Full text of Guangdong Dongfang Precision Science&Technology Co., Ltd. Semi-annual Report 2020
广东东方精工科技股份有限公司
2020 年半年报英文版披露说明
近年来中国资本市场持续加大对外开放力度，鼓励境外投资者更多参与，东方精工科技
股份有限公司（以下简称“公司”）为更好地服务越来越多的境外投资者，让境外投资者更
便捷地获取公司经营与财务等方面信息，同时也更充分地向境外投资者传递公司的投资价值，
提升公司国际化水平，公司发布披露《2020 年半年度报告》的英文版本。
本次报告翻译中，涉及众多瓦楞包装机械行业和财会方面的专业术语。虽然公司已尽力
确保原文内容得到准确的转译，但仍可能会存在不恰当之处。公司在此声明：如果您在阅读
《2020 年半年度报告》的中文、英文文本的过程中，在对文本的理解上发生歧义时，以中文
文本为准。
In recent years, China's capital market continues to open to the outside world and encouraged
foreign investors to participate inthe financial market of China. Guangdong Dongfang Precision
Science & Technology Co., Ltd. (hereinafter referred to as ”the company”) discloses its
Semi-annual Report 2020 in English, that we believe can enables for foreign investors to obtain
information about the company's operation and finance more conveniently, and fully convey the
investment value of the company to them, and at the same time help continuously improving the
company's international level.
As the report involves many professional terms translation of Corrugated packaging machinery
industry and financial accounting, the company has made great efforts to ensure the accurate
translation of the original content, but there may still be some inadequacies. The company hereby
declares that in case of any ambiguity in your understanding of the Chinese version and English
version of the Semi-annual Report 2020, the Chinese version shall prevail.
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Full text of Guangdong Dongfang Precision Science&Technology Co., Ltd. Semi-annual Report 2020
Guangdong Dongfang Precision Science&Technology Co.,Ltd.
Semi-annual Report 2020
August 2020
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Full text of Guangdong Dongfang Precision Science&Technology Co., Ltd. Semi-annual Report 2020
Section 1 Important Notes, Table of Contents and Interpretation
The company's board of directors, board of supervisors, directors, supervisors,
and senior management ensure that the contents of the semi-annual report are
true, accurate, and complete, that there are no false records, misleading
statements, or major omissions, and if there are any, we shall bear individual
and joint legal responsibilities.
Tang Zhuolin, person in charge of the company, Qiu Yezhi, chief in charge of
accounting work, and Qiu Yezhi, head of accounting institution (accounting
officer) hereby confirm that the financial report in the semi-annual report is
true, accurate and complete.
All the directors attended the board meeting to review this report.
The relevant risks that may exist in the company's operation and development
are described in detail in “X. Risks faced by the company and countermeasures”
in Section 4 “Discussion and Analysis of Business Situation” of this report.
Investors are advised to read this part.
The company plans not to distribute cash dividends, neither give away bonus
shares, nor capitalize from public reserve.
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Table of Contents
Section 1 Important Notes, Table of Contents and Interpretation ........................................... 1
Section 2 Company Profile and Main Financial Indicators......................................................... 6
Section 3 Company Business Overview ...................................................................................... 11
Section 4 Discussion and Analysis of Business Situation ........................................................... 28
Section 5 Important Matters....................................................................................................... 54
Section 6 Changes in Shares and Shareholders ......................................................................... 72
Section 7 Preference Shares ........................................................................................................ 81
Section 8 Relevant Information on Convertible Corporate Bonds ........................................... 82
Section 9 Directors, Supervisors and Senior Management ........................................................ 83
Section 10 Corporate Bonds .................................................................................................... 85
Section 11 Financial Report ........................................................................................................ 86
Section 12 Catalogue of Documents for Reference. ................................................................. 246
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Interpretation
Interpretation Item Refers to Interpretation
Company, Dongfang Precision, the company Refers to Guangdong Dongfang Precision Science&Technology Co.,Ltd.
Guangdong Dongfang Precision Science&Technology Co.,Ltd.
Dongfang Precision（China） Refers to
Corrugated Box Printing Machine Division
Fosber Group Refers to Fosber S.p.A.
Fosber Asia Refers to Guangdong Fosber Intelligent Equipment Co., Ltd.
Fosber US Refers to Fosber America, Inc.
Fosber Tianjin Refers to Fosber (Machinery) Tianjin Co., Ltd.
Tiruna Group Refers to Tiruna Group Industrial, S.L.
Tiruna S.L.U Refers to Tiruna S.L.U.
Tiruna US Refers to Tiruna America inc.
Italy QCorr Refers to QuantumCorrugated S.r.l.
Dongfang Precision（Europe）/Italy EDF Refers to EDF Europe s.r.l.
Dongfang Precision（Netherland） Refers to Dong Fang Precision (Netherland) Cooperatief U.A.
Dongfang Precision（HK） Refers to Dongfang Precision (Hong Kong) Co., Ltd.
Parsun Power Refers to Suzhou Parsun Power Machine Co.,Ltd.
Shunyi Investment Refers to Suzhou Shunyi Investment Co., Ltd.
Yinglian Digital Refers to Foshan Yinglian Digital Printing Equipment Co., Ltd.
Jiateng Robot Refers to Guangdong Jiateng Robot Automation Co., Ltd.
Pride, Beijing Pride Refers to Beijing Pride New Energy Battery Technology Co., Ltd.
Changzhou Pride Refers to Changzhou Pride New Energy Battery Technology Co., Ltd.
Pulead Refers to Pulead Technology Industry Co.,Ltd.
BAIC Refers to Beijing Automotive Group Industry Investment Co.,Ltd.
CATL Refers to Contemporary Amperex Technology Co. Limited
Foton Motor Refers to Beiqi Foton Motor Co., Ltd.
Qinghai Puren Intelligent Technology R & D Center (Limited
Qinghai Puren Refers to
Partnership)
Corrugated cardboard is made into corrugated boxes by printing,
Corrugated box Refers to grooving, die-cutting and sticking boxes; corrugated boxes are the most
widely used packaging products.
Corrugated box automatic printing linkage line A complete set of corrugated paper box printing machinery equipment
Refers to
and stand-alone products that integrates all or part of the functions of leading edge paper feeding,
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printing, grooving, die cutting, and forming. It has the characteristics of
highly integrated functions, high automation level, and intensive
technology. It can save capital investment, manual investment, reduce
labor intensity and increase production efficiency of carton production
enterprises. This type of product has strong requirements on equipment
manufacturers' design level, scientific research and innovation
capabilities, assembly technology, and spare parts finishing.
The roll base paper goes through a production line consisting of
corrugating, gluing, bonding, paper-dividing and lining, and cutting into
Corrugated board production line Refers to specification paperboard. It is mainly composed of two relatively
independent process sections: wet-end equipment and dry-end
equipment.
Equipment matched with corrugated box printing linkage line or
stand-alone products, which can provide corrugated box printing and
Prepress and postpress intelligent automatic packaging production process of pre-press and post-press related
Refers to
packaging equipment functions, including multi-color complete sets of printing slotting
die-cutting machine, pre-feeding machine, waste transfer equipment,
intelligent stacking equipment, sticky box equipment and so on.
Refers to the propulsion engine installed on the outside of the hull (side
Outboard motor Refers to of the ship), usually suspended on the outside of the transom, also known
as the outboard engine.
Manufacturing Execution System is a set of production information
management system for workshop execution layer of manufacturing
enterprises. MES can provide management modules for enterprises,
including manufacturing data management, planning and scheduling
management, production scheduling management, inventory
management, quality management, human resource management, work
MES Refers to
center/equipment management, tool management, purchasing
management, cost management, project Kanban management, production
process control, bottom data integration analysis, upper data integration
and decomposition, etc so as to create a solid, reliable, comprehensive
and feasible manufacturing collaborative management platform for
enterprises.
ERP Refers to Enterprise Resource Planning
Warehouse Management System. Through the functions of incoming and
outgoing business, warehouse allocation, inventory allocation and virtual
warehouse management, WMS is a management system that
WMS Refers to
comprehensively applies the functions of batch management, material
correspondence, inventory count, quality inspection management, virtual
warehouse management and real-time inventory management.
SCADA Refers to Supervisory Control And Data Acquisition
APS Refers to Advanced Planning and Scheduling
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Full text of Guangdong Dongfang Precision Science&Technology Co., Ltd. Semi-annual Report 2020
Automated Guided Vehicle, refers to the transport vehicle equipped with
electromagnetic or optical automatic navigation devices, which can drive
AGV Refers to
along the prescribed navigation path, with safety protection and various
transfer functions.
CSRC Refers to China Securities Regulatory Commission
Shenzhen Exchange, Exchange Refers to Shenzhen Stock Exchange
Yuan, 10,000 yuan, 100 million yuan Refers to RMB Yuan, RMB 10,000 yuan, RMB 100 million yuan
Reporting period, this reporting period Refers to January 1, 2020 to June 30, 2020
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Section 2 Company Profile and Main Financial Indicators
I. Company profile
Stock abbreviation Dongfang Precision Stock code 002611
Stock exchange where the stock is listed Shenzhen Stock Exchange
The Chinese name of the company 广东东方精工科技股份有限公司
The Chinese abbreviation name of the
东方精工
company (if any)
The company's foreign name (if any) GUANGDONG DONGFANG PRECISION SCIENCE & TECHNOLOGY CO., LTD
Abbreviation of the company's foreign
DONGFANG PRECISION
name (if any)
The company's legal representative Tang Zhuolin
II. Contact person and contact information
Secretary of the Board Securities Affairs Representative
Name Zhou Wenhui Zhu Hongyu
25th Floor, Hisense South Building, 1777 25th Floor, Hisense South Building, 1777
Contact address Chuangye Road, Nanshan District, Chuangye Road, Nanshan District,
Shenzhen, Guangdong Shenzhen, Guangdong
Phone 0755-36889712 0755-36889712
Fax 0755-36889822 0755-36889822
Email ir@vmtdf.com ir@vmtdf.com
III. Other circumstances
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 2019 annual report.
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2. Information disclosure and location.
Whether the information disclosure and location have changed during the reporting period.
□ Applicable √ Not applicable
The name of the information disclosure newspaper selected by the company, the URL of the website designated by the CSRC that
publishes the semi-annual report, and there is no change in the reporting period of the company's semi-annual report. For details,
please refer to the 2019 annual report.
IV. Main accounting data and financial indicators
Does the company need to retroactively adjust or restate previous year's accounting data
□ YES √ NO
Increase or decrease
Current period Same period of last year
by...than the previous period
Operating income (yuan) 1,177,491,225.13 4,391,349,294.89 -73.19%
Net profit attributable to shareholders of
127,198,462.09 182,391,136.39 -30.26%
the listed company (yuan)
Net profit attributable to shareholders of
the listed company after deducting 81,018,675.86 166,155,556.81 -51.24%
non-recurring gains and losses (yuan)
Net cash flow from operating activities
29,409,409.32 1,419,240,751.97 -97.93%
(yuan)
Basic earnings per share (yuan / share) 0.08 0.10 -20.00%
Diluted earnings per share (yuan / share) 0.08 0.10 -20.00%
Weighted average return on net assets 2.89% 4.47% -1.58%
Increase or decrease
At the end of the reporting At the end of last year
by...than the previous period
Total assets (yuan) 6,485,012,563.38 6,273,516,157.31 3.37%
Net assets attributable to shareholders of
4,478,400,049.32 4,337,064,607.87 3.26%
the listed company (yuan)
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V. The changes of the main financial indicators in the reporting period compared with the
data in the same period last year after being adjusted according to comparable standards.
In view of the change in the scope of the company's consolidated financial statements during the reporting period compared
with the same period last year: Pride was included in the company's consolidated financial statements in the first half of 2019, while
no longer included in the company's consolidated financial statements during the reporting period, and the main business of
Dongfang Precision focuses on high-end smart equipment. In order to more accurately reflect the changes in the operating
performance of the company's main business in the first half of 2020 compared with the same period last year, and to ensure that the
revenue and profit data are comparable, we compare the revenue and profit data for the reporting period with the data adjusted
according to the comparable caliber excluding Pride in the same period of last year, as shown in the following table:
After being adjusted
according to the comparable
Reporting period Increase or decrease change
caliber in the same period
last year
Operating income (yuan) 1,177,491,225.13 1,194,294,360.00 -1.41%
Net profit belonging to shareholders of the 127,198,462.09 117,761,020.85 8.01%
listed company (yuan)
Net profit after deducting non-recurring 81,018,675.86 101,320,863.52 -20.04%
gains and losses belonging to shareholders
of the listed company (yuan)
Net cash flow from operating activities 29,409,409.32 59,659,733.31 -50.70%
(yuan)
Supplementary note on "net cash flow from operating activities" during the reporting period:
During the reporting period, the parent company paid enterprise income tax in advance and paid part of the prepaid tax to the
competent tax authorities in accordance with the provisions of the tax authorities, resulting in a large amount of cash outflow from
business activities in the reporting period; after the completion of the settlement and payment of enterprise income tax, the tax
authorities returned about 88.46 million yuan of prepaid tax to the parent company in July 2020. Excluding this effect, the net cash
flow generated by operating activities during the reporting period increased by about 98% compared with the comparable adjusted
amount in the same period last year.
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VI. Differences in accounting data under domestic and foreign accounting standards
1.The difference between net profit and net assets in financial reports disclosed in accordance with
international accounting standards and in accordance with Chinese accounting standards at the same time
□ Applicable √ Not applicable
During the reporting period, there was no discrepancy between the net profit and net assets in the financial reports disclosed in
accordance with international accounting standards and in accordance with Chinese accounting standards.
2.The difference between net profit and net assets in financial reports disclosed in accordance with overseas
accounting standards and in accordance with Chinese accounting standards at the same time
□ Applicable √ Not applicable
There was no discrepancy between the net profit and net assets in the financial report disclosed in accordance with overseas
accounting standards and in accordance with Chinese accounting standards during the reporting period.
VII.Non-recurring items and amounts
√ Applicable □ Not applicable
Unit: yuan
Item Amount Explanation
Gains and losses from disposal of non-current assets (including
2,745.13
write-offs of asset impairment provisions)
Government subsidies included in the current profit and loss
For details, please refer to notes
(closely related to the business of the enterprise, except for
7,097,271.94 VII.46 and VII.52 of the financial
government subsidies that are fixed or quantified according to the
report
national unified standard)
In addition to the effective hedging business related to the
company's normal business operations, holding transactional
financial assets, derivative financial assets, transactional financial
liabilities, fair value changes in derivative financial liabilities, and 46,010,424.48
disposal of transactional financial assets and derivative financial
investment income from assets, trading financial liabilities,
derivative financial liabilities and other debt investments
Other non-operating income and expenses other than the above -1,288,845.41
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Deduct: the amount of income tax impact 5,538,643.77
Minority shareholders' equity impact (after tax) 103,166.14
In total 46,179,786.23 --
For the company's non-recurring gains and losses items defined by the "Announcement No. 1 of Information Disclosure by
Companies Offering Securities to the Public — Non-recurring Gains and Losses" and the non-recurring gains and losses items
defined by "Announcement No. 1 of Information Disclosure by Companies Offering Securities to the Public —Non-recurring Gains
and Losses" as recurring gains and losses, the reasons should be explained
□ Applicable √ Not applicable
During the reporting period of the company, there were no situations in which the non-recurring gains and losses items listed in
accordance with the definition of "Announcement No. 1 of Information Disclosure by Companies Offering Securities to the Public —
Non-recurring Gains and Losses" were defined and listed as recurring gains and losses.
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Section 3 Company Business Overview
I. The main business of the company during the reporting period
Dongfang Precision takes "smart manufacturing" as its strategic vision and business core, and
is one of the earliest companies engaged in R&D, design and production of intelligent corrugated
carton packaging equipment in China. Since its listing in 2011, the company has used the capital
market to expand the industry chain of corrugated box packaging equipment. At present, it has
become a leading domestic and international leading supplier of intelligent corrugated box
packaging equipment.The layout and operation of the company’s business sectors are as follows:
1. Smart packaging equipment business
During the reporting period, the company's business of intelligent packaging equipment focused on
the design, R & D, production, sales and service of "corrugated box packaging automation
equipment and production lines". It has business entities focusing on the field of intelligent
packaging equipment, such as Dongfang Precision (China), Dongfang Precision (Europe), Fosber
Group, Fosber Asia, Fosber US and Italy QCorr, which has formed a global group layout.
1.1 Main products and uses
As a typical midstream industry, the corrugated cardboard packaging industry uses corrugated
cardboard base paper produced by upstream paper companies as raw materials to produce
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corrugated cardboard finished products, which are widely used in household appliances, electronic
products, IT, food and beverage, books, daily chemical, textile and other downstream consumer
industries and logistics express companies. Compared with metal, plastic, and glass packaging
products, corrugated cardboard boxes are degradable, easy to recycle and reuse, and are recognized
as "green packaging products".
Dongfang Precision is the earliest company engaged in the R&D, design and production of
intelligent corrugated box packaging equipment in China. It provides high-tech content, high
performance and high-quality cardboard production and printing and packaging equipment.
At present, the company has expanded from the corrugated box printing equipment in the initial
stage of listing to three major product lines that can provide customers with high-end corrugated
cardboard production lines, corrugated cardboard printing slotting die-cutting machines, and
corrugated cardboard printing slotted sticking box linkage lines and the solution of the whole
industrial chain equipment including prepress and postpress intelligent automatic packaging
equipment.
Schematic diagram of a corrugated carton packaging intelligent model factory
(1-10 are the company's existing products, 11 is the company's strategic expansion link)
The main products of the company's intelligent packaging equipment business include: corrugated
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cardboard production line, corrugated box printing complete production line, prepress and postpress
intelligent automation equipment (including multi-color complete printing slotting die-cutting
machine, pre-feeder, waste conveying equipment, intelligent stack Stacking equipment, gluing
equipment, etc.), as well as automated logistics systems.
1.1.1 Corrugated board production line
The company's corrugated board production line includes raw paper holders and splicing machines,
single-sided machines, glue coating machines, double-sided machines, rotary cutters, slitting and
crimping machines, cross-cutting machines, stacking machines, production line intelligent
management systems, and noise prevention units. The corrugated board production line is a
large-scale automation equipment.
The company's corrugated board production line is positioned at the high end, and it is superior to
domestic counterparts in terms of speed, width, energy saving, safety, and operation automation,
and has reached the world's leading level. The intelligent design and smooth linear process included
in the company's products can effectively reduce labor costs for downstream corrugated board
manufacturers, greatly improve production efficiency, reduce management pressure, and improve
business efficiency.
The company's corrugated board production line business is facing the global market. The company
develops, produces and sells corresponding products for the performance requirements of different
customers in the Asian, European and American markets.
1.1.2 Corrugated box printing production line
The company's corrugated box printing complete production line products include corrugated box
printing linkage line, printing stand-alone products, and prepress and postpress intelligent automatic
equipment.
The company develops and produces two series of production and sales for different customers in
Asia, Europe, and the United States. Corrugated carton printing complete production line equipment,
including: Asia-Pacific Star Series (APSTAR), mainly exported to Europe and the United States
and other developed markets; TOPRA series (TOPRA), mainly for domestic large and
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medium-sized group customers or listed companies.
Schematic diagram of the company's printing equipment stand-alone products
Schematic diagram of the company's up-printing fixed sticky box linkage line (left)
and down-printing open and closed sticky box linkage line (right)
Schematic diagram of the company's down-printing automatic printing linkage line product
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The company's corrugated box printing production line is exported to more than 30 countries and
regions in Europe, America, Southeast Asia and India. At present, the company has become a
high-profile corrugated box printing equipment manufacturer in the global market and China.
1.2 Main business model
1.2.1 Business model
Dongfang Precision's intelligent packaging equipment business adopts the "design and development
+ production + sales + service one-stop" business model, and implements "differentiated" operation
and service-oriented manufacturing.
Fosber Group, Fosber Asia’s corrugated board production line business under Dongfang Precision,
and corrugated box printing equipment business of Dongfang Precision (China) and Dongfang
Precision (Europe) have the product design and R&D strength, and have the production capacity to
meet sales demand.
In terms of "differentiated" operation, on the one hand, the company's corrugated board production
line business and corrugated box printing complete production line business are positioned at the
mid-to-high end, and the market is oriented to large and medium-sized customers. The product has
high technical content, high intelligence, stable quality and good reliability; On the one hand, the
company provides high-quality after-sales services to customers through professional technical
teams, spare parts preparation, remote monitoring, and technical support, and uses services to
empower manufacturing.
The company has been working hard in the industry for many years. Both the Fosber corrugated
cardboard production line brand and Dongfang Precision corrugated box printing equipment brand
have high visibility and brand influence in the industry, which helps the company obtain a premium
for brands, products and services from the market.
1.2.2 Procurement model
The company mainly purchases electrical components, standard parts, raw materials and auxiliary
materials from external suppliers; the core machining parts are produced by the company itself; the
equipment automation control program is developed by the company itself.
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1.2.3 Production model
The company adopts 90% of orders to organize production according to customer orders and 10%
according to market forecast orders. Through the combination of the two production modes, the
company can not only better meet the customer's order needs, but also adjust the production rhythm
through reasonable warehouse regulation to ensure that the company can respond in a timely
manner and meet customer needs.
1.2.4 Sales model
The company mainly adopts the direct sales model in the domestic market, and adopts the direct
sales plus channel agent sales model in the foreign market to carry out business sales.
From the perspective of payment and settlement methods, the company is a professional equipment
supplier and has a high brand awareness in the industry. Both domestic and foreign corrugated box
printing equipment sales adopts the payment and settlement method of the customer first prepay,
pay another part when delivery, and pay for the remaining part after installation and commissioning.
From the perspective of product form, the company simultaneously sells the whole machine
and the sales of accessories and services, each of which has its own value. The whole machine is a
one-time sale with a large single amount; accessories and services can be sold repeatedly in the life
cycle of the whole machine, with a higher gross profit margin. The increasing market share of the
company's machine products has led to a rigid increase in the demand for accessories and services;
at the same time, high-quality after-sales service in turn promotes the sales of machine products.
The two complement each other and achieve mutual success, driving the continuous growth of the
company's overall business.
1.3 Key performance drivers
1.3.1 The overall market scale of the downstream industry is growing steadily, which provides
a strong support for the demand for corrugated carton packaging equipment.
The downstream industry of the company's intelligent packaging equipment business is the
corrugated box production industry, and the downstream end customers of the corrugated box
industry are electronic products, food and beverage, express delivery, home appliances and other
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major consumer industries.With the rapid development of online shopping, express delivery and
other industries, the continuous improvement of environmental standards, the international
advocacy of circular economy, the domestic market demand for carton packaging products
represented by corrugated carton packaging has steadily increased.
Online consumption has become one of the main daily consumption patterns of domestic
consumers. The growth of the express delivery industry, which provides logistics and transport
services for online consumption, is an important driver of the growth of the corrugated packaging
industry. According to the data of "China Paper", in 2018, the top three downstream areas of
corrugated packaging in China were electronic products (accounting for 26.0%), beverages
(accounting for 21.2%), food (accounting for 20.3%); express industry Currently only 13%.
The domestic health security incident in 2020 has accelerated the development of many fields, and
online retail is a very representative field. With the rapid development of emerging consumption
models, China's express delivery industry has also entered a period of rapid development.
According to data from the State Post Bureau, China's express delivery volume exceeded 40 billion
in 2017; China's express delivery volume exceeded 50 billion in 2018; in 2019, the nationwide
express delivery service business volume totaled 63.52 billion, a year-on-year increase of 25.3%.
According to the "13th Five-Year" development indicators of the express delivery industry, China's
express delivery volume will reach the goal of 75 billion pieces in 2020, and the express delivery
per capita will increase from 0.01 in 2000 to about 50 pieces in 2020. The average annual
compound growth rate of express delivery volume from 2008 to 2020 reached 38.5%.The rapid
development of China's express delivery industry has prompted the market size of the express
packaging industry to continue to rise. In 2018, the express corrugated packaging market reached 33
billion yuan.
2013-2018 China Express Corrugated Packaging Market Size and Growth
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Data source: China Paper Association
Under the background of consumption upgrade, industrial upgrade drive and service industry
leadership, with the increase in the richness of express service application scenarios, the deepening
of the depth of embedded production and life, and the expansion of the industry involved, the
express industry has great potential and space for development. According to the forecast of the
Prospective Industry Research Institute, the scale of China's express delivery corrugated paper
market will continue to increase in 2020-2025, and is expected to reach 86.4 billion yuan in 2025.
Compared with developed countries such as Japan and the United States, that figure for per capita
consumption of corrugated packaging in China is still relatively small. According to the data in
2017, the per capita consumption of corrugated paper packaging in China is 50.8 square meters per
person, compared with 108.5 square meters per person in the United States and 110.6 square meters
per person in Japan. That figure in China has a broad space for improvement, which has the
potential to be almost doubled.
Comparison of Per Capita Consumption of Corrugated Packaging
From 2012 to 2017 (square meters / person)
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Data source: International Corrugated Case Association (ICCA), Wind Consulting
1.3.2 With the increase of market concentration brought about by the change of industry
market competition pattern, the market share of head enterprises will continue to increase.
In recent years, due to factors such as supply-side reforms, stricter environmental protection, and
high labor and raw material costs, SMEs in the corrugated box packaging industry have accelerated
their elimination, and the development trend of increasing market share of large enterprises is
becoming increasingly clear. The number of enterprises above designated size in the paper and
cardboard container manufacturing industry (industrial corporations with an annual operating
income of more than 20 million) decreased from 2,696 in 2013 to 2,391 in 2018, and the industry
consolidation trend is obvious.
Data show that since 2016, the capacity utilization rate of the company's product downstream
customer industry leading companies (Nine Dragons Paper, Shanying Paper, etc.) has continued to
increase to more than 90%, and industry production capacity has actually accelerated to concentrate
on leading companies. However, compared with the market share of CR5 of 40% to 70% in Europe
and the United States and other countries, the domestic corrugated box factory industry CR5 is less
than 10%, and there is still much room for improvement in the industry concentration.
2017 CR5 international comparison of corrugated packaging industry
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Data source: Frost & Sullivan, Wind Consulting
In recent years, China’s demographic dividend has gradually disappeared, labor costs have
continued to rise, and supply-side reforms, restricted industrial produciton due to stricter
environmental protection, industrial upgrades, and centralized industrial production capacity have
gradually become the trend, end customers have placed increasingly higher requirements on the
quality, delivery speed, and cost-effectiveness of corrugated packaging products. Large-scale carton
factories prefer to purchase medium-to-high-end corrugated cardboard intelligent packaging
production lines based on considerations such as high efficiency, high quality, cost reduction,
environmental protection and energy saving.
Market demand will promote the upgrading of industry technology and equipment, and accelerate
the integration of the industry. This trend will be transmitted to corrugated board manufacturing
equipment and corrugated board printing equipment, accelerating the increase of industry
concentration in the equipment industry, and eliminating outdated equipment manufacturers with
low technological content and low production efficiency. In addition, as the number of equipment in
stock in the industry market has increased, the downstream customer's demand for equipment spare
parts and technical support is increasing. The proportion of spare parts sales and technical support
services in the company's business structure increases, and its higher gross profit margin will drive
the company's overall gross profit margin.
2. Outboard motor business
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The main body of the company's outboard motor business is Parsun Power. Parsun Power is a
high-tech enterprise focused on providing high-quality, cost-effective watercraft power equipment
for the global market, and is currently the largest manufacturer of outboard motor products in
China.
2.1 Main products and uses
Parsun Power's main products are outboard motors, which mainly include four-stroke, two-stroke,
electric and special-purpose water-jet propulsion outboard motors. There are currently more than 20
categories and more than 200 models, of which four-stroke covers 2.6 horsepower -115 horsepower,
two strokes cover a full range of 2hp-90hp outboard motors. It is the manufacturer with the most
complete models and the largest power range among domestic brands. Some models have maturely
used EFI technology, and the product performance indicators have reached the international
advanced level and can meeet the needs of high-end customers in Europe and America. In addition,
Parsun Power continues to develop new products with higher horsepower outboard motors, so as to
break the monopoly of foreign outboard motors on medium-horsepower outboard motors.
All outboard motor products of Parsun Power are independently developed. The company has
passed the ISO9001 quality management system certification and ISO14001 environmental
management system certification. The products have passed the EU CE certification, the US EPA
certification, and the CCS certification of the authoritative unit China Classification Society. The
company is also the first drafting unit of the domestic outboard engine industry standard "Technical
Conditions for Outboard Engine Gasoline Engines" (JB/T11875-2014).
Outboard motors can be widely used in leisure and entertainment industries (yachts, speedboats,
etc.), maritime patrols (patrol boats, etc.), military uses (assault boats, landing craft), fishing, and
water transportation.
Schematic diagram of outboard motor products
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2.2 Main business model
Parsun Power's outboard motor business adopts the "design R&D + production + sales" business
model, and implements a "differentiation + cost-leading" business strategy, and adopts a direct sales
plus channel agent sales model to carry out business sales.
Parsun Power can independently develop and produce various types of outboard motor products,
and focus on small and medium horsepower outboard motor products. At the same time, it can
make full use of the domestic perfect manufacturing industry chain and its own production
experience to provide customers with cost-effective watercraft power equipment to seize the
market.
2.3 Key performance drivers
With economic development and growth in per capita income, emerging markets such as Asia,
Africa, Oceania, and Latin America (especially China) will gradually become the main incremental
markets for outboard motors and their applications. In addition, various specialized markets (such
as emergency rescue, military) also have huge market potential in the future.
Parsun Power will continue to increase investment in the research and development of new products
for high-power outboard engines and continue to launch new products that can meet the needs of
market customers.
The continuous growth of the demand for outboard engines in the industry market, and Parsun
Power continues to improve its own capacity and launch high-horsepower outboard engine products
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with independent intellectual property rights to meet the needs of the market, which are the main
performance drivers for the development of Parsun Power's main business.
II. Major changes in major assets
1. Major changes in main assets
Major assets Major changes indication
The balance of equity assets increased by 10.72% over the end of last year, mainly due to
Equity assets
a 1% increase in the company's shareholding in Jiateng Robot in the current period.
Fixed assets No significant change.
The balance of intangible assets increased by 27.15% over the end of last year, mainly
Intangible assets
due to the acquisition of Agnati assets by Fosber Group in the current period.
The balance of projects under construction increased by 163.17% over the end of last
Project under construction
year, mainly due to the new production equipment of Fosber Group in the current period
The balance of transactional financial assets increased by 28.34% over the end of last
Transactional financial assets year, mainly due to the addition of bank wealth management products in the current
period.
The balance of advance payment increased by 107.25% over the end of last year, mainly
Advance payment due to the increase in payments for the purchase of raw materials in the current period.
The inventory balance increased by 24.88% over the end of last year, mainly due to
Inventory
delays in production due to the epidemic.
The balance of other current assets increased by 438.50% over the end of last year,
Other current assets
mainly due to the advance payment of enterprise income tax by the parent company.
2. Main overseas assets
√ Applicable □ Not applicable
The
Whether
Control proportion of
there is a
Asset specific Cause of Operating measures to overseas
Asset size Location Income status significant
content formation model ensure asset assets in the
risk of
security company's
impairment
net assets
Holds 100% M & A 1,465,492,26 Produce and Operation
Italy Good 11.35% NO
equity of investment 4.73 market all by management
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Fosber S.p.A. oneself
Holds 100% Produce and
M &A 162,315,494. Operation
equity of Italy market all by Good 0.86% NO
investment 70 management
Italy EDF oneself
III.Analysis of core competitiveness
1. Comprehensive industrial chain layout, providing overall solutions
Dongfang Precision is one of the global leaders in the field of intelligent corrugated box packaging
equipment. It has a full industry chain layout within the industry and has the ability to provide
high-end intelligent corrugated box packaging equipment solutions.
Dongfang Precision undertakes corrugated board production line and unit equipment business
through its subsidiaries Fosber Group, Fosber Asia, Fosber US and Italy QCorr; undertakes
corrugated box printing production line business through Dongfang Precision (China) and
Dongfang Precision (Europe); through joint stock company Jiateng Robot to lay out an automated
logistics system business.
Schematic diagram of the overall solution of the company's intelligent corrugated packaging equipment
2. Stable, reliable and technologically advanced products
The company's intelligent packaging business segment's corrugated box printing complete
production line has leading design concepts, highly integrated functions, high degree of automation,
and advanced overall performance. Leading competitors in terms of overall performance and
product cost performance such as operating stability and life, printing quality, printing efficiency,
overprint accuracy, and printing width.
Fosber Group, under the company's Intelligent Packaging Equipment segment, focuses on
corrugated cardboard production lines and equipment. It is an important high-end corrugated
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cardboard production line manufacturer in the European and American markets. It is one of the
world's two largest companies in the field of high-speed wide-width corrugated cardboard
production lines . Its simple equipment design, stable performance, low failure rate, and high degree
of intelligence have the characteristics of design leadership, high degree of mechanical and
electrical integration, energy saving and environmental protection, and is in a leading position in the
industry in Europe and North America.
3. Industry-leading industrial internet technologies and services
The subsidiary Fosber Group actively implemented the Industry 4.0 model. Industry 4.0 is
based on computerization and network connection, and uses big data and algorithms as means to
realize the self-learning and intelligent production of machines. The machine's self-learning and
intelligent production are divided into four stages: visualization stage (intelligent identification
problem), transparency stage (intelligent analysis problem), prediction stage (intelligent prediction
problem trend), and adaptive stage (artificial intelligence provides solutions). At present, Fosber has
completed the functional design of the above four stages.
Schematic diagram of Fosber Group's stage in the application of Industry 4.0 technology
By combining traditional corrugated cardboard production equipment with advanced artificial
intelligence, virtual reality, 3D simulation and other technologies, Fosber Group has developed
intelligent systems such as Pro Care and Pro Syncro to realize the operation of the entire production
line and individual equipment Intelligent monitoring and control. Based on the application of
intelligent manufacturing in the corrugated cardboard production line, Fosber Group realizes
intelligent diagnosis, automatic production planning and management equipment maintenance by
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automatically analyzing the collected machine operation data.
Fosber Group remotely helps customers monitor the running status of equipment and machines in
real time. It can detect the operating parameters obtained through the remote control service before
the customer finds the problem, detect and predict possible problems in advance, contact the
customer in advance, and then provide customers with more efficient and better technical support
services.
4. International brand competitiveness and industry influence
Dongfang Precision's intelligent packaging equipment products have considerable brand awareness
and industry influence through its precise product positioning and stable product quality. Its
Dongfang Precision corrugated box printing equipment, Fosber, Tiruna, etc., among which
Dongfang Precision corrugated box printing equipment are domestic first-line brand in the industry,
which enjoys a high reputation in the relevant global market; the Fosber brand is one of the leading
brands in the global corrugated board production line industry; the Tiruna brand also has
considerable visibility and influence in the corrugated roller segment.
The company's intelligent packaging equipment products are well-known in the industry for high
performance, high stability and reliability. At the same time, the service-based manufacturing
model based on intelligent manufacturing brings high-quality technical support and after-sales
service to customers, allowing the company's products to obtain better brand premium.
5. High-quality customer resources and solid strategic cooperation relations help the
company's sustainable development
Dongfang Precision's smart corrugated box packaging equipment business adheres to the market
positioning for mid- to high-end customers. As the business model develops from a single product
manufacturing to an integrated overall solution provider model, end customers have placed higher
and stricter requirements on product quality, timeliness of delivery, and sustainability of long-term
cooperation. The company continues to increase R & D and innovation efforts to improve the
quality of products and services, so as to establish a long-term and stable strategic cooperative
relationship with well-known domestic and foreign brands.
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In the "smart packaging equipment" business area, the company focused on specialization,
implemented solution delivery, and realized a differentiated competitive strategy, and established a
close and stable cooperative partnership with major domestic and foreign customers and large
groups such as Hexing Packaging Printing, UCPS, Shanying Paper, Xintonglian Packing, Shengda
Packaging, Zhengye International, International Paper, Smurfit Kappa, Mpact, Modern, and Orora.
6. The management team with rich management experience and professional technical talent
team lays the foundation for the stable development of the company
Dongfang Precision has an experienced management team with rich industry accumulation and a
deep understanding of the company's product development, design, and manufacturing. The
experienced and broad management team enables the company to have forward-looking
deployments in the global economic operating cycle and the overall development trend of the
intelligent packaging equipment manufacturing industry.
At the same time, Dongfang Precision is a company with standardized operation and stable
operation. It has been strengthened through a variety of methods (including core senior management
team building, organizational structure design, management and control system, financial
management system, leadership, mid- and long-term incentives, corporate culture construction, etc.)
The construction and upgrading of the company's organizational capabilities, continue to improve
the management capabilities, resource integration capabilities of various functional departments and
the ability to help subsidiaries' businesses, and improve the company's overall management and
operational efficiency.
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Section 4 Discussion and Analysis of Business Situation
I. Overview
The global economy is facing the severe test brought by COVID-19 epidemic in the first half of
2020, and the spread of the epidemic has adversely affected the normal development of the business
activities of most enterprises in the global manufacturing industry. Since the second quarter, with
the effective control of the domestic epidemic, China's manufacturing industry has resumed work
and production in an orderly manner, and market supply and demand have recovered in an all-round
way. The printing and packaging industry at home and abroad has also been obviously affected by
the epidemic. With the domestic economic growth back on track, the domestic printing and
packaging industry has gradually stepped out of the shadow of the epidemic and gradually
recovered.
Under the leadership of the board of directors and management team, Dongfang Precision paid
close attention to the epidemic situation and resumed work steadily in the first half of 2020,
basically realizing the resumption of domestic business by the end of February, and actively
supporting the anti-epidemic work of foreign subsidiaries. In May, it realized the resumption of
work and production of all the business entities at home and abroad under the group.
In the face of the complex and changeable domestic and foreign environment under the epidemic,
and the catalytic acceleration of the epidemic on the unmanned, digital and intelligent progress of
the manufacturing industry, the company's management team actively thought about and actively
sought change, adhered to the strategy of "intelligent manufacturing" as the strategic vision and
business core strategy, while tamping internal efforts and continuously improving the company's
operational efficiency. At the same time, efforts were made to promote the transformation of
high-end smart equipment business to digital and intelligent direction.
In the first half of 2020, the company realized the operating income of the consolidated statement of
about 1.1774912 billion yuan, and realized the net profit of about 127.1985 million yuan belonging
to the shareholders of the listed company.
Considering that Pride is included in the company's consolidated financial statements in the first
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half of 2019 and is no longer included in the company's consolidated financial statements for the
reporting period, and Dongfang Precision’s main business is focused on high-end smart equipment.
In order to more accurately reflect the changes in the operating performance of the company's main
business in the first half of 2020 compared with the same period last year, and to ensure that the
revenue and profit data are comparable, we compare the revenue and profit data for the reporting
period with the data excluding Pride in the same period last year, as shown in the following table:
Unit: ten thousand yuan
January to June January to June 2019 Change
2020 (excluding Pride) ratio
Operating income 117,749.12 119,429.44 -1.41%
Net profit belonging to shareholders of the listed 12,719.85 11,776.10 8.01%
company
From January to June 2020, the company's operating income decreased by 1.41% compared with
the comparable adjustment in the same period last year, mainly due to the delay in the shipment and
delivery of some orders caused by COVID-19 epidemic. The company has actively taken measures
to reduce the impact of the epidemic on the main business, maintain stable income while improving
operational efficiency, rationally use its own funds for cash management, and increase the rate of
return on net assets. The company's net profit belonging to shareholders of the listed company in the first
half of 2020 increased by about 8.01% compared with the comparable net profit adjusted for the
same period last year.
The main work achievements in the the first half of 2020 are as follows:
(Ⅰ) Multiple measures should be taken to actively respond to external changes and keep the
income of the main business stable.
In the first half of 2020, the company focused on the core business of "high-end smart equipment",
took many measures to actively respond to changes in the external business environment, and
achieved the steady development of the main business.
In the corrugated board production line business, the wholly-owned subsidiary Fosber Group
achieved operating income of about 100 million euros during the reporting period, basically the
same as the same period last year. In the first half of the year, Fosber Group completed the
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acquisition and holding of 60% of the business assets related to Italian corrugated board line
manufacturer Agnati. Through this acquisition, Fosber Group obtained the business covering the
whole value chain of Italy QCorr high-speed intelligent corrugated board production line, related
customer resources, brands, intellectual property rights, and technical support services for the stock
corrugated board production line sold by Agnati, and developed the ability to provide the world's
leading high-speed intelligent corrugated board production line. Fosber Group also added 5
invention patents in the first half of the year, continuously improved and optimized the algorithm of
PRO series intelligent production management information system, and added new modules and
functions. Fosber Asia, a joint venture company, strengthened its development of target customers
in the domestic market in the first half of the year, increased new orders over the same period last
year, and basically realized the localization of Pro-line products for high-end customers in the Asian
market.
In the business of corrugated box printing production line, the revenue of Dongfang Precision
(China) increased by about 15% year-on-year during the reporting period; based on a stable team
and continuously optimized internal processes, order delivery efficiency increased by about 20%
compared with the same period last year. During the reporting period, the operating income of
Dongfang Precision (Europe) increased steadily compared with the same period last year, and the
amount of new orders has met the target for the whole year.
In terms of power equipment business, the subsidiary Parsun Power continued to strengthen the
development of the domestic outboard engine market, with sales revenue from the domestic market
increasing by about 15% in the first half of the year compared with the same period last year; and
continued to promote the research and development of high-power outboard engines and the
development of the outboard military market. Benefitting from the rapid economic recovery after
the epidemic has been brought under control, Parsun Power's petrol generator and water pump
revenue increased by 26.5% compared with the same period last year.
(Ⅱ) Transform to Intelligent Manufacturing to Promote the Upgrading of "Intelligent Factories" in
the Printing and Packaging Industry.
Under the impact of the COVID-19, we found that some key positions in the printing and packaging
industry were over-reliant on the skills of skilled workers, traditional management models, and
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some processes were still labor-intensive, which has become the main obstacle for enterprises to
work resumption and production. The understanding of "machine replacement" and "intelligent
factory" in the post-epidemic era is more deeply rooted in the printing and packaging industry, and
enterprises in the industry may speed up the pace of intelligent construction.
Intelligent factory is a factory with the main characteristics of intelligent design, intelligent
production, intelligent management, intelligent logistics and integrated optimization on the basis of
digitalization, supported by industrial big data and Internet. In traditional industrial production,
production efficiency and the quality of finished products are restricted by many factors, such as
manpower, skills, and proficiency. In order to promote the manufacturing accuracy, reliability,
consistency and production efficiency to a new height to meet the upgrading production needs, the
transformation to automation, digitization and intelligence has become the consensus of the
manufacturing industry and gradually accelerate the implementation.
For the printing and packaging industry, intelligent factory is a system engineering with
digitalization and intelligence as the core and hardware and software construction as the important
content, which represents a leap from traditional automatic production to data interconnection, AI
independent learning and decision-making, and flexible production.
Since the beginning of the year, Dongfang Precision has made great efforts to promote the
transformation of the company's corrugated printing and packaging equipment business to become
digital and intelligent. On the basis of the complete hardware layout of corrugated printing and
packaging equipment, the successful practice of production information management system, and
the extended layout in the field of intelligent logistics, it has accelerated the integration of internal
and external resources, enhanced intelligent capacity building, and provided intelligent
manufacturing solutions for customers in the printing and packaging industry, so as to be committed
to becoming a "smart factory" solution and business model supplier in the printing and packaging
industry. In July 2020, Dongfang Precision and Yunyin Technology (Shenzhen) Co., Ltd., a holding
subsidiary of Shanying International Holding Co., Ltd., signed a "Strategic Cooperation
Agreement" to create an intelligent factory model and jointly promote the digital transformation and
upgrading of the printing and packaging industry.
1. Complete layout of corrugated printing and packaging equipment industry chain.
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After listing, Dongfang Precision has carried out vertical expansion along the subdivision industry
chain of corrugated printing and packaging, and its main business has been expanded from
complete sets of corrugated box printing equipment at the beginning of listing to including
corrugated rollers, corrugated board production line, corrugated box automatic printing line and
stand-alone products, prepress and postpress fully automatic equipment covering corrugated
production, printing, die-cutting, sticky box, packaging and other complete production and
processing chain necessary production equipment.
The integrity of the layout of Dongfang Precision industry chain is mainly reflected in two aspects:
(1) The layout of the whole industry chain covers all aspects of corrugated printing and packaging
production lines and equipment, and basically completes the omni-directional layout of equipment
products on the corrugated printing and packaging equipment industry chain. It owns Tiruna
corrugated roller - Fosber corrugated board production line - Agnati/Italy QCorr high-end
corrugated board production line - Dongfang Precision corrugated box automatic printing line and
stand-alone products - Dongfang Precision Europe’s corrugated box printing equipment and
automatic prepress and postpress equipment - Jiateng robot AGV and other products.
(2) Dongfang Precision has the most complete and abundant product library of product
specifications and market positioning in the industry. For example, in the field of corrugated box
printing equipment segmentation, Dongfang Precision can provide up and down printing，altogether
a total of 26 different specifications, different market positioning products, far more than
competitors, and can fully meet the needs of different types of customers.
2. Successful practice of production information management system
The foundation and core of intelligent factory is an intelligent production system composed of ERP,
MES, WMS, SCADA, APS and other information systems, in which the production process
execution system (MES) is a set of production information management system for production
execution. It can provide functions and modules including production process control,
manufacturing data management, planning and scheduling management, production scheduling
management, inventory management, quality management, cost management, project Kanban
management and so on, so as to optimize the production activities from order to product completion
in the whole workshop manufacturing process.
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Dongfang Precision's corrugated board production line and corrugated box printing machine
business have relatively mature practice in the production information management system:
(1) The subsidiary Fosber Group integrates intelligent sensing, AI, VR, 3D modeling technology,
and years of accumulated corrugated board production line development, operation, technical
support and other data combined with the development, operation, technical support and other
aspects of the PRO series intelligent production management information system, can dock with
customer ERP to achieve ERP scheduling; docking customer warehouse management system to
achieve intelligent inventory management and warehousing logistics control. Through more than
200 sensors installed on the corrugated board production line, it can realize real-time monitoring of
the production data of the corrugated board production line, real-time monitoring and Kanban
management of the production process, and can carry out production line performance analysis and
cost analysis based on data to provide support for customer production decisions. According to the
real-time collected production data and the setting of the program algorithm, it can identify the
abnormal production data in real time, make the automatic diagnosis, and automatically retrieve and
output the solution in the database. The safe storage and transmission of data are realized through
dedicated cloud servers and firewalls, and the real-time monitoring and remote control of the
equipment are realized through the remote control system. It can not only effectively reduce the
over-dependence on some processes or some personnel in the production process, but also improve
production efficiency and ensure the quality of finished products.
Working schematic diagram of PRO series intelligent
production management information system of Fosber Group
(2) Dongfang Precision (China) Press Business independently developed corrugated box printing
machine production information management system, which can achieve ERP scheduling,
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intelligent material preparation management, automatic deposit order adjustment setting the best
parameters, production data collection, real-time production Kanban management, production
performance management, cost analysis, quality traceability, equipment fault management, remote
order management and other functions.
By optimizing the whole production process from the order to the completion of the product, the
low value-added activities within the enterprise are reduced, and the intelligent, automatic and
standardized production management of the corrugated box printing production line is realized. We
can organically combine the production process, massive data of production equipment and
algorithm analysis and processing, simplify the operation difficulty of the printing press and reduce
the dependence on labor, improve effective production time, reduce material consumption, achieve
lean production so as to meet customer cost reduction, efficient and flexible production needs.
Functional schematic diagram of production information management system for
Dongfang Precision corrugated box printing press
3. Extended layout in the field of intelligent logistics.
Intelligent logistics is also a key part of intelligent manufacturing. In intelligent factory mode,
materials are automatically sent in and out of warehouse, sorted and distributed by connecting MES
and AGV, with WMS and WCS, real-time data sharing with MES is realized, intelligent inventory
management is realized so as to provide effective support for purchasing planning and production
execution.
Dongfang Precision acquired 20% equity in Jiateng Robot in 2014, laying out the field of intelligent
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logistics. Jiateng Robot focuses on the R & D and sales of AGV and intelligent material distribution
solutions and has launched 6 generations of AGV, thus becoming the leading provider of AGV and
intelligent material distribution solutions in China. The core competitiveness of Jiateng Robot lies
in the use of embedded computer main control hardware system and powerful logistics software
system, including AGV central scheduling system, WMS and WCS.
After years of resource integration and R & D, the company has accumulated rich experience in the
field of integrated solutions of "packaging-intelligent logistics". With the maturity and landing of
the intelligent factory, the demand for the follow-up logistics automation equipment of the
production line increases, the company will gradually be more advantageous in advance layout in
the field of intelligent logistics.
(Ⅲ) Launch an stock incentive plan to lay the foundation for sustainable development in the future.
In order to improve the company's long-term incentive mechanism, fully mobilize the enthusiasm of
managers at all levels and core backbone of the company, effectively promote the long-term
development of the company, and achieve the goal of "stabilizing the team, boosting morale,
gathering talents and improving performance", the company launched the 2020 restricted stock
incentive plan in the first quarter of 2020, with 27 million A shares repurchased from the secondary
market as incentive shares, of which, 22.6 million shares were awarded for the first time,
accounting for 1.46% of the total share capital. The grant price of restricted stock is 1 yuan per
share. The total number of incentive recipients for the first grant is 40, including directors, senior
managers and core technical (business) personnel who served in the company and Dongfang
Precision wholly-owned and holding subsidiaries. The payment, capital verification and grant
registration of some restricted shares for the first time was completed in June 2020. The
implementation of the above stock incentive plan will help to eliminate the negative impact of the
previous Pride event on the company's team and lay the foundation for the healthy and sustainable
development of the company in the future and also helps the deep binding of the self-interests of the
core backbone personnel of the company with the future performance growth of the company and
the improvement of the return ability of shareholders, which is conducive to the improvement of the
company's business performance and value creation ability.
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(Ⅳ) Launch a share buyback plan for 2020 to stabilize the long-term value expectation of the
company's shares.
On June 14, 2020, the company's board of directors received a share buyback proposal and an
interim general meeting proposal submitted in writing to the company's board of directors by
shareholders Ruan Huili and Ruan Weixing, who held more than 3% of the shares. After the
resolution of the company's third interim shareholders' meeting in 2020, The motion on the proposal
of shareholders Ruan Huili and Ruan Weixing to buy back shares and buy back part of the
company's shares by centralized bidding was adopted.
Based on the confidence in the company's future development prospects and the high recognition of
the company's value, on the basis of comprehensive consideration of the company's operating
situation, main business development prospects, the company's financial situation and future
profitability, and in order to safeguard the interests of the broad masses of investors and enhance
investor confidence, the company intends to use its own funds, raised funds that have been legally
changed to permanently replenish current funds and loans from financial institutions etc. to
implement centralized bidding transactions to repurchase part of the company's A shares of RMB
common shares (hereinafter referred to as " the repurchase of shares in 2020").
The total amount of funds to be used for the repurchase of shares in 2020 shall not be less than 500
million yuan (inclusive), no more than 1 billion yuan (inclusive), and the repurchase price shall not
exceed 6.42 yuan per share. All the repurchased shares in 2020 will be used for write-off, reducing
the company's registered capital. The implementation period shall be within 12 months from the
date of examination and approval by the shareholders' meeting.
As of the date of disclosure of this report, the company has implemented the repurchase of shares in
2020 through centralized bidding transactions, with a total of 37,531,131 shares of the company,
accounting for 2.43% of the company's total share capital, with a maximum transaction price of
5.10 yuan per share and a minimum transaction price of 4.72 yuan per share. The total amount paid
is about 185 million yuan (excluding transaction fees). The implementation of the repurchase of
shares in 2020 is in line with the established plan, and the company will continue to promote the
repurchase of shares in 2020.
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Full text of Guangdong Dongfang Precision Science&Technology Co., Ltd. Semi-annual Report 2020
II. Main business analysis
Overview
See "1. Overview" in "Discussion and Analysis of Business Situation".
Year-on-year changes in major financial data
Unit: yuan
Same period last Year-on-year
This reporting period Cause of change
year increase or decrease
The consolidated statement of the same period
of last year mainly includes the data of Pride
Operating income 1,177,491,225.13 4,391,349,294.89 -73.19% from January to June of 2019. If the impact of
Pride's data is excluded, the year-on-year
decline is 1.41%.
The consolidated statement of the same period
of last year mainly includes the data of Pride
Operating cost 841,826,823.84 3,696,850,553.46 -77.23% from January to June of 2019. If the impact of
Pride's data is excluded, the year-on-year
decline is 1.01%.
The consolidated statement of the same period
of last year mainly includes the data of Pride
Selling expenses 91,295,589.80 194,155,656.79 -52.98% from January to June of 2019. The scope of
consolidated statements for this reporting
period does not include Pride.
The consolidated statement of the same period
of last year mainly includes the data of Pride
Administrative
122,309,575.89 151,165,409.76 -19.09% from January to June of 2019. The scope of the
expenses
consolidated statements for this reporting
period does not include Pride.
The consolidated statement of the same period
of last year mainly includes the data of Pride
from January to June of 2019. If the impact of
Financial expenses -1,734,518.18 12,913,761.69 -113.43% Pride's data is excluded, the expense of the
same period of last year is 3.19 million yuan.
The income of this period is mainly caused by
the increase of deposit interest income.
The main reason is that the consolidated
Income tax statement of the same period last year includes
5,642,310.00 65,188,292.02 -91.34%
expenses the data of Pride from January to June 2019. If
the impact of Pride data is excluded, the
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Full text of Guangdong Dongfang Precision Science&Technology Co., Ltd. Semi-annual Report 2020
year-on-year decrease will be 22.91 million
yuan, which is mainly caused by the
year-on-year decrease of income tax of Fosber
group in the current period.
The consolidated statement of the same period
of last year mainly includes the data of Pride
R&D investments 41,336,617.90 64,108,287.55 -35.52% from January to June of 2019. If the impact of
Pride data is excluded, the year-on-year
increase will be 10.92 million yuan.
The main reason is that the scope of the
consolidated statement for the same period last
year includes Pride's data from January to June
2019. If the influence of Pride's data is
excluded, the net operating cash flow
Net cash flow decreases by 31.17 million yuan compared
from operating 29,409,409.32 1,419,240,751.97 -97.93% with the same period last year, mainly due to
activities the prepaid enterprise income tax paid by the
parent company. After the completion of the
enterprise income tax settlement and payment,
the tax authorities have returned about 88.46
million yuan of prepaid tax to the parent
company in July 2020.
This is mainly due to the difference between
Net cash flow the amount invested and the amount recovered
from investment -384,795,059.32 -848,080,051.65 -54.63% from the purchase of wealth management
activities products in this period, which is lower than
that in the same period last year.
The scope of the consolidated statements for
Net cash flow
the same period last year mainly includes
from fund-rasing -357,317,673.55 -1,566,139,069.07 -77.18%
Pride's data for the period from January to
activities
June 2019.
Net increase in It is mainly caused by the cash flow of
cash and cash -707,708,887.51 -985,768,719.59 -28.21% investment activities and fund-raising
equivalents activities.
Significant changes in the composition or source of profits during the reporting period.
□ applicable √ Not applicable
There is no significant change in the composition or source of profits during the reporting period.
Operating income composition
Unit: yuan
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Full text of Guangdong Dongfang Precision Science&Technology Co., Ltd. Semi-annual Report 2020
This reporting period Same period last year
Proportion Year-on-year
of increase or
Amount Proportion of operating income Amount
operating decrease
income
Total operating
1,177,491,225.13 100% 4,391,349,294.89 100% -73.19%
income
By industry
Automobile
0.00% 3,197,054,934.89 72.80% -100.00%
parts
High-end
smart 1,177,491,225.13 100.00% 1,194,294,360.00 27.20% -1.41%
equipment
By product
Intelligent
packaging
equipment 626,162,720.18 53.17% 717,972,353.27 16.35% -12.79%
whole line and
single machine
Intelligent
packaging
302,586,619.85 25.70% 249,049,329.02 5.67% 21.50%
equipment
accessories
Intelligent
packaging
equipment 100,749,743.45 8.56% 81,712,552.92 1.86% 23.30%
software and
services
Power
147,992,141.65 12.57% 145,560,124.79 3.31% 1.67%
equipment
Power battery
0.00% 3,197,054,934.89 72.81% -100.00%
system
By region
Domestic 101,481,252.35 8.62% 3,336,894,840.72 75.99% -96.96%
Overseas 1,076,009,972.78 91.38% 1,054,454,454.17 24.01% 2.04%
Industry, product or region that accounts for more than 10% of the company's operating income or operating profit
√ Applicable □ Not applicable
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Unit: yuan
Operating income Operating cost Gross margin
increased or increased or increased or
decreased decreased decreased
Operating income Operating cost Gross margin
compared with compared with compared with
the same period the same period the same period
of last year of last year of last year
By industry
Automobile parts -100.00% -100.00%
High-end smart
1,177,491,225.13 841,826,823.84 28.51% -1.41% -1.01% -0.28%
equipment
By product
Power battery
-100.00% -100.00%
system
Intelligent
packaging 1,029,499,083.48 728,630,903.95 29.22% -3.27% -1.93% 0.07%
equipment
Power equipment 147,992,141.65 113,195,919.89 23.51% 2.35% 5.33% -2.66%
By region
Domestic 101,481,252.35 71,981,996.31 29.07% -96.96% -97.60% 19.10%
Overseas 1,076,009,972.78 769,844,827.53 28.45% 2.04% 9.64% -4.96%
When the statistical caliber of the company's main business data is adjusted in the reporting period, the company's last issue of the
main business data is adjusted according to the caliber at the end of the reporting period.
□ Applicable √ Not applicable
Explanation of the reason why the relevant data have changed by more than 30% year-on-year.
√ Applicable □ Not applicable
The company transferred 100% of Pride's equity in December 2019, and the year-on-year change of more than 30% of the relevant
data in the first half of 2020 was mainly due to the change in the scope of the consolidated statement and the non-merger of Pride.
III. Analysis of non-main Business
√ Applicable □ Not applicable
Unit: yuan
The percentage in Explanation of the reason for
Amount Is it sustainable?
total profits its formation
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Full text of Guangdong Dongfang Precision Science&Technology Co., Ltd. Semi-annual Report 2020
It mainly refers to the income
of bank wealth management
Income from products and the income
32,724,984.33 24.77% NO
investment recognized to the associated
enterprise under the equity
law.
It is mainly related to the
Fair value changes
13,309,111.52 10.07% income of bank wealth NO
in profit and loss
management products.
It is mainly due to the
Asset impairment -2,978,396.97 -2.25% Inventory provision for NO
depreciation
Non-operating
176,776.93 0.13% No major changes. NO
income
It is mainly caused by
Non-operating outward donation,
1,464,849.29 1.11% NO
expenses sponsorship expenditure and
so on.
IV. Analysis of assets and liabilities
1. Significant changes in the composition of assets
Unit: yuan
At the end of this reporting At the end of the same period The
period last year proportion
As a As a of
Description of major changes
percentage percentage increase
Amount Amount
of total of total and
assets assets decrease
It is mainly caused by the purchase of
Monetary funds 1,940,001,676.49 29.92% 2,356,703,434.60 37.57% -7.65%
financial products in this period.
Accounts
516,566,982.61 7.97% 597,431,210.02 9.52% -1.55% No significant change
receivable
Inventory 838,468,641.98 12.93% 671,432,701.11 10.70% 2.23% No significant change
Investment real
0.00%
estate
Long-term equity
80,128,138.10 1.24% 72,372,355.03 1.15% 0.09% No significant change
investment
Fixed assets 569,720,809.77 8.79% 585,754,900.75 9.34% -0.55% No significant change
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Project under
12,735,416.77 0.20% 4,839,241.48 0.08% 0.12% No significant change
construction
Short-term loan 82,888,933.77 1.28% 117,888,353.14 1.88% -0.60% No significant change
It is mainly due to the reclassification
of loans due within one year to
Long-term loan 49,092,928.25 0.76% 224,146,667.48 3.57% -2.81%
"non-current liabilities due within one
year".
It is mainly due to the increase in the
Transactional
1,493,920,592.25 23.04% 1,164,039,381.59 18.55% 4.49% purchase of financial products in this
financial assets
period.
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: yuan
Changes
Profit or loss Impairmen
in the
on changes in t accrued Other
Beginning cumulativ Current Current sale
Item fair value for during the change Final number
number e fair purchase amount amount
the current current s
value of
period period
equity
Financial
assets
1.Transactiona
l financial
assets
1,163,000,000.0 13,309,111.5 5,100,446,609.6 4,783,300,000.0 1,493,455,721.1
(excluding
0 2 0 0 2
derivative
financial
assets)
2.Derivative
financial
assets (funds, 1,039,381.59 574,510.46 464,871.13
trust products
and others).
Subtotal of
1,164,039,381.5 13,309,111.5 5,100,446,609.6 4,783,874,510.4 1,493,920,592.2
financial
9 2 0 6 5
assets
The above 1,164,039,381.5 13,309,111.5 5,100,446,609.6 4,783,874,510.4 1,493,920,592.2
total 9 2 0 6 5
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Financial
0.00 304,022.63 304,022.63
liabilities
Note:
The statistical caliber of "current purchase amount" and "current sales amount" of the transactional financial assets in the above table
are as follows: the cumulative amount of financial products purchased by the company during the reporting period and the
cumulative amount of financial products sold (or redeemed) during the reporting period. There is a situation in which a sum of
money is repeatedly used to buy, sell (or redeem) financial products during the reporting period. The maximum one-day balance of
the funds used by the company to purchase wealth management products during the reporting period can be found in the entrusted
financing section of XV. Major contracts and their performance in Section 5 Important Matters of this report.
Other changes
During the reporting period, has the company's main asset measurement attributes changed significantly
□ YES √ NO
3.At the end of the reporting period, asset rights are restricted
Item Book value at the end of the period Restricted cause
Monetary funds 420,985,826.61 Margin
Fixed assets 213,149,396.93 Loan mortgage
Intangible assets 50,379,689.01 Loan mortgage
In total 684,514,912.55 --------
V. Investment status analysis
1.Overall situation
√ Applicable □ Not applicable
Investment during the reporting period Investment amount in the same period of
Variation
(yuan) last year (yuan)
2,931,883,245.00 1,031,176,742.00 184.32%
2.Significant equity investment during the reporting period
□ Applicable √ Not applicable
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Full text of Guangdong Dongfang Precision Science&Technology Co., Ltd. Semi-annual Report 2020
3.The major non-equity investments in progress during the reporting period
□ Applicable √ Not applicable
4.Financial assets measured at fair value
√ Applicable □ Not applicable
Unit: yuan
Profit and
Accumulate
loss from Amount
Asset Initial d changes in Amount sold Cumulative Source
changes in purchased during Amount at the
fair value during the investment s of
type investment cost fair value in the reporting end of the period
included in reporting period income funds
the current period
equity
period
Own
Fund 245,830.68 0.00 100,000,000.00 100,245,830.68
funds
Trust
Own
product 3,527,397.26 0.00 500,000,000.00 1,609,589.04 503,527,397.26
funds
s
Raised
funds
1,164,039,381.5 4,500,446,609.6 4,783,874,510.4 30,991,624.2
Other 9,535,883.58 0.00 890,147,364.31 and
9 0 6 2
own
funds
1,164,039,381.5 13,309,111.5 5,100,446,609.6 4,783,874,510.4 32,601,213.2 1,493,920,592.2
In total 0.00 --
9 2 0 6 6 5
Note:
The statistical caliber of "current purchase amount" and "current sales amount" of the transactional financial assets in the above table
are as follows: the cumulative amount of financial products purchased by the company during the reporting period and the
cumulative amount of financial products sold (or redeemed) during the reporting period. There is a situation in which a sum of
money is repeatedly used to buy, sell (or redeem) financial products during the reporting period. The maximum one-day balance of
the funds used by the company to purchase wealth management products during the reporting period can be found in the entrusted
financing section of XV. Major contracts and their performance in Section 5 Important Matters of this report.
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Full text of Guangdong Dongfang Precision Science&Technology Co., Ltd. Semi-annual Report 2020
5. Investment in financial assets
(1) Securities investment
√ Applicable □ Not applicable
Chang
Profit or
es in
loss on
Account Book value the Acco
Variet Securiti changes Reportin Sour
Securi Initial ing at the cumul Current Current Ending untin
y of es in fair g period ce of
ties investment measure beginning ative purchase sale book g
securi abbrevi value for profit fund
code cost ment of the fair amount amount value subje
ties ation the and loss s
mode period value ct
current
of
period
equity
Trans
Fair action
Own
100,000,00 value 245,830. 100,000,00 100,245,8 al
Fund 0.00 fund
0.00 measure 68 0.00 30.68 financ
s
ment ial
assets
Trans
Fair action
Trust Own
500,000,00 value 3,527,39 500,000,00 1,609,58 503,527,3 al
produ 0.00 fund
0.00 measure 7.26 0.00 9.04 97.26 financ
cts s
ment ial
assets
Rais
Trans ed
Fair action fund
4,500,446, value 1,164,039, 9,535,88 4,500,446, 4,783,874, 30,991,6 890,147,3 al s
Other 0.00
609.60 measure 381.59 3.58 609.60 510.46 24.22 64.31 financ and
ment ial own
assets fund
s
5,100,446, 1,164,039, 13,309,1 5,100,446, 4,783,874, 32,601,2 1,493,920
Total -- 0.00 -- --
609.60 381.59 11.52 609.60 510.46 13.26 ,592.25
Announcement and
disclosure date of
securities investment March 28, 2020
examination and
approval board
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Full text of Guangdong Dongfang Precision Science&Technology Co., Ltd. Semi-annual Report 2020
Date of
announcement and
disclosure of
shareholders' meeting April 14, 2020
for examination and
approval of securities
investment (if any)
Note:
The statistical caliber of "current purchase amount" and "current sales amount" of the transactional financial assets in the above table
are as follows: the cumulative amount of financial products purchased by the company during the reporting period and the
cumulative amount of financial products sold (or redeemed) during the reporting period. There is a situation in which a sum of
money is repeatedly used to buy, sell (or redeem) financial products during the reporting period. The maximum one-day balance of
the funds used by the company to purchase wealth management products during the reporting period can be found in the entrusted
financing section of XV. Major contracts and their performance in Section5 Important Matters of this report.
(2) Derivatives investment
□ Applicable √ Not applicable
There was no derivative investment during the reporting period.
6.Use of raised funds
√ Applicable □ Not applicable
(1) Overall use of raised funds
√ Applicable □ Not applicable
Unit: ten thousand yuan
Total funds raised 290,000
The total amount of raised funds used during the
0
reporting period
The accumulated use of raised funds 187,902.15
Total funds raised during the reporting period for
0
changes in use
Accumulated total amount of funds raised for changing 0
46
Full text of Guangdong Dongfang Precision Science&Technology Co., Ltd. Semi-annual Report 2020
purposes
Proportion of total funds raised for cumulative changes
0.00%
in use
Description of the overall use of raised funds
As of June 30, 2020, the cumulative amount of funds raised by the company was 1.8790215 billion yuan. The details are as
follows: (1) the cumulative amount of funds raised in the previous year was 1.9409055 billion yuan; (2) the amount of funds
returned by Beijing Pride New Energy Battery Technology Co., Ltd. (hereinafter referred to as "Pride") in 2019 was 61.8841
million yuan.
On March 27, 2020, the company held its first interim shareholders' meeting in 2020, which approved the bill on terminating the
fund-raising investment project and permanently replenishing the current funds with the savings raised. In view of the fact that the
company has transferred 100% of Pride's shares in December 2019, Pride is no longer a subsidiary of Dongfang Precision, and the
previous parent-subsidiary relationship between Dongfang Precision and Pride has been officially terminated in law. The company's
original planned investment project "Pride Liyang Base New Energy vehicle Battery R & D and industrialization Project", which
was originally planned to raise matching funds through a non-public offering in 2017, no longer has any relationship with
Dongfang Precision due to the overall transfer of 100% equity in Pride. The continued implementation of the fund-raising project
does not have any commercial rationality and feasibility. The 2017 non-public offering fund-raising investment project was in fact
terminated automatically at the end of 2019 when the company's sale of Pride's shares was completed. In order to effectively use
funds to optimize the allocation of resources, expand and strengthen the main business and enhance the value creation ability of the
listed company, and then create more value for shareholders, with the approval of the shareholders' meeting, the company decided
to use all the savings raised to permanently replenish liquidity.
As of June 30, 2020, the company has transferred a total of 1.013701 billion yuan from the fund-raising special account for
permanent replenishment of current funds, and the remaining 100 million yuan of outstanding funds have been used for the
purchase of large certificate of deposit products and the financial interest of 916,600 yuan in batches to the account. It is still
deposited in the special account of raising funds, but it no longer belongs to the nature of raised funds.
As of June 30, 2020, the cumulative net amount of bank deposit interest minus bank fees received by the company was 87.5988
million yuan, and the net interest on raised funds returned by Pride was 6.0403 million yuan. Since during the reporting period, the
company has passed a resolution to terminate the fund-raising investment project and use all the savings raised for permanent
replenishment of current funds. As of June 30, 2020, the balance of raised funds is RMB 0.
(2) Raised funds commitment project
√ Applicable □ Not applicable
Unit: ten thousand yuan
Whether Raised Amount Cumulative Investm The date Benefits Whether Whether
Commitment to Adjusted
the item funds invested investment ent when achieved the the
investment projects total
has been promised during amount as progress the during expected project
and investment funds investme
changed total the of the end as of the project the benefits feasibility
direction nt (1)
(includin investme reporting of the end of reaches reporting are has
47
Full text of Guangdong Dongfang Precision Science&Technology Co., Ltd. Semi-annual Report 2020
g some nt period period (2) the the period achieved changed
changes) period intended significan
(3) = (2) usable tly
/ (1) status
Commitment to investment projects
Not
Pay cash consideration NO 180,500 180,500 180,500 100.00% applicabl NO
e
Not
Pay intermediary fees NO 9,500 9,500 7,402.15 77.92% applicabl NO
e
Pride Liyang base new
energy vehicle battery Not
R&D and NO 100,000 100,000 0 0.00% applicabl NO
industrialization e
project
Subtotal of committed
-- 290,000 290,000 187,902.15 -- -- -- --
investment projects
Over-raised funds
NONE
In total -- 290,000 290,000 0 187,902.15 -- -- 0 -- --
In December 2019, the company essentially terminated the fund-raising investment project through the
The situation and
Beijing Pride equity package solution related to the sale of the investment project. In March 2020, the 43th
reasons for not
(interim) meeting of the third session of the company's board of directors and the first interim shareholders'
reaching the planned
meeting in 2020 examined and passed the motion on terminating the fund-raising investment project and
progress or expected
permanently replenishing the current funds with the savings raised. It is agreed that the investment project
benefits (by specific
of the funds raised by the company shall be terminated and all the funds raised by the savings shall be used
projects)
to permanently replenish the working capital.
Description of major
changes in project Not applicable
feasibility
The amount, purpose Not applicable
and use progress of
over-raised funds
Changes in the
implementation
Not applicable
location of investment
projects with raised
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funds
The adjustment of the
implementation
method of the Not applicable
fund-raising
investment project
Applicable
On September 25, 2017, the company held the 17th meeting of the third session of the board of directors,
which examined and passed the "Motion on the use of raised funds to replace self-raised funds that have
Prophase investment been pre-invested in fund-raising projects". It is agreed that the company will use the raised funds of
and replacement of 61.8841 million yuan to replace the self-raised funds that have been invested in the project in advance, and
investment projects the replacement was completed on September 28, 2017.
with raised funds According to the agreement signed between the company and Pride's former shareholder as well as Pride,
in November 2019, when the company transfers 100% of its shares in 2019, Pride should return to the
company a total of 67,924,400.00 yuan in principal and interest allocated in 2017. On December 25th,
2019, the company received 67,924,400.00 yuan paid by Pride by bank transfer.
Use idle raised funds to Not applicable
temporarily
supplement working
capital
Applicable
On March 27, 2020, the company held its first interim shareholders' meeting in 2020, which approved the
bill on terminating the fund-raising investment project and permanently replenishing the current funds with
the savings raised. In view of the fact that the company has transferred 100% of Pride's shares in December
2019, Pride is no longer a subsidiary of Dongfang Precision, and the previous parent-subsidiary
relationship between Dongfang Precision and Pride has been officially terminated in law. The company's
The amount and reason original planned investment project "Pride Liyang Base New Energy vehicle Battery R & D and
of the balance of funds industrialization Project", which was originally planned to raise matching funds through a non-public
raised during project offering in 2017, no longer has any relationship with Dongfang Precision due to the overall transfer of
implementation 100% equity in Pride. The continued implementation of the fund-raising project does not have any
commercial rationality and feasibility. The 2017 non-public offering fund-raising investment project was in
fact terminated automatically at the end of 2019 when the company's sale of Pride's shares was completed.
In order to effectively use funds to optimize the allocation of resources, expand and strengthen the main
business of the listed company, enhance the value creation ability of the listed company, and then create
more value for shareholders, with the approval of the shareholders' meeting, the company decided to use
all the savings raised to permanently replenish liquidity.
The purpose and
destination of the As of the end of this report, there are no unused funds raised by the company.
unused raised funds
Problems or other
situations in the use Not applicable.
and disclosure of raised
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funds
(3) Raised funds to change projects
□ Applicable √Not applicable
During the reporting period of the company, there was no change in the project of raised funds.
(4) The Status of fund-raising projects
Summary of fund-raising projects Disclosure date Disclosure index
For details, see the special report on the
deposit and use of funds raised in the first August 28, 2020 Cninfo (http://www.cninfo.com.cn)
half of 2020.
7. The status of major projects invested by non-raised funds.
□ Applicable √ Not applicable
The company's reporting period is nothing more than major projects to raise funds for investment.
VI. Major asset and equity sale
1.Sales of major assets
□ Applicable √ Not applicable
The company did not sell any significant assets during the reporting period.
2.Sale of major equity
□ Applicable √ Not applicable
VII. Analysis of major holding companies
√ Applicable □ Not applicable
Major subsidiaries and shareholding companies that affect more than 10% of the company's net profit
Unit: yuan
Company Company Company type Registered Total assets Net assets Operating Operating Net profit
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Full text of Guangdong Dongfang Precision Science&Technology Co., Ltd. Semi-annual Report 2020
name type capital income profit
R&D,
processing,
manufacturing,
sales:
corrugated
1.56
Fosber cardboard
Subsidiary million 1,465,492,264.73 559,059,583.50 813,333,560.03 64,297,515.51 61,551,927.35
S.p.A. production line
Euros
and
accessories,
and provide
after-sales
service.
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable √ Not applicable
VIII. The situation of the structured main body controlled by the company
□ Applicable √ Not applicable
IX. Forecast of business performance from January to September 2020
A warning and explanation of the reasons for predicting that the cumulative net profit from the beginning of the year to the end of the
next reporting period may be a loss or a substantial change compared with the same period last year.
□ Applicable √ Not applicable
X. Risks faced by the company and countermeasures
1. Risk of macroeconomic changes and cyclical fluctuations in downstream industries
In 2020, the uncertainties in the world trade situation and the global macroeconomic slowdown are
continuing. The spread of the new coronavirus epidemic around the world in early 2020 has caused
a certain impact on the global real economy. Europe and the United States and other countries and
regions Under the impact of the epidemic situation, the normal operation in all aspects of society,
economy and life has not yet been fully restored. Although the domestic economic development
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shows a trend of restorative growth, the complex and changeable economic environment at home
and abroad not only affects the recovery process of the consumer market, but also affects the
printing and packaging industry, which provides supporting supply chain services for the
production of consumer goods, and then affects the development of the upstream equipment
industry of the printing and packaging industry.
The transmission of the overall changes in the external macro-economy to the micro level will
inevitably be reflected in the changes in the enterprise's capital investment intentions. If the
macroeconomic growth rate continues to slow down in the future, and the operating conditions of
downstream manufacturers will decline, it may cause domestic and foreign industry customers to be
more cautious about their capital expenditure requirements, which in turn will have a certain
negative impact on the company's order acquisition.
2.Risks in globalization and internationalization
With years of development, the company's degree of "globalization" continues to increase. The
existing overseas subsidiaries of Dongfang Precision are distributed in countries such as Italy, Spain,
the Netherlands and the United States. The company is faced with the problem of how to adapt and
be familiar with the overseas legal environment, business environment, and cultural environment, as
well as how to better communicate and cooperate with the overseas management team.
Under the impact of the COVID-19 epidemic, the global economy has slowed down, and the rise of
foreign trade protectionist forces has intensified international economic and trade frictions. Among
the operating locations and customer distribution of the company's foreign subsidiaries, the
European and American markets occupy an important position. The development of the epidemic
situation in Europe and the United States and regions and the changes in the economic restart and
recovery are expected to have a certain uncertain impact on the company's foreign subsidiary
operations in 2020.
3. Fluctuation risk of main raw material prices
The main raw materials required for the manufacturing and production of the company's intelligent
packaging equipment are electrical components, standard parts, machined parts, other raw materials
and auxiliary materials. During the reporting period, the purchase amount of these main raw
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materials accounted for a relatively high proportion of the company's main business costs. If the
prices of major raw materials continue to rise sharply in the future, and the company is not able to
transfer the increased procurement costs to the downstream in time, then the production budget
arrangement will be greatly affected, and the company will face the risk of rising operating costs
and falling gross profit margins, which may adversely affect the company's profitability.
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Section 5 Important Matters
I. Relevant information on the annual and interim general meetings of shareholders held
during the reporting period
1. The status of the shareholders' meeting during the reporting period
Session of the Investor
Meeting type Date of convening Disclosure date Disclosure index
meeting participation ratio
Cninfo
(http://www.cninfo.c
om.cn),
announcement of the
The first interim
Interim shareholders' resolution of the first
shareholders' 37.80% March 27, 2020 March 28, 2020
meeting interim general
meeting in 2020
meeting of
shareholders in 2020
(announcement
number: 2020-022)
Cninfo
(http://www.cninfo.c
om.cn),
announcement of the
The second interim
Interim shareholders' resolution of the
general meeting of 29.28% April 13, 2020 April 14, 2020
meeting second interim
shareholders in 2020
general meeting of
shareholders in 2020
(announcement
number: 2020-029)
Cninfo
(http://www.cninfo.c
om.cn),
2019 annual general announcement of the
Annual shareholders'
meeting of 42.59% May 20, 2020 May 21, 2020 resolution of the
meeting
shareholders 2019 shareholders'
meeting
(announcement
number: 2020-046)
The third interim Interim shareholders' Cninfo
35.13% June 24, 2020 June 29, 2020
general meeting of meeting (http://www.cninfo.c
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shareholders in 2020 om.cn),
announcement of the
resolution of the
third interim general
meeting of
shareholders in 2020
(announcement
number: 2020-059)
2. The shareholders of the preferred shares whose voting rights have been restored request to hold an
interim general meeting of shareholders.
□ Applicable √ Not applicable
II. Profit distribution and capitalization of capital reserves in the reporting period
□ Applicable √ Not applicable
The company does not distribute cash dividends in the planned semi-annual year, does not send bonus shares, and does not convert
capital reserve into share capital.
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III. The company's actual controllers, shareholders, related parties, purchasers, and the company's commitments related parties have
fulfilled their commitments during the reporting period and have not fulfilled their commitments as of the end of the reporting period
√ Applicable □ Not applicable
Commitment reason Commitment party Commitment type Commitment content Commitment time Commitment term Implementation
Stock reform commitments
Commitments made in the
acquisition report or equity
change report
If Pride’s accumulated actual net profit after deduction in 2016,
2017, and 2018 is not less than the cumulative promised net
profit after deduction, or Pride's cumulative actual net profit
after deduction in 2016, 2017, and 2018 is lower than the
Share sales limit cumulative promised net profit after deduction, but has Fulfilled
BAIC; CATL
commitment fulfilled the corresponding performance compensation April 25, 2017 Until April 24, 2020
obligations and obtained by holding the subscription of Pride's
equity Dongfang Precision Co., Ltd. After deducting the
Commitments made during number of compensated shares (if any), the ban can be lifted
asset reorganization after thirty-six months from the listing date.
If Pride’s accumulated actual net profit after deduction in 2016,
2017, and 2018 is not less than the cumulative promised net
profit after deduction, or Pride's cumulative actual net profit
Share sales limit after deduction in 2016, 2017, and 2018 is lower than the Fulfilled
Qinghai Puren
commitment cumulative promised net profit after deduction, but has April 25, 2017 Until April 24, 2020
fulfilled the corresponding performance compensation
obligations and obtained by holding the subscription of Pride's
equity 40% of the shares of Dongfang Precision. After
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deducting the amount of the compensated shares (if any), the
ban will be lifted after 36 months from the listing date.
The total number of 80% of the shares of Dongfang Precision
Share sales limit acquired by subscription of shares held by Pride can be lifted
Qinghai Puren April 25, 2017 Until May 20, 2020 Fulfilled
commitment after 48 months from the listing date of the shares after
deducting the number of compensated shares (if any)
The number of remaining shares of Dongfang Precision
Share sales limit
Qinghai Puren acquired by subscription of shares held by Pride can be lifted April 25, 2017 Until May 20, 2020 Fulfilled
commitment
after 60 months from the date of listing
If Pride's cumulative actual net profit after deduction in 2016,
2017, and 2018 is not less than the cumulative promised net
profit after deduction, or Pride's cumulative actual net profit
after deduction in 2016, 2017, and 2018 is low after
Pulead; Foton Share sales limit accumulating commitments to deduct non-post-net profits, but
April 25, 2017 Until April 24, 2020 Fulfilled
Motor commitment having fulfilled the corresponding performance compensation
obligations, the remaining shares in Dongfang Precision shares
acquired through the subscription of shareholdings in Pride,
after deducting the number of compensated shares (if any) , the
ban can be lifted after 36 months from the listing date.
1. For the related transactions between the company, the
company controlled by the company and other companies
Commitments on actually controlled by the company's controlling shareholders,
Pulead; BAIC; industry and Dongfang Precision and its holding subsidiaries that
Foton Motor; competition, cannot be avoided or have reasonable reasons, they will strictly Until January 8,
April 25, 2017 Fulfilled
CATL; Qinghai related party abide by the market principles. In accordance with the general 2020
Puren transactions, and principles of equality, mutual benefit and equal pay, fair and
capital occupation reasonable conduct. For related transactions between the
company, the company controlled by the company, and the
company's controlling shareholders who actually control other
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companies and Dongfang Precision and its holding
subsidiaries, an agreement will be signed in accordance with
the law, legal procedures will be performed, and relevant laws,
regulations, and regulatory documents , Articles of Association
of Dongfang Precision Co., Ltd. and other relevant provisions
of corporate governance system to fulfill the obligation of
information disclosure, and to ensure that the legal rights of the
listed company and the majority of small and medium
shareholders are not harmed through connected transactions;2.
The company will actively fulfill its obligations of avoidance
in accordance with the law when it considers related-party
transactions involving the company, the companies controlled
by the company, and other companies actually controlled by
the company's controlling shareholders, and the transaction
must be reviewed and approved by the authority. It can only be
executed afterwards; 3. The company guarantees that it will not
obtain any undue benefits through connected transactions or
make Dongfang Precision and its holding subsidiaries assume
any undue obligations. In case of loss of Dongfang Precision
and its holding subsidiaries due to violation of the above
undertakings, the enterprise shall be liable for compensation
for losses of Dongfang Precision and its holding subsidiaries.
Pride is independent of the unit and other enterprises controlled
by the unit in terms of assets, business, personnel, finance,
institutions, etc., and has an independent and complete asset
structure and business system; after the completion of this
transaction, the unit will continue to maintain the general
Pride's independent operation guarantees that the company or
its related parties and its transactions are regulated in their
transactions, actively perform internal control procedures, and
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the transaction prices are strictly priced based on market prices
to avoid adversely affecting the independence of the listed
company.
1. The enterprise, the enterprise controlled by the enterprise
and other enterprises actually controlled by the controlling
shareholder of the enterprise will not engage in the same direct
or indirect way as the main business of Dongfang Precision
and its subsidiaries, Pride and its subsidiaries Similar business
will not be engaged in the same or similar business as the main
business of Dongfang Precision and its subsidiaries, Pride and
its subsidiaries through investment, acquisition, joint venture,
merger, or entrusted operation in China. 2. Any business
opportunities that the company, the company controlled by the
company, and other companies actually controlled by the
Commitments on
company's controlling shareholder will obtain from any third
industry
party in the future are related to the main business of Dongfang
Pulead; Qinghai competition, Until January 8,
Precision and its subsidiaries, Pride and its subsidiaries. If April 25, 2017 Fulfilled
Puren related party 2020
there is competition or there may be competition, the
transactions, and
enterprise, the enterprise controlled by the enterprise and other
capital occupation
enterprises actually controlled by the controlling shareholder of
the enterprise will immediately notify Dongfang Precision and
its subsidiaries, Pride and its subsidiaries, and try their best to
give the business opportunity Ferry to Dongfang Precision and
its subsidiaries, Pride and its subsidiaries. 3. If the enterprise,
the enterprise controlled by the enterprise and other enterprises
actually controlled by the controlling shareholder of the
enterprise cause losses to Dongfang Precision and its related
parties due to failure to perform or improperly perform the
above commitments, the enterprise shall bear the full amount
in cash and other losses.
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1. Since the completion of this reorganization, the newly issued
shares issued by Dongfang Precision to the company will be
registered within the name of the company within 36 months.
The company and the company acting in concert will not
increase the shares of Dongfang Precision. 2. Since the
Pulead;BAIC;
completion of this reorganization, within 36 months from the
Foton Motor; Other
date when the newly-increased shares issued by Dongfang April 25, 2017 Until April 24, 2020 Fulfilled
CATL; Qinghai commitments
Precision to the company are registered under the name of the
Puren
company, the company and the person acting in concert with
the company will not seek any control position. 3. This
commitment takes effect as soon as it is made and cannot be
revoked. If the above commitments are violated, the company
will assume corresponding legal responsibilities
1. Within 60 months from the completion of this transaction, I
promise not to give up the actual control of Dongfang
Precision. 2. In order to continue to share the business results
of Dongfang Precision, I have the intention to hold shares of
Dongfang Precision for a long time. Under this premise, I
further undertake to select the appropriate time to increase or
reduce holdings of Dongfang Precision based on my own
Tang Zhuolin; Tang Other
capital holdings and capital demand, while ensuring that the April 25, 2017 Until May 20, 2020 Fulfilled
Zhuomian commitments
actual controller of Dongfang Precision does not change The
relevant transactions shall be carried out in accordance with the
relevant regulations of the China Securities Regulatory
Commission and Shenzhen Stock Exchange. 3. This
commitment takes effect as soon as it is made and cannot be
revoked. If the above commitment is violated, I will bear the
corresponding legal responsibility.
Commitments made during
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Full text of Guangdong Dongfang Precision Science&Technology Co., Ltd. Semi-annual Report 2020
initial public offering or
refinancing
Equity incentive
commitment
Other commitments made to
the company's small and
medium shareholders
Whether the promise is
YES
fulfilled on time
If the commitment is not
fulfilled within the time
limit, the specific reasons for
the failure to complete the Not applicable
performance and the work
plan for the next step shall
be explained in detail.
IV. Appointment and Dismissal of Accounting Firms
Has the semi-annual financial report been audited?
□ Yes √ No
The company's semi-annual report has not been audited.
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V. Explanation of the "non-standard audit report" of accounting firms during the reporting
period by the board of directors and the board of supervisors
□ Applicable √ Not applicable
VI. Explanation of the board of directors on the relevant situation of the "non-standard audit
report" of the previous year
□ Applicable √ Not applicable
VII. Matters related to bankruptcy and reorganization
□ Applicable √ Not applicable
There were no bankruptcy and reorganization related matters during the reporting period.
VIII. Litigation matters
Major litigation and arbitration matters
□ Applicable √ Not applicable
There are no major litigation or arbitration matters during the reporting period.
Other litigation matters
□ Applicable √ Not applicable
IX.The media questioning.
□ Applicable √ Not applicable
There are no questions in the media during the reporting period.
X. Penalties and rectification
□ Applicable √ Not applicable
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There were no penalties and rectifications during the reporting period.
XI. The integrity of the company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
Ⅻ. Implementation of the company's equity incentive plan, employee stock ownership plan or
other employee incentive measures
√ Applicable □ Not applicable
In order to improve the company's long-term incentive mechanism, fully mobilize the enthusiasm of managers at all levels and core
backbone of the company, effectively promote the long-term development of the company, and achieve the goal of "stabilizing the
team, boosting morale, gathering talents and improving performance", the company launched the 2020 restricted stock incentive plan
in the first quarter of 2020, with 27 million A shares repurchased from the secondary market as incentive shares. The proportion of
the total share capital is 1.75%, and the grant price of restricted shares is 1 yuan per share. The incentive objects are the directors,
senior managers and core technical (business) personnel who served in the company (including subsidiaries, the same below) when
the company announced this incentive plan.
The 2020 restricted stock incentive plan has been examined and approved by the 43th (interim) meeting of the third board of
directors and the first interim general meeting of shareholders held on March 11, 2020 and March 27, 2020 respectively. For details,
see The Summary of the 2020 Restricted Stock Incentive Plan (draft) disclosed on http://www.cninfo.com.cn, on March 12, 2020,
and The Announcement of the Resolution of the First Interim General Meeting of 2020 disclosed on http://www.cninfo.com.cn on
March 28, 2020.
The company held the 44th (interim) meeting of the third session of the board of directors on March 27, 2020, and examined and
adopted the Bill on Granting Restricted Stocks to Incentive Targets. The date of granting some restricted shares for the first time is
March 27, 2020. For details, see The Announcement on Granting Restricted Stocks to Incentive Targets published on March 28, 2020
on http://www.cninfo.com.cn.
On June 8, 2020, the 48th (interim) meeting of the third session of the Board of Directors and the 31st (interim) meeting of the third
session of the Board of Supervisors examined and adopted the Bill on Adjusting the Related Matters of the 2020 Restricted Stock
Incentive Plan. The independent directors of the company expressed an independent opinion on this and agreed that the board of
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directors of the company should adjust the list of incentive targets and the number of awards. After the adjustment, the number of
incentive targets for the first grant part of the company's restricted stock incentive plan will be adjusted from 42 to 40, the number of
first grant will be adjusted to 22.6 million shares, the number of reserved restricted shares will be adjusted to 4, 400,000 shares, and
the total number of rights and interests to be granted by the incentive plan will remain unchanged. For details, see the announcement
on the adjustment of the 2020 restricted stock incentive plan disclosed by the company on June 9, 2020 on http://www.cninfo.com.cn.
On June 23, 2020, the company completed the registration of the first grant of the 2020 restricted stock incentive plan. For details,
see The Announcement on the Completion of the First Grant of the 2020 Restricted Stock Incentive Plan published on
http://www.cninfo.com.cn on June 24, 2020.
XIII. Major related transactions
1. Related transactions related to daily operations
□ Applicable √ Not applicable
There are no related transactions related to daily operations during the reporting period of the company.
2. Related transactions in the acquisition or sale of assets or equity
□ Applicable √ Not applicable
During the reporting period, the company did not have any related party transactions related to the acquisition or sale of assets or
equity.
3. Related transactions of joint foreign investment
□ Applicable √ Not applicable
During the reporting period, there was no related party transaction involving joint foreign investment.
4. Related credit and debt transactions
□ Applicable √ Not applicable
There are no related creditor's rights and debts during the reporting period of the company.
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5. Other major related party transactions
□ Applicable √ Not applicable
There were no other major related transactions during the reporting period.
XIV. Non-operating capital occupation of listed companies by controlling shareholders and
their related parties
□ Applicable √ Not applicable
During the reporting period of the company, there was no non-operating capital occupation of the listed company by the controlling
shareholder and its related parties.
XV. Major contracts and their performance
1. Entrustment, contracting and leasing matters
(1) Trusteeship
□ Applicable √ Not applicable
There was no trusteeship during the reporting period.
(2) Contracting situation
□ Applicable √ Not applicable
There was no contracting during the reporting period.
(3) Lease situation
□ Applicable √ Not applicable
There were no leases during the reporting period.
2. Material guarantee
√Applicable □ Not applicable
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(1) Guarantee situation
Unit: ten thousand yuan
External guarantees of the company and its subsidiaries (excluding guarantees for subsidiaries)
Announcem
Whether
ent of the Whether
Actual the
Name of guarantee relevant Guarantee Type of Warranty guarantee
Actual date guarantee performan
object amount of amount guarantee period for related
amount ce is
guarantee parties
completed
amount
Company guarantees to subsidiaries
Announcem
Whether
ent of the Whether
Actual the
Name of guarantee relevant Guarantee Type of Warranty guarantee
Actual date guarantee performan
object amount of amount guarantee period for related
amount ce is
guarantee parties
completed
amount
Dongfang Precision June 28, August 10, Joint liability 36 months
27,863.5 27,863.5 NO NO
（Netherland） 2017 2017 guarantee
Dongfang Precision January 11, Joint liability 40 months
35,728.97 March 16, 2020 35,728.97 NO NO
（Netherland） 2020 guarantee
Total actual amount of
The total amount of guarantees
guarantees issued to
approved for subsidiaries during 63,592.47 35,728.97
subsidiaries during the
the reporting period (B1)
reporting period (B2)
The total amount of guarantees Total actual guarantee balance
for subsidiaries approved at the 63,592.47 of subsidiaries at the end of the 63,592.47
end of the reporting period (B3) reporting period (B4)
Subsidiary to subsidiary guarantee
Announcem
Whether
ent of the Whether
Actual the
Name of guarantee relevant Guarantee Type of Warranty guarantee
Actual date guarantee performan
object amount of amount guarantee period for related
amount ce is
guarantee parties
completed
amount
From the
effective
May 15, Joint liability
Italy QCorr 2,388.3 April 30, 2020 2,388.3 date of the NO NO
2020 guarantee
guarantee to
May 1, 2021
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Within 48
months from
May 15, Joint liability
Italy QCorr 1,990.25 April 29, 2020 1,990.25 the effective NO NO
2020 guarantee
date of the
guarantee
Total actual amount of
The total amount of guarantees
guarantees to subsidiaries
approved for subsidiaries during 4,378.55 4,378.55
during the reporting period
the reporting period (C1)
(C2)
The total amount of guarantees Total actual guarantee balance
approved for subsidiaries at the 4,378.55 of subsidiaries at the end of the 4,378.55
end of the reporting period (C3) reporting period (C4)
Total company guarantee (ie the sum of the top three items)
The total amount of guarantees Total actual guarantee amount
approved during the reporting 67,971.02 during the reporting period 40,107.52
period (A1 + B1 + C1) (A2 + B2 + C2)
The total amount of guarantees Total actual guarantee balance
approved at the end of the 67,971.02 at the end of the reporting 67,971.02
reporting period (A3 + B3 + C3) period (A4 + B4 + C4)
The proportion of the actual total guarantee (ie A4 + B4 + C4)
15.18%
to the company’s net assets
Of which:
Balance of guarantee for shareholders, actual controllers and
0
their related parties (D)
The balance of debt guarantee provided directly or indirectly
for the guaranteed object with an asset-liability ratio exceeding 67,971.02
70% (E)
The amount of the guarantee amount exceeding 50% of the net
0
assets (F)
Total amount of the above three guarantees (D + E + F) 67,971.02
Explanation of unexpired guarantees, during the reporting
period, a guarantee liability has occurred or may be jointly and Not applicable
severally liable (if any)
Instructions for providing external guarantees in violation of
Not applicable
prescribed procedures (if any)
(2) External guarantees in violation of regulations
□ Applicable √ Not applicable
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During the reporting period, the company had no violations of external guarantees.
3.Entrusted financial management
√Applicable □ Not applicable
Unit: ten thousand yuan
Source of funds for Entrusted financial Overdue amount not
Specific type Outstanding balance
entrusted financing management recovered
Bank wealth
Raised funds 65,000 0 0
management products
Bank wealth
Own funds 167,300 88,000 0
management products
In total 232,300 88,000 0
The specific situation of high-risk entrusted financial management with large single amount or low security, poor liquidity and
non-guaranteed capital
□ Applicable √ Not applicable
The entrusted financial management has expected that the principal cannot be recovered or there are other situations that may cause
impairment
□ Applicable √ Not applicable
4. Other major contracts
□ Applicable √ Not applicable
There were no other major contracts during the reporting period.
XVI. Social responsibility
1. Major environmental protection issues
The company and its subsidiaries are not among the key pollutant discharge units announced by the environmental
protection department.
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2. Fulfilling the social responsibility of poverty alleviation with precision
In the first half of 2020, the company and its wholly-owned and holding subsidiaries have not carried out accurate
poverty alleviation work, and there is no follow-up accurate poverty alleviation plan for the time being.
3. Fulfillment of social responsibility during the reporting period
The company attaches great importance to the fulfillment of social responsibilities in its daily operations, and
intends to promote the harmony and common prosperity of the company and its stakeholders, actively act in the
protection of shareholders and creditors, the protection of the rights and interests of employees, the protection of
the rights and interests of suppliers, customers and clients, environmental protection and sustainable development,
public relations and social welfare, and strive to realize the society including the sustainable development of the
company The overall benefit is maximized.
(1) Corporate governance: During the reporting period, the company strictly followed the requirements of laws
and regulations such as the "Company Law", "Securities Law", and "Code of Corporate Governance for Listed
Companies in China", continuously improved the corporate governance structure, and improved the internal
control system. The decision-making system with the board of directors, the board of supervisors and the
management as the main structure, and at the same time fulfill the information disclosure obligations in a timely
manner in accordance with the law and regulations, and effectively protect the rights and interests of all
shareholders.
(2) Customer-supplier relationship: The company has long been adhering to the principles of "integrity
management" and "mutual benefit and win-win", actively build and develop strategic partnerships with suppliers
and customers, jointly build a platform of trust and cooperation, and effectively implement the company's supplier
1. Social responsibility to consumers. The company's contracts with suppliers and customers have performed well,
and the rights and interests of all parties have received high attention and due protection.
(3) Production safety: The company strictly abides by the relevant laws and regulations of the "Labor Law" and
"Labor Contract Law", puts people first, pays attention to the needs of employees, strives to improve the working
and living environment of employees, and sets up labor unions to effectively protect the interests of employees.
Configure labor protection articles according to the hazards of job exposure, organize employees to conduct
occupational health examinations (before going on duty, on the job, and before leaving the job), and purchase
"safety and liability insurance" for the jobs with larger risk factors.
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(4) Environmental protection: Dongfang Precision has invested a total of about 6.006 million yuan in
environmental protection in China, including the expenses of new environmental protection equipment, equipment
maintenance, operation, hazardous waste transfer and disposal, etc., and the normal operation of environmental
protection equipment is managed and operated by special personnel. There is even regular maintenance of
environmental protection equipment so as to ensure the normal operation of the equipment. Dongfang Precision
has obtained the "Environmental Assessment Approval" from the environmental protection department, passed the
certification review of "OHSAS18001:2007 Occupational Health and Safety Management System" and
"ISO14001:2005 Environmental Management system", and obtained the certificates of "Environmental Cleaner
Production" and "National Pollution Discharge License". In terms of exhaust emissions, the prescribed total
amount of exhaust emissions is VOCs:0.606t/a (including organized emissions of 0.397 t/a and unorganized
emissions of 0.209 t/a). In the production process, the company takes a variety of measures to control waste
discharge, treat waste gas, etc., to achieve discharge standards. In wastewater discharge, through metal surface
treatment cleaning wastewater treatment facilities and reclaimed water reuse system for treatment, the Company
can meet the standards in Table 1 - Standard for Water Quality of Reclaimed Water for Products and Processes in
Urban Sewage Recycled Industrial Water Quality (GB/T 19923-2005) , and then recycled without discharge.
(5) Anti-epidemic and anti-epidemic aspects: Since the outbreak of the new coronavirus pneumonia around the
Spring Festival in 2020, the company has actively participated in social anti-epidemic activities and took the
following actions:
A. Doing its own epidemic prevention work: The company organized and established the epidemic prevention
committee with the general manager as the general commander for the first time, and made all-round
deployment arrangements for various prevention and control work; actively carried out the collection and
deployment of epidemic prevention materials, and equipped staff Masks, temperature guns, disinfectants and
other epidemic prevention materials.
B. Actively respond to the government's call for orderly resumption of production and production under the
premise of good epidemic prevention and control work, formulate a thorough plan for resumption of production
and compaction of related work, implement various prevention and control measures, and pass the on-site
acceptance of government departments Afterwards, the safe resumption of work was successfully achieved;
C. Actively fulfill social responsibilities, go through the same path of "fighting epidemic" road through wind and
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rain: the company actively fulfills its social responsibilities and responsibilities as an influential listed company,
actively donates cash and donated epidemic prevention materials to relevant associations, hospitals, and public
welfare organizations, and supports them with practical actions Anti-epidemic frontline; and donated
anti-epidemic materials to the company's subsidiaries and agents in Italy, the United States and Spain.
(6) Anti-fraud: during the reporting period, the company organized and implemented logistics business
procurement audit, information business backup project procurement audit to conduct a comprehensive review of
the supplier qualification background and access procedures, price comparison, technical solutions, services and
delivery of procurement business, and prompt and report business risks in time for the existing problems such as
insufficient search of supplier resources and price comparison at different levels so as to effectively improve the
effectiveness of the procurement business, monitor and prevent the risk of procurement fraud.
XVII. Explanation of other important matters
√Applicable □ Not applicable
Based on the changes in the actual situation of the company (such as total share capital, etc.), and the revision of
superior laws such as The Company Law and Code of Corporate Governance for Listed Companies in China
during the period from 2018 to 2019, and combined with the needs of the actual situation of the company, we
promote the creation of a relatively stable internal and external development environment, so that the company
can focus on the development of the company's "high-end smart equipment" main business and other factors. The
forty-third (interim) meeting of the third session of the board of directors and the first interim general meeting of
shareholders held by the company on March 11, 2020 and March 27, 2020 respectively examined and passed the
bill on revising the Articles of Association of the Company.
XVIII. Major matters of the company's subsidiaries
□ Applicable √ Not applicable
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Section 6 Changes in Shares and Shareholders
I. Changes in shares
1. Changes in shares
Unit: shares
Before this change Increase and decrease of this change (+,-) After this change
Provident
Issuing
Stock Fund
Number Percentage new Others In total Number Percentage
giving Conversion
shares
to shares
I. Restricted
731,859,476 39.80% 0 0 0 -489,573,912 -489,573,912 242,285,564 15.68%
shares
1. National
0 0.00% 0 0 0 0 0 0 0.00%
holdings
2. State-owned
legal person 356,869,565 19.41% 0 0 0 -356,869,565 -356,869,565 0 0.00%
holding shares
3. Other
domestic-funded 374,989,911 20.39% 0 0 0 -134,004,347 -134,004,347 240,985,564 15.60%
shares
Of which:
domestic legal
155,304,347 8.45% 0 0 0 -155,304,347 -155,304,347 0 0.00%
person holding
shares
Domestic
natural person 219,685,564 11.95% 0 0 0 21,300,000 21,300,000 240,985,564 15.60%
holding shares
4. Foreign
0 0.00% 0 0 0 1,300,000 1,300,000 1,300,000 0.08%
shareholdings
Of which:
Overseas legal
0 0.00% 0 0 0 0 0 0 0.00%
person holding
shares
Overseas natural
person holding 0 0.00% 0 0 0 1,300,000 1,300,000 1,300,000 0.08%
shares
II.Unrestricted 1,106,787,620 60.20% 0 0 0 196,053,773 196,053,773 1,302,841,393 84.32%
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shares
RMB common
1,106,787,620 60.20% 0 0 0 196,053,773 196,053,773 1,302,841,393 84.32%
stock
Domestically
listed foreign 0 0.00% 0 0 0 0 0 0 0.00%
shares
Foreign-listed
0 0.00% 0 0 0 0 0 0 0.00%
foreign shares
4.Others 0 0.00% 0 0 0 0 0 0 0.00%
III.Total shares 1,838,647,096 100.00% 0 0 0 -293,520,139 -293,520,139 1,545,126,957 100.00%
Reasons for changes in shares
√Applicable □ Not applicable
1. The repurchase and cancellation of the performance compensation shares shall be completed during the
reporting period.
At the end of 2019, the company resolved the dispute over Pride's performance commitment by implementing a
"package of solutions". In the above plan, the company buys back 293,520,139 shares of Dongfang Precision A
shares held by Pride's former shareholders, Pulead, CATL, BAIC, Foton Motor, Qinghai Puren, etc., which was
completed in January 2020.
2. Some restricted shares are listed and circulated during the reporting period.
With the application of the company and the approval of the Shenzhen Stock Exchange, 193,871,164 limited sale
condition shares held by shareholders such as Pulead, CATL, BAIC, Foton Motor, Qinghai Puren, etc., will be
lifted on Monday, April 27, 2020. 24,782,609 limited sale condition shares held by shareholders such as Qinghai
Puren will be lifted from the restricted listing and circulation on Wednesday, June 3, 2020.
3.The first registration of the company's 2020 restricted stock incentive plan will be completed within the
reporting period
The company launched the restricted stock incentive plan in the first half of 2020 and completed the registration
of the first grant in June 2020, granting a total of 22,600,000 restricted shares, of which three foreign incentive
targets were granted a total of 1,300,000 incentive shares.
Approval of changes in shares
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√ Applicable □ Not applicable
With regard to the above-mentioned share changes, the company has fulfilled the approval procedures of the
shareholders' general meeting and the board of directors in accordance with the laws and regulations and the
Articles of Association, and all of them have been approved by the Shenzhen Stock Exchange.
Transfer of ownership of changes in shares
√ Applicable □ Not applicable
During the reporting period, the "repurchase and cancellation of performance compensation shares" and "the first
grant and registration of the company's 2020 restricted stock incentive plan" involved the transfer of shares, all of
which were approved by the Shenzhen Stock Exchange. completed in Shenzhen Branch of China Securities
Registration and Clearing Co., Ltd.
Progress in the implementation of share repurchase
√ Applicable □ Not applicable
The 49th (interim) meeting of the third session of the board of directors held on June 15, 2020 and the third
interim shareholders' meeting of 2020 held on June 24, 2020 examined and approved the 2020 annual share
repurchase plan. The company uses its own funds, funds raised that have been changed into permanent
replenishment of current funds in accordance with the law, and loans from financial institutions, to implement a
centralized bidding transaction to buy back part of the company's A-shares of RMB common shares (hereinafter
referred to as "the repurchase of shares in 2020"). The total amount of funds to be used by the company shall not
be less than 500 million yuan (inclusive), not more than 1 billion yuan (inclusive), and the repurchase price shall
not exceed RMB 6.42 yuan per share; all the repurchased shares will be used for write-off and reduce the
company's registered capital; the implementation period shall be within 12 months from the date of consideration
and adoption of this share repurchase plan by the shareholders' general meeting.
As of the date of disclosure of this report, the company has implemented the repurchase of shares in 2020 through
centralized bidding transactions, with a total of 37,531,131 shares of the company, accounting for 2.43% of the
company's total share capital, with a maximum transaction price of 5.10 yuan per share and a minimum
transaction price of 4.72 yuan per share. the total amount paid is about 185 million yuan (excluding transaction
fees).
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Progress in the implementation of centralized bidding to reduce holdings of repurchased shares
□ Applicable √ Not applicable
The impact of share changes on financial indicators such as basic earnings per share and diluted earnings
per share in the most recent year and the most recent period, and net assets per share attributable to the
company's common stock shareholders
√ Applicable □Not applicable
Before the change of shares After the change of shares
Basic earnings per share for 2019 (RMB / share) 1.01 1.19
Diluted earnings per share for 2019 (RMB / share) 1.01 1.19
Net assets per share for 2019 (yuan / share) 2.36 2.81
Other content deemed necessary by the company or required by the securities regulatory agency
□ Applicable √ Not applicable
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2. Changes in restricted shares
√Applicable □ Not applicable
Unit: shares
The number of The number of Number of
Number of
shares whose sales increased restricted
restricted shares at
Shareholder name restrictions have restricted shares at the Reasons for sales restriction Date of lifting the restriction on sale
the beginning of
been lifted in this shares in this end of the
the period
period period period
Participate in the non-public On January 8, 2020, the performance compensation
offering of shares and make a repurchase cancelled 111,537,653 shares; on April 27,
Pulead 188,347,825 188,347,825 0 0
commitment to limit the sale 2020, the restriction on the sale of 76,810,172 shares was
of shares lifted.
Participate in the non-public
On January 8, 2020, the performance compensation
offering of shares and make a
BAIC 118,956,522 118,956,522 0 0 repurchase cancelled 70,444,833 shares; on April 27, 2020,
commitment to limit the sale
the restriction on the sale of 48,511,689 shares was lifted.
of shares
Participate in the non-public
On January 8, 2020, the performance compensation
offering of shares and make a
CATL 114,000,000 114,000,000 0 0 repurchase cancelled 67,509,632 shares; on April 27, 2020,
commitment to limit the sale
the restriction on the sale of 46,490,368 shares was lifted.
of shares
Participate in the non-public
On January 8, 2020, the performance compensation
offering of shares and make a
Foton Motor 49,565,218 49,565,218 0 0 repurchase cancelled 29,352,014 shares; on April 27, 2020,
commitment to limit the sale
the restriction on the sale of 20,213,204 shares was lifted.
of shares
Participate in the non-public On January 8, 2020, the performance compensation
Qinghai Puren 41,304,347 41,304,347 0 0
offering of shares and make a repurchase cancelled 14,676,007 shares; on April 27, 2020,
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commitment to limit the sale the restriction on the sale of 1,845,731 shares was lifted;
of shares on June 3, 2020, the restriction on the sale of 24,782,609
shares was lifted.
Participate in the company's When the conditions for the lifting of sales restrictions
Qiu Yezhi 16,632,388 0 9,000,000 25,632,388 2020 restricted stock incentive stipulated in the 2020 restricted stock incentive plan are
plan met
Participate in the company's When the conditions for the lifting of sales restrictions
Xie Weiwei 0 0 1,000,000 1,000,000 2020 restricted stock incentive stipulated in the 2020 restricted stock incentive plan are
plan met
Participate in the company's When the conditions for the lifting of sales restrictions
Zhou Wenhui 0 0 1,200,000 1,200,000 2020 restricted stock incentive stipulated in the 2020 restricted stock incentive plan are
plan met
Other 37 incentive targets
Participate in the company's When the conditions for the lifting of sales restrictions
granted part of the restricted
0 0 11,400,000 11,400,000 2020 restricted stock incentive stipulated in the 2020 restricted stock incentive plan are
stock incentive plan for the
plan met
first time in 2020
Total 528,806,300 512,173,912 22,600,000 39,232,388 -- --
II. Securities issuance and listing
□ Applicable √ Not applicable
III. The number of company shareholders and shareholdings
Unit: shares
Total number of ordinary shareholders at the 52,278 Total number of preferred shareholders with 0
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end of the reporting period voting rights restored at the end of the reporting
period (if any) (see Note 8)
Common stock shareholders holding more than 5% of the shares or the top 10 common stock shareholders
Number of Pledge or freeze situation
Number of
shares held at Changes during Number of shares
Shareholding shares with
Name of shareholder Nature of shareholders the end of the the reporting holding unlimited
ratio limited sales Share status Quantity
reporting period sales
conditions
period
Tang Zhuolin Domestic natural person 17.52% 270,737,568 203,053,176 67,684,392 Freeze 187,000,000
Tang Zhuomian Domestic natural person 8.79% 135,885,134 135,885,134
Pulead Technology
State-owned legal person 4.97% 76,810,172 -111,537,653 76,810,172
Industry Co.,Ltd.
Beijing Automotive
Group Industry State-owned legal person 3.14% 48,511,689 -70,444,833 48,511,689
Investment Co.,Ltd.
Contemporary Amperex
Domestic non-state-owned
Technology Co. 3.01% 46,490,368 -67,509,632 46,490,368
legal person
Limited
Ruan Huili Domestic natural person 2.92% 45,087,232 -83,100 45,087,232
Construction
Investment Investment State-owned legal person 2.54% 39,215,685 39,215,685
Co., Ltd.
Luzhou Industrial
Investment Group Co., State-owned legal person 2.06% 31,770,010 31,770,010
Ltd.
Huarong
Other 2.03% 31,372,549 31,372,549
Securities-China
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Merchants
Securities-Huarong
Youzhi No. 1 Collective
Asset Management Plan
Qiu Yezhi Domestic natural person 2.02% 31,176,518 9,000,000 25,632,388 5,544,130
Strategic investors or general legal persons become
top 10 ordinary shareholders due to placing new None
shares (if any) (see Note 3)
Mr. Tang Zhuolin and Mr. Tang Zhuomian are brothers. On August 18, 2010, the two signed a "Consistent Action Agreement." Pulead
Explanation of the above-mentioned shareholders'
Technology Industry Co., Ltd. and Qinghai Puren Intelligent Technology R & D Center (Limited Partnership) are parties acting in
related relationship or concerted action
concert.The company is not aware of whether there is an associated relationship or concerted action among other shareholders.
Shareholdings of the top 10 common stock shareholders with unlimited sales
Number of ordinary shares with unlimited sales held at the end of the reporting Types of shares
Name of shareholder
period Types of shares Quantity
Tang Zhuomian 135,885,134 RMB common stock 135,885,134
Pulead Technology Industry Co.,Ltd. 76,810,172 RMB common stock 76,810,172
Tang Zhuolin 67,684,392 RMB common stock 67,684,392
Beijing Automotive Group Industry Investment
48,511,689 RMB common stock 48,511,689
Co.,Ltd.
Contemporary Amperex Technology Co. Limited 46,490,368 RMB common stock 46,490,368
Ruan Huili 45,087,232 RMB common stock 45,087,232
Construction Investment Investment Co., Ltd. 39,215,685 RMB common stock 39,215,685
Luzhou Industrial Investment Group Co., Ltd. 31,770,010 RMB common stock 31,770,010
Huarong Securities-China Merchants
Securities-Huarong Youzhi No. 1 Collective Asset 31,372,549 RMB common stock 31,372,549
Management Plan
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Qinghai Puren Intelligent Technology R & D Center
26,628,340 RMB common stock 26,628,340
(Limited Partnership)
Explanation of the relationship or concerted action
Mr. Tang Zhuolin and Mr. Tang Zhuomian are brothers. On August 18, 2010, the two signed a "Consistent Action Agreement." Pulead
among the top 10 common stock shareholders of
Technology Industry Co., Ltd. and Qinghai Puren Intelligent Technology R & D Center (Limited Partnership) are parties acting in concert.
unrestricted shares outstanding, and between the top
The company is not aware of whether there is an associated relationship or a concerted action among the other top 10 shareholders with
10 common stock shareholders of unrestricted shares
unrestricted shares outstanding and the top 10 shareholders, or between the top 10 shareholders with unrestricted shares outstanding.
outstanding and the top 10 common stock
shareholders
Explanation of the top 10 common stock
As of June 30, 2020, among the top 10 shareholders of the company, Pulead Technology Industry Co., Ltd. held 73,755,050 shares of the
shareholders' participation in financing and securities
company through the customer credit transaction guarantee securities account of CITIC Construction Investment Securities Co., Ltd.
lending business (if any) (see Note 4)
Whether the top 10 common stock shareholders of the company and the top 10 common stock shareholders of unrestricted shares in the report period conducted agreed repurchase transactions
□ Yes √ No
The top 10 common stock shareholders of the company and the top 10 common stock shareholders with unrestricted sales conditions did not engage in agreed repurchase transactions during the
reporting period.
IV. Changes of controlling shareholder or actual controller
Controlling shareholder changes during the reporting period
□ Applicable √ Not applicable
The controlling shareholder of the company has not changed during the reporting period.
Change of actual controller during the reporting period
□ Applicable √ Not applicable
During the reporting period, the actual controller has not changed.
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Section 7 Preference Shares
□ Applicable √ Not applicable
During the reporting period, the company did not have preferred shares.
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Section 8 Relevant Information on Convertible Corporate Bonds
□ Applicable √ Not applicable
There was no convertible corporate bonds in the company during the reporting period.
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Section 9 Directors, Supervisors and Senior Management
I. Changes in shareholding of directors, supervisors and senior management
√ Applicable □Not applicable
Number
of
Number of Number Number of Number of
restricted
shares held of shares shares Number of restricted
shares Number of restricted
at the increased decreased shares held shares
awarded shares awarded at
Name Job title Job status beginning in the in the at the end of granted in
at the the end of the period
of the current current the period the current
beginning (shares)
period period period (shares) period
of the
(shares) (shares) (shares) (shares)
period
(shares)
Tang Chairman of
Current 270,737,568 270,737,568
Zhuolin the Board
Director and
Qiu Yezhi General Current 22,176,518 31,176,518 9,000,000 9,000,000
Manager
Director and
Xie Deputy
Current 1,000,000 1,000,000 1,000,000
Weiwei General
Manager
Mai Independent
Current
Zhirong Director
Peng Independent
Current
Xiaowei Director
He Independent
Current
Weifeng Director
Zhou Board
Current 1,200,000 1,200,000 1,200,000
Wenhui Secretary
Chairman of
Chen the
Current 480 480
Huiyi Supervisory
Board
Zhao Employee
Current
Xiuhe Representative
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Supervisor
Cen
Supervisor Current
Meiling
In total -- -- 292,914,566 0 0 304,114,566 0 11,200,000 11,200,000
II. The company's directors, supervisors, senior management personnel changes
□Applicable √Not applicable
The company's directors, supervisors and senior managers have not changed during the reporting period, as detailed in the 2019
annual report.
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Section 10 Corporate Bonds
Whether the company has publicly issued and listed on the stock exchange, and has not matured or failed to fully
redeem the corporate bonds on the date of approval of the semi-annual report.
NO
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Section 11 Financial Report
I.Audit report
Is the semi-annual report audited?
□ Yes √ No
The company's semi-annual financial report has NOT been audited.
II. Financial statements
The unit of the statement in the financial notes is: yuan
1. Consolidated balance sheet
Prepared by: Guangdong Dongfang Precision aScience&Technology Co., Ltd.
June 30, 2020
Unit: yuan
Item June 30, 2020 December 31, 2019
Current assets:
Monetary funds 1,940,001,676.49 2,356,703,434.60
Settlement provisions
Dismantling funds
Transactional financial assets 1,493,920,592.25 1,164,039,381.59
Derivative financial assets
Notes receivable
Accounts receivable 516,566,982.61 597,431,210.02
Receivable financing 39,532,463.47 55,447,099.32
Advance payment 53,680,384.23 25,901,123.85
Premium receivable
Receivable reinsurance account
Provision for reinsurance contract
receivable
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Other receivables 83,949,250.19 79,573,114.49
Of which: interest receivable 3,486,564.94 721,935.36
Dividend receivable
Buy back resale financial assets
Inventory 838,468,641.98 671,432,701.11
Contract assets
Holding assets for sale
Non-current assets due within one year 356,983.48
Other current assets 120,333,967.45 22,346,314.29
Total current assets 5,086,453,958.67 4,973,231,362.75
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 80,128,138.10 72,372,355.03
Investment in other equity instruments
Other non-current financial assets 17,649,624.09 20,559,159.34
Investment real estate
Fixed assets 569,720,809.77 585,754,900.75
Project under construction 12,735,416.77 4,839,241.48
Productive biological assets
Oil and gas asset
Right-of-use asset
Intangible assets 317,714,806.59 249,882,429.53
Development expenditure
Goodwill 332,717,576.86 306,633,631.93
Long-term prepaid expenses 11,295,458.17 8,699,236.33
Deferred income tax assets 55,153,179.77 49,025,021.61
Other non-current assets 1,443,594.59 2,518,818.56
Total non-current assets 1,398,558,604.71 1,300,284,794.56
Total assets 6,485,012,563.38 6,273,516,157.31
Current liabilities:
Short-term loan 82,888,933.77 117,888,353.14
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Borrowing from the Central Bank
Borrowed funds
Transactional financial liabilities 304,022.63
Derivative financial liabilities
Notes payable 51,457,356.15 43,973,859.51
Accounts payable 451,561,359.28 472,862,744.45
Advance payment 286,511,724.62
Contract liabilities 442,374,748.64
Selling back financial assets
Deposits and Interbank deposit
Agent trading securities
Agent underwriting securities
Salary payable to staff and workers 88,359,478.62 106,677,329.95
Taxes payable 32,072,332.40 48,928,229.51
Other payables 105,356,789.44 90,950,443.16
Of which: interest payable 2,426,515.21 1,410,745.58
Dividend payable
Fees and commissions
Reinsurance accounts payable
Holding liabilities for sale
Non-current liabilities due within one
491,320,129.60 353,399,238.29
year
Other current liabilities
Total current liabilities 1,745,695,150.53 1,521,191,922.63
Non-current liabilities:
Insurance contract reserve
Long term loan 49,092,928.25 224,146,667.48
Bonds payable
Of which: preferred stock
Perpetual debt
Lease liability
Long-term payables
Long-term salary payable to staff and
17,938,177.86 12,252,657.36
workers
Estimated liabilities 98,094,210.40 78,650,466.48
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Deferred income 17,568,648.59 18,275,808.90
Deferred income tax liabilities 13,919,737.18 16,915,692.91
Other non-current liabilities
Total non-current liabilities 196,613,702.28 350,241,293.13
Total Liabilities 1,942,308,852.81 1,871,433,215.76
Owners' equity:
Share capital 1,545,126,957.00 1,838,647,096.00
Other equity instruments
Of which: preferred stock
Perpetual debt
Capital reserve 4,085,401,043.51 3,862,377,838.84
Minus: treasury shares 79,406,925.60 160,088,925.60
Other comprehensive income 28,922,999.01 24,971,085.32
Special reserves
Surplus reserve 51,830,974.45 51,830,974.45
General risk preparation
undistributed profit -1,153,474,999.05 -1,280,673,461.14
Total equity attributable to owners of
4,478,400,049.32 4,337,064,607.87
parent company
Minority shareholder interest 64,303,661.25 65,018,333.68
Total owner's equity 4,542,703,710.57 4,402,082,941.55
Total Liabilities and Owner's Equity 6,485,012,563.38 6,273,516,157.31
Legal representative: Tang Zhuolin Chief in charge of accounting work: Qiu Yezhi Head of accounting institution: Qiu Yezhi
2.Parent Company Balance Sheet
Unit: yuan
Item June 30, 2020 December 31, 2019
Current assets:
Monetary funds 1,501,340,503.96 1,899,380,375.38
Transactional financial assets 1,493,417,186.84 1,163,000,000.00
Derivative financial assets
Notes receivable
Accounts receivable 111,962,124.93 151,096,214.10
Receivable financing 37,585,033.47 51,139,322.12
Advance payment 4,221,561.72 3,233,763.27
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Other receivables 47,847,407.67 36,670,496.12
Of which: interest receivable 1,694,150.03
Dividend receivable 12,264,643.27
Inventory 131,753,806.72 111,225,290.10
Contract assets
Holding assets for sale
Non current assets due within one year 356,983.48
Other current assets 89,518,896.49 4,961,417.06
Total current assets 3,417,646,521.80 3,421,063,861.63
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 449,097,520.04 439,638,782.00
Investment in other equity instruments
Other non-current financial assets
Investment real estate
Fixed assets 333,420,698.22 340,791,611.76
Project under construction 211,656.67 83,070.80
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 59,435,044.45 60,733,612.10
Development expenditure
Goodwill
Long-term prepaid expenses 3,140,484.58 3,335,014.92
Deferred income tax assets 6,190,965.18 4,923,465.18
Other non-current assets 585,189.00 585,189.00
Total non-current assets 852,081,558.14 850,090,745.76
Total assets 4,269,728,079.94 4,271,154,607.39
Current liabilities:
Short-term loan 90,000,000.00
Transactional financial liabilities
Derivative financial liabilities
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Notes payable 42,427,217.57 43,843,859.51
Accounts payable 67,256,660.67 70,687,704.41
Advance payment 17,451,789.10
Contract liabilities 30,598,160.14
Salary payable to staff and workers 12,411,500.40 26,144,254.56
Taxes payable 3,750,126.46 1,921,575.57
Other payables 55,517,138.57 50,214,415.95
Of which: interest payable
Dividend payable
Holding liabilities for sale
Non-current liabilities due within one
year
Other current liabilities
Total current liabilities 211,960,803.81 300,263,599.10
Non-current liabilities:
Long-term loan
Bonds payable
Of which: preferred stock
Perpetual debt
Lease liability
Long-term payable
Long-term salary payable to staff and
workers
Estimated liability
Deferred income 13,865,301.66 14,423,631.66
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities 13,865,301.66 14,423,631.66
Total liabilities 225,826,105.47 314,687,230.76
Owner's equity:
Share capital 1,545,126,957.00 1,838,647,096.00
Other equity instruments
Of which: preferred stock
Perpetual debt
Capital reserve 3,831,614,807.09 3,608,591,602.42
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Minus: treasury shares 79,406,925.60 160,088,925.60
Other comprehensive income
Special reserve
Surplus reserve 51,830,974.45 51,830,974.45
Undistributed profit -1,305,263,838.47 -1,382,513,370.64
Total owner's equity 4,043,901,974.47 3,956,467,376.63
Total liabilities and owners' equity 4,269,728,079.94 4,271,154,607.39
3.Consolidated Income Statement
Unit: yuan
For the six-month period ended June 30, For the six-month period ended June 30,
Item
2020 2019
1. Total operating income 1,177,491,225.13 4,391,349,294.89
Of which: operating income 1,177,491,225.13 4,391,349,294.89
Interest income
Premiums earned
Fee and commission income
2. Total operating cost 1,094,590,537.26 4,126,558,011.79
Of which: operating cost. 841,826,823.84 3,696,850,553.46
Interest expense.
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. 5,688,141.92 12,523,381.19
selling expenses. 91,295,589.80 194,155,656.79
Administrative expenses. 122,309,575.89 151,165,409.76
Research and development expenses. 35,204,923.99 58,949,248.90
Financial expenses. -1,734,518.18 12,913,761.69
Of which: interest expense. 6,239,583.43 19,117,767.18
Interest income. 11,409,249.10 12,761,403.50
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Plus: other income. 7,097,271.94 3,531,512.52
Investment income (loss with "-" sign). 32,724,984.33 10,101,832.28
Of which: the return on investment in
23,671.37 538,060.82
collaborative ventures and joint ventures.
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).
Fair value change income (loss with "-"
13,309,111.52
sign).
Loss of credit impairment (loss is listed
358,541.25 -39,443,469.18
with "-" sign).
Loss on impairment of assets (loss with
-2,978,396.97 3,093,106.42
"-" sign).
Income from asset disposal (loss with "-"
1,972.08 -408,669.80
sign).
3 Operating profit (losses are listed with
133,414,172.02 241,665,595.34
"-" sign).
Plus: non-operating income. 176,776.93 9,972,949.51
Minus: non-operating expenses. 1,464,849.29 2,600,939.94
4 The total profit (the total loss shall be
132,126,099.66 249,037,604.91
filled in with the sign "-").
Minus: income tax expenses. 5,642,310.00 65,188,292.02
5. Net profit (net loss is listed with "-"
126,483,789.66 183,849,312.89
sign).
(1) Classified by business sustainability.
1. Net profit from continuing operations
(net loss with "-" sign).
2.Net profit from termination of
operation (net loss with "-" sign).
(2) Classification according to
ownership.
1.Net profit attributable to the owner of
127,198,462.09 182,391,136.39
the parent company.
2.Minority shareholders' profit and loss. -714,672.43 1,458,176.50
6.Net after tax of other comprehensive 3,951,913.69 -257,578.17
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income.
Net after tax of other comprehensive
income attributable to the owner of the 3,951,913.69 -257,578.17
parent company.
(1) other comprehensive income that
65,719.32
cannot be reclassified into profit or loss.
1. Re-measure the change in the benefit
65,719.32
plan.
Other comprehensive income that cannot
be transferred to profit or loss under the
equity method.
3. Changes in fair value of investments in
other equity instruments.
4. Fair value change of enterprise's own
credit risk.
5.Other.
(2) Other comprehensive income
3,886,194.37 -257,578.17
reclassified into profit or loss.
1. Other comprehensive income that can
be transferred to profit or loss under the
equity method.
2.Changes in fair value of other debt
investments.
3.The amount of financial assets
reclassified to other comprehensive
income.
4.Provision for credit impairment of other
debt investments.
5.Cash flow hedging reserve.
6.Translation difference of foreign
3,886,194.37 -257,578.17
currency financial statements.
7.Other.
Net after tax of other consolidated
income attributable to minority
shareholders.
7 Total comprehensive income. 130,435,703.35 183,591,734.72
Total consolidated income attributable to
131,150,375.78 182,133,558.22
the owner of the parent company.
Total consolidated income attributable to -714,672.43 1,458,176.50
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minority shareholders.
8. Earnings per share:
(1) Basic earnings per share. 0.08 0.10
(2) Diluted earnings per share 0.08 0.10
In the case of a business merger under the same control in the current period, the net profit realized by the merged party before the
merger is: yuan, and the net profit realized by the merged party in the previous period is: yuan.
Legal representative: Tang Zhuolin chief in charge of accounting work: Qiu Yizhi head of accounting institution: Qiu Yizhi
4. Parent company profit statement
Unit: yuan
For the six-month period ended June 30, For the six-month period ended June 30,
Item
2020 2019
I. Operating income 159,641,747.94 145,408,081.79
Minus: operating cost 94,695,220.31 95,186,297.55
Taxes and surcharges 3,903,443.82 3,143,128.47
Selling expenses 10,202,503.51 11,185,492.45
Administrative expenses 40,321,247.10 39,890,833.58
Research and development expenses 9,543,406.45 6,236,439.17
Financial expenses -4,909,234.03 -5,002,130.56
Of which: interest expense 897,594.00 3,750,363.67
Interest income 6,338,571.34 9,146,694.77
Plus: other income 4,597,985.41 2,637,630.00
Investment income (loss with "-" sign) 51,493,566.58 9,507,895.91
Of which: the return on investment in
collaborative ventures and joint 23,671.37 551,059.52
ventures
Termination of recognition of gains on
financial assets measured at amortised
cost (loss with "-" sign)
Net exposure hedging gain (loss with
"-" sign)
Fair value change income (loss with "-"
13,417,186.84
sign)
Loss of credit impairment (loss is listed
-1,857,481.56 519,758.39
with "-" sign)
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Loss on impairment of assets (loss with
"-" sign)
Income from asset disposal (loss with
2,981.92
"-" sign)
2. Operating profit (loss shall be listed
77,251,381.17 7,436,287.35
with "-" sign)
Plus: non-operating income 4,447.22 79,137.45
Minus: non-operating expenses 1,273,796.22 683,006.13
3. The total profit (the total loss shall be
75,982,032.17 6,832,418.67
filled in with the sign "-")
Minus: income tax expenses -1,267,500.00 1,398,230.98
4. Net profit (net loss is listed with "-"
77,249,532.17 5,434,187.69
sign)
(1) Net profit from continuing operation
(net loss with "-" sign)
(2) Net profit from termination of
operation (net loss with "-" sign)
5. Net after tax of other comprehensive
income
(1) Other comprehensive income that
cannot be reclassified into profit or loss
1. Re-measure the change in the benefit
plan
2 Other comprehensive income that
cannot be transferred to profit or loss
under the equity method
3. Changes in fair value of investments
in other equity instruments
4. Fair value change of enterprise's own
credit risk
5. Other
(2) other comprehensive income
reclassified into profit or loss
1. Other comprehensive income that can
be transferred to profit or loss under the
equity method
2 Changes in fair value of other debt
investments
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3.The amount of financial assets
reclassified to other comprehensive
income.
4.Provision for credit impairment of
other debt investments.
5.Cash flow hedging reserve.
6.Translation difference of foreign
currency financial statements.
7.Other.
6. Total comprehensive income 77,249,532.17 5,434,187.69
7. Earnings per share:
(1) Basic earnings per share
(2) Diluted earnings per share
5. Consolidated statement of cash flows
Unit: yuan
For the six-month period ended June 30, For the six-month period ended June 30,
Item
2020 2019
Cash flow generated by business
activities:
Cash received from the sale of goods
1,418,765,853.87 3,594,432,732.45
and the provision 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.
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Net increase in funds for repurchase
business.
Net cash received by agents buying and
selling securities.
Tax refund received. 19,045,479.18 25,568,755.13
Receipt of other cash related to business
31,236,687.94 21,351,600.88
activities.
Subtotal cash inflows from operating
1,469,048,020.99 3,641,353,088.46
activities.
Cash paid for the purchase of goods and
926,364,370.99 1,331,701,848.31
services.
Net increase in customer loans and
advances.
Net increase in central bank and
interbank deposits.
Cash to pay the indemnity of the
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 paid to and for employees. 245,758,501.22 322,880,132.50
Taxes and fees paid. 48,319,826.97 414,487,266.58
Payment of other cash related to
219,195,912.49 153,043,089.10
business activities.
Subtotal cash outflow from operating
1,439,638,611.67 2,222,112,336.49
activities.
Net cash flow from operating activities. 29,409,409.32 1,419,240,751.97
2. Cash flow generated by investment
activities:
Recover the cash received from the
investment.
Cash received from investment income. 19,332,320.61 9,562,419.23
Net cash recovered from disposal of
fixed assets, intangible assets and other 40,024.97
long-term assets.
Disposal of net cash received by
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subsidiaries and other business units.
Receipt of other cash related to
4,827,403,841.13 50,200,000.00
investment activities.
Subtotal cash inflows from investment
4,846,736,161.74 59,802,444.20
activities.
Cash paid for the purchase and
construction of fixed assets, intangible 86,047,976.06 23,967,938.26
assets and other long-term assets.
Cash paid for investment. 1,183,245.00
Net increase in pledged loans.
Obtain net cash paid by subsidiaries and
93,914,557.59
other business units.
Payment of other cash related to
5,144,300,000.00 790,000,000.00
investment activities.
Subtotal cash outflow from investment
5,231,531,221.06 907,882,495.85
activities.
Net cash flow from investment
-384,795,059.32 -848,080,051.65
activities.
3 Cash flow generated by fund-raising
activities:
Absorb the cash received by the
22,600,000.00
investment.
Of which: the subsidiary absorbs the
cash received from the investment of
minority shareholders.
Cash received for obtaining loans. 75,707,759.83 22,328,668.37
Receipt of other cash related to
45,300,545.99
fund-raising activities.
Subtotal cash inflows from fund-raising
98,307,759.83 67,629,214.36
activities.
Cash paid to repay debts. 159,171,545.53 238,056,448.42
Cash paid for the distribution of
6,453,887.85 7,315,528.05
dividends, profits, or interest payments.
Of which: dividends and profits paid by
subsidiaries to minority shareholders.
Payment of other cash related to
290,000,000.00 1,388,396,306.96
fund-raising activities.
Subtotal cash outflow from fund-raising 455,625,433.38 1,633,768,283.43
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activities.
Net cash flow from fund-raising
-357,317,673.55 -1,566,139,069.07
activities.
4. The impact of exchange rate changes
4,994,436.04 9,209,649.16
on cash and cash equivalents.
5.Net increase in cash and cash
-707,708,887.51 -985,768,719.59
equivalents.
Plus: balance of cash and cash
equivalents at the beginning of the 2,226,724,737.39 2,057,997,442.35
period.
6 Balance of cash and cash equivalents
1,519,015,849.88 1,072,228,722.76
at the end of the period
6.Parent company cash flow statement
Unit: yuan
For the six-month period ended June 30, For the six-month period ended June 30,
Item
2020 2019
Cash flow generated by business
activities:
Cash received from the sale of goods
235,170,271.11 214,123,219.27
and the provision of services.
Tax refund received. 6,177,627.73 11,554,453.18
Receipt of other cash related to business
12,900,250.98 8,038,370.68
activities.
Subtotal cash inflows from operating
254,248,149.82 233,716,043.13
activities.
Cash paid for the purchase of goods and
108,542,176.20 138,894,321.46
services.
Cash paid to and for employees. 64,093,135.32 48,334,304.16
Taxes and fees paid. 5,071,412.19 10,335,422.77
Payment of other cash related to
111,289,069.98 33,963,558.43
business activities.
Subtotal cash outflow from operating
288,995,793.69 231,527,606.82
activities.
Net cash flow from operating activities. -34,747,643.87 2,188,436.31
2. Cash flow generated by investment
activities:
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Recover the cash received from the
investment.
Cash received from investment income. 25,936,359.29 8,956,836.39
Net cash recovered from disposal of
fixed assets, intangible assets and other
long-term assets.
Disposal of net cash received by
subsidiaries and other business units.
Receipt of other cash related to
4,783,300,000.00 200,000.00
investment activities.
Subtotal cash inflows from investment
4,809,236,359.29 9,156,836.39
activities.
Cash paid for the purchase and
construction of fixed assets, intangible 1,144,384.43 5,062,235.32
assets and other long-term assets.
Cash paid for investment.
Obtain net cash paid by subsidiaries and
other business units.
Payment of other cash related to
5,100,300,000.00 770,000,000.00
investment activities.
Subtotal cash outflow from investment
5,101,444,384.43 775,062,235.32
activities.
Net cash flow from investment
-292,208,025.14 -765,905,398.93
activities.
3. Cash flow generated by fund-raising
activities:
Absorb the cash received by the
22,600,000.00
investment.
Cash received for obtaining loans.
Receipt of other cash related to
fund-raising activities.
Subtotal cash inflows from fund-raising
22,600,000.00
activities.
Cash paid to repay debts. 90,000,000.00 50,000,000.00
Cash paid for the distribution of
897,594.00 3,308,616.65
dividends, profits, or interest payments.
Payment of other cash related to
290,000,000.00 74,544,106.96
fund-raising activities.
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Subtotal cash outflow from fund-raising
380,897,594.00 127,852,723.61
activities.
Net cash flow from fund-raising
-358,297,594.00 -127,852,723.61
activities.
4. The impact of exchange rate changes
-564,662.47
on cash and cash equivalents.
5.Net increase in cash and cash
-685,817,925.48 -891,569,686.23
equivalents.
Plus: balance of cash and cash
equivalents at the beginning of the 1,770,491,895.62 1,432,283,149.36
period.
6. Balance of cash and cash equivalents
1,084,673,970.14 540,713,463.13
at the end of the period
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7.Consolidated statement of changes in owners' equity
Current amount
Unit: yuan
For the six-month period ended June 30, 2020
Belong to the owner's equity of the parent company
Other equity
instruments Minority
Item Speci General
Minus: Other shareholder Total owner's
Preferr Capital al Surplus risk Undistributed Othe
Share capital Perpetu Othe treasury comprehensi In total s' rights and equity
reserve reserv reserve preparati profit r
ed shares ve income interests
al debt r e on
stock
I.The
balance at 1,838,647,096. 3,862,377,838. 160,088,925. 24,971,085. 51,830,974. -1,280,673,461 4,337,064,607. 65,018,333. 4,402,082,941.
the end of 00 84 60 32 45 .14 87 68 55
last year
Plus:
accounting
policy
change
Prophase
error
correction
Business
merger
103
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under the
same control
other
2 Balance at
the
1,838,647,096. 3,862,377,838. 160,088,925. 24,971,085. 51,830,974. -1,280,673,461 4,337,064,607. 65,018,333. 4,402,082,941.
beginning of
00 84 60 32 45 .14 87 68 55
the current
year
3 The
amount of
change in
-293,520,139. 223,023,204.6 -80,682,000. 3,951,913.6 141,335,441.4 140,620,769.0
the current 127,198,462.09 -714,672.43
00 7 00 9 5 2
period (to be
filled in with
the sign "-")
(I) Total
3,951,913.6 131,150,375.7 130,435,703.3
consolidated 127,198,462.09 -714,672.43
9 8 5
income
(2) Owners'
investment
-293,520,139. 223,023,204.6 -80,682,000.
and 10,185,065.67 10,185,065.67
00 7 00
reduction of
capital
1. Common
stock
invested by
the owner
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2．Capital
invested by
holders of
other equity
instruments
3．The
amount of
share
-70,496,933.3 -80,682,000.
payment 10,185,066.67 10,185,066.67
3 00
included in
the owner's
equity
-293,520,139. 293,520,138.0
4．Other -1.00 -1.00
00 0
(3) Profit
distribution
1. Draw
surplus
reserve
2. Extract
general risk
preparednes
s
3. Allocation
to owners
(or
shareholders
)
105
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4．Other
(4) Internal
carry-over
of owners'
rights and
interests
1. Capital
reserve to
increase
capital (or
equity)
2. Transfer
of surplus
reserve to
capital (or
equity)
3. Surplus
reserve to
make up for
losses
4. Set the
amount of
changes in
the benefit
plan to carry
forward
retained
earnings
106
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5. Other
comprehensi
ve income
carried
forward
retained
earnings
6．Other
(5) Special
reserve
1. Current
extraction
2. Current
use
(6) Other
4. The
balance at
1,545,126,957. 4,085,401,043. 79,406,925.6 28,922,999. 51,830,974. -1,153,474,999 4,478,400,049. 64,303,661. 4,542,703,710.
the end of
00 51 0 01 45 .05 32 25 57
the current
period
Previous period amount
Unit: yuan
For the six-month period ended June 30, 2019
Belong to the owner's equity of the parent company Minority
Item Total owner's
Other equity Capital Minus: Other Speci Surplus General Undistributed Othe shareholder
Share capital In total equity
instruments reserve treasury comprehensi al reserve risk profit r s' rights and
107
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Preferr shares ve income reserv preparati interests
Perpetu Othe
ed e on
al debt r
stock
I. The
balance at 1,838,647,096. 5,298,075,978. 63,597,455.7 20,300,909. 51,830,974. -3,118,692,266. 4,026,565,236. 5,667,911.1 4,032,233,147.
the end of 00 80 5 34 45 64 20 1 31
last year
Plus:
accounting
policy
change
Prophase
error
correction
Business
merger
under the
same control
other
2 Balance at
the
1,838,647,096. 5,298,075,978. 63,597,455.7 20,300,909. 51,830,974. -3,118,692,266. 4,026,565,236. 5,667,911.1 4,032,233,147.
beginning of
00 80 5 34 45 64 20 1 31
the current
year
3 The
amount of 73,333,814.7 133,675,776.9 57,747,087. 191,422,864.4
24,876,033.54 -257,578.17 182,391,136.39
change in 9 7 52 9
the current
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period (to be
filled in with
the sign "-")
(I) Total
182,133,558.2 1,458,176.5 183,591,734.7
consolidated -257,578.17 182,391,136.39
2 0 2
income
(2) Owners'
investment
73,333,814.7 -73,348,481.6 56,648,001. -16,700,480.5
and -14,666.82
9 1 09 2
reduction of
capital
1. Common
stock
invested by
the owner
2．Capital
invested by
holders of
other equity
instruments
3．The
amount of
share
payment
included in
the owner's
equity
4．Other -14,666.82 73,333,814.7 -73,348,481.6 56,648,001. -16,700,480.5
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9 1 09 2
(3) Profit
distribution
1. Draw
surplus
reserve
2. Extract
general risk
preparednes
s
3. Allocation
to owners
(or
shareholders
)
4．Other
(4) Internal
carry-over
of owners'
rights and
interests
1. Capital
reserve to
increase
capital (or
equity)
2. Transfer
of surplus
110
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reserve to
capital (or
equity)
3. Surplus
reserve to
make up for
losses
4. Set the
amount of
changes in
the benefit
plan to carry
forward
retained
earnings
5. Other
comprehensi
ve income
carried
forward
retained
earnings
6．Other
(5) Special
reserve
1. Current
extraction
2. Current
111
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use
(6) Other 24,890,700.36 24,890,700.36 -359,090.07 24,531,610.29
4.The
balance at
1,838,647,096. 5,322,952,012. 136,931,270. 20,043,331. 51,830,974. -2,936,301,130 4,160,241,013. 63,414,998. 4,223,656,011.
the end of
00 34 54 17 45 .25 17 63 80
the current
period
8.Statement of changes in owners' equity of the parent company
Current amount
Unit: yuan
For the six-month period ended June 30, 2020
Other equity instruments Other
Item Minus: Special Surplus Undistributed Total owner's
Share capital Preferred Perpetual Capital reserve comprehensive Other
Other treasury shares reserve reserve profit equity
stock debt income
I. The balance at the
1,838,647,096.00 3,608,591,602.42 160,088,925.60 51,830,974.45 -1,382,513,370.64 3,956,467,376.63
end of last year
Plus: accounting
policy change
Prophase error
correction
Other
2 Balance at the
beginning of the 1,838,647,096.00 3,608,591,602.42 160,088,925.60 51,830,974.45 -1,382,513,370.64 3,956,467,376.63
current year
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3 The amount of
change in the current
-293,520,139.00 223,023,204.67 -80,682,000.00 77,249,532.17 87,434,597.84
period (to be filled in
with the sign "-")
(1) Total consolidated
77,249,532.17 77,249,532.17
income
(2) Owners'
investment and -293,520,139.00 223,023,204.67 -80,682,000.00 10,185,065.67
reduction of capital
1. Common stock
invested by the owner
2. Capital invested by
holders of other
equity instruments
3. The amount of
share payment
-70,496,933.33 -80,682,000.00 10,185,066.67
included in the
owner's equity
4．Other -293,520,139.00 293,520,138.00 -1.00
(3) Profit distribution
1. Draw surplus
reserve
2. Allocation to
owners (or
shareholders)
3．Other
(4) Internal carry-over
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of owners' rights and
interests
1. Capital reserve to
increase capital (or
equity)
2. Transfer of surplus
reserve to capital (or
equity)
3. Surplus reserve to
make up for losses
4. Set the amount of
changes in the benefit
plan to carry forward
retained earnings
5. Other
comprehensive
income carried
forward retained
earnings
6．Other
(5) Special reserve
1. Current extraction
2. Current use
(6) Other
4 The balance at the
end of the current 1,545,126,957.00 3,831,614,807.09 79,406,925.60 51,830,974.45 -1,305,263,838.47 4,043,901,974.47
period
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Previous period amount
Unit: yuan
For the six-month period ended June 30, 2019
Other equity instruments Other
Item Minus: Special Surplus Undistributed Total owner's
Share capital Preferred Perpetual Capital reserve comprehensive Other
Other treasury shares reserve reserve profit equity
stock debt income
I. The balance at the
1,838,647,096.00 5,055,665,185.99 63,597,455.75 51,830,974.45 -3,502,634,972.72 3,379,910,827.97
end of last year
Plus: accounting
policy change
Prophase error
correction
Other
2 Balance at the
beginning of the 1,838,647,096.00 5,055,665,185.99 63,597,455.75 51,830,974.45 -3,502,634,972.72 3,379,910,827.97
current year
3 The amount of
change in the
current period (to be -14,666.82 73,333,814.79 5,434,187.69 -67,914,293.92
filled in with the
sign "-")
(1) Total
5,434,187.69 5,434,187.69
consolidated income
(2) owners'
-14,666.82 73,333,814.79 -73,348,481.61
investment and
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reduction of capital
1. Common stock
invested by the
owner
2. Capital invested
by holders of other
equity instruments
3. The amount of
share payment
included in the
owner's equity
4．Other -14,666.82 73,333,814.79 73,319,147.97
Profit distribution
1. Draw surplus
reserve
2. Allocation to
owners (or
shareholders)
3．Other
(4)Internal
carry-over of
owners' rights and
interests
1. Capital reserve to
increase capital (or
equity)
2.Transfer of
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surplus reserve to
capital (or equity)
3. Surplus reserve to
make up for losses
4. Set the amount of
changes in the
benefit plan to carry
forward retained
earnings
5.Other
comprehensive
income carried
forward retained
earnings
6．Other
(5) Special reserve
1. Current
extraction
2. Current use
(6) other
4 The balance at the
end of the current 1,838,647,096.00 5,055,650,519.17 136,931,270.54 51,830,974.45 -3,497,200,785.03 3,311,996,534.05
period
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III. Basic information of the company
Guangdong Dongfang Precision Science& Technology Co., Ltd. (hereinafter referred to as "the Company" or
“Company"), formerly known as Nanhai Dongfang Carton Machinery Industry Co., Ltd., was established on
December 9, 1996. and obtained the registration number 440682000040868 "Enterprise Legal Person Business
License". With the approval of the Securities Regulatory Commission of China Securities Regulatory
Commission [2011] No. 1237 on Approval of the initial Public offering of Guangdong Dongfang Precision
Science&Technology Co., Ltd., the Company issued RMB common stock shares to the public and was listed on
the Shenzhen Stock Exchange in August 2011. Since 2016, the company has adopted the unified social credit
code: 914406002318313119.
The company belongs to the manufacturing industry-special equipment manufacturing industry.
In January 2020, the Company repurchased and cancelled a total of 293,520,139 shares of performance
compensation shares undertaken by Pride's original shareholders. After the completion of the implementation, the
total share capital of the company was changed from 1,838,647,096 shares to 1,545,126,957 shares. As of June 30,
2020, the Company has issued a total of 1,545,126,957 shares. Registration address: No. 2 Qiangshi Road,
Shishan Town, Nanhai District, Foshan City, Foshan City, Guangdong Province (Office Building, Factory A, B),
Headquarter address: No. 2 Qiangshi Road, Shishan Town, Nanhai District, Foshan City, Guangdong Province.
The company's main business scope is: processing, manufacturing, sales: carton printing presses and accessories,
general machinery and accessories, providing after-sales services, brokerage services, technical consulting
services, installation services; import and export of goods, technology import and export (except for projects
prohibited by laws and administrative regulations; projects restricted by laws and administrative regulations must
obtain permission before operating).
The actual control of the company is Tang Zhuolin and Tang Zhuomian.
This financial statement has been approved by all the directors of the company on August 27, 2020.
As of 30 June, 2020, the subsidiaries within the scope of the consolidated financial statements of the Company are
as follows:
Subsidiary name
Dongfang Precision (Hong Kong) Co., Ltd. (hereinafter referred to as "Dongfang Precision (Hong Kong)").
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Dong Fang Precision (Netherland) Cooperatief U.A.(hereinafter referred to as "Dongfang Precision (Netherlands)")
Guangdong Fossberg Intelligent equipment Co., Ltd. (hereinafter referred to as "Fosber Asia").
Suzhou Shunyi Investment Co., Ltd. (hereinafter referred to as "Shunyi Investment").
As of 30 June 2020, the subsidiaries indirectly held by the Company within the consolidated financial statements
are as follows:
Name of subsidiary indirectly held.
Fosber S.p.A.(hereinafter referred to as "Fosber Group").
Fosber America, Inc.(hereinafter referred to as "Fosber USA").
Fosber (Machinery) Tianjin Co., Ltd. (hereinafter referred to as "Fosber Tianjin").
Suzhou Parsun Power Machinery Co., Ltd. (hereinafter referred to as "Parsun Power").
EDF EUROPE S.R.L (hereinafter referred to as "Italy EDF").
Tiruna Group Industrial, S.L. (hereinafter referred to as "Tiruna Group").
Tiruna S.L.U.
Tratatamientos Industriales Tiruna S.A.U.
Tiruna Brazil
Tiruna France SARL
SCI Candan
Tiruna UK Ltd
Guangdong Tiruna
Tiruna America inc.(hereinafter referred to as "Tiruna USA")
QuantumCorrugated S.r.l. (hereinafter referred to as "Italy QCorr").
The scope and changes of the consolidated financial statements for the current period are detailed in this note
"VIII. Changes in the consolidated scope" and "IX. Interests in other subjects".
IV. The basis for the preparation of financial statements.
1. The basis of preparation
On the basis of continuous operation, according to the actual transactions and events, in accordance with the
Accounting Standards for Enterprises-Basic Standards issued by the Ministry of Finance and various specific
accounting standards, guidelines for the application of accounting standards for enterprises, interpretation of
accounting standards for enterprises and other relevant provisions (hereinafter collectively referred to as
"accounting standards for enterprises"), And the disclosure provisions of the China Securities Regulatory
Commission Rules No. 15 on Information Disclosure of Companies Issuing Securities Publicly-General Provisions
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on Financial Reports for the preparation of financial statements.
2. Continuous operation.
There are no matters affecting the continuing operation ability of the Company, and it is expected that the Company
will have the continuing operation ability in the next 12 months. The financial statements of the Company are
prepared on the basis of the continuing operation assumption.
V Important accounting policies and accounting estimates.
Tips for specific accounting policies and accounting estimates:
The following disclosures have covered the specific accounting policies and accounting estimates formulated by the
Company according to the characteristics of actual production and operation. See "V (25) Income" in this note for
details.
1. Declaration of compliance with accounting standards for enterprises
The financial statements prepared by the company meet the requirements of enterprise accounting standards and
truly and completely reflect the company's financial situation, operating results, cash flow and other relevant
information during the reporting period.
2. Accounting period.
It is a fiscal year from January 1 to December 31 of the Gregorian calendar.
3. Business cycle.
The business cycle of our company is 12 months.
4. Bookkeeping standard currency
Company name Bookkeeping standard currency
Fosber Group EURO
Fosber US US DOLLARS
Dongfang Precision (Hongkong) US DOLLARS
Dongfang Precision (Netherland) EURO
Italy EDF EURO
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Tiruna Group EURO
Tiruna S.L.U. EURO
Tratatamientos Industriales Tiruna S.A.U. EURO
Tiruna Brazil Real
Tiruna France SARL EURO
SCI Candan EURO
Tiruna UK Ltd British Pound
Tiruna US US DOLLARS
Italy QCorr EURO
5. The accounting treatment of business combination under the same control and non-same control.
Business merger under the same control: the assets and liabilities acquired by the merging party in the business
combination shall be measured according to the book value of the assets and liabilities of the merged party
(including the goodwill formed by the acquisition of the merged party by the ultimate controlling party) in the
consolidated financial statements of the ultimate controlling party on the merger date. The difference between the
book value of the net assets obtained in the merger and the book value of the consolidated consideration paid (or the
total par value of the shares issued) shall be adjusted, the equity premium in the capital reserve shall be adjusted, and
if the equity premium in the capital reserve is insufficient to be offset, the retained earnings shall be adjusted.
Business merger under different control: on the date of purchase, the assets paid and liabilities incurred or assumed
by the purchaser as consideration for the merger shall be measured at fair value, and the difference between the fair
value and its book value shall be recorded into the profits and losses of the current period. The difference of the fair
value share of the identifiable net assets obtained by the purchaser in the merger shall be recognized as goodwill if
the merger cost is greater than the fair value share of the identifiable net assets obtained in the merger; the merger
cost shall be less than the difference in the fair value share of the identifiable net assets acquired in the merger and
shall be recorded in the profits and losses of the current period.
The directly related expenses incurred for the business merger shall be recorded into the profits and losses of the
current period when they occur; the transaction costs for issuing equity securities or debt securities for the enterprise
merger shall be included in the initial recognition amount of the equity securities or debt securities.
6. The method of compiling consolidated financial statements.
1. Merge scope.
The consolidated scope of the consolidated financial statements is determined on the basis of control, which
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includes the Company and all subsidiaries.
2. Merge program.
The company prepares consolidated financial statements on the basis of the financial statements of itself and its
subsidiaries and on the basis of other relevant information. The company prepares consolidated financial
statements and regards the entire enterprise group as an accounting entity, in accordance with the recognition,
measurement and presentation requirements of the relevant enterprise accounting standards and in accordance
with unified accounting policies, reflect the overall financial position, operating results and cash flow of the
enterprise group.
If the accounting policies and accounting periods adopted by all subsidiaries included in the consolidated financial
statements are consistent with those of the company, if the accounting policies and accounting periods adopted by
the subsidiaries are inconsistent with those of the company, necessary adjustments shall be made in accordance
with the company's accounting policies and accounting periods when preparing the consolidated financial
statements. For subsidiaries acquired by non-merger under the same control, the financial statements shall be
adjusted on the basis of the fair value of identifiable net assets on the date of purchase. For a subsidiary acquired
by a merger under the same control, the financial statements shall be adjusted on the basis of the book value of its
assets and liabilities (including the goodwill formed by the acquisition of the subsidiary by the ultimate
controlling party) in the financial statements of the ultimate controlling party.
The minority shareholders' shares of subsidiary owners' equity, current net profit and loss and current
comprehensive income are separately shown under the owner's equity item in the consolidated balance sheet,
under the net profit item in the consolidated income statement and under the total comprehensive income item.
The current loss shared by the minority shareholders of the subsidiary exceeds the balance formed by the minority
shareholders' share in the initial owner's equity of the subsidiary, deducting the minority shareholders' rights and
interests.
(1) Increase the number of subsidiaries or businesses.
During the reporting period, if a subsidiary or business is increased as a result of a business merger under the
same control, the beginning of the consolidated balance sheet shall be adjusted, and the income, expenses and
profits of the subsidiary or business combination from the beginning of the current period to the end of the
reporting period shall be included in the consolidated income statement. The cash flow from the beginning of the
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current period to the end of the reporting period of the subsidiary or business combination shall be included in the
consolidated cash flow statement, and the relevant items of the comparative statement shall be adjusted as if the
combined report subject has been in existence since the final control party began to control.
If it is possible to control the investee under the same control due to additional investment and other reasons, the
parties involved in the merger shall be deemed to adjust in their current state when the final controlling party
begins to control. For equity investments held prior to the acquisition of control of the merged party, the relevant
profit and loss, other comprehensive income and other changes in net assets have been recognized between the
date of acquisition of the original equity and the date of control of the merged party and the merged party, the
changes in profit and loss, other comprehensive income and other net assets have been offset against the initial
retained earnings or current profits and losses in the comparative statement period, respectively.
During the reporting period, if a subsidiary or business is increased as a result of a merger not under the same
control, the beginning of the consolidated balance sheet period shall not be adjusted; the income, expenses and
profits of the subsidiary or business from the purchase date to the end of the reporting period shall be included in
the consolidated income statement; the cash flow of the subsidiary or business from the purchase date to the end
of the reporting period shall be included in the consolidated cash flow statement.
If it is possible to control the investee who is not under the same control due to additional investment and other
reasons, the company shall re-measure the equity held before the purchase date according to the fair value of the
equity on the purchase date, the difference between the fair value and its book value shall be included in the
investment income of the current period. Where the equity held by the acquiree before the date of purchase
involves changes in other comprehensive income under the equity method and other owners' equity except net
profit and loss, other comprehensive income and profit distribution, the related changes in other comprehensive
income and other owners' equity shall be converted into the investment income of the current period on the date of
purchase, Except for other comprehensive income arising from the re-measurement of net liabilities or changes in
net assets of the benefit plan by the invested party.
(2) Disposal of subsidiaries or businesses.
①General treatment methods.
If the company disposes of a subsidiary or business during the reporting period, the income, expenses and profits of
the subsidiary or business from the beginning of the business period to the disposal date shall be included in the
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consolidated income statement; the cash flow from the beginning of the business period to the disposal date of the
business period shall be included in the consolidated cash flow statement.
When the control over the investee is lost due to the disposal of part of the equity investment or other reasons, the
company shall re-measure the remaining equity investment after disposal according to its fair value at the date of
loss of control. The sum of the consideration obtained from the disposal of the shares and the fair value of the
remaining shares minus the difference between the share of the net assets and the goodwill that should be
continuously calculated by the original subsidiary from the date of purchase or merger, it shall be included in the
investment income of the period in which the control is lost. Other comprehensive income related to the equity
investment of the original subsidiary or other changes in owners' equity except net profit and loss, other
comprehensive income and profit distribution shall be converted into current investment income when control is lost,
with the exception of other comprehensive income arising from the re-measurement of the net liabilities or changes
in net assets of the benefit plan of the invested party.
If the company loses control due to the decrease in the proportion of shares held by the company as a result of the
increase in capital of the subsidiary by other investors, the accounting treatment shall be carried out in accordance
with the above-mentioned.
② Disposal of subsidiaries step by step.
If the equity investment in a subsidiary is disposed of step by step through multiple transactions until the loss of
control, the terms, conditions and economic impact of the disposal of each transaction in the equity investment of
the subsidiary conform to one or more of the following situations, it is usually indicated that multiple transactions
should be treated as a package of transactions:
I. These transactions are entered into at the same time or taking into account the influence of each other;
II. These transactions as a whole can achieve a complete business result;
III. The occurrence of a transaction depends on the occurrence of at least one other transaction;
Ⅳ. A transaction is uneconomical on its own, but it is economical when it is considered with other transactions.
Where the disposal of each transaction of equity investment in a subsidiary until the loss of control belongs to a
package transaction, the company shall treat each transaction as a transaction of disposal of the subsidiary and loss
of control; However, before the loss of control, the difference between the disposal price and the share of the net
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assets of the subsidiary corresponding to the disposal investment shall be recognized as other comprehensive
income in the consolidated financial statements, when the loss of control is transferred to the profit or loss of the
period in which the control is lost.
Where the disposal of all transactions on the equity investment of a subsidiary until the loss of control is not a
package transaction, before the loss of control, accounting treatment shall be carried out according to the relevant
policies of partial disposal of the equity investment of the subsidiary without the loss of control; in the event of loss
of control, accounting treatment shall be carried out in accordance with the general treatment method of disposing of
the subsidiary.
(3) Purchase minority shares in subsidiaries.
The difference between the company's newly acquired long-term equity investment in the purchase of minority
shares and the share of net assets that should be continuously calculated by the subsidiary from the date of purchase
(or merger date), adjust the equity premium in the capital reserve in the consolidated balance sheet, and if the equity
premium in the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
(4) Partial disposal of equity investment in subsidiaries without losing control.
Without losing control, the difference between the disposal price obtained from the partial disposal of the long-term
equity investment in the subsidiary and the disposal of the long-term equity investment corresponds to the share of
the net assets continuously calculated by the subsidiary since the date of purchase or merger, the equity premium in
the capital reserve in the consolidated balance sheet shall be adjusted, and if the equity premium in the capital
reserve is insufficient to be offset, the retained earnings shall be adjusted.
7. Classification of joint venture arrangement and accounting treatment of joint operation.
Joint arrangements are divided into joint operation and joint ventures.
When the company is a joint venture party to the joint venture arrangement, it is a joint operation when it enjoys the
relevant assets and bears the relevant liabilities of the joint venture arrangement.
The company recognizes the following items related to the share of interests in the joint operation, and carries out
accounting treatment in accordance with the provisions of the relevant accounting standards for enterprises:
(1) to recognize the assets held separately by the Company and the assets jointly held according to the share of the
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Company;
(2) to recognize the liabilities borne separately by the Company and the liabilities jointly borne according to the
share of the Company;
(3) to recognize the income generated from the sale of the company's share of joint operating output;
(4) to recognize the income generated by the joint operation from the sale of output according to the share of the
company;
(5) to recognize the expenses incurred separately and the expenses incurred by the joint operation according to the
share of the company.
The company's accounting policy on joint venture investment can be found in this note "V (13) Long-term equity
investment".
8. Criteria for determining cash and cash equivalents.
When preparing the statement of cash flows, the cash on hand of the company and the deposits that can be used for
payment at any time shall be recognized as cash. Investments with short term (due within three months from the date
of purchase), strong liquidity, easy to convert into known cash and low risk of value change are identified as cash
equivalents.
9. Conversion of foreign currency business and foreign currency statements.
1. Foreign currency business.
The foreign currency business uses the spot exchange rate on the date of the transaction as the conversion rate to
convert the amount of foreign currency into RMB for bookkeeping.
The balance of foreign currency monetary items on the balance sheet date is converted at the spot exchange rate on
the balance sheet date, and the resulting exchange differences, except for the exchange differences arising from
special foreign currency loans related to the acquisition and construction of assets that meet the capitalization
conditions, shall be recorded into the profits and losses of the current period except for the exchange differences
arising from special foreign currency loans related to the acquisition and construction of assets that meet the
capitalization conditions in accordance with the principle of capitalization of borrowing costs.
2. Conversion of foreign currency financial statements.
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The assets and liabilities in the balance sheet shall be converted at the spot exchange rate on the balance sheet date;
except for the "undistributed profit" items, other items shall be converted at the spot exchange rate at the time of
occurrence. The income and expense items in the income statement shall be converted at the spot exchange rate on
the date of the transaction.
When disposing of an overseas operation, the difference in the translation of the foreign currency financial
statements related to the overseas operation shall be transferred from the owner's equity project to the disposal of the
profits and losses of the current period.
10. Financial instruments.
Financial instruments include financial assets, financial liabilities and equity instruments.
1. Classification of financial instruments.
According to the business model of the Company's management of financial assets and the contractual cash flow
characteristics of financial assets, at the time of initial recognition, financial assets are classified as financial assets
measured at amortised cost, financial assets (debt instruments) measured at fair value and their changes included in
other comprehensive income, and financial assets measured at fair value and their changes included in the profits
and losses of the current period.
The business model aims to collect the contract cash flow and the contract cash flow is only the payment of principal
and interest based on the outstanding principal amount, which is classified as financial assets measured at amortised
cost. Where the business model aims to receive both the contractual cash flow and the sale of the financial asset, and
the contractual cash flow is only the payment of principal and interest based on the outstanding principal amount, it
is classified as financial assets (debt instruments) that are measured at fair value and whose changes are included in
other comprehensive income; other financial assets are classified as financial assets measured at fair value and
whose changes are included in the profits and losses of the current period.
For investments in non-transactional equity instruments, the Company determines at the initial recognition whether
they are designated as financial assets (equity instruments) that are measured at fair value and whose changes are
included in other comprehensive income. At the time of initial recognition, in order to eliminate or significantly
reduce accounting mismatch, financial assets can be designated as financial assets measured at fair value and whose
changes are included in the profits and losses of the current period.
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At the time of initial recognition, financial liabilities are classified as: financial liabilities measured at fair value and
their changes included in the profits and losses of the current period and financial liabilities measured at amortized
cost.
Financial liabilities that meet one of the following conditions may, at the time of initial measurement, be designated
as financial liabilities measured at fair value and whose changes are included in the profits and losses of the current
period:
1) this designation can eliminate or significantly reduce accounting mismatch.
2) to manage and evaluate the financial liability portfolio or the financial asset and financial liability portfolio on the
basis of fair value in accordance with the enterprise risk management or investment strategy set out in the official
written document, and report to key managers within the enterprise on this basis.
3) the financial liability includes embedded derivatives that need to be split separately.
2. Confirmation basis and Measurement method of Financial Instruments.
(I) Financial assets measured at amortized cost.
Financial assets measured at amortized cost, including notes receivable, accounts receivable, other receivables,
long-term receivables, debt investments, etc., are initially measured at fair value, and the relevant transaction costs
are included in the initial recognition amount; accounts receivable that does not include a significant financing
component and the company decides not to consider accounts receivable with financing components not exceeding
one year shall be initially measured at the contract transaction price.
The interest calculated by the effective interest rate method during the holding period shall be recorded in the profits
and losses of the current period.
At the time of recovery or disposal, the difference between the price obtained and the book value of the financial
asset shall be recorded into the profits and losses of the current period.
(2) Financial assets (debt instruments) that are measured at fair value and whose changes are included in other
comprehensive income.
Financial assets (debt instruments) measured at fair value and whose changes are included in other comprehensive
income, including accounts receivable financing, other debt investments, etc., shall be initially measured at fair
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value, and the relevant transaction costs shall be included in the initial recognition amount. The financial asset is
subsequently measured at fair value, and changes in fair value are included in other comprehensive income except
for interest, impairment losses or gains and exchange gains and losses calculated by the effective interest rate
method.
When the recognition is terminated, the accumulated gains or losses previously included in other comprehensive
income are transferred from other comprehensive income and included in the profits and losses of the current
period.
(3) Financial assets (equity instruments) that are measured at fair value and whose changes are included in other
comprehensive income.
Financial assets (equity instruments) measured at fair value and whose changes are included in other comprehensive
income, including investments in other equity instruments, shall be initially measured at fair value, and the relevant
transaction costs shall be included in the initial recognition amount. The financial assets are subsequently measured
at fair value, and changes in fair value are included in other comprehensive income. The dividends earned shall be
recorded in the profits and losses of the current period.
At the time of termination of recognition, the cumulative gains or losses previously included in other comprehensive
income are transferred from other comprehensive income and included in retained earnings.
(4) Financial assets measured at fair value and whose changes are included in the profits and losses of the current
period.
Financial assets measured at fair value and whose changes are included in the profits and losses of the current period
include transactional financial assets, derivative financial assets and other non-current financial assets, which are
initially measured at fair value, and the relevant transaction costs are recorded in the profits and losses of the current
period. The financial assets are subsequently measured at fair value, and the changes in fair value are recorded in the
profits and losses of the current period.
(5) Financial liabilities measured at fair value and whose changes are included in the profits and losses of the current
period.
Financial liabilities measured at fair value and whose changes are included in the profits and losses of the current
period include transactional financial liabilities, derivative financial liabilities, etc., which are initially measured at
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fair value, and the relevant transaction costs are recorded in the profits and losses of the current period. The financial
liability is subsequently measured at fair value, and the change in fair value is recorded in the profits and losses of
the current period.
When the recognition is terminated, the difference between the book value and the consideration paid shall be
recorded in the profits and losses of the current period.
(6) Financial liabilities measured at amortized cost.
Financial liabilities measured at amortized cost include short-term loans, notes payable, accounts payable, other
payables, long-term loans, bonds payable and long-term payables, which are initially measured at fair value, and the
relevant transaction costs are included in the initial recognition amount.
The interest calculated by the effective interest rate method during the holding period shall be recorded in the profits
and losses of the current period.
When the recognition is terminated, the difference between the consideration paid and the book value of the
financial liability shall be recorded into the profits and losses of the current period.
3. Confirmation basis and Measurement method of Financial assets transfer.
When a company transfers financial assets, if almost all the risks and rewards in the ownership of the financial assets
have been transferred to the transferee, the recognition of the financial assets shall be terminated; if almost all the
risks and rewards in the ownership of the financial assets are retained, the recognition of the financial asset shall not
be terminated.
In judging whether the transfer of financial assets meets the above-mentioned conditions for termination of
recognition of financial assets, the principle of substance over form shall be adopted.
The company divides the transfer of financial assets into the overall transfer and partial transfer of financial assets.
If the overall transfer of financial assets meets the conditions for termination of recognition, the difference between
the following two amounts shall be recorded into the profits and losses of the current period:
(1) the book value of the transferred financial assets;
(2) the sum of the consideration received as a result of the transfer and the cumulative amount of changes in fair
value that were originally directly included in the owners' equity (the financial assets involved in the transfer are
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financial assets (debt instruments) whose changes are measured at fair value and whose changes are included in
other comprehensive income, and financial assets available for sale.
If the partial transfer of financial assets meets the conditions for termination of recognition, the book value of the
transferred financial assets as a whole shall be apportioned according to their respective relative fair values between
the terminated recognition part and the unterminated recognition part, and the difference between the following two
amounts shall be included in the profits and losses of the current period:
(1) to terminate the book value of the recognition part;
(2) the consideration of the termination recognition part, the sum of the amount corresponding to the cumulative
amount of fair value changes that were originally directly included in the owners' equity (the financial assets
involved in the transfer are financial assets (debt instruments) whose changes are measured at fair value and whose
changes are included in other comprehensive income, financial assets available for sale.
If the transfer of a financial asset does not meet the conditions for termination of recognition, the financial asset shall
continue to be recognized, and the consideration received shall be recognized as a financial liability.
4. Conditions for termination of recognition of financial liabilities.
If the current obligation of a financial liability has been discharged in whole or in part, the recognition of the
financial liability or part thereof shall be terminated; if the Company signs an agreement with the creditors to replace
the existing financial liability by assuming a new financial liability, and if the contract terms of the new financial
liability are substantially different from those of the existing financial liability, the recognition of the existing
financial liability shall be terminated and the new financial liability shall be recognized at the same time.
Where substantial changes are made to all or part of the terms of the contract for the existing financial liabilities, the
recognition of the existing financial liabilities or part of them shall be terminated, and the financial liabilities after
the revised terms shall be recognized as a new financial liability.
When the recognition of financial liabilities is terminated in whole or in part, the difference between the book value
of the financial liabilities terminated and the consideration paid (including transferred non-cash assets or new
financial liabilities assumed) shall be included in the profits and losses of the current period.
If the company buys back part of the financial liability, it shall allocate the book value of the financial liability as a
whole according to the relative fair value of the continued recognition part and the termination recognition part on
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the repurchase date. The difference between the book value allocated to the termination of recognition and the
consideration paid (including transferred non-cash assets or new financial liabilities assumed) shall be included in
the profits and losses of the current period.
5. The method of determining the fair value of financial assets and financial liabilities.
There are financial instruments in an active market, whose fair value is determined by quotations in the active
market. There are no financial instruments that activate the market, and valuation techniques are used to determine
their fair value. In valuation, the Company adopts valuation techniques that are applicable in the current
circumstances and are supported by sufficient available data and other information, select input values that are
consistent with the characteristics of assets or liabilities considered by market participants in the transactions of the
relevant assets or liabilities, and give priority to the relevant observable inputs. The unobservable input value is used
only if the relevant observable input value cannot be obtained or is impracticable.
6. Test method and Accounting treatment method of impairment of Financial assets.
The Company takes into account all reasonable and justified information, including forward-looking information,
estimates, individually or in combination, the expected credit losses of financial assets measured at amortised cost
and financial assets (debt instruments) measured at fair value and whose changes are included in other
comprehensive income. The measurement of expected credit loss depends on whether the credit risk of financial
assets increases significantly after the initial recognition.
If the credit risk of the financial instrument has increased significantly since the initial recognition, the Company
measures its loss provision at the amount equivalent to the expected credit loss of the financial instrument
throughout its lifetime; if the credit risk of the financial instrument does not increase significantly since the initial
recognition, the Company measures its loss provision at the amount equivalent to the expected credit loss of the
financial instrument in the next 12 months. The increase or reversal amount of the loss provision resulting therefrom
shall be recorded into the profit or loss of the current period as an impairment loss or gain.
Usually more than 30 days overdue, the Company considers that the credit risk of the financial instrument has
increased significantly, unless there is conclusive evidence that the credit risk of the financial instrument has not
increased significantly since the initial recognition.
If the credit risk of a financial instrument is low on the balance sheet date, the Company considers that the credit risk
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of the financial instrument has not increased significantly since its initial recognition.
If there is objective evidence that a financial asset has been impaired in credit, the company shall make provision for
impairment of the financial asset on an individual basis.
(1) Impairment of receivables.
①Accounts receivable.
Accounts receivables are based on the assumption that their credit risk has not increased significantly since the
initial recognition, and the loss provision is measured according to the expected credit loss over the next 12
months. In addition to accounts receivables for individual assessment of credit risk, they are divided into different
combinations based on the characteristics of credit risk:
Combination name. Provision ratio.
Account age analysis combination. Using age analysis method.
Combination of related parties within the scope of merger. Excluding the provision for bad debts.
Individual identification combination Individual identification method
For accounts receivable, regardless of whether it is due to the sale of products or the provision of services or
contains a significant financing component, the Company always measures its loss provision at an amount
equivalent to the expected credit loss over the entire lifetime, the resulting increase or reversal of the loss provision
is recorded in the profits and losses of the current period as an impairment loss or gain.
Based on all reasonable and valid information, including forward-looking information, the company makes
provision for bad debts for accounts receivable in accordance with the combination of related parties and the
combination of age analysis within the scope of merger, and the combination of related parties within the scope of
merger does not make provision for bad debts, the combination of age analysis calculates its expected credit loss on
the basis of age, as follows:
Account age Proportion of accounts receivable (%)
Intelligent packaging Power engine service
equipment related business
Within 1 year (including 1 year) 1 5
1 to 2 years (including 2 years) 5 10
2 to 3 years (including 3 years) 10 30
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3 to 4 years (including 4 years) 30 50
4 to 5 years (including 5 years) 50 80
More than 5 years 100 100
If there is objective evidence that a credit impairment has occurred in an account receivable, the company makes a
provision for bad debts and recognizes the expected credit loss on the account receivable.
②Other receivables
Other receivables are based on the assumption that their credit risk has not increased significantly since the initial
recognition, and the loss provision is measured according to the expected credit loss over the next 12 months. In
addition to other receivables for individual assessment of credit risk, they are divided into different combinations
based on the characteristics of credit risk:
Combination name. Provision ratio.
Account age analysis combination. Using age analysis method.
Combination of related parties within the scope of merger. Excluding the provision for bad debts.
Individual identification combination Individual identification method
In the combination, the age analysis combination calculates its expected credit loss on the basis of book age, as
follows:
Account age Proportion of accounts receivable (%)
Intelligent packaging Power engine service
equipment related business
Within 1 year (including 1 year) 1 5
1 to 2 years (including 2 years) 5 10
2 to 3 years (including 3 years) 10 30
3 to 4 years (including 4 years) 30 50
4 to 5 years (including 5 years) 50 80
More than 5 years 100 100
(2) Other receivables.
For lease receivables or long-term receivables formed by the company through the sale of goods or the provision
of services, the Company chooses to always measure its provision for loss at an amount equivalent to the expected
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credit loss over the entire lifetime.
The negotiable instruments obtained by the company shall be divided into financial institutions and other
enterprises according to the acceptor. If the acceptor is a negotiable instrument of a financial institution, the
company expects no credit loss; if the acceptor is a negotiable instrument of other enterprises, the company
regards the negotiable instrument as accounts receivable to determine the expected credit loss.
11. Inventory.
1. Classification of inventory.
Inventory is classified into: raw materials, products in process, goods in stock, goods issued, semi-finished products,
materials commissioned for processing, etc.
2. Pricing method for issuing inventory.
The costs of inventory, delivery and production include raw materials, direct labour, other direct costs and indirect
production costs apportioned in proportion to normal production capacity, as well as related interest expenses. The
purchase and storage of all kinds of inventory are priced at actual cost and issued on a weighted average basis.
3. The basis for determining the net realizable value of different types of inventory.
In the course of normal production and operation, the net realizable value of goods directly used for sale, such as
finished goods, goods in stock and materials used for sale, shall be determined on the basis of the estimated selling
price of the inventory minus the estimated sales expenses and related taxes and fees. For the inventory of materials
that need to be processed, in the normal process of production and operation, the net realizable value shall be
determined on the basis of the estimated selling price of the finished goods produced minus the estimated cost to be
incurred at the time of completion, the estimated sales expenses and the amount of relevant taxes and fees. The net
realizable value of the inventory held for the execution of the sales contract or labor contract is calculated on the
basis of the contract price. If the quantity of the inventory held exceeds the quantity ordered under the sales contract,
the net realizable value of the excess inventory is calculated on the basis of the general sales price.
At the end of the period, inventory falling price reserve is made according to a single inventory item; however, for
inventory with a large number and lower unit price, inventory falling price reserve is made according to inventory
category; inventory with the same or similar end-use or purpose related to product lines produced and sold in the
same region and difficult to be measured separately from other items shall be combined with the inventory falling
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price reserve.
Except that there is clear evidence that the market price on the balance sheet date is abnormal, the net realizable
value of inventory items is determined on the basis of the market price on the balance sheet date.
The net realizable value of the inventory items at the end of the period is determined on the basis of the market price
on the balance sheet date.
4. Inventory system.
The perpetual inventory system is adopted.
5. Amortization methods for low-value consumables and packaging.
The main results are as follows:
(1) the method of one-time resale is adopted for low-value consumable goods;
(2) the package adopts the method of one-time resale.
12. Contractual assets
See Ⅴ (25) income for details.
Accounting policies with effect from January 1, 2020
1. Confirmation methods and standards of contract assets.
The company shows the contract assets or contract liabilities in the balance sheet according to the relationship
between the performance obligations and the customer payment. The right of the Company to transfer goods or
provide services to customers and have the right to receive consideration (and this right depends on factors other
than the passage of time) is listed as a contractual asset. The contractual assets and contractual liabilities under the
same contract are shown in net amounts. The rights of the Company to collect consideration from customers
unconditionally (only depending on the passage of time) are listed separately as receivables.
2. the Determination Method and Accounting Treatment Method of the Expected Credit Loss of Contract Assets.
The method of determining the expected credit loss of contract assets and accounting treatment methods are
detailed in this note Ⅴ "(10) 6 Testing methods and accounting treatment methods of impairment of financial
assets".
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13. Contract cost
The contract cost includes the incremental cost of obtaining the contract and the performance cost of the contract.
The incremental cost incurred in order to obtain the contract refers to the cost that will not be incurred by the
company without obtaining the contract [(eg. sales commission, etc.)]. If the cost is expected to be recovered, the
company will recognize it as a contract acquisition cost as an asset. The expenses incurred by the Company in
order to obtain the contract, other than the incremental costs expected to be recovered, shall be recorded in the
profits and losses of the current period at the time of occurrence.
If the cost incurred in performing the contract does not fall within the scope of other accounting standards for
enterprises such as inventory, and the following conditions are met at the same time, the company shall recognize
it as a contract performance cost as an asset:
(1) The cost is directly related to a current or expected contract, including direct labor, direct materials,
manufacturing costs (or similar expenses), costs clearly borne by the customer and other costs incurred solely as a
result of the contract.
(2) This cost increases the resources used by the Company to fulfill its obligations in the future.
(3) The cost is expected to be recovered.
The assets recognized by the contract cost and the assets recognized by the contract performance cost (hereinafter
referred to as "the assets related to the contract cost") shall be amortized on the same basis as the income from
goods or services related to the asset and shall be included in the profits and losses of the current period.
When the book value of the asset related to the contract cost is higher than the difference between the following
two items, the company shall make provision for impairment of the excess and recognize it as an impairment loss
of the asset:
(1) The remaining consideration expected to be obtained by the Company as a result of the transfer of goods or
services related to the asset.
(2) The estimated cost to be incurred for the transfer of the related goods or services.
14. Long-term equity investment.
1. Criteria for judging joint control and significant influence.
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Joint control refers to the common control over an arrangement in accordance with the relevant agreement, and the
relevant activities of the arrangement can only be made with the unanimous consent of the participants who share
the control. Where the Company exercises joint control over the invested entity and enjoys rights over the net assets
of the invested entity together with other joint ventures, the invested entity shall be a joint venture of the Company.
Major impact refers to the right to participate in the financial and business decisions of an enterprise, but not to
control or work with other parties to control the formulation of these policies. If the company can exert significant
influence on the invested entity, the invested entity shall be an associated enterprise of the company.
2. Determination of initial investment cost.
(1) Long-term equity investment formed by enterprise merger.
Business combination under the same control: where a company pays cash, transfers non-cash assets or assumes
debts, and issues equity securities as merger consideration, the initial investment cost of the long-term equity
investment shall be taken as the initial investment cost of the long-term equity investment in accordance with the
share of the book value of the owner's equity of the merged party in the consolidated financial statements of the
ultimate controlling party on the merger date. If it is possible to control the invested unit under the same control due
to additional investment and other reasons, it shall enjoy the share of the book value of the merged party's net assets
in the consolidated financial statements of the final controlling party on the merger date, determine the initial
investment cost of long-term equity investment. The difference between the initial investment cost of the long-term
equity investment on the merger date and the sum of the book value of the long-term equity investment before the
merger plus the book value of the newly paid consideration for further acquired shares on the merger date, if the
equity premium is adjusted and the equity premium is insufficient to be offset, offset the retained earnings.
Business merger under different control: the company takes the merger cost determined on the purchase date as the
initial investment cost of the long-term equity investment. If it is possible to control the invested units that are not
under the same control due to additional investment and other reasons, the sum of the book value of the original
equity investment plus the new investment cost shall be taken as the initial investment cost calculated according to
the cost method.
(2) Long-term equity investment obtained by other means.
The long-term equity investment obtained by means of cash payment shall be taken as the initial investment cost
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according to the purchase price actually paid.
The long-term equity investment obtained by issuing equity securities shall be taken as the initial investment cost
according to the fair value of the equity securities issued.
When the exchange of non-monetary assets has a commercial essence, and the fair value of the exchanged assets or
exchanged assets can be measured reliably, it shall be measured on the basis of fair value. If the fair value of both the
exchanged assets and the exchanged assets can be measured reliably, for the exchanged long-term equity investment,
the fair value of the exchanged assets and the relevant taxes payable shall be taken as the initial investment cost of
the converted long-term equity investment, unless there is conclusive evidence that the fair value of the converted
assets is more reliable. Where the exchange of non-monetary assets does not have a commercial substance, or the
fair value of both the exchanged assets and the exchanged assets cannot be measured reliably, for the exchanged
long-term equity investment, the book value of the exchanged assets and the relevant taxes payable shall be taken as
the initial investment cost of the long-term equity investment.
The long-term equity investment obtained through debt restructuring shall be recorded at other costs such as the fair
value of the abandoned creditor's rights and taxes directly attributable to the asset, and the difference between the
fair value and the book value of the abandoned creditor's rights shall be included in the profits and losses of the
current period.
3. Follow-up measurement and profit and loss recognition method.
(1) Long-term equity investment calculated by cost method.
The company's long-term equity investment in subsidiaries shall be accounted for by the cost method. Except for
the declared but not yet paid cash dividends or profits included in the price or consideration actually paid at the
time of the investment, the company recognizes the current investment income in accordance with the cash
dividends or profits declared by the invested entity.
(2) Long-term equity investment accounted for by equity method.
The equity method shall be used to calculate the long-term equity investment of joint ventures and joint ventures.
When the initial investment cost is greater than the investment, it shall enjoy the difference in the fair value share
of the identifiable net assets of the invested unit, and shall not adjust the initial investment cost of the long-term
equity investment; when the initial investment cost is less than the investment, it shall enjoy the difference in the
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fair value share of the identifiable net assets of the invested unit, which shall be included in the profits and losses
of the current period.
The company recognizes the investment income and other comprehensive income respectively according to the
share of the net profit and loss and other comprehensive income realized by the invested unit, and adjusts the book
value of the long-term equity investment; the book value of the long-term equity investment shall be reduced
accordingly according to the profits or cash dividends declared and distributed by the invested unit. For other
changes in the owner's equity of the invested unit except net profit and loss, other comprehensive income and
profit distribution, the book value of the long-term equity investment shall be adjusted and included in the owner's
equity.
When recognizing the share of the net profit and loss of the invested unit, it shall be based on the fair value of the
identifiable net assets of the invested unit at the time of the investment, and in accordance with the company's
accounting policy and accounting period, the net profit of the invested unit is recognized after adjustment. During
the period of holding investment, where the invested entity prepares the consolidated financial statements, it shall
be accounted for on the basis of the changes in net profit, other comprehensive income and other owners' equity in
the consolidated financial statements attributable to the invested unit.
The unrealized internal transaction gains and losses between the company, the joint venture and the joint venture
shall be calculated and offset in accordance with the proportion to which the company is entitled, and the
investment income shall be recognized on this basis. If the unrealized internal transaction loss with the invested
entity belongs to the asset impairment loss, it shall be recognized in full. Where a transaction occurs between a
company, an associated enterprise or a joint venture in which assets constitute business, accounting treatment
shall be conducted in accordance with the relevant policies disclosed in this note " 5. (5) Accounting methods for
business mergers under the same control and under different controls" and "5. (6) methods for the preparation of
consolidated financial statements".
When the company confirms that it should share the losses incurred by the invested unit, it shall be dealt with in
the following order: first, write down the book value of the long-term equity investment. Secondly, if the book
value of the long-term equity investment is not enough to offset, the book value of the long-term equity of the net
investment of the invested unit shall continue to be recognized to the limit of the book value of the net investment
of the invested unit, and the book value of the long-term receivables shall be offset. Finally, after the above
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treatment, if the enterprise still bears additional obligations in accordance with the investment contract or
agreement, the estimated liabilities shall be recognized according to the expected obligations, which shall be
included in the investment losses of the current period.
(3) Disposal of long-term equity investment.
The difference between the book value of the long-term equity investment and the actual price obtained shall be
included in the profits and losses of the current period.
When dealing with the long-term equity investment calculated by the equity method, the investment shall be treated
on the same basis as the relevant assets or liabilities directly disposed of by the invested unit, and the part originally
included in other comprehensive income shall be treated according to the corresponding proportion. The owner's
equity recognized as a result of changes in owners' equity other than net profit and loss, other comprehensive
income and profit distribution of the invested unit shall be carried forward pro rata to the profits and losses of the
current period, with the exception of other comprehensive income arising from the re-measurement of the net
liabilities or changes in net assets of the benefit plan of the invested party.
If the common control or significant influence on the invested unit is lost due to the disposal of part of the equity
investment, the remaining equity after disposal shall be accounted for in accordance with the criteria for the
recognition and measurement of financial instruments, the difference between the fair value and the book value on
the date of loss of common control or significant influence shall be recorded in the profits and losses of the current
period. Other comprehensive income recognized by the original equity investment due to the use of the equity
method shall be treated on the same basis as the relevant assets or liabilities directly disposed of by the invested unit
when the application of the equity method is terminated. The owner's equity recognized as a result of changes in
owners' equity other than net profit and loss, other comprehensive income and profit distribution of the invested
party shall be transferred to the profits and losses of the current period when the accounting method of equity is
terminated.
If the company loses its control over the invested unit due to the disposal of part of the equity investment or the
decrease of the proportion of shares held by the company due to the increase of capital of the subsidiary by other
investors, when preparing individual financial statements, if the remaining equity can exercise joint control or
significant influence on the invested unit, it shall be accounted for according to the equity method, and the
remaining equity shall be adjusted by the equity method as soon as it is acquired. Where the remaining equity cannot
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exercise joint control or exert significant influence on the invested unit, the accounting treatment shall be carried out
in accordance with the relevant provisions of the standards for the recognition and measurement of financial
instruments, and the difference between the fair value and the book value on the date of loss of control shall be
recorded into the profits and losses of the current period.
The disposed equity is acquired through enterprise merger due to additional investment and other reasons, and when
preparing individual financial statements, the remaining equity after disposal is calculated by cost method or equity
method, the other comprehensive income and other owners' equity recognized by the equity method before the date
of purchase are carried forward in proportion to the other comprehensive income and other owners' rights and
interests recognized by the equity method. If the remaining equity after disposal is changed to accounting in
accordance with the standards for recognition and measurement of financial instruments, all other comprehensive
income and other owners' equity are carried forward.
15. Fixed assets.
(1) Confirmation conditions.
Fixed assets refer to tangible assets that are held for the production of goods, the provision of labor services,
leasing or management, and have a useful life of more than one fiscal year. Fixed assets are recognized when the
following conditions are met at the same time: (1) The economic benefits related to the fixed assets are likely to
flow into the enterprise; (2) The cost of the fixed assets can be measured reliably.
(2) Depreciation method
Category. Depreciation method. Depreciation life. Residual value rate. Annual depreciation rate.
Houses and buildings. Life averaging method 20-40 5.00% 2.375%-4.75%
machinery equipment. Life averaging method 5-18 5.00% 5.28%-19.00%
Transport equipment. Life averaging method 5-10 5.00% 9.5%-19.00%
Electronic equipment. Life averaging method 3-10 5.00% 9.5%-31.67%
Office equipment. Life averaging method 3-10 5.00% 9.5%-31.67%
Other equipment. Life averaging method 5-10 5.00% 9.5%-19.00%
The depreciation of fixed assets shall be classified and calculated by the life-span average method, and the
depreciation rate shall be determined according to the category of fixed assets, the expected service life and the
expected net salvage rate. If the service life of each component of the fixed asset is different or provides economic
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benefits for the enterprise in different ways, choose different depreciation rates or depreciation methods to
calculate depreciation respectively.
If the fixed assets leased by financial leasing can be reasonably determined that the ownership of the leased assets
will be acquired at the expiration of the lease term, depreciation shall be calculated within the useful life of the
leased assets; if it is impossible to reasonably determine that the ownership of the leased assets can be obtained at
the expiration of the lease term, depreciation shall be calculated within the shorter period of the lease term and the
useful life of the leased assets.
(3) The identification basis, valuation and depreciation methods of financial leasing fixed assets.
If one of the following conditions is stipulated in the terms of the lease agreement between the company and the
lessee, it is recognized as a financial leased asset: (1) The ownership of the leased asset belongs to the company
after the expiration of the lease term; (2) The company has the option to purchase the asset, the purchase price is
much lower than the fair value of the asset when the option is exercised; (3) The lease term accounts for most of
the useful life of the leased asset; (4) There is no significant difference between the present value of the minimum
lease payment on the lease start date and the fair value of the asset. At the beginning of the lease, the company
takes the lower of the fair value of the leased asset and the present value of the minimum lease payment as the
accounting value of the leased asset, and the minimum lease payment as the accounting value of the long-term
payable, the difference is regarded as an unrecognized financing fee.
16. Projects under construction.
According to the necessary expenditure incurred before the construction of the asset reaches its intended usable state,
the project under construction shall be regarded as the accounting value of the fixed asset. If the built fixed assets
have reached the intended usable state in the project, but the final accounts of the construction have not yet been
handled, from the date of reaching the scheduled usable state, according to the project budget, cost or actual cost of
the project, the fixed assets shall be transferred to the fixed assets according to the estimated value, and the
depreciation of the fixed assets shall be calculated in accordance with the company's fixed assets depreciation policy,
and the original provisional estimated value shall be adjusted according to the actual cost after handling the final
accounts for completion. However, the original depreciation amount shall not be adjusted.
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17. Borrowing costs.
1. Confirmation principle of capitalization of borrowing costs.
Borrowing costs, including interest on loans, amortization of discounts or premiums, ancillary expenses and
exchange differences arising from foreign currency loans.
If the borrowing costs incurred by a company can be directly attributed to the purchase, construction or production
of assets that meet the conditions for capitalization, they shall be capitalized and included in the cost of the relevant
assets; other borrowing costs shall be recognized as expenses according to the amount incurred at the time of
occurrence, it shall be recorded in the profits and losses of the current period.
Assets that meet the capitalization conditions refer to fixed assets, investment real estate, inventory and other assets
that take quite a long time of purchase, construction or production activities to reach the intended state of use or sale.
Capitalization begins when borrowing costs meet the following conditions at the same time:
(1) Asset expenditure has been incurred, which includes expenditure in the form of cash payment, transfer of
non-cash assets or undertaking interest-bearing debt for the purchase, construction or production of assets that meet
the capitalization conditions;
(2) The cost of borrowing has been incurred;
(3) The purchase, construction or production activities necessary to make the assets available for use or sale have
begun.
2. Period of capitalization of borrowing costs.
The capitalization period refers to the period from the beginning of capitalization of borrowing costs to the time of
cessation of capitalization, excluding the period of suspension of capitalization of borrowing costs.
When the assets of acquisition, construction or production that meet the conditions for capitalization reach the
intended state of use or sale, the borrowing costs shall cease to be capitalized.
When part of the assets of acquisition, construction or production that meet the capitalization conditions are
respectively completed and can be used separately, the borrowing costs of that part of the assets shall cease to be
capitalized.
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If each part of the asset of purchase, construction or production is completed separately, but can be used or sold only
after the overall completion, the capitalization of borrowing costs shall be stopped when the asset is completed as a
whole.
3. Suspension of capitalization period.
If there is an abnormal interruption of assets that meet the capitalization conditions in the process of purchase,
construction or production, and the interruption time exceeds 3 months, the borrowing costs shall be suspended; if
the interruption is a procedure necessary for the acquisition, construction or production of assets eligible for
capitalization to reach the intended usable state or marketable state, the borrowing costs shall continue to be
capitalized. Borrowing costs incurred during the interruption period are recognized as profits and losses of the
current period and continue to be capitalized after the resumption of the purchase and construction of assets or
production activities.
4. The calculation method of the capitalization rate and capitalization amount of borrowing costs.
For special loans borrowed for the acquisition, construction or production of assets that meet the capitalization
conditions, the borrowing costs actually incurred in the current period shall be used to determine the capitalization
amount of the borrowing costs by deducting the interest income earned by the unused loan funds deposited in the
bank or the investment income from temporary investments.
For general loans occupied for the acquisition, construction or production of assets that meet the capitalization
conditions, the amount of borrowing costs that should be capitalized shall be calculated and determined according to
the weighted average of the accumulated asset expenditure exceeding the portion of the special loans multiplied by
the capitalization rate of the general loans occupied. The capitalization rate is calculated based on the weighted
average interest rate of general borrowing.
18. Intangible assets.
(1) valuation method, service life and impairment test.
1. Valuation method of intangible assets.
(1) The company carries on the initial measurement according to the cost when it acquires the intangible assets;
The cost of purchasing an intangible asset, including the purchase price, related taxes and fees, and other expenses
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directly attributable to the intended use of the asset. If the price of the purchase of intangible assets exceeds the
normal credit conditions and the payment is deferred and has the nature of financing in essence, the cost of the
intangible assets shall be determined on the basis of the present value of the purchase price.
The debt restructuring shall obtain the intangible assets used by the debtor to repay the debts, and determine its
entry value on the basis of the fair value of the abandoned claims and other costs such as taxes directly attributable
to the intended use of the assets, and the difference between the fair value and the book value of the abandoned
claims shall be recorded into the profits and losses of the current period.
When the exchange of non-monetary assets has a commercial essence, and the fair value of the exchanged assets
or exchanged assets can be measured reliably, it shall be measured on the basis of fair value. If the fair value of
both the exchanged assets and the exchanged assets can be measured reliably, for the exchanged intangible assets,
the fair value of the exchanged assets and the relevant taxes payable shall be taken as the initial investment cost of
the exchanged intangible assets, unless there is conclusive evidence that the fair value of the converted assets is
more reliable. Where the exchange of non-monetary assets does not have a commercial substance, or the fair
value of both the exchanged assets and the exchanged assets cannot be reliably measured, for the exchanged
intangible assets, the book value of the exchanged assets and the relevant taxes payable shall be taken as the initial
investment cost of the intangible assets.
(2) Follow-up measurement.
Analyze and judge the service life of intangible assets when acquiring them.
Intangible assets with limited service life shall be amortized according to the straight-line method within the period
of bringing economic benefits to the enterprise; if it is impossible to foresee the period for which intangible assets
bring economic benefits to the enterprise, they shall be regarded as intangible assets with uncertain service life and
shall not be amortized.
2. Estimation of the useful life of intangible assets with limited useful life:
Item Expected service life. Amortization method. According to
Land use right. 40-50 Land use right for the term Land use right.
of use of the land certificate.
Land ownership. Permanent. Overseas land certificate. Land ownership.
Trademarks and patents 5-10 Service life. Trademarks and patents
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At the end of each year, the useful life and amortization methods of intangible assets with limited service life are
reviewed.
After review, the useful life and amortization method of intangible assets at the end of this year are not different
from previous estimates.
3. The basis for judging intangible assets with uncertain service life and the procedure for reviewing their
service life.
The land ownership of the subsidiary Fosber Group in Italy has a permanent term, and the company believes that the
land ownership will be used in the foreseeable future and will bring expected economic benefits to the company, so
it is determined that its useful life is uncertain.
The trademarks registered by subsidiaries Fosber Group and Fosber United States have a service life as required by
law, but Fosber Group and Fosber United States may apply for extension at a lower fee at the expiration of the term
of protection. In addition, the relevant survey shows that the market demand for the products attached to the above
trademark rights is long-term, and the company will benefit from the above-mentioned trademark products for a
long time.
Therefore, the company recognizes the right to use the trademark as an intangible asset with uncertain service life.
At the end of each year, the service life of intangible assets with uncertain service life is reviewed.
After review, the service life of the above intangible assets is still uncertain.
(2) Accounting policy for internal R & D expenditure.
1. Specific criteria for dividing the research phase and the development phase.
The expenditure of research and development projects within the company is divided into research phase
expenditure and development phase expenditure.
Research stage: the stage of original planned investigation and research activities carried out in order to acquire and
understand new scientific or technical knowledge.
Development phase: the stage in which research or other knowledge is applied to a plan or design to produce new or
substantially improved materials, devices, products, etc., prior to commercial production or use.
2. Specific conditions for the capitalization of expenditure in the development stage.
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The expenditure in the development phase of an internal research and development project is recognized as
intangible assets when the following conditions are met:
(1) it is technically feasible to complete the intangible asset so that it can be used or sold;
(2) have the intention to complete the intangible asset and use or sell it;
(3) the ways in which intangible assets generate economic benefits, including the ability to prove that the products
produced by the intangible assets exist in the market or the intangible assets themselves exist in the market, and that
the intangible assets will be used internally can prove their usefulness;
(4) there are sufficient technical, financial and other resources to support the development of the intangible asset and
the ability to use or sell the intangible asset;
(5) the expenditure attributed to the development stage of the intangible assets can be measured reliably.
If the expenditure in the development stage does not meet the above conditions, it shall be recorded into the profits
and losses of the current period when it occurs. The expenditure of the research stage shall be recorded into the
profits and losses of the current period when it occurs.
19. Impairment of long-term assets.
Long-term assets such as long-term equity investment, investment real estate measured by cost model, fixed assets,
projects under construction and intangible assets with limited service life shall be tested if there are signs of
impairment on the balance sheet date. If the impairment test results show that the recoverable amount of the asset is
lower than its book value, the impairment provision shall be calculated according to the difference and the
impairment loss shall be included. The recoverable amount is the higher between the net amount of the fair value of
the asset minus the disposal expenses and the present value of the expected future cash flow of the asset. The
provision for impairment of assets shall be calculated and confirmed on the basis of individual assets. If it is difficult
to estimate the recoverable amount of individual assets, the recoverable amount of the asset group shall be
determined on the basis of the asset group to which the asset belongs. An asset group is the smallest portfolio that
can independently generate cash inflows.
Goodwill, intangible assets with uncertain useful life, and intangible assets that have not yet reached the serviceable
state shall be tested for impairment at least at the end of each year.
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The company conducts a goodwill impairment test, and the book value of goodwill resulting from a business merger
shall be apportioned to the relevant asset group in a reasonable manner from the date of purchase; if it is difficult to
be apportioned to the relevant asset group, it shall be apportioned to the relevant asset group portfolio. When
apportion the book value of goodwill, the company allocates according to the relative benefits that the relevant asset
groups or asset groups can get from the synergy of business merger, and carries on the goodwill impairment test on
this basis.
When conducting an impairment test on a relevant asset group or combination of asset groups containing goodwill,
if there are signs of impairment in the asset group or combination of asset groups related to goodwill, first carry out
an impairment test on the asset group or combination of assets that do not include goodwill, calculate the
recoverable amount, and compare it with the relevant book value to confirm the corresponding impairment loss.
Then carry on the impairment test to the asset group or asset group combination including goodwill, and compare
the book value of these relevant asset groups or asset groups (including the book value portion of the apportioned
goodwill) with their recoverable amount. If the recoverable amount of the relevant asset group or asset group
combination is lower than its book value, the impairment loss of goodwill shall be confirmed. Once the impairment
loss of the above-mentioned assets is recognized, it shall not be reversed in the subsequent accounting period.
20. Long-term prepaid expenses.
Long-term prepaid expenses are expenses that have been incurred but should be borne by the current and subsequent
periods for a period of more than one year.
1. Amortization method.
Long-term prepaid expenses are amortized evenly during the beneficial period.
2. Amortization life.
(1) The expenditure for the improvement of fixed assets shall be amortized over the remaining useful life of the
fixed asset;
(2) Other expenses shall be amortized averagely from 3 to 5 years according to the number of years of benefit.
21. Contractual Liabilities.
See Ⅴ (25) income for details.
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22. Salary of staff and workers.
(1) The accounting treatment of short-term compensation.
During the accounting period in which employees provide services to the Company, the Company recognizes the
actual short-term compensation as liabilities and includes it in the profits and losses or related asset costs of the
current period.
The social insurance premium and housing accumulation fund paid by the company for the staff and workers, as
well as the trade union funds and staff education funds drawn in accordance with the provisions, during the
accounting period during which the staff and workers provide services for the company, the corresponding amount
of salary of the staff and workers shall be calculated and determined according to the prescribed basis and
proportion.
If the welfare expenses of staff and workers are non-monetary welfare, if they can be measured reliably, they shall
be measured at fair value.
(2) Accounting treatment of after-service benefits.
(1) Set up a withdrawal plan.
The company shall pay basic old-age insurance and unemployment insurance for its employees in accordance with
the relevant provisions of the local government. During the accounting period in which the staff and workers
provide services for the company, the amount payable shall be calculated according to the local payment base and
proportion, which shall be recognized as liabilities, and shall be included in the profits and losses of the current
period or the cost of related assets.
In addition to the basic old-age insurance, the company has also established an enterprise annuity contribution
system (supplementary old-age insurance) / enterprise annuity plan according to the relevant policies of the national
enterprise annuity system. The company shall pay a certain proportion of the total wages of the employees to the
local social insurance institutions / annuity plan, and the corresponding expenditure shall be included in the profits
and losses of the current period or the cost of related assets.
(2) Set up a benefit plan.
According to the formula determined by the expected cumulative benefit unit method, the Company ascribes the
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welfare obligations arising from the established benefit plan to the period during which the employee provides
services, which is included in the current profit or loss or related asset costs.
The deficit or surplus resulting from the present value of the set benefit plan obligations minus the fair value of the
set benefit plan assets is recognized as a net liability or net asset of a set benefit plan. If there is a surplus in the
benefit plan, the company shall measure the net assets of the benefit plan by which of the two items: the surplus of
the benefit plan and the asset ceiling.
All obligations to set benefit plans, including those expected to be paid within 12 months after the end of the annual
reporting period for the provision of services by employees, are discounted according to the market yield of treasury
bonds or high-quality corporate bonds in an active market that match the balance sheet date with the duration and
currency of the set benefit plan obligations.
The service costs arising from the establishment of the benefit plan and the net interest of the net liabilities or net
assets of the benefit plan shall be included in the current profit or loss or the cost of related assets; The changes
resulting from the re-measurement of the net liabilities or net assets of the benefit plan are included in other
comprehensive income and do not return to profit or loss in subsequent accounting periods, all the parts originally
included in other comprehensive income are carried forward to undistributed profits within the scope of equity at the
termination of the original benefit plan.
When setting up the settlement of the benefit plan, the settlement gain or loss shall be confirmed according to the
difference between the present value of the obligation of the set benefit plan and the settlement price determined on
the balance sheet date.
23. Estimated liabilities.
1. Recognition criteria for estimated liabilities.
When the obligations related to litigation, debt guarantee, loss contract, restructuring and other contingent matters
meet the following conditions at the same time, the company is recognized as an estimated liability:
(1) The obligation is a current obligation of the Company;
(2) The performance of this obligation is likely to lead to the outflow of economic benefits from the company;
(3) The amount of the obligation can be measured reliably.
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2. The method of measuring all kinds of estimated liabilities.
The Company expects that the liabilities are initially measured on the basis of the best estimate of the expenditure
required to meet the relevant current obligations.
In determining the best estimates, the Company takes into account such factors as risks, uncertainties and the time
value of money associated with contingencies. If the time value of money has a significant impact, the best estimate
is determined by discounting the relevant future cash outflows.
The best estimates are dealt with in the following cases:
If there is a continuous range (or interval) of the required expenditure, and the possibility of various results within
that range is the same, the best estimate is determined according to the middle value of the range, that is, the average
of the upper and lower limits.
Where there is no continuous range (or interval) of expenditure requirements, or although there is a continuous
range, the possibility of various outcomes within that range is different, if a contingent event involves a single
project, the best estimate is determined on the basis of the amount most likely to occur; if a contingent event
involves multiple projects, the best estimate is determined on the basis of various possible outcomes and related
probabilities.
If all or part of the expenses required for the Company's settlement of the estimated liabilities are expected to be
compensated by a third party, the amount of compensation shall be recognized separately as assets when it is
basically determined that it can be received, and the amount of compensation recognized shall not exceed the book
value of the estimated liabilities.
24. Share payment.
The company's share-based payment is a transaction in which equity instruments are granted or liabilities
determined on the basis of equity instruments in order to obtain services provided by employees or other parties.
The company's share-based payments are equity-settled share-based payments.
Where the share-based payment settled by equity is exchanged for services provided by the staff and workers, the
fair value of the equity instruments granted to the staff and workers shall be measured. If the company pays for
shares in restricted shares, the staff and workers shall contribute to subscribe for the shares, and the shares shall not
be listed, circulated or transferred until the unlocking conditions are met and unlocked; if the unlocking conditions
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stipulated in the final equity incentive plan are not met, then the company buys back the shares at the agreed price in
advance. When the Company obtains the payment made by the employee to subscribe for restricted shares, it
recognizes the share capital and capital reserve (equity premium) in accordance with the subscription obtained, and
at the same time recognizes a liability in full with respect to the repurchase obligation and recognizes the treasury
shares. On each balance sheet day during the waiting period, the Company makes the best estimate of the number of
exercisable equity instruments on the basis of the latest follow-up information such as [changes in the number of
workable employees] and [whether or not the prescribed performance conditions are met]. According to the fair
value on the date of the grant, the services obtained in the current period shall be included in the relevant costs or
expenses, and the capital reserve shall be increased accordingly. No adjustments will be made to the recognized
relevant costs or expenses and the total amount of owners' equity after the date of exercise. However, if the right can
be exercised immediately after the grant, the relevant costs or expenses shall be included in accordance with the fair
value on the date of the grant, and the capital reserve shall be increased accordingly.
For the share payment that fails to exercise the right in the end, the cost or fee is not recognized, unless the exercise
condition is a market condition or a non-exercisable condition, regardless of whether or not the market condition or
non-exercisable condition is met, as long as the non-market conditions in all the conditions of the exercisable right
are met, it is regarded as the exercisable right.
If the terms of equity-settled share payments are modified, at least the services obtained are confirmed in accordance
with the unmodified terms. In addition, any change that increases the fair value of the equity instrument granted, or
any change that is beneficial to the employee on the modification date, recognizes the increase in access to services.
If the equity-settled share payment is cancelled, it will be treated as an accelerated exercise on the cancellation date,
and the amount that has not yet been recognized shall be recognized immediately. If the employee or other party
may choose to meet the conditions of the non-exercisable right but not during the waiting period, it shall be treated
as canceling the share payment settled on the basis of equity. However, if a new equity instrument is granted and it
is determined on the date of the grant that the new equity instrument is used to replace the cancelled equity
instrument, the granted alternative equity instrument is dealt with in the same manner as the modification of the
terms and conditions of the original equity instrument.
25. Income
Accounting policies for revenue recognition and measurement
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Accounting policies applicable since January 1, 2020
1. General principles for the recognition of income from the sale of goods
Income is the total inflow of economic interests formed in the daily activities of a company, which will lead to the
increase of shareholders' rights and interests and have nothing to do with shareholders' investment capital.
The company has fulfilled its performance obligations in the contract, that is, revenue is recognized when the
customer acquires control over the relevant goods or services.
Where two or more performance obligations are included in the contract, the Company shall apportion the
transaction price to each individual performance obligation according to the relative proportion of the separate
selling price of the goods or services promised by each individual performance obligation at the beginning of the
contract. The Company measures income according to the transaction price apportioned to each individual
performance obligation. For a contract with a quality assurance clause, we analyze the nature of the quality
assurance provided by the contract, and if the quality assurance provides a separate service in addition to assuring
the customer that the goods sold meet the established standards, the company regards it as a single performance
obligation. Otherwise, the Company shall carry out accounting treatment in accordance with the provisions of the
Accounting Standards for Enterprises No. 13 - Contingent Events.
Transaction price refers to the amount of consideration that the Company is expected to be entitled to receive as a
result of the transfer of goods or services to customers, excluding the amount collected on behalf of third parties.
The transaction price recognized by the Company does not exceed the amount of cumulative recognized income
that is unlikely to be materially reversed when the relevant uncertainty is eliminated.
If one of the following conditions is met, the performance obligation shall be performed within a certain period of
time, otherwise, the performance obligation shall be fulfilled at a certain time point:
(1) The customer acquires and consumes the economic benefits brought about by the performance of the
Company at the same time as the performance of the Company.
(2) The customer can control the goods under construction during the implementation of the contract.
(3) The goods produced by the Company in the course of performance are of irreplaceable use, and the Company
has the right to collect payment for the accumulated part of the performance that has been completed so far
throughout the term of the contract.
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For the performance obligations performed within a certain period of time, the company shall recognize the
income in accordance with the performance progress within that period, except where the performance progress
cannot be reasonably determined. Considering the nature of the goods or services, the company adopts the
production method or input method to determine the progress of performance. When the progress of performance
cannot be reasonably determined and the costs already incurred are expected to be compensated, the company
shall recognize revenue according to the amount of costs already incurred until the progress of implementation
can be reasonably determined.
For performance obligations performed at a certain point in time, the company recognizes revenue at the time
when the customer acquires control over the relevant goods or services.
In determining whether a customer has acquired control over goods or services, the company considers the
following signs:
(1) The Company has a current right of collection in respect of the goods or services, that is, the customer has a
current obligation to pay for the goods or services.
(2) The Company has transferred the legal ownership of the commodity to the customer, that is, the customer
already owns the legal ownership of the commodity.
(3) The Company has transferred the goods in kind to the customer, that is, the customer has possessed the goods
in kind.
(4) The Company has transferred the main risks and rewards in the ownership of the goods to the customer, that is,
the customer has obtained the main risks and rewards in the ownership of the goods.
(5) The customer has accepted the goods or services, etc.
The right of the Company to transfer goods or services to customers and have the right to receive consideration
(and this right depends on factors other than the passage of time) is listed as contract assets. The rights of the
Company to collect consideration from customers unconditionally (only depending on the passage of time) are
shown as receivables. The Company's obligation to transfer goods or services to customers for consideration
received or receivable is shown as contractual liabilities.
2. Specific principles.
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(1) Corrugated printing press related business.
Domestic sales mode: domestic sales take the date of receipt of goods as the time point of revenue recognition, and
domestic accessories sales take the sales reconciliation as the time point of revenue recognition.
Export mode: the revenue of the whole export machine and accessories is confirmed by the customs declaration of
the goods and obtaining the customs declaration approved by the customs, the shipment of the goods and the bill of
lading of the goods.
(2) Domestic power engine business.
Domestic sales mode: take the sales reconciliation as the time point of revenue recognition;
Export mode: the time point of revenue recognition is to declare the goods and obtain the customs declaration
approved by the customs, the goods are shipped and the bill of lading is obtained.
(3) Corrugated board production line related business.
Corrugated board production line operating income is divided into machine sales revenue and installation service
income.
Machine sales: 1) Domestic sales model: machines arrive at customers and sign for receipt as the time point of
revenue confirmation;
2) Export mode: the revenue recognition time is based on the declaration of the goods and
obtaining the customs declaration approved by the customs, the shipment of the goods and the
bill of lading.
Installation service revenue: confirm the revenue after the completion of the installation and trial operation of the
machine.
The adoption of different business models in the same kind of business leads to differences in accounting policies for revenue
recognition.
26. Government subsidy.
1. Types.
Government subsidy is the monetary and non-monetary assets obtained by the company from the government free
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of charge. It is divided into assets-related government subsidies and income-related government subsidies.
The government subsidy related to assets refers to the government subsidy obtained by the company for the
purchase, construction or other formation of long-term assets. Government subsidies related to income refer to
government subsidies other than those related to assets.
The company divides government subsidies into specific standards related to assets as follows: the use of the money
is clearly defined in the government documents, and the direction in which the money is expected to be used is
expected to form the relevant assets.
The company divides the government subsidy into specific criteria related to revenue as follows: the use is not
specified in the government documents, and the money is expected to be used in the direction of supplementary
liquidity.
If the subsidy object is not clearly specified in the government documents, the company classifies the government
subsidy as asset-related or income-related judgment on the basis of: except that the company designates its use as
asset-related, it will be included in the profits and losses of the current period.
2. Confirm time point.
When the relevant government subsidy is received, it shall be recognized as the government subsidy.
3. Accounting treatment.
Government subsidies related to assets shall write down the book value of the related assets or be recognized as
deferred income. If it is recognized as deferred income, it shall be recorded into the profits and losses of the current
period according to a reasonable and systematic method during the useful life of the relevant assets (other income if
it is related to the daily activities of the company; non-operating income if it has nothing to do with the daily
activities of the company);
Government subsidies related to revenue, which are used to compensate the Company for related costs or losses in
subsequent periods, shall be recognized as deferred income, and during the period during which the relevant costs or
losses are recognized, it shall be included in the profits and losses of the current period (those related to the daily
activities of the Company, other income; non-operating income if not related to the daily activities of the Company)
or write-off related costs or losses; If it is used to compensate for the related costs or losses incurred by the Company,
it shall be directly included in the profits and losses of the current period (those related to the daily activities of the
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Company shall be included in other income; those not related to the daily activities of the Company shall be
included in non-operating income) or offset by related costs or losses.
27. Deferred income tax assets/deferred income tax liabilities.
The deferred income tax assets recognized as deductible temporary differences shall be limited to the amount of
taxable income that is likely to be obtained in the future period to offset the deductible temporary differences. For
deductible losses and tax credits that can be carried forward in subsequent years, the corresponding deferred income
tax assets are recognized to the extent that future taxable income is likely to be used to offset deductible losses and
tax credits.
For taxable temporary differences, except in special circumstances, deferred income tax liabilities shall be
recognized.
Special cases in which deferred income tax assets or deferred income tax liabilities are not recognized include:
initial recognition of goodwill; other transactions or events that occur other than a business merger that affect neither
accounting profits nor taxable income (or deductible losses).
When there is a legal right to settle in net, and it is intended to settle assets in net or to acquire assets and liquidate
liabilities at the same time, the current income tax assets and current income tax liabilities shall be reported with the
net amount after offsetting.
When you have the legal right to settle current income tax assets and current income tax liabilities with net amount,
and deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same
tax collection and administration department on the same taxpayer or on different taxpayers, but during the period of
reversal of each important deferred income tax asset and liability in the future, When the taxpayers involved intend
to settle the current income tax assets and liabilities with net amount or acquire assets and pay off liabilities at the
same time, the deferred income tax assets and deferred income tax liabilities shall be reported as the net amount after
offsetting.
28. Lease
(1) Accounting treatment method of operating lease
(1) The lease fee paid by the company for renting assets shall be apportioned on the straight-line method over the
entire lease period without deducting the rent-free period and included in the current expenses. The initial direct
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costs paid by the company related to the lease transaction are included in the current expenses.
When the asset lessor bears the expenses related to the lease that should be borne by the company, the company
deducts part of the expenses from the total rent, and allocates the deducted rental expenses within the lease period to
be included in the current expenses.
(2) The lease fee charged by the company for the lease of assets shall be apportioned on the straight-line method
over the entire lease period without deducting the rent-free period, and shall be recognized as lease-related income.
The initial direct costs related to the lease transaction paid by the company are included in the current expenses; if
the amount is larger, they are capitalized and included in the current income in installments on the same basis as the
lease-related revenue recognition throughout the entire lease period.
When the company has undertaken the lease-related expenses that should be borne by the lessee, the company
deducts this part of the total rental income from the rent, and allocates the deducted rental expenses within the lease
period.
(2) The accounting treatment of financial leasing.
(1) Financing leased-in assets: at the beginning of the lease, the company takes the lower of the fair value of the
leased assets and the present value of the minimum lease payment as the accounting value of the leased asset, and
the minimum lease payment as the accounting value of long-term payables, the difference is regarded as an
unrecognized financing expense. The company uses the effective interest rate method to amortize the unrecognized
financing expenses during the lease period of the asset, which shall be included in the financial expenses. The initial
direct expenses incurred by the company shall be included in the value of the leased assets.
(2) Financing leased-out assets: at the beginning of the lease, the company recognizes the difference between the
sum of the unsecured residual value of the financial lease receivable and its present value as unrealized financing
income and as lease income in each period in which the rent is received in the future. The initial direct expenses
incurred by the company related to the rental transaction shall be included in the initial measurement of the financial
lease receivable and reduce the amount of income recognized during the lease term.
29. Other important accounting policies and accounting estimates.
1. Termination of operation.
Termination of operation is a separable component that meets one of the following conditions, and has been
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disposed of by the Company or classified as holding for sale by the Company:
(1) The component represents a separate major business or a separate major area of business;
(2) This component is part of an associated plan to dispose of a separate major business or a separate major business
area;
(3) The component is a subsidiary acquired exclusively for resale.
2. Segment report.
The company determines the operating segment on the basis of the internal organizational structure, management
requirements and internal reporting system, determines the reporting segment and discloses the segment
information on the basis of the operating segment.
Operating segment refers to the components of the company that meet the following conditions at the same time:
(1) This component can generate income and expenses in daily activities;
(2) The management of the company can regularly evaluate the operating results of this component in order to
decide to allocate resources to it and evaluate its performance;
(3) The company can obtain relevant accounting information such as financial position, operating results and cash
flow of this component. If two or more operating divisions have similar economic characteristics and meet certain
conditions, they can be merged into one operating segment.
30. Changes in important accounting policies and accounting estimates.
(1) Important accounting policy changes.
□ Applicable √ Not applicable
(2) Changes in important accounting estimates
□ Applicable √ Not applicable
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(3) Implementation of New Income Guidelines for the first time since 2020, Adjustments to New Lease
Guidelines for Initial Implementation of Projects related to Financial Statements at the Beginning of the
Year
Applicable
Whether adjustments need to be adjusted for balance sheet subjects at the beginning of year
√ Yes □ No
Consolidated balance sheet.
Unit: yuan
Item December 31, 2019 January 1, 2020 Adjust integer
Current assets:
Monetary funds 2,356,703,434.60 2,356,703,434.60
Settlement provisions
Dismantling funds
Transactional financial assets 1,164,039,381.59 1,164,039,381.59
Derivative financial assets
Notes receivable
Accounts receivable 597,431,210.02 597,431,210.02
Receivable financing 55,447,099.32 55,447,099.32
Advance payment 25,901,123.85 25,901,123.85
Premium receivable
Receivable reinsurance
account
Provision for reinsurance
contract receivable
Other receivables 79,573,114.49 79,573,114.49
Of which: interest receivable 721,935.36 721,935.36
Dividend receivable
Buy back resale financial
assets
Inventory 671,432,701.11 671,432,701.11
Contract assets
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Holding assets for sale
Non-current assets due
356,983.48 356,983.48
within one year
Other current assets 22,346,314.29 22,346,314.29
Total current assets 4,973,231,362.75 4,973,231,362.75
Non-current assets:
Loans and advances
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 72,372,355.03 72,372,355.03
Investment in other equity
instruments
Other non-current financial
20,559,159.34 20,559,159.34
assets
Investment real estate
Fixed assets 585,754,900.75 585,754,900.75
Project under construction 4,839,241.48 4,839,241.48
Productive biological assets
oil and gas asset
Right-of-use asset
Intangible assets 249,882,429.53 249,882,429.53
Development expenditure
Goodwill 306,633,631.93 306,633,631.93
Long-term prepaid expenses 8,699,236.33 8,699,236.33
Deferred income tax assets 49,025,021.61 49,025,021.61
Other non-current assets 2,518,818.56 2,518,818.56
Total non-current assets 1,300,284,794.56 1,300,284,794.56
total assets 6,273,516,157.31 6,273,516,157.31
Current liabilities:
Short-term loan 117,888,353.14 117,888,353.14
Borrowing from the Central
Bank
Borrowed funds
Transactional financial
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liabilities
Derivative financial liabilities
Notes payable 43,973,859.51 43,973,859.51
Accounts payable 472,862,744.45 472,862,744.45
Advance payment 286,511,724.62 -286,511,724.62
Contract liabilities 286,511,724.62 286,511,724.62
Selling back financial assets
Deposits and interbank
deposit
Agent trading securities
Agent underwriting securities
Salary payable to staff and
106,677,329.95 106,677,329.95
workers
Taxes payable 48,928,229.51 48,928,229.51
Other payables 90,950,443.16 90,950,443.16
Of which: interest payable 1,410,745.58 1,410,745.58
Dividend payable
Fees and commissions
Reinsurance accounts
payable
Holding liabilities for sale
Non-current liabilities due
353,399,238.29 353,399,238.29
within one year
Other current liabilities
Total current liabilities 1,521,191,922.63 1,521,191,922.63
Non-current liabilities:
Insurance contract reserve
Long term loan 224,146,667.48 224,146,667.48
Bonds payable
Of which: preferred stock
Perpetual debt
Lease liability
Long-term payables
Long-term salary payable to
12,252,657.36 12,252,657.36
staff and workers
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Estimated liabilities 78,650,466.48 78,650,466.48
Deferred income 18,275,808.90 18,275,808.90
Deferred income tax
16,915,692.91 16,915,692.91
liabilities
Other non-current liabilities
Total non-current liabilities 350,241,293.13 350,241,293.13
Total Liabilities 1,871,433,215.76 1,871,433,215.76
Owners' equity:
Share capital 1,838,647,096.00 1,838,647,096.00
Other equity instruments
Of which: preferred stock
Perpetual debt
Capital reserve 3,862,377,838.84 3,862,377,838.84
Minus: treasury shares 160,088,925.60 160,088,925.60
Other comprehensive income 24,971,085.32 24,971,085.32
Special reserves
Surplus reserve 51,830,974.45 51,830,974.45
General risk preparation
Undistributed profit -1,280,673,461.14 -1,280,673,461.14
Total equity attributable to
4,337,064,607.87 4,337,064,607.87
owners of parent company
Minority shareholder interest 65,018,333.68 65,018,333.68
Total owner's equity 4,402,082,941.55 4,402,082,941.55
Total Liabilities and Owner's
6,273,516,157.31 6,273,516,157.31
Equity
Adjustment description.
Parent company balance sheet.
Unit: yuan
Item December 31, 2019 January 1, 2020 Adjust integer
Current assets:
Monetary funds. 1,899,380,375.38 1,899,380,375.38
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Transactional financial
1,163,000,000.00 1,163,000,000.00
assets.
Derivative financial assets.
Notes receivable.
Accounts receivable. 151,096,214.10 151,096,214.10
Receivable financing. 51,139,322.12 51,139,322.12
Advance payment. 3,233,763.27 3,233,763.27
Other receivables. 36,670,496.12 36,670,496.12
Of which: interest receivable.
Dividend receivable.
Inventory. 111,225,290.10 111,225,290.10
Contract assets.
Holding assets for sale.
Non current assets due within
356,983.48 356,983.48
one year.
Other current assets. 4,961,417.06 4,961,417.06
Total current assets. 3,421,063,861.63 3,421,063,861.63
Non-current assets:
Debt investment.
Other debt investments.
Long-term receivables.
Long-term equity investment. 439,638,782.00 439,638,782.00
Investment in other equity
instruments.
Other non-current financial
assets.
Investment real estate.
Fixed assets. 340,791,611.76 340,791,611.76
Project under construction. 83,070.80 83,070.80
Productive biological assets.
Oil and gas assets.
Right-of-use assets.
Intangible assets. 60,733,612.10 60,733,612.10
Development expenditure.
Goodwill.
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Long-term prepaid expenses. 3,335,014.92 3,335,014.92
Deferred income tax assets. 4,923,465.18 4,923,465.18
Other non-current assets. 585,189.00 585,189.00
Total non-current assets. 850,090,745.76 850,090,745.76
Total assets. 4,271,154,607.39 4,271,154,607.39
Current liabilities:
Short-term loan. 90,000,000.00 90,000,000.00
Transactional financial
liabilities.
Derivative financial
liabilities.
Notes payable. 43,843,859.51 43,843,859.51
Accounts payable. 70,687,704.41 70,687,704.41
Advance payment. 17,451,789.10 -17,451,789.10
Contract liabilities. 17,451,789.10 17,451,789.10
Salary payable to staff and
26,144,254.56 26,144,254.56
workers.
Taxes payable. 1,921,575.57 1,921,575.57
Other payables. 50,214,415.95 50,214,415.95
Of which: interest payable.
Dividend payable.
Holding liabilities for sale.
Non-current liabilities due
within one year.
Other current liabilities.
Total current liabilities. 300,263,599.10 300,263,599.10
Non-current liabilities:
Long-term loan.
Bonds payable.
Of which: preferred stock.
Perpetual debt.
Lease liability.
Long-term payable.
Long-term salary payable to
staff and workers.
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Estimated liability.
Deferred income. 14,423,631.66 14,423,631.66
Deferred income tax liability.
Other non-current liabilities.
Total non-current liabilities. 14,423,631.66 14,423,631.66
Total liabilities. 314,687,230.76 314,687,230.76
Owner's equity:
Share capital. 1,838,647,096.00 1,838,647,096.00
Other equity instruments.
Of which: preferred stock.
Perpetual debt.
Capital reserve. 3,608,591,602.42 3,608,591,602.42
Minus: treasury shares. 160,088,925.60 160,088,925.60
Other comprehensive
income.
Special reserve.
Surplus reserve. 51,830,974.45 51,830,974.45
Undistributed profit. -1,382,513,370.64 -1,382,513,370.64
Total owner's equity. 3,956,467,376.63 3,956,467,376.63
Total liabilities and owners'
4,271,154,607.39 4,271,154,607.39
equity
Adjustment description.
On July 5, 2017, Ministry of Finance issued Enterprise Accounting Standards No. 14 - Income (Accounting [2017] No. 22), requiring
enterprises listed simultaneously both inside and outside China, as well as enterprises listed abroad and adopting IFRS or corporate
accounting standards to prepare financial statements, effective since January 1, 2018; as for other domestic listed enterprises,
effective since January 1, 2020.
As listed company in China, we implement new revenue guidelines in January 1, 2020. According to the requirements of new income
criterion, the company will adjust project amounts related to financial statements at the beginning of 2020 according to cumulative
impact number of new income criterion first, and do not adjust data for comparable period.
(4) Explanation of introduction of new income standards for the first time and comparative data new lease
standards retroactive adjustment since 2020
□ Applicable √ Not applicable
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VI.Taxes.
1. Main taxes and tax rates
Tax category Tax basis Tax rate
The output tax is calculated on the basis of the income from the sale
Value added tax of goods and taxable services calculated according to the provisions
13%, 6%
of the tax Law. after deducting the input tax allowed to be deducted in
the current period, the difference is value-added tax payable.
Urban maintenance and
Calculated and levied on the basis of value-added tax and
7%, 5%
construction tax consumption tax actually paid
corporate income tax Calculated and levied on the basis of taxable income See the table below
Additional education fees Calculated and levied on the basis of value-added tax and
3%
consumption tax actually paid
Local education addition Calculated and levied on the basis of value-added tax and
2%
consumption tax actually paid
If it is levied ad valorem, it shall be paid at 1.2% of the remaining
Property tax value after deducting 30% of the original value of the property at 1.2%, 12%
once; if levied from rent, it shall be paid at 12% of the rental income.
Land use tax
The area of land registered in the land use right certificate 3 yuan per square meter
If there are different tax payers of enterprise income tax rates, the disclosure shall be explained.
Name of tax subject Income tax rate
Our company * 1 15%
Dongfang Precision（HK） 16.50%
Dongfang Precision（Netherland） 20%
Fosber Group 24%
Fosber US 21%
Fosber Tianjin 25%
Shunyi Investment 25%
Parsun Power*2 15%
Italy EDF 24%
Fosber Asia*3 15%
Tiruna Group 28%
Tiruna S.L.U. 28%
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Tratatamientos Industriales Tiruna S.A.U. 28%
Tiruna Brazil 34%
Tiruna France SARL 15%
SCI Candan 15%
Tiruna UK Ltd 19%
Guangdong Tiruna 25%
Tiruna US 21%
2. Tax preference.
* 1 The Company passed the review of the High-tech Enterprises of Guangdong Provincial Department of Science
and Technology, Guangdong Provincial Department of Finance, Guangdong State Taxation Bureau and Guangdong
Local Taxation Bureau in November 2017 and obtained the jointly issued "High-tech Enterprise Certificate"
(Certificate No.: GR201744002995), which is valid for three years. The enterprise income tax shall be calculated
and paid at a reduced tax rate of 15% within the period of validity.
* 2 Parsun Power, a subsidiary of the company, passed the review of high-tech enterprises of Jiangsu Provincial
Department of Science and Technology, Jiangsu Provincial Department of Finance and Jiangsu State Taxation
Bureau on November 7, 2019 and obtained the "High-tech Enterprise Certificate" (Certificate No.:
GR201932000339), which is valid for three years, and the enterprise income tax shall be reduced by 15% within the
period of validity.
* 3 Fosber Asia, a subsidiary of the Company, approved and obtained the "High-tech Enterprise Certificate"
(Certificate No.: GR201844003599) jointly issued by the Department of Science and Technology of Guangdong
Province, the Department of Finance of Guangdong Province and the State Taxation Bureau of Guangdong
Province on November 28, 2018, valid for three years, and the enterprise income tax shall be reduced by 15% during
the period of validity.
VII. Project Notes for Consolidated Financial statements.
1. Monetary funds.
Unit: yuan
Item Ending balance Opening balance.
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Cash on hand 333,466.53 249,951.68
Bank deposit 1,518,673,673.17 2,224,849,135.20
Other monetary funds 420,994,536.79 131,604,347.72
Total 1,940,001,676.49 2,356,703,434.60
Of which: the total amount of money
310,445,350.28 340,057,779.28
deposited abroad
Other instructions.
Of which, the details of the currency funds that are restricted by mortgage, pledge or freeze, as well as those placed abroad and
subject to restrictions on the repatriation of funds are as follows:
Unit: yuan
Item Ending balance Balance at the end of last year.
Bank acceptance margin 5,433,986.23 4,397,386.30
L/C Guarantee deposits 3,128,028.34 0.00
Loan guarantee 411,891,293.51 124,024,093.46
Pledged time deposit 532,518.53 480,000.00
Deposit for prepaid account. 526,000.00
Long-term deposit for settlement and sale of foreign 551,217.45
exchange.
Total 420,985,826.61 129,978,697.21
2. Transactional financial assets.
Unit: yuan
Item Ending balance Opening balance.
Financial assets measured at fair value and
whose changes are included in the profits 464,871.13 1,039,381.59
and losses of the current period.
Of which:
Derivative financial assets 464,871.13 1,039,381.59
Financial assets that are designated to be
measured at fair value and whose changes
1,493,455,721.12 1,163,000,000.00
are included in the profits and losses of the
current period.
Of which:
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Bank investment in wealth management
1,393,209,890.44 1,163,000,000.00
products
Asset Management Portfolio 100,245,830.68
Total 1,493,920,592.25 1,164,039,381.59
Other instructions:
3. Notes receivable.
(1) classified presentation of notes receivable.
Unit: yuan
Item Ending balance Opening balance.
Unit: yuan
Ending balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book Book
Percenta Withdra Percentag Withdraw
Amount Amount value Amount Amount value
ge wal ratio e al ratio
Of which:
Of which:
Make provision for bad debts on a single basis:
Unit: yuan
Ending balance
Name
Book balance Bad debt provision Proportion of provision Justification of provision
Provision for uncollectible account according to combination:
Unit: yuan
Ending balance
Name
Book balance Bad debt provision Withdrawal ratio
Description of the basis for this composition:
If you provide bad debts for receivables according to expected credit loss general model please refer to other accounts receivable
disclosure methods to disclose relevant information about bad debts preparation:
□ Applicable √ Not applicable
(2) Preparation of bad debts for purposes of provision, recovery or reversal during this period
Provision for uncollectible account provision during this period:
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Unit: yuan
Amount of change during this period
Category Opening balance Ending balance
Provision Recover or return Write-offs Other
Of these loans who are important for recovery or reversal of bad debts during this period:
□ Applicable √ Not applicable
(3) Notes receivable pledged by the company in the end
Unit: yuan
Item Amount pledged at end of period
(4) Notes receivable that have been endorsed or discounted by the company at the end of the period and
have not yet matured on the balance sheet date.
Unit: yuan
Termination recognition amount at the end Unterminated recognition amount at the
Item
of the period. end of the period.
Bank acceptance bill. 30,175,863.86
Total 30,175,863.86
Notes transferred by the company to accounts receivable in the end due to non-performance by the drawer.
Unit: yuan
Item Amount payable for final conversion receivable
Other instructions.
(6) Actual write-off of notes receivable during this period
Unit: yuan
Item Write-offs amount
Of which, key notes receivable write offs:
Unit: yuan
Whether payments
Nature of notes Reasons for Write-off procedures are generated by
Unit name Write-offs amount
receivable write-offs performed associated
transactions
Description of the cancellation of notes receivable:
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4. Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: yuan
Ending balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Percenta Withdra Percentag Withdraw Book value
Amount Amount value Amount Amount
ge wal ratio e al ratio
Accounts receivable
that make provision 1,105,12 1,105,12 1,088,998 1,088,998
0.21% 100.00% 0.00 0.18% 100.00% 0.00
for bad debts on a 3.97 3.97 .63 .63
single basis
Of which:
Accounts receivable
for which individual
amounts are
significant and
provision for bad
debts is made
separately.
Accounts receivable
in which individual
amounts are not
1,105,12 1,105,12 1,088,998 1,088,998
significant but 0.21% 100.00% 0.00 0.18% 100.00% 0.00
3.97 3.97 .63 .63
provision for bad
debts is made
separately.
Accounts receivable
made by combination 534,610, 18,043,3 516,566,9 613,715,6 16,284,41 597,431,21
99.79% 3.38% 99.82% 2.65%
of provisions for bad 287.94 05.33 82.61 20.08 0.06 0.02
debts
Of which:
Age analysis 119,987, 5,257,14 114,730,1 110,307,0 4,164,569 106,142,44
22.39% 4.38% 17.94% 3.78%
combination 280.58 8.82 31.76 14.62 .70 4.92
Individual
414,623, 12,786,1 401,836,8 503,408,6 12,119,84 491,288,76
identification 77.40% 3.08% 81.88% 2.41%
007.36 56.51 50.85 05.46 0.36 5.10
combination
535,715, 19,148,4 516,566,9 614,804,6 17,373,40 597,431,21
Total 100.00% 3.57% 100.00% 2.83%
411.91 29.30 82.61 18.71 8.69 0.02
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Provision for bad debts on a single basis: accounts receivable that are not significant in a single amount but set aside the provision for
bad debts separately.
Unit: yuan
Ending balance
Name
Book balance Bad debt provision Withdrawal ratio Withdrawal reason
The customer goes
TECHSERVICE-KHAB
1,105,123.97 1,105,123.97 100.00% bankrupt and is unable to
AROVSK CJSC
pay off the maturing debt
Total 1,105,123.97 1,105,123.97 -- --
Make provision for bad debts on a single basis:
Unit: yuan
Ending balance
Name
Book balance Bad debt provision Withdrawal ratio Withdrawal reason
Provision for bad debts by combination: aging analysis combination.
Unit: yuan
Ending balance
Name
Book balance Bad debt provision Withdrawal ratio
Aging analysis combination 119,987,280.58 5,257,148.82 4.38%
Of which:
Within 1 year (including 1 year) 100,522,179.75 2,393,951.31 2.38%
1 to 2 years (inclusive) 15,113,709.21 755,685.46 5.00%
2 to 3 years (inclusive) 1,989,926.58 198,992.66 10.00%
3 to 4 years (inclusive) 196,868.19 59,060.46 30.00%
4 to 5 years (inclusive) 630,275.85 315,137.93 50.00%
More than 5 years 1,534,321.00 1,534,321.00 100.00%
Total 119,987,280.58 5,257,148.82 --
The description that determines the basis of the combination:
Set aside provisions for bad debts according to the combination:Individual identification combination
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Unit: yuan
Ending balance
Name
Book balance Bad debt provision Withdrawal ratio
Individual identification
414,623,007.36 12,786,156.51 3.08%
combination
Total 414,623,007.36 12,786,156.51 --
The description that determines the basis of the combination:
Set aside provisions for bad debts according to the combination:
Unit: yuan
Ending balance
Name
Book balance Bad debt provision Withdrawal ratio
The description that determines the basis of the combination:
If the provision for bad debts of accounts receivable is calculated according to the general model of expected credit loss, please refer
to the disclosure methods of other receivables to disclose the relevant information about the provision for bad debts:
□ Applicable √Not applicable
Disclosure by age.
Unit: yuan
Account age Ending balance
Within 1 year (including 1 year) 466,441,151.15
1 to 2 years 44,909,092.74
2 to 3 years 10,625,310.69
More than 3 years 13,739,857.33
3 to 4 years 3,735,333.99
4 to 5 years 2,086,291.88
More than 5 years 7,918,231.46
Total 535,715,411.91
(2) Provision for bad debts made, recovered or transferred in the current period.
Provision for bad debts in the current period:
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Unit: yuan
Current change amount
Category Opening balance To take back or Ending balance
Provision Write-off Other
turn back.
Make provision
for bad debts on a 1,088,998.63 16,125.34 1,105,123.97
single basis
Set aside
provisions for bad
debts according 16,284,410.06 1,589,868.74 33,482.69 12,956.13 215,465.35 18,043,305.33
to the
combination.
Total 17,373,408.69 1,589,868.74 33,482.69 12,956.13 231,590.69 19,148,429.30
Of which, the amount of bad debts to be recovered or transferred back in the current period is important:
Unit: yuan
Unit name Recover or return the amount Recovery mode
(3)The actual write-off of accounts receivable in the current period.
Unit: yuan
Item Write-off amount
Actual write-off of accounts receivable 12,956.13
Of which, the important write-off of accounts receivable:
Unit: yuan
Whether payments
Nature of accounts Reasons for Write-off procedures are generated by
Unit name Write-offs amount
receivable write-offs performed associated
transactions
Description of the write-off of accounts receivable:
(4)The status of the top five accounts receivable collected by the defaulting party at the end of the period.
Unit: yuan
As a percentage of the total
Ending balance of accounts Ending balance of provision for
Unit name balance of accounts receivable at
receivable bad debts
the end of the period
Client Ⅰ. 30,684,267.15 5.73%
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Client II. 22,606,055.60 4.22%
Client III. 21,833,416.99 4.08%
Client IV. 21,671,015.83 4.05% 1,083,550.79
Client Ⅴ. 12,914,950.86 2.41%
Total 109,709,706.43 20.49%
(5) Termination of recognized receivables due to transfer of financial assets.
(6) Transfer of receivables and continuing involvement in assets liabilities.
Other instructions:
5. Accounts receivable financing.
Unit: yuan
Item Ending balance Opening balance
Notes receivable 39,532,463.47 55,447,099.32
Total 39,532,463.47 55,447,099.32
Changes in the current period of financing of receivables and changes in fair value
□ Applicable √Not applicable
If the financing impairment provision for receivables is calculated according to the general model of expected credit loss, please refer
to the disclosure methods of other receivables to disclose the relevant information about the impairment provision:
□ Applicable √Not applicable
Other instructions:
6. Advance payment.
(1) Advance payment are shown by age.
Unit: yuan
Ending balance Opening balance
Account age
Amount Percentage Amount Percentage
Within 1 year 50,976,542.32 94.96% 24,221,885.95 93.52%
1 to 2 years 2,412,644.69 4.49% 1,367,636.64 5.28%
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2 to 3 years 35,566.61 0.07% 56,688.15 0.22%
More than 3 years 255,630.61 0.48% 254,913.11 0.98%
Total 53,680,384.23 -- 25,901,123.85 --
Explanation of the reasons for the non-timely settlement of advance payment with an age of more than one year and important
amounts:
(2) The advance payment of the top five balances collected by the prepaid object at the end of the period
According to the ending balance collected by prepaid objects, the sum of five advance payments amounts to 19,012,133.42,
accounting for 35% of total advance balance totals.
Other instructions:
7. Other receivables.
Unit: yuan
Item Ending balance Opening balance
Interest receivable 3,486,564.94 721,935.36
Other receivables 80,462,685.25 78,851,179.13
Total 83,949,250.19 79,573,114.49
(1) Interest receivable.
1) Classification of interest receivable.
Unit: yuan
Item Ending balance Opening balance
Time deposit 3,486,564.94 721,935.36
Total 3,486,564.94 721,935.36
2) Important overdue interest
Unit: yuan
Whether impairment
Loan unit Ending balance Overdue time Reasons for overdue happens and its
judgement basis
Other instructions:
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3) Provision for bad debts
□ Applicable √ Not applicable
(2) Dividends Receivable
1) Classification of dividend receivable
Unit: yuan
Project (or invested unit) Ending balance Opening balance
2) Important dividends receivable with an age of more than 1 year
Unit: yuan
Whether impairment
Reasons for not
Project (or invested unit) Ending balance Account age happens and its
reclaiming
judgement basis
3) Provision for bad debts
□ Applicable √ Not applicable
Other instructions:
(3) Other receivables.
1) Classification of other receivables by nature of the amount.
Unit: yuan
Nature of payment Book balance at the end of the period Opening book balance
Current payment 3,874,804.23 1,587,414.17
Margin, Deposit 5,494,022.30 10,743,022.49
Export tax rebate 2,123,129.21 2,110,960.29
Prepaid service charge 8,007,516.84 5,314,977.17
Other 20,237,781.00 14,117,024.25
Equity transfer 41,795,250.00 41,031,375.00
Employee loans, petty cash 1,793,231.27 986,143.77
Performance compensation 500,000.00 8,200,000.00
Total 83,825,734.85 84,090,917.14
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2) Provision for bad debts.
Unit: yuan
Phase 1 Phase 2 Phase 3
Expected credit loss Expected credit loss over Expected credit loss over
Provision for bad debts Total
over the next 12 the entire lifetime (no credit the entire lifetime (credit
months impairment occurs) impairment has occurred)
Balance of January 1,
2,779,738.01 2,460,000.00 5,239,738.01
2020
The balance of January 1,
2020 is in the current —— —— —— ——
period.
Current provision 486,001.13 486,001.13
Current reversal 90,928.43 2,310,000.00 2,400,928.43
Other change 38,238.89 38,238.89
Balance of June 30,
3,213,049.60 150,000.00 3,363,049.60
2020
Changes in the book balance of significant changes in the loss provision in the current period
□ Applicable √ Not applicable
Disclosure by age
Unit: yuan
Account age Ending balance
Within 1 year (including 1 year) 35,519,897.09
1 to 2 years 3,113,912.23
2 to 3 years 43,335,982.40
More than 3 years 1,855,943.13
3 to 4 years 996,268.52
4 to 5 years 424,057.52
More than 5 years 435,617.09
Total 83,825,734.85
3) Bad debt provision in the current period of withdrawal, recovery or reversal.
Provision for bad debts in the current period:
Unit: yuan
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Amount of changes in the current period
Category Opening balance Take back or turn Ending balance
Accrual Write off Other
back
Provision for bad
debts by single 2,460,000.00 2,310,000.00 150,000.00
item
Provision for bad
debts by 2,779,738.01 486,001.13 90,928.43 38,238.89 3,213,049.60
combination
Total 5,239,738.01 486,001.13 2,400,928.43 38,238.89 3,363,049.60
Of which the amount of bad debt provisions transferred or recovered is important:
Unit: yuan
Unit name Return or recovery amount Recovery mode
4) Actual write-off of other receivables during this period.
Unit: yuan
Item Write-offs amount
Key other receivables write-offs:
Unit: yuan
Whether payments
Nature of other Reasons for Write-off procedures are generated by
Unit name Write-offs amount
receivables write-offs performed associated
transactions
Description of the cancellation of other receivables:
5) Other receivables in the top five of the ending balance collected by the arrears.
Unit: yuan
Proportion of total Bad debt preparation
Unit name Nature of payment Ending balance Account age ending balance of period ending
other receivables balance
Client Ⅰ. Equity transfer 41,795,250.00 2-3years 49.70% 2,051,568.75
Client II. Advance payment 2,388,300.00 Within 1 year 2.84%
Client III. Insurance 1,430,467.83 Within 1 year 1.70%
Client IV. Petty cash 1,036,920.25 Within 1 year 1.23%
Client Ⅴ. Current payment 1,010,518.63 1-2years 1.20%
Total -- 47,661,456.71 -- 56.67% 2,051,568.75
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8.Inventory
Whether companies need to comply with disclosure requirements in real estate industry.
No
(1) Inventory classification.
Unit: yuan
Ending balance Opening balance
Inventory falling Inventory falling
price reserve or price reserve or
impairment impairment
Item
Book balance. preparation of Book value. Book value. preparation of Book value.
contract contract
performance performance
costs. costs.
Raw materials. 282,766,079.58 13,798,131.40 268,967,948.18 248,492,417.64 13,394,596.44 235,097,821.20
In product. 478,075,453.30 26,681,026.34 451,394,426.96 379,351,397.96 25,945,105.34 353,406,292.62
Inventory goods. 70,980,449.55 103,237.72 70,877,211.83 25,948,936.98 103,897.01 25,845,039.97
Send out goods. 33,445,506.01 33,445,506.01 43,439,406.00 43,439,406.00
Commissioned
processing 1,248,805.61 1,248,805.61 1,873,908.29 1,873,908.29
materials.
Semi-finished
12,709,989.34 175,245.95 12,534,743.39 12,014,421.40 244,188.37 11,770,233.03
product.
Total 879,226,283.39 40,757,641.41 838,468,641.98 711,120,488.27 39,687,787.16 671,432,701.11
(2) Inventory falling price reserve and impairment preparation of contract performance costs.
Unit: yuan
The amount increased in the current Reduced amount in the current
period period
Item Opening balance Ending balance
Turn back or.
Provision Other Other
Resale
Raw materials. 13,394,596.44 2,382,292.84 1,978,757.89 13,798,131.40
In product. 25,945,105.34 735,921.00 26,681,026.34
Inventory goods. 103,897.01 659.28 103,237.72
Send out goods.
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Semi-finished
244,188.37 68,942.42 175,245.95
product.
Total 39,687,787.16 3,118,213.84 2,048,359.59 40,757,641.41
(3) The ending balance of inventory contains the capitalization amount of borrowing costs.
(4) Description of amortization amount for contract performance costs
9. Non-current assets maturing within one year.
Unit: yuan
Item Ending balance Opening balance
Long-term receivables due within one year 356,983.48
Total 356,983.48
Important debt investments/other debt investments.
Unit: yuan
Ending balance Opening balance
Creditor's rights project. Coupon Real Expiration Coupon Real Expiration
Face value. Face value.
rate. interest rate. date. rate. interest rate. date.
Other instructions:
10. Other current assets.
Unit: yuan
Item Ending balance Opening balance
VAT to be deducted input tax. 243,836.30
Value-added tax allowance. 6,067,878.45 2,209,523.18
Prepaid tax. 107,403,210.35 14,404,806.23
Prepaid interest expense. 221,013.29 129,649.62
Prepaid expenses. 40,782.78 207,209.64
Other. 6,357,246.28 5,395,125.62
Total 120,333,967.45 22,346,314.29
Other instructions:
11. Long-term equity investment.
Unit: yuan
Invested Opening Changes in the current period. Ending Impairme
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unit. balance Investme balance nt
Other
(book nt profit (book provision
Make an comprehe Changes Declare a Provision
value). Reduce and loss value) ending
additional nsive in other cash for
investmen recognize Other balance
investmen income rights and dividend impairme
t. d under
t. adjustmen interests. or profit. nt.
the equity
t.
method.
I. Joint Venture
Foshan
Yinglian
Digital
Printing
equipmen
t Co., Ltd. 10,510,73 -86,657.9 10,424,07
(hereinaft 5.47 2 7.55
er
referred
to as
"Yinglian
Digital")
10,510,73 -86,657.9 10,424,07
Subtotal
5.47 2 7.55
II. Combined venture
Jiateng 60,136,74 7,700,000 110,329.2 67,947,07
robot 0.98 .00 9 0.27
Talleres 1,724,878 1,756,990
32,111.70
Tapre .58 .28
61,861,61 110,329.2 69,704,06
Subtotal 32,111.70
9.56 9 0.55
72,372,35 7,700,000 80,128,13
Total 23,671.37 32,111.70
5.03 .00 8.10
Other instructions
12. Other non-current financial assets.
Unit: yuan
Item Ending balance Opening balance
Financial assets measured at fair value and
whose changes are included in the profits 17,649,624.09 20,559,159.34
and losses of the current period
Total 17,649,624.09 20,559,159.34
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Other instructions:
13. Fixed assets.
Unit: yuan
Item Ending balance Opening balance
Fixed assets 569,720,809.77 585,754,900.75
Total 569,720,809.77 585,754,900.75
(1) The status of fixed assets.
Unit: yuan
Houses and machinery Transport Office Electronic Other
Item Total
buildings. equipment. equipment equipment. equipment. equipment
I. The original
book value:
1. Opening 1,096,136,115.
574,397,960.97 445,755,180.38 24,705,378.27 12,882,317.00 4,918,690.55 33,476,588.51
balance. 68
2.The amount
increased in the
current period.
(1) Purchase. 340,080.86 2,379,807.02 445,463.73 386,754.84 543,278.40 452,720.95 4,548,105.80
(2) Transfer of
projects under 71,825.45 1,123,893.80 1,195,719.25
construction.
(3) Increase in
business 913,755.62 913,755.62
consolidation.
The impact of
exchange rate 2,737,984.36 5,570,271.53 82,636.84 191.69 163,080.50 8,554,164.92
changes.
3. Reduced
amount in the
current period.
(1) Disposal or
scrap
4.Ending 1,111,347,861.
577,547,851.64 455,742,908.35 25,233,478.84 13,269,071.84 5,462,160.64 34,092,389.96
balance. 27
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2 Accumulated
depreciation.
1.Opening
152,930,326.96 316,051,462.47 17,885,349.67 5,284,747.59 2,617,618.04 15,611,710.20 510,381,214.93
balance.
2.The amount
increased in the
current period.
（1）Provision. 8,848,153.57 11,972,900.62 993,681.86 761,908.19 412,961.05 1,601,926.62 24,591,531.91
The impact of
exchange rate 1,725,010.82 4,686,495.53 112,192.98 17.50 130,587.83 6,654,304.66
changes.
3.Reduced
amount in the
current period.
（1）Disposal
or scrap.
4.Ending
163,503,491.35 332,710,858.62 18,991,224.51 6,046,655.78 3,030,596.59 17,344,224.65 541,627,051.50
balance.
3.Provision for
impairment.
1.Opening
balance.
2.The amount
increased in the
current period.
（1）Provision.
3.Reduced
amount in the
current period.
（1）Disposal
or scrap.
4.Ending
balance.
4 Book value.
1. Final book 414,044,360.29 123,032,049.73 6,242,254.33 7,222,416.06 2,431,564.05 16,748,165.31 569,720,809.77
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value.
2.Book value at
the beginning 421,467,634.01 129,703,717.91 6,820,028.60 7,597,569.41 2,301,072.51 17,864,878.31 585,754,900.75
of the period
14. Projects under construction.
Unit: yuan
Item Ending balance Opening balance
Projects under construction 12,735,416.77 4,839,241.48
Total 12,735,416.77 4,839,241.48
(1) Projects under construction.
Unit: yuan
Ending balance Opening balance
Item Impairment Impairment
Book balance. Book value Book balance. Book value
reserve. reserve.
Equipment
12,558,994.19 12,558,994.19 4,756,170.68 4,756,170.68
installation
Software
83,070.80 83,070.80 83,070.80 83,070.80
installation.
Plant construction 93,351.78 93,351.78
Total 12,735,416.77 12,735,416.77 4,839,241.48 4,839,241.48
(2) Changes in the current period of important projects under construction.
Unit: yuan
The Of
cumulati which:
The
ve Cumulati the
The amount
Other investme ve capitaliz Current
amount of fixed
reduction nt of the amount ed interest
Project Opening increased assets Ending Project Source
Budget. s in the project of amount capitaliz
name. balance. in the transferr balance. progress. of funds
current accounts interest of ation
current ed in the
period. for the capitaliz interest rate.
period. current
proportio ation. in the
period.
n of the current
budget. period.
Software 83,070.8 83,070.8
Other
installati 0 0
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on.
Parsun
Power
equipme
nt
1,274,33 1,123,89 150,442.
installati Other
6.28 3.80 48
on and
Engineer
ing
Project.
Fosber
Group
equipme 3,481,83 8,761,84 12,243,6
Other
nt 4.40 1.62 76.02
installati
on
4,839,24 8,761,84 1,123,89 12,477,1
Total -- -- --
1.48 1.62 3.80 89.30
15. Intangible assets.
(1) Intangible assets.
Unit: yuan
Non-patented Land
Item Land use right. right of patent. Trademark. Software. Total
technology. ownership
I. The original
book value:
1. Opening
98,846,238.53 64,977,998.71 16,721,290.00 117,272,310.51 26,013,377.24 323,831,214.99
balance.
2.The amount
increased in the
current period.
(1) Purchase. 6,188,203.84 485,640.90 344,584.54 7,018,429.28
(2) Transfer of
projects under
construction.
(3) Increase in
business 10,158,872.88 56,155,450.43 66,314,323.31
consolidation.
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The impact of
exchange rate 1,203,377.25 311,297.76 2,173,594.57 252,022.41 3,940,291.99
changes.
3. Reduced
amount in the
current period.
(1) Disposal or
2,103,053.15 2,103,053.15
scrap
4. Ending
98,846,238.53 82,528,452.68 17,032,587.76 176,086,996.41 24,506,931.04 399,001,206.42
balance.
2 Accumulated
depreciation.
1. Opening
17,530,690.04 38,222,325.59 143,923.41 18,051,846.42 73,948,785.46
balance.
2.The amount
increased in the
current period.
（1）Provision. 1,068,224.29 5,321,471.49 1,329,079.01 763,047.65 8,481,822.44
The impact of
exchange rate 707,399.04 1,634.31 234,649.37 943,682.72
changes.
3.Reduced
amount in the
current period.
（1）Disposal
2,087,890.79 2,087,890.79
or scrap.
4.Ending
18,598,914.33 44,251,196.12 1,474,636.73 16,961,652.65 81,286,399.83
balance.
3.Provision for
impairment.
1.Opening
balance.
2.The amount
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increased in the
current period.
（1）Provision.
3.Reduced
amount in the
current period.
（ 1 ） Disposal
or scrap.
4.Ending
balance.
4 Book value.
1. Final book
80,247,324.20 38,277,256.56 17,032,587.76 174,612,359.68 7,545,278.39 317,714,806.59
value.
2.Book value at
the beginning 81,315,548.49 26,755,673.12 16,721,290.00 117,128,387.10 7,961,530.82 249,882,429.53
of the period
The proportion of intangible assets formed by internal research and development of the company to the balance of intangible assets at
the end of this period.
16. Goodwill.
(1) Original book value of goodwill.
Unit: yuan
The name of the Increase in this period. Decrease in this period.
investee or the Formed by the The impact of
Opening balance. Ending balance
formation of merger of exchange rate Disposal.
goodwill. enterprises. changes.
Fosber Group 160,456,740.18 2,987,199.24 163,443,939.42
Parsun Power 208,031,946.10 208,031,946.10
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Italy EDF 68,613,864.09 1,277,374.10 69,891,238.19
Italy QCorr 23,096,745.69 23,096,745.69
Total 437,102,550.37 23,096,745.69 4,264,573.35 464,463,869.40
(2) provision for impairment of goodwill.
Unit: yuan
The name of the Increase in this period. Decrease in this period.
investee or the Formed by the The impact of
Opening balance. Ending balance
formation of merger of exchange rate Disposal.
goodwill. enterprises. changes.
Parsun Power 61,855,054.35 61,855,054.35
Italy EDF 68,613,864.09 1,277,374.10 69,891,238.19
Total 130,468,918.44 1,277,374.10 131,746,292.54
Information about the asset group or asset group portfolio where goodwill is located.
Explain the goodwill impairment testing process, the key parameters (such as the forecast period growth rate, stable period growth
rate, profit margin, discount rate, forecast period, etc.) and the confirmation method of goodwill impairment loss when predicting the
present value of future cash flow:
The influence of goodwill impairment test.
Other instructions.
17. Long-term prepaid expenses.
Unit: yuan
The amount Amortization
Other reduced
Item Opening balance increased in the amount for the Ending balance
amounts
current period. current period.
Expenditure on
supporting projects 1,831.03 627,344.72 208,516.90 420,658.85
of factory buildings.
Office network
38,384.58 1,820.42 36,564.16
construction.
Expenditure on plant
4,902,531.76 356,404.72 626,630.90 4,632,305.58
decoration.
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CE certification
28,066.04 2,122.64 25,943.40
service fee.
Amortization of
86,864.45 14,368.43 72,496.02
leased assets.
Shenzhen Office. 2,966,362.95 2,460.39 233,724.77 2,735,098.57
Mold amortization 675,195.52 3,656,637.19 959,441.12 3,372,391.59
Total 8,699,236.33 4,642,847.02 2,046,625.18 11,295,458.17
Other instructions.
18. Deferred income tax assets / deferred income tax liabilities.
(1) Unoffset deferred income tax assets.
Unit: yuan
Ending balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference. assets difference. assets
Provision for impairment
35,514,749.56 6,531,173.61 40,047,445.90 7,625,373.36
of assets.
Unrealized profit from
40,064,662.50 9,615,519.00 35,104,949.11 7,347,281.21
insider trading.
Deductible loss 44,307,619.87 10,588,313.44 32,046,890.02 8,501,046.65
Credit impairment
6,505,185.93 406,099.59 8,003,088.75 501,069.70
reserve.
Deferred income. 28,989,318.08 6,957,436.34 26,277,954.05 6,306,709.91
Estimated
liability-after-sales 66,800,201.71 16,032,048.41 65,787,362.65 16,007,718.04
maintenance service fee.
Withholding expenses. 7,757,952.04 2,170,840.49 7,338,871.73 1,834,719.89
Other 4,228,405.08 1,143,933.25 3,081,562.71 901,102.85
Financial liabilities
measured at fair value
and whose changes are
637,564.96 153,015.59
included in the profits
and losses of the current
period.
Equity incentive fee
10,185,067.00 1,554,800.05
during first unlocking
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period
Total 244,990,726.73 55,153,179.77 217,688,124.92 49,025,021.61
(2) Unoffset deferred income tax liability.
Unit: yuan
Ending balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference. assets difference. assets
Value-added evaluation
of assets of non-identical
56,486,874.12 10,481,294.88 55,686,591.83 10,912,760.98
control enterprises'
merger.
Depreciation difference
11,150,212.42 2,676,050.98 10,397,629.99 2,636,973.15
of fixed assets.
Government subsidy
1,025,011.92 246,002.86 1,006,278.22 241,506.77
difference.
Prepaid account. 117,991.63 28,317.99 1,669,971.57 418,570.04
Financial assets
measured at fair value
and whose changes are
1,445,139.08 368,824.82 2,378,966.50 580,080.66
included in the profits
and losses of the current
period.
Other 496,856.88 119,245.65 7,202,199.04 2,125,801.31
Total 70,722,086.05 13,919,737.18 78,341,637.15 16,915,692.91
(3) Deferred income tax assets or liabilities shown in net offset.
Unit: yuan
Deferred income tax Deferred income tax Deferred income tax Deferred income tax
assets or liabilities assets or liabilities assets and liabilities asset or liability balance
Item
ending balance after ending balance after offset at the beginning of at the beginning of the
set-off. set-off. the period. period after set-off
Deferred income tax
55,153,179.77 49,025,021.61
assets
Deferred income tax
13,919,737.18 16,915,692.91
liability
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(4) Details of unrecognized deferred income tax assets.
Unit: yuan
Item Ending balance Opening balance
Deductible temporary difference 14,880,268.60 14,250,399.21
Total 14,880,268.60 14,250,399.21
19.Other non-current assets.
Unit: yuan
Ending balance Opening balance
Item Book Impairment Book Impairment
Book value Book value
balance. reserve. balance. reserve.
Prepaid purchase of long-term assets. 38,700.00 38,700.00
Financing fees related to prepaid long-term
1,443,594.59 1,443,594.59 2,480,118.56 2,480,118.56
loans
Total 1,443,594.59 1,443,594.59 2,518,818.56 2,518,818.56
Other instructions:
20. Short-term loan.
(1) Classification of short-term borrowings.
Unit: yuan
Item Ending balance Opening balance
Credit loan 82,888,933.77 117,888,353.14
Total 82,888,933.77 117,888,353.14
Description of the classification of short-term borrowings:
21.Transactional financial liabilities.
Unit: yuan
Item Ending balance Opening balance
Transactional financial liabilities. 304,022.63
Of which:
Derivative financial liabilities. 304,022.63
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Of which:
Total 304,022.63
Other instructions:
22. Notes payable.
Unit: yuan
Category Ending balance Opening balance
Bank acceptance bill 51,457,356.15 43,973,859.51
Total 51,457,356.15 43,973,859.51
The total amount of notes payable due and unpaid at the end of the current period is 0.00 yuan.
23. Accounts payable.
(1) Presentation of accounts payable.
Unit: yuan
Item Ending balance Opening balance
Long-term asset payments. 69,749.79
Purchase inventory. 451,499,653.44 470,629,176.02
Processing fee 712,857.59
Other 61,705.84 1,450,961.05
Total 451,561,359.28 472,862,744.45
24. Payment received in advance.
(1) Presentation of advance receipts.
Unit: yuan
Item Ending balance Opening balance
25. Contractual Liabilities
Unit: yuan
Item Ending balance Opening Balance
Contributions received in advance 442,374,748.64 286,511,724.62
Total 442,374,748.64 286,511,724.62
Amount and reasons for significant changes in book value during reporting period
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Unit: yuan
Item Amount of change Reason of change
26. Salary payable to staff and workers.
(1) List of salaries payable to staff and workers.
Unit: yuan
Item Opening balance Increase in this period Decrease in this period Ending balance
1. Short-term salary. 98,755,045.52 185,703,447.51 201,530,616.91 82,927,876.12
2.After-service
benefits-set up a 7,922,284.43 30,178,032.44 32,668,714.37 5,431,602.50
withdrawal plan
Total 106,677,329.95 215,881,479.95 234,199,331.28 88,359,478.62
(2) Presentation of short-term remuneration.
Unit: yuan
Item Opening balance Increase in this period Decrease in this period Ending balance
1. Wages, bonuses,
94,103,058.39 158,956,074.70 175,350,323.87 77,708,809.22
allowances and subsidies.
2. Welfare expenses for
3,860,673.44 15,579,306.28 15,186,554.96 4,253,424.76
staff and workers.
3. Social insurance
89,969.07 9,955,872.80 9,756,411.75 289,430.12
premium.
Of which: medical
89,969.07 8,696,700.37 8,690,927.59 95,741.85
insurance premium.
Industrial injury
0.00 994,966.35 801,278.08 193,688.27
insurance premium.
Maternity insurance
0.00 264,206.08 264,206.08 0.00
premium.
4. Housing provident
0.00 988,008.09 988,008.09 0.00
fund.
5. Funds for trade unions
and education for staff 701,344.62 224,185.64 249,318.24 676,212.02
and workers
Total 98,755,045.52 185,703,447.51 201,530,616.91 82,927,876.12
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(3) Set up the withdrawal plan and list it.
Unit: yuan
Item Opening balance Increase in this period Decrease in this period Ending balance
1. Basic old-age
7,922,284.43 29,914,228.47 32,404,910.40 5,431,602.50
insurance.
2. Unemployment
0.00 263,803.97 263,803.97 0.00
insurance premium
Total 7,922,284.43 30,178,032.44 32,668,714.37 5,431,602.50
Other instructions:
27. Taxes payable.
Unit: yuan
Item Ending balance Opening balance
Value added tax. 1,661,438.62 7,909,778.04
Corporate income tax. 16,181,400.77 27,833,282.53
Individual income tax. 9,474,664.55 7,786,676.05
Urban maintenance and construction tax. 16,474.66 667,743.61
Additional education fees. 11,767.62 476,959.72
Stamp duty 27,162.90 810,738.35
Property tax 1,482,729.68 211,158.54
Land use tax 205,153.80 34,530.60
Other 3,011,539.80 3,197,362.07
Total 32,072,332.40 48,928,229.51
Other instructions:
28. Other payables.
Unit: yuan
Item Ending balance Opening balance
Interest payable. 2,426,515.21 1,410,745.58
Other payables 102,930,274.23 89,539,697.58
Total 105,356,789.44 90,950,443.16
197
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(1) Interest payable.
Unit: yuan
Item Ending balance Opening balance
Interest payable on long-term loans 2,426,515.21 1,410,745.58
Total 2,426,515.21 1,410,745.58
Important overdue interest payments:
Unit: yuan
Loan unit. Overdue amount. Overdue reason
Other instructions:
(2) Dividends payable.
Unit: yuan
Item Ending balance Opening balance
Other statements, including important dividends payable unpaid for more than one year, shall disclose the reasons for non-payment:
(3) Other payables.
1) List other payables by nature of the amount.
Unit: yuan
Item Ending balance Opening balance
Security deposit. 316,164.78 205,000.00
Current payment. 3,433,252.75 10,392,785.36
Withholding expenses. 43,702,528.93 46,603,711.83
Equity acquisition funds. 26,350,910.00 25,869,305.00
Equipment engineering fund. 390,805.97 637,290.63
Other 6,112,632.84 5,651,127.60
Petty cash 23,978.96 180,477.16
Restrictive stock repurchase funds. 22,600,000.00
Total 102,930,274.23 89,539,697.58
2) Other important payables with an age of more than one year.
Unit: yuan
198
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Item Ending balance Reasons for non-repayment or carryover
Former shareholder of Italy EDF equity
26,350,910.00 Missed the agreed time of payment
acquisition funds.
Total 26,350,910.00 --
Other instructions.
29. Non-current liabilities due within one year.
Unit: yuan
Item Ending balance Opening balance
A long-term loan due within one year 491,320,129.60 353,399,238.29
Total 491,320,129.60 353,399,238.29
Other instructions:
30. Long-term loan.
(1) Classification of long-term loans.
Unit: yuan
Item Ending balance Opening balance
Mortgage loan 6,848,052.20 9,645,245.56
Guaranteed loan 191,323,440.00
Credit loan 42,244,876.05 23,177,981.92
Total 49,092,928.25 224,146,667.48
Description of the classification of long-term borrowings:
Other instructions, including the interest rate range:
31. Long-term salary payable to staff and workers.
(1) Long-term salary scale payable to staff and workers.
Unit: yuan
Item Ending balance Opening balance
I. After-service benefits-setting net
17,938,177.86 12,252,657.36
liabilities for benefit plans
Total 17,938,177.86 12,252,657.36
199
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(2) Set up changes in the benefit plan.
Set the present value of benefit plan obligations:
Unit: yuan
The occurrence amount of the previous
Item Current occurrence amount.
period
I. Opening balance. 12,252,657.36 10,163,946.95
II. The set benefit cost that is included in
5,241,486.25 1,923,772.98
the profits and losses of the current period.
1. Current service cost 215,928.35
4. Net interest. 5,025,557.90 1,923,772.98
IV. Other changes. 444,034.25 164,937.43
2. Paid benefits 215,928.35
3. Exchange rate change. 228,105.90 164,937.43
V. Ending balance 17,938,177.86 12,252,657.36
Program assets:
Unit: yuan
The occurrence amount of the previous
Item Current occurrence amount.
period
Set the net liability (net assets) of the benefit plan
Unit: yuan
The occurrence amount of the previous
Item Current occurrence amount.
period
Description of the content of the benefit plan and the risks associated with it, and the impact on the company's future cash flow,
timing and uncertainty:
Set up major actuarial assumptions for the benefit plan and explain the results of the sensitivity analysis:
Other instructions:
32. Estimated liabilities.
Unit: yuan
200
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Item Ending balance Opening balance Cause of formation
Product quality assurance. 92,989,543.32 73,639,095.36
Other. 5,104,667.08 5,011,371.12
Total 98,094,210.40 78,650,466.48 --
Other notes, including important assumptions and estimated statements relating to important estimated liabilities:
33. Deferred income.
Unit: yuan
Item Opening balance Increase this time Decrease this time Ending balance Cause of formation
Goverment subsidy 18,275,808.90 707,160.31 17,568,648.59
Total 18,275,808.90 707,160.31 17,568,648.59 --
Projects involving government subsidies:
Unit: yuan
The amount The amount The amount
The amount of of other of deduction
Related to
Opening of new non-operatin income will of costs and Other Ending
Debt item. assets /
balance. subsidy in g income in be included expenses in changes. balance.
earnings
this period. the current in the current the current
period. period. period.
Compensation for
demolition and
3,852,17 Related to
relocation of the 148,830.31 3,703,346.93
old factory 7.24 assets
building on
Jinfeng Road.
Amortized
deferred income
(4 Mitsubishi
14,423,6 13,865,301.6 Related to
gantry machining 558,330.00
centers, 3 fixed 31.66 6 assets
beam gantry
machining
centers)
18,275,8 17,568,648.5 Related to
Total 707,160.31
08.90 9 assets
Other instructions:
201
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34. Share capital.
Unit: yuan
This change increases or decreases (+, -)
Opening Conversion of
Issue new Ending balance
balance Send shares. provident fund Other Subtotal
shares
into stock.
Total number 1,838,647,096. -293,520,139.0 -293,520,139.0 1,545,126,957.
of shares 00 0 0 00
Other instructions:
Other changes in the shares in the period are the Company's repurchase of 293,520,139.00 shares of performance compensation
shares that should be borne by Pride's original shareholders at a price of RMB 1.
35. Capital reserve.
Unit: yuan
Item Opening balance Increase this period Decrease this period Ending balance
Capital premium (equity
3,862,090,284.37 293,520,138.00 80,682,000.00 4,074,928,422.37
premium)
Other capital reserve 287,554.47 10,185,066.67 10,472,620.47
Total 3,862,377,838.84 303,705,204.67 80,682,000.00 4,085,401,043.51
Other explanations, including the changes in the current period and the reasons for the changes:
The changes in capital reserve in the current period mainly include:
1. In January 2020, the Company bought back 293,520,139.00 performance compensation shares at a price of RMB 1, increasing the
equity premium by 293,520,138.00 yuan.
2. In June 2020, the Company received a total of RMB 22,600,000.00 for the first subscription of restricted stocks under the current
incentive plan, and the difference between the amount received for the grant of restricted stocks and the repurchase cost was
80,682,000.00 included in the equity premium. The amount of amortization granted to restricted shares in the current period is RMB
10,185,066.67 included in other capital reserves. For details, see note XIII and note 37.
36. Treasury shares.
Unit: yuan
202
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Item Opening balance Increase this period Decrease this period Ending balance
Share repurchase 160,088,925.60 22,600,000.00 103,282,000.00 79,406,925.60
Total 160,088,925.60 22,600,000.00 103,282,000.00 79,406,925.60
Other explanations, including the changes in the current period and the reasons for the changes:
In the first half of 2020, the Company awarded 22,600,000.00 restricted shares, confirmed that the cost of inventory shares delivered
to employees was 22,600,000.00 yuan, and reduced the cost of repurchased inventory shares by 103,282,000.00 yuan. The difference
between the amount received for the grant of restricted shares and the repurchase cost was 80,682,000.00 included in the equity
premium, as detailed in note XIII..
37. Other comprehensive income.
Unit: yuan
Current occurrence amount
Minus: in
Minus: the the prior
previous period, it
The period is is included
amount included in in other
incurred other comprehe Belong to Belong to
Opening Minus: Ending
Item before the comprehensi nsive the parent minority
balance income tax balance
income tax ve income income company shareholde
expenses.
of the and and after tax. rs after tax
current transferred to transferred
period. profit or loss to retained
in the current earnings in
period. the current
period.
I. Other comprehensive income
258,549.
that cannot be reclassified into 192,829.89 65,719.32 65,719.32
21
profit or loss.
Of which: re-measure the amount 258,549.
192,829.89 65,719.32 65,719.32
of change in the benefit plan. 21
2.Other comprehensive income
24,778,255. 3,886,194. 3,886,194. 28,664,4
that is reclassified into profit or
43 37 37 49.80
loss.
460,113.
Cash flow hedging reserve. 460,113.12
12
Translation difference of foreign 24,822,227. 3,886,194. 3,886,194. 28,708,4
currency financial statements. 50 37 37 21.87
203
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-504,085
Other. -504,085.19
.19
24,971,085. 3,951,913. 3,951,913. 28,922,9
Total other comprehensive income
32 69 69 99.01
Other instructions, including the conversion of the effective portion of the hedging profit or loss of cash flow to the initial recognition
amount of the hedged item:
38. Surplus reserve.
Unit: yuan
Item Opening balance Increase this period Decrease this period Ending balance
Statutory surplus reserve 51,830,974.45 51,830,974.45
Total 51,830,974.45 51,830,974.45
A description of the surplus reserve, including the changes in the current period and the reasons for the changes:
39. Undistributed profits.
Unit: yuan
Item Current period. Last period
Undistributed profit at the end of the previous
-1,280,673,461.14 -3,118,692,266.64
period before adjustment.
Adjust the initial undistributed profit in the later
-1,280,673,461.14 -3,118,692,266.64
period.
Plus: net profit attributable to the owner of the
127,198,462.09 1,838,018,805.50
parent company for the current period.
Undistributed profit at the end of the period -1,153,474,999.05 -1,280,673,461.14
Details of undistributed profits at the beginning of the adjustment period:
1) Due to the retroactive adjustment of the Accounting Standards for Enterprises and its related new regulations, the undistribut ed
profit at the beginning of the period was affected by 0.00 yuan.
2) Due to the change of accounting policy, the undistributed profit at the beginning of the period is 0.00 yuan.
3) Due to the correction of major accounting errors, the undistributed profit at the beginning of the period was affected by 0.00 yuan.
4) Due to the change of the merger scope caused by the same control, the undistributed profit at the beginning of the period is
affected by 0.00 yuan.
5) Other adjustments affect the undistributed profit at the beginning of the period by 0.00 yuan.
204
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40. Operating income and operating costs.
Unit: yuan
Current occurrence amount. The occurrence amount of the previous period
Item
Income. Cost Income Cost
Main business. 1,122,698,491.71 803,803,269.33 4,338,799,337.75 3,658,110,891.89
Other business 54,792,733.42 38,023,554.51 52,549,957.14 38,739,661.57
Total 1,177,491,225.13 841,826,823.84 4,391,349,294.89 3,696,850,553.46
41. Taxes and surcharges.
Unit: yuan
The occurrence amount of the previous
Item Current occurrence amount.
period
Urban maintenance and construction tax. 1,731,517.11 3,828,494.09
Additional education fees. 1,220,501.41 3,536,110.17
Property tax. 2,203,219.15 1,846,374.71
Land use tax. 239,684.40 237,589.81
Vehicle and vessel use tax. 9,930.39 5,170.00
Stamp duty. 217,428.91 2,722,013.61
Other 65,860.55 347,628.80
Total 5,688,141.92 12,523,381.19
Other instructions:
42. Sales expenses.
Unit: yuan
The occurrence amount of the previous
Item Current occurrence amount.
period
Staff and workers' salary. 22,078,365.25 26,505,157.11
Travel expenses 2,516,914.22 7,656,129.90
Transportation fee. 16,540,528.79 35,244,883.21
Commission and agency fee. 20,394,895.39 24,982,046.78
Advertising and exhibition fees. 2,247,452.05 6,198,614.97
Office expenses and other things. 5,324,784.18 8,443,405.38
Product quality deposit. 17,951,965.17 78,995,177.25
Other 4,240,684.75 6,130,242.19
205
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Total 91,295,589.80 194,155,656.79
Other instructions:
43. Administrative expenses.
Unit: yuan
The occurrence amount of the previous
Item Current occurrence amount.
period
Staff and workers' salary. 59,770,138.86 79,638,383.51
Depreciation and amortization of assets 12,977,606.64 20,178,298.17
Tax and fee. 1,750,066.68 2,444,092.63
Travel expenses and business hospitality
4,401,637.79 4,713,549.15
expenses.
Acquisition and intermediary fees 1,826,187.43 312,914.53
Office expenses and other things 18,267,256.03 27,547,965.46
Consulting fee 10,079,079.98 13,846,094.47
Maintenance fee 3,052,535.81 2,484,111.84
Share payment 10,185,066.67
Total 122,309,575.89 151,165,409.76
Other instructions:
44. Research and development expenses.
Unit: yuan
The occurrence amount of the previous
Item Current occurrence amount.
period
Staff and workers' salary. 23,210,086.32 34,823,358.29
Material cost. 1,506,176.53 6,791,677.41
Utilities. 342,355.00 1,390,408.90
Depreciation amortization expense 5,869,247.71 7,045,372.51
Other costs 4,277,058.43 8,898,431.79
Total 35,204,923.99 58,949,248.90
Other instructions:
45. Financial expenses.
Unit: yuan
The occurrence amount of the previous
Item Current occurrence amount.
period
206
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Interest expense. 6,239,583.43 10,735,147.11
Minus: interest income. 11,409,249.10 12,761,403.50
Exchange profit and loss. -589,906.60 376,194.23
Other. 4,025,054.09 6,181,203.77
Discounted interest 8,382,620.07
Total -1,734,518.18 12,913,761.69
Other instructions:
46. Other income.
Unit: yuan
The occurrence amount of the previous
Sources of other income. Current occurrence amount.
period
Amortized deferred income (4 Mitsubishi
gantry machining centers, 3 fixed beam 558,330.00 558,330.00
gantry machining centers)
Patent funding for the Council for the
15,000.00
Promotion of economy and Technology.
Special funds for the demonstration
Enterprise Project of "Intelligent
Manufacturing and essential Safety" of 480,000.00
Foshan production Safety Supervision and
Administration Bureau.
Special funds for Enterprise Research and
Development in Foshan Nanhai District
246,300.00
Economic and Science and Technology
Promotion Bureau in 2016 and 2017.
Subsidies for top 50 scientific and
technological projects of Foshan Nanhai
Economic and Science and Technology 1,000,000.00
Promotion Bureau in 2018 (benchmarking
high-tech) enterprises.
Compensation for demolition and
relocation of the old factory building on 148,830.31 148,830.31
Jinfeng Road.
Equipment subsidy of Liyang Project
Investment by the Management Committee
623,602.21
of Jiangsu Zhongguancun Science and
Technology Industrial Park
Foshan Nanhai District Economic and 153,000.00
207
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Science and Technology Promotion Bureau
2017 Special Support Award for the
Development of High-tech Enterprises
Special fund for foreign trade cooperation
200,000.00
in 2018
The first batch of small and medium-sized
enterprises to open up international market 58,500.00
support funds in 2018
Reward for Advanced Enterprises in
30,000.00
Economic Development Zone in 2018
Beijing Patent Grant 5,950.00
2018 Zhongguancun promotes innovation
ability and optimizes innovation 12,000.00
environment support funds (patent part)
Refund of income tax service fee 194,481.14
Stable post allowance 104,971.53
Special funds for intellectual property
funded by patents of Nanhai Market 40,894.00
Supervision Administration in 2019
Foshan Nanhai Economic Promotion
Bureau 2019 Foreign Trade Development
Special Fund (Foreign Trade small and 2,240,000.00
medium-sized Enterprises to develop the
International Market) Project
Foshan Nanhai Economic Promotion
Bureau basic electricity subsidy for
53,040.00
transformer capacity of large industrial
enterprises in 2018
Foshan Nanhai Economic Promotion
Bureau to reduce the cost of electricity 50,000.00
consumption and subsidize funds in 2018
The Bureau of Science and Technology
recognized the subsidy funds for high-tech 300,000.00
enterprises in 2019
Business development (the fourth batch)
small and medium-sized development 59,700.00
projects
Slicing funds for provincial business
development in 2019 (the third batch) 33,000.00
small and medium-sized enterprises
208
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Financial incentives for the transformation
and upgrading of provincial industrial 20,000.00
information industry in 2019
Domestic and Foreign Patent Grants of
5,300.00
Suzhou High-tech Zone in 2019
Special fund for building advanced
manufacturing base at Suzhou municipal
400,000.00
level in 2020 (specialized new enterprise
cultivation project)
2019 Suzhou High-tech Zone High-tech
50,000.00
leading Talent Enterprise Award
Region-wide trademark subsidy in 2019 41,600.00
Foreign government subsidies 1,345,206.55
Foshan Nanhai Social Security Bureau
Enterprise affected unemployment 1,451,918.40
Insurance return Project Allowance
Total 7,097,271.94 3,531,512.52
47. Return on investment.
Unit: yuan
The occurrence amount of the previous
Item Current occurrence amount.
period
Long-term equity investment income
23,671.37 538,060.82
calculated by equity method.
Bank wealth management product income. 32,701,312.96 9,563,771.46
Total 32,724,984.33 10,101,832.28
Other instructions:
48. Income from changes in fair value.
Unit: yuan
The source of income from changes in fair The occurrence amount of the previous
Current occurrence amount.
value period
Transactional financial assets 13,309,111.52
Total 13,309,111.52
Other instructions:
49. Loss of credit impairment.
Unit: yuan
209
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The occurrence amount of the previous
Item Current occurrence amount.
period
Losses on bad debts of other receivables. 1,914,927.30 3,107,422.81
Loss of bad debts on accounts receivable -1,556,386.05 -42,550,891.99
Total 358,541.25 -39,443,469.18
Other instructions:
50. Loss of impairment of assets.
Unit: yuan
The occurrence amount of the previous
Item Current occurrence amount.
period
2.Loss of inventory decline and
-2,978,396.97 3,093,106.42
impairment of contract performance cost
Total -2,978,396.97 3,093,106.42
Other instructions:
51. Income from asset disposal.
Unit: yuan
The occurrence amount of the previous
Sources of income from asset disposal. Current occurrence amount.
period
Disposal of other non-current assets 1,972.08 -408,669.80
Total 1,972.08 -408,669.80
52.Non-operating income.
Unit: yuan
The amount included in the
The occurrence amount of the
Item Current occurrence amount. non-recurring profit and loss of
previous period
the current period
Government subsidy. 40,000.00
Gains from disposal of
773.05 773.05
non-current assets
Fine income. 4,622.20 88,294.78 4,622.20
Withholding individual tax
3,137.82
service fee
Value-added tax rebate. 44,815.85
The cost of a business merger is
less than the difference in the 6,468,480.83
fair value share of the
210
Full text of Guangdong Dongfang Precision Science&Technology Co., Ltd. Semi-annual Report 2020
identifiable net assets acquired
by the purchaser in the merger
Other 171,381.68 3,328,220.23 171,381.68
Total 176,776.93 9,972,949.51 176,776.93
Government subsidies included in the profits and losses of the current period:
Unit: yuan
Does the
subsidy affect Amount Amount
Related to
Subsidy Issuing Reasons for the profits Is it a special incurred in incurred in
Nature type. assets /
project. subject. distribution. and losses of subsidy? the current the previous
earnings
the current period. period.
year?
Subsidies
obtained for
Zhongguancu being in line
n Top Ten with the local
sales Zhongguancu government's Related to
Subsidy NO NO 40,000.00
Government n investment revenue
Award in promotion
2018 and other
local support
policies
Total 40,000.00
Other instructions:
53. Non-operating expenses.
Unit: yuan
The amount included in the
The occurrence amount of the
Item Current occurrence amount. non-recurring profit and loss of
previous period
the current period
Foreign donation. 1,446,189.29 43,947.41 1,446,189.29
Sponsorship expenditure. 16,600.00 181,898.00 16,600.00
Late fee. 4,415.57
Other 2,060.00 2,370,678.96 2,060.00
Total 1,464,849.29 2,600,939.94 1,464,849.29
Other instructions:
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54. Income tax expenses.
(1) Statement of income tax expenses.
Unit: yuan
The occurrence amount of the previous
Item Current occurrence amount.
period
Current income tax expenses. 7,751,569.77 73,111,516.06
Deferred income tax expenses -2,109,259.77 -7,923,224.04
Total 5,642,310.00 65,188,292.02
(2) The adjustment process of accounting profit and income tax expenses.
Unit: yuan
Item Current occurrence amount.
Total profit. 132,126,099.66
Income tax expenses at statutory / applicable tax rates. 19,818,914.95
The influence of different tax rates on subsidiaries. 7,697,477.02
Adjust the impact of income tax in previous periods. -11,707,933.39
The impact of undeductible costs, expenses and losses. -1,576,432.00
The impact of deductible losses on the use of unrecognized
-11,724,572.69
deferred income tax assets in the previous period.
The effect of deductible temporary differences or deductible
losses on deferred income tax assets not recognized in the current 3,134,856.11
period.
Income tax expense 5,642,310.00
Other instructions.
55. Other comprehensive income.
See note 37 for details.
56. Cash flow statement items.
(1) Other cash received related to business activities.
Unit: yuan
The occurrence amount of the previous
Item Current occurrence amount.
period
Current money and other. 19,138,595.34 10,553,838.88
Interest income. 8,684,557.75 8,523,417.00
Government subsidy. 3,413,534.85 2,274,345.00
212
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Total 31,236,687.94 21,351,600.88
Description of other cash received related to business activities:
(2) Other cash paid related to business activities.
Unit: yuan
The occurrence amount of the previous
Item Current occurrence amount.
period
Pay cash sales expenses. 68,632,511.73 60,264,218.70
Pay cash management expenses. 37,794,087.99 58,389,538.84
Current money and other. 112,769,312.77 34,389,331.56
Total 219,195,912.49 153,043,089.10
Description of other cash paid related to business activities:
(3) Other cash received related to investment activities.
Unit: yuan
The occurrence amount of the previous
Item Current occurrence amount.
period
Performance compensation. 200,000.00
Bank financing 4,827,403,841.13
Time deposit 50,000,000.00
Total 4,827,403,841.13 50,200,000.00
Description of other cash received related to investment activities:
(4) Other cash paid related to investment activities.
Unit: yuan
The occurrence amount of the previous
Item Current occurrence amount.
period
Bank financing 5,144,300,000.00 790,000,000.00
Total 5,144,300,000.00 790,000,000.00
Description of other cash paid related to investment activities:
(5) Other cash received related to fund-raising activities.
Unit: yuan
The occurrence amount of the previous
Item Current occurrence amount.
period
Deposit for bank acceptance of bill of
45,300,545.99
exchange
213
Full text of Guangdong Dongfang Precision Science&Technology Co., Ltd. Semi-annual Report 2020
Total 45,300,545.99
Description of other cash received related to fund-raising activities:
(6)Other cash paid related to fund-raising activities.
Unit: yuan
The occurrence amount of the previous
Item Current occurrence amount.
period
Note guarantee deposits 1,315,047,825.35
Stock repurchase fund. 73,348,481.61
Letter of guarantee deposit. 290,000,000.00
Total 290,000,000.00 1,388,396,306.96
Description of other cash paid related to fund-raising activities:
57. Supplementary information on the statement of cash flows.
(1) Supplementary information on the statement of cash flows.
Unit: yuan
Supplementary information Current amount. Previous period amount
1. Adjust net profit to cash flow of operating
-- --
activities:
Net profit. 126,483,789.66 183,849,312.89
Plus: provision for impairment of assets. 2,619,855.72 36,350,362.76
Depreciation of fixed assets, oil and gas
24,591,531.90 21,740,298.73
assets and productive biological assets.
Amortization of intangible assets. 8,481,822.44 11,718,813.98
Amortization of long-term prepaid expenses. 2,046,625.18 7,607,830.79
Losses on the disposal of fixed assets,
intangible assets and other long-term assets -1,972.08 408,669.80
(income is given with "-" sign).
Loss of fair value change (income is listed
-13,309,111.52
with "-" sign).
Financial expenses (income is given with "-"
6,239,815.10 18,720,071.42
sign).
Investment loss (income is listed with "-"
-32,724,984.33 -16,017,901.37
sign).
Deferred income tax assets decrease
-4,983,844.58 -16,032,901.90
(increase with "-" sign).
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Increase in deferred income tax liabilities
-2,806,737.40 -1,398,169.86
(reduced with "-" sign).
Reduction of inventory (increase in "-" sign). -163,596,564.15 -1,081,727,749.23
Decrease in operating receivables (increase
-21,051,248.91 192,604,121.35
with "-" sign).
Increase in operating payables (reduced with
97,420,432.29 2,061,417,992.61
"-" sign).
Net cash flow from operating activities. 29,409,409.32 1,419,240,751.97
2. Major investments and fund-raising
activities that do not involve cash receipts -- --
and payments:
3. Net changes in cash and cash equivalents: -- --
The ending balance of cash. 1,519,015,849.88 1,072,228,722.76
Less: the opening balance of cash. 2,226,724,737.39 2,057,997,442.35
Net increase in cash and cash equivalents -707,708,887.51 -985,768,719.59
(2) The net cash paid by the acquired subsidiary in the current period.
Unit: yuan
Amount
Of which: --
Of which: --
Of which: --
Other instructions:
(3) Composition of cash and cash equivalents.
Unit: yuan
Item Ending balance Opening balance
1. Cash. 1,519,015,849.88 2,226,724,737.39
Of which: cash on hand. 333,466.53 249,951.68
A bank deposit that can be used for payment
1,518,673,673.17 2,224,849,135.20
at any time.
Other monetary funds that can be used for
8,710.18 1,625,650.51
payment at any time.
3. Balance of cash and cash equivalents at
1,519,015,849.88 2,226,724,737.39
the end of the period
Of which: the parent company or subsidiary
420,985,826.61 129,978,697.21
within the group uses restricted cash and
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cash equivalents
Other instructions:
58. Project Notes on the Statement of Changes in Owners' Equity
Explain the name of the "other" project and the adjusted amount of the balance at the end of the previous year:
59. Assets with restricted ownership or use rights.
Unit: yuan
Item Final book value Limited reasons
Monetary funds. 420,985,826.61 Margin
Fixed assets. 213,149,396.93 Loan mortgage
Intangible assets. 50,379,689.01 Loan mortgage
Total 684,514,912.55 --
Other instructions:
60. Foreign currency monetary items.
(1) Foreign currency monetary items.
Unit: yuan
Foreign currency balance at Conversion of RMB balance at
Item Converted exchange rate
the end of the period the end of the period
Monetary funds. -- -- 349,834,984.80
Of which: US Dollar. 25,365,404.59 7.0795 179,574,381.79
Euro. 21,373,180.59 7.9610 170,151,890.68
Hong Kong Dollar. 83,242.95 0.9134 76,034.11
British Pound 3,749.91 8.7144 32,678.22
Accounts receivable. -- -- 443,457,837.83
Of which: US Dollar. 2,952,693.41 7.0795 20,903,593.00
Euro. 53,078,036.03 7.9610 422,554,244.83
Hong Kong Dollar.
Long-term loan. -- --
Of which: US Dollar.
Euro. 6,166,678.59 7.9610 49,092,928.25
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Hong Kong Dollar.
Accounts payable. 322,314,047.58
Of which: US Dollar. 7.0795
Euro. 40,486,628.26 7.9610 322,314,047.58
Other receivables. 66,825,385.92
Of which: US Dollar. 7.0795
Euro. 8,394,094.45 7.9610 66,825,385.92
Short-term loan. 82,888,933.77
Of which: US Dollar. 7.0795
Euro. 10,411,874.61 7.9610 82,888,933.77
Non-current liabilities due within
20,984,249.60
one year.
Of which: US Dollar. 7.0795
Euro. 2,635,881.12 7.9610 20,984,249.60
Other payables. 43,478,396.68
Of which: US Dollar. 13,163.81 7.0795 93,193.19
Euro. 5,449,717.81 7.9610 43,385,203.49
Other instructions:
61.Government subsidy.
(1) Basic situation of government subsidies.
Unit: yuan
The amount included in the
Category Amount Presentation of items profits and losses of the current
period
Compensation for demolition
and relocation of the old factory 5,340,480.38 Deferred income 148,830.31
building on Jinfeng Road.
4 Mitsubishi gantry machining
centers and 3 fixed beam gantry 20,100,000.00 Deferred income 558,330.00
machining centers.
Refund of income tax service
194,481.14 Other income 194,481.14
fee
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Stable post allowance 104,971.54 Other income 104,971.54
Special funds for intellectual
property funded by patents of
40,894.00 Other income 40,894.00
Nanhai Market Supervision
Administration in 2019
Foshan Nanhai Economic
Promotion Bureau 2019 Foreign
Trade Development Special
Fund (Foreign Trade small and 2,240,000.00 Other income 2,240,000.00
medium-sized Enterprises to
develop the International
Market) Project
Foshan Nanhai Economic
Promotion Bureau basic
electricity subsidy for 53,040.00 Other income 53,040.00
transformer capacity of large
industrial enterprises in 2018
Foshan Nanhai Economic
Promotion Bureau to reduce the
50,000.00 Other income 50,000.00
cost of electricity consumption
and subsidize funds in 2018
The Bureau of Science and
Technology recognized the
300,000.00 Other income 300,000.00
subsidy funds for high-tech
enterprises in 2019
Business development (the
fourth batch) small and
59,700.00 Other income 59,700.00
medium-sized development
projects
Slicing funds for provincial
business development in 2019
33,000.00 Other income 33,000.00
(the third batch) small and
medium-sized enterprises
Financial incentives for the
transformation and upgrading of
20,000.00 Other income 20,000.00
provincial industrial
information industry in 2019
Domestic and Foreign Patent
Grants of Suzhou High-tech 5,300.00 Other income 5,300.00
Zone in 2019
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Special fund for building
advanced manufacturing base at
Suzhou municipal level in 2020 400,000.00 Other income 400,000.00
(specialized new enterprise
cultivation project)
2019 Suzhou High-tech Zone
High-tech leading Talent 50,000.00 Other income 50,000.00
Enterprise Award
Region-wide trademark subsidy
41,600.00 Other income 41,600.00
in 2019
Foreign government subsidies 1,345,206.55 Other income 1,345,206.55
Foshan Nanhai Social Security
Bureau Enterprise affected
1,451,918.40 Other income 1,451,918.40
unemployment Insurance return
Project Allowance
VIII. Changes in the scope of the merger.
1. Business merger under different control.
(1) The merger of enterprises under different control occurred in the current period.
Unit: yuan
Income of the Net profit of
Basis for acquiree from the acquiree
Time point of Equity Equity Mode of
Name of the Purchase determining the date of from the date
equity acquisition acquisition equity
acquiree. date. the date of purchase to of purchase
acquisition. cost. ratio. acquisition.
purchase. the end of the to the end of
period. the period
Other instructions:
(2) Combined cost and goodwill.
Unit: yuan
Combined cost.
The method for determining the fair value of the combined cost, and the description of the contingent consideration and its changes:
The main reasons for the formation of large goodwill:
Other instructions:
(3) The acquiree can identify assets and liabilities on the date of purchase.
Unit: yuan
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Fair value on the date of purchase Daily book value of purchase
The method for determining the fair value of identifiable assets and liabilities:
Contingent liabilities of the acquiree in a business merger:
Other instructions:
(4) Gains or losses arising from the re-measurement of equity held before the date of purchase according to
fair value.
Is there a transaction in which the merger is achieved step by step through multiple transactions and control is obtained during the
reporting period?
□ Yes √ No
(5) The date of purchase or the statement of the fair value of the identifiable assets and liabilities of the
purchaser that the consolidated consideration or the fair value of the identifiable assets and liabilities
cannot be reasonably determined at the end of the current period.
(6) Other instructions
2. Enterprise merger under the same control
(1) The merger of enterprises under the same control in the current period
Unit: yuan
Net profit of
Income of the
Proportion of Constitute the the merged Net profit of
merged party Income of the
rights and basis of The basis for party from the merged
from the merged party
Name of the interests business determining the beginning party during
Merger date beginning of during the
merged party acquired in merger under the merger of the current the
the current comparison
business the same date period to the comparison
period to the period
merger control date of the period
merger date
merger
Other instructions:
(2) Combined Cost
Unit: yuan
Combined cost
There may be a description of the consideration and its changes:
Other instructions:
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(3) The book value of the assets and liabilities of the merged party on the merger date
Unit: yuan
Merger date At the end of the previous period
Contingent liabilities of the merged party in a business merger:
Other instructions:
3. Changes in the scope of merger for other reasons.
Explain the changes in the scope of the merger caused by other reasons (for example, newly established subsidiaries, liquidation
subsidiaries, etc.) and their related information:
In February 2020, the subsidiary Fosber Group established a new holding subsidiary, Italy QCorr, which was used as the main
acquisition body to complete the acquisition of Italian corrugated board wire manufacturer BP Agnati S.r.l. For the acquisiti on of
related business assets, Italy Qcorr was included in the consolidated statement during the reporting period.
IX. Rights and interests in other subjects.
1. Interests in subsidiaries.
(1) The composition of enterprise groups
Main operating Place of Nature of Shareholding ratio. Mode of
Subsidiary name.
place registration. business. Direct Indirect acquisition
Dongfang Trading
HK HK 100.00% Set up
Precision（HK） enterprise
Dongfang
Trading
Precision Netherland Netherland 90.00% 10.00% Set up
enterprise
（Netherland）
Business merger
Manufacturing
Fosber Group Italy Italy 100.00% under different
industry
control
Business merger
Manufacturing
Fosber US US US 100.00% under different
industry
control
Business merger
Fosber Tianjin Tianjin, China Tianjin, China Manufacturing 100.00%
under different
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industry control
Foshan City, Foshan City,
Manufacturing
Fosber Asia Guangdong Guangdong 56.40% Set up
industry
Province, China Province, China
Suzhou City, Suzhou City, Business merger
Manufacturing
Parsun Power Jiangsu Province, Jiangsu Province, 35.00% 65.00% under different
industry
China China control
Suzhou City, Suzhou City, Business merger
Investment
Suzhou Shunyi Jiangsu Province, Jiangsu Province, 100.00% under different
company
China China control
Business merger
Manufacturing
Italy EDF Italy Italy 100.00% under different
industry
control
Business merger
Manufacturing
Tiruna Group Spain Spain 70.00% under different
industry
control
Business merger
Manufacturing
Tiruna S.L.U. Spain Spain 70.00% under different
industry
control
Tratatamientos Business merger
Manufacturing
Industriales Spain Spain 70.00% under different
industry
Tiruna S.A.U. control
Business merger
Manufacturing
Tiruna Brazil Brazil Brazil 70.00% under different
industry
control
Business merger
Tiruna France Manufacturing
France France 70.00% under different
SARL industry
control
Business merger
Manufacturing
SCI Candan France France 70.00% under different
industry
control
Business merger
Manufacturing
Tiruna UK Ltd UK UK 70.00% under different
industry
control
Business merger
Guangdong Guangdong Guangdong Manufacturing
66.30% under different
Tiruna Province, China Province, China industry
control
Business merger
Manufacturing
Tiruna US US US 85.00% under different
industry
control
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Manufacturing
Italy QCorr Italy Italy 60.00% Set up
industry
A statement that the proportion of shares held in a subsidiary is different from the proportion of voting rights:
Hold half or less of the voting rights but still control the invested entity, and the basis for holding more than half of the voting rights
but not controlling the invested entity:
For important structured subjects that are included in the scope of the merger, the basis for control is:
The basis for determining whether a company is an agent or a principal:
Other instructions:
(2) Important non-wholly owned subsidiaries.
Unit: yuan
Profits and losses Balance of minority
Declaration of dividends
Minority shareholders' attributable to minority shareholders' rights and
Subsidiary name. to minority shareholders
shareholding ratio. shareholders for the interests at the end of the
in the current period.
current period. period
Fosber Asia 43.60% -1,584,751.33 9,450,288.19
Tiruna Group 30.00% 1,319,324.69 54,322,656.80
An explanation that the proportion of shares held by minority shareholders of a subsidiary is different from the proportion of voting
rights:
Other instructions:
(3) The main financial information of important non-wholly-owned subsidiaries.
Unit: yuan
Ending balance Opening balance
Subsidia Non-curr Non-curr Non-curr Non-curr
current Total current Total current Total current Total
ry name. ent ent ent ent
assets. assets. assets. liabilities assets. assets. assets. liabilities
assets. assets. assets. assets.
Fosber 158,666, 4,710,57 163,376, 134,294, 7,406,93 141,701, 126,925, 5,087,28 132,012, 99,295,6 7,406,93 106,702,
Asia 068.51 9.91 648.42 740.25 5.25 675.50 006.60 5.73 292.33 33.40 5.25 568.65
Tiruna 122,888, 109,430, 232,319, 39,906,1 11,630,8 51,537,0 113,311, 116,986, 230,297, 37,452,7 16,167,4 53,620,1
Group 545.59 761.37 306.96 89.15 38.55 27.70 370.00 573.42 943.42 55.36 13.79 69.15
Unit: yuan
Current occurrence amount The occurrence amount of the previous period
Subsidiary
Operating Total Cash flow Operating Total Cash flow
name Net profit. Net profit.
income. comprehensi from income. comprehensi from
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ve income. operating ve income. operating
activities activities
33,057,423.9 68,127,466.4 12,812,138.2
Fosber Asia -3,634,750.76 -3,634,750.76 3,296,292.27 2,518,366.47 2,518,366.47
1 0 5
81,726,323.4 11,524,512.3
Tiruna Group 4,397,748.98 4,397,748.98 1,033,454.85 -1,248,318.70 -1,248,318.70 3,329,255.82
5 7
Other instructions:
2. Interests in combined venture arrangements or joint ventures.
(1) An important joint venture or combined venture
Shareholding ratio. Accounting
Name of joint treatment of
venture or Main operating Place of Nature of investment in
combined place registration. business. Direct Indirect joint ventures or
venture. combined
ventures
Foshan City, Foshan City,
Manufacturing
Jiateng Robot Guangdong Guangdong 21.00% Equity method
industry
Province, China Province, China
Foshan City, Foshan City,
Manufacturing
Yinglian Digital Guangdong Guangdong 50.00% Equity method
industry
Province, China Province, China
A statement that the proportion of shares held in a joint venture or joint venture is different from the proportion of voting rights:
The basis for holding less than 20% of the voting rights but having a significant impact, or holding 20% or more of the voting rights
but not having a significant impact:
(2) Main financial information of important joint ventures.
Unit: yuan
Balance at the end of the period / amount Opening balance / previous period
incurred in the current period occurrence amount
Yinglian Digital (RMB) Yinglian Digital (RMB)
Current assets. 10,027,443.71 8,319,156.14
Of which: cash and cash equivalents. 34,924.14 36,386.33
Non-current assets. 13,634,425.08 13,810,304.61
Total assets. 23,661,868.79 22,129,460.75
Current liability. 1,260,912.16 920,225.25
Total liabilities. 1,260,912.16 920,225.25
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Vested in the shareholders' rights and
22,431,168.10 21,209,235.50
interests of the parent company.
Financial expenses. 177.48 5,519.90
Net profit. -173,288.74 495,653.51
Total comprehensive income -173,288.74 495,653.51
Other instructions.
(3) Main financial information of important combined associates.
Unit: yuan
Balance at the end of the period / amount Opening balance / previous period
incurred in the current period occurrence amount
Jiateng robot（RMB) Jiateng robot（RMB)
Current assets. 225,941,939.80 219,472,243.57
Non-current assets. 114,099,824.42 113,320,858.41
Total assets. 340,041,764.22 332,793,101.98
Current liability. 146,974,574.44 136,413,860.90
Non-current liability 22,842,518.84 28,053,156.84
Total liabilities. 169,817,093.28 164,467,017.74
Vested in the shareholders' rights and
170,224,670.94 168,326,084.24
interests of the parent company.
Operating income. 35,272,166.09 76,705,681.56
Net profit. 551,646.47 3,994,431.36
Total comprehensive income 551,646.47 3,994,431.36
Other instructions.
X. Risks related to financial instruments
The company faces various financial risks during its operation: credit risk, market risk and liquidity risk. The
company's board of directors is fully responsible for the determination of risk management objectives and policies,
and assumes ultimate responsibility for the risk management objectives and policies. However, the board of
directors has authorized the company's presidential office to design and implement procedures that ensure the
effective implementation of risk management objectives and policies. The board of directors reviews the
effectiveness of the implemented procedures and the rationality of risk management objectives and policies through
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the monthly report submitted by the fund manager. The company's internal auditors also audit risk management
policies and procedures, and report relevant findings to the audit committee.
The overall goal of the company's risk management is to formulate a risk management policy that minimizes risks
without excessively affecting the company's competitiveness and resilience.
1. Credit risk
Credit risk refers to the risk that one party to a financial instrument fails to perform its obligations and causes the
other party to incur financial losses. The company mainly faces customer credit risk caused by credit sales. Before
signing a new contract, the company will assess the credit risk of new customers, including external credit ratings
and bank credit certificates in certain cases (when this information is available). The company has set a credit limit
for each customer, which is the maximum amount that does not require additional approval.
The company uses quarterly monitoring of existing customers' credit ratings and monthly review of aging analysis
of accounts receivable to ensure that the company's overall credit risk is within controllable limits. When
monitoring customers 'credit risk, they are grouped according to customers' credit characteristics. Customers who
are rated as "high risk" will be placed on the list of restricted customers, and only with additional approval will the
company be able to sell them on credit in the future period, otherwise they must be required to pay in advance.
2. Market risk
Market risk of financial instruments refers to the risk that the fair value or future cash flow of financial instruments
will fluctuate due to changes in market prices, including exchange rate risk, interest rate risk, and other price risks.
(1) Interest rate risk
Interest rate risk refers to the risk that the fair value of financial instruments or future cash flows will fluctuate due to
changes in market interest rates. The interest rate risk faced by the company mainly comes from bank loans.
(2) Exchange rate risk
Exchange rate risk refers to the risk that the fair value of financial instruments or future cash flows will fluctuate due
to changes in foreign exchange rates. As far as possible, the company matches foreign currency income with foreign
currency expenditure to reduce exchange rate risk. In addition, the company may also sign forward foreign
exchange contracts or currency swap contracts to avoid exchange rate risk. During the current period and the
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previous period, the Company did not sign any forward foreign exchange contracts or currency swap contracts.
The exchange rate risk faced by the company mainly comes from financial assets and financial liabilities
denominated in US dollars. The amounts of foreign currency financial assets and foreign currency financial
liabilities converted into RMB are listed below:
Ending balance Balance at the end of last year
US dollars Euro Other Total US dollars Euro Other Total
Item
foreign foreign
currencies currencies
Monetary
funds 179,574,381.7 170,151,890. 349,834,98 177,718,51 188,934,0 198,537.6 366,851,1
108,712.33
9 68 4.80 3.83 72.13 1 23.57
Notes
receivable 56,743,777 56,743,77
- - - - - -
.57 7.57
Accounts
receivable 422,554,244. 443,457,83 37,871,761 453,987,2 491,858,9
20,903,593.00 - -
83 7.83 .75 06.67 68.42
Other
receivables 66,825,385.9 66,825,385 58,019,82 58,019,82
- - - -
2 .92 1.22 1.22
Subtotal.
200,477,974.7 659,531,521. 860,118,20 272,334,05 700,941,1 198,537.6 973,473,6
108,712.33
9 43 8.55 3.15 00.02 1 90.78
Accounts
322,314,047. 322,314,04 335,956,0 336,380,0
payable - - 409,926.81 14,075.42
58 7.58 86.13 88.36
Short-term
loan 82,888,933.7 82,888,933 27,888,35 27,888,35
- - - -
7 .77 3.14 3.14
Non-current
liabilities due
20,984,249.6 20,984,249 19,208,45 19,208,45
within one - - - -
0 .60 8.29 8.29
year
Long-term
loan 49,092,928.2 49,092,928 32,823,22 32,823,22
- - - -
5 .25 7.48 7.48
Other
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payables 93,193.19 43,385,203.4 - 43,478,396 241,316.25 44,855,86 - 45,097,18
9 .68 6.87 3.12
Interest
payable. 2,626,376. 2,626,376.
- - - - - -
27 27
Subtotal
518,665,362. 518,758,55 463,358,3 464,023,6
93,193.19 - 651,243.06 14,075.42
69 5.88 68.18 86.66
Total 200,384,781.6 140,866,158. 341,359,65 271,682,81 237,582,7 184,462.1 509,450,0
108,712.33
0 74 2.67 0.09 31.84 9 04.12
3. Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation to settle cash or other
financial assets. The company's policy is to ensure that it has sufficient cash to repay its due debts. Liquidity risk is
centrally controlled by the company's financial department. The finance department monitors cash balances,
securities that can be cashed at any time, and rolling forecasts of cash flows over the next 12 months to ensure that
the company has sufficient funds to repay debts under all reasonable forecasts.
XI. Disclosure of fair value.
1. The end-of-period fair value of assets and liabilities measured at fair value.
Unit: yuan
Fair value at the end of the term
Item Fair value measurement Fair value measurement Fair value measurement
Total
at the first level at the second level at the third level
I. Continuous fair value
-- -- -- --
measurement.
(1) Transactional financial
100,710,701.81 1,393,209,890.44 0.00 1,493,920,592.25
assets.
1. Financial assets
measured at fair value and
whose changes are
464,871.13 0.00 0.00 464,871.13
included in the profits and
losses of the current
period.
(3) Derivative financial 464,871.13 464,871.13
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assets.
2.Financial assets that are
designated to be measured
at fair value and whose
100,245,830.68 1,393,209,890.44 0.00 1,493,455,721.12
changes are included in
the profits and losses of
the current period.
(1) Investment in debt
1,393,209,890.44 1,393,209,890.44
instruments.
(2) Investment in equity
100,245,830.68 100,245,830.68
instruments.
Total assets continuously
100,710,701.81 1,393,209,890.44 1,493,920,592.25
measured at fair value.
(6)Transactional financial
304,022.63 304,022.63
liabilities
Derivative financial
304,022.63 304,022.63
liabilities
Total liabilities
continuously measured at 304,022.63 304,022.63
fair value.
2.Unsustainable fair value
-- -- -- --
measurement
XII. Related parties and related transactions.
1. The situation of the parent company of the enterprise
The shareholding The proportion of
Name of parent ratio of the parent voting rights of the
Place of registration Nature of business Registered capital
company company to the parent company to
enterprise its own enterprise
A description of the parent company of the enterprise
Name Relationship with our company Shareholding ratio (%)
Tang Zhuolin (natural person). The controlling shareholder of the company
17.52
and one of the actual controllers
Tang Zhuomian (natural person) The controlling shareholder of the company
8.79
and one of the actual controllers
The ultimate control of this enterprise is. Tang Zhuolin, Tang Zhuomian.
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Other instructions:
2. The situation of the subsidiaries of the enterprise.
The details of the subsidiaries of this enterprise can be found in note 9, the rights and interests in other subjects.
3. The situation of joint ventures and combined ventures.
For details of the important joint ventures or combined ventures of the enterprise, see note 9, rights and interests in other subjects.
Other joint ventures or joint ventures that have a related party transaction with the company in the current period or have a balance
with the company in the previous period are as follows:
Name of joint venture or combined venture Relationship with the enterprise
Other instructions:
4. Other related parties
Names of other related parties. Relationship between other related parties and the enterprise
Qiu Yezhi. Director, General Manager, Chief Financial Officer.
Deputy General Manager and Secretary of the Board of
Zhou Wenhui.
Directors.
Xie Weiwei. Director and Deputy General Manager.
Mai Zhirong. Independent Director.
Peng Xiaowei. Independent Director.
He Weifeng. Independent Director.
Chen Huiyi. Chairman of the Board of Supervisors.
Cen Meiling. Supervisor.
Zhao Xiuhe. Supervisor.
SMART SHOT INC LIMITED(hereinafter referred to as
Minority shareholders of the company's controlling subsidiary.
"SMART SHOT").
Other instructions.
5. Related party transactions.
(1) Related transactions for the purchase and sale of goods and the provision and receipt of services.
List of goods purchased / services received.
Unit: yuan
Related party The occurrence
Current occurrence Approved trading Whether it exceeds the
Related party. transaction amount of the
amount. quota. trading quota.
content. previous period
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Statement on the sale of goods / provision of services.
Unit: yuan
Related party transaction The occurrence amount of the
Related party. Current occurrence amount.
content. previous period
Description of related transactions in the purchase and sale of goods, provision and acceptance of labor services
(2) Related party guarantee.
Our company acts as the guarantor.
Unit: yuan
Guarantee expiration Whether the guarantee
Guaranteed party. Guarantee amount Guarantee start date
date has been completed
Dongfang Precision
278,635,000.00 August 10，2017 August 17，2020 NO
（Netherland）
Dongfang Precision
357,289,680.00 February 20, 2018 June 20, 2021 NO
（Netherland）
Our company as the guaranteed party
Unit: yuan
Guarantee expiration Whether the guarantee
Guarantor Guaranteed amount Guarantee start date
date has been fulfilled
Description of related party guarantee
(3) The transfer of assets and debt restructuring of related parties
Unit: yuan
Related party transaction The occurrence amount of the
Related party Current occurrence amount
content previous period
(4) Key management personnel compensation.
Unit: yuan
Item Current amount Amount in the previous period
Key management personnel compensation 8,117,846.67 9,579,943.46
6. Receivables due from related parties
(1) Receivable items
Unit: yuan
Ending balance Opening balance
Item name Related party
Book balance Bad debt provision Book balance Bad debt provision
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Accounts receivable Yinglian Digital 660,000.00 66,000.00 660,000.00 66,000.00
Other receivables SMART SHOT 58,227.04 5,822.70 58,227.04 5,822.70
(2) Items payable
Unit: yuan
Book balance at the end of the Book balance at the start of the
Item name Related party
period period
Other receivables Yinglian Digital 74,525.30 200,876.88
XIII. Share payment.
1. General situation of share payment.
√ Applicable □ Not applicable
Unit: yuan
The total amount of equity instruments granted by the company in the
22,600,000.00
current period
The total amount of various equity instruments of the company's current
0.00
exercise
The total amount of various equity instruments invalidated by the
0.00
company in the current period
Other instructions.
The 44th (interim) meeting of the third session of the Board of Directors of the Company was held on March 27, 2020 to consider
and pass the "Bill on Granting Restricted Stock to Incentive Targets". The board of directors agreed to grant 22.85 million restricted
shares to 42 incentive targets, the date of the first grant of restricted shares is March 27, 2020.
On June 8, 2020, the Company passed the "Bill on Adjusting the Related Matters of the 2020 Restricted Stock Incentive Plan", the
incentive object was adjusted to 40, and the number of restricted shares granted was adjusted to 22.6 million shares. The exercise
price of this restricted share grant is 1 yuan. As of June 30, 2020, the total amount of restricted stock subscription funds granted by
the company under this incentive scheme for the first time is RMB 22,600,000.00.
The arrangements for the lifting of the restricted stock incentive scheme are as follows:
Lift the sales restriction Time for lifting restrictions on sales Lift the proportion of
arrangement sales restrictions
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The first period for the From the first trading day 12 months after the first grant of 20%
lifting of sales restrictions restricted stock listing to the last trading day within 24 months
from the date of first granting of restricted stock listing
The second period for the From the first trading day 24 months after the first grant of 40%
lifting of sales restrictions restricted stock listing to the last trading day within 36 months
from the date of first granting of restricted stock listing
The third period for the From the first trading day 36 months after the first grant of 40%
lifting of sales restrictions restricted stock listing to the last trading day within 48 months
from the date of first granting of restricted stock listing
2. Equity-settled share payments.
√ Applicable □ Not applicable
Unit: yuan
The cumulative amount of equity-settled share payments included
10,185,066.67
in the capital reserve
The total amount of fees recognized by equity-settled shares in the
10,185,066.67
current period
Other instructions
XIV. Commitments and contingencies.
1. Important commitments.
Important commitments that exist on the balance sheet date: not applicable
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2.Contingencies.
(1) important contingent matters existing on the balance sheet date.
1. Dongfang Precision and Minsheng Bank Co., Ltd. Foshan Branch signed a letter of guarantee / standby letter of
credit contract on August 10, 2017. to guarantee the equity and loan of 35 million Euros acquired by Dongfang
Precision (Netherland) from the Amsterdam branch of Industrial and Commercial Bank of China (Europe) Co., Ltd.
Dongfang Precision pledged 110.11 million yuan as a deposit in Foshan Branch of Minsheng Bank of China. The
guarantee period is from August 10, 2017 to August 17, 2020.
2. In January 2018, Dongfang Precision and Bank of China (Hong Kong) Co., Ltd. signed a letter of guarantee /
standby letter of credit contract to provide a total guarantee of not more than 44.88 million Euros for overseas
subsidiary Dongfang Precision (Holland) to obtain loans from Bank of China (Hong Kong) Co., Ltd., with a
guarantee period from February 20, 2018 to June 20, 2021.
(2) The company should also explain the important contingent matters that the company does not need to
disclose
There are no important contingent matters that need to be disclosed in the company.
XV.Other important matters
1. Segment information.
(1) The basis for determining the reporting segment and accounting policy.
The company determines the operating division on the basis of internal organizational structure, management
requirements, internal reporting system, etc. The operating division of a company refers to the components that
meet the following conditions at the same time:
(1) This component can generate income and expenses in daily activities;
(2) Management can regularly evaluate the operating results of this component in order to decide to allocate
resources to it and evaluate its performance;
(3) The relevant accounting information such as financial situation, operating results and cash flow of the
component can be obtained through analysis.
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The company determines the reporting segment on the basis of industry segment / product segment, and the assets
and liabilities commonly used with each segment are distributed among different segments in proportion to their
size.
(2) Report the financial information of the segment.
Unit: yuan
Inter-segment
Item Domestic company Foreign company Total
elimination
Operating income 340,691,313.50 931,091,854.36 -94,291,942.73 1,177,491,225.13
Operating cost 229,502,470.69 704,550,755.44 -92,226,402.29 841,826,823.84
Total assets 4,726,917,079.21 2,107,380,702.70 -349,285,218.53 6,485,012,563.38
Total liabilities 448,946,887.90 1,613,660,266.33 -120,298,301.42 1,942,308,852.81
XVI. Notes on the main items of the parent company's financial statements
1. Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: yuan
Ending balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
percentag Withdra percentag Withdraw Book value
amount amount value amount amount
e wal ratio e al ratio
Of which:
Accounts receivable
for bad debt 114,596, 2,634,56 111,962,1 153,764,3 2,668,130 151,096,21
100.00% 2.30% 100.00% 1.74%
provision by 692.74 7.81 24.93 44.60 .50 4.10
combination
Of which:
account age 39,608,3 2,634,56 36,973,77 57,569,28 2,668,130 54,901,157.
34.56% 6.65% 37.44% 4.63%
combination 43.62 7.81 5.81 7.50 .50 00
Combination of
related parties in the 74,988,3 74,988,34 96,195,05 96,195,057.
65.44% 0.00 0.00% 62.56% 0.00 0.00%
scope of 49.12 9.12 7.10 10
consolidation
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114,596, 2,634,56 111,962,1 153,764,3 2,668,130 151,096,21
Total 100.00% 2.30% 100.00% 1.74%
692.74 7.81 24.93 44.60 .50 4.10
Provision for bad debts by single item:
Unit: yuan
Ending balance
Name
Book balance Bad debt provision Withdrawal ratio Reason for accrual
Provision for bad debts by combination: account age combination
Unit: yuan
Ending balance
Name
Book balance Bad debt provision Withdrawal ratio
Account age combination 39,608,343.62 2,634,567.81 6.65%
Of which:
Within 1 year (including 1 year) 30,734,977.60 307,349.78 1.00%
1 to 2 years (including 2 years) 4,547,545.36 227,377.27 5.00%
2 to 3 years (including 3 years) 1,989,926.58 198,992.66 10.00%
3 to 4 years (including 4 years) 171,297.23 51,389.17 30.00%
4 to 5 years (including 5 years) 630,275.85 315,137.93 50.00%
More than 5 years 1,534,321.00 1,534,321.00 100.00%
Combination of related parties
74,988,349.12
in the scope of consolidation
Total 114,596,692.74 2,634,567.81 --
Description of the basis for this composition:
Provision for bad debts by combination: combination of related parties within the scope of consolidation
Unit: yuan
Ending balance
Name
Book balance Bad debt provision Withdrawal ratio
Combination of related parties
74,988,349.12
in the scope of consolidation
Total 74,988,349.12 --
Description of the basis for this composition:
Provision for bad debts by combination:
Unit: yuan
Name Ending balance
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Book balance Bad debt provision Withdrawal ratio
Description of the basis for this composition:
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, please
refer to the disclosure of other receivables to disclose relevant information about bad debts:
□ Applicable √ Not applicable
Disclosure by age
Unit: yuan
Account age Ending balance
Within 1 year (including 1 year) 105,723,326.72
1 to 2 years 4,547,545.36
2 to 3 years 1,989,926.58
More than 3 years 2,335,894.08
3 to 4 years 171,297.23
4 to 5 years 630,275.85
More than 5 years 1,534,321.00
Total 114,596,692.74
(2) The provision for bad debts withdrawn, recovered or transferred back in the current period
Provision for bad debts in the current period:
Unit: yuan
Amount of changes in the current period
Category Opening balance Take back or turn Ending balance
Accrual Write off Other
back
Provision for bad
debts by 2,668,130.50 33,482.69 80.00 2,634,567.81
combination
Total 2,668,130.50 33,482.69 80.00 2,634,567.81
Of which, the amount of bad debts to be recovered or transferred back in the current period is important:
Unit: yuan
Unit name Amount recovered or transferred back Recovery mode
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(3) The actual write-off of accounts receivable in the current period
Unit: yuan
Item Write-off amount
Actual write-off of accounts receivable 80.00
Of which, the important write-off of accounts receivable:
Unit: yuan
Whether the payment
Nature of accounts Write-off procedures is generated by
Unit name Write-off amount Write-off reason
receivable for performance related party
transactions
Qingdao Runshuo
Payment 80.00 No
Packaging Co., Ltd.
Total -- 80.00 -- -- --
Notes on the write-off of accounts Receivable:
(4) The status of the top five accounts receivable collected by the defaulting party at the end of the period.
Unit: yuan
Ending balance of accounts Proportion of total ending Bad debt preparation period
Unit name
receivable balance of accounts receivable ending balance
Client Ⅰ. 49,839,381.15 43.49%
Client II. 10,696,798.15 9.33%
Client III. 8,356,309.38 7.29%
Client IV. 6,095,860.44 5.32%
Client Ⅴ. 3,567,852.90 3.11% 178,392.65
Total 78,556,202.02 68.54%
2. Other receivables
Unit: yuan
Item Ending balance Opening balance
Interest receivable 1,694,150.03
Dividend receivable 12,264,643.27
Other receivables 33,888,614.37 36,670,496.12
Total 47,847,407.67 36,670,496.12
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(1) Interest receivable
1) Classification of interest receivable
Unit: yuan
Item Ending balance Opening balance
Time deposit 1,694,150.03
Total 1,694,150.03
2) Provision for bad debts
□ Applicable √ Not applicable
(2) Dividends receivable
1) Classification of dividends receivable
Unit: yuan
Project (or invested unit) Ending balance Opening balance
Suzhou Shunyi Investment Co., Ltd 12,264,643.27
Total 12,264,643.27
2) Provision for bad debts
□ Applicable √ Not applicable
Other instructions:
(3) Other receivables
1) Other receivables are classified according to the nature of the money
Unit: yuan
Book balance at the beginning of the
Nature of payment Book balance at the end of the period
period
Current payment 3,609,836.05 1,390,770.29
Security deposit 2,027,495.96 1,522,182.68
Export tax rebate 348,026.76 1,051,258.91
Performance compensation 500,000.00 8,200,000.00
Prepaid service charge 250,000.00 333,362.86
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Internal related parties 20,846,851.58 24,488,538.25
Employee loans, reserves 1,731,284.68 843,783.19
Other 5,738,406.86 1,827,886.33
Total 35,051,901.89 39,657,782.51
2) Provision for bad debts.
Unit: yuan
Phase 1 Phase 2 Phase 3
Expected credit loss Expected credit loss over Expected credit loss over
Provision for bad debts Total
over the next 12 the entire lifetime (no credit the entire lifetime (credit
months impairment occurs) impairment has occurred)
Balance of January 1,
527,286.39 2,460,000.00 2,987,286.39
2020
The balance of January 1,
2020 is in the current —— —— —— ——
period.
Current provision 486,001.13 486,001.13
Current reversal 2,310,000.00 2,310,000.00
Balance of June 30, 2020 1,013,287.52 150,000.00 1,163,287.52
Changes in the book balance of significant changes in the loss provision in the current period
□ Applicable √ Not applicable
Disclosure by age
Unit: yuan
Account age Ending balance
Within 1 year (including 1 year) 30,860,532.07
1 to 2 years 1,780,547.51
2 to 3 years 1,099,265.00
More than 3 years 1,311,557.31
3 to 4 years 553,529.78
4 to 5 years 350,000.00
More than 5 years 408,027.53
Total 35,051,901.89
3) Bad debt provision in the current period of withdrawal, recovery or reversal.
Provision for bad debts in the current period:
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Unit: yuan
Amount of changes in the current period
Category Opening balance Take back or turn Ending balance
Accrual Write off Other
back
Provision for bad
2,460,000.00 2,310,000.00 150,000.00
debts by single item
Provision for bad
debts by 527,286.39 486,001.13 1,013,287.52
combination
Total 2,987,286.39 486,001.13 2,310,000.00 1,163,287.52
Of which, the amount of bad debts to be recovered or transferred back in the current period is important:
Unit: yuan
Unit name Amount recovered or transferred back Recovery mode
4) Actual write-off of other receivables during this period.
Unit: yuan
Item Write-offs amount
Of which, key other receivables write-offs:
Unit: yuan
Whether payments
Nature of other Reasons for Write-off procedures are generated by
Unit name Write-offs amount
receivables write-offs performed associated
transactions
Description of the cancellation of other receivables:
5) Other receivables in the top five of the ending balance collected by the arrears.
Unit: yuan
Proportion of total Bad debt preparation
Unit name Nature of payment Ending balance Account age ending balance of period ending
other receivables balance
Client Ⅰ. Current payment 10,754,954.53 1-2 years 30.68%
Client II. Current payment 8,623,483.79 Within 1 year 24.60%
Client III. Other 3,470,018.00 Within 1 year 9.90% 34,700.18
Client IV. Current payment 2,700,000.00 Within 1 year 7.70% 27,000.00
Client Ⅴ. Guarantee deposit, 768,814.00 2-3years 2.19% 76,881.40
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deposits
Total -- 26,317,270.32 -- 75.07% 138,581.58
3. Long-term equity investment
Unit: yuan
Ending balance Opening balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in
432,581,426.57 61,855,054.35 370,726,372.22 430,846,359.90 61,855,054.35 368,991,305.55
subsidiaries
Investment in
joint ventures and
78,371,147.82 78,371,147.82 70,647,476.45 70,647,476.45
combined
ventures
Total 510,952,574.39 61,855,054.35 449,097,520.04 501,493,836.35 61,855,054.35 439,638,782.00
(1) Investment in subsidiaries
Unit: yuan
Changes in the current period Impairment
Opening
Ending balance preparation
Invested unit balance (book Additional Reduce Provision for
Other (book value) period ending
value) investment investment impairment
balance
Dongfang
1,856,010.00 1,856,010.00
Precision（HK）
Dongfang
Precision 307,666.80 540,800.00 848,466.80
（Netherland）
Fosber Asia 16,738,279.20 383,066.67 17,121,345.87
Shunyi 305,584,828.1
305,584,828.17
Investment 7
Parsun Power 44,504,521.38 811,200.00 45,315,721.38 61,855,054.35
368,991,305.5
Total 1,735,066.67 370,726,372.22 61,855,054.35
5
(2) Investment in associates and joint ventures
Unit: yuan
Invested Opening Changes in the current period Ending Impairme
unit balance Additiona Reduce Investme Other Other Declare Provision Other balance nt
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(book l investmen nt gains comprehe equity cash for (book preparatio
value) investmen t and losses nsive changes dividends impairme value) n period
t recognize income or profits nt ending
d under adjustmen balance
the equity t
method
1. Joint venture
Yinglian 10,510,73 -86,657.9 10,424,07
Digita 5.47 2 7.55
10,510,73 -86,657.9 10,424,07
Subtotal
5.47 2 7.55
2.Combined venture
Jiateng 60,136,74 7,700,000 110,329.2 67,947,07
Robot 0.98 .00 9 0.27
60,136,74 7,700,000 110,329.2 67,947,07
Subtotal
0.98 .00 9 0.27
70,647,47 7,700,000 78,371,14
Total 23,671.37
6.45 .00 7.82
4. Operating income and operating costs
Unit: yuan
Current amount Amount in the previous period
Item
Income Cost Income Cost
Main business 154,538,552.09 93,837,630.90 141,510,632.48 95,183,587.23
Other business 5,103,195.85 857,589.41 3,897,449.31 2,710.32
Total 159,641,747.94 94,695,220.31 145,408,081.79 95,186,297.55
5. Investment income
Unit: yuan
Item Current amount Amount in the previous period
Cost method of long-term equity investment
18,868,681.95
income
Long-term equity investment income
23,671.37 551,059.52
calculated by equity method
Bank wealth management product income 32,601,213.26 8,956,836.39
Total 51,493,566.58 9,507,895.91
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XVII. Supplementary Information
1. Breakdown of current non-recurring gains and losses
√ Applicable □ Not applicable
Unit: yuan
Item Amount Explanation
Non-current asset disposal gains and losses 2,745.13
Government subsidies included in the
current profit and loss (closely related to the
business of the enterprise, except for For details, please refer to notes VII (46)
7,097,271.94
government subsidies that are fixed or and VII (52) of the financial report
quantified according to the national unified
standard)
In addition to the effective hedging business
related to the company's normal business
operations, holding transactional financial
assets, derivative financial assets,
transactional financial liabilities, fair value
changes in derivative financial liabilities, 46,010,424.48
and disposal of transactional financial assets
and derivative financial Investment income
from assets, trading financial liabilities,
derivative financial liabilities and other debt
investments
Other non-operating income and expenses
-1,288,845.41
other than the above
Minus: the amount of income tax impact 5,538,643.77
Effect of minority shareholders' equity 103,166.14
Total 46,179,786.23 --
For the company's non-recurring profit and loss items defined by the "Announcement of Information Disclosure by Companies
Offering Securities to the Public No. 1—Non-recurring Gains and Losses" and the "Announcement of Information Disclosure by
Companies Offering Securities to the Public No. 1—Non-recurring Gains and Losses " the non-recurring gains and losses items listed
in the report are defined as recurring gains and losses, and the reasons should be explained.
□ Applicable √ Not applicable
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2. Return on net assets and earnings per share
Earnings per share
Profit during the reporting period Weighted average return on net assets Basic earnings per share Diluted earnings per
(yuan / share) share (yuan / share)
Net profit attributable to common
2.89% 0.08 0.08
shareholders of the company
Net profit attributable to ordinary
shareholders of the company after
1.84% 0.06 0.06
deducting non-recurring gains and
losses
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Section 12 Catalogue of Documents for Reference.
1. Financial statements signed and sealed by the legal representative, chief in charge of accounting work and head
of accounting institution.
2. The original copies of all company documents and announcements publicly disclosed in the newspapers
designated by the CSRC during the reporting period.
3. The text of the 2019 annual report of the company containing the signature of the legal representative.
4. The location of the above documents for reference: the securities department of the company.
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