve an effect comparable to offset printing through digital printing technology.
By strengthening the construction of the overseas sales network and market expansion efforts, Wonder Digital
achieved positive results in product sales in overseas markets. The WD250++ scanning high-definition digital
printer series achieved good sales performance in both domestic and international markets
2. Marine Power Equipment Segment
The subsidiary Parsun Power’s outboard motor business continues to benefit from the demand for outboard
motor products driven by water leisure activities in overseas markets and the trend of domestic substitution for mid-
to-high horsepower outboard motors. In March 2024, Parsun Power officially released a 300-horsepower gasoline
outboard motor at the Shanghai International Boat Show, marking the full entry of domestic outboard motors and
Parsun Power into the global high-end mainstream market.
ii Analysis of key financial indicators
Unit: RMB yuan
Reason for any
2024H1 2023H1 Change (%)
significant change
49 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Operating revenue 2,161,188,907.40 2,082,606,453.72 3.77% No significant change.
Operating cost 1,468,050,770.60 1,472,630,144.11 -0.31% No significant change.
Selling expenses 123,119,378.16 119,248,680.76 3.25% No significant change.
Administrative
161,949,583.52 174,818,664.63 -7.36% No significant change.
expenses
Finance costs Mainly due to the
increase in interest
-12,794,161.84 -4,539,148.71 181.86%
income in the reporting
period.
Mainly due to the
increase in income tax
Income tax expenses 90,957,489.73 56,229,619.60 61.76%
payable during the
reporting period.
R&D expenses 50,366,067.58 59,929,020.05 -15.96% No significant change
Mainly due to the
Net cash generated decrease in cash inflow
from/used in operating 118,570,463.65 191,436,066.52 -38.06% from operating
activities activities in the
reporting period.
Mainly due to the
Net cash generated Company's investment
from/used in investing -160,975,009.11 20,667,431.59 -878.88% in financial assets
activities during the reporting
period.
Net cash generated Mainly due to the
from/used in financing combined effect of
activities loan repayment and
-94,150,183.88 -135,534,045.74 -30.53%
recovery of loan
deposits in the
reporting period.
Net increase in cash and Mainly due to the
cash equivalents impact of net cash
-162,323,576.70 129,900,525.40 -224.96% flows from investing
activities in the
reporting period.
Unit: RMB
2024H1 2023H1
As a % of total As a % of total Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%) (%)
Total 2,161,188,907.40 100% 2,082,606,453.72 100% 3.77%
By operating division
Intelligent
2,161,188,907.40 100.00% 2,082,606,453.72 100.00% 3.77%
manufacturing
50 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
By product category
Corrugated
cardboard 1,469,605,534.73 68.00% 1,324,169,018.63 63.58% 10.98%
production lines
Corrugated box
printing and
packaging
313,453,089.77 14.50% 344,038,055.26 16.52% -8.89%
production line
equipment(Including
Digital Printers)
Water powersports
products and general 378,130,282.90 17.50% 414,399,379.83 19.90% -8.75%
machines
By operating segment
Mainland China 308,411,411.62 14.27% 367,898,338.78 17.67% -16.17%
Other countries and
1,852,777,495.78 85.73% 1,714,708,114.94 82.33% 8.05%
regions
(2) Operating Division, Product Category or Operating Segment Contributing over 10% of Operating
Revenue or Operating Profit
√ Applicable □ Not applicable
Unit: RMB
YoY change YoY change Change in
Operating Gross profit
Cost of sales in operating in cost of gross profit
revenue margin
revenue (%) sales (%) margin (%)
By operating division
Intelligent
2,161,188,907.40 1,468,050,770.60 32.07% 3.77% -0.31% 2.78%
manufacturing
By product category
Corrugated
cardboard 1,469,605,534.73 969,756,942.02 34.01% 10.98% 1.70% 6.02%
production lines
Corrugated box
printing and
packaging
313,453,089.77 209,569,912.21 33.14% -8.89% -2.88% -4.14%
production line
equipment(Including
Digital Printers)
Water powersports
products and general 378,130,282.90 288,723,916.37 23.64% -8.75% -4.80% -3.17%
machines
By operating segment
Mainland China 308,411,411.62 239,827,136.65 22.24% -16.17% -15.16% -0.93%
Other countries and
1,852,777,495.78 1,228,223,633.95 33.71% 8.05% 3.22% 3.11%
regions
Under the circumstances that the statistical caliber of the Company's main business data is adjusted in the Reporting Period, the
Company's main business data that adjusted according to the caliber at the end of the Reporting Period
51 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
□ Applicable √ Not applicable
IV Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB yuan
Amount As a % of gross profit Primary source/reason Recurrent or not
Mainly due to the
change in investment
income recognized
from the
Return on investment -8,194,916.20 -2.94% Yes
implementation of
investments in
securities during the
period.
Mainly due to changes
in fair value recognized
Gain/loss on changes in
-85,374,294.70 -30.67% in investments in Yes
fair value
securities implemented
during the period
Mainly due to Not
provision for decline in
value of inventories
Asset impairment loss -5,743,282.79 -2.06%
and impairment of
contract assets during
the period.
Non-operating income 939,908.99 0.34% No significant change Not
Non-operating Not
389,972.29 0.14% No significant change
expenses
V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
52 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
UUnit: RMB yuan
30 June 2024 31 December 2023 Reason for any
Change in
As a % of total As a % of total significant
Amount Amount percentage (%)
assets assets change
Cash and bank No significant
1,557,965,316.51 21.23% 1,826,419,904.49 24.23% -3.00%
balances change.
Accounts No significant
842,776,537.22 11.48% 904,003,975.47 11.99% -0.51%
receivable change.
No significant
Contract assets 46,416,016.67 0.63% 45,946,377.14 0.61% 0.02%
change.
No significant
Inventories 1,300,425,341.66 17.72% 1,182,411,055.68 15.69% 2.03%
change.
Long-term
equity 0.00 0.00% 0.00% 0.00% 0.00% N/A
investments
No significant
Fixed assets 114,307,542.37 1.56% 117,265,884.84 1.56% 0.00%
change.
Construction in No significant
613,804,454.53 8.36% 611,851,577.04 8.12% 0.24%
progress change.
Right-of-use No significant
260,781,111.24 3.55% 195,557,097.80 2.59% 0.96%
assets change.
Short-term No significant
75,944,108.52 1.03% 82,342,398.83 1.09% -0.06%
borrowings change.
Contract No significant
93,156,553.78 1.27% 370,549,972.80 4.92% -3.65%
liability change.
Long-term No significant
553,691,546.87 7.54% 645,608,919.34 8.56% -1.02%
borrowings change.
Lease No significant
133,690,882.97 1.82% 79,107,701.15 1.05% 0.77%
liabilities change.
Cash and bank No significant
60,173,070.42 0.82% 65,861,441.32 0.87% -0.05%
balances change.
Financial
No significant
assets held for 607,015,754.09 8.27% 682,625,442.45 9.06% -0.79%
change.
trading
2、Overseas assets that take up a large percentage of the Company’s net asset value:
√ Applicable □ Not applicable
As a % of
Control
the Any material
Asset value Management measures to
Asset Source Location Return Company’s impairment
(RMB) model protect asset
net asset risk or not
safety
value
Integration
100% of strategic
Producing
interest control,
and
of M&A 1,126,610,856.68 Italy authorisation Good 23.02% Not
marketing
Fosber control,
by itself
S.p.A. operational
control and
53 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
financial
management
Integration
of strategic
control,
100% Producing
authorisation
interest and
M&A 24,358,650.35 Italy control, Good 0.50% Not
of EDF marketing
operational
S.R. L by itself
control and
financial
management
54 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
3. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB yuan
Cumulative fair-
Gain/loss on fair- Impairment
value changes Purchased in the
Item Opening amount value changes in allowance for the Sold in the period Other changes Closing amount
recognized in period
the period period
equity
Financial assets
1. Financial assets
held for trading
(exclusive of 651,296,267.76 -66,675,431.51 834,405,063.93 826,165,733.96 592,860,166.22
derivative
financial assets)
2. Derivative
31,329,174.69 -18,702,002.81 3,944,397.53 2,415,981.54 14,155,587.87
financial assets
3.Other non-
current financial 461,278,259.67 77,777,778.00 10,000,000.00 -979,545.61 528,076,492.06
assets
Subtotal of
1,143,903,702.12 -85,377,434.32 916,127,239.46 838,581,715.50 -979,545.61 1,135,092,246.15
financial assets
Other non-current
10,248,630.14 164,547.94 10,413,178.08
financial assets
Total of the above 1,154,152,332.26 -85,212,886.38 916,127,239.46 838,581,715.50 -979,545.61 1,145,505,424.23
Financial
138,319,682.01 -3,139.62 327,771.81 161,616.03 -425,746.97 138,056,951.20
liabilities
Indicate whether any significant change occurred to the measurement attributes of the major assets in the Reporting Period.
□ Yes √ No
55 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
4. Assets to which the Company’s Rights Were Restricted as at the Period-End
Unit: RMB yuan
Item Closing carrying amount Reason for restriction
Cash and bank balances 47,774,281.37 Deposits used for obtaining bank acceptance bills and guarantees, etc.
Fixed assets 63,977,965.43 For bank loans obtained by subsidiaries
Total 111,752,246.8
56 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
VI Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
Total investment amount in 2024H1 (RMB) Total investment amount in 2023H1 (RMB) Change (%)
970,338,776.80 957,152,298.32 1.38%
2. Significant Equity Investments Acquired in the Reporting Period
□ Applicable √Not applicable
3. Significant Non-Equity Investments of which the Acquisition Was Uncompleted in the Reporting Period
□ Applicable √ Not applicable
57 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB yuan
Measu Cumulative
remen Gain/loss on fair- fair-value Fundin
Security Security Security Initial investment Opening carrying Purchased in the Gain/loss in the Closing carrying Accounti
t value changes in the changes Sold in the period g
type code name cost amount period period amount ng title
metho period recognized in source
d equity
Domestic
Financial
ally/
688563.S Baimtec Fair assets Self-
overseas 73,174,942.80 73,174,942.80 -9,947,966.08 -9,947,966.08 63,226,976.72
H Material value held for funded
listed
trading
stocks
Domestic
Financial
ally/
002123.S Montnets Fair assets Self-
overseas 65,764,930.00 65,764,930.00 -28,818,527.00 68,770,034.00 -28,818,527.00 105,716,437.00
Z Technology value held for funded
listed
trading
stocks
Domestic
Financial
ally/
Fair assets Self-
overseas Others 46,403,055.00 46,403,055.00 -11,654,214.00 21,355,500.00 51,712,461.20 -16,046,093.80
value held for funded
listed
trading
stocks
Financial
Trust Fair assets Self-
20,000,000.00 175,347.20 20,000,000.00 175,347.20 20,175,347.20
products value held for funded
trading
58 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Financial
Fair assets Self-
Funds 332,290,725.57 332,290,725.57 -16,598,284.92 10,000,000.00 20,010,142.35 -16,596,976.33 305,683,606.89
value held for funded
trading
Financial
Fair assets Self-
Others 133,662,614.39 133,662,614.39 168,213.29 714,279,529.93 751,868,899.76 1,984,553.85 98,057,798.41
value held for funded
trading
Total 671,296,267.76 -- 651,296,267.76 -66,675,431.51 834,405,063.93 823,591,503.31 -69,249,662.16 592,860,166.22 -- --
Disclosure date of the board
announcement approving the 28 March 2024
securities investments
Disclosure date of the general
meeting announcement approving 20 April 2024
the securities investments (if any)
(2) Investments in Derivative Financial Instruments
√ Applicable □Not applicable
1) Derivative Investments for Hedging Purposes in the Reporting Period
√ Applicable □Not applicable
Unit: RMB'0,000
Cumulative fair- Closing amount
Initial Gain/loss on fair-
value changes Purchased in the Sold in the as % of the
Type of derivative investment Opening amount value changes in Closing amount
recognized in Reporting Period Reporting Period Company’s closing
amount the period
equity equity
Forward Foreign
35,597.64 30,341.06 72.21 0.00 5,256.58 756.05 34,841.59 7.50%
Exchange
Swap Foreign 1,448.82 0.00 9.17 0.00 1,448.82 0.00 1,448.82 0.31%
59 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Exchange
合计 37,046.46 30,341.06 81.38 0.00 6,705.40 756.05 36,290.41 7.81%
Description of
significant changes in
accounting policies
and specific financial
accounting principles
No significant change
in respect of the
Company's hedges for
the Reporting Period
as compared to the
prior reporting period
Actual gains/losses in
During the Reporting Period, the actual loss on derivative contracts for hedging purposes stood at RMB-813,800
the Reporting Period
Results of hedges Currently not available
Funding source Self-funded
Risk analysis of
positions held in
derivatives during the
Reporting Period and The above-mentioned hedging transactions are mainly intended to avert and prevent risks arising from fluctuations in exchange rates. In the Rules on the Management of
description of control Financial Derivative Transaction Business formulated by the Company, the operating rules, review and approval authority, routine management, and risk control mechanisms on
measures (Including the financial derivative transaction business have been prescribed to standardize business operation as well as prevent and control related risks. Chinese futures exchanges have
but not limited to established well-improved risk control mechanisms. As future exchanges assume the performance responsibility, there is a low probability of credit risk. The Company will
market risk, liquidity strengthen the understanding and mastering of national policies and requirements of relevant governing bodies to avoid related credit and legal risks.
risk, credit risk,
operational risk, legal
risk, etc.)
Changes in market
prices or fair value of
derivative products
during the Reporting
Undue forward forex settlement and sale contracts are measured at fair value, i.e., the difference between the signing price of an undue forward forex settlement and sale contract
Period, specific
held at the period-end and the bank’s forward forex rates at the period-end.
methods used, and
relevant assumption
and parameter settings
shall be disclosed for
60 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
analysis of fair value
of derivatives
Legal matter (if
N/A
applicable)
Disclosure date of the
announcement about
the board’s consent 28 March 2024
for the derivative
investment (if any)
Disclosure date of the
announcement about
the general meeting’s
20 April 2024
consent for the
derivative investment
(if any)
2) Derivative Investments for Speculative Purposes in the Reporting Period
√ Applicable □Not applicable
Unit: RMB'0,000
Closing
investment Actual
Purchased
Relationship Initial Opening Sold in the Impairment Closing amount gain/loss in
Related Type of in the
Counterparty with the investment Start date End date investment Reporting allowance investment as % of the the
transaction derivative Reporting
Company amount amount Period (if any) amount Company’s Reporting
Period
closing Period
equity
Shenwan
15 August 19 August
Hongyuan N/A No Accumulator 5,000.00 5,000.00 0 0 0 1,012.24 0.22% -1,858.56
2023 2024
Securities
China Foreign
22 May 22 August
Merchants N/A No Exchange 50.00 0 50 0 0 49.71 0.01% -0.29
2024 2024
Bank Options
Total 5,050.00 -- -- 5,000.00 50 0 0 1,061.95 0.23% -1,858.85
61 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Funding source Self-funded
Legal matter (if applicable) N/A
Disclosure date of the announcement about the board’s
28 March 2024
consent for the derivative investment (if any)
Disclosure date of the announcement about the general
20 April 2024
meeting’s consent for the derivative investment (if any)
Risk analysis:
1. Decision-making risk: The Company's involvement in futures and derivatives trading is influenced by a variety of factors, including
international and domestic economic policies, economic conditions, developments in the underlying commodity sectors, fluctuations in
exchange rates and interest rates. Furthermore, this type of trading is inherently complex and requires a high level of specialisation, thus
carrying a certain degree of risk in trading decision-making processes.
2. Market risk: Financial markets are susceptible to macroeconomic conditions, industry cycles, and numerous other influences, causing
linked underlyings in snowball products to fluctuate during holding periods, leading to variable valuations that could result in substantial
gains or losses. Exchange rate movements are bi-directional; in the context of forward exchange rates, there's a possibility that locked-in
forward exchange transactions may lead to settlement exchange rates below the company's book rate on the delivery date, potentially
generating foreign exchange losses. Additionally, due to factors tied to futures and other derivative markets, futures prices and spot prices
might exhibit discrepancies in timing and volatility, such that during the hedging period, related businesses could incur either additional
profits or losses.
3. Liquidity risk: A sudden and extreme shift in the relevant price index, or managing excessively large positions, could potentially result in
Risk analysis of positions held in derivatives during the untimely margin calls and force the liquidation of positions, thereby exposing the Company to liquidity risks.
Reporting Period and description of control measures
4. Policy and legal risks: The Company may suffer losses due to alterations in the legal framework, non-compliance with relevant laws,
(Including but not limited to market risk, liquidity risk,
regulations, or contractual breaches by counterparties, leading to improper execution of contracts.
credit risk, operational risk, legal risk, etc.)
5. Other risks: During transaction execution, failing to adhere to standard procedures for derivatives trading or inadequate comprehension of
derivative product information can introduce operational risks, potentially leading to losses stemming from non-compliant actions or
unforeseen legal contingencies.
Description of control measures:
1. In the Rules on the Management of Financial Derivative Transaction Business formulated by the Company, the operating rules, review and
approval authority, routine management, and risk control mechanisms on the financial derivative transaction business have been prescribed to
standardise business operation as well as prevent and control related risks.
2. The Company will diligently select qualified financial institutions for partnership and may engage experienced external professionals when
needed to offer advisory services. This ensures thorough and methodical research and analysis prior to investments, thereby minimising
operational risks and performance uncertainties.
3. Throughout its business operations, the Company and its associates rigorously comply with applicable national laws and regulations to
avert legal hazards. They conduct regular supervision and inspections to ensure the derivatives business's standardisation, internal control
efficacy, and information disclosure accuracy. They closely monitor shifts in domestic and international regulatory policies and changes to
62 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
relevant rules, proactively adjusting hedging strategies accordingly to mitigate potential policy risks well ahead of time.
4. Domestic futures exchanges maintain a robust risk control framework, assuming clearing responsibilities, thereby reducing the likelihood
of credit risk significantly. The Company will diligently stay informed and aligned with national policies and management body requirements
to mitigate credit and legal risks effectively.
5. The Company will steadfastly uphold cautious investment principles, consistently enhancing its analysis and research on economic
policies, market conditions, and environmental shifts, promptly adjusting its investment strategies and scales as needed. Moreover, it will
continuously fortify the professional education of its team members, elevating the proficiency of its practitioners.
6. The internal audit departments of the Company are responsible for supervising and verifying the implementation of futures and derivatives
trading business, proposing timely rectification opinions on existing problems, and reporting to the Audit Committee of the Board of
Directors of the Company.
Changes in market prices or fair value of derivative
products during the Reporting Period, specific methods
Based on market value changes
used, and relevant assumption and parameter settings shall
be disclosed for analysis of fair value of derivatives
Description of significant changes in accounting policies
and specific financial accounting principles in respect of
No significant change
the Company's derivatives for the Reporting Period as
compared to the prior reporting period
63 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
5. Use of Raised Funds
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Ⅶ Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
64 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Ⅷ Principal Subsidiaries and Joint Stock Companies
√ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the consolidated net profit:
Unit: RMB yuan
Relations
hip with Principal Registered Operating Operating
Name Total assets Net assets Net profit
the activities capital revenue profit
Company
R&D,
processing,
manufacturin
g, and
marketing of
corrugated
Fosber Subsidiar EUR1.56 2,564,663,7 1,126,610,8 1,352,396,1 274,451,89 203,374,84
cardboard
Group y million 29.38 56.68 71.63 0.62 1.91
production
lines and
parts, as well
as provision
of after-sales
services
Shunyi
Investment is
principally
engaged in
business
entity and
Shunyi Subsidiar project RMB10 752,919,31 474,494,50 378,130,28 59,434,716. 51,812,986.
Investment y investments, million 8.77 4.87 2.90 95 37
etc. It is the
direct
controlling
shareholder
of Parsun
Power.
Ⅸ Structured Bodies Controlled by the Company
√ Applicable □ Not applicable
1. In March 2021, the Company established Tianjin Hangchuang Zhijin Investment Partnership (Limited
Partnership) (the "Tianjin Hangchuang Fund") with AVIC Innovation Capital Management Co., Ltd. The Company,
as the sole LP of the Fund, subscribed for the Partnership's contribution share of RMB20,000,000. The Fund is a
special fund which is to invest in the equity of Sichuan Dajin Stainless Steel Co., Ltd. (now renamed as Chengdu
Dajin Aero-Tech Co., Ltd.).
This investment is in line with the Company’s development strategy considering the Fund’s investment
direction, decision-making, management, income distribution, loss allocation, etc. From the perspective of business
65 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
nature, the Company provides much of the capital of the Tianjin Hangchuang Fund, so it is reasonable to include
the Fund in the Company’s consolidated financial statements of the Reporting Period.
2. In March 2022, the wholly owned subsidiary Yineng Investment indirectly invested in Beijing Sinoscience
Fullcryo Technology Co., Ltd. (referred to as "Fullcryo" in this Report) and Sinoscience Fullcryo (Zhongshan)
Equipment Manufacturing Co., Ltd. by making a capital contribution to a limited partnership and obtained non-
controlling interests of the two companies.
As one of the limited partners of the partnership, Yineng Investment accounts for 94.86% of the total capital
contributions. Considering the partnership's agreements on investment orientation, investment decisions, operation
and management, income apportionment, and loss bearing, and the fact that Yineng Investment accounts for the
majority of the capital contributions to the partnership, the partnership is included in the consolidated statements of
Dongfang Precision as a "structured body controlled by the Company" from the perspective of commercial
substance and after complying with the Accounting Standard for Business Enterprises and referring to the
professional opinions of the independent auditor.
Ⅹ. Possible risks and countermeasures
1. Risks arising from fluctuations in exchange rates
The main settlement currency and recording currency of Fosber Group, the principal overseas business entity
of the Company, are euros, while the revenue of Fosber America and domestic entities from export is mainly settled
with the US dollar. Fluctuations in the US dollar and euro exchange rates do not significantly impact the routine
operation of overseas business entities but exert certain impacts on the presentation of their assets and operating
results in the consolidated financial statements.
In the first half of 2024, the RMB exchange rate exhibited a “rise first, then fall” curve. Factors such as domestic
macroeconomic conditions and policies, changes in the Federal Reserve’s interest rate cut expectations, global
geopolitical and trade situation changes, central bank monetary policy changes, international balance of payments,
inflation rates, and interest levels can all affect the RMB exchange rate. Under the comprehensive influence of
multiple complex factors, the volatility of the RMB foreign exchange market has significantly increased.
Countermeasures:
The Company can closely track the global financial market and national exchange rate policies, make timely
decisions to select proper exchange rate management tools to manage exchange rate risks actively. It can also reduce
risk exposure and increase exchange gains by increasing debts of foreign currency and rely on Group management
to strengthen the level of capital coordination in different countries and regions, balance, and offset fluctuation risks
at the Group level.
2. Potential risks of financial investment business
In recent years, the Company has arranged some of its idle owned funds to carry out financial investment
business such as securities investment and entrusted wealth management in an appropriate manner, based on the
actual and development needs. There are certain risks of carrying out the above business due to fluctuations in the
financial market and uncertainty of income; and the risk that the Company may suffer certain investment losses in
case of risk events in the process of wealth management activities in terms of investment strategies and use of funds.
Countermeasures:
66 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
On the premise that the funds required for the daily operation of the main business will not be affected, the
Company reasonably controls the capital scale for financial investment; it establishes and improves the internal
control system and mechanism standards for securities investment and entrusted financial management, and
strengthens the risk control management of securities investment business, safeguard the safety of investment funds,
and strictly control the risk exposure. In accordance with the economic situation and changes in the financial market,
it continuously tracks and analyses the progress of securities investment and the investment of funds, the progress
of project investment and the performance of the capital market, and timely takes corresponding preservation
measures to control investment risks.
Ⅹ. Implementation of the “Quality and Earnings Dual Improvement” Action Plan
Indicate whether the Company has disclosed the “Quality and Earnings Dual Improvement” Action Plan.
□ Yes √ No
67 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Part IV Corporate Governance
I Annual and Extraordinary General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Meeting Type Investor Date of Disclosure Resolution
participation the date
ratio meeting
1. The Proposal on the 2023 Work Report of the
Board of Directors (including the 2023 Work Report
of Independent Directors) was approved.
2. The Proposal on the 2023 Work Report of the
Supervisory Committee was approved.
3. The Proposal on the 2023 Annual Report and Its
Summary was approved.
4. The Proposal on the 2023 Final Financial Accounts
was approved.
The 2023 5. The Proposal on the 2024 Budget was approved.
Annual
Annual 2024- 6. The Proposal on the 2023 Final Dividend Plan was
General 36.37% 2024-04-20
General 04-19 approved.
Meeting
Meeting 7. The Proposal on the 2023 Internal Control
Assessment Report was approved.
8. The Proposal on Intention to Appoint the
Independent Auditor for 2024 was approved.
9. The Proposal on the Use of Own Funds for
Entrusted Wealth Management in 2024 was approved.
10. The Proposal on 2024 Estimated Quota of Futures
and Derivatives Transactions was approved.
11. The Proposal on provide guarantees for wholly-
owned subsidiaries
1. The Proposal on the Unfulfilled Conditions for the
Release of Restricted Shares during the Second
The First Release Period of Part of the First Grant under the
Extraordinary Extraordinary 2022 Restricted Share Incentive Scheme and the
2024- Repurchase and Cancellation of Part of the Restricted
General General 33.35% 2024-05-28
05-27 Shares.
Meeting of Meeting
2024 2. The Proposal on Change of the Company's
Registered Capital and Amendments to the
Company's Articles of Association was approved.
2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with Resumed
Voting Rights
□ Applicable Not applicable
68 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
II Changes of Directors, Supervisors and Senior Management
□ Applicable Not applicable
The Company’s directors, supervisors and senior management remained unchanged during the Reporting Period.
For details, see the 2023 Annual Report.
III Dividend Plan for the Reporting Period
□ Applicable Not applicable
The Company has no semi-annual dividend plan, either in the form of cash or stock.
IV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
Applicable □ Not applicable
1. Equity Incentives
To refine its long-term incentive mechanism, boost the enthusiasm of management personnel and key
employees of all levels, effectively promote long-term development, and achieve the objective of “Promoting Team
Stability and Morale, Attract Talent and Improve Operating Performance”, the Company launched the 2020
Restricted Share Incentive Plan in the first quarter of 2020. For details, see the Summary of the 2020 Restricted
Share Incentive Plan disclosed by the Company on www.cninfo.com.cn dated 12 March 2020.
To further build and improve its long-term incentive mechanism, attract, and retain talent, fully motivate its
key managerial, technological, and business personnel, effectively align the Company’s and shareholders’ interests
with the personal interests of the core team, and make all the parties concerned to focus on the long-term
development of the Company, the Company launched the 2022 Restricted Share Incentive Plan in the first quarter
of 2022. For details, see the 2022 Restricted Share Incentive Plan disclosed by the Company on www.cninfo.com.cn
dated 15 March 2022.
The implementations of the above-mentioned incentive plans during the Reporting Period are as follows:
1. On 5 February 2024, the Company held the Second (Interim) Meeting of the Fifth Session of the Board of
Directors and the Second (Interim) Meeting of the Fifth Session of the Supervisory Committee, at which the
''Proposal on the Achievement of the Conditions for Unlocking of the Sale of Shares during the Third Unlocking
Period of the Reserved Grant Portion of the 2020 Restricted Share Incentive Plan'' was considered and passed. On
26 February 2024, the shares released from lock-up during the third lock-up release period of the Company's 2020
Restricted Share Incentive Plan were listed and put into circulation, and the number of incentive recipients who
fulfilled the conditions for release from lock-up was 17, and the total number of incentive shares released from lock-
up was 1,632,000 shares.
2. On 9 May 2024, the Company held the Fifth (Interim) Meeting of the Fifth Session of the Board of Directors
and the Fifth (Interim) Meeting of the Fifth Session of the Supervisory Committee, at which the ''Proposal on the
69 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Failure to Achieve the Conditions for Unlocking of Sale of Part of the Second Unlocking Period of the First Award
of Part of the Restricted Share Incentive Scheme in 2022 and the Repurchase and Cancellation of Part of the
Restricted Shares'' was considered and passed in light of the fact that the Company-level performance appraisal for
the second unlocking period In view of the fact that the Company's performance appraisal target for the second
release period had not been achieved and the conditions for the release of restricted shares for the second release
period had not been fulfilled, in accordance with the Incentive Scheme, the Company shall repurchase and cancel
880,000 shares of restricted shares held by 5 incentive recipients corresponding to the second release period of the
first grant portion of the Restricted Share Incentive Scheme for the year 2022 in accordance with the grant price.
On 27 May 2024, the First Extraordinary General Meeting of 2024 was convened by the Company, at which
the ''Proposal on the Unfulfilled Conditions for the Release of Restricted Shares during the Second Release Period
of the First Grant of Part of the Restricted Share Incentive Plan of 2022 and the Repurchase and Cancellation of
Part of the Restricted Shares'' was considered and passed.
2. Implementation of Employee Stock Ownership Plans
□ Applicable Not applicable
3. Other Incentive Measures for Employees
□ Applicable Not applicable
70 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Part V Environmental and Social Responsibilities
I Significant Environmental Issues
Whether the listed company and its subsidiaries fell into major pollutant-discharge enterprises and institutions published by
national environmental protection authorities.
□ Yes √ No
The Company and its subsidiaries did not fall into major pollutant-discharge enterprises and institutions published by national
environmental protection authorities, and the Company was not administratively punished for environmental issues in the Reporting
Period. For other environmental information, please refer to “II Social Responsibilities” below.
Measures taken to reduce carbon emissions in the Reporting Period and the impact:
Applicable □ Not applicable
The subsidiary Fosber Italia has established and implemented a sustainability management system and is certified in
accordance with the following international standards: ISO 45001:2018, ISO 9001:2015, ISO 14001:2015, EMAS (European Union
Eco-Management and Audit System) and SA8000:2014.
Our subsidiary, Esaote Power, will build a rooftop photovoltaic power plant with an installed capacity of 1MW in 2023,
adopting the method of self-consumption of power generation and feed-in of surplus power, which saves fossil energy consumption
and reduces carbon emissions at the same time.
II Social Responsibilities
The Company attached importance to fulfil social responsibility in daily operations, intending to promote the harmony and co-
prosperity between it and parties related to its interests. The Company also took active measures in the protection of the rights and
interests of shareholders, creditors, employees, suppliers, customers and consumers, environmental protection, sustainable
development, public relations and social public welfare undertakings, and strived to maximize comprehensive social benefits
including the sustainable development of itself.
(1) Corporate governance: During the Reporting Period, the Company strictly abided by the Company Law, the Securities Law
and Code of Corporate Governance for Listed Companies, continued to refine the corporate governance structure, improve the
internal control system, formed the decision-making system comprising the Shareholders' General Meeting, the Board of Directors,
the Supervisory Committee and the Management, and timely fulfilled its obligation of information disclosure according to laws and
regulations and effectively safeguarded the rights and interests of all shareholders.
(2) Rights and interests of employees: The Company provided employees with welfare and care by providing holiday gifts and
holding employee birthday parties, annual meetings and team building activities, improved employees' professional competence by
offering regular or irregular training to employees in the headquarters and domestic and foreign branches and subsidiaries, and
continued to improve the competitive comprehensive remuneration system to retain and attract talents needed for the Company's
sustainable development.
71 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
(3) Relationship with customers and suppliers: Long adhering to the principle of "honest business" and "mutual benefit and
win-win", the Company took the initiative to construct and develop strategic partnership with suppliers and customers and jointly
built a platform of trust and cooperation, and earnestly fulfilled its social responsibilities to suppliers, customers and consumers. The
Company has been well performing contracts with suppliers and customers and ensuring that the rights and interests of all parties are
highly valued and duly protected.
(4) Safety Production: The company strictly complies with relevant laws and regulations such as the “Labor Law” and the
“Labor Contract Law,” focusing on people and addressing employees’ needs. It strives to improve employees’ working and living
environments and has established a union to effectively protect employees’ interests. The company provides labor protection supplies
based on the hazardous factors encountered in different positions, organizes occupational health examinations for employees (before
starting work, during work, and before leaving work), and purchases “safety liability insurance” for high-risk positions. Dongfang
Precision and Fosber Asia have both obtained the “Level 3 Enterprise (Machinery) Safety Production Standardization Certificate,”
and Parsun Power has passed the “Level 2 Safety Production Standardization Rating.”
(5) Environmental Protection: The parent company of Dongfang Precision has obtained the “National Pollution Discharge
Permit” and commissioned a qualified third-party environmental agency to draft the “Emergency Response Plan for Sudden
Environmental Incidents.” The company has established an “Environmental Self-Monitoring Plan,” commissioning a third party to
install and operate 24-hour online sewage flow monitoring equipment and commissioning a third-party monitoring agency to conduct
quarterly tests on wastewater, exhaust gas, and noise, providing third-party test reports. The parent company’s environmental
facilities (exhaust gas treatment facilities and wastewater treatment facilities) have passed the OHSAS18001:2007 Occupational
Health and Safety Management System and the ISO14001:2015 Environmental Management System certification reviews and have
been rated as a “Foshan Clean Production Enterprise.” The subsidiary Parsun Power has obtained the “National Pollution Discharge
Permit” and passed the ISO14001:2015 Environmental Management System certification, purchasing environmental protection
equipment including a 50,000m3/h organic exhaust gas treatment device and an exhaust gas recovery system, which can meet daily
pollutant treatment requirements.
(6) Anti-fraud: The Group complied a thorough internal authorization manual that detailed provisions on internal authorization
process of major matters to ensure appropriate internal control and reduce the risk of fraud. In order to create a fair, just, honest and
non-corrupt internal business environment and strengthen internal monitoring, the Company also established and launched the anti-
fraud reporting platform to encourage employees to report fraud findings.
(7) Social Honors: Dongfang Precision is a national high-tech enterprise and has been successively rated as one of the “Top 500
Private Manufacturing Enterprises in China,” “Top 100 Private Manufacturing Enterprises in Guangdong Province,” “Provincial
Industrial Design Center in Guangdong Province,” “Leading Enterprise in Subdivided Industry in Foshan,” and “Invisible Champion
Enterprise in Manufacturing in Foshan.” The subsidiary Fosber Asia has been recognized as a “Guangdong Province Intellectual
Property Demonstration Enterprise”. The subsidiaries Wonder Digital and Parsun Power are national-level specialized and new
“Little Giant” enterprises. The subsidiary Parsun Power is a national high-tech enterprise, the Jiangsu Provincial Outboard Motor
Engineering Technology Research Center, the Jiangsu Provincial Recognized Enterprise Technology Center, a pioneer enterprise in
the Chinese internal combustion engine industry, and a governing unit of the Small Gasoline Engine Branch of the China Internal
Combustion Engine Industry Association. Parsun Power’s outboard motor products have also received the National Torch Program
Industrialization Demonstration Project Certificate, the China Machinery Industry Innovative Product, the Jiangsu Province Famous
Brand Product, and the Suzhou City Famous Brand Product, among other honors.
72 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Part VI Significant Events
I Undertakings of the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and Other Entities Fulfilled in the Reporting Period
or Unfulfilled and Overdue at the Period-End
□ Applicable Not applicable
No such cases in the Reporting Period.
II Occupation of the Company’s Capital by the Controlling Shareholder or Other Related
Parties for Non-Operating Purposes
□ Applicable Not applicable
No such cases in the Reporting Period.
III Irregularities in Provision of Guarantees
□ Applicable Not applicable
No such cases in the Reporting Period.
IV Engagement and Disengagement of Independent Auditor
Whether the semi-annual financial report was audited.
□ Yes √ No
The semi-annual financial report was not audited.
V Explanations Given by the Board of Directors and the Supervisory Committee Regarding the
Independent Auditor's “Modified Opinion” on the Financial Statements of the Reporting
Period
□ Applicable Not applicable
VI Explanations Given by the Board of Directors Regarding “Modified Opinion” on the
Financial Statements of Last Year
□ Applicable Not applicable
73 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
VII Insolvency and Reorganization
□ Applicable Not applicable
No such cases in the Reporting Period.
VIII Legal Matters
Significant Legal Matters
□ Applicable Not applicable
No such cases in the Reporting Period.
Other Legal Matter
□ Applicable Not applicable
IX Punishments and Rectifications
□ Applicable Not applicable
No such cases in the Reporting Period.
X Credit Quality of the Company as well as Its Controlling Shareholder and Actual Controlle r
□ Applicable Not applicable
XI Significant Related-Party Transactions
1. Continuing Related-Party Transactions
□ Applicable Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Investments
□ Applicable Not applicable
No such cases in the Reporting Period.
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□ Applicable Not applicable
74 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□ Applicable Not applicable
No such cases in the Reporting Period.
5. Transactions with Related Financial Companies
□ Applicable Not applicable
No such cases in the Reporting Period.
6. Transactions between the finance company controlled by the company and related parties
□ Applicable Not applicable
No such cases in the Reporting Period.
7. Other Significant Related-Party Transactions
□ Applicable Not applicable
No such cases in the Reporting Period.
XII Significant Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable Not applicable
No such cases in the Reporting Period.
75 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
2. Significant Guarantees
Applicable □ Not applicable
Unit: RMB’0,000
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Guarantee
Disclosure
Actual Actual Counter- Having for a
date of the Line of Type of Security Term of
Obligor occurrence guarantee guarantees expired related
guarantee line guarantee guarantee (if any) guarantee
date amount (if any) or not party or
announcement
not
Guarantees provided by the Company as the parent for its subsidiaries
Guarantee
Disclosure
Actual Actual Counter- Having for a
date of the Line of Type of Security Term of
Obligor occurrence guarantee guarantees expired related
guarantee line guarantee guarantee (if any) guarantee
date amount (if any) or not party or
announcement
not
From the
date when
No more Joint the
Dongfang
than 2023-06- EUR34.4056 Security guarantee
Precision 2023-06-14 liability; -- Yes No
EUR34.5 15 million deposits took
(Netherland)
million Pledge effect to
15 June
2024
From the
effective
date of
the
No more security
than 2024-04- RMB67.0375 Joint agreement
Tirua Asia 2024-03-28 -- -- No No
RMB 1 28 million liability until three
billion years
after the
maturity
of the
loan
Total approved line for such Total actual amount of
No more than RMB 1
guarantees in the Reporting such guarantees in the RMB 330.6429 million
billion
Period (B1) Reporting Period (B2)
Total actual balance of
Total approved line for such
No more than RMB 1 such guarantees at the end
guarantees at the end of the RMB67.0375 million
billion of the Reporting Period
Reporting Period (B3)
(B4)
Guarantees provided between subsidiaries
Guarantee
Disclosure
Actual Actual Counter- Having for a
date of the Line of Type of Security Term of
Obligor occurrence guarantee guarantees expired related
guarantee line guarantee guarantee (if any) guarantee
date amount (if any) or not party or
announcement
not
No more 30 April EUR0.4124 General From the
QCorr 2020-05-15 - - Yes No
than 2020 million Guarantee date when
76 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
EUR3 the
million guarantee
took
effect to
30 June
2024
Total approved line for such Total actual amount of
guarantees in the Reporting 0 such guarantees in the 0
Period (C1) Reporting Period (C2)
Total actual balance of
Total approved line for such
such guarantees at the end
guarantees at the end of the 0 0
of the Reporting Period
Reporting Period (C3)
(C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line approved Total actual guarantee
No more than RMB 1
in the Reporting Period amount in the Reporting RMB 330.6429 million
billion
(A1+B1+C1) Period (A2+B2+C2)
Total actual guarantee
Total approved guarantee line
No more than RMB 1 balance at the end of the
at the end of the Reporting RMB67.0375 million
billion Reporting Period
Period (A3+B3+C3)
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets 1.44%
Of which:
Balance of guarantees provided for shareholders, the actual controller and their related
0
parties (D)
Balance of debt guarantees provided directly or indirectly for obligors with an over
RMB67.0375 million
70% debt/asset ratio (E)
Amount by which the total guarantee amount exceeds 50% of the Company’s net
0
assets (F)
Total of the three amounts above (D+E+F) RMB67.0375 million
Joint liability possibly borne or already borne in the Reporting Period for outstanding
N/A
guarantees (if any)
Guarantees provided in breach of prescribed procedures (if any) N/A
3. Cash Entrusted for Wealth Management
Applicable □ Not applicable Unit: RMB’0,000
Impairment
Unrecovered provision for
Type Funding source Amount Undue amount
overdue amount unrecovered
overdue amount
Bank’s wealth
management Self-funded 24,600.00 9,800.00 0.00 0.00
product
Securities firm’s
wealth management Self-funded 32,700.00 32,700.00 0.00 0.00
product
Trust product Self-funded 2,000.00 2,358.62 358.62 358.62
77 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Total 59,300.00 44,858.62 358.62 358.62
High-risk wealth management transactions with a significant single amount or with low security, low liquidity, and no principal
protection:
□ Applicable Not applicable
Wealth management transactions where the principal is expectedly irrecoverable or an impairment may be incurred:
Applicable □ Not applicable
As of the end of the Reporting Period, the unrecovered amount of trust products was RMB3.5862 million, for which an impairment
allowance of RMB3.5862million was established.
4. Other Significant Contracts
□ Applicable Not applicable
No such cases in the Reporting Period.
XIII Other Significant Events
□ Applicable Not applicable
XIV Significant Events of Subsidiaries
□ Applicable Not applicable
78 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the period (+/-) After
Shares
Shares as
as divide
divide nd
Percentage New nd conver Percentage
Shares Other Subtotal Shares
(%) issues conver ted (%)
ted from
from capital
profit reserve
s
1. Restricted
226,372,533 18.25% 0 0 0 -2,398,000 -2,398,000 223,974,533 18.37%
shares
1.1 Shares
held by the 0 0.00% 0 0 0 0 0 0 0.00%
government
1.2 Shares
held by state-
0 0.00% 0 0 0 0 0 0 0.00%
owned
corporations
1.3 Shares
held by other
226,212,533 18.23% 0 0 0 -2,238,000 -2,238,000 223,974,533 18.37%
domestic
investors
Including:
Shares held by
0 0.00% 0 0 0 0 0 0 0.00%
domestic
corporations
Shares held
by domestic 226,212,533 18.23% 0 0 0 -2,238,000 -2,238,000 223,974,533 18.37%
individuals
1.4 Shares
held by overseas 160,000 0.01% 0 0 0 -160,000 -160,000 0 0.00%
investors
Including:
Shares held by
0 0.00% 0 0 0 0 0 0 0.00%
overseas
corporations
Shares held
by overseas 160,000 0.01% 0 0 0 -160,000 -160,000 0 0.00%
individuals
2. Unrestricted
1,014,245,867 81.75% 0 0 0 -19,174,060 -19,174,060 995,071,807 81.63%
shares
79 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
2.1 RMB-
denominated 1,014,245,867 81.75% 0 0 0 -19,174,060 -19,174,060 995,071,807 81.63%
ordinary shares
2.2
Domestically
0 0.00% 0 0 0 0 0 0 0.00%
listed foreign
shares
2.3 Overseas
listed foreign 0 0.00% 0 0 0 0 0 0 0.00%
shares
2.4 Others 0 0.00% 0 0 0 0 0 0 0.00%
3. Total shares 1,240,618,400 100.00% 0 0 0 -21,572,060 -21,572,060 1,219,046,340 100.00%
Reasons for share changes:
Applicable □ Not applicable
1. Cancellation of 21,572,060 retired shares
On 1 February 2024, the Company disclosed the Announcement on Completion of the Implementation of Share Repurchase and
Changes in Shares, announcing the completion of the implementation of the 2023 share repurchase program launched in January 2023.
During the implementation period of such share repurchase, the Company repurchased a total of approximately 21,572,060 shares of
the Company through centralized bidding transactions, accounting for approximately 1.74% of the total share capital of the Company,
with the highest traded price at RMB4.89 per share and the lowest traded price at RMB4.50 per share, and the total cumulative payment
amounted to approximately RMB10,077,500,000 (excluding transaction costs).
On 4 March 2024, the Company issued the ''Announcement on the Completion of Cancellation of Repurchased Shares and Changes in
Shares'', in which the aforesaid 21,572,060 shares of public shares had been repurchased and the cancellation had been completed.
2. Release of certain restricted shares from restricted sale
(1) Unlocking of restricted shares for equity incentives
On 26 February 2024, the shares released from lock-up during the third lock-up release period of the portion of the Company's 2020
Restricted Share Incentive Plan reserved for the grant were listed for sale, and the total number of shares released from loc k-up was
1,632,000 shares.
(2) Change in lock-up shares for senior management
In March 2024, the term of office of Mr. Zhou Wenhui, the outgoing director, as determined at the time of his assumption of office,
expired and reached six months after the expiry of the term of office, and the shares held by him in Dongfang Precision were released
from lock-up in accordance with the law and became outstanding shares.
Approval of share changes:
√ Applicable □ Not applicable
In the Reporting Period, with respect to share changes involved in the “unlocking for public trading of shares in the third unlocking
period for the reserved restricted shares under the 2020 Restricted Share Incentive Plan”, the Company followed the applicable laws
and regulations and its Articles of Association, executed the approval procedures with the general meeting and the Board of Directors,
and obtained approval from the Shenzhen Stock Exchange.
Transfer of share ownership:
√ Applicable □ Not applicable
In the Reporting Period, with respect to the transfers of share ownership involved in the “repurchase and retirement of some restricted
shares”, the Company completed the transfers with the Shenzhen branch of China Securities Depository and Clearing Co., Ltd. a fter
they were approved by the Shenzhen Stock Exchange.
80 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Progress of implementation of share buyback
Applicable □ Not applicable
On 1 February 2024, the Company disclosed the ''Announcement on the Completion of the Implementation of Share
Repurchase and Changes in Shares'', announcing the completion of the implementation of the share repurchase
program for the year 2023. During the implementation period of such share repurchase, the Company repurchased
a total of approximately 21,572,060 shares of the Company, representing approximately 1.74% of the total share
capital of the Company, through centralized bidding transactions, with the highest transaction price at RMB4.89 per
share and the lowest transaction price at RMB4.50 per share, the total cumulative payment amounted to
approximately RMB10,077,550,000 (excluding transaction costs).
Progress on reducing the repurchased shares by way of centralized bidding:
□ Applicable Not applicable
Effects of share changes on the basic earnings per share, diluted earnings per share, equity per share
attributable to the Company’s ordinary shareholders, and other financial indicators of the prior year and the
prior accounting period, respectively:
□ Applicable Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be
disclosed:
□ Applicable Not applicable
2. Changes in Restricted Shares
Applicable □ Not applicable
Unit: share
Increase in
Opening Closing
Unlocked in restricted Reason for Date of
Shareholder restricted restricted
the period shares in the restriction unlocking
shares shares
period
Restricted shares of
Xie Weiwei 750,000 186,000 0 564,000 2024-1-2
senior management
The term of office
established at the
time of assumption
of office has
expired and
reached six months
Zhou Wenhui 900,000 900,000 0 0 2024-3-21
after the expiry of
the term of office,
and the restriction
on sale has been
lifted in accordance
with the law.
Participated in the
Restricted Share
Shao Yongfeng 600,000 320,000 320,000 600,000 2024-2-26
Incentive Plan of
the
81 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Increase in
Opening Closing
Unlocked in restricted Reason for Date of
Shareholder restricted restricted
the period shares in the restriction unlocking
shares shares
period
Company/restricted
shares of senior
management
The other 16
awardees of the
Participated in the
reserved grant
Restricted Share
of the 2020 1,312,000 1,312,000 0 0 2024-2-26
Incentive Plan of
Restricted
the Company
Share Incentive
Plan
Total 3,562,000 2,718,000 320,000 1,164,000 -- --
II Issuance and Listing of Securities
□ Applicable Not applicable
82 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
III Shareholders and Their Shareholdings
Unit: share
Number of ordinary shareholders at the Number of preference shareholders with resumed voting
101,895 0
period-end rights at the period-end (if any) (see note 8)
5% or greater ordinary shareholders or top 10 ordinary shareholders
Total ordinary shares Increase/decrease Unrestricted Shares in pledge, marked or frozen
Name of Nature of Shareholding Restricted ordinary
held at the period- in the Reporting ordinary
shareholder shareholder percentage shares held Status Shares
end Period shares held
Tang Zhuolin Domestic individual 22.21% 270,737,568 0 203,053,176 67,684,392 In pledge 110,090,000
Tang Zhuomian Domestic individual 7.95% 96,885,134 0 0 96,885,134 In pledge 41,660,000
Pulead
State-owned
Technology 2.93% 35,748,587 0 0 35,748,587 -- 0
corporation
Industry Co., Ltd.
Luzhou Industrial
Development State-owned
2.61% 31,770,010 0 0 31,770,010 -- 0
Investment Group corporation
Co., Ltd.
Qinghai Puren
Intelligent
Technology R & Domestic non-state-
2.18% 26,628,340 0 0 26,628,340 -- 0
D Center owned corporation
(Limited
Partnership)
Qiu Yezhi Domestic individual 1.92% 23,382,388 0 17,536,791 5,845,597 -- 0
Hong Kong
Securities
Clearing Overseas corporation 1.14% 13,937,519 -34,245,614 0 13,937,519 -- 0
Company
Limited
Liu Wucai Domestic individual 0.54% 6,597,688 0 0 6,597,688 -- 0
Beixin Ruifeng
Other 0.51% 6,171,777 0 0 6,171,777 -- 0
Fund - Industrial
83 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
and Commercial
Bank of China -
Beijing Hengyu
Tianze
Investment
Management Co.,
Ltd.
Liu Lijun Domestic individual 0.39% 4,746,001 20,000 0 4,746,001 -- 0
Strategic investor or general corporation
becoming a top-10 ordinary shareholder None
in a rights issue (if any) (see note 3)
Related or acting-in-concert parties Mr. Tang Zhuolin and Mr. Tang Zhuomian are brothers. On 18 August 2010, they signed the Agreement on Acting in Concert. Pulead Technology
among the shareholders above Industry Co., Ltd. and Qinghai Puren Intelligent Technology R & D Center (Limited Partnership) are acting-in-concert parties.
Above shareholders entrusting or Apart from that, the Company is not aware of any related or acting-in-concert parties among the other shareholders above.
entrusted with voting rights, or waiving
voting rights
As of the end of the Reporting Period, there were21,330,432 shares in the Company’s special account for repurchase, accounting for 1.75% of its
Top 10 shareholders including the special
total share capital. As per the Shenzhen Stock Exchange Guideline No. 1 for the Self-regulation of Listed Companies—Business Handling, the
account of repurchased shares (if any)
existence of a special account of repurchased shares among the top 10 shareholders should be specifically stated but not included in the presentation
(see note 11)
of the top 10 shareholders.
Top 10 unrestricted ordinary shareholders
Shares by type
Name of shareholder Unrestricted ordinary shares held at the period-end
Type Shares
RMB-denominated
Tang Zhuomian 96,885,134 96,885,134
ordinary stock
RMB-denominated
Tang Zhuolin 67,684,392 67,684,392
ordinary stock
RMB-denominated
Pulead Technology Industry Co., Ltd. 35,748,587 35,748,587
ordinary stock
Luzhou Industrial Development RMB-denominated
31,770,010 31,770,010
Investment Group Co., Ltd. ordinary stock
Qinghai Puren Intelligent Technology R & RMB-denominated
26,628,340 26,628,340
D Center (Limited Partnership) ordinary stock
Hong Kong Securities Clearing Company RMB-denominated
13,937,519 13,937,519
Limited ordinary stock
84 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
RMB-denominated
Liu Wucai 6,597,688 6,597,688
ordinary stock
Beixin Ruifeng Fund - Industrial and
Commercial Bank of China - Beijing RMB-denominated
6,171,777 6,171,777
Hengyu Tianze Investment Management ordinary stock
Co., Ltd.
RMB-denominated
Qiu Yezhi 5,845,597 5,845,597
ordinary stock
RMB-denominated
Liu Lijun 4,746,001 4,746,001
ordinary stock
Related or acting-in-concert parties
among top 10 unrestricted ordinary Mr. Tang Zhuolin and Mr. Tang Zhuomian are brothers. On 18 August 2010, they signed the Agreement on Acting in Concert. Pulead
shareholders, as well as between top 10 Technology Industry Co., Ltd. and Qinghai Puren Intelligent Technology R & D Center (Limited Partnership) are acting-in-concert parties.
unrestricted ordinary shareholders and top Apart from that, the Company is not aware of any related or acting-in-concert parties among the other shareholders above.
10 ordinary shareholders
Description of the participation of the top
The Company's shareholder, Luzhou Industrial Development Investment Group Co., Ltd. holds 31,770,010 shares through a client credit
10 common shareholders in the financing
transaction guarantee securities account with Guotai Junan Securities Co. Ltd.
and securities financing business (if any)
85 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Top 10 shareholders involved in refinancing shares lending:
□ Applicable √ Not applicable
Changes in top 10 shareholders compared with the prior period:
□ Applicable √ Not applicable
Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yes No
No such cases in the Reporting Period
IV Changes in the Shareholdings of Directors, Supervisors and Senior Management
□ Applicable Not applicable
There were no changes in the shareholdings of the Company's directors, supervisors and senior management
during the reporting period, which can be found in the Annual Report 2023.
V Changes of the Company’s Controlling Shareholder and Actual Controller
Controlling Shareholder changed during the Reporting Period
□ Applicable Not applicable
No such cases in the Reporting Period.
Actual Controller changed during the Reporting Period
□ Applicable Not applicable
No such cases in the Reporting Period.
86 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Part VIII Preference Shares
□ Applicable Not applicable
No preference shares in the Reporting Period.
87 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Part IX Corporate Bonds
□ Applicable Not applicable
88 / 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Part X Corporate Financial Statements
I Auditor’s Report
Whether the semi-annual financial statements were audited.
□ Yes No
The semi-annual financial statements were not audited.
II Financial Statements
Currency unit for the tables in the notes to the financial statements: RMB yuan
1. Consolidated Balance Sheet
Prepared by: Guangdong Dongfang Precision Science & Technology Co., Ltd.
30 June 2024
Unit: RMB yuan
Item 30 June 2024 31 December 2023
Current assets:
Cash and bank balances 1,557,965,316.51 1,826,419,904.49
Settlement provisions
Dismantling funds
Financial assets held for trading 607,015,754.09 682,625,442.45
Derivative financial assets
Notes receivable 31,123,201.76 47,661,412.88
Accounts receivable 842,776,537.22 904,003,975.47
Receivable financing 22,923,994.65 9,365,344.07
Prepayments 41,289,117.33 45,741,143.90
Premium receivable
Receivable reinsurance account
Page 89 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Provision for reinsurance contract
receivable
Other receivables 39,417,246.69 51,797,943.96
Including: Interest receivable
Dividend receivable
Buy back resale financial assets
Inventories 1,300,425,341.66 1,182,411,055.68
Of which, Data Resources
Contract assets 46,416,016.67 45,946,377.14
Assets held for sale
Current portion of non-current
7,456,750.00 5,970,000.00
assets
Other current assets 96,230,399.69 75,234,656.07
Total current assets 4,593,039,676.27 4,877,177,256.11
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables 5,149,337.20 4,308,196.00
Long-term equity investment 114,307,542.37 117,265,884.84
Investment in other equity
instruments
Other non-current financial assets 528,076,492.06 461,278,259.67
Real estate investment
Fixed assets 613,804,454.53 611,851,577.04
Construction in progress 260,781,111.24 195,557,097.80
Productive biological assets
Oil and gas asset
Right-of-use assets 75,944,108.52 82,342,398.83
Page 90 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Intangible assets 350,014,243.27 365,954,480.05
Of which, Data Resources
Development expenditure
Of which, Data Resources
Goodwill 436,235,240.19 440,633,826.08
Long-term prepaid expenses 22,664,231.18 28,543,581.54
Deferred tax assets 249,355,211.99 255,872,409.78
Other non-current assets 89,564,193.76 97,437,602.28
Total non-current assets 2,745,896,166.31 2,661,045,313.91
Total assets 7,338,935,842.58 7,538,222,570.02
Current liabilities:
Short-term borrowings 93,156,553.78 370,549,972.80
Borrowing from the Central Bank
Borrowed funds
Financial liabilities held for trading 116,220,211.63 115,900,827.21
Derivative financial liabilities
Notes payable 167,522,939.78 152,433,276.09
Accounts payable 690,971,357.11 737,544,841.42
Advance receivables
Contract liabilities 553,691,546.87 645,608,919.34
Selling back financial assets
Deposits and Interbank deposit
Agent trading securities
Agent underwriting securities
Employee benefits payable 129,469,547.35 153,282,932.10
Tax payable 102,981,487.69 67,609,203.41
Other payables 124,061,681.76 126,415,425.61
Including: Interest payable
Dividend payable
Page 91 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Fees and commissions
Reinsurance accounts payable
Liabilities held for sale
Current portion of non-current
65,098,573.42 57,001,396.44
liabilities
Other current liabilities 9,007,089.25 9,145,175.01
Total current liabilities 2,052,180,988.64 2,435,491,969.43
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 133,690,882.97 79,107,701.15
Bonds payable
Including: Preference Shares
Perpetual bonds
Lease liabilities 60,173,070.42 65,861,441.32
Long-term payables
Long-term employee benefits
13,459,377.58 13,964,394.20
payable
Provisions 150,531,873.32 168,358,953.84
Deferred income 9,398,661.66 9,956,991.66
Deferred tax liabilities 3,068,415.55 8,854,294.28
Other non-current liabilities 22,635,906.84 22,418,854.80
Total non-current liabilities 392,958,188.34 368,522,631.25
Total Liabilities 2,445,139,176.98 2,804,014,600.68
Equity:
Share capital 1,219,046,340.00 1,240,618,400.00
Other equity instruments
Including: Preference Shares
Perpetual bonds
Capital surplus 2,811,791,319.77 2,889,928,997.21
Page 92 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Less: Treasury stock 117,523,041.40 218,298,532.79
Other comprehensive income 46,038,557.30 75,122,078.52
Special reserve 16,839,612.27 16,229,817.03
Surplus reserves 51,830,974.45 51,830,974.45
General risk preparation
Retained earnings 620,139,431.69 456,258,959.55
Total equity attributable to owners of the
4,648,163,194.08 4,511,690,693.97
parent
Non-controlling interests 245,633,471.52 222,517,275.37
Total equity 4,893,796,665.60 4,734,207,969.34
Total liabilities and equity 7,338,935,842.58 7,538,222,570.02
Legal representative: Tang Zhuolin Chief in charge of accounting work: Shao Yongfeng Head of accounting institution: Chen Nan
2. Parent Company Balance Sheet
Unit: RMB yuan
Item 30 June 2024 31 December 2023
Current assets:
Cash and bank balances 527,140,201.07 522,275,723.41
Financial assets held for trading 552,971,937.31 641,997,959.60
Derivative financial assets
Notes receivable 7,658,794.45 5,606,037.02
Accounts receivable 212,356,423.36 190,361,646.28
Receivable financing 17,869,499.43 4,268,677.09
Prepayments 6,059,859.05 5,298,841.09
Other receivables 487,194,509.81 654,825,093.49
Including: Interest receivable
Dividend receivable 187,729,679.60 272,564,800.00
Inventories 180,246,826.73 159,389,489.31
Of which, Data Resources
Page 93 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Contract assets 22,116,997.59 22,201,442.67
Assets held for sale
Current portion of non-current
7,456,750.00 5,970,000.00
assets
Other current assets 944,284.91 1,583,542.63
Total current assets 2,022,016,083.71 2,213,778,452.59
Non-current assets:
Debt investment
Other debt investments
Long-term receivables 5,149,337.20 4,308,196.00
Long-term equity investment 873,907,355.61 875,978,593.12
Investment in other equity
instruments
Other non-current financial assets 225,886,448.05 148,108,670.05
Real estate investment
Fixed assets 288,385,313.70 296,287,511.68
Construction in progress 5,440,950.00 4,273,340.82
Productive biological assets
Oil and gas asset
Right-of-use assets 5,424,699.30 6,238,404.20
Intangible assets 54,143,025.89 55,652,155.93
Of which, Data Resources
Development expenditure
Of which, Data Resources
Goodwill
Long-term prepaid expenses 4,232,286.39 4,967,872.25
Deferred tax assets 166,790,216.19 174,616,613.96
Other non-current assets 73,528,512.50 72,919,162.50
Total non-current assets 1,702,888,144.83 1,643,350,520.51
Page 94 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Total assets 3,724,904,228.54 3,857,128,973.10
Current liabilities:
Short-term loan 20,000,000.00 20,000,000.00
Financial liabilities held for trading 728.57 728.57
Derivative financial liabilities
Notes payable 49,067,448.74 39,577,380.86
Accounts payable 56,349,219.15 65,855,068.76
Advance receivables
Contract liabilities 56,381,340.41 53,704,255.92
Employee benefits payable 8,805,605.75 16,801,339.01
Tax payable 1,563,522.19 5,459,697.96
Other payables 54,071,905.42 103,498,597.36
Including: Interest payable
Dividend payable
Liabilities held for sale
Current portion of non-current
9,409,236.07 9,361,216.26
liabilities
Other current liabilities 4,314,804.12 588,152.27
Total current liabilities 259,963,810.42 314,846,436.97
Non-current liabilities:
Long-term borrowings 28,588,000.00 32,436,000.00
Bonds payable
Including: Preference Shares
Perpetual bonds
Lease liabilities 4,309,857.64 5,166,917.05
Long-term payables
Long-term employee benefits
payable
Provisions 1,018,330.37 1,418,799.52
Page 95 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Deferred income 9,398,661.66 9,956,991.66
Deferred tax liabilities
Other non-current liabilities 0.00
Total non-current liabilities 43,314,849.67 48,978,708.23
Total Liabilities 303,278,660.09 363,825,145.20
Equity:
Share capital 1,219,046,340.00 1,240,618,400.00
Other equity instruments
Including: Preference Shares
Perpetual bonds
Capital surplus 2,666,658,605.35 2,745,450,997.27
Less: Treasury stock 117,523,041.40 218,298,532.79
Other comprehensive income
Special reserve 6,333,938.53 6,645,318.98
Surplus reserves 51,830,974.45 51,830,974.45
Retained earnings -404,721,248.48 -332,943,330.01
Total equity 3,421,625,568.45 3,493,303,827.90
Total liabilities and equity 3,724,904,228.54 3,857,128,973.10
3. Consolidated Income Statement
Unit: RMB yuan
Item H1 2024 H1 2023
1 Total operating revenue 2,161,188,907.40 2,082,606,453.72
Including: Operating revenue 2,161,188,907.40 2,082,606,453.72
Interest income
Premiums earned
Fee and commission income
2 Total operating cost 1,800,173,050.63 1,830,369,837.74
Including: Cost of sales 1,468,050,770.60 1,472,630,144.11
Interest expense
Page 96 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Payment of fees and commission
Surrender fund
Net indemnity expenditure
Draw the net reserve of insurance
liability contract
Policy dividend expense
Reinsurance cost
Taxes and surcharges 9,481,412.61 8,282,476.90
Selling expenses 123,119,378.16 119,248,680.76
Administrative expenses 161,949,583.52 174,818,664.63
R&D expenses 50,366,067.58 59,929,020.05
Finance costs -12,794,161.84 -4,539,148.71
Including: Interest expenses 10,539,931.90 5,872,796.16
Interest income 22,603,240.17 12,725,562.50
Add: Other income 10,323,357.51 4,339,827.39
Investment income (loss with "-" sign) -8,194,916.20 36,109,196.08
Including: Share of profit or loss of joint
ventures and associates -2,914,122.66 -2,332,949.80
Income from derecognition of
financial assets measured at amortised cost (loss with
"-" sign)
Exchange gain (loss with "-" sign)
Net exposure hedging gain (loss with "-"
sign)
Gain/loss on changes in fair value (loss with
"-" sign) -85,374,294.70 2,006,095.39
Credit impairment loss (loss is listed with "-
" sign) 662,562.69 -2,271,114.46
Asset impairment loss (loss with "-" sign) -5,743,282.79 -5,612,938.09
Gain/loss on disposal of assets (loss with "-"
sign) 5,094,479.46 -2,277,157.05
3 Operating profit (losses are listed with "-" sign) 277,783,762.74 284,530,525.24
Add: Non-operating income 939,908.99 2,034,810.24
Less: Non-operating expenses 389,972.29 1,131,918.48
5 Gross profit (the gross loss shall be filled in with the
sign "-") 278,333,699.44 285,433,417.00
Less: Income tax expenses 90,957,489.73 56,229,619.60
Net profit (net loss is listed with "-" sign) 187,376,209.71 229,203,797.40
(1) Net profit from continuing operations
Page 97 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
i. Net profit from continuing operations (net loss
with "-" sign) 187,376,209.71 229,203,797.40
ii. Net profit from termination of operation (net
loss with "-" sign)
(2) Net profit classified by attribution of
ownership
i. Net profit attributable to owners of the parent 163,880,472.14 206,149,605.30
ii. Net profit attributable to non-controlling
interests 23,495,737.57 23,054,192.10
6 Other comprehensive income/(loss), net of tax -28,881,848.39 63,837,540.77
Other comprehensive income/(loss) attributable
to owners of the parent, net of tax -29,083,521.22 64,443,141.24
(1) Other comprehensive loss that will not be
reclassified to profit or loss 61,371.94 -247,369.25
i. Changes caused by remeasurements
on defined benefit schemes 61,371.94 -247,369.25
ii. Other comprehensive income that
cannot be transferred to profit or loss under the equity
method
iii. Changes in fair value of investments
in other equity instruments
iv. Fair value change of enterprise's
own credit risk
v. Other
(2) Other comprehensive income/(loss) that
will be reclassified to profit or loss -29,144,893.16 64,690,510.49
i. Other comprehensive income that can
be transferred to profit or loss under the equity method
ii. Changes in fair value of other debt
investments
iii. The amount of financial assets
reclassified to other comprehensive income
iv. Provision for credit impairment of
other debt investments
v. Cash flow hedging reserve
vi. Differences arising from the
translation of foreign currency-denominated financial -29,144,893.16 64,690,510.49
statements
vii. Other
Other comprehensive income attributable to non-
controlling interests, net of tax 201,672.83 -605,600.47
Total comprehensive income 158,494,361.32 293,041,338.17
Page 98 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Total comprehensive income attributable to
owners of the parent 134,796,950.92 270,592,746.54
Total comprehensive income attributable to non-
controlling interests 23,697,410.40 22,448,591.63
Earnings per share:
(1) Basic earnings per share 0.14 0.17
(2) Diluted earnings per share 0.14 0.17
Legal representative: Tang Zhuolin Chief in charge of accounting work: Shao Yongfeng Head of accounting institution: Chen Nan
4. Parent Company Income Statement
Unit: RMB yuan
Item H1 2024 H1 2023
1 Operating Revenue 183,076,847.69 219,595,252.63
Less: Cost of sales 100,538,863.01 117,899,186.43
Taxes and surcharges 5,080,596.56 4,622,821.78
Selling expenses 13,018,716.98 18,963,858.37
Administrative expenses 32,618,565.06 47,531,438.00
R&D expenses 9,413,776.76 9,329,637.83
Finance costs -3,498,579.49 -8,777,405.86
Including: Interest expense 2,157,788.10 443,302.69
Interest income 7,669,201.91 6,549,723.09
Add: other income 1,345,739.76 2,476,014.96
Investment income (loss with "-" sign) -5,482,815.06 -4,520,432.89
Including: Share of profit or loss of joint
ventures and associates -2,158,740.92 -1,781,870.58
Termination of recognition
of gains on financial assets measured at amortised
cost (loss with "-" sign)
Net exposure hedging gain (loss with "-
" sign)
Gain/loss on changes in fair value (loss
-85,765,352.26 -5,837,992.54
with "-" sign)
Credit impairment loss (loss is listed
419,338.54 336,909.99
with "-" sign)
Asset impairment loss (loss with "-"
-423,541.64 -336,909.99
sign)
Gain/loss on disposal of assets (loss
-0.01
with "-" sign)
2 Operating profit (loss shall be listed with "-"
-64,001,721.85 22,143,305.60
sign)
Add: Non-operating income 50,204.16 285,781.66
Page 99 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Less: Non-operating expenses 3.01 837,597.40
3 Gross profit (gross loss shall be filled in with the
sign "-") -63,951,520.70 21,591,489.86
Less: Income tax expenses 7,826,397.77 3,649,218.29
4 Net profit (net loss is listed with "-" sign) -71,777,918.47 17,942,271.57
(1) Net profit from continuing operation (net
-71,777,918.47 17,942,271.57
loss with "-" sign)
(2) Net profit from termination of operation
(net loss with "-" sign)
5 Other comprehensive income/(loss), net of tax
(1) Other comprehensive loss that will not be
reclassified to profit or loss
i. Re-measure the change in the
benefit plan
ii. Other comprehensive income
that cannot be transferred to profit or loss under
the equity method
iii. Changes in fair value of
investments in other equity instruments
iv. Fair value change of enterprise's
own credit risk
v. Other
(2) Other comprehensive income/(loss) that
will be reclassified to profit or loss
i. Other comprehensive income
that can be transferred to profit or loss under the
equity method
ii. Changes in fair value of other
debt investments
iii. The amount of financial assets
reclassified to other comprehensive income.
iv. Provision for credit impairment
of other debt investments.
v. Cash flow hedging reserve.
vi. Differences arising from the
translation of foreign currency-denominated
financial statements
vii. Other.
6 Total comprehensive income -71,777,918.47 17,942,271.57
7 Earnings per share:
(1) Basic earnings per share
(2) Diluted earnings per share
Page 100 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
5. Consolidated Statement of Cash Flows
Unit: RMB yuan
Item H1 2024 H1 2023
1 Cash flows from operating activities:
Proceeds from sale of goods and
2,133,184,710.51 2,234,391,644.12
rendering of services
Net increase in customer deposits
and interbank deposits
Net increase in borrowing from the
central bank
Net increase in funds transferred to
other financial institutions
Cash received from the premium
of the original insurance contract
Net cash received from reinsurance
business
Net increase in depositors' deposits
and investment funds
Cash that collects interest,
commission, and commission
Net increase in borrowed funds
Net increase in funds for
repurchase business
Net cash received by agents
buying and selling securities
Receipts of taxes and surcharges
29,629,118.26 30,108,533.01
refunds
Cash generated from other
48,750,670.03 30,337,789.00
operating activities
Subtotal of cash generated from
2,211,564,498.80 2,294,837,966.13
operating activities
Payments for goods and services 1,384,098,428.71 1,499,173,858.61
Net increase in customer loans and
advances
Net increase in central bank and
interbank deposits
Cash to pay the indemnity of the
Page 101 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
original insurance contract
Net increase in loan funds
Cash for the payment of interest,
fees, and commissions
Cash for the payment of policy
dividends
Cash payments to and on behalf of
442,114,678.46 393,735,088.13
employees
Payments of all types of taxes and
94,893,671.53 61,126,879.31
surcharges
Cash used in other operating
171,887,256.45 149,366,073.56
activities
Subtotal of cash used in operating
2,092,994,035.15 2,103,401,899.61
activities
Net cash generated from/used in
118,570,463.65 191,436,066.52
operating activities
2 Cash flows from investing activities:
Proceeds from disinvestment 830,003,799.66 1,778,154,089.71
Investment income 1,966,111.00 60,835,876.45
Net proceeds from the disposal of
fixed assets, intangible assets, and other 9,543,239.57 92,406.87
long-lived assets
Disposal of net cash received by
subsidiaries and other business units
Cash generated from other
investing activities
Subtotal of cash generated from
841,513,150.23 1,839,082,373.03
investing activities
Payments for the acquisition of
fixed assets, intangible assets, and other 86,360,919.88 113,551,038.37
long-lived assets
Payments for investments 916,127,239.46 1,704,863,903.07
Net increase in pledged loans
Obtain net cash paid by
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing 1,002,488,159.34 1,818,414,941.44
Page 102 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
activities
Net cash generated from/used in
-160,975,009.11 20,667,431.59
investing activities
3 Cash flows from financing activities:
Absorb the cash received by the
investment
Including: the subsidiary
absorbs the cash received from the
investment of minority shareholders
Borrowings raised 148,093,714.84 360,128,520.13
Cash generated from other
155,429,105.81 39,381,507.99
financing activities
Subtotal of cash generated from
303,522,820.65 399,510,028.12
financing activities
Repayment of borrowings 332,379,346.30 288,815,086.23
Interest and dividends paid 9,300,470.13 7,237,289.74
Including: Interest and
dividends paid to minority shareholders
Cash used in other financing
55,993,188.10 238,991,697.89
activities
Subtotal of cash used in financing
397,673,004.53 535,044,073.86
activities
Net cash generated from/used in
-94,150,183.88 -135,534,045.74
financing activities
4 Effect of foreign exchange rates
-25,768,847.36 53,331,073.03
changes on cash and cash equivalents
5 Net (decrease)/increase in cash and
-162,323,576.70 129,900,525.40
cash equivalents
Add: Cash and cash equivalents,
1,672,514,611.84 1,233,720,697.27
beginning of the period
6 Cash and cash equivalents, end of the
1,510,191,035.14 1,363,621,222.67
period
6. Parent Company Statement of Cash Flow
Unit: RMB yuan
Item H1 2024 H1 2023
1 Cash flow generated by business
Page 103 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
activities:
Cash received from the sale of
150,619,380.19 282,261,729.73
goods and the provision of services
Receipts of taxes and surcharges
7,593,327.09 8,800,337.38
refunds
Cash generated from other
33,938,546.55 14,348,299.02
operating activities
Subtotal of cash generated from
192,151,253.83 305,410,366.13
operating activities
Payments for goods and services 119,991,428.65 115,692,389.65
Cash payments to and on behalf of
53,507,816.89 54,177,377.99
employees
Payments of all types of taxes and
9,174,721.73 4,054,551.59
surcharges
Cash used in other operating
18,963,431.44 126,905,787.49
activities
Subtotal of cash used in operating
201,637,398.71 300,830,106.72
activities
Net cash generated from/used in
-9,486,144.88 4,580,259.41
operating activities
2 Cash flows from investing activities:
Proceeds from disinvestment 463,677,581.78 1,174,847,116.06
Investment income 39,246,958.11 18,717,756.49
Net proceeds from the disposal of
fixed assets, intangible assets, and other 0.00
long-lived assets
Disposal of net cash received by
subsidiaries and other business units
Cash generated from other
60,000,000.00 270,000,000.00
investing activities
Subtotal of cash generated from
562,924,539.89 1,463,564,872.55
investing activities
Payments for the acquisition of
fixed assets, intangible assets, and other 2,086,657.84 10,894,394.77
long-lived assets
Payments for investments 540,547,812.01 1,281,050,329.82
Obtain net cash paid by
subsidiaries and other business units
Page 104 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Cash used in other investing
activities
Subtotal of cash used in investing
542,634,469.85 1,291,944,724.59
activities
Net cash generated from/used in
20,290,070.04 171,620,147.96
investing activities
3 Cash flows from financing activities:
Absorb the cash received by the
investment
Cash received for obtaining loans 68,180,000.00
Cash generated from other
115,953,756.22 8,077,201.63
financing activities
Subtotal of cash generated from
115,953,756.22 76,257,201.63
financing activities
Repayment of borrowings 3,848,000.00
Interest and dividends paid 903,599.82 2,635,213.97
Cash used in other financing
20,151,681.90 201,228,410.87
activities
Subtotal of cash used in financing
24,903,281.72 203,863,624.84
activities
Net cash generated from/used in
91,050,474.50 -127,606,423.21
financing activities
4 Effect of foreign exchange rates
changes on cash and cash equivalents
5 Net (decrease)/increase in cash and
101,854,399.66 48,593,984.16
cash equivalents
Add: Cash and cash equivalents,
405,841,967.20 142,319,826.12
beginning of the period
6 Cash and cash equivalents, end of the
507,696,366.86 190,913,810.28
period
Page 105 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
7. Consolidated Statements of Changes in Equity
Amount of current period
Unit: RMB yuan
H1 2024
Equity attributable to owners of the parent
Item Other equity instruments Non-controlling
Other
Less: T reasury Special Surplus General Retained Total equity
Share capital Capital surplus comprehensive Others Subtotal interests
Preference Perpetual
Others stock reserve reserves reserve earnings
shares bonds income
I. On 31 December 2023 1,240,618,400.00 2,889,928,997.21 218,298,532.79 75,122,078.52 16,229,817.03 51,830,974.45 456,258,959.55 4,511,690,693.97 222,517,275.37 4,734,207,969.34
Add: Adjustments for
changes in accounting policies
Adjustments for
correction of previous errors
Other adjustments
II. On 1 January 2024 1,240,618,400.00 2,889,928,997.21 218,298,532.79 75,122,078.52 16,229,817.03 51,830,974.45 456,258,959.55 4,511,690,693.97 222,517,275.37 4,734,207,969.34
III. Changes for the period (“-”
-21,572,060.00 -78,137,677.44 -100,775,491.39 -29,083,521.22 609,795.24 163,880,472.14 136,472,500.11 23,116,196.15 159,588,696.26
for decrease)
(I) Total comprehensive income -29,083,521.22 163,880,472.14 134,796,950.92 23,697,410.40 158,494,361.32
(II) Owner’s contributions and
-21,572,060.00 -78,137,677.44 -100,775,491.39 1,065,753.95 -581,214.25 484,539.70
reduction in capital
1. Ordinary shares increased by
owners
2. Capital increased by holders of
other equity instruments
Page 106 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
H1 2024
Equity attributable to owners of the parent
Item Other equity instruments Non-controlling
Other
Less: T reasury Special Surplus General Retained Total equity
Share capital Capital surplus comprehensive Others Subtotal interests
Preference Perpetual
Others stock reserve reserves reserve earnings
shares bonds income
3. Share-based payments
1,065,753.95 1,065,753.95 1,065,753.95
included in equity
4. Others -21,572,060.00 -79,203,431.39 -100,775,491.39 -581,214.25 -581,214.25
(III) Profit distribution
1. Appropriation to surplus
reserves
2. Appropriation to general
reserve
3. Appropriation to owners (or
shareholders)
4. Others
(IV) T ransfers within equity
1. Increase in capital (or share
capital) from capital surplus
2. Increase in capital (or share
capital) from surplus reserves
3. Surplus reserves used to offset
loss
4. Changes in defined benefit
schemes transferred to retained
Page 107 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
H1 2024
Equity attributable to owners of the parent
Item Other equity instruments Non-controlling
Other
Less: T reasury Special Surplus General Retained Total equity
Share capital Capital surplus comprehensive Others Subtotal interests
Preference Perpetual
Others stock reserve reserves reserve earnings
shares bonds income
earnings
5. Other comprehensive income
transferred to retained earnings
6. Others
(V) Special reserve 609,795.24 609,795.24 609,795.24
1. Provision in the period 1,198,032.00 1,198,032.00 1,198,032.00
2. Utilisation in the period -588,236.76 -588,236.76 -588,236.76
(VI) Others
IV. On 30 June 2024 1,219,046,340.00 2,811,791,319.77 117,523,041.40 46,038,557.30 16,839,612.27 51,830,974.45 620,139,431.69 4,648,163,194.08 245,633,471.52 4,893,796,665.60
Amount of previous period
Unit: RMB yuan
H1 2023
Equity attributable to owners of the parent
Item Other equity instruments Non-controlling
Other
Less: T reasury Special Surplus General Retained Total equity
Share capital Capital surplus comprehensive Others Subtotal interests
Preference Perpetual
Others stock reserve reserves reserve earnings
shares bonds income
I. On 31 December 2022 1,241,106,400.00 2,947,263,843.53 240,255,502.45 26,512,917.07 14,488,955.52 51,830,974.45 23,018,722.11 4,063,966,310.23 202,028,952.72 4,265,995,262.95
Add: Adjustments for
Page 108 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
H1 2023
Equity attributable to owners of the parent
Item Other equity instruments Non-controlling
Other
Less: T reasury Special Surplus General Retained Total equity
Share capital Capital surplus comprehensive Others Subtotal interests
Preference Perpetual
Others stock reserve reserves reserve earnings
shares bonds income
changes in accounting policies
Adjustments for
correction of previous errors
Other adjustments
II. On 1 January 2023 1,241,106,400.00 2,947,263,843.53 240,255,502.45 26,512,917.07 14,488,955.52 51,830,974.45 23,018,722.11 4,063,966,310.23 202,028,952.72 4,265,995,262.95
III. Changes for the period (“-”
-128,000.00 -54,701,978.53 -29,372,784.67 64,443,141.24 978,436.36 206,149,605.30 246,113,989.04 20,223,901.63 266,337,890.67
for decrease)
(I) Total comprehensive income 64,443,141.24 206,149,605.30 270,592,746.54 22,448,591.63 293,041,338.17
(II) Owner’s contributions and
-128,000.00 -56,926,668.53 -29,372,784.67 -27,681,883.86 -27,681,883.86
reduction in capital
1. Ordinary shares increased by
owners
2. Capital increased by holders of
other equity instruments
3. Share-based payments included
20,566,434.45 20,566,434.45 20,566,434.45
in equity
4. Others -128,000.00 -77,493,102.98 -29,372,784.67 -48,248,318.31 -48,248,318.31
(III) Profit distribution
1. Appropriation to surplus
reserves
Page 109 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
H1 2023
Equity attributable to owners of the parent
Item Other equity instruments Non-controlling
Other
Less: T reasury Special Surplus General Retained Total equity
Share capital Capital surplus comprehensive Others Subtotal interests
Preference Perpetual
Others stock reserve reserves reserve earnings
shares bonds income
2. Appropriation to general
reserve
3. Appropriation to owners (or
shareholders)
4. Others
(IV) T ransfers within equity
1. Increase in capital (or share
capital) from capital surplus
2. Increase in capital (or share
capital) from surplus reserves
3. Surplus reserves used to offset
loss
4. Changes in defined benefit
schemes transferred to retained
earnings
5. Other comprehensive income
transferred to retained earnings
6. Others
(V) Special reserve 978,436.36 978,436.36 978,436.36
1. Provision in the period 2,531,949.77 2,531,949.77 2,531,949.77
Page 110 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
H1 2023
Equity attributable to owners of the parent
Item Other equity instruments Non-controlling
Other
Less: T reasury Special Surplus General Retained Total equity
Share capital Capital surplus comprehensive Others Subtotal interests
Preference Perpetual
Others stock reserve reserves reserve earnings
shares bonds income
2. Utilisation in the period -1,553,513.41 -1,553,513.41 -1,553,513.41
(VI) Others 2,224,690.00 2,224,690.00 -2,224,690.00
IV. On 30 June 2023 1,240,978,400.00 2,892,561,865.00 210,882,717.78 90,956,058.31 15,467,391.88 51,830,974.45 229,168,327.41 4,310,080,299.27 222,252,854.35 4,532,333,153.62
8. Company Statement of Changes in Equity
Amount of current period
Unit: RMB yuan
H1 2024
Other equity instruments
Item Other comprehensive
Share capital Preference Perpetual Capital surplus Less: T reasury stock Special reserve Surplus reserves Retained earnings Others Total equity
Others income
shares bonds
I. On 31 December 2023 1,240,618,400.00 2,745,450,997.27 218,298,532.79 6,645,318.98 51,830,974.45 -332,943,330.01 3,493,303,827.90
Add: Adjustments
for changes in accounting
policies
Adjustments
for correction of previous
errors
Other
Page 111 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
H1 2024
Other equity instruments
Item Other comprehensive
Share capital Preference Perpetual Capital surplus Less: T reasury stock Special reserve Surplus reserves Retained earnings Others Total equity
Others income
shares bonds
adjustments
II. On 1 January 2024 1,240,618,400.00 2,745,450,997.27 218,298,532.79 6,645,318.98 51,830,974.45 -332,943,330.01 3,493,303,827.90
III. Changes for the
-21,572,060.00 -78,792,391.92 -100,775,491.39 -311,380.45 -71,777,918.47 -71,678,259.45
period (“ -” for decrease)
(I) Total comprehensive
-71,777,918.47 -71,777,918.47
income
(II) Owner’s
contributions and -21,572,060.00 -78,792,391.92 -100,775,491.39 411,039.47
reduction in capital
1. Ordinary shares
increased by owners
2. Capital increased by
holders of other equity
instruments
3. Share-based payments
411,039.47 411,039.47
included in equity
4. Others -21,572,060.00 -79,203,431.39 -100,775,491.39
(III) Profit distribution
1. Appropriation to
surplus reserves
2. Appropriation to
Page 112 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
H1 2024
Other equity instruments
Item Other comprehensive
Share capital Preference Perpetual Capital surplus Less: T reasury stock Special reserve Surplus reserves Retained earnings Others Total equity
Others income
shares bonds
owners (or shareholders)
3. Others
(IV) T ransfers within
equity
1. Increase in capital (or
share capital) from
capital surplus
2. Increase in capital (or
share capital) from
surplus reserves
3. Surplus reserves used
to offset loss
4. Changes in defined
benefit schemes
transferred to retained
earnings
5. Other comprehensive
income transferred to
retained earnings
6. Others
(V) Special reserve -311,380.45 -311,380.45
1. Provision in the period
Page 113 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
H1 2024
Other equity instruments
Item Other comprehensive
Share capital Preference Perpetual Capital surplus Less: T reasury stock Special reserve Surplus reserves Retained earnings Others Total equity
Others income
shares bonds
2. Utilisation in the
-311,380.45 -311,380.45
period
(VI) Others
IV. On 30 June 2024 1,219,046,340.00 2,666,658,605.35 117,523,041.40 6,333,938.53 51,830,974.45 -404,721,248.48 3,421,625,568.45
Amount of previous period
Unit: RMB yuan
H1 2023
Other equity instruments
Item Other comprehensive
Share capital Preference Perpetual Capital surplus Less: T reasury stock Special reserve Surplus reserves Retained earnings Others Total equity
Others income
shares bonds
I. On 31 December 2022 1,241,106,400.00 2,820,661,243.26 240,255,502.45 7,200,502.88 51,830,974.45 -643,877,009.80 3,236,666,608.34
Add: Adjustments
for changes in accounting
policies
Adjustments
for correction of previous
errors
Other
adjustments
Page 114 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
H1 2023
Other equity instruments
Item Other comprehensive
Share capital Preference Perpetual Capital surplus Less: T reasury stock Special reserve Surplus reserves Retained earnings Others Total equity
Others income
shares bonds
II. On 1 January 2023 1,241,106,400.00 2,820,661,243.26 240,255,502.45 7,200,502.88 51,830,974.45 -643,877,009.80 3,236,666,608.34
III. Changes for the
-128,000.00 -57,792,298.44 -29,372,784.67 375,487.90 17,942,271.57 -10,229,754.30
period (“ -” for decrease)
(I) Total comprehensive
17,942,271.57 17,942,271.57
income
(II) Owner’s
contributions and -128,000.00 -57,792,298.44 -29,372,784.67 -28,547,513.77
reduction in capital
1. Ordinary shares
increased by owners
2. Capital increased by
holders of other equity
instruments
3. Share-based payments
19,700,804.54 19,700,804.54
included in equity
4. Others -128,000.00 -77,493,102.98 -29,372,784.67 -48,248,318.31
(III) Profit distribution
1. Appropriation to
surplus reserves
2. Appropriation to
owners (or shareholders)
Page 115 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
H1 2023
Other equity instruments
Item Other comprehensive
Share capital Preference Perpetual Capital surplus Less: T reasury stock Special reserve Surplus reserves Retained earnings Others Total equity
Others income
shares bonds
3. Others
(IV) T ransfers within
equity
1. Increase in capital (or
share capital) from
capital surplus
2. Increase in capital (or
share capital) from
surplus reserves
3. Surplus reserves used
to offset loss
4. Changes in defined
benefit schemes
transferred to retained
earnings
5. Other comprehensive
income transferred to
retained earnings
6. Others
(V) Special reserve 375,487.90 375,487.90
1. Provision in the period 825,942.88 825,942.88
Page 116 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
H1 2023
Other equity instruments
Item Other comprehensive
Share capital Preference Perpetual Capital surplus Less: T reasury stock Special reserve Surplus reserves Retained earnings Others Total equity
Others income
shares bonds
2. Utilisation in the
-450,454.98 -450,454.98
period
(VI) Others
IV. On 30 June 2023 1,240,978,400.00 2,762,868,944.82 210,882,717.78 7,575,990.78 51,830,974.45 -625,934,738.23 3,226,436,854.04
Page 117 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
III Corporate Background
Guangdong Dongfang Precision Science & Technology Co., Ltd. (the "Company"), a joint stock company
with limited liability registered in Guangdong Province of the People's Republic of China and established on
9 December 1996, obtained a Business License for Enterprise Legal Person with a registration number of
440682000040868.
In August 2011, upon the approval by the China Securities Regulatory Commission (CSRC) in the Reply on
Approving the Initial Public Offering of Shares by Guangdong Dongfang Precision Science & Technology
Co., Ltd. (ZH.J.X.K. [2011] No. 1237), the Company issued Renminbi-denominated ordinary shares to the
public, and was listed on the Shenzhen Stock Exchange in the same month. The Company started to use the
unified social credit code (914406002318313119) in 2016. The Company is headquartered in 2 Qiangshi Road,
Shishan Town, Nanhai District, Foshan City, Guangdong Province, China.
With “intelligent equipment manufacturing”as its primary strategic focus, Dongfang Precisionconcentrates on
the manufacturingof high-end intelligent equipment. Its principal operations include “intelligent packaging
equipment”and “water powersports equipment”. The “intelligent packaging
equipmentbusiness”consists of smart corrugated packaging equipment, digital printers, and industrial
Internet industry solutions.
The actual controllers of the Company are Tang Zhuolin and Tang Zhuomian.
These financial statements were authorized for issue by the Board of Directors of the Company on 25 July
mar2024.
IV.Basis of Preparation of the Financial Statements
These financial statements have been prepared in accordance with China’s “Accounting Standards for Business
Enterprises — Basic Standards” promulgated by the Ministry of Finance and the specific accounting standards,
application guidance, interpretations and other relevant regulations issued or amended thereafter (hereafter
collectively referred to as “Accounting Standards for Business Enterprises” or “CAS”). In addition, the
financial statements also disclose relevant financial information in accordance with the Rules No. 15 for the
Preparation of Information Disclosure by Companies Offering Securities to the Public - General Provisions on
Financial Reports.
The financial statements are prepared on a going concern basis.
Page 118 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates
The Group has formulated specific accounting policies and accounting estimates according to the
characteristics of its actual production and operation, which is mainly embodied in the provision for the bad
debt of accounts receivable, provision for write-down of inventories, depreciation of fixed assets, provision
for product warranties, capitalization conditions for expenditure on the development phase of research and
development expenses and recognition and measurement of revenue.
1. Statement of compliance
The financial statements present truly and completely the financial positions of the Group and the Company
as at 30 June 2024, and the financial performance and the cash flows for the 1 st half of 2024 then ended in
accordance with Accounting Standards for Business Enterprises.
2. Accounting year
The accounting year of the Group is from 1 January to 31 December of each calendar year.
3. Functional currency
The Group’s functional currency and the currency used in preparing the financial statements were Renminbi.
The amounts in the financial statements were denominated in Renminbi yuan, unless otherwise stated.
4. Determination method and selection basis of materiality criteria
Materiality criteria
Significant construction in Budgeted amount for investment exceeds RMB50,000,000
progress
Significant cash flows from Amount exceeds RMB50,000,000
investing activities
Significant non-wholly owned Net assets of non-wholly owned subsidiaries account for
subsidiaries more than 10% of consolidated net assets
Significant associates The carrying amount of long-term equity investments in
associates accounts for more than 5% of the consolidated net
assets
5. Business combination
Business combinations are classified into business combinations involving entities under common control and
business combinations not involving entities under common control.
Business combinations involving entities under common control
A business combination involving entities under common control is a business combination in which all of the
combining entities are ultimately controlled by the same party or parties both before and after the business
combination, and that control is not transitory.
Page 119 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
5. Business combination (cont’d)
Business combinations involving entities under common control (cont’d)
Assets and liabilities obtained by combining party in the business combination involving entities under common
control (including goodwill arising from the acquisition of the merged party by the ultimate controller) are
recognized on the basis of their carrying amounts at the combination date recorded on the financial statements of
the ultimate controlling party. The difference between the carrying amount of the consideration paid for the
combination (or aggregate face values of the shares issued) and the carrying amount of the net assets obtained is
adjusted to capital surplus. If the capital surplus are not sufficient to absorb the difference, any excess is adjusted to
retained earnings.
Business combinations not involving entities under common control
A business combination not involving entities under common control is a business combination in which all of the
combining entities are not ultimately controlled by the same party or parties both before and after the business
combination.
The acquiree’s identifiable assets, liabilities and contingent liabilities are recognized at their fair values at the
acquisition date. The excess of the sum of the consideration paid (or equities issued) for business combination and
equity interests in the acquiree held prior to the date of acquisition over the share of the attributable net identifiable
assets of the acquiree, measured at fair value, was recognized as goodwill, which is subsequently measured at cost
less cumulative impairment loss. In case the fair value of the sum of the consideration paid (or equities issued) and
equity interests in the acquire held prior to the date of acquisition is less than the fair value of the share of the
attributable net identifiable assets of the acquiree, a review of the measurement of the fair values of the identifiable
assets, liabilities and contingent liabilities, the consideration paid for the combination (or equity issued) and the
equity interests in the acquiree held prior to the date of acquisition is conducted. If the review indicates that the fair
value of the sum of the consideration paid (or equities issued) and equity interests in the acquiree held prior to the
date of acquisition is indeed less than the fair value of the share of the attributable net identifiable assets of the
acquiree, the difference is recognized in profit or loss.
6. Consolidated financial statements
The consolidation scope for consolidated financial statements is determined based on the concept of control,
including the Company and all subsidiaries’ financial statements. Subsidiaries are those enterprises or entities which
the Company has control over (including enterprises, separable components of investee units and structured entities
controlled by the Company). An investor controls an investee when the investor is exposed, or has rights, to variable
returns from its involvement with the investee and has the ability to affect those returns through its power over the
investee.
The financial statements of the subsidiaries are prepared for the same reporting period as the Company, using
consistent accounting policies. Any inconsistent accounting policies have been adjusted to become consistent with
the Company’s accounting policies. All assets, liabilities, equities, revenues, costs and cash flows arising from
intercompany transactions are eliminated on consolidation.
Page 120 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
6. Consolidated financial statements (cont’d)
The excess of current loss attributable to non-controlling shareholders of a subsidiary over their entitlements to the
opening balance of equity shall be charged to non-controlling interests.
For subsidiaries obtained through a business combination not involving entities under common control, the
operating results and cash flows of the acquirees will be recognized in consolidated financial statements from the
date the Group effectively obtains the control until the date that control is terminated. When consolidated financial
statement is prepared, the subsidiaries’ financial statements will be adjusted based on the fair values of the
identifiable assets, liabilities and contingent liabilities at the acquisition date.
For subsidiaries acquired through combination of entities under common control, the business results and cash flows
of the combined entities are included in the consolidated financial statements from the beginning of the period in
which the combination occurred. When preparing and comparing the consolidated financial statements, the Group
makes adjustments to relevant items of the financial statements of the previous period, deeming the reporting entity
formed through combination as existing since initial implementation of control by the ultimate controlling party.
In the event of the change in one or more elements of control as a result of changes in relevant facts and conditions,
the Group reassesses whether it has control over the investee.
If the control right is not lost, the change of minority shareholders' equity shall be regarded as equity
transaction.
7. Cash and cash equivalents
Cash comprises cash on hand and deposits readily available for payments. Cash equivalents represent short-term
highly liquid investments which are readily convertible to known amounts of cash, and subject to an insignificant
risk of changes in value.
8. Foreign currency translation
For foreign currency transactions, the Group translates the foreign currency into its functional currency.
Upon initial recognition, foreign currency transactions are translated into the functional currency using the spot
exchange rate of the dates on which transactions occur. At the balance sheet date, foreign currency monetary items
are translated using the spot exchange rate at the balance sheet date. The translation differences arising from the
settlement and foreign currency monetary items are recognized in profit or loss. Also at the balance sheet date,
foreign currency non-monetary items measured at historical cost continue to be translated using the spot exchange
rate at the dates of the transactions and it does not change its carrying amount in functional currency. Foreign
currency non-monetary items measured at fair value are translated using the spot exchange rate. The differences
arising from the above translations are recognized in current profit or loss or other comprehensive income according
to the nature of foreign currency non-monetary items.
Page 121 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
8. Foreign currency translation (cont’d)
The Group translates the functional currencies of foreign operations into Renminbi when preparing the financial
statements. Asset and liability items in the balance sheet are translated at the spot exchange rate prevailing at the
balance sheet date. Equity items, except for retained earnings, are translated at the spot exchange rates at the date
when such items arose. Revenue and expense items in the income statement are translated using the average
exchange rate for the periods when transactions occur. Translation differences arising from the aforesaid translation
of financial statements denominated in foreign currency shall be recognized as other comprehensive income. When
foreign operations are disposed, other comprehensive income relating to the foreign operation is transferred to
current profit or loss. Partial disposal shall be recognized on a pro-rata basis.
Cash flows denominated in foreign currencies and foreign subsidiaries’ cash flows are translated using the average
exchange rate for the period when cash flows occur. The impact on cash by the fluctuation of exchange rates is
presented as a separate line item of reconciliation in the statement of cash flows.
9. Financial instruments
Financial instruments refer to the contracts which give rise to a financial asset in one entity and a financial liability
or equity instrument in another entity.
Recognition and derecognition of financial instruments
The Group recognizes a financial asset or a financial liability when it becomes a party to the contractual provisions
of the financial instrument.
A financial asset (or part of it, or a part of a group of similar financial asset) is derecognized when one of the
following criteria is met, that is, when a financial asset is written off from its account and balance sheet:
(1) The right of receiving the cash flow generated from the financial asset has expired;
(2) The right of receiving cash flow generated by the financial assets is transferred, or an obligation of paying
the full amount of cash flow received to third parties in a timely manner has been undertaken under “pass-
through” agreements, where (a) substantially all risks and rewards of the ownership of such type of financial
assets have been transferred, or (b) control over such type of financial assets has not been retained even
though substantially all risks and rewards of the ownership of such type of financial assets have been neither
transferred nor retained.
If the obligation of financial liability has been fulfilled, cancelled or expired, the financial liability is derecognized.
If the present financial liability is substituted by the same debtee with another liability differing in substance, or the
terms of the present liability have been substantially modified, this substitution or modification is treated as
derecognition of a present liability and recognition of a new liability with any arising differences recognized in
profit or loss.
Conventional dealings in financial assets are recognized or derecognized under the trade day accounting method.
Conventional dealings refer to the receipt or delivery of financial assets within periods stipulated by the law and
according to usual practices. The trade day is the date on which the Group undertakes to buy or sell a financial asset.
Page 122 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
9. Financial instruments (cont’d)
Classification and measurement of financial assets
At initial recognition, the Group classifies its financial assets into: financial assets at fair value through profit or
loss, financial assets at amortized cost, or financial assets at fair value through other comprehensive income,
according to the Group’s business model for managing financial assets and the contract cash flow characteristics of
the financial assets. When and only when the Group changes its business model of managing financial assets, all
relevant financial assets affected will be re-classified.
Financial assets are measured at fair value on initial recognition, but if the accounts receivable or notes receivable
generated from the sales of goods or provision of services do not contain significant financing components or do
not consider financing components of no longer than one year, the initial measurement will be based on the
transaction price.
For financial assets at fair value through profit or loss, the relevant transaction costs are directly recognized in profit
or loss; for other financial assets, the relevant transaction costs are recognized in their initial recognition amount.
The subsequent measurement of financial assets is dependent on its classification:
Debt instruments measured at amortized cost
Financial assets fulfilling all of the following conditions are classified as financial assets at amortized cost: the
objective of the Group’s business management model in respect of such type of financial assets is to generate
contract cash flow; the contract terms of such type of financial assets provide that cash flow generated on specific
dates represents interest payment in relation to principal amounts based on outstanding principal amounts only.
Interest income from such type of financial assets are recognized using the effective interest rate method, and any
profit or loss arising from derecognition, amendments or impairment shall be charged to current profit or loss.
Debt instruments at fair value through other comprehensive income
Financial assets fulfilling all of the following conditions are classified as financial assets at fair value through other
comprehensive income: the objective of the Group’s business management model in respect of such type of financial
assets is both to generate contract cash flow and to sell such type of financial assets; the contract terms of such type
of financial assets provide that cash flow generated on specific dates represents interest payment in relation to
principal amounts based on outstanding principal amounts only. Interest income from this type of financial assets
is recognized using the effective interest rate method. Other than interest income, impairment loss and exchange
differences which shall be recognized as current profit or loss, other fair value changes shall be included in other
comprehensive income. Upon derecognition of the financial assets, the cumulative gains or losses previously
included in other comprehensive income shall be transferred from other comprehensive income to current profit or
loss.
Financial assets at fair value through profit or loss
Other than financial assets measured at amortized cost and financial assets at fair value through other comprehensive
income as aforementioned, all financial assets are classified as financial assets at fair value through profit or loss,
which are subsequently measured at fair value, any changes of which are recognized in current profit or loss.
Page 123 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
9. Financial instruments (cont’d)
Classification and measurement of financial liabilities
The Group classifies its financial liabilities at initial recognition: financial liabilities at fair value through profit or
loss, and other financial liabilities. For financial liabilities at fair value through profit or loss, the relevant transaction
costs are directly recognized in profit or loss; for other financial liabilities, the relevant transaction costs are
recognized in their initial recognition amount.
The subsequent measurement of financial liabilities is dependent on its classification:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include mainly financial liabilities held for trading(comprising
derivatives classified as financial liabilities). Financial liabilities held for trading (comprising derivatives classified
as financial liabilities) are subsequently measured at fair value and all changes are recognized in current profit or
loss.
Other financial liabilities
Subsequent to initial recognition, these financial liabilities are carried at amortized cost using the effective interest
method.
Impairment of financial instruments
The Group performs impairment treatment on financial assets at amortized cost, debt instruments at fair value
through other comprehensive income and contract assets based on expected credit losses (ECL) and recognizes
allowances for losses.
For receivables and contract assets that do not contain significant financing components, the Group adopts a
simplified measurement method to measure allowances for losses based on an amount equivalent to the lifetime
expected credit losses.
Financial assets other than those measured with simplified valuation methods, the Group evaluates at each balance
sheet date whether its credit risk has significantly increased since initial recognition. The period during which credit
risk has not significantly increased since initial recognition is considered the first stage, at which the Group shall
measure loss allowance based on the amount of expected credit loss for the next 12 months and shall compute
interest income according to the book balance and effective interest rate; the period during which credit risk has
significantly increased since initial recognition although no credit impairment has occurred is considered the second
stage, at which the Group shall measure loss allowance based on the amount of expected credit loss for the entire
valid period and shall compute interest income according to the book balance and effective interest rate; The period
during which credit impairment has occurred after initial recognition is considered the third stage, at which the
Group shall measure loss allowance based on the amount of the lifetime expected credit loss and shall compute
interest income according to the amortized cost and effective interest rate.
The Group estimates the expected credit loss of financial instruments individually and on a group basis. The Group
considers the credit risk features of different customers and estimates the expected credit losses of financial
instruments based on aging portfolio.
Page 124 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
9. Financial instruments (cont’d)
Impairment of financial instruments (cont’d)
For the Group’s criteria for judging whether credit risks have significantly increased, the definition of assets
subjected to credit impairment, and assumptions underlying the measurement of expected credit losses, please refer
to Note IX.2.
The Group's approach to measuring ECLs on financial instruments reflects factors such as the unbiased
probability-weighted average amount determined by evaluating a range of possible outcomes, the time value
of money, and reasonable and supportable information about past events, current conditions and projections
of future economic conditions available at the balance sheet date without undue additional cost or effort.
When the Group no longer reasonably expects to be able to fully or partially recover the contract cash flow of
financial assets, the Group directly writes down the book balance of such financial assets.
Derivative financial instruments
The Group uses derivative financial instruments. Derivative financial instruments are initially recognized at fair
value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value.
Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative.
Gains or losses arising from changes in the fair value of derivative instruments shall be directly recognized in current
profit or loss.
Transfer of financial assets
If the Group has transferred substantially all the risks and rewards associated with the ownership of a financial asset
to the transferee, the asset should be derecognized. If the Group retains substantially all the risks and rewards of
ownership of a financial asset, the asset should not be derecognized.
When the Group has neither transferred nor retained substantially all the risks and rewards of ownership of the
financial asset, it may either derecognize the financial asset and recognize any associated assets and liabilities if
control of the financial asset has not been retained; or recognizes the financial asset to the extent of its continuing
involvement in the transferred financial asset and recognizes an associated liability if control has been retained.
Assets formed by the continuing involvement by way of the provision of financial guarantee in respect of the
transferred financial assets shall be recognized as the lower of the carrying value of the financial asset and the
amount of financial guarantee. The amount of financial guarantee means the maximum amount among
considerations received to be required for repayment.
Page 125 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
10. Inventories
Inventories include raw materials, work-in-progress, finished goods, product deliveries, semi-finished goods,
materials consigned for processing, etc.
Inventories are initially recorded at costs. Inventories’ costs include purchasing costs, processing costs and other
costs. Actual costs of product deliveries are recognized using the weighted average method. Turnover materials
include low-value consumables, packaging materials, etc., which are expensed in full.
The Group adopts the perpetual inventory system.
Inventories on the balance sheet date are stated at the lower of cost or net realisable value. Inventory valuation
allowance is made and recognized in profit or loss when the net realisable value is lower than cost. Net realizable
value is determined based on the estimated selling price in the ordinary course of business, less the estimated costs
to completion and estimated costs necessary to make the sale and related taxes. Valuation allowances for raw
materials are established by category, and those for finished goods by individual item. For inventories that relate to
products produced and sold in the same region, have the same or similar ultimate purpose, and are difficult to
separate in measurement, valuation allowances are established on a combined basis.
Page 126 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
11. Long-term equity investments
Long-term equity investments include equity investments in subsidiaries, joint ventures and associates.
Long-term equity investments were recorded at initial investment cost on acquisition. For long-term equity
investments acquired through the business combination of entities under common control, the initial investment
cost shall be the share of carrying value of the equity of the merged party at the date of combination as stated in the
consolidated financial statements of the ultimate controlling party. Any difference between the initial investment
cost and the carrying value of the consideration for the combination shall be dealt with by adjusting the capital
surplus(if the capital surplus are insufficient for setting off the difference, such difference shall be further set off
against retained earnings). Upon disposal of the investment, other comprehensive income prior to the date of
combination shall be dealt with on the same basis as if the relevant assets or liabilities were disposed of directly by
the investee. Equity recognized as a result of changes in equity other than the set-off of profit and loss, other
comprehensive income and profit allocation of the investee shall be transferred to current profit and loss upon
disposal of the investment. Items which remain long-term equity investments after the disposal shall be accounted
for on a pro-rata basis, while items reclassified as financial instruments following the disposal shall be accounted
for in full. For long-term equity investments acquired through the business combination of entities not under
common control, the initial investment cost shall be the cost of combination (for business combinations of entities
not under common control achieved in stages through multiple transactions, the initial investment cost shall be the
sum of the carrying value of the equity investment in the acquired party held at the date of acquisition and new
investment cost incurred as at the date of acquisition). The cost of combination shall be the sum of assets contributed
by the acquiring party, liabilities incurred or assumed by the acquiring party and the fair value of equity securities
issued. Upon disposal of the investment, other comprehensive income recognized under the equity method held
prior to the date of acquisition shall be dealt with on the same basis as if the relevant assets or liabilities were
disposed of directly by the investee. Equity recognized as a result of changes in equity other than the set-off of profit
and loss, other comprehensive income and profit allocation of the investee shall be transferred to current profit and
loss upon disposal of the investment. Items which remain long-term equity investments after the disposal shall be
accounted for on a pro-rata basis, while items reclassified as financial instruments following the disposal shall be
accounted for in full. The initial investment cost of long-term equity investments other than those acquired through
business combination shall be recognized in accordance with the following: for those acquired by way of cash
payments, the initial investment cost shall be the consideration actually paid plus expenses, tax amounts and other
necessary outgoings directly related to the acquisition of the long-term equity investments.
In the financial statements of the Company, the cost method is used for long term equity investments in investees
over which the Company exercises control. Control is defined as the power exercisable over the investee, the
entitlement to variable return through involvement in the activities of the investee and the ability to influence the
amount of return using the power over the investee.
When the cost method is used, long-term equity investments are measured at initial cost on acquisition. When
additional investments are made or investments are recouped, the cost of longterm equity investments shall be
adjusted. Cash dividend or profit distribution declared by the investee shall be recognized as investment income for
the period.
Page 127 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
11. Long-term equity investments (cont’d)
The equity method is used to account for long-term equity investments when the Group can jointly control or has
significant influence over the invested entity. Joint control is the contractually agreed sharing of control of an
arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the
parties sharing control. Significant influence means having the authority to take part in the decision over the
financial and operational policies but not the authority to control or jointly control with other parties the formulation
of such policies.
Under the equity method, any excess of the initial investment cost over the Company’s share of the net fair value
of the investment’s identifiable assets and liabilities is included in the initial investment cost of the long-term equity
investment. When the carrying amount of the investment is less than the Company’s share of the fair value of the
investment’s identifiable net assets, the difference is recognized in profit or loss of the current period and debited
to long-term equity investments.
Under the equity method, after the long-term equity investments are acquired, investment gains or losses and other
comprehensive income are recognized according to the entitled share of net profit or loss and other comprehensive
income of the investee and the carrying amount of the long-term equity investment is adjusted accordingly. When
recognising the Group’s share of the net profit or loss of the invested entity, the Group makes adjustments based on
fair values of the investees’ identifiable assets and liabilities at the acquisition date in accordance with the Group’s
accounting policy and accounting period to investee’s net profits, eliminating pro-rata profit or loss from internal
transactions with associates and joint ventures attributed to investor (except that loss from inter-group transactions
deemed as asset impairment loss shall be fully recognized), provided that invested or sold assets constituting
businesses shall be excluded. When the invested enterprise declares profit distribution or cash dividends, the
carrying amount of investment is adjusted down by the Group’s share of the profit distribution and dividends. The
Group shall derecognize its share of the losses of the investee after the long-term equity investment together with
any long-term interests that in substance forms part of the Group’s net investment in the investee are reduced to
zero, except to the extent that the Group has incurred obligations to assume additional losses. The Group also adjusts
the carrying amount of long-term equity investments for other changes in owner’s equity of the investees (other
than the net-off of net profits or losses, other comprehensive income and profit distribution of the investee), and
includes the corresponding adjustment in equity.
12. Fixed assets
A fixed asset is recognized when, and only when, it is probable that future economic benefits that are associated
with the fixed asset will flow to the Group and the cost can be measured reliably. Subsequent expenditures related
to a fixed asset are recognized in the carrying amount of the fixed asset if the above recognition criteria are met,
and the carrying value of the replaced part is derecognized; otherwise, those expenditures are recognized in profit
or loss as incurred.
Fixed assets are initially recognized at cost. Cost of purchased fixed assets includes purchasing price, relevant taxes,
and any directly attributable expenditure for bringing the asset to working conditions for its intended use.
Page 128 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
12. Fixed assets (cont’d)
Except for those incurred by using the accrued expenses for safety production, fixed assets are depreciated on a
straight-line basis, and the respective estimated useful lives, estimated residual value ratios and annual depreciation
rates are as follows:
Estimated residual Annual
Useful life
value ratio depreciation rate
Buildings and constructions 20-40 years 5.00% 2.38%-4.75%
Machinery 5-18 years 5.00% 5.28%-19.00%
Transportation equipment 5-10 years 5.00% 9.5%-19.00%
Electronic equipment 3-10 years 5.00% 9.5%-31.67%
Office equipment 3-10 years 5.00% 9.5%-31.67%
Other equipment 5-10 years 5.00% 9.5%-19.00%
The Group reviews, at least at each year end, useful lives, estimated residual values, and depreciation methods of
fixed assets and makes adjustments if necessary.
13. Construction in progress
Construction in progress is measured at the actual construction expenditures, including necessary project work
expenses incurred during the period while construction is in progress, and other related fees.
The criteria for construction in progress to be transferred to fixed assets when it is ready for its intended use
are as follows:
Criteria
Buildings and constructions Actual start of use
The earlier of actual start of use/completion
Machinery of installation and acceptance
14. Borrowing costs
The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset
are capitalized. The amounts of other borrowing costs incurred are recognised as an expense in the period in which
they are incurred. The Group has no borrowing costs eligible for capitalization in the current year.
Page 129 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
15. Intangible assets
Overseas land use rights and trademark rights are intangible assets with indefinite useful lives. Impairment
tests shall be conducted annually regardless of whether there are indications of impairment. Such intangible
assets shall not be amortized and their useful life shall be reviewed during each accounting period. If there is
evidence suggesting that their useful life is limited, accounting treatment will be performed according to the
above policy on intangible assets with definite useful life.
Other intangible assets are amortised on a straight-line basis over their useful lives as follows:
Useful life Determination basis
Land use rights 40-50 years Term of land use right
The shorter of the term of trademark
Trademark 5-10 years rights/expected term of use
Patent 5-10 years Expected benefit period
The land ownership of Fosber S.p.A. ("Fosber Group"), a subsidiary of the Company, in Italy has a permanent
term, and the Company believes that the land ownership will be used and will bring expected inflows of
economic benefits to the Company in the foreseeable future, so its useful life is regarded as indefinite. The
trademarks registered by subsidiaries Fosber Group and Fosber America, Inc. ("Fosber America") have a
useful life in accordance with the law, but at the expiration of the protection period, Fosber Group and Fosber
America can apply for an extension at low service charges, so the Company will benefit from the above
trademarks in the long term. Thus, the Company recognized the trademark use right as intangible assets with
indefinite useful life. The useful life of intangible assets with indefinite useful life will be reviewed at the end
of each year. After review, the useful life of the above intangible assets is still uncertain.
The Group classifies the expenses for internal research and development as research costs and development
costs. All research costs are charged to the current profit or loss as incurred. Expenditure incurred on projects
to develop new products is capitalized and deferred only when the Group can demonstrate the technical
feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete
and its ability to use or sell the asset, how the asset will generate future economic benefits (including
demonstration that the product derived from the intangible asset or the intangible asset itself will be marketable
or, in the case of internal use, the usefulness of the intangible asset as such), the availability of technical and
financial resources to complete the project and procure the use or sale of the intangible asset, and the ability to
measure reliably the expenditure during the development. Development costs which do not meet these criteria
is recognized in profit or loss when incurred.
After meeting the above conditions, passing the technical feasibility and economic feasibility study, the
corresponding projects of the Group enter the development stage and begin to be capitalized after being
reviewed and approved.
Page 130 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
16. Impairment
The Group assesses impairment of assets other than inventories, contract assets and assets related to contract costs,
deferred tax assets and financial assets, using the methods described below:
Impairment of assets (other than the impairment of inventories, contract assets and contract cost assets, investment
properties measured using the fair value model, deferred tax assets, and financial assets ) is determined in the
following way: the Group assesses at the balance sheet date whether there is any indication that an asset may be
impaired; if any indication exists that an asset may be impaired, the Group estimates the recoverable amount of the
asset and performs impairment testing; goodwill arising from a business combination, intangible assets with
indefinite useful lives and intangible assets not yet available for use are tested for impairment at least at each year
end, irrespective of whether there is any indication that the asset may be impaired.
The recoverable amount is the higher of the asset’s fair value less costs to sell and its present value of estimated
future cash flows. The Group estimates recoverable value for individual assets. When it is difficult to estimate
individually, the recoverable value of the cash generating units which the asset belongs to will be estimated. The
definition of cash generating units is determined on the basis of whether the cash generating units generate cash
flows which are largely independent of those from other cash generating units.
Where the carrying amount of an asset or a cash generating unit exceeds its recoverable amount, the asset or cash
generating unit is considered impaired and is written down to its recoverable amount. The difference between the
carrying amount and recoverable amount is recognized in profit or loss and allowance for impairment is made
accordingly.
In connection with impairment tests for goodwill, the carrying value of goodwill arising from business combination
is allocated to relevant cash generating units (“CGU”) from the date of acquisition on a reasonable basis. If it is
difficult to allocate such goodwill to a relevant CGU, it should be allocated to a relevant CGU group. A relevant
CGU or CGU group is defined as one which can benefit from the synergies of the business combination and is not
larger than the reporting segments determined by the Group.
In connection with impairment tests for CGUs or CGU groups that comprise goodwill, where indications of
impairment exists in a CGU or CGU group related to goodwill, impairment tests should be performed first on CGUs
or CGU groups that do not comprise goodwill and recognize impairment loss after estimating the recoverable
amount. Then impairment tests on CGUs or CGU groups that comprise goodwill should be performed and the
carrying value and recoverable amount should be compared. Where the recoverable amount is lower than the
carrying value, the impairment loss should first be offset against the carrying value of the goodwill allocated to
CGUs or CGU groups and then against assets in the CGUs or CGU groups other than goodwill in proportion to the
weighting of these assets.
Previously recognized impairment losses are not reversed in subsequent periods.
Page 131 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
17. Long-term prepaid expenses
Long-term prepaid expenses are amortized using the straight-line method, with the amortization periods as follows:
Amortization period
Decoration expenditures 3-5 years
Amortization of moulds 3 years
Other expenditures 3-5 years
18. Employee benefits
Employee benefits include all kinds of rewards or compensation incurred by the Group in exchange for service
rendered by employees or in the termination of employment, other than share-based payment. Employee benefits
include short-term benefits, retirement benefits, dismission benefits and other long-term employees’ benefits.
Benefits provided by the Group to the spouses, children and dependents of employees and families of deceased
employees are also a part of employee benefits.
Short-term benefits
For accounting periods during which services are rendered by employees, short-term benefits that will incur is
recognized as liability and included in profit and loss or related capital costs.
Retirement benefits (defined contribution schemes)
Employees of the Group participated in pension insurance and unemployment insurance schemes managed by the
local government. The contribution costs are charged as asset cost or to profit or loss when incurred.
Retirement benefits (defined benefit schemes)
The Group operates a defined benefit pension scheme, which requires payments to an independently operated fund.
No funds have been injected into the scheme. The cost of benefits provided under the defined benefit scheme is
calculated using the expected benefit accrual unit approach.
Remeasurement arising from defined benefit pension schemes, including actuarial gains or losses, changes in the
asset cap effect (deducting amounts included in net interest on net liabilities of the defined benefit schemes) and
return on scheme assets (deducting amounts included in net interest on net liabilities of the defined benefit schemes)
are instantly recognized in the balance sheet and charged to equity through other comprehensive income for the
period during which it is incurred. It will not be reversed to profit and loss in subsequent periods.
Previous service costs are recognized as current expenses when: the defined benefit scheme is revised, or relevant
restructuring costs or dismission benefits are recognized by the Group, whichever earlier.
Page 132 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
18. Employee benefits (cont’d)
Retirement benefits (defined benefit schemes) (cont’d)
Net interest is arrived at by multiplying net liabilities or net assets of defined benefits with a discount rate. Changes
in net obligations of defined benefits are recognized as cost of sales, administrative expenses, R&D expenses, selling
expenses and finance costs in the income statement. Service costs included current services costs, past service costs
and settlement of profit or loss. Net interest included interest income from scheme assets, interest expenses for
scheme obligations and interest of the asset cap effect.
19. Provisions
Other than contingent consideration and assumed contingent liabilities in a business combination not involving
entities under common control, the Group recognizes as provision an obligation that is related to contingent matters
when all of the following criteria are fulfilled:
(1) the obligation is a present obligation of the Group;
(2) the obligation would probably result in an outflow of economic benefits from the Group;
(3) the obligation could be reliably measured.
Provisions are initially measured according to the best estimate of expenses on fulfilling the current liabilities, in
connection with the risk, uncertainty and timing value of the currency. The carrying value of the provisions would
be reassessed on every balance sheet date. The carrying value will be adjusted to the best estimated value if there is
certain evidence that the current carrying value is not the best estimate.
The contingent liabilities obtained from a business combination not involving entities under common control shall
be measured at fair value at the time of initial recognition. After the initial recognition, according to the amount
confirmed by provisions and the balance of the initial recognition amount after deducting the accumulated
amortization determined by the revenue recognition principle, the higher of the two shall prevail for subsequent
measurements.
20. Share-based payments
Share-based payments can be distinguished into equity-settled share-based payments and cash-settled share-based
payments. Equity-settled share-based payments are transactions of the Group settled through the payment of shares
or other equity instruments in consideration for receiving services.
Equity-settled share-based payments made in exchange for services rendered by employees are measured at the fair
value of equity instruments granted to employees. Instruments which are vested immediately upon the grant are
charged to relevant costs or expenses at the fair value on the date of grant and the capital surplus are credited
accordingly. Instruments of which vesting is conditional upon completion of services or fulfillment of performance
conditions are measured by recognising services rendered during the period in relevant costs or expenses and
crediting the capital surplus accordingly at the fair value on the date of grant according to the best estimates of the
number of exercisable equity instruments conducted by the Group at each balance sheet date during the pending
period. The fair value of equity instruments is determined using the closing price of the Company’s stock on the
date of grant.
Page 133 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
21. Revenue generating from contracts with customers
The Group recognizes its revenue upon the fulfilment of contractual performance obligations under a contract,
namely, when the customer obtains control over the relevant products or services. The acquisition control over
relevant products or services shall mean the ability to direct the use of the products or the provision of the services
and receive substantially all economic benefits derived therefrom.
Contract for the sales of products
The product sales contract between the Group and its customers typically includes different contractual performance
obligations for the transfer of products and the rendering of services. With respect to the sales of products, the Group
typically recognizes its revenue at the time when the customer takes control over the products, taking into account
the following factors: the acquisition of the current right to receive payments for the products, the transfer of major
risks and rewards of ownership, the transfer of the legal title of the products, the transfer of the physical assets of
the products, and customers’ acceptance of the products.
Contract for the rendering of installation services
The service contract between the Group and its customers includes contractual performance obligations for
installation services. As the customer is able to forthwith obtain and consume the economic benefits brought by the
Group’s contractual performance when the Group performs a contract, the Group considers such contractual
performance obligations to be obligations performed over a period of time, and revenue shall be recognized on each
balance sheet date according to the progress of installation.
Significant financing component
Where a contract contains a significant financing component, the Group determines transaction prices based on
amounts payable assumed to be settled in cash by customers immediately upon the acquisition of control over the
products or services. The difference between such transaction price and contract consideration is amortized over the
contract period using the effective interest method based on a ratio that discounts the nominal contractual
consideration to the current selling price of the products or services. The Group shall not give consideration to any
significant financing component in a contract if the gap between the customer’s acquisition of control over the
products or services and payment of consideration is expected to be less than 1 year.
Warranty clauses
The Group provides quality assurance for products sold in accordance with contract terms and laws and regulations.
The accounting treatment of quality assurance in the form of warranty assuring customers products sold are in
compliance with required standards is set out in Note III.20. Where the Group provides a service warranty for a
standalone service in addition to the assurance of compliance of products with required standards, such warranty is
treated as a standalone contractual performance obligation, and a portion of the transaction price shall be allocated
to the service warranty based on a percentage of the standalone price for the provision of product and service
warranty. When assessing whether a warranty is rendering a standalone service in addition to providing guarantee
to customers that all sold goods are in compliance with required standards, the Group will consider whether or not
such warranty is a statutory requirement, the term of the warranty and the nature of the Group’s undertaking to
perform its obligations.
Page 134 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
22. Contract assets and contract liabilities
The Group presents contract assets or contract liabilities on the balance sheet according to the relationship between
contractual performance obligations and customer payments.
Contract assets
Contract assets are the right to receive consideration following the transfer of products or services to customers
which is dependent on factors other than the passage of time.
For details of the Group’s determination and accounting treatment of expected credit losses from contract assets,
please refer to Note III.8.
Contract liabilities
Contract liabilities are the obligation to pass products or services to customers in connection with customer
consideration received or receivable, for example, amounts received prior to the transfer of the promised products
or services.
23. Assets relating to contract cost
The Group’s assets relating to contract costs include the contract acquisition costs and contract performance costs.
The costs are presented in inventory, other current assets or other non-current assets based on liquidity of the assets.
Where the Group expects the incremental costs for acquiring a contract to be recoverable, such contract acquisition
costs are recognized as an asset (unless the amortisation period of the asset is not more than 1 year).
Costs incurred by the Group for the performance of a contract are recognized as an asset as contract performance
costs if they do not fall under the scope of the relevant standards for inventories, fixed assets or intangible assets
but meet all the following conditions:
(1) they are directly related to a current or anticipated contract, including direct labour, direct materials,
manufacturing expenses (or similar expenses), to be borne by customers as specifically stipulated, and
otherwise incurred solely in connection with the contract;
(2) they will increase the resources to be utilized in the Company’s future performance of its contractual
obligations;
(3) they are expected to be recoverable.
24. Government grants
Government grants are recognized when there is reasonable assurance that the grant will be received and all
attaching conditions will be complied with. The grant is measured as the amount received or receivable where it
takes the form of a cash asset, or at fair value where it is not a cash asset. Where the fair value cannot be reliably
obtained, it should be measured at the nominal value.
In accordance with the stipulations of the government instruments, government grants applied towards acquisition
or the formation of long-term assets in other manners are asset-related government grants; the instruments
unspecifically refer to the exercise of judgement based on the basic conditions for receiving the asset-related grant
applied towards or the formation of long-term assets in other manners. All other grants are recognized as income-
related government grants.
Page 135 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
24. Government grants (cont’d)
Government grants relating to income and applied to make up for related costs or losses in future periods shall be
recognized as deferred income, and shall be recognized in profit or loss of the period for which related costs or loss
are recognized. Government grants specifically applied for the reimbursement of incurred related costs and expenses
shall be directly recognized in profit or loss.
Government grants relating to assets shall offset the carrying amount of related assets, or be recognized as deferred
income and credited to profit or loss over the useful life of the asset concerned by reasonable and systematic
instalments (provided that government grants measured at nominal value shall be directly recognized in profit or
loss). Where the asset concerned is disposed of, transferred, retired or damaged prior to the end of its useful life, the
balance of the deferred income yet to be allocated shall be transferred to “asset disposal” under current profit or
loss.
25. Deferred tax assets
The Group recognizes deferred tax assets and liabilities based on temporary differences using the balance sheet
liability method. Temporary differences are differences between the carrying amount of assets or liabilities in the
balance sheet and their tax base on the balance sheet date. Temporary differences also include the differences
between the carrying values and tax bases of items not recognized as assets or liabilities where the tax base can be
calculated according to the relevant tax regulations.
Deferred tax liabilities are recognized for all taxable temporary differences, except:
(1) where the taxable temporary difference arises from goodwill or the initial recognition of an asset or liability
in a transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss;
(2) in respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled
and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets are recognized for all deductible temporary differences, carryforward of unused tax credits and
unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carryforward of unused tax credits and unused tax losses can be utilized except:
(1) where the deductible temporary difference arises from transaction that is not a business combination and, at
the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
(2) deductible temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures are recognized when all following conditions are met: it is probable that the temporary differences
will reverse in the foreseeable future, it is probable that taxable profit against the deductible temporary
differences will be available.
Page 136 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
25. Deferred tax assets (cont’d)
As at balance sheet date, deferred tax assets and liabilities are measured in accordance with relevant tax laws at the
tax rates that are expected to apply to the period when the asset is realized or the liability is settled, and reflects the
tax consequences that would follow the manner in which the Group expects, at the balance sheet date, to recover
the assets or settle the carrying amount of its assets and liabilities.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax
asset to be utilized. Unrecognized deferred tax assets are reassessed at the end of each reporting period and are
recognized to the extent that it has become probable that sufficient taxable profit will be available to allow all or
part of the deferred tax asset to be recovered.
Deferred tax assets and liabilities are offset and presented as a net amount if all of the following conditions are met:
the Group has the legal right to set off the current income tax assets and liabilities and the deferred tax assets and
liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different
taxable entities, provided that the taxable entity concerned intends either to settle current income tax liabilities and
assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which
significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
26. Leases
At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains,
a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration.
As lessee
The Group recognizes leases as the right-of-use asset and lease liabilities, except for short-term leases and leases of
low-value assets.
Right-of-use assets
At the commencement date of the lease, the Group recognizes a right-of-use asset. The cost of the right-of-use
asset comprises: (1) the amount of the initial measurement of the lease liability; (2) any lease payments made
at or before the commencement date less any lease incentives received; (3) any initial direct cost incurred; (4)
an estimate of costs incurred by the lessee in dismantling and removing the underlying asset, restoring the site
on which it is located or restoring the underlying asset to the condition required by the terms and conditions
of the lease. The right-of-use assets are depreciated on a straight-line basis subsequently by the Group. If
ownership of the leased asset transfers to the Group at the end of the lease term, depreciation is calculated
using the estimated useful life of the asset. Otherwise, the right-of-use assets are depreciated over the shorter
of the lease term and the estimated useful lives of the assets.
Page 137 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
26. Leases (cont’d)
Lease liabilities
At the commencement date, the Group measures the lease liability at the present value of the lease payments that
are not paid at that date, except for short-term leases and low-value asset leases. Lease payments include constant
payments and the substantial constant payments net of lease incentives, variable lease payments that depend on an
index or ratio, the estimated payables of guaranteed residual value, and also include the exercise price of the
purchase option or the amount to be paid upon vest of the termination option, provided that the Group is reasonably
certain that the option will be vested or that the lease term reflects that the Group will exercise the termination
option.
In calculating the present value of the lease payments, the Group uses the interest rate implicit in the lease as the
discount rate. If that rate cannot be readily determined, the Group uses the lessee’s incremental borrowing rate. The
Group calculates the interest expenses of the lease liability in each period during the lease term using the constant
periodic rate of interest, and recognizes such interest expenses in profit or loss, except those that in the related asset
costs as required. Variable lease payments that are not included in the measurement of the lease assets are recognized
in profit or loss as incurred, except those that shall be included in the related asset costs as required.
After the commencement date, the Group increases the book value of the lease liability when interest is recognized
and decreases the book value of the lease liability when lease payments are made. In the event of any change to the
substantial constant payments, the estimated payables of guaranteed residual value, the index or ratio used to
determine lease payments, the assessment results or actual vesting of the purchase option, the renewal option or the
termination option, the Group remeasures the lease liability at the present value of the modified lease payments.
Short-term leases and leases of low-value assets
A short-term lease is a lease that, at the commencement date, has a lease term of 12 months or less, and does not
contains any purchase option. The Group does not recognize the right-of-use assets and lease liabilities for buildings
short-term leases. The Group recognizes lease payments on short-term leases and leases of low-value assets in the
related asset costs or profit or loss on a straight-line basis over the lease term.
As a lessor
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership
of an underlying asset, except that a lease is classified as an operating lease at the inception date.
As a lessor of operating leases
Rental income of operating leases is recognized in current profit or loss over the respective periods during the lease
term on a straight-line basis, while variable lease payment not included in lease receipts is charged to profit or loss
as and when incurred.
Initial direct costs are capitalised and recognised over the lease term on the same basis as rental income, through
profit or loss.
Page 138 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
27. Share repurchase
The consideration and transaction costs paid to repurchase equity instruments are charged against owner’s equity.
Except for share-based payments, the issue (including refinancing), repurchase, disposal or retirement of the
Company’s own equity instruments are accounted for as changes in equity.
28. Expenses for safety production
The expenses for safety production set side as stipulated shall be included in the cost of relevant products or current
profits and losses, and included in the special reserve at the same time. When such expenses are used, accounting
treatment will be performed according to whether fixed assets are formed. If identified as expense expenditures, the
special reserve will be written down directly; if fixed assets are formed, the expenses incurred will be collected,
fixed assets will be recognized when they reach a predetermined usable state, and the equivalent amount of special
reserve will be written down and the equivalent accumulated depreciation will be recognized.
29. Put option related to non-controlling interests
In the process of acquiring majority equity of subsidiaries, the Group grants to minority shareholders the option to
sell the shares of subsidiaries held by them to the Group (put option). The Group recognizes the shares of
subsidiaries held by minority shareholders as non-controlling interests in its consolidated financial statements; for
the put option, the Group undertakes the obligation to redeem the shares of the subsidiaries held by minority
shareholders in cash. The Group removes the present value of the amount payable to redeem the put option from its
equity (excluding non-controlling interests) and classifies it as financial liability, which is remeasured in subsequent
periods at the present value of the the amount payable to redeem the put option and recognized in profit or loss.
30. Fair value measurement
At each balance sheet date, the Group measures the fair value of derivative financial instruments and equity
instrument investments. Fair value means the price receivable from the disposal of an asset or required to be paid
for the transfer of a liability in an orderly transaction incurred by market participants on the measurement date.
The fair value hierarchy to which an asset or liability measured or disclosed in the financial statements at fair value
will be determined on the basis of the lowest level of input which is significant for the fair value measurement as a
whole. Input at the first level represents unadjusted quoted prices in an active market for the acquisition of the same
asset or liability on the measurement date. Input at the second level represents directly or indirectly observable
assets or liabilities apart from input at the first level. Input at the third level represents unobservable input for the
asset or liability.
At each balance sheet date, the Group reassesses assets and liabilities measured at fair value on an ongoing basis
recognized in the financial statements to determine whether the level of fair value measurement should be changed.
Page 139 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
31. Significant accounting judgements and estimates
The preparation of financial statements requires judgement and estimation of the management. Such judgement and
estimation will affect the reported amounts of revenue, expenses, assets and liabilities and the disclosure of
contingent liabilities as at the balance sheet date. However, the consequence arising from the uncertain nature of
such estimation may result in significant adjustment to the carrying value of the asset or liability affected in the
future.
Judgement
In the process of applying the Group’s accounting policies, management has made the following judgements, which
have the most significant effect on the amounts recognized in the financial statements:
Determination of standalone contractual performance obligations
The intelligent packaging equipment (printers and corrugators) business of the Group includes four kinds of product
or service commitments, i.e. the sale, installation, transportation and insurance services of machinery. As the
customer can benefit from the individual use of the four kinds of products or services or their use together with
other readily available resources and such product or service commitments are distinctly separable from other
products or service commitments, the aforesaid product or service commitments constitute standalone contractual
performance obligations respectively.
Business model
The classification of financial assets at initial recognition is dependent on the Group’s business model for managing
the assets. Factors considered by the Group in judging the business model include enterprise valuation, the method
of reporting the results of financial assets to key management members, risks affecting the results of financial assets
and the method for managing such risks, as well as the form of remuneration received by the management personnel
of the businesses concerned. In assessing whether the business model is aimed at receiving contract cash flow, the
Group is required to analyse and exercise judgment in respect of the reasons, timing, frequency and values of any
disposals prior to maturity.
Characteristics of contract cash flow
The classification of financial assets at initial recognition is dependent on the characteristics of the contract cash
flow of such type of financial assets. Judgement is required to determine whether the contract cash flow represents
interest payment in relation to principal amounts based on outstanding principal amounts only, including judgement
of whether it is significantly different from the benchmark cash flow when assessing modifications to the time value
of currencies, and judgement of whether the fair value of early repayment features is minimal where the financial
assets include such early repayment features.
Estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within subsequent financial years, are discussed below.
Page 140 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
31. Significant accounting judgements and estimates (cont’d)
Estimation uncertainty (cont’d)
Impairment of financial instruments and contract assets
The Group has adopted the expected credit loss model to evaluate the impairment of financial instruments and
contract assets. The application of the expected credit loss model requires significant judgement and estimates and
the consideration of all reasonable and soundly based information, including forward-looking information. In
making such judgement and estimates, the Group estimates the projected movements of the debtor’s credit risk
according to past repayment records, economic policies, macro-economic indicators and industry risks. Different
estimates may affect impairment allowances, and established impairment allowances may not equal the actual
impairment loss amount in the future.
Impairment of non-current assets other than financial assets (exclusive of goodwill)
The Group assesses at each balance sheet date whether there is an indication that a non-current asset other than
financial assets may be impaired. For an intangible asset with an indefinite useful life, in addition to the annual
impairment test, it is also tested when there is an indication that it may be impaired. Non-current assets other than
financial assets are tested for impairment when there is an indication that the carrying amount is irrecoverable.
Where the carrying amount of an asset or an asset group exceeds its recoverable amount—the higher of the asset or
asset group’s fair value less costs to sell and its present value of estimated future cash flows, it is considered
impaired. The net amount of the fair value less costs to sell is determined based on the price of a similar asset’s
sales contract in a fair transaction or the observable market price less the incremental cost directly attributable to
the disposal of the asset. When estimating the present value of future cash flows, the management must choose a
proper discount rate.
Impairment of goodwill
Goodwill must be tested for impairment at least annually. It requires estimating the present value of future cash
flows of an asset group or asset group portfolio allocated with goodwill. When estimating the present value of future
cash flows, the Group needs to estimate future cash flows generating from the asset group or asset group portfolio,
and at the same time choose a proper discount rate to determine the present value of future cash flows. For details,
see Note V.20.
Fair value of unlisted equity investments
The unlisted equity investments have been valued based on the expected cash flows discounted at current rates
applicable for items with similar terms and risk characteristics. This valuation requires the Group to make
estimates about expected future cash flows, credit risk, volatility and discount rates, and hence they are subject to
uncertainty.
Deferred tax assets
Deferred tax assets are recognized for all unused tax losses, to the extent that it is likely that taxable profit will be
available to utilize these unused tax losses. Significant judgments are needed from management to estimate the
timing and amount of taxable profit in the future, with tax planning strategies, to determine the amount of the
deferred tax assets that should be recognized.
Page 141 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
V.Principal Accounting Policies and Accounting Estimates (Cont’d)
31. Significant accounting judgements and estimates (cont’d)
Estimation uncertainty (cont’d)
Lessee’s incremental borrowing rate
If the interest rate implicit in the lease cannot be readily determined, the Group measures the lease liability at the
present value of the lease payments that are not paid at that date. The Group discounted the lease payments using
the lessee’s incremental borrowing rate. The Group determines the incremental borrowing rate based on the
economic environment by reference to the observable interest rate. Then the Group adjusts the reference interest
rate based on its own circumstances, underlying assets, lease terms and amounts of lease liabilities to determine the
applicable incremental borrowing rate.
Provisions
The Group estimates and makes corresponding provision for product quality guaranty according to contract terms,
existing knowledge and past experience. When such contingencies have formed a present obligation and it is
probable that an outflow of economic benefits from the Group will be required to settle the obligation, the Group
recognizes the contingencies as provisions based on the best estimate of the expenditure required to settle the related
present obligation. The recognition and measurement of provisions largely depend on the judgment of management.
In the process of making judgment, the Group is required to assess the risks, uncertainties, time value of money and
other factors related to such contingencies.
The Group will undertake the provisions for post-sale quality maintenance provided to customers for the sale,
maintenance and renovation of the sold goods. The provisions have been made taking into account the Group’s
recent data of maintenance experience, and taking into account the risks, uncertainties and other factors related to
maintenance matters. Any increase or decrease in this provision may affect the profit and loss in future years.
Page 142 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
VI. Taxation
1. Principal tax items and tax rates
Tax basis Tax rate
Value-added tax The output tax: taxable income; 13% and 6%
(VAT) VAT: difference after deducting the input tax which is
allowed to be deducted in the current period
City maintenance Turnover tax actually paid 7%
and construction
tax
Education Turnover tax actually paid 3%
surcharge
Local education Turnover tax actually paid 2%
Surcharge
Property tax Ad valorem tax: remaining value after deducting 30% 1.2% and 12%
from the original value of the property;
Tax levied from rent: rental income.
Corporate income Taxable income 15%-28%
tax
The taxpaying entities subject to different corporate income tax rates are as follows:
Income tax rate
Guangdong Dongfang Precision Science & Technology Co., Ltd. 15.0%
Suzhou Parsun Power Machine Co., Ltd. ("Parsun Power") 15.0%
Guangdong Fosber Intelligent Equipment Co., Ltd. ("Fosber Asia") 15.0%
Shenzhen Wonder Printing System Co.,Ltd. ("Wonder Printing") 15.0%
Dong Fang Precision (HK) Limited (“Dongfang Precision (HK)”) 16.5%
Dong Fang Precision (Netherland) Cooperatief U.A.(“Dongfang Precision 20.0%
(Netherland)”)
Fosber S.p.A. 24.0%
Fosber America, Inc.(“Fosber America”) 21.0%
EDF Europe s.r.l.(“EDF”) 24.0%
Tirua America inc. (“Tirua America”) 21.0%
Quantum Corrugated S.r.l.(“QCorr”) 24.0%
Tirua S.L.U. 28.0%
Tirua France SARL 15.0%
SCI Candan 15.0%
Page 143 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
VI. Taxation (Cont’d)
2. Tax concessions
On 28 December 2023, the Company passed the high-tech enterprise review by the Department of Science and
Technology of Guangdong Province, Department of Finance of Guangdong Province, Guangdong Provincial Tax
Service of State Taxation Administration and Guangdong Provincial Local Taxation Bureau and obtained a High-
tech Enterprise Certificate (certificate no.: GR202344004676) jointly issued by the above authorities, with a validity
of three years, during which the Company paid the corporate income tax at a reduced rate of 15%, so the preferential
tax rate of 15% was applicable to the Company's corporate income tax as at 30 June 2024.
Suzhou Parsun Power Machine Co., Ltd., a subsidiary of the Company, passed the high-tech enterprise review by
the Department of Science and Technology of Jiangsu Province, Department of Finance of Jiangsu Province and
Jiangsu Provincial Tax Service of State Taxation Administration on 18 November 2022 and obtained a High-tech
Enterprise Certificate (certificate no.: GR201932000339) jointly issued by the above authorities, with a validity of
three years, during which the subsidiary paid the corporate income tax at a reduced rate of 15%, so the preferential
tax rate of 15% was applicable to the corporate income tax of Parsun Power as at30 June 2024.
Guangdong Fosber Intelligent Equipment Co., Ltd., a subsidiary of the Company, passed the high-tech enterprise
review by the Department of Science and Technology of Guangdong Province, Department of Finance of
Guangdong Province and Guangdong Provincial Tax Service of State Taxation Administration on 20 December
2021 and obtained a High-tech Enterprise Certificate (certificate no.: GR202144003984) jointly issued by the above
authorities, with a validity of three years, during which the subsidiary paid the corporate income tax at a reduced
rate of 15%, so the preferential tax rate of 15% was applicable to the corporate income tax of Fosber Asia as at 30
June 2024.
Shenzhen Wonder Printing System Co.,Ltd., a subsidiary of the Company, passed the high-tech enterprise review
by the Department of Science and Technology of Guangdong Province, Department of Finance of Guangdong
Province and Guangdong Provincial Tax Service of State Taxation Administration on 19 December 2022 and
obtained a High-tech Enterprise Certificate (certificate no.: GR202244206125) jointly issued by the above
authorities, with a validity of three years, during which the subsidiary paid the corporate income tax at a reduced
rate of 15%, so the preferential tax rate of 15% was applicable to the corporate income tax of Wonder Printing as at
30 June 2024.
Page 144 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
VII Notes to the Consolidated Financial Statements
1. Cash and bank balances
Unit: RMB yuan
Item Closing balance Opening balance
Cash on hand 2,431,022.70 438,600.93
Cash at banks 1,410,181,236.34 1,491,798,403.81
Other cash balances 145,353,057.47 334,182,899.75
Total 1,557,965,316.51 1,826,419,904.49
Of which: Total amount overseas 632,748,225.36 889,925,365.66
Other information:
The fund deposited abroad with restrictions on repatriation was equivalent to RMB16,652,093.09 (31 December 2023:
RMB9,020,813.02). Current bank deposits earn interest income based on interest rates for current deposits.
2. Financial assets held for trading
Unit: RMB yuan
2024 2023
Financial assets at fair value through
profit or loss 607,015,754.09 682,625,442.45
Asset management plans
including
Asset management plans 305,683,606.89 312,284,352.19
Investments in bank’s wealth
101,197,574.41 133,662,614.39
management products
Stocks and Funds 168,943,413.72 205,349,301.18
Derivative financial assets 11,015,811.87 31,329,174.69
Investments in trust products 20,175,347.20
Total 607,015,754.09 682,625,442.45
3. Notes receivable
(1) Notes receivable by type
Unit: RMB yuan
Item Closing balance Opening balance
Bank acceptance notes 31,123,201.76 47,661,412.88
Total 31,123,201.76 47,661,412.88
4. Accounts receivable
(1) Disclosure by the aging of accounts receivable
Unit: RMB yuan
2024 2023
Within 1 year (inclusive) 775,404,216.37 797,174,742.31
Page 145 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
1-2 years 70,958,640.66 97,122,608.26
2-3 years 13,588,419.17 30,354,347.33
Over 3 years 16,997,762.74 17,056,828.32
3-4 years 4,376,924.91 3,905,106.39
4-5 years 3,425,500.10 4,320,546.03
Over 5 years 9,195,337.73 8,831,175.90
Total 876,949,038.94 941,708,526.22
(2) Disclosure classified by the allowance provision method of accounts receivable
Unit: RMB yuan
Closing balance Opening balance
Gross amount Allowance Gross amount Allowance
Type Allow Carrying Allow Carrying
Perce ance amount Perce ance amount
Amount Amount Amount Amount
ntage percen ntage percen
tage tage
Account
s
receivab
le for
which
the 2,469,90 2,469,90 100.0 2,477,30 2,477,30 100.0
0.28% 0.26%
allowan 6.29 6.29 0% 3.19 3.19 0%
ces are
establish
ed
individu
ally
Of
which:
Account
s
receivab
le for
which
the 2,469,90 2,469,90 100.0 2,477,30 2,477,30 100.0
0.28% 0.26%
allowan 6.29 6.29 0% 3.19 3.19 0%
ces are
establish
ed
individu
ally
Account
s
receivab
le for
which 874,479, 99.72 31,702,5 842,776, 939,231, 99.74 35,227,2 904,003,
3.63% 3.75%
the 132.65 % 95.43 537.22 223.03 % 47.56 975.47
allowan
ces are
establish
ed by
Page 146 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
group
Of
which:
Account
s
receivab
le for
which
the
allowan
ces are 874,479, 99.72 31,702,5 842,776, 939,231, 99.74 35,227,2 904,003,
3.63% 3.75%
establish 132.65 % 95.43 537.22 223.03 % 47.56 975.47
ed by
group
with
similar
credit
risk
characte
ristics
876,949, 100.0 34,172,5 842,776, 941,708, 100.0 37,704,5 904,003,
Total 3.90% 4.00%
038.94 0% 01.72 537.22 526.22 0% 50.75 975.47
Accounts receivable for which the allowances are established individually:
Unit: RMB yuan
Opening balance Closing balance
Entity Reason for
Allowance Gross amount Allowance ECL
Gross amount allowance
Customer’s
inability to
Customer 1 939,000.00 939,000.00 936,506.29 936,506.29 100.00%
settle the
amount due
Customer’s
inability to
Customer 2 641,600.00 641,600.00 641,600.00 641,600.00 100.00%
settle the
amount due
Customer’s
inability to
Customer 3 608,800.00 608,800.00 608,800.00 608,800.00 100.00%
settle the
amount due
Customer’s
inability to
Customer 4 283,000.00 283,000.00 283,000.00 283,000.00 100.00%
settle the
amount due
Customer’s
inability to
Customer 5 4,903.19 4,903.19
settle the
amount due
Total 2,477,303.19 2,477,303.19 2,469,906.29 2,469,906.29
Accounts receivable for which the allowances are established by group with similar credit risk characteristics are as follows:
Unit: RMB yuan
Closing balance
Item
Gross amount Allowance ECL
Within 1 year 775,404,216.37 12,184,723.10 1.57%
Page 147 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
1-2 years 70,958,640.66 4,626,196.03 6.52%
2-3 years 13,588,419.17 3,712,417.63 27.32%
3-4 years 4,376,924.91 2,159,036.61 49.33%
4-5 years 3,425,500.10 2,294,790.62 66.99%
Over 5 years 6,725,431.44 6,725,431.44 100.00%
Total 874,479,132.65 31,702,595.43
（3） Allowances established orreversed in the current period
Allowances in the current period:
Unit: RMB yuan
Opening Change in the current period
Type Closing balance
balance Established Reversed Written off Others
Allowances
for doubtful
37,704,550.75 746,267.19 2,279,718.21 -506,063.63 34,172,501.72
accounts
receivable
Total 37,704,550.75 746,267.19 2,279,718.21 -506,063.63 34,172,501.72
（4） Actual accounts receivable written off in the current period
Unit: RMB yuan
Type Amount
Accounts receivable actually written off 2,279,718.21
（5） Top five entities with respect to accounts receivable
Unit: RMB yuan
Total closing
balance of
Total closing As a % of the provision for
Closing balance of balance of closing balance of allowances of
Closing balance of
Entity accounts accounts total accounts accounts
contract assets
receivable receivable and receivable and receivable and
contract assets contract asset provision for
impairment of
contract asset
Customer 6 96,444,762.73 96,444,762.73 10.38% 759,914.75
Customer 7 62,749,549.78 62,749,549.78 6.76% 2,098,380.44
Customer 8 39,891,214.15 39,891,214.15 4.29% 1,994,560.71
Customer 9 33,708,057.58 33,708,057.58 3.63% 207,263.14
Customer 10 29,365,514.36 29,365,514.36 3.16% 293,655.14
Total 262,159,098.60 262,159,098.60 28.22% 5,353,774.18
5、Contract assets
（1） Contract assets
Unit: RMB yuan
Type Closing balance Opening balance
Page 148 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Carrying Carrying
Gross amount Allowance Gross amount Allowance
amount amount
Contract assets 51,880,460.04 5,464,443.37 46,416,016.67 47,751,792.27 1,805,415.13 45,946,377.14
Total 51,880,460.04 5,464,443.37 46,416,016.67 47,751,792.27 1,805,415.13 45,946,377.14
（2） Disclosure classified by the allowance provision method
Unit: RMB yuan
Closing balance Opening balance
Gross amount Allowance Carryin Gross amount Allowance Carryin
Type
Percenta Percenta g Percenta Percenta g
Amount Amount amount Amount Amount amount
ge ge ge ge
Of which:
Provisio
n for
51,880,4 5,464,44 46,416,0 47,751,7 1,805,41 45,946,3
allowanc 100.00% 10.53% 100.00% 3.78%
60.04 3.37 16.67 92.27 5.13 77.14
es by
group
Of which:
Contract
assets
for
which
allowanc
es are
establish
51,880,4 5,464,44 46,416,0 47,751,7 1,805,41 45,946,3
ed by 100.00% 10.53% 100.00% 3.78%
60.04 3.37 16.67 92.27 5.13 77.14
group
with
similar
credit
risk
characte
ristics
51,880,4 5,464,44 46,416,0 47,751,7 1,805,41 45,946,3
Total 100.00% 10.53% 100.00% 3.78%
60.04 3.37 16.67 92.27 5.13 77.14
Accounts receivable for which the allowances are established by group:
Unit: RMB yuan
Closing balance
Type
Gross amount Allowance Percentage
Within 1 year 32,023,201.29 611,665.61 1.91%
1-2 years 12,918,455.01 1,263,137.44 9.78%
2-3 years 6,938,803.74 3,589,640.32 51.73%
Total 51,880,460.04 5,464,443.37
（3）Allowances established orreversed in the current period
Unit: RMB yuan
Type Established Reversed Written off 原因
Provision for
impairment of contract 3,772,053.30 113,659.97 -634.91
asset
Page 149 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Total 3,772,053.30 113,659.97 -634.91
6. Receivables financing
Unit: RMB yuan
Item Closing balance Opening balance
Notes receivable 22,923,994.65 9,365,344.07
Total 22,923,994.65 9,365,344.07
7. Other receivables
Unit: RMB yuan
Item Closing balance Opening balance
Other receivables 39,417,246.69 51,797,943.96
Total 39,417,246.69 51,797,943.96
(1) Other receivables
1) Disclosure by nature
Unit: RMB yuan
Nature Closing gross amount Opening gross amount
Prepaid service charges 14,460,923.20 19,593,768.86
Security deposits 12,015,002.88 7,956,393.69
Export tax refunds 814,611.40 2,952,066.14
Employee loans and petty cash 4,756,103.62 5,078,147.88
Others 8,815,107.40 17,553,973.50
Total 40,861,748.50 53,134,350.07
2)Disclosure by the aging
Unit: RMB yuan
Aging Closing gross amount Opening gross amount
Within 1 year 30,021,392.17 38,472,808.52
1-2 years 4,980,101.04 6,754,108.79
2-3 years 2,222,921.89 4,574,557.21
Over 3 years 3,637,333.40 3,332,875.55
3-4 years 2,064,138.92 2,082,428.89
4-5 years 462,013.19 138,543.93
Over 5 years 1,111,181.29 1,111,902.73
Total 40,861,748.50 53,134,350.07
3) Disclosure classified by the allowances provision methods
Unit: RMB yuan
Closing balance Opening balance
Type
Gross amount Allowance Carryin Gross amount Allowance Carryin
Page 150 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Percenta Percenta g Percenta Percenta g
Amount Amount amount Amount Amount amount
ge ge ge ge
Of which:
Provisio
n for
40,861,7 1,444,50 39,417,2 53,134,3 1,336,40 51,797,9
allowanc 100.00% 3.54% 2.52%
48.50 1.81 46.69 50.07 6.11 43.96
es by
group
Of which:
Portfolio
of credit
40,861,7 1,444,50 39,417,2 53,134,3 1,336,40 51,797,9
risk 100.00% 3.54% 2.52%
48.50 1.81 46.69 50.07 6.11 43.96
characte
ristics
40,861,7 1,444,50 39,417,2 53,134,3 1,336,40 51,797,9
Total 100.00% 3.54% 0.00% 2.52%
48.50 1.81 46.69 50.07 6.11 43.96
Unit: RMB yuan
Closing balance
Type
Gross amount Allowance Percentage
Ageing risk portfolio 40,861,748.50 1,444,501.81 3.54%
Total 40,861,748.50 1,444,501.81
Allowances：
Unit: RMB yuan
Stage 1 Stage 2 Stage 3
Allowances Lifetime expected Lifetime expected Total
12-month expected
credit loss (without credit loss (with credit
credit loss
credit impairment) impairment)
Balance as at 1 January
836,406.11 500,000.00 1,336,406.11
2024
Balance as at 1 January
2024 in the current
period
Reversed in the current
108,621.25 108,621.25
period
Other changes 525.55 525.55
Balance as at 30 June
944,501.81 500,000.00 1,444,501.81
2024
Balances with significant changes in loss allowances in the current period:
□ Applicable Not applicable
4) Allowances established or reversed in the current period
Allowances in the current period:
Unit: RMB yuan
Opening Change in the current period
Type Closing balance
balance Established Reversed Written off Others
Allowances for
1,336,406.11 108,621.25 525.55 1,444,501.81
doubtful other
Page 151 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
receivables
Total 1,336,406.11 108,621.25 525.55 1,444,501.81
5) Top five entities with respect to other receivables
Unit: RMB yuan
As a % of the Closing balance of
Nature of other closing balance of allowances for
Entity Closing balance Aging
receivable total other doubtful other
receivables receivables
Transactions with
Entity 1 2,908,663.45 Within 1 year 7.12%
third parties
Entity 2 Deposi 1,630,000.00 3-4years 3.99%
Prepayments
Entity 3 1,524,466.07 Within 1 year 3.73%
for service
Transactions with
Entity 4 1,432,865.93 1-2years 3.51%
third parties
Entity 5 Deposi 1,286,764.20 Within 1 year 3.15%
Total 8,782,759.65 21.49%
8. Prepayments
(1) Prepayments by aging
Closing balance Opening balance
Aging
Amount Percentage Amount Percentage
Within 1 year 37,389,755.50 90.56% 42,509,851.47 92.94%
1-2 years 2,093,339.54 5.07% 2,960,199.29 6.47%
2-3 years 1,562,544.07 3.78% 20,968.14 0.05%
Over 3 years 243,478.22 0.59% 250,125.00 0.55%
Total 41,289,117.33 45,741,143.90
(2) Top five entities with respect to prepayments
The closing balance of total prepayments to the top five entities amounted to RMB13,322,248.75, accounting for 32.27%
of the closing balance of the total prepayments.
9. Inventories
Is the Company subject to the disclosure requirements for the real estate industry?
No.
(1) Inventories by type
Unit: RMB yuan
Closing balance Opening balance
Item
Gross amount Inventory Carrying Gross amount Inventory Carrying
Page 152 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
valuation amount valuation amount
allowances or allowances or
impairment impairment
allowances for allowances for
contract contract
performance performance
costs costs
Raw materials 657,648,183.22 23,246,459.40 634,401,723.82 658,870,239.78 23,591,282.36 635,278,957.42
Work-in-
531,213,033.55 20,381,771.56 510,831,261.99 422,201,722.20 20,499,380.02 401,702,342.18
progress
Finished goods 73,511,649.10 2,428,096.73 71,083,552.37 75,950,836.96 3,475,752.29 72,475,084.67
Product
38,336,485.38 38,336,485.38 31,374,046.56 31,374,046.56
deliveries
Semi-finished
45,728,927.36 657,696.13 45,071,231.23 41,372,916.93 662,291.37 40,710,625.56
goods
Materials
consigned for 701,086.87 701,086.87 869,999.29 869,999.29
processing
1,347,139,365. 1,300,425,341. 1,230,639,761. 1,182,411,055.
Total 46,714,023.82 48,228,706.04
48 66 72 68
(2) Inventory valuation allowances and impairment allowances for contract performance costs
Unit: RMB yuan
Increase in the current period Decrease in the current period
Opening
Item Reversed or Closing balance
balance Established Others Others
written off
Raw materials 23,591,282.36 2,959,527.93 3,002,584.85 301,766.04 23,246,459.40
Work-in-
20,499,380.02 8,500.96 126,109.42 20,381,771.56
progress
Finished goods 3,475,752.29 1,047,655.56 2,428,096.73
Semi-finished
662,291.37 4,595.24 657,696.13
goods
Total 48,228,706.04 2,968,028.89 4,054,835.65 427,875.46 46,714,023.82
10. Current portion of non-current assets
Unit: RMB yuan
Item Closing balance Opening balance
Current portion of long-term receivables 7,456,750.00 5,970,000.00
Total 7,456,750.00 5,970,000.00
Substantial debt investments/other debt investments:
11. Other current assets
Unit: RMB yuan
Item Closing balance Opening balance
Input value-added tax (VAT) to be
1,412,773.37 19,118,882.69
deducted
Overpaid VAT 76,670,114.61 37,973,926.46
Page 153 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Tax repayments 4,633,256.13 5,248,796.24
Others 13,514,255.58 12,893,050.68
Total 96,230,399.69 75,234,656.07
12. Long-term receivables
(1) Particulars about long-term receivables
Unit: RMB yuan
Closing balance Opening balance Range of
Item Gross Impairment Carrying Gross Impairment Carrying discount
amount allowance amount amount allowance amount rates
Amounts
receivable by
installment 5,199,250.00 49,912.80 5,149,337.20 4,382,500.00 74,304.00 4,308,196.00
for selling
goods
Total 5,199,250.00 49,912.80 5,149,337.20 4,382,500.00 74,304.00 4,308,196.00
(2) Movements in allowances for doubtful long-term receivables are as follows:
Unit: RMB yuan
Opening Change in the current period
Type Closing balance
balance Established Reversed Written off Others
long-term
74,304.00 0.00 24,391.20 49,912.80
receivables
Total 74,304.00 0.00 24,391.20 0.00 0.00 49,912.80
13、Long-term equity investments
Unit: RMB yuan
Change in the current period
Closin
Return g
Decla
Opening on Adjustm Othe Closing balanc
red
Inve balance Additi Reduc investm ent to r Impair balance e of
cash
stee (carrying onal ed ent other equit ment Other (carrying impair
divid
amount) invest invest under compreh y allowa s amount) ment
ends
ment ment the ensive chan nce allowa
or
equity income ges nce
profit
method
1. Joint ventures
2. Associates
Jaten -
87,476,7 87,317,6
Rob 159,036
26.17 89.83
ot .34
Talle
-
res 1,759,90 1,715,68
44,21
Tapr 1.46 1.65
9.81
e
Nanj 28,029,2 - 25,274,1
Page 154 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
ing 57.21 2,755,0 70.89
Prof 86.32
eta
- -
Subt 117,265, 114,307,
2,914,1 44,21
otal 884.84 542.37
22.66 9.81
- -
117,265, 114,307,
Total 2,914,1 44,21
884.84 542.37
22.66 9.81
The recoverable amount is determined by the net amount after deducting the disposal expenses from the fair value.
□ Applicable Not applicable
The recoverable amount is determined by the present value of the expected future cash flows.
□ Applicable Not applicable
14. Other non-current financial assets
Unit: RMB yuan
Item Closing balance Opening balance
Financial assets at fair value through
528,076,492.06 461,278,259.67
profit or loss
Total 528,076,492.06 461,278,259.67
15. Fixed assets
Unit: RMB yuan
Item Closing balance Opening balance
Fixed assets 613,800,178.20 611,851,577.04
Disposal of fixed assets 4,276.33
Total 613,804,454.53 611,851,577.04
(1) Particulars about fixed assets
Unit: RMB yuan
Buildings and Transportation
Item Machinery Other equipment Total
constructions equipment
I. Gross amount
1. Opening
664,484,475.58 521,052,136.63 35,511,284.44 71,533,440.95 1,292,581,337.60
balance
2. Increase in
6,782,132.50 22,607,955.74 17,701.28 2,305,429.89 31,713,219.41
the current period
(1) Purchases 242,218.62 12,543,564.14 11,061.95 2,305,429.89 15,102,274.60
(2) Transfers
from construction 6,539,913.88 10,064,391.60 16,604,305.48
in progress
(3) Increase
in business
combination
(4) Effect of
exchange rate 6,639.33 6,639.33
movements
3. Decrease in 3,464,109.92 35,006,928.56 19,647.90 96,141.33 38,586,827.71
Page 155 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
the current period
(1) Disposal
27,396,196.61 19,647.90 74,778.63 27,490,623.14
or retirement
(2) Effect of
exchange rate 3,464,109.92 7,610,731.95 21,362.70 11,096,204.57
movements
4. Closing
667,802,498.16 508,653,163.81 35,509,337.82 73,742,729.51 1,285,707,729.30
balance
II. Accumulated
depreciation
1. Opening
221,075,804.37 394,132,969.99 19,130,759.80 46,390,226.40 680,729,760.56
balance
2. Increase in
8,556,580.50 9,518,623.18 2,055,250.37 4,269,444.27 24,399,898.32
the current period
(1) Provision 8,556,580.50 9,518,623.18 2,055,250.37 4,269,444.27 24,399,898.32
3. Decrease in
2,292,746.42 30,833,269.63 20,588.05 75,503.68 33,222,107.78
the current period
(1) Disposal
23,928,114.73 67,671.48 23,995,786.21
or retirement
(2) Effect of
exchange rate 2,292,746.42 6,905,154.90 20,588.05 7,832.20 9,226,321.57
movements
4. Closing
227,339,638.45 372,818,323.54 21,165,422.12 50,584,166.99 671,907,551.10
balance
III. Impairment
allowances
1. Opening
balance
2. Increase in
the current period
(1)
Established
3. Decrease in
the current period
(1) Disposal
or retirement
4. Closing
balance
IV. Carrying
amount
1. Closing
440,462,859.71 135,834,840.27 14,343,915.70 23,158,562.52 613,800,178.20
carrying amount
2. Opening
443,408,671.21 126,919,166.64 16,380,524.64 25,143,214.55 611,851,577.04
carrying amount
As at 30 June 2024, no registration certificate for properties has been obtained for the new plant with carrying amount of RMB
51,528,107.01.
Page 156 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
16. Construction in progress
Unit: RMB yuan
Item Closing balance Opening balance
Construction in progress 260,781,111.24 195,557,097.80
Total 260,781,111.24 195,557,097.80
(1) Particulars about construction in progress
Unit: RMB yuan
Closing balance Opening balance
Item Impairment Carrying Impairment Carrying
Gross amount Gross amount
allowance amount allowance amount
Plants and
208,719,501.50 208,719,501.50 161,127,696.15 161,127,696.15
buildings
Equipment
52,061,609.74 52,061,609.74 34,429,401.65 34,429,401.65
installation
Total 260,781,111.24 260,781,111.24 195,557,097.80 195,557,097.80
(2) Changes in substantial construction in progress in the current period
Unit: RMB yuan
Transf Cumul Of Interes
erred Other ative Cumul which: t
Increas
Openi to decrea Closin project ative Capital capital
e in Project Fundin
ng fixed ses in g invest capital ized ization
Project Budget the progre g
balanc assets the balanc ment ized interes rate for
current ss source
e in the current e as a % interes t in the the
period
current period of the t current current
period budget period period
Dongf
ang
Precisi
32,753
on - 4,268, 1,167, 5,436, 16.60 Self-
,000.0 0.00
Plant 623.84 609.18 233.02 % funded
0
Constr
uction
Project
Tirua
(Guan
gdong)
Intellig
ent
Equip
ment
Manuf 85,745 13,657 11,621 13,752 11,526
89.58 Self-
acturin ,627.1 ,520.1 ,747.2 ,276.9 ,990.4
% funded
g Co., 6 5 8 8 5
Ltd.
(“Tiru
a
Asia”)
-Plant
Constr
uction
Page 157 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Project
Parsun
Power
348,50 86,863 24,520 111,38
- Plant 31.96 Self-
3,300. ,545.6 ,462.5 4,008.
Constr % funded
00 6 0 16
uction
Project
Fosber
Asian
– 300,00 39,727 16,092 55,819
18.61 Self-
Fosber 0,000. ,491.8 ,269.2 0.00 ,761.0
% funded
Songg 00 4 3 7
ang
Plant
Tirua
S.L.U.
-
Corrug
74,874 25,079 28,545
ated 6,931, 2,806, 659,15 42.75 Self-
,598.4 ,297.2 ,080.2
roller 931.35 988.67 9.72 % funded
0 7 3
produc
tion
equip
ment
Fosber
Group
157,18 16,605 19,153 35,207
- Plant 551,60 23.34 Self-
4,000. ,803.0 ,323.8 ,526.2
Constr 0.68 % funded
00 5 5 2
uction
Project
- 12,861
9,354, 3,522, 45,039 Self-
Others 29,434 ,512.0
815.99 301.54 .83 funded
.39 9
999,06 195,55 83,009 16,604 260,78
1,181,
Total 0,525. 7,097. ,644.9 ,305.4 1,111.
326.01
56 80 3 8 24
17. Right-of-use assets
Unit: RMB yuan
Item Buildings and constructions Transportation equipment Total
I. Gross amount
1. Opening balance 118,754,693.52 28,790,487.11 147,545,180.63
2. Increase in the current
period 711,105.56 5,288,128.85 5,999,234.41
(1) Increase in the
711,105.56 5,288,128.85 5,999,234.41
current period
3. Decrease in the current
period 5,048,280.85 760,576.90 5,808,857.75
(1) Disposal 3,012,425.65 3,012,425.65
(2) Effect of exchange
2,035,855.20 760,576.90 2,796,432.10
rate movements
4. Closing balance 114,417,518.23 33,318,039.06 147,735,557.29
II. Accumulated depreciation
1. Opening balance 47,297,298.40 17,905,483.40 65,202,781.80
Page 158 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
2. Increase in the current
period 4,577,843.47 5,288,128.85 9,865,972.32
(1) Established 4,577,843.47 5,288,128.85 9,865,972.32
3. Decrease in the current
period 3,007,452.00 269,853.35 3,277,305.35
(1) Disposal 2,175,640.75 2,175,640.75
(2) Effect of exchange rate
831,811.25 269,853.35 1,101,664.60
movements
4. Closing balance 48,867,689.87 22,923,758.90 71,791,448.77
III. Impairment allowances
1. Opening balance
2. Increase in the current
period
(1) Established
3. Decrease in the current
period
(1) Disposal
4. Closing balance
IV. Carrying amount
1. Closing carrying amount 65,549,828.36 10,394,280.16 75,944,108.52
2. Opening carrying
amount 71,457,395.12 10,885,003.71 82,342,398.83
18. Intangible assets
(1) Particulars about intangible assets
Unit: RMB yuan
Non-patented Land Trademarks and
Item Land use rights Patent rights Total
technologies ownership software
I. Gross amount
1. Opening
balance 177,783,228.49 119,970,675.09 16,814,786.28 205,927,442.07 520,496,131.93
2. Increase in
the current 10,015.11 142,024.92 152,040.03
period
(1)
10,015.11 142,024.92 152,040.03
Purchases
(2)
Internal R&D
(3)
Increase in
business
combination
3. Decrease
in the current 2,475,759.40 422,551.94 4,398,332.39 7,296,643.73
period
(1)
Disposal 524.67 524.67
Page 159 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
(2) Effect of
exchange rate 2,475,234.73 422,551.94 4,398,332.39 7,296,119.06
movements
4. Closing
177,783,228.49 117,504,930.80 16,392,234.34 201,671,134.60 513,351,528.23
balance
II. Accumulated
amortization
1. Opening
balance 28,873,664.24 80,633,114.94 45,034,872.70 154,541,651.88
2. Increase in
the current 1,928,010.79 5,066,450.48 4,564,293.66 11,558,754.93
period
(1)
1,928,010.79 5,066,450.48 4,564,293.66 11,558,754.93
Provision
3. Decrease
in the current 1,924,316.35 838,805.50 2,763,121.85
period
(1)
Disposal 524.67 524.67
(2) Effect of
exchange rate 1,923,791.68 838,805.50 2,762,597.18
movements
4. Closing
30,801,675.03 83,775,249.07 48,760,360.86 163,337,284.96
balance
III. Impairment
allowances
1. Opening
balance
2. Increase in
the current
period
(1)
Established
3. Decrease
in the current
period
(1)
Disposal
4. Closing
balance
IV. Carrying
amount
1. Closing
carrying 146,981,553.46 33,729,681.73 16,392,234.34 152,910,773.74 350,014,243.27
amount
2. Opening
carrying 148,909,564.25 39,337,560.15 16,814,786.28 160,892,569.37 365,954,480.05
amount
As at the period-end, intangible assets arising from internal R&D accounted for 1.26% of the carrying amount of total
intangible assets.
Page 160 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
19. Goodwill
(1) Gross amounts of goodwill
Unit: RMB yuan
Increase in the current period Decrease in the current period
Investee or item
Opening Generated due Effect of Effect of
generating Closing balance
balance to business exchange rate Disposal exchange rate
goodwill
combination movements movements
Parsun Power 208,031,946.10 208,031,946.10
EDF 68,997,515.28 1,733,892.67 67,263,622.61
Fosber Group 161,353,929.07 4,054,789.42 157,299,139.65
QCorr 13,680,836.70 343,796.47 13,337,040.23
Wonder Digital 119,422,168.56 119,422,168.56
Total 571,486,395.71 6,132,478.56 565,353,917.15
(2) Impairment allowances for goodwill
Unit: RMB yuan
Increase in the current period Decrease in the current period
Investee or item
Opening Effect of Effect of
generating Closing balance
balance Established exchange rate Disposal exchange rate
goodwill
movements movements
Parsun Power 61,855,054.35 61,855,054.35
EDF 68,997,515.28 1,733,892.67 67,263,622.61
Total 130,852,569.63 1,733,892.67 129,118,676.96
20. Long-term prepaid expenses
Unit: RMB yuan
Increase in the Amortization in
Item Opening balance Other decreases Closing balance
current period the current period
Plant decoration
expenditures 3,119,789.38 111,926.60 652,050.95 2,579,665.03
Expenditures on
plant supporting 1,841,048.98 87,364.55 460,130.21 1,468,283.32
engineering
Internet access for
offices 48,398.19 685,714.32 264,253.72 469,858.79
Amortization of
lease assets 2,114,285.71 342,857.16 685,714.32 1,085,714.23
Office decoration
3,914,240.70 750,978.64 3,163,262.06
expenditures
Amortization of
moulds 17,021,708.05 104,567.24 3,799,715.38 13,326,559.91
CE certification
484,110.53 251,002.12 164,224.81 570,887.84
fee
Total 28,543,581.54 1,240,574.83 6,434,210.87 685,714.32 22,664,231.18
Other information:
Page 161 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
21. Deferred tax assets/liabilities
(1) Deferred tax assets before offsetting
Unit: RMB yuan
Closing balance Opening balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Asset impairment
allowances 45,301,530.09 9,289,922.03 41,464,787.21 7,585,286.13
Internal unrealized
profit 36,175,227.36 8,682,054.56 31,106,124.16 7,465,469.80
Deductible loss 24,084,790.86 151,837,694.55 1,148,967,602.00 174,998,363.51
Provisions—after-sales
maintenance service 133,188,952.64 35,179,064.47 137,007,925.99 35,957,989.47
charges
Deferred income 50,785,831.92 11,342,720.11 52,411,022.56 11,682,516.17
Accrued expenses 42,214,932.50 9,137,185.60 48,552,350.45 9,375,318.47
Equity incentives 1,993,728.47 299,059.27 1,549,606.23 237,403.35
Credit impairment
allowances 34,952,824.89 8,184,625.89 41,884,654.49 9,319,501.09
Lease liabilities 20,639,377.30 3,095,906.60 25,116,594.05 3,435,296.89
Financial assets at fair
value through profit or 112,515,085.81 16,972,772.72
loss
Others 126,451,780.39 28,890,072.69 117,570,323.59 26,223,652.56
Total 628,304,062.23 282,911,078.49 1,645,630,990.73 286,280,797.44
(2) Deferred tax liabilities before offsetting
Unit: RMB yuan
Closing balance Opening balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
differences differences
Increase in value in
asset valuation in
business combination 39,219,929.79 6,895,126.79 42,559,397.20 7,565,638.16
not involving entities
under common control
Financial assets at fair
value through profit or 1,794,832.35 233,592.92
loss
Depreciation difference
of fixed assets 42,241,387.90 7,411,861.10 61,963,523.25 10,363,510.02
Right-of-use assets 11,444,813.48 1,716,722.03 22,733,086.57 3,069,779.96
Others 82,342,140.65 20,600,572.13 69,220,019.79 18,030,160.88
Total 175,248,271.82 36,624,282.05 198,270,859.16 39,262,681.94
(3) Net balances of deferred tax assets/liabilities after offsetting
Unit: RMB yuan
Offset amount between Closing balance of Offset amount between Opening balance of
Item deferred tax assets and deferred tax assets or deferred tax assets and deferred tax assets or
liabilities as at the liabilities after liabilities as at the liabilities after
Page 162 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
period-end offsetting period-begin offsetting
Deferred tax assets 33,555,866.50 249,355,211.99 30,408,387.66 255,872,409.78
Deferred tax liabilities 33,555,866.50 3,068,415.55 30,408,387.66 8,854,294.28
(4) Breakdown of deferred tax assets unrecognized
Unit: RMB yuan
Item Closing balance Opening balance
Deductible temporary differences 1,007,221.51 3,925,408.90
Deductible losses 164,920,745.73 149,803,433.80
Total 165,927,967.24 153,728,842.70
(5) Deductible losses not recognized as deferred tax assets will expire as follows
Unit: RMB yuan
Year Closing amount Opening amount Remark
2024 1,500,658.71 4,418,846.10
2025 13,984,168.64 13,984,168.64
2026 12,841,957.31 12,841,957.31
2027 73,324,757.62 73,324,757.62
2028 47,378,458.10 49,159,113.03
2029 16,897,966.86
Total 165,927,967.24 153,728,842.70
22. Other non-current assets
Unit: RMB yuan
Item Closing balance Opening balance
Prepayment for
acquisition of
79,089,022.11 87,122,697.89
long-term
assets
Certificates of
10,413,178.08 10,248,630.14
deposit
Others 61,993.57 66,274.25
Total 89,564,193.76 97,437,602.28
23. Assets with restricted ownership or right of use
Unit: RMB yuan
Item Closing balance Opening balance
Cash and
bank 47,774,281.37 Deposit and 153,905,292.65
balances freezing Deposit, pledge and freezing
Fixed
63,977,965.43 4,460,554.82
assets Mortgage Mortgage
Total 111,752,246.80 158,365,847.47
Page 163 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
24. Short-term borrowings
(1) Short-term borrowings by type
Unit: RMB yuan
Item Closing balance Opening balance
Guaranteed loan 260,544,181.40
Credit loan 93,156,553.78 89,544,237.78
Bills discounted 20,461,553.62
Total 93,156,553.78 370,549,972.80
25. Financial liabilities held for trading
Unit: RMB yuan
Item Closing balance Opening balance
Financial liabilities held for trading 116,220,211.63 115,900,827.21
Of which:
Non-controlling interests put options 116,220,211.63 115,900,827.21
Of which:
Total 116,220,211.63 115,900,827.21
26. Notes payable
Unit: RMB yuan
Type Closing balance Opening balance
Bank acceptance notes 167,522,939.78 152,433,276.09
Total 167,522,939.78 152,433,276.09
27. Accounts payable
(1) Breakdown of accounts payable
Unit: RMB yuan
Item Closing balance Opening balance
Purchases of inventories 690,971,357.11 737,544,841.42
Total 690,971,357.11 737,544,841.42
28. Other payables
Unit: RMB yuan
Item Closing balance Opening balance
Other payables 124,061,681.76 126,415,425.61
Total 124,061,681.76 126,415,425.61
（1） Other payables
Unit: RMB yuan
Item Closing balance Opening balance
Page 164 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Accrued expenses 45,690,922.02 53,166,304.73
Repurchase obligation of restricted
2,290,000.00 2,290,000.00
shares
Payables for settled lawsuit 3,228,592.11 3,311,817.37
Security deposits 4,658,760.69 2,557,648.92
Equity acquisition 28,754,622.55 31,587,327.06
Others 39,438,784.39 33,502,327.53
Total 124,061,681.76 126,415,425.61
29. Contract liabilities
Unit: RMB yuan
Item Closing balance Opening balance
Contract liabilities 553,691,546.87 645,608,919.34
Total 553,691,546.87 645,608,919.34
30. Employee benefits payable
(1) Breakdown of employee benefits payable
Unit: RMB yuan
Increase in the current Decrease in the current
Item Opening balance period period Closing balance
I. Short-term benefits 139,561,863.20 366,849,096.33 387,457,722.94 118,953,236.59
II. Retirement benefits-
defined contribution 13,721,068.90 55,532,699.08 58,737,457.22 10,516,310.76
schemes
Total 153,282,932.10 422,381,795.41 446,195,180.16 129,469,547.35
(2) Breakdown of short-term benefits
Unit: RMB yuan
Increase in the current Decrease in the current
Item Opening balance period period Closing balance
1. Salaries, bonuses,
allowances, and 132,643,220.01 320,125,067.07 342,206,272.24 110,562,014.84
subsidies
2. Employee welfare 5,755,809.78 17,309,631.69 16,015,280.99 7,050,160.48
3. Social security
contributions 295,721.94 26,248,331.47 26,104,125.55 439,927.86
Including: medical
insurance 242,676.82 18,679,249.36 18,698,219.61 223,706.57
Work
36,933.13 7,265,337.17 7,102,476.35 199,793.95
injury insurance
Maternit
y insurance 16,111.99 303,744.94 303,429.59 16,427.34
4. Housing funds 614,072.00 2,567,525.12 2,560,605.12 620,992.00
5. Labour union funds
and employee 253,039.47 598,540.98 571,439.04 280,141.41
education funds
Total 139,561,863.20 366,849,096.33 387,457,722.94 118,953,236.59
Page 165 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
(3) Breakdown of defined contribution schemes
Unit: RMB yuan
Increase in the current Decrease in the current
Item Opening balance period period Closing balance
1. Basic endowment
13,703,110.06 55,142,091.58 58,346,739.96 10,498,461.68
insurance
2. Unemployment
insurance 17,958.84 390,607.50 390,717.26 17,849.08
Total 13,721,068.90 55,532,699.08 58,737,457.22 10,516,310.76
31. Tax payable
Unit: RMB yuan
Item Closing balance Opening balance
Value-added tax 869,317.95 5,649,692.90
Corporate income tax 81,468,090.78 45,973,508.11
Individual income tax 17,752,961.37 11,897,332.76
City maintenance and construction tax 102,182.25 430,752.88
Education surcharge 73,108.62 307,070.00
Stamp duties 112,883.55 151,505.57
Property tax 1,543,451.86 2,731,038.94
Land use tax 235,994.95 468,302.25
environmental protection tax 448.20
Others 823,048.16
Total 102,981,487.69 67,609,203.41
32. Current portion of non-current liabilities
Unit: RMB yuan
Item Closing balance Opening balance
Current portion of long-term borrowings 45,128,537.87 35,871,630.01
Current portion of lease liabilities 19,970,035.55 21,129,766.43
Total 65,098,573.42 57,001,396.44
33、Other current liabilities
Unit: RMB yuan
Item Closing balance Opening balance
Output tax to be written off 5,385,410.56 3,769,255.24
Endorsed notes receivable 2,817,454.66 5,375,919.77
Others 804,224.03
Total 9,007,089.25 9,145,175.01
34. Long-term borrowings
(1) Long-term borrowings by type
Unit: RMB yuan
Page 166 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Item Closing balance Opening balance
Collateralized loan 62,020,004.91 2,150,669.29
Guaranteed loan 50,914,619.40 55,374,274.02
Credit loan 65,884,796.53 57,454,387.85
Less: Current portion of long-term
-45,128,537.87 -35,871,630.01
borrowings
Total 133,690,882.97 79,107,701.15
Other information, including interest rate ranges:
On 30 June 2024, the annual interest rates of the loans in the table above ranged from 0.0% to 7.48% (31 December 2023:
0.0%-5.65%).
On 30 June 2024 and 31 December 2023, the Group had no overdue loans.
35. Lease liabilities
Unit: RMB yuan
Item Closing balance Opening balance
Lease liabilities 80,143,105.97 86,991,207.75
Less: Current portion of non-current
-19,970,035.55 -21,129,766.43
liabilities
Total 60,173,070.42 65,861,441.32
(1) Long-term employee benefits payable
Unit: RMB yuan
Item Closing balance Opening balance
Retirement benefits- net liabilities of
13,459,377.58 13,964,394.20
defined benefit schemes
Total 13,459,377.58 13,964,394.20
(2) Movements in the present value of defined benefit obligations are as follows:
Unit: RMB yuan
Item Closing balance Opening balance
Opening balance 13,964,394.20 13,179,944.17
Included in profit or loss -80,509.59 -622,045.57
Current service cost 76,298.00 87,904.06
Net interest -156,807.59 -709,949.63
Included in other comprehensive income -68,006.75 247,369.25
Actuarial gains or losses -68,006.75 247,369.25
Other changes -356,500.28 927,029.61
Benefits paid -6,666.14 133,262.44
Effect of exchange rate movements -349,834.14 793,767.17
Closing balance 13,459,377.58 13,732,297.46
37. Provisions
Unit: RMB yuan
Item Closing balance Opening balance Reason for provision
Page 167 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Product quality warranty 134,226,620.26 135,804,488.12
Others 16,305,253.06 32,554,465.72
Total 150,531,873.32 168,358,953.84
38. Deferred income
Unit: RMB yuan
Increase in the Decrease in the Reason for
Item Opening balance Closing balance
current period current period deferred income
Government grants 9,956,991.66 558,330.00 9,398,661.66
Total 9,956,991.66 558,330.00 9,398,661.66
39. Other non-current liabilities
Unit: RMB yuan
Item Closing balance Opening balance
Purchase obligations of non-controlling
16,516,181.12 16,941,926.93
interest options
Other 6,119,725.72 5,476,927.87
Total 22,635,906.84 22,418,854.80
40. Share capital
Unit: RMB yuan
Increase/decrease in the current period
Shares as
Opening Shares as Closing
dividend
balance dividend balance
New issues converted Others Subtotal
converted
from capital
from profit
surplus
- -
Total share 1,240,618,40 1,219,046,34
21,572,060.0 21,572,060.0
capital 0.00 0.00
0 0
Other information:
In the current period, the Company retired a total of 21,572,060shares, reducing its total share capital from 1,240,618,400
shares to 1,219,046,340 shares.
41. Capital surplus
Unit: RMB yuan
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Capital premium (share
2,752,232,589.91 79,203,431.39 2,673,029,158.52
premium)
Other capital surplus 137,696,407.30 1,065,753.95 138,762,161.25
Total 2,889,928,997.21 1,065,753.95 79,203,431.39 2,811,791,319.77
Other information, including changes in the current period and reasons for changes:
(1) During the current period, the share-based payment of the Company was included in shareholders' equity, increasing
capital reserve by RMB 1,065,753.95.
(2) During the current period, the Company retired a total of 21,572,060 shares (as described in Note VII, 40), reducing
capital reserve by RMB 79,203,431.39.
Page 168 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
42. Treasury shares
Unit: RMB yuan
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Share repurchase 218,298,532.79 100,775,491.39 117,523,041.40
Total 218,298,532.79 100,775,491.39 117,523,041.40
Other information, including changes in the current period and reasons for changes:
The decrease in treasury shares was mainly due to the share retirement (as stated in Item 40 under Note VII).
43. Other comprehensive income
Unit: RMB yuan
Amount generated in the current period
Less: Less:
amount amount
previously previously After-tax
Amount
recognized recognized amount
before Less: After-tax
Opening in other in other attributa Closing
Item income tax Incom amount
balance comprehens comprehens ble to balance
generated e tax attributable
ive income ive income non-
in the expen to the
and and controlli
current se parent
currently currently ng
period
transferred transferred interests
to profit or to retained
loss earnings
I. Other
comprehens
ive income
that will not 1,164,980. 1,226,352.
61,371.94 61,371.94
be 51 45
reclassified
to profit or
loss
Of which:
Changes
due to
remeasurem 1,164,980. 1,226,352.
61,371.94 61,371.94
ent of 51 45
defined
benefit
schemes
II. Other
comprehens
ive income - -
73,957,098 201,672. 44,812,204
that will be 28,943,220 29,144,893
.01 83 .85
reclassified .33 .16
to profit or
loss
Differences - -
74,001,070 201,672. 44,856,176
arising 28,943,220 29,144,893
.08 83 .92
from the .33 .16
translation
Page 169 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
of foreign
currency-
denominate
d financial
statements
Others -43,972.07 -43,972.07
Total other - -
75,122,078 201,672. 46,038,557
comprehens 28,881,848 29,083,521
.52 83 .30
ive income .39 .22
Other information, including the reconciliation from the valid portion of gains and losses on cash flow hedges to initial
recognition amounts of hedged items:
44. Special reserve
Unit: RMB yuan
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Expenses for safety
16,229,817.03 1,198,032.00 588,236.76 16,839,612.27
production
Total 16,229,817.03 1,198,032.00 588,236.76 16,839,612.27
Other information, including movements in the current period and reasons for the movements:
45. Surplus reserves
Unit: RMB yuan
Increase in the current Decrease in the current
Item Opening balance Closing balance
period period
Statutory surplus
51,830,974.45 51,830,974.45
reserves
Total 51,830,974.45 51,830,974.45
Notes to surplus reserves, including movements in the current period and reasons for the movements:
46. Retained earnings
Unit: RMB yuan
Item Current period Last year
Opening retained earnings before
456,258,959.55 23,018,722.11
adjustment
Opening retained earnings after
456,258,959.55 23,018,722.11
adjustment
Add: Net profit attributable to owners of
163,880,472.14 433,240,237.44
the parent in the current period
Closing retained earnings 620,139,431.69 456,258,959.55
Adjustments to opening retained earnings:
1) Retrospective adjustments as a result of the Accounting Standards for Business Enterprises and related new regulations
had an effect of RMB0.00 on opening retained earnings.
2) Accounting policy changes had an effect of RMB0.00 on opening retained earnings.
3) Correction of material accounting errors had an effect of RMB0.00 on opening retained earnings.
4) Changes to the consolidation scope as a result of any business combination involving entities under common control
had an effect of RMB0.00 on opening retained earnings.
Page 170 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
5) Other adjustments had a combined effect of RMB0.00 on opening retained earnings.
47. Operating revenue and costs
Unit: RMB yuan
H1 2024 H1 2023
Item
Revenue Costs Revenue Costs
Principal operations 2,158,219,373.35 1,466,482,328.94 2,069,224,162.36 1,459,261,571.03
Other operations 2,969,534.05 1,568,441.66 13,382,291.36 13,368,573.08
Total 2,161,188,907.40 1,468,050,770.60 2,082,606,453.72 1,472,630,144.11
Information related to contract performance obligations:
Information related to the transaction price allocated to residual performance obligations:
At the end of the Reporting Period, the amount of revenue corresponding to performance obligations that had been
contracted but not yet performed or fulfilled was RMB553,691,546.87, of which RMB553,691,546.87 is expected to be
recognized during 2024-2025.
48. Taxes and surcharges
Unit: RMB yuan
Item H1 2024 H1 2023
City maintenance and construction tax 3,685,148.38 2,991,325.36
Education surcharge 2,687,834.54 2,143,432.58
Property tax 2,376,568.91 2,241,139.82
Land use tax 206,660.90 311,593.32
Vehicle and vessel use tax 6,882.77 4,782.72
Stamp duties 458,217.47 497,520.52
Others 60,099.64 92,682.58
Total 9,481,412.61 8,282,476.90
49、Administrative expenses
Unit: RMB yuan
Item H1 2024 H1 2023
Employee benefits 86,471,690.69 92,138,490.27
Depreciation and amortization expenses 14,210,998.52 15,556,417.85
Intermediary expenses 13,921,094.92 11,002,554.66
Equity incentives 714,743.91 15,217,575.03
Office expenses 10,201,972.20 8,539,427.19
Travel and reception expenses 6,636,531.47 8,038,848.68
Conference expenses 7,623,766.99 5,214,777.28
Rental expenses 4,170,373.66 3,258,863.24
Technology development expenses 7,544,884.23 4,513,652.67
Other expenses 10,453,526.93 11,338,057.76
Total 161,949,583.52 174,818,664.63
50. Selling expenses
Unit: RMB yuan
Page 171 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Item H1 2024 H1 2023
Commissions and agency fees 29,735,720.82 27,156,128.98
Employee benefits 34,818,930.88 33,175,562.84
Product quality warranties 34,166,847.70 35,889,981.39
Advertising and exhibition expenses 10,370,281.35 6,775,903.30
Travel expenses 6,863,531.64 6,013,175.38
equity incentive 63,351.06 2,152,048.69
Depreciation and amortization expenses 1,121,092.53 1,119,258.60
Other expenses 5,979,622.18 6,966,621.58
Total 123,119,378.16 119,248,680.76
51. R&D expenses
Unit: RMB yuan
Item H1 2024 H1 2023
Employee benefits 34,842,850.55 34,207,002.02
Depreciation and amortization expenses 8,149,649.45 8,169,488.94
Material expenses 2,892,339.95 4,204,251.70
Technology development expenses 120,746.76 5,470,265.49
equity incentive 217,044.08 2,019,107.48
Other expenses 4,143,436.79 5,858,904.42
Total 50,366,067.58 59,929,020.05
52. Finance costs
Unit: RMB yuan
Item H1 2024 H1 2023
Interest expenses 10,539,931.90 5,872,796.16
Less: Interest income 22,603,240.17 12,725,562.50
Exchange gains and losses -2,315,440.36 -2,238,057.48
Others 1,584,586.79 4,551,675.11
Total -12,794,161.84 -4,539,148.71
53. Other income
Unit: RMB yuan
Source of other income H1 2024 H1 2023
Government grants 9,890,423.74 3,598,750.12
Handling charges for individual income
432,933.77 741,077.27
tax withheld
Total 10,323,357.51 4,339,827.39
54. Gains and losses on changes in fair value
Unit: RMB yuan
Source of gains and losses on changes in
H1 2024 H1 2023
fair value
Page 172 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Financial assets held for trading -85,374,294.70 2,006,095.39
Total -85,374,294.70 2,006,095.39
55. Investment income
Unit: RMB yuan
H1 2024 H1 2023
Income from long-term equity
investments measured at equity -2,914,122.66 -2,332,949.80
method
Income from financial assets held
-5,280,793.54 38,442,145.88
for trading
Total -8,194,916.20 36,109,196.08
56. Credit impairment loss
Unit: RMB yuan
Item H1 2024 H1 2023
Loss on doubtful accounts receivable 746,267.19 -2,281,819.86
Loss on doubtful other receivables -108,095.70 5,293.40
Loss on doubtful long-term receivables 24,391.20 5,412.00
Total 662,562.69 -2,271,114.46
57. Asset impairment loss
Unit: RMB yuan
Item H1 2024 H1 2023
Inventory valuation loss and loss on
impairments of contract performance -2,084,889.45 -5,276,028.10
costs
Loss on impairments of contract assets -3,658,393.34 -336,909.99
Total -5,743,282.79 -5,612,938.09
58. Gains on disposal of assets
Unit: RMB yuan
Source of gains on disposal of assets H1 2024 H1 2023
Loss on disposal of fixed assets 5,017,509.44 -2,277,157.05
Profit or loss from disposal of right-of-use
76,970.02
assets
Total 5,094,479.46 -2,277,157.05
59. Non-operating income
Unit: RMB yuan
Amount recognized in
Item H1 2024 H1 2023
exceptional gains and losses
Others 939,908.99 2,034,810.24 939,908.99
Total 939,908.99 2,034,810.24 939,908.99
Page 173 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
60. Non-operating expenses
Unit: RMB yuan
Amount recognized in
Item H1 2024 H1 2023
exceptional gains and losses
Donations 163,461.77 213,596.37 163,461.77
Loss on disposal of non-
2,205.15 10,937.57 2,205.15
current assets
Others 224,305.37 907,384.54 224,305.37
Total 389,972.29 1,131,918.48 389,972.29
61. Income tax expenses
(1) Income tax expenses
Unit: RMB yuan
Item H1 2024 H1 2023
Current income tax expenses 83,725,950.64 52,891,480.67
Deferred income tax expenses 7,231,539.09 3,338,138.93
Total 90,957,489.73 56,229,619.60
(2) Reconciliation between accounting profit and income tax expenses
Unit: RMB yuan
Item H1 2024
Gross profit 278,333,699.44
Income tax calculated at statutory/applicable tax rates 41,750,054.92
Different tax rates for specific provinces or enacted by local
26,632,080.38
authority
Adjustment to income tax in previous periods -770,537.27
Income not subject to tax 631,983.22
Costs, expenses, and losses not deductible for tax 223,292.65
Utilization of deductible losses on previously unrecognized
-3,280.29
deferred tax assets
Effect of deductible temporary differences or deductible losses
25,951,876.83
on current unrecognized deferred tax assets
Over-deduction of the taxable profit amount for R&D -3,457,980.71
Income tax expenses 90,957,489.73
62. Other comprehensive income
See Item 43 under Note VII.
63. Line items of the cash flow statement
(1) Cash related to operating activities
Unit: RMB yuan
H1 2024 H1 2023
Current accounts and others 13,443,346.57 8,272,973.12
Page 174 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Interest income 22,755,414.30 7,683,458.57
Government grants 9,765,027.51 6,781,497.39
Guarantee deposit received 1,332,228.88 6,419,859.92
Deposits 1,454,652.77 1,180,000.00
Total 48,750,670.03 30,337,789.00
Unit: RMB yuan
H1 2024 H1 2023
Selling expenses in cash 87,390,198.62 68,986,775.28
Administrative expenses in cash 61,327,958.13 52,432,257.53
R&D expenses in cash 4,262,737.50 10,366,406.31
Letter of guarantee paid 5,855,098.69 6,168,384.35
Current accounts and others 12,744,856.93 10,329,778.09
Security deposits 306,406.58 1,082,472.00
Total 171,887,256.45 149,366,073.56
(2) Cash related to investing activities
Unit: RMB yuan
H1 2024 H1 2023
Disposal/redemption of financial assets
820,003,799.66 1,778,154,089.71
held for trading
Recovery of equity investments 10,000,000.00
Total 830,003,799.66 1,778,154,089.71
Unit: RMB yuan
H1 2024 H1 2023
Purchase of financial assets held for
838,349,461.46 1,654,863,903.07
trading
Purchase of equity investments 77,777,778.00 50,000,000.00
Total 916,127,239.46 1,704,863,903.07
(3) Cash related to financing activities
Unit: RMB yuan
H1 2024 H1 2023
Security deposits recovered for internal
107,345,506.70
guarantees for external loans
Security deposits for bank acceptance
48,083,599.11 39,381,507.99
notes
Total 155,429,105.81 39,381,507.99
Cash used in other financing activities
Unit: RMB yuan
Item H1 2024 H1 2023
Security deposits paid for internal
107,345,506.70
guarantees for external loans
Share repurchase 67,200.00 69,926,318.31
Security deposits for bank acceptance
44,775,224.72 22,446,295.25
notes
Rental and interest paid 11,150,763.38 10,779,914.10
Deposits for loans paid 17,700,000.00
Acquisition of non-controlling interests 10,793,663.53
Total 55,993,188.10 238,991,697.89
Page 175 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Unit: RMB yuan
increase in the current period decrease in the current period
Closing
Opening Changes in Non-cash Changes in Non-cash
balance
balance cash changes cash changes
Short-term
370,549,972.80 64,989,376.25 314,906,530.68 27,476,264.59 93,156,553.78
borrowing
Long-term
borrowings
(Including
114,979,331.16 83,104,338.59 7,509,036.84 26,773,285.75 178,819,420.84
current portion
of long-term
borrowings）
Lease liabilities
(Including
current portion 86,991,207.75 4,302,661.60 11,150,763.38 80,143,105.97
of non-current
liabilities)
Total 572,520,511.71 148,093,714.84 11,811,698.44 352,830,579.81 27,476,264.59 352,119,080.59
64. Supplemental information on statement of cash flows
(1) Supplemental information on statement of cash flows
Unit: RMB yuan
Supplementary information H1 2024 H1 2023
1. Reconciliation of net profit to net cash
generated from/used in investing
activities:
Net profit 187,376,209.71 229,203,797.40
Add: Asset impairment allowances 5,743,282.79 5,612,938.09
Credit impairment loss -662,562.69 2,271,114.46
Depreciation of fixed assets,
depletion of oil and gas assets, and 24,399,898.32 24,599,520.97
depreciation of productive living assets
Depreciation of right-of-use
9,865,972.32 10,458,604.46
assets
Amortization of intangible
11,558,754.93 12,097,591.52
assets
Amortization of long-term
6,434,210.87 7,480,462.67
prepaid expenses
Loss on the disposal of fixed
assets, intangible assets, and other long- -5,094,479.46 2,277,157.05
lived assets (“-” for gain)
Loss on the retirement of fixed
2,205.15 10,937.57
assets (“-” for gain)
Loss on changes in fair value
85,374,294.70 -2,006,095.39
(“-” for gain)
Finance costs (“-” for income) 15,619,969.13 7,219,522.20
Loss on investment (“-” for
8,194,916.20 -36,109,196.08
income)
Decrease in deferred tax assets
3,369,718.95 8,697,392.25
(“-” for increase)
Page 176 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Increase in deferred tax
-2,638,399.89 -4,816,451.79
liabilities (“-” for decrease)
Decrease in inventories (“-” for
-139,102,847.17 -253,435,681.37
increase)
Decrease in operating
57,187,082.83 89,453,122.15
receivables (“-” for increase)
Increase in operating payables
-144,819,176.01 66,876,459.48
(“-” for decrease)
Others -4,238,587.03 21,544,870.88
Net cash generated from/used
118,570,463.65 191,436,066.52
in operating activities
2. Significant investing and financing
activities that involve no cash proceeds
or payments:
Conversion of debt to capital
Current portion of convertible
corporate bonds
Fixed assets leased in in finance
leases
3. Net changes in cash and cash
equivalents:
Closing balance of cash 1,510,191,035.14 1,363,621,222.67
Less: Opening balance of cash 1,672,514,611.84 1,233,720,697.27
Add: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash
-162,323,576.70 129,900,525.40
equivalents
(2) Breakdown of cash and cash equivalents
Unit: RMB yuan
Item Closing balance Opening balance
I. Cash 1,510,191,035.14 1,672,514,611.84
Including: cash on hand 2,431,022.70 438,600.93
Bank deposits readily available 1,410,181,236.34 1,491,798,403.81
Other cash and bank balances
97,578,776.10 180,277,607.10
readily available
III. Closing balance of cash and cash
1,510,191,035.14 1,672,514,611.84
equivalents
65. Monetary items in foreign currencies
(1) Monetary items in foreign currencies
Unit: RMB yuan
Closing balance in foreign
Item Exchange rate Closing balance in RMB
currency
Cash and bank balances
Page 177 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Including: USD 72,345,689.08 7.1268 515,593,256.94
EUR 56,524,289.83 7.6617 433,072,151.39
HKD 21,538.46 0.9127 19,658.15
GBP 345,920.55 9.0430 3,128,159.53
Accounts receivable
Including: USD 251,595.08 7.1268 1,793,067.82
EUR 89,176,173.47 7.6617 683,241,088.28
HKD
Long-term borrowings
Including: USD
EUR 6,147,837.03 7.6617 47,102,882.97
HKD
Accounts payable
Including: EUR 59,424,830.45 7.6617 455,295,223.46
Other receivables
Including: EUR 3,279,649.58 7.6617 25,127,691.19
Short-term borrowings
Including: EUR 8,592,286.34 7.6617 65,831,520.25
Current portion of non-
current liabilities
Including: EUR 6,034,661.27 7.6617 46,235,764.25
Other payables
Including: USD 463,449.61 7.1268 3,302,912.68
EUR 2,017,688.60 7.6617 15,458,924.75
Lease liabilities
Including: EUR 6,342,871.65 7.6617 48,597,179.72
Contract Assets
Including: USD 285,500.00 7.1268 2,034,701.40
EUR 94,102.37 7.6617 720,984.13
(2) Overseas business entities (for substantial overseas business entities, the following information
shall be disclosed: principal place of business, functional currency, and basis for the choice, change of
functional currency and reasons)
Applicable □ Not applicable
Substantial overseas business Principal place of Functional
Basis for the choice
entity business currency
Page 178 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Settlement currency for local business
Fosber Group Italy EUR
operations
Settlement currency for local business
Fosber America America USD
operations
Settlement currency for local business
EDF Italy EUR
operations
Settlement currency for local business
Tirua Group Spain EUR
operations
Ⅹ R&D expenditure
Unit: RMB yuan
Classified by nature H1 2024 H1 2023
Employee benefit 34,842,850.55 34,207,002.02
Depreciation and amortization
8,149,649.45 8,169,488.94
expenses
Material expenses 2,892,339.95 4,204,251.70
Technology development costs 120,746.76 5,470,265.49
Equity incentive expense 217,044.08 2,019,107.48
Other expenses 4,143,436.79 5,858,904.42
Total 50,366,067.58 59,929,020.05
Of which：Expensed R&D expenditure 50,366,067.58 59,929,020.05
Page 179 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Ⅸ Interests in Other Entities
1. Interests in subsidiaries
Particulars of the subsidiaries of the Company are as follows:
Principal place Place of Business Registered The Company’s
of business registration nature capita interest(%)
Direct Indirect
Subsidiaries acquired by way of incorporation or investment
Dongfang Precision (HK) HK HK Trading USD300,000 100.00 -
Dongfang Precision (Netherland) Netherland Netherland Trading EUR40,000 90.00 10.00
Fosber Asia Foshan, Foshan,
Guangdong, China Guangdong, China Manufacturing RMB29,581,891 100.00 -
Italy QCorr Italy Italy Manufacturing EUR375,000 - 60.00
Suzhou High-Tech Zone Jinquan Business Management Partnership Suzhou, Suzhou,
(Limited Partnership)*(“High-Tech Zone Jinquan”) Jiangsu, China Jiangsu, China Investment RMB10,553,000 - 1.23
Suzhou, Suzhou,
Suzhou Parsun Power Technology Co., Ltd. (“Parsun Power Technology”) Jiangsu, China Jiangsu, China Trading RMB10million - 69.61
Suzhou Baisheng International Trade Co., Ltd. (“Baisheng Suzhou, Suzhou,
International”) Jiangsu, China Jiangsu, China Trading RMB3 million - 69.61
Haikou, Hainan, China Haikou, Hainan, China Industrial
Dongfang Digicom Data Technology Co., Ltd. (“Dongfang Digicom”) Internet RMB100 million 100.00 -
Dongfang Digicom Data Technology (Guangdong) Co., Ltd. (“Dongfang Foshan, Foshan, Industrial
Digicom (Guangdong)”) Guangdong, China Guangdong, China Internet RMB8 million 100.00 -
Hainan Yineng Investment Co., Ltd. (“Yineng Investment”) Haikou, Hainan, China Haikou, Hainan, China Investment RMB100 million 100.00 -
Dongfang Yineng International Holdings Co., Ltd. (“Yineng Foshan, Foshan,
International”) Guangdong, China Guangdong, China Investment RMB50 million 100.00 -
Tianjin Hangchuang Zhijin Investment Partnership (Limited Partnership) Tianjin, China Tianjin, China
(“Tianjin Hangchuang”) Investment RMB21 million 95.24 -
Changzhou Xinchen Investment Partnership (Limited Partnership) Changzhou, Changzhou, Investment RMB50.6 million - 94.86
Page 180 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
(“Changzhou Xinchen”) Jiangsu, China Jiangsu, China
Fosber Group Italy Italy Manufacturing EUR1.56 million - 100.00
Fosber America America America Manufacturing USD1.10 million - 100.00
Forsberg (Machinery) Tianjin Co., Ltd. (“Fosber Tianjin”) Tianjin, China Tianjin, China Manufacturing USD500,000 - 100.00
Suzhou, Jiangsu, Suzhou, Jiangsu,
Parsun Power China China Manufacturing RMB85.3 million 7.83 61.78
Suzhou, Jiangsu, Suzhou, Jiangsu,
Suzhou Shunyi Investment Co., Ltd. .(“Shunyi Investment”) China China Investment RMB10 million 100.00 -
EDF Italy Italy Manufacturing EUR100,000 - 100.00
Tirua S.L.U. Spain Spain Manufacturing EUR1.44 million - 100.00
Tirua FranceSARL France France Manufacturing EUR100,000 - 100.00
SCI Candan France France Manufacturing EUR10,000 - 100.00
Tirua America America America Manufacturing USD3 million - 100.00
Guangdong Tirua Rolls Manufactury company limited (“Tirua Rolls Foshan, Guangdong, Foshan, Guangdong,
Manufactury”) China China Manufacturing EUR21 million - 66.30
Foshan, Guangdong, Foshan, Guangdong,
Tirua Asia China China Manufacturing RMB50 million 100.00 -
Shenzhen, Shenzhen,
Wonder Printing Guangdong, China Guangdong, China Manufacturing RMB31,171,949 51.00 -
Dongguan, Dongguan,
Dongguan Wonder Digital Machinery Co., Ltd. (“Wonder Digital”) Guangdong, China Guangdong, China Manufacturing RMB5million - 51.00
*According to the partnership agreement, the general partner of the partnership shall execute partnership affairs, and other partners shall not execute partnership affairs. As the sole
general partner, the Company forms control over the partnership, which is included in the scope of consolidation of the Group.
Page 181 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Ⅸ Interests in Other Entities
2. Interests in associates
Principal Place of
place of Business Registered The Company’s Accounting
business registration nature capital interest (%) method
Direct Indirect
Associates
Guangdong Jaten
Robot & Foshan, Foshan,
Automation Co., Guangdong, Guangdong, Manufact Equity
Ltd. China China uring RMB31.759 million 19.84 - method
Manufact Equity
Talleres Tapre,S.L. Spain Spain uring EUR37,563 - 20.00 method
Nanjing, Nanjing,
Jiangsu, Jiangsu, Manufact Equity
Nanjing Profeta China China uring RMB4.5427 million 15.00 5.67 method
Financial information of insignificant joint ventures and associates combined
Unit: RMB yuan
Closing balance/H1 2024 Opening balance/H1 2023
Joint ventures:
Totals based on the Company’s interests
Associates:
Total carrying amount of investments 114,307,542.37 117,265,884.84
Totals based on the Company’s interests
--Net profit -2,914,122.66 -2,332,949.80
--Total comprehensive income -2,914,122.66 -2,332,949.80
Other information:
As there is no obligation to bear additional losses, the net losses incurred by the investee are recognized to the
extent that the book value of the long-term equity investment and other long-term interests that substantially
constitute the net investment in the investee are reduced to zero.
Ⅹ. Government grants
The government grants recognised in profit or loss are as follows:
Unit: RMB yuan
2024 2023
Government grants related to assets
558,330.00 558,330.00
Recognised as other income
Government grants related to income
9,890,423.74 3,598,750.12
Recognised as other income
Total 10,448,753.74 4,157,080.12
Page 182 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Ⅺ Risks Associated with Financial Instruments
1.Risks of financial instruments
The main risks arising from the Group's financial instruments are credit risk, liquidity risk and market risk.
The Group’s policies are summarised below.
Credit risk
The Group transacts only with recognized and reputable third parties. According to the Group's policies, credit
checks are needed for all customers that require transactions should be conducted by means of credit.
Additionally, the Group performs continuous monitoring of the balance of accounts receivable to ensure that
the Group will not face major bad debt risk. For transactions not settled in the accounting standard currency of
the relevant business unit, unless specifically approved by the credit control department of the Group, the
Group will not provide credit transaction conditions.
Since the counterparties of cash and bank balances and notes receivable are banks with a good reputation and
high credit rating, the credit risk of such financial instruments is low.
Other financial assets of the Group mainly include accounts receivable, other receivables and contract assets,
the credit risk of which arises from counterparty default, and the maximum risk exposure is equal to the
carrying value of these instruments.
The Group transacts only with recognized and reputable third parties, so no collateral is required. Credit risk
concentration is managed by customer/counterparty, geographic region and industry. Because the customer
base of accounts receivable of the Group is widely dispersed in different departments and industries, there is
no major credit risk concentration within the Group. The Group does not hold any collateral or other credit
enhancement on the balance of accounts receivable.
Criteria for judging significant increases in credit risk
The Group assesses whether or not the credit risk of the relevant financial instruments has increased
significantly since the initial recognition at each balance sheet date. The Group's main criteria for determining
significant increase in credit risk are that the number of days past due exceed 30 days, or one or more of the
following indicators have changed significantly: significant adverse changes in the operating environment of
the debtor, internal and external credit ratings, and actual or expected operating results.
Definition of credit-impaired financial assets
The Group's main criterion for determining that credit impairment has occurred is that the number of days past
due exceeds 90 days. However, in some cases, if internal or external information indicates that the contract
amount may not be recovered in full before considering any credit enhancements held, the Group will also
consider that credit impairment has occurred.
The credit impairment on a financial asset may be caused by the combined effect of multiple events and may
not be necessarily due to a single event.
Liquidity risk
Page 183 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
The Group aims to maintain sufficient cash and credit lines to meet its liquidity requirements. The Group
finances its working capital requirements through a combination of funds generated from operations and other
borrowings.
Market Risk
Interest rate risk
The Group’s exposure to risk of changes in market interest rates relates primarily to the Group’s long-term
liabilities with floating interest rates.
Exchange rate risk
The Group is exposed to trading exchange rate risks. Such exposures arise from sales or purchases by business
units in currencies other than the units’ functional currencies.
The primary objective of the Group’s capital management is to safeguard the Group’s ability to continue as a
going concern and to maintain healthy capital ratios in order to support its business and maximize shareholders’
value.
The Group manages its capital structure and makes adjustments in the light of changes in economic conditions
and in the risk profiles of relevant assets. To maintain or adjust the capital structure, the Group may adjust the
dividend payment to shareholders, return capital to shareholders or issue new shares. The Group is not subject
to any externally imposed capital requirements. No changes were made in the objectives, policies or processes
for managing capital during 2023 and 2022.
Ⅻ Disclosure of Fair Values
1. The closing fair value of assets and liabilities measured at fair value
Unit: RMB yuan
Closing fair value
Item Level 1 fair value Level 2 fair value Level 3 fair value
Total
measurement measurement measurement
I. Continuous
measurement of fair -- -- -- --
value
(I) Financial assets
607,015,754.09 607,015,754.09
held for trading
Receivables financing 22,923,994.65 22,923,994.65
Other non-current
31,420,551.63 496,655,940.43 528,076,492.06
financial assets
Other non-current
10,413,178.08 10,413,178.08
assets
Total assets
continuously measured 638,436,305.72 33,337,172.73 496,655,940.43 1,168,429,418.88
at fair value
Page 184 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
(VI) Financial
liabilities held for 116,220,211.63 116,220,211.63
trading
Other non-current
22,635,906.84 22,635,906.84
liabilities
Total liabilities
continuously measured 138,856,118.47 138,856,118.47
at fair value
II. Non-continuous
measurement of fair -- -- -- --
value
XIII Related Parties and Related-party Transactions
1. Parent
Interest in the
Name Relationship with the Company
Company (%)
Tang Zhuolin The Company’s controlling shareholder and one of the
22.21%
(individual) actual controllers
Tang Zhuomian The Company’s controlling shareholder and one of the
7.95%
(individual) actual controllers
The ultimate controllers of the Company are Tang Zhuolin and Tang Zhuomian.
2. Subsidiaries of the Company
See Item 1 under Ⅸ Interests in Other Entities
3. Joint ventures and associates of the Company
For substantial joint ventures and associates of the Company, see Item 2 under Ⅸ Interests in Other Entities
4. Other related parties
Other related parties Relationship with the Company
Tang Zhuolin chairman of the board
Qiu Yezhi Director and General Manager
Xie Weiwei Director and Deputy General Manager
Chen Huiyi Chairman of the Supervisory Committee
Zhao Xiuhe Employee Supervisor
He Baohua Supervisor
Li Ketian Independent Director
Liu Da Independent Director
Page 185 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Tu Haichuan Independent Director
Feng Jia Director and Board Secretary
Shao Yongfeng Chief Financial Officer and Vice President
5. Related-party transactions
(1) Remuneration of key management
Unit: RMB yuan
Item H1 2024 H1 2023
Remuneration of key management 8,429,047.79 8,086,182.30
XIV Share-based Payments
Unit: RMB yuan
Granted in the period Exercised in the period Unlocked in the period Expired in the period
Number Amount Number Amount Number Amount Number Amount
Marketing
managem
800,000.00 800,000.00
ent
R&D
Productio
n&Operat 80,000.00 80,000.00
ion
Total 880,000.00 880,000.00
2、Equity-settled share-based payments are as follows：
Unit: RMB yuan
Determination method of fair value of equity instruments at Based on the share price on the grant date minus the grant
grant date price, it is RMB3.74 (RMB4.74 minus RMB1)
mportant parameters of fair value of equity
instruments at grant date Share price at grant date and Grant Price
Make the best estimate of the number of vested employees
Basis for determining the number of vested equity
based on the latest information such as turnover rate and
instruments
substandard rate
Reasons for significant difference between current year's
None
estimate and prior year's estimate
Accumulated amount of equity-settled share-based
93,258,787.55
payment included in capital reserve
Total expense recognized for equity-settled share-based
1,065,753.95
payments during the period
On 27 March 2020, the Company convened the Board of Directors, where the Proposal on Granting Restricted
Shares to Awardees was approved, and the Board of Directors agreed to grant restricted shares to 42 qualified
senior managers and core technicians, and agreed to have the right to purchase shares at RMB1 within the
exercise validity period when the corresponding performance assessment objectives are met within the lifting
period. The maximum period shall not exceed 60 months from the date of completion of registration of the
first grant of some restricted shares to the date when all restricted shares granted to the incentive objects are
lifted or repurchased and cancelled.
Page 186 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
On 29 December 2020, the Company convened the Board of Directors, where the Proposal on Granting
Reserved Restricted Shares to Awardees was approved, and the Board of Directors agreed to grant restricted
shares to 18 qualified senior managers and core technicians, and agreed to have the right to purchase shares at
RMB1 within the exercise validity period when the corresponding performance assessment objectives are met
within the lifting period. The maximum period shall not exceed 60 months from the date of completion of
registration of the first grant of some restricted shares to the date when all restricted shares granted to the
incentive objects are lifted or repurchased and cancelled.
On 21 March 2022, the Company convened the Board of Directors, where the Proposal on Granting Restricted
Shares to Awardees was approved, and the Board of Directors agreed to grant restricted shares to 7 qualified
senior managers and core technicians, and agreed to have the right to purchase shares at RMB1 within the
exercise validity period when the corresponding performance assessment objectives are met within the lifting
period. The maximum period shall not exceed 60 months from the date of completion of registration of the
first grant of some restricted shares to the date when all restricted shares granted to the incentive objects are
lifted or repurchased and cancelled.
Share-based payment expenses incurred during the year are as follows:
Unit: RMB yuan
Equity-settled share-based Cash-settled share-based
payment expenses payment expenses
Marketing 63,351.06
management 714,743.91
R&D 217,044.08
Production&Operation 70,614.90
Total 1,065,753.95
XV Commitments and Contingencies
1. Substantial commitments
Outstanding substantial commitments at the balance sheet date:
At the balance sheet date, the Company had no commitments that were required to be disclosed.
2. Contingencies
(1) Explain if the Company has no substantial contingencies that need to be disclosed
The Company had no substantial contingencies that needed to be disclosed.
XVI Events after the Balance Sheet Date
1. Other information on events after the balance sheet date
At the balance sheet date, the Company had no events after the balance sheet date that are required to be disclosed.
Page 187 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
XVII Other Significant Matters
1. Segment reporting
(1) Basis for the determination of reporting segments and accounting policies
For management purposes, the Group is divided into business units based on products and services. 。
(2) Financial information of reporting segments
Unit: RMB yuan
Item Domestic entities Overseas entities Offset Total
Operating revenue 815,441,773.38 1,407,235,902.24 -61,488,768.22 2,161,188,907.40
Cost of sales 554,283,062.84 971,818,928.15 -58,051,220.39 1,468,050,770.60
Total assets 5,660,526,554.00 2,955,395,531.38 -1,276,986,242.80 7,338,935,842.58
Total liabilities 1,286,004,594.83 1,767,172,340.07 -608,037,757.92 2,445,139,176.98
XVIII Notes to Major Items in the Company Financial Statements
1. Accounts receivable
(1) Disclosure by the aging of accounts receivable
Unit: RMB yuan
age of accounts H1 2024 H1 2023
Within 1 year 212,841,200.44 190,721,565.80
1-2 years 206,516.30 454,811.38
2-3 years 35,600.00 357,849.03
3-4 years 2,985,024.87 2,934,285.66
4-5 years 515,118.58 456,982.47
Over 5 years 2,469,906.29 2,477,303.19
Total 216,068,341.61 194,468,511.87
Page 188 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
(2) Disclosure classified by the bad debt provision methods
Unit: RMB yuan
Closing balance Opening balance
Gross amount Allowance Gross amount Allowance
Allowa Allowa
Type Carrying Carrying
Percenta nce Percenta nce
Amount Amount amount Amount Amount amount
ge percenta ge percenta
ge ge
Accounts
receivable
for which
the
2,469,906.2 2,469,906 100.00 2,477,303.1 2,477,303 100.00 2,469,906.2
allowances 1.14% 1.27%
9 .29 % 9 .19 % 9
are
established
individuall
y
Of which:
Accounts
receivable
for which
the
2,469,906.2 2,469,906 100.00 2,477,303.1 2,477,303 100.00
allowances 1.14% 1.27%
9 .29 % 9 .19 %
are
established
individuall
y
Accounts
receivable
for which
the 213,598,43 1,242,011 212,356,42 191,991,20 1,629,562 190,361,64
98.86% 0.58% 98.73% 0.85%
allowances 5.32 .96 3.36 8.68 .40 6.28
are
established
by group
Of which:
Accounts
receivable
for which
213,598,43 1,242,011 212,356,42 191,991,20 1,629,562 190,361,64
the 98.86% 0.58% 98.73% 0.85%
5.32 .96 3.36 8.68 .40 6.28
allowances
are
established
Page 189 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
by group
with
similar
credit risk
characteris
tics
216,068,34 100.00 3,711,918 212,356,42 194,468,51 100.00 4,106,865 190,361,64
Total 1.72% 2.11%
1.61 % .25 3.36 1.87 % .59 6.28
Accounts receivable for which the allowances are established individually:
Unit: RMB yuan
H1 2024 H1 2023
ECL Reason for
Gross amount Allowance Gross amount Allowance (%) allowance
Customer’s
inability to
Customer 1 939,000.00 939,000.00 936,506.29 936,506.29 100.00%
settle the
amount due
Customer’s
inability to
Customer 2 641,600.00 641,600.00 641,600.00 641,600.00 100.00%
settle the
amount due
Customer’s
inability to
Customer 3 608,800.00 608,800.00 608,800.00 608,800.00 100.00%
settle the
amount due
Customer’s
inability to
Customer 4 283,000.00 283,000.00 283,000.00 283,000.00 100.00%
settle the
amount due
Customer’s
inability to
Customer 5 4,903.19 4,903.19
settle the
amount due
Total 2,477,303.19 2,477,303.19 2,469,906.29 2,469,906.29
Accounts receivable for which the allowances are established by group with similar credit risk characteristics are as follows:
Unit: RMB yuan
Closing balance
Item
Gross amount Allowance Allowance percentage
Within 1 year (inclusive) 212,841,200.44 696,545.87 0.33%
1-2 years (including 2 years) 206,516.30 11,771.43 5.70%
2-3 years (including 3 years) 35,600.00 18,576.08 52.18%
3-4 years (including 4 years) 515,118.58 515,118.58 100.00%
Total 213,598,435.32 1,242,011.96
Basis for grouping：
Where allowances for doubtful accounts receivable are established using the general model of expected credit loss.
Page 190 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
□ Applicable Not applicable
(3) Allowances established or reversed in the current period
Allowances in the current period:
Unit: RMB yuan
Opening Change in the current period
Type Closing balance
balance Established Reversed Written off Others
Allowances for
doubtful
4,106,865.59 394,947.34 3,711,918.25
accounts
receivable
Total 4,106,865.59 394,947.34 3,711,918.25
As at 30 June 2024, the top five accounts receivable and contract assets were as follows:
Unit: RMB yuan
Total closing As a % of the Total closing
Closing balance of balance of closing balance of balance of
Closing balance of
accounts accounts total accounts accounts
contract assets
receivable receivable and receivable and receivable and
contract assets contract assets contract assets
Dongfang
Precision 105,190,454.15 105,190,454.15 43.86%
(Netherland)
Dongfang
58,449,392.78 58,449,392.78 27.05%
Precision (HK)
Customer 6 8,170,876.20 8,170,876.20 3.78%
Customer 7 5,409,018.00 1,220,176.56 6,629,194.56 3.07% 63,640.27
Customer 8 4,166,230.30 117,960.00 4,284,190.30 1.98% 41,128.23
Total 181,385,971.43 1,338,136.56 182,724,107.99 79.74% 104,768.50
2. Other receivables
Unit: RMB yuan
Item Closing balance Opening balance
Dividends receivable 187,729,679.60 272,564,800.00
Other receivables 299,464,830.21 382,260,293.49
Total 487,194,509.81 654,825,093.49
(1) Dividends receivable
1) Dividends receivable by type
Unit: RMB yuan
Item (or investee) Closing balance Opening balance
Dividends receivable 187,729,679.60 272,564,800.00
Page 191 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Total 187,729,679.60 272,564,800.00
(2) Other receivables
1) Disclosure by nature
Unit: RMB yuan
Nature Closing gross amount Opening gross amount
Internal transactions with related parties 294,333,290.81 378,012,519.05
Prepaid service charges 1,353,965.65 1,211,065.51
Security deposits 1,165,323.68 976,244.53
Performance compensation 500,000.00 500,000.00
Employee loans and petty cash 1,536,842.60 1,451,110.72
Others 1,730,432.01 1,264,378.22
Total 300,619,854.75 383,415,318.03
2) Disclosure by the aging
Unit: RMB yuan
age of accounts 2024 2023
Within 1 year 233,569,750.82 288,812,991.16
1-2 years 48,492,234.36 68,762,598.71
2-3 years 14,743,534.48 24,699,392.06
Over 3 years 3,814,335.09 1,140,336.10
3-4 years 2,698,000.00 117,761.18
4-5 years 97,292.73 4,400.00
Over 5 years 1,019,042.36 1,018,174.92
Total 300,619,854.75 383,415,318.03
3) Disclosure classified by the allowances provision methods
Unit: RMB yuan
Closing balance Opening balance
Gross amount Allowance Gross amount Allowance
Allowa Allowa
Type Carrying Carrying
Percent nce Percent nce
Amount Amount amount Amount Amount amount
age percent age percent
age age
Allowances
are 500,000. 500,000. 100.00 500,000. 100.00
0.17% 500,000.00 0.13%
established 00 00 % 00 %
individually
Of which:
Page 192 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
allowances
are 500,000. 500,000. 100.00 500,000. 100.00
0.17% 500,000.00 0.13%
established 00 00 % 00 %
individually
allowances
are 300,119, 99.83 655,024. 299,464,83 382,915,31 99.87 655,024. 382,260,29
0.22% 0.17%
established 854.75 % 54 0.21 8.03 % 54 3.49
by group
Of which:
allowances
are
established
by group 300,119, 99.83 655,024. 299,464,83 382,915,31 99.87 655,024. 382,260,29
0.22% 0.17%
with similar 854.75 % 54 0.21 8.03 % 54 3.49
credit risk
characteristic
s
300,619, 100.00 1,155,02 299,464,83 383,415,31 100.00 1,155,02 382,260,29
Total 0.38% 0.30%
854.75 % 4.54 0.21 8.03 % 4.54 3.49
Allowances are established by group with similar credit risk characteristics
Unit: RMB yuan
2024
Gross amount Allowance Carrying amount
allowances are established by
group with similar credit risk 300,119,854.75 655,024.54 0.22%
characteristics
Total 300,119,854.75 655,024.54
Provision for allowance is made according to the general model of expected credit loss:
Unit: RMB yuan
Stage 1 Stage 2 Stage 3
Financial assets
with credit Total
12-month ECL Lifetime ECL
impairment
(lifetme ECL)
Opening and closing
655,024.54 500,000.00 1,155,024.54
balance
Other movements 655,024.54 500,000.00 1,155,024.54
4) Allowances established or reversed in the current period
Allowances for doubtful other receivables in the current period:
Page 193 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Unit: RMB yuan
Opening Change in the current period
Type Closing balance
balance Established Reversed Written off Others
Allowances for
doubtful other 1,155,024.54 1,155,024.54
receivables
Total 1,155,024.54 1,155,024.54
5) As at 30 June 2024, top 5 of other receivables are as follows:
Unit: RMB yuan
As a % of
Closing balance of
Nature 2024 Age total other
allowance
receivables
Hainan Yineng Current account 177,726,782.70 Within 1 year 59.12%
Within 1 year;
Tirua Aisa Current account 55,329,075.24 1-2 years; 18.40%
2-3years
Dongfang Within 1 year;
Digicom Current account 34,933,615.27 1-2 years; 11.62%
(Guangdong) 2-3years
Within 1 year;
Dongfang
Current account 12,090,924.24 1-2 years; 4.02%
Digicom
2-3years
Dongfang Within 1 year;
Precision Current account 6,682,462.38 1-2 years; 2.22%
(Netherland) 3-4years
Total 286,762,859.83 95.38%
3. Long-term equity investments
Unit: RMB yuan
Closing balance Opening balance
Item Impairment Carrying Impairment Carrying
Gross amount Gross amount
allowance amount allowance amount
Investment
812,322,784.1 45,303,485.9 767,019,298.1 812,235,280.6 45,303,485.9 766,931,794.7
s in
0 9 1 9 9 0
subsidiaries
Investment
s in joint
106,888,057.5 106,888,057.5 109,046,798.4 109,046,798.4
ventures
0 0 2 2
and
associates
919,210,841.6 45,303,485.9 873,907,355.6 921,282,079.1 45,303,485.9 875,978,593.1
Total
0 9 1 1 9 2
Page 194 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
(1) Investments in subsidiaries
Unit: RMB yuan
Change in the period
Opening Closing
Opening Additional Reduction Closing
balance impairment Change in balance impairment
in
allowance other allowance
investment investment
equity
Dong Fang
Precision 1,856,010.0 1,856,010.0
(HK) 0 0
Limited
Dongfang
Precision 1,602,394.3 1,602,394.3
(Netherlan 0 0
d)
Guangdong
Fosber 114,790,76 114,816,53
25,767.35
Intelligent 3.28 0.63
Equipment
Suzhou
Shunyi 294,799,35 45,303,485. 294,799,35 45,303,485.
Investment 7.77 99 7.77 99
Co., Ltd
Tirua
(Guangdon
g)
Intelligent 21,903,462. 21,903,462.
Equipment 34 34
Manufactur
ing Co.,
Ltd.
Dongfang
Digicom
4,718,918.7 4,718,918.7
Data
4 4
Technology
Co., Ltd.
Dongfang
Digicom
Data 10,000,000. 10,925,177.
863,440.97 61,736.06
Technology 00 03
(Guangdon
g) Co., Ltd.
Hainan
Yineng 102,121,57 102,121,57
Investment 5.83 5.83
Co., Ltd.
Tianjin
20,000,000. 10,000,000. 10,000,000.
Hangchuan
00 00 00
g
Tianjin
173,800,00 173,800,00
Hangchuan
0.00 0.00
g
1,832,356.8 1,832,356.8
EDF
3 3
Page 195 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Yineng
Internation 28,643,514. 28,643,514.
al Holdings 64 64
Co., Ltd
766,931,79 45,303,485. 10,000,000. 10,000,000. 767,019,29 45,303,485.
Total 87,503.41
4.70 99 00 00 8.11 99
(2) Investments in joint ventures and associates
Unit: RMB yuan
Change in the period
Return
on Adjust
Openi invest ment Closin
ng Declar Closin
ment to g
Openi Additi Reduct Other ed Impair g
ng recogn other
impair onal ion in equity cash ment impair
balanc ized compr Others balanc
ment invest invest change divide allowa ment
e e
allowa using ehensi allowa
ment ment s nds or nce
nce the ve nce
profit
equity incom
metho e
d
Associates/joint ventures
Guang
dong
Jaten
Robot 87,476 - 87,317
& ,726.1 159,03 ,689.8
Autom 7 6.34 3
ation
Co.,
Ltd.
Nanjin
g
Profeta
Intellig 21,570 - 19,570
ent ,072.2 1,999, ,367.6
Techn 5 704.58 7
ology
Co.,
Ltd.
109,04 - 106,88
Total 6,798. 2,158, 8,057.
42 740.92 50
4. Operating revenue and costs
Unit: RMB yuan
H1 2024 H1 2023
Item
Revenue Costs Revenue Costs
Page 196 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Principal operations 174,730,275.81 98,971,447.20 199,620,855.04 115,715,894.18
Other operations 8,346,571.88 1,567,415.81 19,974,397.59 2,183,292.25
Total 183,076,847.69 100,538,863.01 219,595,252.63 117,899,186.43
Information related to the transaction price allocated to residual performance obligations:
At the end of the Reporting Period, the amount of revenue corresponding to performance obligations that had been
contracted but not yet performed or fulfilled was RMB56,381,340.41, of which RMB56,381,340.41 is expected to be
recognized during 2024-2025.
5. Investment income
Unit: RMB yuan
Item H1 2024 H1 2023
Income from long-term equity
-2,158,740.92 -1,781,870.58
investments measured at equity method
Investment income generated from the
529,048.11
disposal of long-term equity investment
Income from financial assets held for
-3,853,122.25 -2,738,562.31
trading
Total -5,482,815.06 -4,520,432.89
XIX Supplementary Information
1. Schedule of exceptional gains and losses in the current period
Applicable □ Not applicable
Unit: RMB yuan
Amount
Gain or loss on disposal of non-current assets
5,092,274.31
(inclusive of impairment allowance write-offs)
Government grants through profit or loss (Except
for government grants that are closely related to
normal business, comply with national policies
10,323,357.51
and regulations, enjoy according to the
recognition criteria and have a sustained impact
on profit and loss)
Profit or loss from changes in fair value of
financial assets and financial liabilities held by
non-financial enterprises and profit or loss from
-90,655,088.24
disposal of financial assets and financial
liabilities, except for effective hedging business
related to normal business operations
Reversal of impairment provision for receivables
7,396.90
subject to separate impairment test
Non-operating income and expenses other than the
552,141.85
above
Page 197 of 198
Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2024
Minus：Income tax effects -10,195,770.51
Non-controlling interests effects (net of tax) 743,081.74
Total -65,227,228.90
Other items that meet the definition of exceptional gain/loss:
□ Applicable Not applicable
No such cases for the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement No.
1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:
□ Applicable Not applicable
2. Return on equity (ROE) and earnings per share (EPS)
EPS
Profit of the Reporting Period Weighted average ROE Diluted EPS (RMB
Basic EPS (RMB yuan/share)
yuan/share)
Net profit attributable to
ordinary shareholders of the 3.58% 0.14 0.14
Company
Net profit attributable to
ordinary shareholders of the
5.00% 0.19 0.19
Company before exceptional
gains and losses
3. Accounting data differences under China’s Accounting Standards for Business Enterprises (CAS) and
International Financial Reporting Standards (IFRS) and foreign accounting standards
(1) Net profit and equity under CAS and IFRS
□ Applicable Not applicable
(2) Net profit and equity under CAS and foreign accounting standards
□ Applicable Not applicable
Page 198 of 198
