Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
Nanjing Putian Telecommunications Co., Ltd.
Semi-annual Report for 2024
[August 2024]
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Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
Section I Important Notes, Contents and Interpretations
The Board of Directors, Board of Supervisors, directors, supervisors and
senior executives of the Company guarantee the truthfulness, accuracy and
completeness of the Semi-annual Report, and ensure that there are no false
records, misleading statements or major omissions, and they will be held
individually and jointly liable for any legal liability that may arise.
Li Langping, the person in charge of the Company, Liao Rongchao, the
person in charge of accounting, and Zhang Jingxia, the person in charge of the
accounting firm (accounting supervisor), declare that they guarantee the
truthfulness, accuracy and completeness of the financial report represented in
this Semi-annual Report.
All directors attended the board meeting at which this Semi-annual
Report was considered.
If this Semi-annual Report contains any forward-looking statements
concerning future plans such as the Company's business plan, such statements
are not intended to constitute a substantive commitment to investors, and
investors and related parties should exercise sufficient risk awareness and
carefully consider the differences among plans, forecasts, and commitments.
In "Section III Discussion and Analysis of the Management Team" of this
report, the Company has analyzed the risk factors that may adversely affect
the realization of the Company's future development strategies and business
objectives. We encourage investors to review this section carefully.
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The Company planned not to distribute cash dividends and bonus shares,
or increase its share capital from provident fund.
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Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
Contents
Section I Important Notes, Contents and Interpretations ...................................................................... 2
Section II Company Profile and Main Financial Indicators ..................................................................7
Section III Discussion and Analysis of the Management Team ............................................................ 10
Section IV Corporate Governance ..................................................................................................................22
Section V Environmental and Social Responsibilities ..............................................................................24
Section VI Important Matters .......................................................................................................................... 26
Section VII Changes in Shares and Shareholders ..................................................................................... 70
Section VIII Information on Preferred Shares ...........................................................................................76
Section IX Information on Bonds ....................................................................................................................77
Section X Financial Report ................................................................................................................................78
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Contents of Documents for Future Reference
(I) Financial statements containing the signatures and seals of the person in charge of the Company, the person in charge of
accounting and the person in charge of the accounting firm (accounting supervisor)
(II) The originals of all Company documents and announcements publicly disclosed during the reporting period
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Interpretations
Term means Interpretation
The Company, Company means Nanjing Putian Telecommunications Co., Ltd.
CETC means China Electronics Technology Group Corporation
CETC Glarun means CETC Glarun Group Co., Ltd.
Nanjing Southern Telecom Co., Ltd. (a holding
Southern Telecom means
subsidiary of the Company)
Nanjing Putian Telege Intelligent Building Ltd. (a
Telege means
holding subsidiary of the Company)
Nanjing Nanman Electrical Co., Ltd. (a wholly-owned
Nanman Electrical means
subsidiary of the Company)
Nanjing Putian Datang Information Electronics Co., Ltd.
Putian Datang means
(a holding subsidiary of the Company)
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Section II Company Profile and Main Financial Indicators
I. Company profile
Stock abbreviation NTX B Stock code 200468
Stock exchange Shenzhen Stock Exchange
Chinese name of the
南京普天通信股份有限公司
Company
Chinese abbreviation of the
南京普天
Company (if any)
English name of the Company
Nanjing Putian Telecommunications Co., Ltd.
(if any)
Legal representative Li Langping
II. Contact persons and contact information
Secretary of the Board of Directors Securities representative
Name Li Jing Dai Yuan
Putian Technology Pioneer Park, No.8 Putian Technology Pioneer Park, No.8
Mailing Address Fenghui Avenue, Yuhuatai District, Fenghui Avenue, Yuhuatai District,
Nanjing City, Jiangsu Province Nanjing City, Jiangsu Province
Tel. 025-69675805 025-69675865
Fax 025-52416518 025-52416518
Email: lijing@postel.com.cn daiyuan@postel.com.cn
III. Others
1. Company’s contact information
Whether the Company's registered address, office address and postal code, company website and e-mail address were changed
during the reporting period
□Applicable Not applicable
The Company’s registered address, office address and postal code, website and e-mail address were not changed during the
reporting period. For details, please refer to the Annual Report for 2023.
2. Location of information disclosure and provision
Whether the location of information disclosure and provision was changed during the reporting period
□Applicable Not applicable
The websites and names of the stock exchange and the media where the Company disclosed the Semi-annual Report, and the
location where the Company provided the Semi-annual Report remained unchanged during the reporting period. For details, please
refer to the Annual Report for 2023.
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3. Other relevant information
Whether other relevant information was changed during the reporting period
□Applicable Not applicable
IV. Main accounting data and financial indicators
Does the Company need to retroactively adjust or restate the accounting data of previous years?
□Yes No
Amount of the reporting
Amount of the reporting Amount of the same period of period increased or decreased
period the previous year over the same period of the
previous year (%)
Operating revenue (yuan) 348,986,240.92 392,539,877.69 -11.10%
Net profit attributable to
shareholders of the listed -9,457,810.54 -10,961,896.92 13.72%
company (yuan)
Net profit attributable to
shareholders of the listed
company after deducting non- -11,897,403.65 -12,523,737.97 5.00%
recurring gains and losses
(yuan)
Net cash flow from operating
-122,220,010.91 -86,082,483.47 -41.98%
activities (yuan)
Basic earnings per share
-0.04 -0.05 20.00%
(yuan/share)
Diluted earnings per share
-0.04 -0.05 20.00%
(yuan/share)
Weighted average return on
-861.91% -66.38% -795.53%
net assets
Amount at the end of the
Amount at the end of the Amount at the end of the reporting period increased or
reporting period previous year decreased over the end of the
previous year (%)
Total assets (yuan) 829,492,269.73 826,241,412.27 0.39%
Net assets attributable to
shareholders of the listed -4,914,011.75 5,111,258.66 -196.14%
company (yuan)
V. Differences in accounting data under domestic and overseas accounting standards
1. Differences in net profits and net assets in the financial reports disclosed in accordance with
international accounting standards and in accordance with Chinese accounting standards
□Applicable Not applicable
During the reporting period, there is no difference between the net profits and net assets in the financial reports disclosed in
accordance with international accounting standards and Chinese accounting standards.
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2. Differences in net profits and net assets in the financial reports disclosed in accordance with overseas
accounting standards and in accordance with Chinese accounting standards
□Applicable Not applicable
During the reporting period, there is no difference between the net profits and net assets in the financial reports disclosed in
accordance with overseas accounting standards and Chinese accounting standards.
VI. Items and amounts of non-recurring profits and losses
Applicable □Not applicable
Unit: yuan
Item Amount Description
Profits and losses on disposal of non-
current assets (including the write-off
-468.86
part of the provision for impairment of
assets)
Government subsidies included in the
profits and losses of the current period
(except the government subsidies that are
closely related to the normal operation of
the Company, conform to the national 1,106,532.24
policies and regulations, are continuously
enjoyed according to the specified
standard, and have continuous influence
on the Company's profits and losses)
Profit and loss of debt restructuring 1,031,433.22
Other non-operating revenue and
1,541,213.46
expenses other than the above items
Less: Affected amount of revenue tax 756,172.33
Affected amount of minority
482,944.62
shareholders' equity (after tax)
Total 2,439,593.11
Details of other profit and loss items that comply with the definition of non-recurring profit and loss:
□Applicable Not applicable
The Company had no other profit and loss items that comply with the definition of non-recurring profit and loss.
Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No.1 on Information
Disclosure by Companies with Public Securities Offerings - Non-recurring Profits and Losses as recurring profit and loss items
□Applicable Not applicable
The Company does not define the non-recurring profit and loss items listed in the Explanatory Announcement No.1 on Information
Disclosure by Companies with Public Securities Offerings - Non-recurring Profits and Losses as recurring profit and loss items.
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Section III Discussion and Analysis of the Management Team
I. Major business of the Company during the reporting period
1. Major business of the Company
During the reporting period, the major business of the Company remained unchanged. The major business
of the Company and its subsidiaries involved areas such as intelligent video conferencing, intelligent cabling,
intelligent distribution and lighting, mainly including multimedia communication and application solutions,
intelligent and integrated building solutions, industrial intelligent power distribution systems, IoT-based solar
energy and grid-connected street lamp control system, etc. The products were mainly offered to large state-
owned enterprises, governmental departments, financial, electricity, medical institutions and the customers in
other industries.
The subsidiary Southern Telecom mainly provided multimedia communication and application solutions
for large and medium-sized customers from various sectors, such as central enterprises, governmental
departments, financial and medical institutions, etc. The subsidiary Telege mainly provided customers with
mid-to-high end integrated cabling and intelligent building system solutions. The subsidiary Nanman Electrical
provided intelligent power distribution solutions for various premises such as railway transportation, airports,
ports, and parks. The subsidiary Putian Datang mainly provided customers with mains supply, solar street lamp
controllers and IoT-based intelligent street lamp management and control solutions.
The Company mainly obtained business opportunities by participating in project bidding. It designed
solutions, produced or purchased equipment required by customers according to project requirements. It was
responsible for installation, commissioning and system integration. It realized profits after deducting costs
based on the contract price. The Company's operating performance was mainly affected by factors such as
capital expenditures, information investments and bidding results of customers including central enterprises,
governmental departments, financial institutions, and railway transportation authorities, as well as fluctuations
in raw material prices and changes in other costs.
2. Major business development
In the first half of 2024, the overall operation of the Company in the communication industry remained
stable. The construction of new infrastructure such as 5G and Gigabit optical networks was continually
promoted. The number of network connection users steadily increased.
During the reporting period, the Company steadfastly adhered to the principles embodied in Xi Jinping’s
Thought on Socialism with Chinese Characteristics for a New Era. We wholeheartedly embraced the tenets of
the 20th CPC National Congress, ensuring unwavering alignment with the strategic decisions and deployments
delineated by the leading Party group of CETC and the Party Committee of CETC Glarun. With the goal-
oriented management, we confronted problems with confidence and braved the challenges while strengthening
our execution ability and paying attention to the implementation of specific practices. We remained steadfast in
the dedication to our primary responsibilities and core business while strengthening strategic guidance. We
adhered to market orientation and pursued innovation-driven strategies with the utmost vigor. We integrated
superior resources, optimized our industrial distribution and management structure, and accelerated our
transformation and development. We focused on key areas and enhanced our ability to prevent and mitigate
risks. Considering resolution of practical problems as an opportunity, we promoted the business management of
loss-making enterprises, constantly deepened reform, and accelerated high-quality development.
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(1) The Company remained meticulous in the dedication to its primary responsibilities and core business
while actively exploring emerging markets.
The Company organized its business segments to persistently focus on specialized sectors with a view to
building and reinforcing its core competitiveness. It maintained the scale of its primary responsibilities and core
business while proactively participated in exploring new business directions of the Group. It found the industrial
development direction and new business areas appropriate to its business model and tried something new in this
regard. It continually optimized its business structure and strove for increasing the management efficiency and
refining operational excellence. All these efforts cemented the foundation for its further development.
Integrated cabling products: The Company seized new development opportunities, adopted differentiated
competition strategies, intensified the promotion of new products, and formulated differentiated product
solutions based on local conditions. While continuously striving to explore high-end markets such as medical
care, airport, and finance, the Company strengthened its research and development activities of products and
technologies such as shielded data rooms/cabinets, and optical network management and monitoring. In the first
half of this year, the Company won the bid for the MPO pre-terminated cabling project of a data center
computer room.
Video conferencing products: The Company applied a business model propelled by a dual approach of
product distribution and direct orders from projects. It continually consolidated the existing marketing methods
and deepened key account marketing. It strengthened the implementation of key projects under construction
such as Jiangxi Bank and Postal Savings Bank of China. At the same time, it followed the key projects of
central state-owned enterprises closely, such as China Investment, China Resources Gas, and China Coal. It
won the bid for the project of China Oil and Gas Pipeline Network Corporation at the beginning of this year.
This project is under construction as planned.
Intelligent electrical products: The Company made substantial inroads into sectors such as railway
transportation and social markets and continually enhanced the project quality, as exemplified by the successful
bids for Ningbo Metro Line 6, Jinan Urban Rail Transit Line 6 and Guangzhou Metro Line 3 projects.
Furthermore, its proactive engagement with prominent civil market integrators yielded success, with the
Company securing the construction projects for Beijing Tongzhou Service Center and Yan'an Cigarette Factory.
Smart lighting products: The Company increased its efforts in technological innovation of smart lighting
products and actively promoted market transformation. The Company actively developed its leading products
such as smart lighting management platform and IoT-based mains supply products, and won the bids for China
Tower's street lamp standardized product and equipment procurement project and China Unicom Digital
Technology's centralized procurement project for street lamp controllers.
(2) The Company adhered to innovation-driven strategies and steadily enhanced the core competitiveness
of its products.
It steadfastly pursued scientific and technological innovation to drive its development and growth,
continually strengthened core technologies appropriate to its corporate development strategies, and constantly
enhanced its competitiveness. Based on its own advantages and aiming at becoming a domestic leader
specialized in offering information, communication and intelligent electrical products and solutions, it
continually accumulated a wide range of technologies, such as physical connection, multimedia communication
and application integration in the field of communication, intelligent and integrated building cabling, complete
sets of intelligent LV distribution technology, IoT-based solar and grid-connected street lamp controller system
technology, etc. The product technologies of the Company were driven by requirements of customers on the
market. It persisted in innovation to provide multiple optimization programs. It constantly improved customer
satisfaction and the competitiveness of its products.
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It strengthened the construction of new platforms. In the first half of this year, its subsidiaries Nanman
Electrical and Putian Datang received the title of "Provincial-Level Specialized and Sophisticated SMES"
respectively. Its subsidiary Southern Telecom obtained the national military standard system certification.
During the reporting period, the Company filed 6 patent applications, among which 4 were invention
patents, as well as 3 applications for software copyright. It was granted 10 patent licenses, among which 4 were
invention patents and 6 were utility model patents. It participated in the preparation of 3 national standards.
(3) The Company deepened reform and development and accelerated its transformative upgrades.
Within the reporting period, the Company strove to enhance political and organizational functions of its
party organization and continually promoted deeper integration of its party building and business activities. Its
high-quality party building efforts ensured the efficient corporate development. It insisted on strategic planning
as a driving force and leveraged existing advantageous industries (i.e., information, communication and
electrical products). It placed a prominent emphasis on bolstering the complementary provisioning capability of
network and information systems. This, in turn, propelled the enhancement of the Company's overarching
capability to provide solutions integrating “products + technology + services" to continually propel the
realization of business strategic objectives. To strengthen the dedication to its primary responsibilities and core
business, it further promoted industrial restructuring, accelerated liquidation of loss-making subsidiaries, and
strove to refine operational excellence.
II. Analysis of core competitiveness
1. Marketing ability
The company always adheres to the market-oriented approach and has established a mature marketing
network. It has provided long-term services for customers across a diverse range of sectors. These include
central enterprises, government agencies, financial institutions, rail transit companies, electric power
companies, healthcare providers, and Internet-based businesses. It has extensive industry experience. In
addition, the Company has established offices in Beijing, Xi'an, Shanghai, Chengdu, Wuhan, Shenzhen and
other cities, and formed localized marketing teams to provide customers with professional and in-depth
services, including sales, technical and commercial teams.
2. Product competitiveness
The Company staunchly adheres to an innovation-driven strategy, systematically intensifying the R&D of
novel products to elevate its core competencies. The Company has more than 20 years of rich professional and
technical service experience in the field of smart conferencing. By virtue of independent innovation, its self-
developed products have been widely recognized by customers such as central enterprises, government,
financial and medical institutions. The Company has established the Southern Telecom Intelligent
Collaboration Experience Center, which fully leverages the technical advantages of the self-developed
intelligent management platform and Huawei-branded products. The Company's self-developed Glarun series
video conferencing products are centered on the "1+3+N Ruijing Intelligent Management Platform", which can
plan and build a complete intelligent space for customers and comprehensively enhance the new experience of
intelligent space. It intelligent cabling products are positioned in the high-end market. It provides premium-
quality solutions for integrated cabling and intelligent building systems. Exhibiting robust competitive
advantages in market sales and product technical standards, these products have emerged as formidable
substitutes for international brands. Its intelligent power distribution products find extensive applications in rail
transportation, airports, and terminals, consistently maintaining a prominent position in the rail transportation
sub-sector. Its market standing is attributed to the high professionalism and strong competitiveness of its
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products. In the field of smart lighting, the Company has a longstanding commitment to cultivating expertise in
the domain of energy-efficient controller systems. The smart lighting products are incorporated into integrated
solutions of advanced IoT-based solar energy, grid-connected street lamp controllers and smart street lamps for
customers. This dedication has culminated in the establishment of an integrated ecosystem that encompasses
R&D, manufacturing, and large-scale sales.
3. Brand influence
The Company is an information and communications subsidiary of a central enterprise. Southern Telecom
takes pride in an impressive array of video conferencing products, including the "Ruijing" and "Ruizhi" series.
These offerings have garnered significant recognition within the domestic market. Putian Telege has earned the
prestigious distinction of being recognized as a famous brand of integrated cabling products in Jiangsu Province,
as well as a renowned provincial trademark. Consistently ranking among the top ten domestic comprehensive
cabling brands for 19 consecutive years, these products have positioned themselves as industry leaders poised to
substitute for foreign counterparts. Nanman Electrical is a prominent brand within the rail transportation
industry. Putian Datang has a strong brand influence in the field of energy-saving control.
III. Analysis of main business
Overview
See “I. Major business of the Company during the reporting period” for details.
Year-on-year changes in major financial data
Unit: yuan
Amount of the same
Amount of the Year-on-year increase
period of the previous Reasons for changes
reporting period or decrease
year
Operating revenue 348,986,240.92 392,539,877.69 -11.10%
Operating cost 264,438,748.73 303,199,007.67 -12.78%
Sales expenses 40,232,841.74 40,563,329.57 -0.81%
Management fees 30,517,683.59 32,677,949.24 -6.61%
Financial expenses 4,303,168.64 3,758,865.48 14.48%
Year-on-year decrease
in R&D expenses;
Income tax expenses 1,370,104.91 511,674.73 167.77% decrease in the
deducted amount of
R&D expenses
Investment in R&D 17,847,218.56 19,422,168.02 -8.11%
Centralized
procurement was made
at the beginning of this
Net cash flow from year to increase
-122,220,010.91 -86,082,483.47 -41.98%
operating activities operating reserves.
That period was the
slack season for
collection of payments.
Net cash flow from Investments in fixed
-584,393.24 -1,411,175.50 58.59%
investing activities assets decreased.
In the first half of this
Net cash flow from
26,737,312.42 45,012,616.96 -40.60% year, the cash received
financing activities
from loans was 83.38
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million yuan, and the
cash paid for repaying
loans was 46.50
million yuan. All cash
flow items from
financing activities
were within the annual
budget.
Year-on-year decrease
in the net cash flow
Net increase in cash from operating
-96,067,091.73 -42,448,021.92 -126.32%
and cash equivalents activities and the net
cash flow from
financing activities
Significant changes occurred in the profit composition or profit sources of the Company during the reporting period
□Applicable Not applicable
No significant changes occurred in the profit composition or profit sources of the Company during the reporting period
Composition of operating revenue
Unit: yuan
Amount of the same period of the
Amount of the reporting period Year-on-year
previous year
increase or
Proportion in Proportion in decrease
Amount Amount
operating revenue operating revenue
Total operating
348,986,240.92 100% 392,539,877.69 100% -11.10%
revenue
Industry
Communication
295,993,970.79 84.82% 350,156,435.31 89.20% -15.47%
industry
Electrical industry 52,992,270.13 15.18% 42,383,442.38 10.80% 25.03%
Product
Integrated cabling
products - 160,947,779.17 46.12% 170,832,000.76 43.52% -5.79%
operating revenue
Video
conferencing
122,835,024.15 35.20% 124,448,575.77 31.70% -1.30%
products -
operating revenue
Smart electrical
products - 52,992,270.13 15.18% 42,383,442.38 10.80% 25.03%
operating revenue
Communication
infrastructure
products and 23,516,694.52 6.74% 61,421,012.57 15.65% -61.71%
others - operating
revenue
Internal offset -11,305,527.05 -3.24% -6,545,153.79 -1.67% -72.73%
Region
Domestic 348,986,240.92 100.00% 392,539,877.69 100.00% -11.10%
The industries, products and regions that account for more than 10% of the Company's operating revenue or operating profit
Applicable □Not applicable
Unit: yuan
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Operating Gross profit
Operating costs
revenue margin
increased or
Gross increased or increased or
Operating decreased over
Operating cost profit decreased over decreased over
revenue the same period
margin the same period the same period
of the previous
of the previous of the previous
year
year year
Industry
Communication
295,993,970.79 224,849,877.23 24.04% -15.47% -17.00% 1.41%
industry
Electrical
52,992,270.13 39,588,871.50 25.29% 25.03% 22.64% 1.45%
industry
Product
Integrated
cabling
products - 160,947,779.17 125,377,475.84 22.10% -5.79% -6.51% 0.60%
operating
revenue
Video
conferencing
products - 122,835,024.15 93,788,278.20 23.65% -1.30% 2.56% -2.87%
operating
revenue
Smart electrical
products -
52,992,270.13 39,588,871.50 25.29% 25.03% 22.64% 1.45%
operating
revenue
Communication
infrastructure
products and
23,516,694.52 17,862,653.17 24.04% -61.71% -65.50% 8.34%
others -
operating
revenue
Internal offset -11,305,527.05 -12,178,529.98 -7.72% -72.73% -89.67% -9.62%
Region
Domestic 348,986,240.92 264,438,748.73 24.23% -11.10% -12.78% 1.47%
When the statistical range of the Company's main business data is adjusted during the reporting period, the Company's main
business data according to the range adjusted at the end of the reporting period in the latest period is
□Applicable Not applicable
IV. Analysis of non-main business
Applicable □Not applicable
Unit: yuan
Proportion to total
Amount Reasons Is it sustainable
profits
It was mainly the
Investment income 1,025,849.52 -25.73% income from debt No
restructuring.
Asset impairment -302,366.42 7.58% Loss on obsolete stocks No
Mainly for write-back
Non-operating revenue 2,341,968.45 -58.74% of accounts payable No
that could not be paid
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Due to the bankruptcy
and liquidation of
Non-operating customers, the costs
800,754.99 -20.09% No
expenses paid were converted to
non-operating
expenses.
V. Analysis of assets and liabilities
1. Significant changes in asset composition
Unit: yuan
Amount at the end of the reporting Amount at the end of the previous
period year Increase or
Description of
decrease in
Proportion to Proportion to major changes
Amount Amount proportion
total assets total assets
Monetary funds 80,099,622.26 9.66% 178,290,844.21 21.58% -11.92%
Accounts
399,014,754.35 48.10% 301,618,359.27 36.50% 11.60%
receivable
Contract assets 0.00% 0.00% 0.00%
Inventory 154,146,538.62 18.58% 122,698,778.26 14.85% 3.73%
Investment real
18,514,998.08 2.23% 19,127,078.75 2.31% -0.08%
estate
Long-term
equity 10,412,622.64 1.26% 10,412,689.14 1.26% 0.00%
investment
Fixed assets 90,478,775.60 10.91% 93,754,100.19 11.35% -0.44%
Construction in
0.00% 5,906.53 0.00% 0.00%
progress
Right-of-use
2,578,097.20 0.31% 0.00% 0.31%
asset
Short-term
106,710,779.97 12.86% 69,863,323.93 8.46% 4.40%
loans
Contract
14,916,159.30 1.80% 16,720,781.30 2.02% -0.22%
liability
Long-term
175,992,705.56 21.22% 176,011,976.11 21.30% -0.08%
loans
Lease liability 2,431,482.73 0.29% 0.00% 0.29%
2. Major overseas assets
□Applicable Not applicable
3. Assets and liabilities measured at fair value
Applicable □Not applicable
Unit: yuan
Item Opening amount Profits Changes in Impair Purchase Sales Other Closing amount
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and cumulative ment amount in amount in changes
losses fair value accrued the the current
from included in in the current period
changes equity current period
in fair period
value in
the
current
period
Financial
assets
4. Other
equity
instrument 741,953.00 741,953.00
investment
s
Subtotal of
financial 741,953.00 741,953.00
assets
Receivable
32,347,277.62 13,936,406.72
s financing
Total of the
above 33,089,230.62 14,678,359.72
items
Financial
0.00 0.00
liabilities
Other changes
Whether there were any significant changes in the measurement attributes of the Company's main assets during the reporting
period
□Yes No
4. Restricted asset rights as of the end of the reporting period
Assets with restricted ownership or use rights
(1) Details
Item Book value Reasons for restriction
Monetary funds 12,068,763.77 Bond and frozen funds due to lawsuits
Fixed assets 24,760,171.60 Real estate and land mortgage loans
Intangible assets 5,136,398.40 Real estate and land mortgage loans
Investment real estate 3,479,906.65 Real estate and land mortgage loans
Total 45,445,240.42
(2) Other notes
In addition to the above-mentioned assets with restricted ownership or use rights, the Company pledged its
equity interests in its subsidiaries, namely 96.99% equity in Nanjing Southern Telecom Co., Ltd. (with capital
contribution of 33.17 million yuan) and 100% equity in Nanjing Nanman Electrical Co., Ltd. (with capital
contribution of 41.14 million yuan) to China Potevio Information Industry Co., Ltd. for granting loans to the
Company by the entrusted financial company, and registered the pledge of the Company's equity in the
Administrations for Market Regulation respectively in Qinhuai District and Jiangning District, Nanjing. The
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parent company CETC Glarun Group Co., Ltd. provided guarantee for the Company's loan from CETC Finance
Co., Ltd., and the Company pledged its 40% equity in Nanjing Putian Telege Intelligent Building Ltd. (with
capital contribution of 8 million yuan) to the parent company, and registered the pledge of the Company's equity
in the Administration for Market Regulation in Jiangning District, Nanjing. The transfer of the equity in the
above-mentioned subsidiaries is restricted before the pledges are released.
VI. Analysis of investment status
1. Overview
Applicable □Not applicable
Investment amount in the reporting Investment amount in the same period of
Amplitude of variation
period (yuan) the previous year (yuan)
420,382.72 1,720,823.79 -75.57%
2. Significant equity investments acquired during the reporting period
□Applicable Not applicable
3. Major ongoing non-equity investments during the reporting period
□Applicable Not applicable
4. Investment in financial assets
(1) Securities investment
□Applicable Not applicable
There was no securities investment during the reporting period.
(2) Derivatives investment
□Applicable Not applicable
There was no derivative investment during the reporting period.
5. Use of raised funds
□Applicable Not applicable
There was no use of the raised funds during the reporting period.
VII. Sale of major assets and equity
1. Sale of major assets
□Applicable Not applicable
The Company did not sell any major assets during the reporting period.
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2. Sale of major equity
□Applicable Not applicable
3. Other notes
(1) In 2024, the Company planned to dispose of the equity in its subsidiary Nanjing Putian Changle
Communication Equipment Co., Ltd. During the reporting period, the transfer of this project was not completed.
(2) In 2024, the Company actively planned to transfer the equity in its subsidiary Nanjing Nanman
Electrical Co., Ltd., and disclosed the Suggestive Announcement of Nanjing Putian Telecommunications Co.,
Ltd. on Planning Major Asset Restructuring and Related Party Transactions (Announcement No.: 2024-039) on
July 23, 2024,disclosed the Announcement of Progress Announcement of Nanjing Putian Communication Co.,
Ltd. on Planning Major Asset Restructuring and Related Party Transactions (Announcement No.: 2024-042) on
August 22, 2024.
VIII. Analysis of the major companies controlled by the Company and companies in which
the Company holds an equity stake
Applicable □Not applicable
Major subsidiaries, and companies in which the Company holds an equity stake and that contribute more than 10% to the
Company's net profit
Unit: yuan
Company Type of Main Registered Operating Operating
Total assets Net assets Net profit
name company business capital revenue profit
Developme
nt,
Nanjing
production
Putian
and sales of
Telege 20 million 245,233,50 102,161,82 160,947,77 9,799,290.7 9,268,446.6
Subsidiary integrated
Intelligent yuan 5.81 4.84 9.17 0 8
cabling and
Building
intelligent
Ltd.
building
products
Multimedia
Nanjing
communica 34.2
Southern 269,095,71 104,479,42 122,835,02 3,510,226.9 5,313,184.5
Subsidiary tion and million
Telecom 1.96 6.11 4.15 4 2
application yuan
Co., Ltd.
solutions
Manufactur
ing and
Nanjing sales of
41.14
Nanman industrial 165,308,08 56,864,557. 52,992,270. 2,476,158.2 2,169,887.7
Subsidiary million
Electrical intelligent 6.30 99 13 7 8
yuan
Co., Ltd. power
distribution
products
Nanjing Research
Putian and
10 million 44,229,864. 26,084,049. 11,000,055.
Datang Subsidiary developme 138,327.68 138,327.68
yuan 20 23 29
Informatio nt,
n production
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Electronics and sales of
Co., Ltd. solar
energy
controllers,
and
production
and
processing
of
electronic
products
Manufactur
ing and
sales of
outdoor
cabling
products,
cable
Nanjing distribution
Putian equipment,
Changle outdoor - - -
10 million 4,833,065.3
Communic Subsidiary and 4,357,147.9 688,354.89 1,481,842.9 2,031,842.9
yuan 3
ation machine 4 5 5
Equipment room
Co., Ltd. network
chassis
(cabinet)
equipment,
communica
tion
electronic
products
Acquisition and disposal of subsidiaries during the reporting period
□Applicable Not applicable
Information of major companies controlled by the Company and companies in which the Company holds an equity stake
-
IX. Structured entities controlled by the Company
□Applicable Not applicable
X. Risks faced by the Company and countermeasures
1. Risks of market competition
The industry in which the Company operates is characterized by fierce competition among a large number
of players. It faces increasingly intense competition. It also faces the risk of its operating performance not
meeting expectations during operations. Countermeasures: The Company will actively expand new industry-
specific markets. To achieve this, it will accelerate its industrial transformation and upgrading efforts, and
cultivate strategic emerging industries. The Company will also continuously strengthen its cost control, and
enhance its production and R&D capabilities to promote the rapid development of new products. Furthermore,
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the Company will keep a close eye on market trends, grasp market information, adjust sales policies in a timely
manner, and maintain its competitive edge in the market.
2. Risks of technology research and development
The rapid development of technology and product upgrades in the industry necessitates that the Company
keeps up with the ever-changing market demands. Failure to do so, or failure to develop products that meet
market demands, could have a negative impact on the Company’s operations.
Countermeasures: The Company will continue to actively monitor industry trends in technology
development and adopt a market-oriented approach to technology development and introduction. It places great
importance on the organization, planning, and management of product development, expands new product
projects, and strives to maintain its technological leadership in the industry. Moreover, the Company will
establish and improve its scientific and technological innovation management system, encourage innovative
development, strengthen the construction of scientific and technological talent teams, and improve its scientific
research capabilities.
3. Risks of cash flow shortage
The Company has a high asset-liability ratio. The sales payment period of some products is prolonged,
resulting in tight liquidity and significant cash flow pressure.
Countermeasures: The Company adheres to budget management for funds, ensuring a dynamic balance
between cash payments and collections. The Company classifies and collects long-term accounts receivables,
while increasing assessment efforts, implementing reward and punishment measures, urging timely recovery of
payments, strengthening inventory management, and enhancing inventory liquidity. If necessary, the Company
may obtain some working capital financing from financial institutions.
4. Risks arising from the management of accounts receivables and inventories
Affected by factors such as changes in the market environment, the progress of customers' projects
construction, and changes in operating conditions, the Company's current accounts receivables and inventories
are large in scale. There is a risk of untimely recovery of payments.
Countermeasures: The Company will fully implement and sort out the conditions of accounts receivables
and inventories to ensure that all receivables can be collected and all necessary lawsuits can be filed. The
pressure control targets of accounts receivables and inventories will be broken down. Responsibilities will be
assigned to specific teams and individuals. Dynamic tracking and analysis will be carried out to strengthen
process supervision.
XI. Implementation of the "Improvements of Quality & Return" action plan
Whether the Company disclosed the announcement on the "Improvements of Quality & Return" action plan
□Yes No
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Section IV Corporate Governance
I. Annual general meeting of shareholders and extraordinary general meetings of
shareholders held during the reporting period
1. General Meeting of Shareholders during the Reporting Period
Investor
Session Type Date of meeting Date of disclosure Resolution
participation ratio
The following
proposals were
reviewed and
approved at the
meeting:
1. Work Report of
the Company’s
Board of Directors
for 2023;
2. Work Report of
the Company’s
Board of
Supervisors for
2023;
3. The Company's
annual final
financial accounts
report for 2023;
4. The Company's
profit distribution
plan for 2023;
2023 annual Annual general
5. Annual report of
general meeting of meeting of 58.06% May 28, 2024 May 29, 2024
the Company for
shareholders shareholders
2023;
6. Proposal on
expected routine
related party
transactions in
2024;
7. Proposal on
engaging an
accounting firm;
8. Proposal on
applying for
general credit line
from the financial
company;
9. Proposal on
amending the
Articles of
Association of the
Company;
10. Proposal on
amending the
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Company’s Rules
of Procedure for
the General
Meeting of
Shareholders;
11. Proposal on
amending the
Company’s Rules
of Procedure for
the Board of
Directors
The following
proposals were
reviewed and
approved at the
The first meeting:
extraordinary Extraordinary Proposal on the
general meeting of general meeting of 57.21% June 11, 2024 June 12, 2024 repurchase of the
shareholders in shareholders Company's partial
2024 foreign shares
listed in China
(Class B shares)
by centralized
bidding
2. The preferred shareholders whose voting rights have been restored requested to convene an
extraordinary general meeting of shareholders.
□Applicable Not applicable
II. Changes of directors, supervisors and senior executives of the Company
□Applicable Not applicable
The directors, supervisors and senior executives of the Company remain unchanged during the reporting period. For details, please
refer to the Annual Report for 2023.
III. Profit distribution and conversion of capital provident fund to share capital during the
reporting period
□Applicable Not applicable
The Company planned not to distribute cash dividends and bonus shares, or increase its share capital from provident fund in the
first half of the year.
IV. Implementation of the Company’s equity incentive plan, employee stock ownership plan
or other employee incentive measures
□Applicable Not applicable
During the reporting period, the Company had no equity incentive plan, employee stock ownership plan or other employee
incentive measures and implementation of such plans and measures.
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Section V Environmental and Social Responsibilities
I. Major environmental protection issue
Whether the listed company and its subsidiaries are key pollutant discharge units announced by the environmental protection
department
□Yes No
Administrative punishment due to environmental problems during the reporting period
Influence on the
Rectification
Name of company Reasons for production and
Violation Penalty measures taken by
or subsidiary punishment operation of they
the Company
listed company
- - - - - -
Refer to other environmental information disclosed by key pollutant discharge units.
-
Measures taken to reduce carbon emissions during the reporting period and their effects
□Applicable Not applicable
Reasons for not disclosing other environmental information
The Company and its subsidiaries are not key pollutant discharge units announced by the environmental
protection department. During the reporting period, the Company strictly implemented the relevant national
environmental protection laws and regulations, and there was no violation of environmental protection laws and
regulations, and there was no administrative punishment by the environmental protection department for
environmental violations.
II. Social responsibilities
In the communications industry, the Company insists on independent innovation, continuously promotes
its own sustainable development, fulfills its responsibilities and obligations to stakeholders, and strives to
achieve harmonious and win-win development of itself, its employees, society and environment.
The Company constantly improves and optimizes corporate governance, conscientiously fulfills its
information disclosure obligations, ensures shareholders' right to be informed, participate and vote on major
issues of the Company, and ensures the legitimate rights and interests of all shareholders.
The Company attaches great importance to quality, environment and occupational safety and health
management, and has passed GB/T19001-2016/ISO9001:2015 quality management system certification,
GB/T24001-2016/ISO14001: 2015 environmental management system certification and GB/T45001-
2020/ISO45001:2018 occupational health and safety management system certification.
The Company strictly abides by the Labor Law, the Labor Contract Law and other laws and regulations,
always upholds the core people-oriented values, attaches great importance to the value of employees, cares
about their work, life, health and safety, effectively protects their rights and interests, enhances the cohesion of
the Company, and strives to realize the vision of common development of itself and its employees.
The Company steadfastly upholds the principle of driving development, building its brand, expanding
market presence, and shaping its image through a strong sense of responsibility. The commitment lies in
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nurturing a responsible enterprise and diligently establishing a harmonious fusion of company development and
the practice of social responsibilities.
Based on the principle of honesty and trustworthiness and legal operation, the Company actively builds
cooperative partnership with suppliers, customers, banks and other relevant stakeholders, respects the legitimate
rights and interests of relevant stakeholders, tries to realize win-win results for itself and relevant stakeholders,
and promotes its sustained and steady development.
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Section VI Important Matters
I. Commitments fulfilled by the actual controllers, shareholders, related parties, purchasers
and the Company during the reporting period and commitments not fulfilled by the end of
the reporting period
Applicable □Not applicable
Subject of Commitment Type of Contents of Date of Fulfillment
Valid period
commitment party commitments commitments commitment status
After research
by the State-
owned Assets
Supervision
and
Administration
Commission of
the State
Council
(SASAC) and
approval by the
State Council,
China Potevio
Information
Industry Co.,
Ltd.
(hereinafter
referred to as
"China
Commitments
Commitments Potevio") will
China on horizontal
made in the be transferred
Electronics competition,
acquisition as a whole to August 31, In normal
Technology related party Long-term
report or the China 2021 performance
Group transactions
equity change Electronics
Corporation and capital
report Technology
occupation
Group
Corporation
(hereinafter
referred to as
"the
Company") free
of charge and
becomes a
wholly-owned
subsidiary of
the Company
(hereinafter
referred to as
"this
Reorganization
"). This
reorganization
will result in
the Company
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becoming the
indirect
controlling
shareholder of
Nanjing Putian
Telecommunica
tions Co., Ltd.
(hereinafter
referred to as
the "Listed
Company"),
which is a
listed company
of China
Potevio. As the
acquirer of the
listed company,
the Company
hereby makes
the following
commitments
to ensure the
independence
of the listed
company in
terms of assets,
personnel,
finance,
business and
institutions:
1.
Independence
of personnel
(1) Ensure that
the general
managers,
deputy general
managers, chief
financial
officer,
secretary of the
board of
directors and
other senior
executives of
the listed
company will
not hold any
administrative
positions other
than directors
or supervisors
in the Company
or other
enterprises and
institutions
controlled by
the Company
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(hereinafter
referred to as
"Subordinate
Enterprises and
Institutions"),
and will not
receive any
salary from the
Company or its
subordinate
enterprises and
institutions.
(2) Financial
personnel of the
listed company
will not work
part-time in the
Company or its
subordinate
enterprises and
institutions.
2. Financial
independence
(1) Ensure that
the listed
company sets
up an
independent
financial
accounting
department and
has an
independent
financial
accounting
system and
financial
management
system, and
makes
independent
financial
decisions.
(2) Ensure that
the listed
company
remains
independent in
financial
decision-
making, and the
Company and
its subordinate
enterprises and
institutions do
not interfere
with the use of
funds of the
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listed company.
(3) Ensure that
the listed
company
independently
opens bank
accounts and
settles income
and
expenditures,
and
independently
files tax returns
and fulfills
taxation
obligations in
accordance
with the law.
3. Institution
independence
(1) Ensure that
the listed
company and
its subsidiaries
establish and
improve the
corporate
governance
structure in
accordance
with the law
and can operate
independently;
ensure that the
listed
company's
office and
production and
operation
premises are
separated from
the Company
and its
subordinate
enterprises and
institutions.
(2) Ensure that
the listed
company and
its subsidiaries
operate
independently
and have no
subordinate
relationship
with the
functional
departments of
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the Company.
4. Asset
independence
(1) Ensure that
the listed
company has
independent
and complete
assets.
(2) Ensure that
the Company
and its
subordinate
enterprises and
institutions do
not illegally
occupy the
assets, funds or
other resources
of the listed
company.
5. Business
independence
(1) Ensure that
the listed
company's
business is
independent
and that it
conducts
operating
activities
independently.
(2) Ensure that
the listed
company
independently
signs contracts
and conducts its
business, forms
an independent
and complete
business
system,
implements
independent
accounting for
business
management,
independently
assumes
responsibilities
and risks, and
has the ability
to
independently
and
autonomously
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operate in the
market.
This
commitment
will remain
valid during the
period when the
Company
controls the
listed company.
If the Company
fails to fulfill
any of the
above
commitments
and causes
losses to the
listed company,
the Company
will assume the
corresponding
liability for
indemnification
.
After research
by the State-
owned Assets
Supervision
and
Administration
Commission of
the State
Council
(SASAC) and
approval by the
State Council,
China Potevio
Information
Commitments
Industry Co.,
China on horizontal
Ltd.
Electronics competition,
(hereinafter August 31, In normal
Technology related party Long-term
referred to as 2021 performance
Group transactions
"China
Corporation and capital
Potevio") will
occupation
be transferred
as a whole to
China
Electronics
Technology
Group
Corporation
(hereinafter
referred to as
"the
Company") free
of charge and
becomes a
wholly-owned
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subsidiary of
the Company
(hereinafter
referred to as
"this
Reorganization
"). This
reorganization
will result in
the Company
becoming the
indirect
controlling
shareholder of
Nanjing Putian
Telecommunica
tions Co., Ltd.
(hereinafter
referred to as
the "Listed
Company"),
which is a
listed company
of China
Potevio. As the
acquirer of the
listed company,
the Company
hereby
promises to
avoid
horizontal
competition
and safeguard
the interests of
public
shareholders:
From the date
of this letter,
the Company
will further
investigate
whether there is
any horizontal
competition
with the listed
company. If
there is any
horizontal
competition,
the Company
will strengthen
internal
coordination
and control
management to
ensure the
healthy and
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sustainable
development of
the listed
company and
will not harm
the interests of
the listed
company and
its public
investors. If
there is no
horizontal
competition,
the Company
will strictly
abide by the
relevant rules
formulated by
the CSRC and
the stock
exchange, the
articles of
association of
the listed
company, and
other relevant
regulations
during the
period when the
Company
directly or
indirectly
maintains
substantial
equity control
over the listed
company; the
Company will
not use its
controlling
position in the
listed company
to engage in
any horizontal
competition
that damages
the legitimate
rights and
interests of the
listed company
and its minority
shareholders.
The above
commitments
will come into
force from the
date of the
letter of
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commitment
and will remain
valid while the
listed company
legally and
effectively
exists and the
Company is the
actual
controller of the
listed company.
After research
by the State-
owned Assets
Supervision
and
Administration
Commission of
the State
Council
(SASAC) and
approval by the
State Council,
China Potevio
Information
Industry Co.,
Ltd.
(hereinafter
referred to as
"China
Potevio") will
Commitments be transferred
China on horizontal as a whole to
Electronics competition, China
August 31, In normal
Technology related party Electronics Long-term
2021 performance
Group transactions Technology
Corporation and capital Group
occupation Corporation
(hereinafter
referred to as
"the
Company") free
of charge and
becomes a
wholly-owned
subsidiary of
the Company
(hereinafter
referred to as
"this
Reorganization
"). This
reorganization
will result in
the Company
becoming the
indirect
controlling
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shareholder of
Nanjing Putian
Telecommunica
tions Co., Ltd.
(hereinafter
referred to as
the "Listed
Company"),
which is a
listed company
of China
Potevio. As the
acquirer of a
listed company,
in order to
protect the
legitimate
rights and
interests of the
listed company
and its minority
shareholders,
the Company
makes the
following
commitments
on regulating
related party
transactions
with the listed
company:
1. The
Company and
subordinate
institutions
controlled by
the Company
will try to avoid
or reduce
unnecessary
related party
transactions
with the listed
company and
its subsidiaries.
Any related
party business
interactions or
transactions
that are
unavoidable or
occur with
reasonable
reasons will be
conducted on
an equal and
voluntary basis,
in accordance
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with the
principles of
fairness, justice
and openness,
and the
transaction
prices will be
reasonably
determined in
accordance
with market
principles. For
related party
transactions
where market
prices are
difficult to
compare or
pricing is
restricted, the
relevant cost
and profit
standards
should be
clearly defined
in contracts,
and the
decision-
making
procedures
should be
carried out in
accordance
with relevant
laws,
regulations,
normative
documents and
the Articles of
Association of
the listed
company to
ensure that the
legitimate
rights and
interests of the
listed company
and other
shareholders
are not
impaired by
related party
transactions.
Additionally,
information
disclosure
obligations
should be
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fulfilled in
accordance
with relevant
regulations.
2. Any
agreements and
arrangements
made by the
Company and
the subordinate
enterprises
controlled by
the Company
and the listed
company
regarding
related matters
and related
party
transactions
shall not
prevent the
other party
from
conducting
business or
transactions
with any third
party for its
own interests
under equal
market
competition
conditions.
This letter of
commitment
will remain
valid while the
listed company
legally and
effectively
exists and the
Company is the
actual
controller of the
listed company.
If the listed
company
suffers losses
due to the
Company's
violation of the
commitments
under this letter
of commitment,
the Company
will assume the
corresponding
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liability for
indemnification
in accordance
with the law.
As the acquirer
of NTX B, the
Company
hereby makes
the following
commitments
to ensure the
independence
of the listed
company in
terms of assets,
personnel,
finance,
business and
institutions
after this
acquisition is
completed:
1.
Independence
of personnel
(1) Ensure that
the general
Commitment managers,
on maintaining deputy general
the managers, chief
CETC Glarun independence financial October 12, In normal
Long-term
Group Co., Ltd. of Nanjing officer, 2022 performance
Putian secretary of the
Telecommunica board of
tions Co., Ltd. directors and
other senior
executives of
the listed
company will
not hold any
positions other
than directors
or supervisors
in the Company
or other
enterprises and
institutions
controlled by
the Company
(hereinafter
referred to as
"Subordinate
Enterprises and
Institutions"),
and will not
receive any
salary from the
Company or its
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subordinate
enterprises and
institutions.
(2) Ensure that
the financial
personnel of the
listed company
will not work
part-time in, or
receive any
salary from the
Company or its
subordinate
enterprises and
institutions.
(3) Ensure that
the listed
company has
complete and
independent
labor, personnel
and
remuneration
management
systems, and
that such
systems are
completely
independent of
the Company
and other
enterprises and
institutions
controlled by
the Company.
2. Financial
independence
(1) Ensure that
the listed
company sets
up an
independent
financial
accounting
department and
has an
independent
financial
accounting
system and
financial
management
system, and
makes
independent
financial
decisions.
(2) Ensure that
39
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
the listed
company
remains
independent in
financial
decision-
making, and the
Company and
its subordinate
enterprises and
institutions do
not interfere
with the use of
funds of the
listed company.
(3) Ensure that
the listed
company
independently
opens bank
accounts and
settles income
and
expenditures,
and
independently
files tax returns
and fulfills
taxation
obligations in
accordance
with the law.
(4) Ensure that
the financial
personnel of the
listed company
will not receive
appointments in
the Company or
its subordinate
enterprises and
institutions.
3. Institution
independence
(1) Ensure that
the listed
company and
its subsidiaries
establish and
improve the
corporate
governance
structure in
accordance
with the law,
establish
independent
and complete
40
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
organizational
structures, and
can operate
independently
and
autonomously;
ensure that the
listed
company's
office and
production and
operation
premises are
separated from
the Company
and its
subordinate
enterprises and
institutions and
that there is no
confusion of
organizations.
(2) Ensure that
the listed
company and
its subsidiaries
operate
independently
and have no
subordinate
relationship
with the
functional
departments of
the Company.
4. Asset
independence
(1) Ensure that
the listed
company has
independent
and complete
assets.
(2) Ensure that
the Company
and its
subordinate
enterprises and
institutions do
not illegally
occupy the
assets, funds or
other resources
of the listed
company.
5. Business
independence
(1) Ensure that
41
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
the listed
company's
business is
independent
and that it
conducts
operating
activities
independently.
(2) Ensure that
the listed
company has
the assets,
personnel, and
qualifications
to
independently
carry out
operating
activities and
that it
independently
signs contracts
and conduct its
business, forms
an independent
and complete
business
system,
implements
independent
accounting for
business
management,
independently
assumes
responsibilities
and risks, and
has the ability
to
independently
and
autonomously
operate in the
market.
(3) If the
Company and
its subordinate
enterprises and
institutions
have
unavoidable
related party
transactions
with the listed
company, they
will sign
agreements in
42
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
accordance
with the law
and will
perform
necessary legal
procedures in
accordance
with relevant
laws and
regulations, the
articles of
association of
the listed
company, etc.
These
commitments
will remain
valid while the
listed company
legally and
effectively
exists and the
Company is the
controlling
shareholder of
the listed
company. If the
Company fails
to fulfill any of
the above
commitments
and causes
losses to the
listed company,
the Company
will assume the
corresponding
liability for
indemnification
.
The main
businesses of
the Company
and the listed
company are
Commitment not identical or
on avoiding any similar. Before
horizontal this acquisition,
CETC Glarun competition the actual October 12, In normal
Long-term
Group Co., Ltd. with Nanjing controller of the 2022 performance
Putian listed company
Telecommunica was China
tions Co., Ltd. Electronics
Technology
Group
Corporation
(hereinafter
referred to as
43
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
"CETC"). After
this acquisition
is completed,
the actual
controller of the
listed company
will still be
CETC. This
acquisition is
conducted
among different
entities
controlled by
the same actual
controller and
has not resulted
in changes in
the actual
controller of the
listed company,
nor in the
related parties
of the listed
company.
Therefore, this
acquisition will
not cause new
horizontal
competition
between the
related parties
and the listed
company.
In order to
avoid any
horizontal
competition
and safeguard
the interests of
the public
shareholders,
we hereby
promise:
I. As of the date
of these
commitments,
the Company
and other
companies
controlled by
the Company
do not engage
or participate in
any business or
activities that
constitute any
substantial
competition
44
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
with the main
business of the
listed company.
II. After this
acquisition is
completed, the
Company and
other
companies
controlled by
the Company
will not directly
or indirectly
engage in the
same business
as the main
business of the
listed company.
III. After this
acquisition is
completed, the
Company will
ensure through
internal
coordination
and control
management
that the
Company and
its subordinate
institutions will
not have any
substantial
horizontal
competition
with the listed
company in the
future. If the
Company and
its subordinate
institutions
obtain business
opportunities to
engage in new
businesses
which may
compete with
the listed
company, the
Company and
its subordinate
institutions will
give priority to
offering such
new business
opportunities to
the listed
company for
45
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
selection, and
make every
effort to ensure
that such new
business
opportunities
meet the
conditions for
transfer to the
listed company.
If the listed
company
waives the
business
opportunities of
the above new
businesses, the
Company and
its subordinate
institutions may
operate the
relevant new
businesses
independently.
However, based
on the business
development
needs in the
future, the
listed company
will still enjoy
the following
rights, provided
that they are
permitted by
the applicable
laws,
regulations and
relevant
regulatory
rules:
1. The listed
company has
the right to
acquire assets
and interests
related to the
above
businesses from
the Company
and its
subordinate
institution once
or repeatedly;
2. In addition to
acquisitions,
the listed
company may
46
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
also choose to
operate the
assets and/or
businesses
related to the
above
businesses of
the Company
and its
subordinate
institutions
through
entrusted
management,
leasing,
contracting,
licensing, etc.,
provided that
they are
permitted by
the applicable
laws,
regulations and
relevant
regulatory
rules.
IV. This letter
of commitment
shall remain
valid as long as
the listed
company
legally and
validly exists
and the
Company
serves as the
controlling
shareholder of
the listed
company. As of
the date of this
letter of
commitment, if
the listed
company
suffers losses
because the
Company or its
subordinate
institutions
violate the
commitments
under this letter
of commitment,
the Company
will assume the
corresponding
47
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
liability for
indemnification
in accordance
with the law.
If any
obligation
cannot be
performed or
needs to be
adjusted due to
objective
reasons such as
policy
adjustments,
market
changes, etc.,
the Company
and the listed
company will
publicly
explain to the
market in
advance, fully
disclose the
reasons for
such
adjustment or
performance
failure, and
propose
corresponding
disposal
measures.
After this
acquisition is
completed, the
listed company
will continue to
strictly comply
with relevant
laws and
regulations, the
requirements of
Commitment the Listing
on regulating Rules, abide by
CETC Glarun October 12, In normal
and reducing the provisions Long-term
Group Co., Ltd. 2022 performance
related party of the Articles
transactions of Association
and other
related
transactions,
perform
necessary legal
procedures,
conduct related
transactions in
accordance
with legal and
48
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
valid
agreements,
give full play to
the role of
independent
directors in
actual practices,
follow the
principles of
fairness, justice
and openness,
and fulfill
information
disclosure
obligations, so
as to protect the
interests of
minority
shareholders. In
order to reduce
and regulate
related party
transactions
and safeguard
the legitimate
rights and
interests of the
listed company
and its minority
shareholders,
the Company
hereby makes
the following
commitments
on regulating
related party
transactions
with the listed
company:
1. The
Company and
subordinate
institutions
controlled by
the Company
will try to avoid
or reduce
unnecessary
related party
transactions
with the listed
company and
its subsidiaries.
Any related
party business
interactions or
transactions
that are
49
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
unavoidable or
occur with
reasonable
reasons will be
conducted on
an equal and
voluntary basis,
in accordance
with the
principles of
fairness, justice
and openness,
and the
transaction
prices will be
reasonably
determined in
accordance
with market
principles. For
related party
transactions
where market
prices are
difficult to
compare or
pricing is
restricted, the
relevant cost
and profit
standards
should be
clearly defined
in contracts,
and the
decision-
making
procedures
should be
carried out in
accordance
with relevant
laws,
regulations,
normative
documents and
the Articles of
Association of
the listed
company to
ensure that the
legitimate
rights and
interests of the
listed company
and other
shareholders
are not
50
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
impaired by
related party
transactions.
Additionally,
information
disclosure
obligations
should be
fulfilled in
accordance
with relevant
regulations.
2. Any
agreements and
arrangements
made by the
Company and
the subordinate
enterprises
controlled by
the Company
and the listed
company
regarding
related matters
and related
party
transactions
shall not
prevent the
other party
from
conducting
business or
transactions
with any third
party for its
own interests
under equal
market
competition
conditions.
This letter of
commitment
will remain
valid while the
listed company
legally and
effectively
exists and the
Company is the
controlling
shareholder of
the listed
company. If the
listed company
suffers losses
due to the
51
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
Company's
violation of the
commitments
under this letter
of commitment,
the Company
will assume the
corresponding
liability for
indemnification
in accordance
with the law.
If any
obligation
cannot be
performed or
needs to be
adjusted due to
objective
reasons such as
policy
adjustments,
market
changes, etc.,
the Company
and the listed
company will
publicly
explain to the
market in
advance, fully
disclose the
reasons for
such
adjustment or
performance
failure, and
propose
corresponding
disposal
measures.
In order to Jia Haowen and
ensure that the Li Jing are
Xu Qian, Wang Company's fulfilling their
Wenkui, Li measures for commitments
Tong, Liu Yun, making up for normally; Xu
Wang Jinfeng, the diluted Qian, Wang
Qin Zhen, Tang immediate Wenkui, Li
Commitments
Fuxin, Xie return can be Tong, Liu Yun,
made during Other November 25,
Manlin, Du effectively Long-term Wang Jinfeng,
asset commitments 2020
Xiaorong, Jia implemented, Qin Zhen, Tang
reorganization
Haowen, Lei all directors and Fuxin, Xie
Xu, Liu senior Manlin, Du
Xiaodong, executives of Xiaorong, Lei
Wang Huailin, the Company Xu, Liu
and Li Jing have made the Xiaodong, and
following Wang Huailin
commitments: have fulfilled
52
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
(I) I promise their
not to transfer commitments
benefits to (they have left).
other entities or
individuals
without
compensation
or under unfair
conditions, nor
to impair the
interests of the
listed company
in other ways;
(II) I promise to
restrict my
official
consumption
behaviors;
(III) I promise
not to use the
assets of the
listed company
for investment
and
consumption
activities
unrelated to the
performance of
my duties;
(IV) I promise
to, within the
scope of my
duties and
authority, make
every effort to
link the
remuneration
system
formulated by
the board of
directors or the
remuneration
committee with
the
implementation
of the listed
company's
measures for
making up for
the return;
(V) If the listed
company plans
to implement
equity
incentives in
the future, I
promise to,
within the
53
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
scope of my
duties and
authority, make
every effort to
link the
exercise
conditions of
the equity
incentives
planned by the
listed company
with the
implementation
of the measures
for making up
for the return;
(VI) If the
CSRC
formulates
other new
regulatory
provisions on
measures and
commitments
for making up
for the return
between the
date of these
commitments
and the
completion of
this transaction,
and the above
commitments
cannot meet
such provisions
of the CSRC, I
promise to
make
supplementary
commitments
in accordance
with the latest
provisions of
the CSRC;
(VII) I promise
to earnestly
implement the
measures for
making up for
the return
formulated by
the listed
company and
any
commitments
that I make on
such measures.
54
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
If I violate such
commitments
and cause
losses to the
listed company
or investors, I
am willing to
bear the
compensation
liability to the
listed company
or investors in
accordance
with the law.
Is the
commitment
Yes
fulfilled on
time?
If a
commitment is
not fulfilled on
time, the
specific reasons
for the failed Not applicable
fulfillment and
the next work
plan shall be
specified in
detail.
II. Non-operating occupation of funds by controlling shareholder and other related parties
of the Listed Company
□Applicable Not applicable
During the reporting period, there was no non-operating occupation of funds by controlling shareholders and other related parties
of the Listed Company.
III. Illegal external guarantees
□Applicable Not applicable
During the reporting period, the Company had no illegal external guarantees.
IV. Appointment and dismissal of accounting firm
Has the semi-annual financial report been audited?
□Yes No
The Semi-annual Report of the Company has not been audited.
V. Explanations of the Board of Directors and the Board of Supervisors on the "Modified
Audit Report" for the reporting period issued by the accounting firm
□Applicable Not applicable
55
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
VI. Explanation of the Board of Directors on the relevant information of the "Modified
Audit Report" for the previous year
□Applicable Not applicable
VII. Matters related to bankruptcy reorganization
□Applicable Not applicable
No bankruptcy reorganization related matters occurred during the reporting period.
VIII. Litigation
Major litigation and arbitration matters
□Applicable Not applicable
The Company had no major litigation or arbitration matters during the reporting period.
Other litigation
Applicable □Not applicable
Basic Whether an Result and Enforcement
Amount Progress of
information estimated influence of of litigation Date of Disclosure
involved (in litigation
of litigation liability is litigation (arbitration) disclosure index
10,000 yuan) (arbitration)
(arbitration) formed (arbitration) judgments
Wang Xingfu
v. Nanjing According to No Announceme
Putian the significant nt on the
Telecommun judgment, impact on the August 22, Cumulative
0 No Executed
ications Co., the plaintiff's Company's 2024 Litigation
Ltd.: Case of claim was current or Situation
Labor dismissed. future profits (2024-043)
Dispute
Jurong
Dongxu
Weak
Current
Engineering No
Co., Ltd. v. The lawsuit significant
Nanjing was settled impact on the August 22,
28.89 No Executed ditto
Putian upon court Company's 2024
Telecommun mediation. current or
ications Co., future profits
Ltd.: Case of
the Dispute
over the Sale
Contract
Nanjing
Jinling
Mandarin
Garden Hotel
Court session Case not August 22,
Co., Ltd. v. 9.66 No - ditto
not opened settled 2024
Nanjing
Putian
Telecommun
ications Co.,
56
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
Ltd.: Case of
the Dispute
over the
Service
Contract
Nanjing
Putian
Telege
Intelligent
Building Ltd.
v. Ningxia
Damo Case not August 22,
6.38 No Under trial - ditto
Technology settled 2024
Investment
Co., Ltd.:
Case of the
Dispute over
the Sale
Contract
Nanjing
Southern
Telecom Co.,
Ltd. v.
No
Jiangsu
Case significant
Hongji
withdrawn impact on the August 22,
Information 8.07 No Executed ditto
by the Company's 2024
Technology
plaintiff current or
Co., Ltd.:
future profits
Case of the
Dispute over
the Sale
Contract
Bao Yuqing
v. Nanjing No
Putian The lawsuit significant
Telecommun was settled impact on the August 22,
13.58 No Executed ditto
ications Co., upon court Company's 2024
Ltd.: Case of mediation. current or
Labor future profits
Dispute
Wang Xin v.
Nanjing
Putian
Telecommun
ications Co.,
Ltd. and
Nanjing
Putian Case not August 22,
15.39 No Under trial - ditto
Changle settled 2024
Communicati
on
Equipment
Co., Ltd.:
Case of
Labor
Dispute
Nanjing Case not August 22,
16.54 No Under trial - ditto
Putian settled 2024
57
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
Telege
Intelligent
Building Ltd.
v. Xi'an Luhe
Information
Technology
Co., Ltd. and
Liu
Xiaoxing:
Case of the
Dispute over
the Line Sale
Contract
Nanjing
Patiya
Intelligent
Electronic
Technology No
Co., Ltd. v. Case significant
Nanjing withdrawn impact on the August 22,
6.85 No Executed ditto
Putian by the Company's 2024
Telecommun plaintiff current or
ications Co., future profits
Ltd.: Case of
the Dispute
over the Sale
Contract
Wang
Chaohua v.
Nanjing
Putian Notice of
Case not August 22,
Telecommun 2.13 No appearance - ditto
settled 2024
ications Co., received
Ltd.: Case of
Labor
Dispute
Nanjing
Gongmei
Technology
Co., Ltd. v.
Nanjing
Putian
Telecommun Court session Case not August 22,
7.13 No - ditto
ications Co., not opened settled 2024
Ltd.: Case of
the Dispute
over the
Project
Construction
Contract
Wang Minfu
v. Nanjing
Putian
Telecommun Court session Case not August 22,
89.45 No - ditto
ications Co., not opened settled 2024
Ltd.: Case of
Labor
Dispute
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Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
Nanjing
Southern
Telecom Co.,
Ltd. v.
Shanghai
Yisheng
Intelligent Case Case not August 22,
63 No - ditto
Technology accepted settled 2024
Co., Ltd. and
Song Jia:
Case of the
Dispute over
the Sale
Contract
IX. Punishment and rectification
□Applicable Not applicable
The Company had no punishment or rectification during the reporting period.
X. Credit status of the Company, its controlling shareholder and actual controller
□Applicable Not applicable
XI. Major related party transactions
1. Related party transactions related to daily operations
Applicable □Not applicable
Amou
Pricin nt of Propo Appro Settle Avail
Whet
Type Conte g Price relate rtion ved ment able
her it
of nt of princi of d to the transa metho marke
excee Date
Relate relate relate ple of relate party amou ction d of t price Disclo
Relati ded of
d d d relate d transa nt of quota relate of sure
on the disclo
party party party d party ction simila (in d simila index
appro sure
transa transa party transa (in r 10,00 party r
ved
ction ction transa ction 10,00 transa 0 transa transa
quota
ction 0 ctions yuan) ction ctions
yuan)
CIE Anno
(Nanji unce
ng) Contr Purch ment
Electr olled asing on
Telec
onic by the goods Expec
ommu
Infor same and Bank April ted
nicati Marke 1,013. 1,013. 1,013.
matio ultima receiv 3.83% 6,000 No Transf 19, Routi
ons t price 36 36 36
n te ing er 2024 ne
produ
Devel contro labor Relate
cts
opme lling servic d
nt party es Party
Co., Trans
Ltd. action
59
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
s in
2024
releas
ed on
CNIN
FO
Nanji
ng
Contr Purch
Potevi
olled asing
o Telec
by the goods
Hony ommu
same and Bank April
ar nicati Marke
ultima receiv 19.79 19.79 0.07% No Transf 19.79 19, ditto
Electr ons t price
te ing er 2024
ical produ
contro labor
Techn cts
lling servic
ology
party es
Co.,
Ltd.
The
28th
Resea
Contr Sellin
rch
olled g
Institu Telec
by the goods
te of ommu
same and Bank April
China nicati Marke 1,057. 1,057. 1,057.
ultima provid 3.03% No Transf 19, ditto
Electr ons t price 17 17 17
te ing er 2024
onics produ
contro labor
Techn cts
lling servic
ology
party es
Group
Corpo
ration
Contr Sellin
olled g
Telec
Nanji by the goods
ommu
ng same and Bank April
nicati Marke 320.1 320.1 320.1
Lopu ultima provid 0.92% No Transf 19, ditto
ons t price 2 2 2
Co., te ing 10,00 er 2024
produ
Ltd. contro labor 0
cts
lling servic
party es
Contr Sellin
olled g
Glaru Telec
by the goods
n ommu
same and Bank April
Techn nicati Marke 308.0 308.0
ultima provid 308 0.88% No Transf 19, ditto
ology ons t price 0 0
te ing er 2024
Co., produ
contro labor
Ltd. cts
lling servic
party es
The Contr Sellin
14th olled g Telec
Resea by the goods ommu
Bank April
rch same and nicati Marke 267.7 267.7 267.7
0.77% No Transf 19, ditto
Institu ultima provid ons t price 2 2 2
er 2024
te of te ing produ
China contro labor cts
Electr lling servic
60
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
onics party es
Techn
ology
Group
Corpo
ration
Nanji
Contr Sellin
ng
olled g
LES
by the goods
Infor
same and Bank April
matio Labor Marke 121.9 121.9 121.9
ultima provid 0.35% No Transf 19, ditto
n cost t price 7 7 7
te ing er 2024
Techn
contro labor
ology
lling servic
Co.,
party es
Ltd.
Hebei
Far-
Contr Sellin
east
olled g
Com Telec
by the goods
munic ommu
same and Bank April
ation nicati Marke 104.9 104.9 104.9
ultima provid 0.30% No Transf 19, ditto
Syste ons t price 1 1 1
te ing er 2024
m produ
contro labor
Engin cts
lling servic
eering
party es
Co.,
Ltd.
Contr Sellin
Nanji
olled g
ng Telec
by the goods
Glawa ommu
same and Bank April
y nicati Marke
ultima provid 90.83 90.83 0.26% No Transf 90.83 19, ditto
Softw ons t price
te ing er 2024
are produ
contro labor
Co., cts
lling servic
Ltd.
party es
Nanji Contr Sellin
ng olled g
Telec
Meich by the goods
ommu
en same and Bank April
nicati Marke
Micro ultima provid 60.71 60.71 0.17% No Transf 60.71 19, ditto
ons t price
electr te ing er 2024
produ
onic contro labor
cts
Co., lling servic
Ltd. party es
Nanji
ng Contr Sellin
Rail olled g
Telec
Transi by the goods
ommu
t same and Bank April
nicati Marke
Syste ultima provid 36.51 36.51 0.10% No Transf 36.51 19, ditto
ons t price
m te ing er 2024
produ
Engin contro labor
cts
eering lling servic
Co., party es
Ltd.
Hangz Contr Sellin Telec Marke 29.67 29.67 0.09% No Bank 29.67 April ditto
61
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hou olled g ommu t price Transf 19,
Hony by the goods nicati er 2024
ar same and ons
Electr ultima provid produ
ical te ing cts
Co., contro labor
Ltd. lling servic
party es
Contr Sellin
Nanji olled g
Telec
ng by the goods
ommu
Lopu same and Bank April
nicati Marke
Techn ultima provid 25.84 25.84 0.07% No Transf 25.84 19, ditto
ons t price
ology te ing er 2024
produ
Co., contro labor
cts
Ltd. lling servic
party es
Nanji
Contr Sellin
ng
olled g
Glaru Telec
by the goods
n ommu
same and Bank April
Defen nicati Marke
ultima provid 15.84 15.84 0.05% No Transf 15.84 19, ditto
se ons t price
te ing er 2024
Syste produ
contro labor
m cts
lling servic
Co.,
party es
Ltd.
Contr Sellin
Easter olled g
Telec
n by the goods
ommu
Com same and Bank April
nicati Marke
munic ultima provid 12.81 12.81 0.04% No Transf 12.81 19, ditto
ons t price
ations te ing er 2024
produ
Co., contro labor
cts
Ltd. lling servic
party es
Tianb
o Contr Sellin
Electr olled g
Telec
onic by the goods
ommu
Infor same and Bank April
nicati Marke
matio ultima provid 11.13 11.13 0.03% No Transf 11.13 19, ditto
ons t price
n te ing er 2024
produ
Techn contro labor
cts
ology lling servic
Co., party es
Ltd.
The
48th Contr Sellin
Resea olled g
Telec
rch by the goods
ommu
Institu same and Bank April
nicati Marke
te of ultima provid 4.35 4.35 0.01% No Transf 4.35 19, ditto
ons t price
China te ing er 2024
produ
Electr contro labor
cts
onics lling servic
Techn party es
ology
62
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Group
Corpo
ration
Xinin
g
Branc
h
Office
of Contr Sellin
China olled g
Telec
Electr by the goods
ommu
onics same and Bank April
nicati Marke
Techn ultima provid 3.27 3.27 0.01% No Transf 3.27 19, ditto
ons t price
ology te ing er 2024
produ
Taili contro labor
cts
Com lling servic
munic party es
ation
Techn
ology
Co.,
Ltd.
Yinch
uan
Branc
h
Office
of Contr Sellin
China olled g
Telec
Electr by the goods
ommu
onics same and Bank April
nicati Marke
Techn ultima provid 3.27 3.27 0.01% No Transf 3.27 19, ditto
ons t price
ology te ing er 2024
produ
Taili contro labor
cts
Com lling servic
munic party es
ation
Techn
ology
Co.,
Ltd.
Contr
Rent
Potevi olled
and
o Hi- by the
Renti proper
tech same Bank April
ng ty Marke 23.81
Indust ultima 33.68 33.68 100 No Transf 33.68 19, ditto
proper mana t price %
ry te er 2024
ty geme
Co., contro
nt
Ltd. lling
fees
party
Contr
olled
Nanji
by the Leasi
ng Bank April
same ng Marke
Lopu Rent 19.76 19.76 3.33% 300 No Transf 19.76 19, ditto
ultima proper t price
Co., er 2024
te ty
Ltd.
contro
lling
63
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party
The
14th
Resea
Contr
rch
olled
Institu
by the
te of Leasi
same Bank April
China ng Marke 23.85
ultima Rent 141.4 141.4 No Transf 141.4 19, ditto
Electr proper t price %
te er 2024
onics ty
contro
Techn
lling
ology
party
Group
Corpo
ration
China
Contr
Potevi
olled
o
by the Intere
Infor
same st on Intere Bank April
matio Marke 27.81
ultima entrus st on 134.1 134.1 650 No Transf 134.1 19, ditto
n t price %
te ted loan er 2024
Indust
contro loan
ry
lling
Co.,
party
Ltd.
3,836. 17,05
Total -- -- -- -- -- -- -- --
21 0
Details of return of large sales Not applicable
The Company estimates that the total amount of routine related party transactions in 2024
does not exceed 170.5 million yuan, including no more than 60 million yuan for the
purchase of products and acceptance of labor services from related parties, no more than
100 million yuan for the sale of products and provision of labor services to related parties,
no more than 3 million yuan for the rental income from properties leased to related parties,
Actual performance during the
no more than 1 million yuan for the rent and property management services accepted for
reporting period (if any) for
properties leased from related parties, and no more than 6.5 million yuan for the interest
expected routine related party
paid on entrusted loans to related parties. During the first half of the year, the actual total
transactions during the period with
amount of routine related party transactions was 38.3621 million yuan, including 10.3315
estimated total amount by category
million yuan for the purchase of goods and acceptance of labor services, 24.7412 million
yuan for the sale of goods and provision of labor services, 336,800 yuan for rent and
property management fees, 1.6116 million yuan of rental income, and 1.341 million yuan
for interest paid on entrusted loans. The actual total amount did not exceed the amount
estimated at the beginning of the year.
Reasons for the large difference
between the transaction price and
Not applicable
the market reference price (if
applicable)
2. Related party transactions arising from the acquisition or sale of assets or equity
□Applicable Not applicable
During the reporting period, there were no related party transactions of assets or equity acquisition or sale.
3. Related party transactions involving joint external investment
□Applicable Not applicable
64
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
During the reporting period, there were no related party transactions involving joint external investment.
4. Related credits and debts
Applicable □Not applicable
Whether there were non-operating related party transactions involving creditor's rights and debts
□Yes No
During the reporting period, there was no non-operating related party transactions involving creditor's rights and debts.
5. Transactions with finance companies as related parties of the Company
Applicable □Not applicable
Deposit business
Amount in the current period
Maximum Total
Range of Opening Total deposit Closing
daily deposit withdrawal
Related party Relation deposit balance (in amount in balance (in
limit (in amount in
interest rate 10,000 yuan) the current 10,000 yuan)
10,000 yuan) the current
period (in
period (in
10,000 yuan)
10,000 yuan)
Other
CETC enterprises
Finance Co., controlled by 57,836.9 0.2% 5,309.89 44,570.96 44,685.31 5,771.24
Ltd. the actual
controller
Loan business
Amount in the current period
Total
Loan amount Range of Opening Total loan Closing
repayment
Related party Relation (in 10,000 loan interest balance (in amount in balance (in
amount in
yuan) rate 10,000 yuan) the current 10,000 yuan)
the current
period (in
period (in
10,000 yuan)
10,000 yuan)
Other
CETC enterprises
Finance Co., controlled by 5,500 3.8% 0 5,500 5,500
Ltd. the actual
controller
CETC CETC
Finance Co., Finance Co., 1,500 3.75% 0 1,500 1,500
Ltd. Ltd.
Credit granting or other financial business
Total amount (in Actual amount incurred
Related party Relation Business type
10,000 yuan) (in 10,000 yuan)
Other enterprises
CETC Finance Co.,
controlled by the actual Credit granting 7,000 7,000
Ltd.
controller
65
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
6. Transactions between the financial company controlled by the Company and related parties
□Applicable Not applicable
There was no deposit, loan, credit or other financial business between the financial company controlled by the Company and its
related parties.
7. Other major related party transactions
□Applicable Not applicable
There were no other major related party transactions during the reporting period.
XII. Major contracts and their performance
1. Trusteeship, contracting and leasing
(1) Trusteeship
□Applicable Not applicable
There was no trusteeship during the reporting period.
(2) Contracting
□Applicable Not applicable
There was no contracting during the reporting period.
(3) Leasing
Applicable □Not applicable
Description of leasing
During the reporting period, the Company and its subsidiaries incurred rental expenses of 1.4143 million yuan
and rental revenue of 5.9275 million yuan.
Items that brought profit or loss to the Company amounting to more than 10% of the total profit of the Company in the reporting
period
Applicable □Not applicable
Amount Influenc
involved Lease Determi e of Is it a
Status of of the Lease Expiry income nation lease related
Name of Name of
asset leased inceptio date of (in basis of income party Relation
lessor lessee
leased asset (in n the lease 10,000 lease on the transacti
10,000 yuan) income Compan on?
yuan) y
The 14th
Nanjing Research Controll
Putian Institute ed by the
Real Decemb Contract
Telecom of China May 1, Increase same
estate 601.2 er 31, 109.46 duly Yes
municati Electroni 2023 in profit actual
leasing 2027 signed
ons Co., cs controlle
Ltd. Technol r
ogy
66
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
Group
Corporat
ion
Nanjing Nanjing
Putian Chuangli
Telege u Real Contract
January January Increase
Intellige Industry estate 54.52 77.01 duly No -
20, 2020 19, 2025 in profit
nt and leasing signed
Building Trade
Ltd. Co., Ltd.
Nanjing
Nanjing
Infypow
Nanman Real Septemb Contract
er August Increase
Electrica estate 1,285.21 er 1, 152.38 duly No -
Technol 31, 2025 in profit
l Co., leasing 2022 signed
ogy Co.,
Ltd.
Ltd.
2. Material guarantees
□Applicable Not applicable
There was no material guarantee during the reporting period.
3. Entrusted financial management
□Applicable Not applicable
There was no entrusted financial management during the reporting period.
4. Other major contracts
□Applicable Not applicable
There were no other significant contracts during the reporting period.
XIII. Explanations of other major matters
Applicable □Not applicable
Date of
Name of matter (announcement) Related query index of the information disclosure website
disclosure
Announcement of the Resolutions of the 13th January
CNINFO (www.cninfo.com.cn)
Meeting of the 8th Board of Directors 16, 2024
January
Annual Performance Forecast for 2023 CNINFO (www.cninfo.com.cn)
31, 2024
Announcement on Winning the Bid for the Project January
CNINFO (www.cninfo.com.cn)
of Holding Subsidiary 31, 2024
Announcement of the Resolutions of the 14th April 19,
CNINFO (www.cninfo.com.cn)
Meeting of the 8th Board of Directors 2024
Announcement on Expected Routine Related Party April 19,
CNINFO (www.cninfo.com.cn)
Transactions in 2024 2024
Announcement of the Resolutions of the 15th April 27,
CNINFO (www.cninfo.com.cn)
Meeting of the 8th Board of Directors 2024
Announcement of the Resolutions of the 7th April 27,
CNINFO (www.cninfo.com.cn)
Meeting of the 8th Board of Supervisors 2024
Summary of the Annual Report for 2023 April 27, CNINFO (www.cninfo.com.cn)
67
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
2024
Announcement on Provision for Impairment of April 27,
CNINFO (www.cninfo.com.cn)
Assets in 2023 2024
Announcement on Expected Continuous Related
April 27,
Party Transactions with CETC Finance Co., Ltd. in CNINFO (www.cninfo.com.cn)
2024
2024
April 27,
Announcement on Engaging an Accounting Firm CNINFO (www.cninfo.com.cn)
2024
Notice on Convening the 2023 Annual General April 27,
CNINFO (www.cninfo.com.cn)
Meeting of Shareholders 2024
Supplementary Announcement on the Company's April 30,
CNINFO (www.cninfo.com.cn)
Summary of the Annual Report for 2023 2024
Announcement of the Resolutions of the 16th April 30,
CNINFO (www.cninfo.com.cn)
Meeting of the 8th Board of Directors 2024
April 30,
Report for the First Quarter of 2024 CNINFO (www.cninfo.com.cn)
2024
Announcement on Convening the 2023 Online May 17,
CNINFO (www.cninfo.com.cn)
Performance Briefing 2024
Announcement on Abnormal Stock Trading May 20,
CNINFO (www.cninfo.com.cn)
Fluctuations 2024
Announcement of the Board of Directors on the
Explanation of the Matters Concerning the Non- May 20,
CNINFO (www.cninfo.com.cn)
Submission of Shareholders' Temporary Proposals 2024
to the General Meeting of Shareholders for Review
Announcement on the Risk of the Company's May 21,
CNINFO (www.cninfo.com.cn)
Shares Being Delisted 2024
Announcement on Abnormal Stock Trading May 22,
CNINFO (www.cninfo.com.cn)
Fluctuations 2024
Announcement of the Resolutions of the 17th May 23,
CNINFO (www.cninfo.com.cn)
Meeting of the 8th Board of Directors 2024
Proposal on the repurchase of the Company's
May 23,
partial foreign shares listed in China (Class B CNINFO (www.cninfo.com.cn)
2024
shares) by centralized bidding
Notice on Convening the 1st Extraordinary General May 23,
CNINFO (www.cninfo.com.cn)
Meeting of Shareholders in 2024 2024
Announcement on the Shareholdings of the Top 10
Shareholders and the Top 10 Shareholders with May 28,
CNINFO (www.cninfo.com.cn)
Unlimited Tradable Shares regarding the 2024
Repurchase of Shares
Announcement of Resolution of 2023 Annual May 29,
CNINFO (www.cninfo.com.cn)
General Meeting of Shareholders 2024
Suggestive Announcement on Convening the June 6,
CNINFO (www.cninfo.com.cn)
Meeting of Investors 2024
Announcement on the Shareholdings of the Top 10
Shareholders and the Top 10 Shareholders with June 7,
CNINFO (www.cninfo.com.cn)
Unlimited Tradable Shares regarding the 2024
Repurchase of Shares
Announcement on the Risk of the Company's June 7,
CNINFO (www.cninfo.com.cn)
Shares Being Delisted 2024
Announcement of Resolution of the 1 st
June 12,
Extraordinary General Meeting of Shareholders in CNINFO (www.cninfo.com.cn)
2024
2024
June 12,
Repurchase Report CNINFO (www.cninfo.com.cn)
2024
Announcement on the 1st Repurchase of theJune 15,CNINFO (www.cninfo.com.cn)
68
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
Company's Shares 2024
XIV. Major matters of the Company's subsidiaries
□Applicable Not applicable
69
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Section VII Changes in Shares and Shareholders
I. Changes in shares
1. Changes in shares
Unit: share
Before the change Increase or decrease (+, -) in this change After the change
Conversio
Issue of n of
Proportio Share Proportio
Quantity new provident Others Subtotal Quantity
n offering n
shares fund into
shares
I.
Unlisted 115,000,0 115,000,0
53.49% 53.49%
tradable 00 00
shares
1.
115,000,0 115,000,0
Shares of 53.49% 53.49%
00 00
founders
Whe
re: Shares 115,000,0 115,000,0
53.49% 53.49%
held by 00 00
the state
Shar
es held by
domestic
legal
persons
Shar
es held by
overseas
legal
persons
Othe
rs
2.
Shares
held by
legal
persons
3.
Shares
held by
employee
s
4.
Preferred
shares or
other
70
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
II. Listed
100,000,0 100,000,0
tradable 46.51% 46.51%
00 00
shares
1.
Ordinary
shares in
Renminbi
2.
Foreign
100,000,0 100,000,0
shares 46.51% 46.51%
00 00
listed in
China
3.
Foreign
shares
listed
overseas
4.
Others
III. Total
215,000,0 215,000,0
number of 100.00% 100.00%
00 00
shares
Reasons for changes in shares
□Applicable Not applicable
Approval of share changes
□Applicable Not applicable
Transfer of shares
□Applicable Not applicable
Implementation progress of share repurchase
Applicable □Not applicable
1. The Proposal on the Repurchase of the Company's Partial Foreign Shares Listed in China (Class B
Shares) by Centralized Bidding was reviewed and approved respectively at the 17th Meeting of the 8th Board of
Directors held on May 22, 2024 and at the 1st Extraordinary General Meeting of Shareholders in 2024 on June
11. It was approved that the Company could use its own funds to repurchase part of its foreign shares (Class B
shares) listed in China by centralized bidding for selling them by centralized bidding. The total amount of funds
for this repurchase shall not be less than 1.5 million yuan (including the principal) and shall not be more than 3
million yuan (including the principal), and the repurchase price shall not exceed HKD 2.64 per share (including
the principal). The specific number of repurchased shares shall be based on the number of shares actually
repurchased when this repurchase is completed or the repurchase implementation period expires. The
repurchase period shall not exceed 3 months from the date when the share repurchase plan is reviewed and
approved at the Company's general meeting of shareholders and the Company completes the foreign exchange
purchasing in HKD. The company disclosed the Repurchase Report of Nanjing Putian Telecommunications Co.,
Ltd. (Announcement No.: 2024-030) on June 12.
2. The Company implemented its first share repurchase by centralized bidding on June 14, 2024 and
disclosed the Announcement of Nanjing Putian Telecommunications Co., Ltd. on the First Repurchase of the
Company's Shares (Announcement No.: 2024-031) on June 15, 2024.
71
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3. During the repurchase period, the Company disclosed the repurchase progress as of the end of the
previous month within the first three trading days of each month in accordance with relevant regulations. On
July 3, 2024, it disclosed the Announcement of Nanjing Putian Telecommunications Co., Ltd. on the Progress of
Repurchasing the Company's Shares (Announcement No.: 2024-032).
4. The Company's share repurchase plan was implemented as of July 17, 2024. The Company's actual
share repurchase period is from June 14, 2024 to July 17, 2024. The Company has repurchased a total of its
2,099,752 shares through a dedicated securities account for repurchase by centralized bidding, accounting for
0.98% of the Company's current total share capital. The highest transaction price was HK$1.69 per share, the
lowest transaction price was HK$1.37 per share, and the total transaction amount was HK$3.2174 million
(excluding transaction fees). According to the central parity rate of HKD to RMB of 1:0.91339 on July 12, 2024,
this was equivalent to approximately 2.9387 million yuan (excluding transaction fees). The Company disclosed
the Announcement on the Implementation Results of the Repurchase of the Company's Shares and Share
Changes (Announcement No.: 2024-036) on July 18, 2024.
Implementation progress of reducing repurchased shares by centralized bidding
□Applicable Not applicable
Effect of share changes on financial indicators such as basic and diluted earnings per share and net assets per share attributable to
ordinary shareholders of the Company for the most recent year and the most recent period
□Applicable Not applicable
Other contents that the Company deems necessary to be disclosed or required to be disclosed by the securities regulatory authority
□Applicable Not applicable
2. Changes in restricted shares
□Applicable Not applicable
II. Issuance and listing of securities
□Applicable Not applicable
III. Number and shareholding of shareholders of the Company
Unit: share
Total number of preferred
shareholders whose voting
Total number of common
rights were restored at the
shareholders at the end of 7,222 0
end of the reporting
the reporting period
period (if any) (see Note
8)
Shareholders holding more than 5% of common shares or the top 10 shareholders of common shares (excluding shares lent out
through refinancing)
Number of Pledge, marking or
common Increase or Number of Number of freezing
shares held decrease unlisted listed and
Name of Type of Shareholdi
at the end during the tradable tradable
shareholder shareholder ng ratio Shares
of the reporting common common Quantity
reporting period shares held shares held status
period
72
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CETC State-
Glarun owned 115,000,00 115,000,00 Not
53.49% 0 0 0
Group Co., legal 0 0 applicable
Ltd. person
Natural
3,225,200.0 3,225,200.0 Not
He Wei person in 1.50% 120,600 0 0
0 0 applicable
China
Shenwan
Overseas
Hongyuan 2,903,288.0 2,903,288.0 Not
legal 1.35% -2,573,500 0 0
Securities 0 0 applicable
person
(H.K.) Ltd.
Natural
Zheng 2,449,739.0 2,449,739.0 Not
person in 1.14% 0 0 0
Enyue 0 0 applicable
China
Natural
1,871,371.0 1,871,371.0 Not
Gu Jinhua person in 0.87% 0 0 0
0 0 applicable
China
Natural
1,425,273.0 1,425,273.0 1,425,273.0 Not
Liu Lijun person in 0.66% 0 0
0 0 0 applicable
China
GUOTAI
JUNAN
Overseas
SECURITI 1,384,258.0 1,384,258.0 Not
legal 0.64% -1,363,539 0 0
ES (HONG 0 0 applicable
person
KONG)
LIMITED
Natural
Sun 1,330,000.0 1,330,000.0 Not
person in 0.62% -692,200 0 0
Huiming 0 0 applicable
China
Natural
Li 1,169,520.0 1,169,520.0 Not
person in 0.54% 700 0 0
Mingling 0 0 applicable
China
Natural
Zhen 1,119,200.0 1,119,200.0 Not
person in 0.52% 108,300 0 0
Hongquan 0 0 applicable
China
Strategic investors or
general legal entities
becoming top 10 common
shareholders as a result of None
the placement of new
shares (if any) (see Note
3)
Description of the above-
Among the top 10 shareholders, CETC Glarun Group Co., Ltd. was not related to other shareholders
mentioned shareholders'
and was not a party acting in concert. The Company did not know whether other shareholders were
association or concerted
related to each other or were parties acting in concert.
actions
Explanation of the above
shareholders' involvement
in proxy/entrusted voting Not involved
rights and abstention from
voting rights
Special note on the
existence of repurchase
special accounts of the top None
10 shareholders (if any)
(see Note 11)
73
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
Shareholding of the top 10 common shareholders of tradable shares (excluding shares lent out through refinancing and locked-up
shares for senior executives)
Type of shares
Number of listed and tradable common shares held at the end of the
Name of shareholder Type of
reporting period Quantity
shares
Domestic
listed
He Wei 3,225,200 3,225,200
foreign
shares
Domestic
Shenwan Hongyuan listed
2,903,288 2,903,288
Securities (H.K.) Ltd. foreign
shares
Domestic
listed
Zheng Enyue 2,449,739 2,449,739
foreign
shares
Domestic
listed
Gu Jinhua 1,871,371 1,871,371
foreign
shares
Domestic
listed
Liu Lijun 1,425,273 1,425,273
foreign
shares
Domestic
GUOTAI JUNAN
listed
SECURITIES (HONG 1,384,258 1,384,258
foreign
KONG) LIMITED
shares
Domestic
listed
Sun Huiming 1,330,000 1,330,000
foreign
shares
Domestic
listed
Li Mingling 1,169,520 1,169,520
foreign
shares
Domestic
listed
Zhen Hongquan 1,119,200 1,119,200
foreign
shares
Dedicated securities
Domestic
account for repurchase of
listed
Nanjing Putian 996,752 996,752
foreign
Telecommunications Co.,
shares
Ltd.
Description of the
relationship or concerted
action among the top 10
common shareholders
with unlimited tradable The Company did not know whether the shareholders above were related to each other or were
shares, and between the parties acting in concert.
top 10 common
shareholders with
unlimited tradable shares
and the top 10 common
74
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
shareholders
Description of the
participation of the top 10
common shareholders in
None
margin financing and
securities lending business
(if any) (see Note 4)
Participation of the shareholders holding more than 5% of shares, the top 10 shareholders, and the top 10 shareholders with
unlimited tradable shares in share lending business through refinancing
□Applicable Not applicable
Changes compared to the previous period due to lending/return through refinancing made by the top 10 shareholders and the top
10 shareholders with unlimited tradable shares
□Applicable Not applicable
Whether the Company's top 10 ordinary shareholders and top 10 shareholders holding ordinary shares with unlimited selling
conditions entered into agreed repurchase transactions during the reporting period
□Yes No
The top 10 ordinary shareholders of the Company and the top 10 shareholders holding ordinary shares with unlimited selling
conditions did not conduct agreed repurchase transactions during the reporting period.
IV. Changes in shareholdings of directors, supervisors and senior executives
□Applicable Not applicable
The shareholdings of directors, supervisors and senior executives of the Company did not change during the reporting period. For
details, please refer to the Annual Report for 2023.
V. Change of controlling shareholder or actual controller
Changes of controlling shareholder during the reporting period
□Applicable Not applicable
The controlling controller of the Company was not changed during the reporting period.
Change of actual controller during the reporting period
□Applicable Not applicable
The actual controller of the Company was not changed during the reporting period.
75
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Section VIII Information on Preferred Shares
□Applicable Not applicable
The Company had no preferred shares during the reporting period.
76
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Section IX Information on Bonds
□Applicable Not applicable
77
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Section X Financial Report
1、 Audit report
Has the semi annual report been audited
□ Yes □ No
The company's semi annual financial report has not been audited.
2、 Financial statements
The unit of the financial statements in the financial notes is: yuan
Consolidated balance sheet
Preparation unit ：Nanjing Putian Telecommunications Co., Ltd. 2024/6/30 Unit ：RMB
Item Notes 2024/6/30 2023/12/31
Current assets：
Cash and bank balances V(1) 80,099,622.26 178,290,844.21
Held-for-trading financial assets
Derivative financial assets
Notes receivable V(2) 11,303,605.74 23,492,416.53
Accounts receivable V(3) 399,014,754.35 301,618,359.27
Receivables financing V(4) 13,936,406.72 32,347,277.62
Advances paid V(5) 11,730,599.50 10,184,683.74
Other receivable V(6) 10,698,400.93 8,103,021.44
Including: Interest receivable
dividend receivable
Inventories V(7) 154,146,538.62 122,698,778.26
Contract assets
assets hold available for sale
Non-current assets due within one year
Other current assets V(8) 4,363,941.46 3,490,759.90
Total current assets 685,293,869.58 680,226,140.97
Non-current assets：
Debt investment
Other debt investment
Long-term receivable
Long-term equity investments V(9) 10,412,622.64 10,412,689.14
Other equity instrument investments V(10) 741,953.00 741,953.00
Other non-current financial assets
Investment property V(11) 18,514,998.08 19,127,078.75
Fixed assets V(12) 90,478,775.60 93,754,100.19
Construction in progress V(13) 5,906.53
Productive biological assets
78
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
Oil and gas asset
Right-of-use asset V(14) 2,578,097.20
Intangible assets V(15) 19,234,426.95 19,632,871.51
Development expenditure
Goodwill
Long-term prepayments V(16) 2,237,526.68 2,299,773.18
Deferred tax assets V(17)
Other non-current assets V(18) 40,899.00
Total non-current assets 144,198,400.15 146,015,271.30
Total assets 829,492,269.73 826,241,412.27
Legal Representative: Accounting Director: Accounting Manager:
Consolidated balance sheet (continued)
Preparation unit ：Nanjing Putian Telecommunications Co., Ltd. 2024/6/30 Unit ：RMB
Item Notes 2024/6/30 2023/ 12/31
Current liabilities：
Short-term borrowings V(20) 106,710,779.97 69,863,323.93
Transactional financial liabilities
Derivative financial liabilities
Notes payable V(21) 10,690,762.40 9,662,303.80
Accounts payable V(22) 374,729,907.64 397,593,766.27
Advances received V(23) 452,216.54
Contract liabilities V(24) 14,916,159.30 16,720,781.30
Employee benefits payable V(25) 17,426,260.14 17,771,367.37
Taxes payable V(26) 1,518,627.19 5,630,992.31
Other payable V(27) 47,119,742.53
54,635,494.39
Including: Interest payable
dividend payable
10,846,600.00 5,692,213.38
Liability hold for sale
Non-current liabilities due within one year
Other current liabilities V(28) 2,556,964.72 1,595,107.01
Total current liability 583,184,955.75 566,409,601.06
Non-current liability：
Long-term borrowings V(29) 175,992,705.56 176,011,976.11
Bonds payable
Including: preferred shares
Perpetual bond
Lease liability V(30) 2,431,482.73
Long-term payable
Long-term employee compensation payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liability
Total non-current liability 178,424,188.29 176,011,976.11
79
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
Total liability 761,609,144.04 742,421,577.17
Owners' equity (or shareholders' equity):
Share capital V(31) 215,000,000.00 215,000,000.00
Other equity instrument
Including: preferred shares
Perpetual bond
Capital reserve V(32) 197,955,867.58 197,097,915.40
Less: treasury stocks V(33) 1,425,412.05
Other comprehensive income (OCI) V(34) -1,854,910.00 -1,854,910.00
Special reserves
Surplus reserve V(35) 589,559.77 589,559.77
Undistributed profit V(36) -415,179,117.05 -405,721,306.51
Total owner's equity (or shareholders' equity) attributable to
the parent company -4,914,011.75 5,111,258.66
Minority shareholders' equity 72,797,137.44 78,708,576.44
Total owner's equity (or shareholders' equity) 67883125.69 83,819,835.10
Total liabilities and owners’ equity (or shareholders’ equity) 829,492,269.73 826,241,412.27
Legal Representative: Accounting Director: Accounting Manager:
Parent Company Balance Sheet
Preparation unit ：Nanjing Putian Telecommunications Co., Ltd 2024/6/30 Unit ：RMB
Item Notes 2024/6/30 2023/12/31
Current assets：
Cash and bank balances 9,073,809.54 15,685,815.50
Held-for-trading financial assets
Derivative financial assets
Notes receivable 2,045,675.28
Accounts receivable XV(1) 76,216,324.99 80,514,189.85
Receivables financing
604,487.01
Advances paid
5,814,171.19 4,718,011.44
Other receivable XV(2) 39,177,577.90 40,140,274.42
Including: Interest receivable
dividend receivable 24,553,400.00 19,400,000.00
Inventories 38,480,038.63 27,685,200.60
Contract assets
assets hold available for sale
Non-current assets due within one year
Other current assets 248,985.94 141,091.78
Total current assets 171,661,070.48 168,884,583.59
Non-current assets：
Debt investment
80
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
Other debt investment
Long-term receivable
Long-term equity investments XV(3) 112,786,040.87 112,786,107.37
Other equity instrument investment
741,953.00 741,953.00
Other non-current financial assets
Investment property
Fixed assets 37,442,650.11 38,937,536.51
Construction in progress
Productive biological assets
Oil and gas asset
Right-of-use asset
2,578,097.20
Intangible assets
4,086,492.88 4,149,201.22
Development expenditure
Goodwill
Long-term prepayments 1,505,070.18 1,570,049.02
Deferred tax assets
Other non-current assets
Total non-current assets 159,140,304.24 158,184,847.12
Total assets 330,801,374.72 327,069,430.71
Legal Representative: Accounting Director: Accounting Manager:
Parent Company Balance Sheet (Continued)
Preparation unit ：Nanjing Putian Telecommunications Co., L 2024/6/30 Unit ：RMB
Item Notes 2024/6/30 2023/ 12/31
Current liabilities：
Short-term borrowings 12,598,815.98
Transactional financial liabilities
Derivative financial liabilities
Notes payable 12,004,792.00 10,576,746.00
Accounts payable
121,032,653.26 116,563,709.64
Advances received
Contract liabilities 7,360,575.04 7,634,483.45
Employee benefits payable 7,765,956.66 7,930,452.05
Taxes payable 29,499.75 661,283.29
Other payables 112,186,371.81 116,985,431.73
Including: Interest payable
dividend payable
Liability hold for sale
Non-current liabilities due within one year
Other current liabilities 1,804,456.82 992,482.85
81
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Total current liability 274,783,121.32 261,344,589.01
Non-current liability：
Long-term borrowings 175,992,705.56 176,011,976.11
Bonds payable
Including: preferred shares
Perpetual bond
Lease liability
2,431,482.73
Long-term payable
Long-term employee compensation payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liability
Total non-current liability 178,424,188.29 176,011,976.11
Total liability 453,207,309.61 437,356,565.12
Owners' equity (or shareholders' equity):
Share capital
215,000,000.00 215,000,000.00
Other equity instrument
Including: preferred shares
Perpetual bond
Capital reserve
158,864,042.34 158,864,042.34
Less: treasury stocks
1,425,412.05
Other comprehensive income (OCI)
-1,854,910.00 -1,854,910.00
Special reserves
Surplus reserve
589,559.76 589,559.76
Undistributed profit
-493,579,214.94 -482,885,826.51
Total owner's equity (or shareholders' equity) -122,405,934.89 -110,287,134.41
Total liabilities and owners ’ equity (or shareholders ’
330,801,374.72 327,069,430.71
equity)
Legal Representative: Accounting Director: Accounting Manager:
Consolidated Income Statement
Preparation unit ：Nanjing Putian Telecommunications Co., Ltd. Year 2024 Unit ：RMB
Current period Preceding period
Item Notes cumulative comparative
I. Operating revenue V(37) 348,986,240.92 392,539,877.69
Less：Operating cost V(37) 264,438,748.73 303,199,007.67
Taxes and surcharges V(38) 2,113,711.82 2,187,649.69
Selling expenses V(39) 40,232,841.74 40,563,329.57
Administrative expenses V(40) 30,517,683.59 32,677,949.24
R&D expenses V(41) 17,847,218.56 19,422,168.02
Financial expenses V(42) 4,303,168.64 3,758,865.48
Including:Interst expense 4,822,731.40 4,046,684.70
Interst income 549,603.32 309,650.00
Add: other income V(43) 2,249,238.87 1,863,644.38
Investment income (losses are listed with "-") V(44) 1,025,849.52 242,664.28
Including: investment income from associates and joint ventures -66.50 -9,717.35
Derecognition income of financial assets measured at amortized cost
82
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Net exposure hedging gain (loss are listed with "-")
Gains from changes in fair value (losses are listed with "-")
Credit impairment loss (losses are listed with "-") V(45) 1,966,859.78 2,379,378.23
Assets impairment loss(losses are listed with "-" ) V(46) -302,366.42 -46,540.00
Gain on assets disposal (loss are listed with "-") V(47) -468.86 42,412.44
II. Operating profit（loss show as “- ) -5,528,019.27 -4,787,532.65
Plus: non-operating revenue V(48) 2,341,968.45 75,760.00
Less: non-operating expenditures V(49) 800,754.99 827,499.78
III. Total profit (total loss is listed with "- ") -3,986,805.81 -5,539,272.43
Deduct: income tax expense V(50) 1,370,104.91 511,674.73
IV. Net profit (net loss is listed with "-") -5,356,910.72 -6,050,947.16
( 1) Classified by business continuity:
1.Net profits from continuing operations -5,356,910.72 -6,050,947.16
2.Discontinued operating net profit
(2) Classified by ownership:
1.Net profits belong to the parent company's owner -9,457,810.54 -10,961,896.92
2.Minority shareholder gains and losses 4,100,899.82 4,910,949.76
V. Net after-tax of other comprehensive income
( 1) Net after-tax amount of other comprehensive income attributable to owners of the
parent company
1) Other comprehensive income that cannot be reclassified into profit and loss
1.Re-measurement of changes in defined benefit plans
2. Other comprehensive income that cannot be transferred to profit or loss under
the equity method
3.Changes in the fair value of other equity instrument investments
4.Changes in fair value of the enterprise's own credit risk
2) Other comprehensive income that will be reclassified into profit and loss
1.Other comprehensive income that can be converted to profit or loss under the equity
method
2.Changes in the fair value of other debt investments
3.Amount of financial assets reclassified and included in other comprehensive
income
4.Other debt investment credit impairment reserves
5.Cash flow hedge reserve (the effective part of cash flow hedge gains and losses)
6.Translation difference of foreign currency financial statements
7.Other
(2) Net after-tax amount of other comprehensive income attributable to minority
shareholders
VI. Total comprehensive income -5,356,910.72 -6,050,947.16
( 1) Total comprehensive income attributable to owners of the parent
-9,457,810.54 -10,961,896.92
(2) Total comprehensive income attributable to minority shareholders
4,100,899.82 4,910,949.76
VII. Earnings per share
( 1) Basic earnings per share
-0.04 -0.05
(2) Diluted earnings per share -0.04 -0.05
Legal Representative: Accounting Director:- 5 - Accounting Manager:
Parent company income statement
Preparation unit ：Nanjing Putian Telecommunications Co., Ltd. Year 2024 Unit ：RMB
Current Preceding
Item Notes period period
cumulative comparative
I. Operating revenue XV(4) 11,828,284.34 46,221,763.63
83
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Less： Operating cost XV(4) 10,933,095.56 41,284,386.04
Taxes and surcharges 447,585.48 309,414.84
Selling expenses 3,556,132.99 5,379,918.10
Administrative expenses 15,861,196.24 17,481,142.62
R& D expenses 976,403.00
-
Financial expenses 3,277,034.82 2,571,625.34
Including:Interst expense 3,581,025.35 3,020,247.03
Interst income 307,940.40 443,798.48
Add: other income 9,574.65
Investment income (losses are listed with "-") XV(5) 9,725,216.13 242,664.28
Including: investment income from associates and joint ventures -66.50 -9,717.35
Derecognition income of financial assets measured at amortized cost
Net exposure hedging gain (loss are listed with "-")
Gains from changes in fair value (losses are listed with "-")
Credit impairment loss (losses are listed with "-") 2,063,316.07 2,694,169.71
Assets impairment loss(losses are listed with "-")
Gain on assets disposal (loss are listed with "-")
II. Operating profit（ loss show as “ - ) -10,448,653.90 -18,844,292.32
Plus: non-operating revenue
550,000.00 51,484.34
Less: non-operating expenditures
794,734.53 724,961.41
III. Total profit (total loss is listed with "-") -10,693,388.43 -19,517,769.39
Deduct: income tax expense
IV. Net profit (net loss is listed with "-") -10,693,388.43 -19,517,769.39
( 1) Net profits from continuing operations
-10,693,388.43 -19,517,769.39
(2) Discontinued operating net profit
V.Other comprehensive income net of tax
( 1) Comprehensive income not to be reclassified to profit or loss
1. Changes in remeasurement of defined benefit obligations
2. Other comprehensive income not to be reclassified to profit or loss in equity
method
3. Fair value changes in other equity instrument investments
4. Fair value changes in the enterprise's own credit risk
(2) Comprehensive income to be reclassified to profit or loss
1. Other comprehensive income to be reclassified to profit or loss in equity
method
2. Gain or loss from fair value changes of other debt instruments
3.Amount of financial assets reclassified and included in other comprehensive
income
4. Credit impairment provision of other debt investment
5.Cash flow hedge reserve (the effective part of cash flow hedge gains and
losses)
6.Translation difference of foreign currency financial statements
7.Other
VI. Total comprehensive income -10,693,388.43 -19,517,769.39
VII. Earnings per share:
Legal Representative: Accounting Director: Accounting Manager:
Consolidated statement of cash flow
Preparation unit ：Nanjing Putian Telecommunications Co., Ltd. Year 2024 Unit ：RMB
84
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Current period Preceding period
Item Notes cumulative comparative
I. Cash flow from operating activities:
Cash received from the sale of goods and the provision of labor services 269,086,459.85 344,684,450.45
Tax Refund 1,836,129.29 1,058,502.26
Other cash received relating to operating activities Ⅴ（45） 25,446,241.95 29,110,786.49
Subtotal of cash inflow from operating activities 296,368,831.09 374,853,739.20
Cash paid for purchasing goods and receiving labor services
276,072,192.10 305,450,019.65
Cash paid to and for employees
75,097,064.11 84,102,978.32
Various taxes and fees paid 17,516,542.04 21,714,122.39
Other cash payments related to operating activities Ⅴ（45） 49,903,043.75 49,669,102.31
Subtotal of cash outflows from operating activities 418,588,842.00 460,936,222.67
Net cash flow from operating activities -122,220,010.91 -86,082,483.47
II. Cash flow from investment activities:
Cash received from investment
Cash received from investment income
Net cash received from the disposal of fixed assets, intangible assets and
other long-term assets 40.00 2,800.00
Net cash received from disposal of subsidiaries and other business units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 40.00 2,800.00
Cash paid for the purchase and construction of fixed assets, intangible
assets and other long-term assets 584,433.24 1,413,975.50
Cash Investment
Net cash paid for acquiring subsidiaries and other business units
Other cash paid relating to investing activities
Subtotal of cash outflows from investing activities 584,433.24 1,413,975.50
Net cash flows from investing activities -584,393.24 -1,411,175.50
III. Cash flow from financing activities:
Absorb cash received from investment
Including: cash received by the subsidiary from absorbing minority
shareholders' investment
Cash received from borrowing
83,379,556.02 133,000,000.00
Other cash receipts related to financing activities Ⅴ（45） 25,555.55
Subtotal of cash inflows from financing activities 83,379,556.02 133,025,555.55
Cash paid for debt repayment 46,500,000.00 83,800,000.00
Cash paid for dividends, profits, or interest payments 4,212,938.59
8,540,842.08
Including: dividends and profits paid by subsidiaries to minority
shareholders 4,000,000.00
Other cash payments related to financing activities Ⅴ（45） 1,601,401.52
Subtotal of cash outflows from financing activities 56,642,243.60 88,012,938.59
Net cash flow from financing activities 26,737,312.42 45,012,616.96
IV. The impact of exchange rate changes on cash and cash equivalents 33,020.09
V. Net increase in cash and cash equivalents -96,067,091.73 -42,448,021.92
Add: the balance of cash and cash equivalents at the beginning ofthe period
164,177,680.11 164,384,741.39
85
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
VI. Balance of cash and cash equivalents at the end of the period 68,110,588.38 121,936,719.47
Legal Representative: Accounting Director: Accounting Manager:
Statement of cash flow ofParent Co.
Preparation unit ：Nanjing Putian Telecommunications Co., Ltd. Year 2024 Unit ：RMB
Current period Preceding period
Item Notes cumulative comparative
I. Cash flow from operating activities:
Cash received from the sale ofgoods and the provision of labor
services 22,839,599.20 53,393,029.32
Tax Refund
Other cash received relating to operating activities 14,690,330.97 7,684,967.30
Subtotal of cash inflow from operating activities 37,529,930.17 61,077,996.62
Cash paid for purchasing goods and receiving labor services 25,124,753.52 59,935,029.03
Cash paid to and for employees 18,992,397.84 24,812,074.81
Various taxes and fees paid 1,908,834.65 2,568,854.79
Other cash payments related to operating activities 8,687,235.59 9,918,806.22
Subtotal of cash outflows from operating activities 54,713,221.60 97,234,764.85
Net cash flow from operating activities -17,183,291.43 -36,156,768.23
II. Cash flow from investment activities:
Cash received from investment
Cash received from investment income 4,000,000.00
Net cash received from the disposal of fixed assets, intangible assets
and other long-term assets 2,800.00
Net cash received from disposal of subsidiaries and other business units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 4,000,000.00 2,800.00
Cash paid for the purchase and construction of fixed assets, intangible
assets and other long-term assets 164,195.40 392,200.00
Cash Investment
Net cash paid for acquiring subsidiaries and other business units
Other cash paid relating to investing activities
Subtotal of cash outflows from investing activities 164,195.40 392,200.00
Net cash flows from investing activities 3,835,804.60 -389,400.00
III. Cash flow from financing activities:
Absorb cash received from investment
Cash received from borrowing 12,579,556.02 110,000,000.00
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities 12,579,556.02 110,000,000.00
Cash paid for debt repayment
90,000,000.00
Cash paid for dividends, profits, or interest payments
3,358,806.97 2,723,383.89
Other cash payments related to financing activities
1,601,401.52
Subtotal of cash outflows from financing activities 4,960,208.49 92,723,383.89
Net cash flow from financing activities 7,619,347.53 17,276,616.11
IV. The impact of exchange rate changes on cash and cash equivalents 33,020.09
86
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V. Net increase in cash and cash equivalents -5,728,139.30 -19,236,532.03
Add: the balance of cash and cash equivalents at the beginning of the
13,359,279.92 23,782,731.06
i d
VI. B alance of cash and cash equivalents at the end of the period 7,631,140.62 4,546,199.03
Legal Representative: Accounting Director: Accounting Manager:
Consolidated statement of change of equity
Preparation unit ：Nanjing Putian Telecommunications Co., Ltd. Year 2024 Unit ：RMB
Current period
Equity attributable to parent company
Item Other equity Othe Minori
Paid-in S S Total
instruments Capital Less: r undistribute Subtot ty
capital (or pe ur owner's
Preferred Perpetual reserve treas comprehe d profit al shareholders'
equity) othe ury ci pl equity
stock bond nsive equity
r stoc al us
incom
ks re re
e
se se
rv rv
es e
I. Balance at the end of the 215,000, 197,097 - 589,559. - 5,111,258.6 78,708,576. 83,819,835.
previous year 000.00 ,915.40 1,854,9 77 405,721,3 6 44 10
10.00 06.51
Add: Accounting policy changes
Correction ofprevious errors
Merger of enterprises under
the same control
Others
II. Balance at the beginning of 215,000, 197,097 - 589,559. - 5,111,258.6 78,708,576. 83,819,835.
the year 000.00 ,915.40 1,854,9 77 405,721,3 6 44 10
10.00 06.51
III. The amount of increase
or decrease in this year 857 1,425,4 - - - -
(decrease is listed with "-") ,95 12.05 9,457,810.5 10,025,270 5,911,439.0 15,936,709.
2.1 4 .41 0 41
8
(1) Total comprehensive income - - 4,100,899.8 -
9,457,810.5 9,457,810. 2 5,356,910.7
4 54 2
(2) Owner's investment and 857 1,425,4 - 834,261.18 266,801.31
reduction of capital ,95 12.05 567,459.87
2.1
8
1. Ordinary shares invested by
the owner
2. Capital invested by
holders of other equity
instruments
3. The amount of share-based
payment included in owner's
equity
4. Other 857 1,425,4 - 834,261.18 266,801.31
,95 12.05 567,459.87
2.1
8
(3) Profit distribution - -
10,846,600. 10,846,600.
00 00
1. Withdraw surplus reserve
2. Distribution to owners (or - -
shareholders) 10,846,600. 10,846,600.
00 00
3. Others
(4) Internal transfer of owners'
equity
1. Conversion of capital
reserve into capital (or share
capital)
2. Conversion of surplus
reserves into capital (or equity)
3. Surplus reserves make up for
losses
87
Full Text of the Semi-annual Report for 2024 of Nanjing Putian Telecommunications Co., Ltd.
4. Carryover of retained
earnings from changes in the
defined benefit plan
5. Other comprehensive
income carried forward to
retained earnings
6. Other
(5) Special reserve
1. Withdraw special reserves
2. Use special reserves
(6) Others
IV. Balance at the end of the 215,000, 197,955 1,425,4 - 589,559. - - 72,797,137. 67,883,125.
period 000.00 ,867.58 12.05 1,854,9 77 415,179,1 4,914,011. 44 69
10.00 17.05 75
Legal Representative: Accounting Director: Accounting
Manager:
Consolidated statement of change of equity(Continued)
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. Year 2023 Unit：RMB
Preceding period
Equity attributable to parent company
Item Minori
Paid-in Other equity Othe Total
Less: S ty
instruments Capital r Surplus undistribute Subtot owner's
capital (or treas pe shareholders'
reserve comprehe reserve d profit al equity
equity) Preferred Perpetual oth ury ci equity
nsive
stock bond er stoc al
incom
ks e re
se
rv
es
I. Balance at the end of the 215,000,000. 197,097,915. - 589,559.7 - 21,995,336.2 78,839,319.6 100,834,655.
previous year 00 40 1,854,910. 7 388,837,228 8 2 90
00 .89
Add: Accounting policy changes
Correction ofprevious errors
Merger of enterprises under
the same control
Others
II. Balance at the beginning of 215,000,000. 197,097,915. - 589,559.7 - 21,995,336.2 78,839,319.6 100,834,655.
the year 00 40 1,854,910. 7 388,837,228 8 2 90
00 .89
III. The amount of increase
or decrease in this year - - 4,910,949.76 -
(decrease is listed with "-") 10,961,896. 10,961,896.9 6,050,947.1
92 2 6
(1) Total comprehensive income - - 4,910,949.76 -
10,961,896. 10,961,896.9 6,050,947.1
92 2 6
(2) Owner's investment and
reduction of capital
1. Ordinary shares invested by
the owner
2. Capital invested by
holders of other equity
instruments
3. The amount of share-based
payment included in owner's
equity
4. Other
(3) Profit distribution
1. Withdraw surplus reserve
2. Distribution to owners (or
shareholders)
3. Others
(4) Internal transfer of owners'
equity
1. Conversion of capital
reserve into capital (or share
capital)
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2. Conversion of surplus
reserves into capital (or equity)
3. Surplus reserves make up for
losses
4. Carryover of retained
earnings from changes in the
defined benefit plan
5. Other comprehensive
income carried forward to
retained earnings
6. Other
(5) Special reserve
1. Withdraw special reserves
2. Use special reserves
(6) Others
IV. Balance at the end of the 215,000,000. 197,097,915. - 589,559.7 - 11,033,439.3 83,750,269.3 94,783,708.
period 00 40 1,854,910. 7 399,799,125 6 8 74
00 .81
Legal Representative: Accounting Director: Accounting Manager:
Consolidated statement of change of equity of Parent Co.
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. Year 20 24 Unit：RMB
Current period
Item Other equity Othe
Paid-in Less:
instruments Capital r Special Surplus undistribute Total owner's
capital (or trea
reserve comprehe reserves reserve d profit equity
equity) Preferred Perpetual othe sur nsive
stock bond r y incom
sto e
cks
I. Balance at the end of the 215,000,000. 158,864,042. - 589,559.76 - -
previous year 00 34 1,854,910. 482,885,826. 110,287,134.4
00 51 1
Add: Accounting policy changes
Correction ofprevious errors
Others
II. Balance at the beginning of 215,000,000. 158,864,042. - 589,559.76 - -
the year 00 34 1,854,910. 482,885,826. 110,287,134.4
00 51 1
III. The amount of increase
or decrease in this year 1,425,412. - -
(decrease is listed with "-") 05 10,693,388.4 12,118,800.48
3
(1) Total comprehensive income - -
10,693,388.4 10,693,388.43
3
(2) Owner's investment and 1,425,412. -1,425,412.05
reduction of capital 05
1. Ordinary shares invested by
the owner
2. Capital invested by
holders of other equity
instruments
3. The amount of share-based
payment included in owner's
equity
4. Other 1,425,412. -1,425,412.05
05
(3) Profit distribution
1. Withdraw surplus reserve
2. Distribution to owners (or
shareholders)
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3. Others
(4) Internal transfer of owners'
equity
1. Conversion of capital
reserve into capital (or share
capital)
2. Conversion of surplus
reserves into capital (or equity)
3. Surplus reserves make up for
losses
4. Carryover of retained
earnings from changes in the
defined benefit plan
5. Other comprehensive income
carried forward to retained
earnings
6. Other
(5) Special reserve
1. Withdraw special reserves
2. Use special reserves
(6) Others
IV. Balance at the end of the 215,000,000. 158,864,042. 1,425,412. - 589,559.76 - -
period 00 34 05 1,854,910. 493,579,214. 122,405,934.8
00 94 9
Legal Representative: Accounting Director: Accounting Manager:
Consolidated statement of change of equity of Parent Co.(Continued)
Preparation unit ： Nanjing Putian Telecommunications Co., Ltd. Year 202 3 Unit ：RMB
Preceding period
Item Paid-in Other equity Other
Capital Less: Special Surplus undistributed Total owner's
capita instruments comprehen
reserve trea reserves reserve profit equity
l (or Preferred Perpetual othe sury i sive
equity stock bond r stoc
) ks
I. Balance at the end of the 215,000,00 158,864, - 589,559.76 - -
previous year 0.00 042.34 1,854,91 471,010,021.2 98,411,329.15
0.00 5
Add: Accounting policy changes
Correction of previous errors
Others
II. Balance at the beginning of the 215,000,00 158,864, - 589,559.76 - -
year 0.00 042.34 1,854,91 471,010,021.2 98,411,329.15
0.00 5
III. The amount of increase
or decrease in this year - -
(decrease is listed with "-") 19,517,769.39 19,517,769.39
(1) Total comprehensive income - -
19,517,769.39 19,517,769.39
(2) Owner's investment and
reduction of capital
1. Ordinary shares invested by
the owner
2. Capital invested by
holders of other equity
instruments
3. The amount of share-based
payment included in owner's
equity
4. Other
(3) Profit distribution
1. Withdraw surplus reserve
2. Distribution to owners (or
shareholders)
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3. Others
(4) Internal transfer of owners'
equity
1. Conversion of capital
reserve into capital (or share
capital)
2. Conversion of surplus
reserves into capital (or equity)
3. Surplus reserves make up for
losses
4. Carryover of retained
earnings from changes in the
defined benefit plan
5. Other comprehensive income
carried forward to retained
earnings
6. Other
(5) Special reserve
1. Withdraw special reserves
2. Use special reserves
(6) Others
IV. Balance at the end of the 215,000,0 158,864, - 589,559.76 - -
period 00.00 042.34 1,854,91 490,527,790.6 117,929,098.5
0.00 4 4
Legal Representative: Accounting Director: Accounting Manager:
I. Company profile
Nanjing Putian Telecommunications Co., Ltd. (the “Company”), whose predecessor is Nanjing
Telecommunication Facility Factory, was established as a limited liability company through financing under the
approval of National Economic Institutional Reform Commission with document of approval numbered TGS
[1997] 28 dated March 21, 1997. The Company is headquartered in Nanjing City, Jiangsu Province. Currently it
holds a business license with unified social credit code of 91320000134878054G, with registered capital of
215,000,000.00 yuan, total share of 215,000,000.00 shares, with par value of 1 yuan per share. Among them,
115,000,000 shares are state-owned legal person shares, and 100,000,000 shares are B shares. The Company was
listed on the Shenzhen Stock Exchange on May 22, 1997.
The Company belongs to telecommunication equipment manufacture industry and is mainly engaged in
R&D, production, and sale of data, wire and wireless telecommunication equipment, distribution and allocation of
layout of telecommunication product, multimedia computer, digital television, vehicle electronics and conference
video system. R & D, manufacturing and sales of new energy vehicle charging products and their accessories
(including electric vehicle charger charging module, charging station system, split charging cabinet, outdoor
integrated pile, various AC and DC charging piles and other accessories); Design and sales of new energy
charging and discharging overall solutions; Electric vehicle charging operation and maintenance. R & D and sales
of software and intelligent software platform. Smart city, smart elderly care and other industry information
services. R & D, manufacturing, sales, installation and service of video equipment and video conference system.
Agent sales of communication modified vehicles (excluding wholesale), and provide corresponding after-sales
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service. Design, system integration and related consulting services of communication information network
engineering and computer information system engineering. Design, construction, installation and service of
building intelligent system engineering. Lease of self owned assets such as houses and equipment.
The financial statements have been deliberated and approved for issue by the Board of Directors dated April
26, 2024.
The Company includes Nanjing Putian Changle Communication Equipment Co., LTD., Nanjing Putian
Tianji Building Intelligence Co., LTD., and other five subsidiaries in the scope of the current consolidated
financial statements, as detailed in Notes VII and VIII of the financial statements.
II. Preparation basis of the financial statements
(I) Preparation basis
The financial statements of the Company are prepared on the basis of going concern, based on actual
transactions and events, in accordance with the Accounting Standards for Business Enterprises-Basic Standards
and specific Accounting Standards promulgated by the Ministry of Finance (hereinafter collectively referred to as
the "Accounting Standards for Business Enterprises") and based on the important accounting policies and
accounting estimates described below.
(II) Assessment of the ability to continue as a going concern
The Company has no events or circumstances that would cause material doubt about its ability to go as a
going concern for the 12 months from the end of the reporting period.
The company optimizes the industrial layout, focuses on the main business, continues to promote the
upgrading and transformation of the business to intelligent conference, intelligent wiring, intelligent power
distribution, intelligent lighting, expand the high-quality market direction of central enterprises, finance, energy,
airports, ports, military industry, promote innovation and research and development capabilities, and strive to
form core and differentiated competitive advantages to improve the company's core competitiveness. In 2024, the
company won the bid or signed the "National Oil and Gas Pipeline Network Group Co., LTD. Video Conference
Project", with the project amount of about 85 million yuan; "Ningbo Rail Transit Line 6 Phase I distribution box
(cabinet)", the project amount is about 37.33 million yuan; "Hubei Provincial Center for Disease Control and
Prevention comprehensive capacity improvement (Phase I) project, the project amount of about 7.48 million yuan
and other projects. The company continues to consolidate the advantages of the industry, while actively expanding
the upstream and downstream industry chain of China Electronics Group synergy, 2023 sales to member units
increased by 88% over the previous year.
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III. Significant accounting policies and estimates
Important note: The Company has formulated specific accounting policies and estimates for transactions or
matters such as impairment of financial instruments, depreciation of fixed assets, amortization of intangible assets
and revenue recognition according to the actual characteristics of production and operation.
(I) Statement of compliance
The financial statements prepared by the Company comply with the requirements of the Accounting
Standards for Business Enterprises and truly and completely reflect the financial position of the Company as of
December 31, 2022, the operating results and cash flows of the year from January to December 2022 and other
relevant information.
(II) Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.
(III) Operating cycle
The Company has a relatively short operating cycle for its business, an asset or a liability is classified as
current if it is expected to be realized or due within 12 months.
(IV) Functional currency
The Company’s functional currency is Renminbi (RMB) Yuan.
(V) Method for determining importance criteria and selection criteria
Importance of itemized items in the notes to the financial statements
The Company determines the importance of the detailed items in the notes to the financial statements, and on
the basis of the importance of the items in the financial statements, the specific items account for a certain
proportion of the project, or the combined amount, while taking into account the nature of the specific items.
Some items are not material to the financial statements but may be material to the notes and still need to be
disclosed separately in the notes. The relevant materiality criteria for the notes to the financial statements are:
item Materiality criteria
Material item receivables for provision Accounting for more than 5% of the amount of the corresponding receivables, and the amount exceeds 4
for bad debts million yuan, or the provision for bad debts in the current period affects the change in profit and loss
The impact of the reversal of bad debt reserves accounts for more than 5% of the current period's bad
Recovery or reversal of provisions for
debt reserves, and the amount exceeds 1 million yuan, or affect the change in profit and loss of the
bad debts of significant receivables
current period
Write off important receivables Accounts for more than 5% of the corresponding receivables, and the amount exceeds 1 million yuan
Significant changes in the book value
of the amount received in advance The change is more than 30%
and contract assets
Significant debt investments Accounts for more than 5% of the debt investment, and the amount exceeds 1 million yuan
Important construction projects under The amount of investment budget is large, accounting for more than 5% of the scale of existing fixed
construction assets, and the current amount accounts for more than 10% of the total amount of the project under
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item Materiality criteria
construction in the current period (or the ending balance accounts for more than 5%) and the amount
exceeds 1 million yuan
The R&D project budget shall account for more than 5% of the total research project budget, and the
Important capitalized research and
current capitalization shall account for more than 10% of the total capitalization of the R&D project (or the
development projects
closing balance shall account for more than 10%), and the amount shall exceed 500,000 yuan
Important accounts payable and other
Account for more than 5% of the balance of accounts payable or other payables, and the amount exceeds
payables with an account age of more
1 million yuan
than 1 year
Significant joint ventures or Book value of a long-term equity investment of more than 10%, or investment gains (losses in absolute
associates terms) from a joint venture or associate of more than 10% of the net profit of the consolidated statement
Total assets and total liabilities account for more than 10% of the corresponding items in the consolidated
Significant debt restructuring statement, and the absolute amount exceeds 1 million yuan, or the impact on net profit accounts for more
than 10%
(VI) Accounting treatments of business combination under and not under common control
1. Accounting treatment of business combination under common control
Of a long-term equity investment under the same control enterprise merger form combined party to pay in
cash, transfers non-cash assets or bear debt, as a merger of consideration, the company owners' equity on the
combining date according to the combined party on the final the share of the book value of the control side of the
consolidated financial statements as the initial cost of the long-term equity investment. If the merging party issues
equity instruments as the merger consideration, the total par value of the issued shares shall be used as the share
capital. The difference between the initial investment cost of long-term equity investment and the book value of
the combined consideration (or the total face value of the issued shares) shall be adjusted to the capital reserve; If
the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
2. Accounting treatment of business combination not under common control
For business combinations not under the same control, the merger cost is the sum of the fair value of the
assets paid by the purchaser, the liabilities incurred or assumed and the equity securities issued by the purchaser
on the purchase date in order to gain control over the acquired purchaser. The identifiable assets, liabilities and
contingent liabilities of the purchased party that are acquired in a business combination under different control and
meet the recognition conditions shall be measured at fair value on the purchase date. The difference between the
buyer's cost of the merger and the fair value share of the identifiable net assets of the acquiree obtained in the
merger is reflected as the value of goodwill. If the merger cost is less than the fair value share of the identifiable
net assets of the acquiree obtained in the merger, the difference between the merger cost and the fair value share of
the identifiable net assets of the acquiree obtained in the merger shall be included in the non-operating income of
the current period.
(VII) Compilation method of consolidated financial statements
1. Scope of consolidated financial statements
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The parent company includes all subsidiaries under its control in the consolidated scope of the consolidated
financial statements. The consolidated financial statements are based on the financial statements of the parent
company and its subsidiaries and are prepared by the parent Company in accordance with Accounting Standards
for Business Enterprises No. 33 - Consolidated Financial Statements based on other relevant information.
The Company includes all subsidiaries (including the separate entities controlled by the Company) into the
scope of consolidated financial statements, including the enterprises controlled by the Company, the divisible
parts of the investee units and the structured entities.
2. Unify the accounting policies, balance sheet dates and accounting periods of the parent-subsidiary
company
If the accounting policies or accounting periods adopted by a subsidiary are not consistent with those adopted
by the Company, it shall make necessary adjustments to the financial statements of the subsidiary in accordance
with the accounting policies or accounting periods adopted by the Company when preparing the consolidated
financial statements.
3. Offset items in consolidated financial statements
The consolidated financial statements are based on the financial statements of the Company and subsidiaries
and have offset internal transactions that occur between the Company and subsidiaries and among subsidiaries.
The shares of the owners' equity of subsidiaries that do not belong to the Company shall, as minority shareholders'
equity, be listed under the "minority shareholders' equity" item in the consolidated balance sheet. Long-term
equity investments of the Company held by subsidiaries are considered Treasury shares of the Company and are
shown as a deduction of Stockholders' equity in the consolidated balance sheet under the item of Stockholders'
equity as "Less: Treasury shares".
4. Merger and acquisition of subsidiary accounting treatment
For the subsidiaries acquired by the merger of enterprises under the same control, the merger shall be deemed
to have occurred when the ultimate controlling party began to exercise control, and its assets, liabilities, operating
results and cash flows shall be included in the consolidated financial statements from the beginning of the merger
period. For subsidiaries acquired by a merger of enterprises not under the same control, the individual financial
statements shall be adjusted on the basis of the fair value of identifiable net assets on the purchase date when
preparing consolidated financial statements.
5. Accounting for the disposal of subsidiaries
In the case of partial disposal of the long-term equity investment in the subsidiary without loss of control, in
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the consolidated financial statements, the disposal price and the disposal of the long-term equity investment shall
be entitled to the difference between the shares of net assets continuously calculated by the subsidiary since the
purchase date or the merger date, and the capital reserve (capital premium or equity premium) shall be adjusted. If
the capital reserve is insufficient for write-down, the retained earnings shall be adjusted.
If the investor loses the right of control due to the disposal of part of the equity investment or other reasons,
the remaining equity shall be remeasured according to the fair value on the date of the loss of the right of control
when preparing the consolidated financial statements. The sum of the consideration obtained from the disposal of
the equity and the fair value of the remaining equity, minus the difference between the shares of the original
shareholding proportion which should enjoy the net assets continuously calculated from the purchase date or
merger date of the original subsidiary, shall be included in the investment income of the period of loss of control,
and the goodwill shall be written down at the same time. Other comprehensive income related to the equity
investment of the original subsidiary shall be converted to current investment income when the right of control is
lost.
(VII) Classification of joint arrangements and accounting treatment of joint operations
1. Classification of joint venture arrangements
Joint venture arrangement is divided into joint venture and joint venture. If the joint venture arrangement is
not reached by a single entity, it shall be classified as joint operation. A separate subject refers to a subject with a
separate identifiable financial structure, including a separate legal entity and a subject without legal entity
qualification but recognized by law. A joint venture arrangement through a separate entity, usually classified as a
joint venture. Where the rights and obligations of the party under the joint venture arrangement have changed due
to changes in relevant facts and circumstances, the party shall reassess the classification of the joint venture
arrangement.
2. Accounting for joint operations
As a participant in the joint operation, the Company shall recognize the following items related to the share
of interests in the joint operation and conduct accounting treatment in accordance with the relevant accounting
standards for enterprises: recognize the assets or liabilities held separately and recognize the assets or liabilities
held jointly according to the share; Recognize the revenue generated from the sale of the share of output enjoyed
by the joint operation; To recognize the revenue generated by the sale of the output of the joint operation
according to its share; Recognize expenses incurred separately and expenses incurred in joint operations by share.
The Company is a participant without joint control over the joint operation. If the company enjoys the
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relevant assets of the joint operation and bears the relevant liabilities of the joint operation, it shall conduct
accounting treatment according to the provisions of the joint operation participant; Otherwise, according to the
provisions of the relevant enterprise accounting standards for accounting treatment.
3. Accounting treatment of joint venture
The company is the joint venture party, in accordance with the "Accounting Standards for Enterprises No. 2 -
Long-term Equity investment" for the joint venture investment accounting treatment; The Company is not a joint
venture party, according to the extent of the impact on the joint venture accounting treatment.
(VIII) Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment. Cash
equivalents refer to short-term, highly liquid investments that can be readily converted to cash and that are subject
to an insignificant risk of changes in value.
(IX) Foreign currency translation
1. Translation of foreign currency business
The Company shall enter the foreign currency transactions in standard currency at the spot rate equivalent to
the date of occurrence of the transaction. The foreign currency monetary items on the balance sheet date shall be
translated at the spot exchange rate on the balance sheet date. The exchange difference arising from the difference
between the spot exchange rate on the current date and the initial recognition rate or the spot exchange rate on the
previous balance sheet date shall be included in the current profit and loss, except that the exchange difference of
special foreign currency loans conforming to the capitalization conditions shall be capitalized and included into
the cost of related assets during the capitalization period. For foreign currency non-monetary items measured at
historical cost, the spot exchange rate on the transaction date shall still be adopted and the amount of the
accounting standard currency shall not be changed. Foreign currency non-monetary items measured at fair value
shall be converted by the spot exchange rate on the date of fair value determination. The difference between the
converted amount of accounting standard currency and the original amount of accounting standard currency shall
be treated as fair value changes (including exchange rate changes) and recorded into current profit and loss or
recognized as other comprehensive income.
2. Translation of financial statements measured in foreign currency
If the subsidiaries, joint ventures and associated enterprises of the Company adopt a different accounting
standard currency from the Company, they shall conduct accounting and preparation of consolidated financial
statements after converting their foreign currency financial statements. The assets and liabilities in the balance
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sheet shall be translated at the spot exchange rate at the balance sheet date, and the owners' equity items shall be
translated at the spot exchange rate at the time of occurrence except for the "undistributed profit" item. The
income and expense items in the income statement shall be converted at the spot exchange rate on the transaction
date. The balance of translation in foreign currency financial statements resulting from translation is shown as
follows in owners' equity items and other comprehensive income in the balance sheet. Foreign currency cash
flows shall adopt the spot rate on the date of occurrence of cash flows. The impact of exchange rate changes on
cash is shown separately in the statement of cash flows. When disposing of overseas operations, the balance of
translation of foreign currency statements related to the overseas operations shall be transferred into the disposal
profit or loss of the current period in full or in proportion to the disposal of the overseas operations.
(X) Financial instruments
1. Classification and reclassification of financial instruments
Financial instruments refer to contracts that form the financial assets of one party and the financial liabilities
or equity instruments of another party.
(1) Financial assets
The Company classifies financial assets that meet the following conditions as financial assets measured at
amortized cost: ① The Company's business model of managing financial assets is to collect contract cash flow; ②
The terms of the contract of the financial asset stipulate that the cash flow generated on a specified date is only the
payment of the principal amount and the interest based on the outstanding principal amount.
The Company classifies the financial assets that meet the following conditions as those measured at fair
value and whose changes are included in other comprehensive income: ① The Company's business model of
managing financial assets aims at both collecting contract cash flow and selling the financial assets; ② The terms
of the contract of the financial asset stipulate that the cash flow generated on a specified date is only the payment
of the principal amount and the interest based on the outstanding principal amount.
For investments in non-trading equity instruments, the Company may, upon initial recognition, irrevocably
designate them as financial assets measured at fair value and whose changes are included in other comprehensive
income. The designation is made on an individual investment basis and the underlying investment meets the
definition of an equity instrument from the issuer's point of view.
In addition to financial assets classified as financial assets measured at amortized cost and financial assets
measured at fair value and whose changes are booked into other comprehensive income, the Company classifies
them as financial assets measured at fair value and whose changes are booked into current profit and loss. In the
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initial recognition, if accounting mismatch can be eliminated or reduced, the Company may irrevocably designate
financial assets as financial assets measured at fair value and whose changes are recorded into current profit and
loss.
When the Company changes the business model of managing financial assets, it will reclassify all the
affected financial assets on the first day of the first reporting period after the change of the business model, and
adopt the future applicable method to conduct relevant accounting treatment from the reclassification date,
without retroactive adjustment of previously recognized gains, losses (including impairment losses or gains) or
interest.
(2) Financial liabilities
Financial liabilities at the initial recognition are classified as: financial liabilities measured at fair value and
whose changes are booked into current profit and loss; The financial assets transfer does not meet the conditions
for termination of recognition or continues to involve the financial liabilities formed by the transferred financial
assets; Financial liabilities measured at amortized cost. All financial liabilities are not reclassified.
2. Measurement of financial instruments
The Company's financial instruments are initially recognized as measured at fair value. For financial assets
and financial liabilities measured at fair value and whose changes are booked into current profit and loss, relevant
transaction costs are directly booked into current profit and loss; For other types of financial assets or financial
liabilities, related transaction costs are included in the initial recognized amount. For accounts receivable or notes
receivable arising from the sale of products or the provision of services that do not contain or take into account
significant financing components, the amount of consideration to which the Company is entitled to collect as
expected shall be the initial recognition amount. Subsequent measurement of financial instruments depends on
their classification.
(1) Financial assets
①Financial assets measured at amortized cost. After the initial recognition, such financial assets are
measured by the amortized cost using the effective interest rate method. The gains or losses generated by financial
assets measured at amortized cost and not belonging to any hedging relationship shall be booked into current
profit and loss when recognition is terminated, reclassified, amortized according to the effective interest rate
method or impairment is recognized.
②Financial assets that are measured at fair value and whose changes are booked into current profit or loss.
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After the initial recognition, such financial assets (except part of the financial assets belonging to the hedge
relationship) shall be measured at the fair value, and the resulting gains or losses (including interest and dividend
income) shall be booked into current profit and loss.
③ Investment in debt instruments that are measured at fair value and whose changes are recorded in other
comprehensive income. After the initial recognition, the fair value of such financial assets is used for subsequent
measurement. Interest, impairment losses or gains and exchange gains and losses calculated using the effective
interest rate method are included in current profit and loss, while other gains or losses are included in other
comprehensive income. Upon termination of recognition, the accumulated gains or losses previously booked into
other comprehensive income shall be transferred out of other comprehensive income and booked into current
profit and loss.
(2) Financial liabilities
① Financial liabilities measured at fair value and whose changes are booked into current profit and loss.
Such financial liabilities include trading financial liabilities (including derivative instruments belonging to
financial liabilities) and financial liabilities designated as measured at fair value and whose changes are booked
into current profit and loss. After the initial recognition, the fair value of such financial liabilities is used for
subsequent measurement. Except for the hedge accounting, the gain or loss (including interest expense) generated
by the change in the fair value of trading financial liabilities is booked into current profit and loss. If a financial
liability is specified as a financial liability measured at fair value and its change is included in current profit and
loss, the change in the fair value of the financial liability caused by the change of the enterprise's own credit risk
shall be included in other comprehensive income, and the change in other fair value shall be included in current
profit and loss. If accounting mismatch in profit and loss will be caused or expanded if the impact of the change in
credit risk of the financial liability is included in other comprehensive income, the Company shall book all gains
or losses of the financial liability into current profit and loss.
② Financial liabilities measured at amortized cost. After the initial recognition, such financial liabilities are
measured at amortized cost using the effective interest rate method.
3. The Company's method of recognizing the fair value of financial instruments
If there are financial instruments in active markets, their fair value shall be determined by quotation in active
markets; If there is no active market for financial instruments, use valuation techniques to determine their fair
value. Valuation techniques mainly include market method, income method and cost method. In limited cases, if
recent information used to determine fair value is insufficient, or if the distribution of possible estimates of fair
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value is wide, and cost represents the best estimate of fair value within the range, the cost may represent its
appropriate estimate of fair value within the range of distribution. The Company uses all information about the
investee's performance and operations available after the initial confirmation date to determine whether the cost
represents fair value.
4. Recognition basis and measurement method for transfer of financial assets and financial liabilities
(1) Financial assets
The financial assets of the Company shall be terminated if they meet one of the following conditions: (1) The
contractual right to collect the cash flow of the financial assets shall be terminated; (2) The financial assets have
been transferred, and the company has transferred almost all the risks and rewards of the ownership of the
financial assets; (3) The financial assets have been transferred. Although the Company has neither transferred nor
retained almost all rewards on the ownership of the financial assets, it has not retained control of the financial
assets.
Where the Company neither transfers nor retains almost all remuneration on the ownership of the financial
assets, and retains control over the financial assets, the relevant financial assets shall be recognized according to
the degree of continued involvement in the transferred financial assets, and the relevant liabilities shall be
recognized accordingly.
If the transfer of financial assets meets the conditions for termination of recognition as a whole, the
difference between the following two amounts shall be recorded into the current profit and loss: (1) the book value
of the transferred financial assets on the date of termination of recognition; (2) The sum of the consideration
received due to the transfer of financial assets and the amount corresponding to the part of termination of
recognition in the accumulative amount of the change in fair value directly included in other comprehensive
income (the financial assets involved in the transfer are financial assets classified as measured at fair value and
whose change is included in other comprehensive income).
If the partial transfer of financial assets meets the conditions for termination of recognition, the book value of
the whole transferred financial assets shall be apportioned between the terminated and unterminated part
according to their relative fair value on the transfer date, and then the difference of the following two amounts
shall be recorded into current profit and loss: (1) The book value of the terminated recognition part on the
termination of recognition date; (2) The sum of the consideration received for the part of termination recognition
and the amount corresponding to the part of termination recognition in the accumulative amount of changes in fair
value originally included in other comprehensive income (financial assets involved in transfer are financial assets
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classified as measured at fair value and whose changes are included in other comprehensive income).
(2) Financial liabilities
If the current obligation of the financial liability (or part thereof) has been discharged, the Company shall
terminate the recognition of the financial liability.
If the recognition of financial liabilities (or part thereof) is terminated, the Company shall book the difference
between the book value and the consideration paid into the current profit and loss.
(XI) Methods for determining expected credit losses and accounting treatment
1. Methods for determining expected credit losses
Based on expected credit losses, the Company conducts impairment accounting treatment and recognizes loss
reserves for financial assets (including receivables) measured at amortized cost, financial assets classified as
measured at fair value and whose changes are included in other comprehensive income (including receivables
financing), lease receivables.
On each balance sheet date, the company evaluates whether the credit risk of relevant financial instruments
has significantly increased since the initial recognition. The process of credit impairment of financial instruments
is divided into three stages, and different accounting treatment methods are adopted for the impairment of
financial instruments at different stages: (1) In the first stage, if the credit risk of the financial instrument does not
increase significantly after the initial recognition, the Company shall calculate the loss reserve based on the
expected credit loss of the financial instrument in the next 12 months, and calculate the interest income based on
its book balance (i.e. without deducting the impairment reserve) and the actual interest rate; (2) In the second
stage, if the credit risk of the financial instrument has increased significantly since the initial recognition but no
credit impairment has occurred, the Company shall measure the loss reserve according to the expected credit loss
during the entire duration of the financial instrument and calculate the interest income according to its book
balance and actual interest rate; (3) In the third stage, if credit impairment occurs after the initial recognition, the
Company shall measure the loss reserve according to the expected credit loss during the entire duration of the
financial instrument, and calculate the interest income according to its amortized cost (book balance minus
impairment reserve already drawn) and the actual interest rate.
(1) Lower credit risk financial instruments measure loss reserve method
For financial instruments with lower credit risk at the balance sheet date, the Company may directly assume
that the credit risk of such instruments has not increased significantly since the initial recognition, without
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comparing them with the credit risk at the time of their initial recognition.
If the default risk of the financial instrument is low, the debtor has a strong ability to perform its contractual
cash flow obligations in the short term, and even if there are adverse changes in the economic situation and
business environment in a longer period of time, it may not necessarily reduce the borrower's ability to perform its
contractual cash flow obligations, the financial instrument is regarded as having a low credit risk.
(2) How to measure loss reserve for receivables and lease receivables
① Receivables that do not contain significant financing components. For receivables that are formed from
transactions regulated by Accounting Standard for Business Enterprises No. 14 - Revenue and do not have a
significant financing component, the Company adopts a simplified approach that always measures the loss reserve
against expected credit losses over the entire duration.
Depending on the nature of the financial instrument, the Company assesses whether credit risk is
significantly increased on the basis of individual financial assets or a portfolio of financial assets. The Company
divides notes receivable and accounts receivable into several combinations according to credit risk characteristics,
and calculates expected credit losses on the basis of the combination. The basis for determining the combination is
as follows:
Accounts receivable Portfolio 1: combination of related parties within the scope of consolidation
Accounts receivable Portfolio 2: aging portfolio
Notes Receivable Portfolio 1: Banker's Acceptance receivable
Notes Receivable Portfolio 2: Commercial Acceptance receivable
For the accounts receivable divided into portfolios, the company, by referring to the historical credit loss
experience, combined with the current situation and the forecast of future economic conditions, prepares the
comparison table of the expected credit loss rate between the age of accounts receivable and the entire duration of
accounts receivable to calculate the expected credit loss. For notes receivable divided into portfolios, the
Company calculates expected credit losses based on default risk exposure and expected credit loss rate over the
entire duration by referring to historical credit loss experience, combining current situation and forecast of future
economic conditions.
Accounts receivable -- a comparison of the aging of an aging portfolio with the expected credit loss rate over
its entire life
Aging of account Expected credit loss rate of accounts receivable (%)
Within 1 Year 1.00
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1-2 Years 5.00
2-3 Years 10.00
3-4 Years 30.00
4-5 Years 50.00
More than 5 Years 100.00
② Receivables and lease receivables with a significant financing component.
For receivables with a significant financing component and for lease receivables regulated by Accounting
Standard for Business Enterprises No. 21 - Leases, the Company measures the loss reserve in accordance with the
general method known as the "three-stage" model.
(3) Other methods of measuring loss reserves for financial assets
For financial assets other than the above, such as debt investments, other debt investments, other receivables,
long-term receivables other than lease receivables, the Company measures the loss reserve in accordance with the
general method, namely the "three-stage" model.
The Company takes the following factors into account when assessing whether credit risk is significantly
increased in the event of credit impairment of the measurement financial instruments:
The Company divides other receivables into several combinations according to the nature of the amounts,
and calculates the expected credit loss on the basis of the combination. The basis for determining the combination
is as follows:
Other receivables Portfolio 1: Combination of related parties within the scope of consolidation
Other receivables Portfolio 2: Financing margin portfolio
Other receivables Portfolio 3: Export tax rebates receivable portfolio
2. Accounting for expected credit losses
In order to reflect the changes of the credit risks of financial instruments since the initial recognition, the
Company remeasures the expected credit losses on each balance sheet date, and the resulting increase in the loss
reserve or reversal amount shall be recorded into the current profit and loss as impairment losses or gains. Write
off the carrying value of the financial asset listed in the balance sheet or into the estimated liabilities or into other
comprehensive income (debt investment measured at fair value and its changes into other comprehensive income).
(XII) Inventories
1. Classification of inventory
Inventory refers to finished products or commodities held by the Company in daily activities for sale,
products in the process of production, materials and materials consumed in the process of production or provision
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of services, etc. It mainly includes raw materials, turnover materials (packaging, low-value consumable, etc.),
commissioned processing materials, products in process, homemade semi-finished products, finished products
(stock goods), etc.
2. Valuation method for issuing inventory
When the inventory is dispatched, the monthly weighted average method is adopted to determine the actual
cost of delivery.
3. Method of drawing reserve for inventory decline
On the balance sheet date, the inventory shall be measured according to the lower of the cost and net
realizable value, and the inventory decline reserve shall be calculated according to the single inventory item.
However, for the inventory with a large quantity and a low unit price, the inventory decline reserve shall be
calculated according to the inventory category.
On the balance sheet date, the inventory shall be measured by the lower of cost and net realizable value, and
the inventory depreciation reserve shall be calculated according to the difference between the cost of inventory
class and net realizable value. The net realizable value of the inventory directly used for sale shall be determined
by the estimated selling price of the inventory less estimated selling expenses and related taxes in the normal
course of production and operation; For inventories that need to be processed, the net realizable value shall be
determined by the estimated selling price of finished products produced in the normal course of production and
operation after deducting the estimated cost, estimated selling expenses and related taxes to be incurred upon
completion; On the balance sheet date, if a part of the same inventory has a contract price, but the other part does
not have a contract price, its net realizable value shall be determined respectively, and the corresponding cost shall
be compared with it to determine the amount to be withdrawn or transferred back from the reserve for inventory
declines respectively.
4. Inventory system
The company's inventory system is the perpetual inventory system.
5. Amortization method of low-value consumable products and packaging
Low - value consumable goods and packaging are amortized by one - pass method.
(XIII) Contract assets and contract liabilities
1. Contract assets
The Company presents as a contractual asset the right to receive consideration for goods or services
transferred to the Customer, subject to factors other than the passage of time. Provision for impairment of
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contracted assets shall be made according to the expected credit loss method of financial instruments. For contract
assets that do not contain a material financing component, the Company adopts a simplified method to measure
loss provisions. For contract assets that contain significant financing components, the Company measures loss
provisions in accordance with the general method.
In case of impairment loss on contract assets, "asset impairment loss" shall be debited according to the
amount to be written down, and the impairment provision for contract assets shall be credited; The reverse entry is
made when the asset impairment provision has been transferred back.
2. Contract liabilities
Obligations of the Company to transfer goods or services to the Customer for consideration received or
receivable from the customer shall be listed as contractual liabilities.
The Company presents contractual assets and contractual liabilities under the same contract on a net basis.
(XIV) Long-term equity investments
1. Initial investment cost determination
For the long-term equity investment obtained from the enterprise merger, if the enterprise merger is under the
same control, the initial investment cost of the long-term equity investment shall be taken as the share of the
owner's equity of the merged party in the book value of the final controlling party's consolidated financial
statements on the merger date; In the case of enterprise merger not under the same control, the initial investment
cost of long-term equity investment shall be taken as the merger cost determined on the purchase date; For long-
term equity investment obtained by cash payment, the initial investment cost is the actual purchase price paid; For
the long-term equity investment obtained by issuing equity securities, the initial investment cost shall be the fair
value of the equity securities issued; The initial cost of long-term equity investment obtained through debt
restructuring shall be determined in accordance with the relevant provisions of Accounting Standards for
Enterprises “CASBE 12 – Debt Restructuring”; For long-term equity investment obtained by exchange of non-
monetary assets, the initial investment cost shall be determined in accordance with relevant provisions of
Accounting Standards for Business Enterprises “CASBE 7 – Non-cash Assets Exchange”.
2. Subsequent measurement and recognition method of profit or loss
For long-term equity investments with control relationship, it is accounted for with cost method; for long-
term equity investments with joint control or significant influence relationship, it is accounted for with equity
method. The company for equity investment consortium, one part of through risk investment institutions, mutual
funds, trust companies or similar subject, including cast the insurance fund, indirect holding, whether the above
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subject has a significant influence on this part of the investment, the company in accordance with the accounting
standards for enterprises “CASBE 22 – Financial Instruments: Recognition and Measurement”, and the rest of the
equity method accounting.
3. Determine the basis of joint control and significant influence on the invested entity
Of the invested entity has joint control, refers to an arrangement returns have a significant impact on activity
must go through the participants agreed to share control decisions, including the sale and purchase of goods or
services, financial assets management, purchase and disposal of the assets, research and development activities,
and financing activities, etc.; Having a significant influence on the invested entity refers to having a significant
influence when holding more than 20% to 50% of the voting capital of the invested entity. Or, although less than
20%, has a significant impact if one of the following conditions is met: representation on the board of directors or
a similar authority of the invested entity; To participate in the policy making process of the investee; Dispatching
management personnel to the invested units; The invested entity relies on the technology or technical data of the
investment company; Having important transactions with the invested units.
(XV) Investment property
The Company's investment property categories, including leased land use rights, leased buildings, land use
rights held and ready to be transferred after appreciation. The initial measurement of investment property is
carried out according to the cost, and the subsequent measurement is carried out according to the cost model.
The average life method is adopted for the depreciation of leased buildings in the Company's investment
property, and the specific accounting policy is the same as that of fixed assets. The land-use right leased in
investment property and the land-use right held and transferred after appreciation shall be amortized by the
straight-line method. The specific accounting policies are the same as those for intangible assets.
(XVI) Fixed assets
1. Recognition principles of fixed assets
Fixed assets are tangible assets held for use in the production of goods or rendering of services, for rental to
others, or for administrative purposes, and expected to be used during more than one accounting year. Fixed assets
are recognized if, and only if, it is probable that future economic benefits associated with the assets will flow to
the Company and the cost of the assets can be measured reliably.
2.Depreciation method of different categories of fixed assets
The company's fixed assets are mainly divided into: buildings and structures, machinery, electronic
equipment, transport facilities, etc. The depreciation method adopts the average life method. The service life and
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estimated net salvage value of fixed assets shall be determined according to the nature and usage of various types
of fixed assets. At the end of the year, the service life, estimated net salvage value and depreciation method of the
fixed assets shall be rechecked. If there is any difference from the original estimate, corresponding adjustment
shall be made. In addition to the fixed assets that have been fully depreciated but are still in use and the land that
is separately priced and recorded, the Company will calculate and depreciate all the fixed assets.
Estimated residual value
Categories Useful life (years) Annual depreciation rate (%)
proportion (%)
Buildings and structures 15-35 3.00 2.77-6.47
Machinery 10-15 3.00 6.47-9.70
Transport facilities 6-8 3.00 12.13-16.17
Electronic equipment 4-11 3.00 8.82-24.25
Other equipment 4-11 3.00 8.82-24.25
(XVII) Construction in progress
1. Construction in progress is recognized if, and only if, it is probable that future economic benefits
associated with the item will flow to the Company, and the cost of the item can be measured reliably.
Construction in progress is measured at the actual cost incurred to reach its designed usable conditions.
2. Construction in progress is transferred into fixed assets at its actual cost when it reaches the designed
usable conditions. When the auditing of the construction in progress was not finished while reaching the designed
usable conditions, it is transferred to fixed assets using estimated value first, and then adjusted accordingly when
the actual cost is settled, but the accumulated depreciation is not to be adjusted retrospectively.
(XVIII) Borrowing costs
1. Recognition principle of capitalization of borrowing costs
Borrowing costs incurred by the Company that can be directly attributed to the purchase, construction or
production of assets eligible for capitalization shall be capitalized and included in the cost of relevant assets;
Other borrowing costs shall be recognized as expenses according to the amount incurred when incurred and
recorded into current profits and losses. The assets that meet the capitalization conditions refer to the fixed assets,
investment real estate, inventory and other assets that need to go through a fairly long period of purchase,
construction or production activities to reach the predetermined state of being usable or saleable.
2. Calculation method of capitalization amount
Capitalization period refers to the period from the beginning of capitalization of borrowing costs to the end
of capitalization. Periods of suspension of capitalization of borrowing costs are not included. Capitalization of
borrowing costs shall be suspended if abnormal interruption occurs in the purchase, construction or production
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process and the interruption lasts for more than 3 consecutive months.
The borrowing of a special loan shall be determined according to the amount of the interest expense actually
incurred in the current period of the special loan, minus the interest income obtained from depositing the unused
loan funds in the bank or the investment income obtained from temporary investment; Occupied general
borrowings shall be calculated and determined according to the weighted average of the accumulated asset
expenditure exceeding the portion of special borrowings multiplied by the capitalization rate of occupied general
borrowings, and the capitalization rate shall be the weighted average interest rate of general borrowings; If there is
a discount or premium on the loan, the amount of discount or premium to be amortized in each accounting period
shall be determined according to the effective interest rate method, and the amount of interest for each period shall
be adjusted.
The effective interest rate method is a method to calculate the amortized discount or premium or interest
expense of a loan according to the effective interest rate. The effective interest rate is the future cash flow of the
loan during its expected life, discounted as the interest rate used in the current book value of the loan.
(XIX) Intangible assets
1. The valuation method of intangible assets
The Company's intangible assets are initially measured at cost. The purchased intangible assets shall be
regarded as the actual cost according to the actual price paid and related expenses. The actual cost of intangible
assets invested by investors shall be determined according to the value stipulated in the investment contract or
agreement, but if the value stipulated in the contract or agreement is unfair, the actual cost shall be determined
according to the fair value. For self-developed intangible assets, the cost shall be the total amount of expenses
incurred before reaching the intended use.
The Company's subsequent measurement methods for intangible assets are as follows: Intangible assets with
limited service life shall be amortized by the straight-line method, and the service life and amortization method of
intangible assets shall be rechecked at the end of the year. If there is any difference from the original estimate,
corresponding adjustment shall be made; Intangible assets with uncertain service life are not amortized, but at the
end of the year, the service life shall be rechecked. When there is conclusive evidence that the service life is
limited, the service life shall be estimated and amortized according to the straight-line method.
Intangible assets with limited useful life are amortized as follows:
Items Amortization period (years)
Software 3-10
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Items Amortization period (years)
patent right and non-patented technology 5-10
land use right 40-50
2. The judgment basis of uncertain service life
The Company will not be able to foresee the period of time that the asset will bring economic benefits to the
Company, or the intangible assets with uncertain service life are identified as intangible assets with uncertain
service life. The judgment basis of uncertain service life is: it comes from contractual rights or other legal rights,
but the contract or legal provisions do not specify the service life; Based on the industry situation or relevant
experts' arguments, it is still impossible to judge the period when intangible assets bring economic benefits to the
company.
At the end of each year, the service life of intangible assets with uncertain service life is reviewed, mainly in
a bottom-up way. The departments related to the use of intangible assets conduct basic review to evaluate whether
the judgment basis of uncertain service life has changed.
3. Specific criteria for research and development stages of internal research and development projects, as
well as specific criteria for development stage expenditures to meet the capitalization conditions
Expenditure in the research phase of internal research and development projects shall be recorded into
current profits and losses when incurred; The expenditure in the development stage shall be transferred to the
accounting of intangible assets if it meets the conditions of being recognized as intangible assets.
Specific criteria for dividing the research phase and development phase of an internal research and
development project: (1) it is technically feasible to complete the intangible asset so that it can be used or sold; (2)
it has the intention to complete the intangible asset and use or sell it; (3) The way in which intangible assets
generate economic benefits, including being able to prove that there is a market for the products produced by
using the intangible assets or that there is a market for the intangible assets themselves, and that the intangible
assets will be used internally, being able to prove their usefulness; (4) it has the support of sufficient technology,
financial resources and other resources to complete the development of the intangible asset and has the ability to
use or sell the intangible asset; (5) The expenditure attributable to the development stage of the intangible asset
can be measured reliably.
(XX) Impairment of part of long-term assets
If long-term equity investment, investment real estate measured by the cost model, fixed assets, intangible
assets of construction in progress and other long-term assets show signs of impairment on the balance sheet date,
the impairment test shall be conducted. If the result of the impairment test shows that the recoverable amount of
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the asset is lower than its carrying value, the impairment reserve shall be calculated and booked into the
impairment loss according to the difference.
The recoverable amount is the higher between the net fair value of the asset less the disposal charge and the
present value of the expected future cash flows of the asset. If it is difficult to estimate the recoverable amount of
a single asset, the recoverable amount of the asset group shall be determined based on the asset group to which the
asset belongs. An asset group is the smallest set of assets that can independently generate cash inflows.
Goodwill shown separately in the financial statements, regardless of whether there is evidence of impairment,
shall be tested for impairment at least annually. In the impairment test, the carrying value of goodwill is apportion
to the group of assets or combination of asset groups expected to benefit from the synergies of the business
combination. If the test results show that the recoverable amount of the asset group or the asset group combination
containing the apportion of goodwill is lower than its carrying value, the corresponding impairment loss shall be
recognized. The amount of impairment loss shall first offset the book value of goodwill apportion to the asset
group or asset group combination, and then offset the book value of other assets in proportion to the proportion of
the book value of assets other than goodwill in the asset group or asset group combination.
Once the above-mentioned asset impairment loss is recognized, the part whose value can be recovered shall
not be transferred back in the following period.
(XXI) Long-term prepayments
Long-term prepayments are expenses that have been recognized but with amortization period over one year
(excluding one year). They are recorded with actual cost, and evenly amortized within the beneficiary period or
stipulated period. If items of long-term prepayments fail to be beneficial to the following accounting periods,
residual values of such items are included in profit or loss.
(XXII) Employee benefits
Employee benefits refers to various forms of remuneration or compensation provided by the Company for
obtaining services provided by employees or for terminating labor relations. Employee benefits include short-term
employee benefits, post-employment benefits, termination benefits and other long-term employee benefits.
1. Short-term employee benefits
During the accounting period when employees provide services for the company, the actual short-term
compensation is recognized as liabilities and booked into the current profits and losses, except for those required
or allowed to be booked into the cost of assets by the accounting standards for enterprises. The employee welfare
expense incurred by the Company shall be included in the current profit and loss or the cost of relevant assets
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according to the actual amount when it is actually incurred. If the employee welfare fee is non-monetary welfare,
it shall be measured at fair value. The company for the medical treatment insurance premium of worker pay,
inductrial injury insurance, birth insurance premium of social insurance premiums and housing accumulation fund,
and according to the rules extraction of the trade union and employee education funds and provide services in the
workers of the accounting period, according to the provisions stipulated in the basic and provision ratio calculate
and determine the corresponding compensation amount, and confirm corresponding liabilities, Include current
profit or loss or related asset cost.
2. Post-employment benefits
During the accounting period when employees provide services, the payable amount calculated according to
the set depository plan shall be recognized as liabilities and recorded into the current profit and loss or the cost of
relevant assets. According to the formula determined by the expected cumulative benefit unit method, the welfare
obligation arising from the set benefit plan shall be attributed to the period of service provided by the employee,
and shall be included in the current profit and loss or the cost of relevant assets.
3. Termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability for termination
benefits, with a corresponding charge to profit or loss at the earlier of the following dates: a. when the Company
cannot unilaterally withdraw the offer of termination benefits because of an employment termination plan or a
curtailment proposal; or b. when the Company recognizes cost or expenses related to a restructuring that involves
the payment of termination benefits.
4. Other long-term employee benefits
Other long-term employee benefits provided by the company to the employees that meet the conditions for
setting up an escrow plan shall be dealt with in accordance with the provisions on setting up an escrow plan; In
addition, identify and measure other long-term employee benefit net liabilities or net assets according to the
relevant provisions of the defined benefit plan.
(XXIII) Provisions
An obligation related to a contingent event is recognized as a projected liability when it is a current
obligation undertaken by the Company and the performance of the obligation is likely to result in an outflow of
economic benefits and the amount of the obligation can be measured reliably. The Company shall make initial
measurement according to the best estimate of the expenditure required to fulfill the relevant current obligations.
If there exists a continuous range of expenditure required and various outcomes within the range are equally likely
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to occur, the best estimate shall be determined as the intermediate value within the range; If more than one project
is involved, calculate the best estimate based on the various possible outcomes and the associated probabilities.
On the balance sheet date, the book value of the projected liabilities shall be reviewed. If there is conclusive
evidence that the book value does not truly reflect the current best estimate, the book value shall be adjusted
according to the current best estimate.
(XXIV) Revenue
The Company has fulfilled its performance obligation under the contract, that is, when the customer obtains
control of the relevant commodity or service, it recognizes revenue according to the transaction price apportioned
to the performance obligation. To acquire the control right of relevant goods refers to to be able to dominate the
use of the goods and obtain almost all the economic benefits from them. Performance obligation refers to the
commitment of the company in the contract to transfer clearly distinguishable commodities to the customer.
Transaction Price represents the amount of consideration that the Company expects to be entitled to collect as a
result of the transfer of goods to the Customer, excluding monies received on behalf of third parties and monies
that the Company expects to refund to the Customer.
Whether the performance obligation is to be performed within a certain period of time or at a certain point
depends on the terms of the contract and relevant legal provisions. If the performance obligation is performed
within a certain period of time, the Company recognizes revenue according to the progress of performance.
Otherwise, the Company recognizes revenue at a point at which the customer acquires control of the relevant
assets.
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 performed at a certain point: (1) The customer
obtains and consumes the economic benefits arising from the Company's performance at the same time as the
Company's performance; (2) The customer can control the goods under construction during the company's
performance; (3) The commodities produced by the Company during the performance of the Contract have
irreplaceable uses, and the Company has the right to collect payment for the accumulated performance completed
so far throughout the contract period.
For performance obligations performed within a certain period of time, the Company recognizes revenue in
accordance with the progress of performance during that period. If the performance progress cannot be reasonably
determined and the incurred costs are expected to be compensated, the revenue shall be recognized according to
the amount of incurred costs until the performance progress can be reasonably determined. For performance
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obligations performed at a certain point, revenue is recognized at the point when the customer acquires control of
the relevant goods or services. In determining whether the customer has acquired control of the goods, the
Company considers the following indications: (1) the Company has a current collection right in respect of the
goods, i.e. the customer has a current payment obligation in respect of the goods; (2) the Company has transferred
the legal title of the goods to the Customer, that is, the customer has the legal title of the goods; (3) The Company
has physically transferred the commodity to the customer, that is, the customer has physically possessed the
commodity; (4) The Company has transferred the major risks and rewards in the ownership of the commodities to
the Customer, that is, the customer has obtained the major risks and rewards in the ownership of the commodities;
(5) The customer has accepted the goods; (6) Other signs indicating that the customer has acquired control of the
goods.
Specific methods of revenue recognition
The Company mainly sells video conferencing products, integrated cabling products, intelligent electrical
products, communication basic products and other products. The above product sales business of the company is a
performance obligation performed at a certain point, and the product revenue recognition shall meet the following
conditions: The company has delivered the products to the purchaser according to the contract and accepted them
by the purchaser, and the amount of sales revenue of the products has been determined, the payment for goods has
been recovered or the receipt of payment has been obtained, and the relevant economic benefits are likely to flow
in, and the costs related to the products can be measured reliably.
(XXV) Contract cost
The contract cost of the Company includes the incremental cost incurred to obtain the contract and the contract
performance cost. Incremental costs incurred to acquire a contract (" contract acquisition costs ") are costs that
would not have been incurred otherwise. If the cost is expected to be recovered, the Company will recognize it as
a contract acquisition cost as an asset.
The cost incurred by the Company to perform the contract, which does not fall within the scope of accounting
standards for enterprises such as inventory and meets the following conditions at the same time, shall be
recognized as an asset as the contract performance cost:
1. The costs are directly related to a current or expected contract and include direct labor, direct materials,
manufacturing expenses (or similar expenses), costs expressly borne by the User and other costs incurred solely as
a result of the contract;
2. The cost increases the Company's resources for future performance obligations;
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3. This cost is expected to be recovered.
The Company will recognize the contract performance costs as assets, the amortization period of the initial
recognition does not exceed one year or a normal business cycle, in the balance sheet into the "inventory" item; If
the amortization period is more than one year or one normal operating cycle at the time of initial recognition,
"other non-current assets" will be included in the balance sheet.
The Company shall record the acquired costs of contracts recognized as assets into the "other current assets"
item in the balance sheet if the amortization period at the initial recognition does not exceed one year or one
normal operating cycle. If the amortization period is more than one year or one normal operating cycle at the time
of initial recognition, "other non-current assets" will be included in the balance sheet.
The Company amortizes the assets recognized for contract acquisition cost and contract performance cost
(hereinafter referred to as "assets related to contract cost") on the same basis as the commodity revenue
recognized for the assets and records them into the current profit and loss. If the amortization period of the asset
formed by the incremental cost of acquiring the contract does not exceed one year, it shall be included in the
current profit and loss at the time of occurrence.
If the carrying value of the asset related to the contract cost is higher than the difference between the
following two items, the Company will calculate and withdraw the excess part of the impairment reserve and
recognize it as the asset impairment loss:
1. The remaining consideration expected to be obtained from the transfer of commodities related to the asset;
2. Estimate the cost to be incurred for the transfer of the related goods.
If the difference between the foregoing two items is higher than the carrying value of the asset due to the
change of the factors of impairment in the previous period, it shall revert to the original provision for asset
impairment and be included in the current profit and loss, provided that the carrying value of the asset after the
reversal shall not exceed the carrying value of the asset on the date of reversal assuming no provision for
impairment.
(XXVI) Government grants
1. Types of government subsidies and accounting treatment
Government subsidy refers to the monetary assets or non-monetary assets that the Company obtains free of
charge from the government (but does not include the capital invested by the government as the owner). If the
government subsidy is a monetary asset, it shall be measured according to the amount received or receivable.
Where government subsidies are non-monetary assets, they shall be measured at fair value; If the fair value cannot
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be obtained reliably, it shall be measured according to the nominal amount.
Government subsidies related to daily activities shall be included in other income according to the economic
business essence. Government subsidies unrelated to daily activities shall be included in non-operating income.
Government documents clearly stipulate that government subsidies for the purchase and construction of
long-term assets or the formation of long-term assets by other means shall be recognized as government subsidies
related to assets. If the government documents do not specify the object of subsidy, and long-term assets can be
formed, the part of government subsidy corresponding to the value of the asset shall be regarded as the
government subsidy related to the asset, and the rest shall be regarded as the government subsidy related to the
income. It is difficult to distinguish between government subsidies as a whole as government subsidies related to
benefits. Government subsidies related to assets are recognized as deferred income. The amount recognized as
deferred income shall be recorded into current profits and losses in a reasonable and systematic manner during the
useful life of the relevant asset.
Government subsidies other than those related to assets shall be recognized as government subsidies related
to earnings. If the government subsidies related to earnings are used to compensate the relevant expenses or losses
of the enterprise in the subsequent period, they shall be recognized as deferred earnings and recorded into the
current profit and loss during the period when the relevant expenses are recognized. If it is used to compensate the
relevant expenses or losses already incurred by the enterprise, it shall be directly recorded into the current profit
and loss.
If the company obtains a policy preferential loan discount interest, and the finance allocates the discount
interest funds to the lending bank, and the lending bank provides the loan to the Company at the policy
preferential interest rate, the actual amount of the loan is taken as the recorded value of the loan, and the relevant
borrowing costs are calculated according to the loan principal and the policy preferential interest rate; If the
finance directly appropriates the discount interest funds to the Company, the Company will offset the
corresponding discount interest against the relevant borrowing costs.
2. Confirmation of government subsidies
Government grants are recognized when the conditions attached to government grants are met and can be
received. The government subsidy measured according to the amount receivable shall be confirmed at the end of
the period when there is solid evidence that it can meet the relevant conditions stipulated in the financial support
policy and is expected to receive the financial support funds. Government subsidies other than those measured
according to the amount receivable shall be recognized when the amount of subsidies is actually received.
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(XXVII) Deferred income tax assets and liabilities
1. Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference
between the carrying amount and tax base of assets and liabilities (and the difference of the carrying amount and
tax base of items not recognized as assets and liabilities but with their tax base being able to be determined
according to tax laws) and in accordance with the tax rate applicable to the period during which the assets are
expected to be recovered or the liabilities are expected to be settled.
2. A deferred tax asset is recognized to the extent of the amount of the taxable income, which it is most likely
to obtain and which can be deducted from the deductible temporary difference. At the balance sheet date, if there
is any exact evidence that it is probable that future taxable income will be available against which deductible
temporary differences can be utilized, the deferred tax assets unrecognized in prior periods are recognized.
3. Recognize deferred tax liabilities for taxable temporary differences related to investments in subsidiaries
and associates, unless the Company has control over the timing of the reversal of the temporary differences and it
is likely that the reversal will not occur in the foreseeable future. For deductible temporary differences related to
investments in subsidiaries and associates, deferred tax assets are recognized when such temporary differences are
likely to be reversed in the foreseeable future and the amount of taxable income used to offset the deductible
temporary differences is likely to be obtained in the future.
(XXVIII) Leases
1. Accounting treatment of leased assets
On the commencement date of the lease term, the Company recognizes the right to use assets and lease
liabilities for leases other than short-term leases and leases of low-value assets, and recognizes depreciation
expense and interest expense, respectively, during the lease term.
The Company uses the straight-line method for each period of the lease term to charge lease payments for
short-term leases and leases for low-value assets to current expenses.
（1）Right-of-use asset
The right-of-use asset is initially measured at cost, which includes: 1) the initial measurement amount of the
lease liability; 2) the lease payments made on or before the start date of the lease term, if there is a lease incentive,
deduct the amount of the lease incentive already enjoyed ; 3) Initial direct costs incurred by the lessee; 4) The
lessee is expected to incur costs to dismantle and remove the leased asset, restore the site where the leased asset is
located, or restore the leased asset to the state agreed upon in the lease terms
The company depreciates right-of-use assets on a straight-line basis. If it can be reasonably determined that
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the ownership of the leased asset will be obtained at the expiration of the lease term, the company shall accrue
depreciation over the remaining useful life of the leased asset. If it cannot be reasonably determined that the
ownership of the leased asset can be obtained when the lease term expires, the company shall accrue depreciation
within the shorter of the lease term and the remaining useful life of the leased asset.
In accordance with the Accounting Standards for Enterprises “ CASBE 8 - Asset Impairment”, the company
determines whether the assets used for use have been impaired and carries out accounting treatment.
（2）Lease liability
The lease liability is initially measured at the present value of the outstanding lease payments on the
commencement date of the lease term. The lease payment amount includes: 1) the fixed payment amount
(including the substantial fixed payment amount). If there is a lease incentive, the lease incentive related amount
shall be deducted; 2) variable lease payments depending on the index or ratio; 3) the amount expected to be paid
according to the security residual value provided by the lessee; 4) the exercise price of the purchase option, the
premise is that the lessee is reasonable to determine the exercise of the option; 5) Payment for exercising the
option to terminate the lease, provided that the lease term reflects that the lessee will exercise the option to
terminate the lease;
The Company uses the lease embedded interest rate as the discount rate; If it is impossible to reasonably
determine the interest rate embedded in the lease, the incremental borrowing rate of the Company shall be used as
the discount rate. The Company calculates the interest expense of the lease liability in each period of the lease
term at a fixed periodic interest rate and records it as a financial expense. The cyclical rate refers to the discount
rate or the revised discount rate adopted by the Company.
Variable lease payments that are not included in the measurement of lease liabilities are recorded in current
profit and loss when they are actually incurred.
If the Company changes the evaluation result of the option to renew the lease, terminate the lease or purchase
the lease, it will re-measure the lease liability according to the present value calculated by the changed lease
payment amount and the revised discount rate, and adjust the book value of the right asset accordingly. In the
event of a change in the actual lease payment, the estimated payable amount of the guarantee residual or the
variable lease payment depending on the index or ratio, the lease liability shall be re-measured according to the
present value calculated by the changed lease payment and the original discount rate, and the carrying value of the
right asset shall be adjusted accordingly.
2. Accounting treatment of leased assets
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（1）Operating lease accounting treatment
In each period of the lease term, the Company adopts the straight-line method to recognize the lease receipts
from the operating leases as rental income. The Company capitalizes the initial direct expenses incurred in
connection with the operating lease and stages them into current earnings during the lease term on the same basis
of recognition as rental income.
（2）Accounting treatment of finance lease
On the lease commencement date, the Company recognizes the difference between the sum of the financial
lease receivable, the unguaranteed residual value and its present value as unrealized financing income, and
recognizes it as lease income in each period in which the rent is received in the future. The initial direct expenses
incurred by the Company in connection with the leasing transaction are included in the initial recorded value of
the finance lease receivable.
(XXIX) Explanation of changes in major accounting policies and accounting estimates
Since the first implementation of Interpretation of Accounting Standards No. 15 in 2022, the Company has
not involved the adjustment of the financial statements at the beginning of the first implementation year.
IV. Taxes
(I) Main taxes and tax rates
Taxes Tax bases Tax rates
The output tax shall be calculated on the basis of the sales of goods and taxable
Value-added tax service income calculated in accordance with the provisions of the tax law. After
13%、6%、5%、3%
(VAT) deducting the input tax allowed to be deducted in the current period, the balance shall
be the VAT payable.
For housing property levied on the basis of price, housing property tax is levied at the
Housing property rate of 1.2% of the balance after deducting 30% of the cost; for housing property
1.2%、12%
tax levied on the basis of rent, housing property tax is levied at the rate of 12% of rent
revenue.
Urban maintenance
Turnover tax payable 7%
and construction tax
Education surcharge Turnover tax payable 3%
Local education
Turnover tax payable 2%
surcharge
Enterprise income
Taxable income 15%、25%
tax
Taxpayers Income tax rate
The Company 25%
Nanjing Putian Telege Intelligent Building Co., Ltd 15%
Nanjing Putian Datang Information Electronic Co., Ltd. 15%
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Taxpayers Income tax rate
Taxpayers other than the above-mentioned 25%
(II) Tax preferential policies
1. Nanjing Putian Telege Intelligent Building Co., Ltd obtained high-tech enterprise certificate in November,
2021, valid for 3 years. From 2021 to 2023, the enterprise income tax shall be paid at the reduced tax rate of 15%.
2. The subsidiary, Nanjing Putian Datang Information Electronic Co., Ltd., obtained high-tech enterprise
certificate in November, 2021, valid for 3 years. From 2021 to 2023, the enterprise income tax shall be paid at the
reduced tax rate of 15%.
3. The subsidiaries, Nanjing Putian Datang Information Electronic Co., Ltd. awere certified as software
enterprises, and some of the software products produced by Nanjing South Telecommunications Company
Limited and Nanjing Putian Network Co., Ltd. are entitled to enjoy the preferential tax policy of VAT refund
upon collection in accordance with the provisions of Cai Shui [2011] No.100.
V. Notes to items of consolidated financial statements
1. Cash and bank balances
Items Closing balance Opening balance
Cash on hand 10,398,147.68 111,078,777.09
Cash in bank 57,712,441.89 53,098,903.02
Deposit money with finance company 11,989,032.69 14,113,164.10
Other cash and bank balances 80,099,622.26 178,290,844.21
Total 10,398,147.68 111,078,777.09
Details of other cash and bank balances
Items Closing balance Opening balance
Deposit for L/G 7,389,032.69 9,744,312.73
Frozen funds 4,600,000.00 4,368,851.37
Total 11,989,032.69 14,113,164.10
Note: Other cash and bank balances are restricted funds.
2. Notes receivable
(1) Categories
Items Closing balance Opening balance
Bank acceptance
Trade acceptance 11,898,532.36 24,728,859.51
Less: Provision for bad debts 594,926.62 1,236,442.98
Total 11,303,605.74 23,492,416.53
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（2）Notes receivable that have been endorsed or discounted at the end of the period and are not yet due on
the balance sheet date
The confirmation amount shall The confirmation amount
Items be terminated at the end of the has not been terminated at
period the end of the period
Bank acceptance
Trade acceptance 10,404,502.37 8,800,000.00
Total 10,404,502.37 8,800,000.00
The acceptor of a bank acceptance bill is a commercial bank. Due to the high creditworthiness of commercial
banks, the possibility of non payment upon maturity of the bank acceptance bill is low. Therefore, our company
will terminate the recognition of bank acceptance bills that have been endorsed or discounted. The drawer of
commercial acceptance bills is usually a state-owned enterprise or listed company with good commercial credit
and low default risk. Therefore, our company will terminate the recognition of endorsed commercial acceptance
bills. If the bill is not paid upon maturity, according to the provisions of the Bill Law, the company will still bear
joint and several liability to the holder.
(3) Provision for bad debts of notes receivable
Closing balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Amount % to total Amount proportion
(%)
Note receivable with bad debt
11,898,532.36 100.00 594,926.62 5.00 11,303,605.74
provision accrued on portfolio
Portfolio 1: trade acceptance bill 11,898,532.36 100.00 594,926.62 5.00 11,303,605.74
Total 11,898,532.36 —— 594,926.62 5.00 11,303,605.74
Opening balance
Categories Book balance Provision for bad debts
Provision proportion Carrying amount
Amount % to total Amount
(%)
Note receivable with bad debt
24,728,859.51 100.00 1,236,442.98 5.00 23,492,416.53
provision accrued on portfolio
Portfolio 1: trade acceptance
24,728,859.51 100.00 1,236,442.98 5.00 23,492,416.53
bill
Total 24,728,859.51 —— 1,236,442.98 5.00 23,492,416.53
1）Portfolio 1: Trade acceptance bills
Closing balance
aging
Book balance Provision for bad debts Provision proportion (%)
Within 1 year 11,898,532.36 594,926.62 5.00
Total 11,898,532.36 594,926.62 ——
(Continued)
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Opening balance
aging
Book balance Provision for bad debts Provision proportion (%)
Within 1 year 24,728,859.51 1,236,442.98 5.00
Total 24,728,859.51 1,236,442.98 ——
(3) Bad debt provisions for notes receivable accrual, recovered or reversed in the current period
Changes in the current period
Closing
Items Opening balance Write-
Accrual Recovery Others balance
off
Trade acceptance 1,236,442.98 -641,516.36 594,926.62
Total 1,236,442.98 -641,516.36 594,926.62
3. Accounts receivable
(1) Disclosure according to aging
Ages Closing balance Opening balance
Within 1 year 319,827,458.77 203,810,673.21
1 to 2 years 4,3813,657.06 55,260,839.75
2 to 3 years 24,947,085.34 29,870,212.97
3 to 4 years 19,282,729.01 20,763,649.56
4 to 5 years 21,253,346.84 23,809,632.03
Over 5 years 167,094,051.09 166,215,013.08
Less: Allowance for doubtful accounts 197,203,573.76 198,111,661.33
Total 399,014,754.35 301,618,359.27
(2) According to the bad debt calculation and withdrawal method classification disclosure
Closing balance
Categories Book balance Provision for bad debts
Provision
Amount % to total Amount
proportion (%)
Receivables with provision made on an individual
76,651,216.61 12.86 76,651,216.61 100.00
basis
Receivables with provision made on a collective
519,567,111.50 87.14 120,552,357.15 23.20
basis
Aging combination 519,567,111.50 87.14 120,552,357.15 23.20
Total 596,218,328.11 100.00 197,203,573.76 33.08
Opening balance
Categories Book balance Provision for bad debts
Provision
Amount % to total Amount
proportion (%)
Receivables with provision made on an individual
76,074,296.15 15.22 76,074,296.15 100.00
basis
Receivables with provision made on a collective
423,655,724.45 84.78 122,037,365.18 28.81
basis
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Opening balance
Categories Book balance Provision for bad debts
Provision
Amount % to total Amount
proportion (%)
Aging combination 423,655,724.45 100.00 122,037,365.18 28.81
Total 499,730,020.60 100.00 198,111,661.33 39.64
1）Accounts receivable with provision made on an individual basis
Provision for bad Provision
Debtors Book balance Reasons
debts proportion (%)
Unable to
Dongpo Xi Laos Co., Ltd. 19,708,086.54 19,708,086.54 100.00
recover
Unable to
Mr. Xu 17,591,683.74 17,591,683.74 100.00
recover
Unable to
China Tower Corporation Ltd. 13,819,926.92 13,819,926.92 100
recover
Unable to
Putian Information Technology Co. LTD 6,065,598.36 6,065,598.36 100
recover
Unable to
Ningbo Tianan Group switch Co., LTD 4,419,126.70 4,419,126.70 100
recover
Unable to
Other 15,046,794.35 15,046,794.35 100
recover
Total 76,651,216.61 76,651,216.61
2）Accounts receivable with provision made on an collective basis
① Aging combination
Closing balance Opening balance
Ages Provision for bad Provision Provision for bad Provision
Book balance Book balance
debts proportion (%) debts proportion (%)
Within 1
309,379,768.75 3,093,797.69 1.00 203,810,673.21 2,038,106.74 1.00
year
1 to 2
54,241,117.08 2,712,055.85 5.00 55,217,219.25 2,760,860.96 5.00
years
2 to 3
24,882,620.76 2,488,262.08 10.00 29,835,462.97 2,983,546.30 10.00
years
3 to 4
15,198,484.31 4,559,545.30 30.00 14,229,702.18 4,268,910.65 30.00
years
4 to 5
16,332,848.73 8,166,424.36 50.00 21,153,452.63 10,576,726.32 50.00
years
Over 5
99,532,271.87 99,532,271.87 100.00 99,409,214.21 99,409,214.21 100.00
years
Total 519,567,111.50 120,552,357.15 23.20 423,655,724.45 122,037,365.18 28.81
(3) Bad debt provision
Change in current period
Categories Opening balance Write- Closing balance
Accrual Recovery Other changes
off
Receivables with
provision made on a 122,037,365.18 -1,485,008.03 120,552,357.15
collective basis
Receivables with
76,074,296.15 576,920.46 76,651,216.61
provision made on an
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individual basis
Total 198,111,661.33 -908,087.57 197,203,573.76
(4) Details of the top 5 debtors with largest balances
Proportion to the total balance of Provision for bad
Debtors Book balance
accounts receivable (%) debts
Dongpo Xi Laos Co., Ltd. 19,708,086.54 3.31 19,708,086.54
Mr. Xu 17,591,683.74 2.95 17,591,683.74
China Railway Electrification Bureau
14,857,356.52 2.49 535,612.51
Group Co., LTD
China Tower Corperation Limited 13,819,926.92 2.32 13,819,926.92
China Railway 11 First Group electrical
11,167,222.11 1.87 379,801.19
Engineering Co., LTD
Total 77,144,275.83 12.94 52,035,110.90
4. Receivables financing
Items Closing balance Opening balance
Notes receivable (Bank acceptance) 13,936,406.72 32,347,277.62
5. Advances paid
(1) Age analysis
Closing balance Opening balance
Ages
Amount % to total Amount % to total
Within 1 year 6,497,586.53 55.39 5,870,068.98 57.64
1-2 years 690,742.07 5.89 409,519.84 4.02
2-3 years 2,746,824.40 23.41 794,780.12 7.80
Over 3 years 1,795,446.50 15.31 3,110,314.80 30.54
Total 11,730,599.50 100.00 10,184,683.74 100.00
(2) Details of the top 5 debtors with largest balances
Proportion to the total
Debtors Closing balance balance of advances paid
(%)
Zhengzhou Hounuo Information Technology Co., LTD 1,332,300.00 11.36
Guangzhou good network electrical technology Co., LTD 618,355.00 5.27
Guangneng Intelligent Equipment (Zhejiang) Co., LTD 490,000.00 4.17
Shenzhen Chuangxian photoelectric Co., LTD 461,140.00 3.93
Ningbo Gete electronic Technology Co., LTD 409,914.60 3.49
Total 3,311,709.60 28.22
6. Other receivable
Items Closing balance Opening balance
Other receivables 52,858,800.46 50,680,676.82
Less: Allowance for doubtful accounts 42,160,399.53 42,577,655.38
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Items Closing balance Opening balance
Total 10,698,400.93 8,103,021.44
（1）Other receivables categorized by nature
Categories Closing balance Opening balance
Temporary payment receivable 37,664,843.23 38,355,242.94
Security deposit 13,625,430.65 10,413,472.88
Travel allowance 157,742.92 444,303.97
Other 1,410,783.66 1,467,657.03
Less: Allowance for doubtful accounts 42,160,399.53 42,577,655.38
Total 10,698,400.93 8,103,021.44
（2）Age analysis
Ages Closing balance Opening balance
Within 1 year 8,901,198.08 4,826,760.69
1 to 2 years 3,064,326.55 3,553,362.18
2 to 3 years 1,230,564.70 1,800,397.30
3 to 4 years 1,703,399.51 1,735,195.43
4 to 5 years 1,585,678.85 2,500,896.37
Over 5 years 36,373,632.77 36,264,064.85
Less: Allowance for doubtful accounts 42,160,399.53 42,577,655.38
Total 10,698,400.93 8,103,021.44
（3）Changes in provision for bad debts
Phase I Phase II Phase III
Items 12-month expected Lifetime expected credit Lifetime expected credit Total
credit losses losses (credit not impaired) losses (credit impaired)
Opening balance 10,474,040.44 32,103,614.94 42,577,655.38
Provision for current
-417,255.85 -417,255.85
period
Closing balance 10,056,784.59 32,103,614.94 42,160,399.53
（4）Bad debt provision
Change in current period
Opening
Categories To withdraw or turn Cancel after Closing balance
balance Accrual Other changes
back verification
Provision for
42,577,655.38 -417,255.85 42,160,399.53
bad debts
（5）Details of the top 5 debtors with largest balances
Proportion to the
Nature of total balance of Provision for
Debtors Closing balance Ages
receivables other receivables bad debts
(%)
Beijing Likang general letter Temporary
28,912,122.71 Over 5 years 54.70 28,912,122.71
equipment Co., LTD payment
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Proportion to the
Nature of total balance of Provision for
Debtors Closing balance Ages
receivables other receivables bad debts
(%)
receivable
Nanjing Putian Within 1
Security
Communication Technology 2,910,139.76 year2,434,619.72，1- 5.49 2,910,139.76
deposit
Co., LTD 2year 475,520.04
Nanjing Putian Temporary
Communication Industry payment 805,545.63 Over3 years805,545.63 1.52 805,545.63
Co., LTD receivable
Beijing Lekang Property Security Within 1 year98,501.27 1-
394,005.08 0.74 19,700.25
Management Co., LTD deposit 2year 295,503.8
China Power Construction
Company Limited Bid bond 300,000.00 Within 1 year 0.57 15,000.00
Chongqing rail transit
Total 33,321,813.18 —— 63.02 32,662,508.35
7. Inventories
(1) Details
Closing balance Opening balance
Items Book Provision for Provision for
Carrying amount Book balance Carrying amount
balance write-down write-down
Raw
11,161,706.63 14,280,195.12 24,355,064.85 10,860,838.19 13,494,226.66
materials 25,441,901.75
Work in
7,029,791.06 2,660,490.69 4,369,300.37 5,436,730.59 2,660,490.69 2,776,239.90
process
Goods on
85,835,751.99 44,673,371.62 41,162,380.37 84,241,370.76 44,673,371.62 39,567,999.14
hand
Goods
149,540,530.9
dispatche 57,654,663.20 91,885,867.71 124,160,523.31 58,109,826.28 66,050,697.03
1
d
Products
on
consignm 3,253,487.04 804,691.99 2,448,795.05 1,614,307.52 804,691.99 809,615.53
ent for
sales
271,101,462.7
Total 116,954,924.13 154,146,538.62 239,807,997.03 117,109,218.77 122,698,778.26
5
(2) The increase or decrease of the inventory decline reserve and the impairment reserve of contract
performance cost
Increase amount in the current Decrease amount in the current
period period
Items Opening balance Closing balance
Reversal or
Accrual Others Others
write-off
Raw materials 10,860,838.19 300,868.44 11,161,706.63
Work in
2,660,490.69 2,660,490.69
process
Goods on hand 44,673,371.62 44,673,371.62
Goods
58,109,826.28 1,497.98 456,661.06 57,654,663.20
dispatched
Products on
consignment 804,691.99 804,691.99
for sales
Total 117,109,218.77 302,366.42 456,661.06 116,954,924.13
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The specific basis for determining the net realizable value and the reasons for turning back or selling the
inventory depreciation reserve in the current period.
Reasons for the reversal of inventory Reasons for the provision for
Specific basis for determining net realizable
Item depreciation provisions in the current depreciation of inventory sold
value
period in the current period
Net realizable value is determined by the During the current period, the
The net realizable value of
estimated selling price of the relevant finished inventory that was set aside
inventories for which provision was
Raw materials products less the estimated costs to be incurred for inventory depreciation at
made for inventory depreciation in
to completion, estimated sales expenses and the beginning of the period
previous periods increased
relevant taxes has been sold
The net realizable value of the inventory is The net realizable value of During the current period, the
determined by the estimated selling price of the inventories, which has been inventory that was set aside
Goods
inventory less estimated selling expenses and provided for the decline of for inventory depreciation at
dispatched
related taxes in the normal course of production inventories in previous periods, the beginning of the period
and operation increased has been sold
The net realizable value of the inventory is During the current period, the
The net realizable value of
determined by the estimated selling price minus inventory that was set aside
inventories for which provision was
Goods on hand the estimated selling expenses and relevant for inventory depreciation at
made for inventory depreciation in
taxes in the normal course of production and the beginning of the period
previous periods increased
operation has been sold
8. Other current assets
Items Closing balance Opening balance
Input tax to be deducted 3,385,829.40 3,349,668.12
Advance payment of income tax 978,112.06 141,091.78
Total 4,363,941.46 3,490,759.90
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9. Long-term equity investments
Increase/Decrease
Investment Closing
income Adjustment in Cash balance of
Opening Changes Provision Closing
Investees Investments Investments recognized other dividend/Profit provision
balance in other for Others balance
increased decreased under comprehensive declared for for
equity impairment impairment
equity income distribution
method
I. Subsidiary 1,294,510.00 1,294,510.00 1,294,510.00
Nanjing Putian
Communication
1,294,510.00 1,294,510.00 1,294,510.00
Technology
Co., LTD
II. Joint
10,412,689.14 -66.50 10,412,622.64
ventures
Nanjing Puzhu
optical network 10,412,689.14 -66.50 10,412,622.64
Co., LTD
Total 11,707,199.14 -66.50 11,707,132.64 1,294,510.00
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10. Other equity instrument investments
The reason
designated as
Amount of
measurement Other
other
at fair value comprehensi
Dividen The comprehensi
Closing Opening The cumulative and its ve income is
Items d cumulativ ve income
balance balance income e gains
loss
transferred to
change transferred to
included in retained
retained
other earnings
earnings
comprehensi
ve income
Nanjing
Yuhua
420,915.00 420,915.00
electroplating
factory
Hangzhou
Hongyan
Electric 321,038.00 321,038.00
Appliance
Co., LTD
Beijing
Likang
general letter 1,854,910.00
equipment
Co., LTD
Total 741,953.00 741,953.00 1,854,910.00
Note: The investment in Nanjing Yuhua Electroplating Factory, Hangzhou Honyar Electrical Co.,Ltd. and Beijing
Likong Communication Equipment Co., Ltd. are classified as other equity instrument investments, the Company
measured it at fair value through other comprehensive income.
11. Investment property
(1) Investment real estate measured at cost
Items Buildings and structures Total
I.Original book value
1. Opening balance 40,129,313.41 40,129,313.41
2. Increase
(1) External purchase
(2) Transfer of fixed assets
3. Decrease
(1) Disposal
(2) Other transfer out
4. Closing balance 40,129,313.41 40,129,313.41
II.Accumulated depreciation and amortization
1. Opening balance 21,002,234.66 21,002,234.66
2. Increase 612,080.67 612,080.67
(1) Accrual or amortization 612,080.67 612,080.67
(2) Transfer of fixed assets
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Items Buildings and structures Total
3. Decrease
(1) Disposal
(2) other transfer out
4. Closing balance 21,002,234.66 21,002,234.66
III,Provision for impairment
IV.Carrying amount
1. Closing balance 19,127,078.75 19,127,078.75
2. Opening balance 20,351,240.03 20,351,240.03
12. Fixed assets
Categories Closing balance Opening balance
Fixed assets 91,204,738.16 94,480,062.75
Liquidation of fixed assets
Less: Impairment provision 725,962.56 725,962.56
Total 90,478,775.60 93,754,100.19
(1) Fixed assets
1）Details
Buildings and Machinery Electronic Transport Other
Items Total
structures equipment equipment facilities equipment
I. Original book value
1. Opening balance 121,830,342.65 47,966,511.94 21,750,073.21 3,365,460.28 17,523,627.35 212,436,015.43
2. Increase 17,915.93 54,821.58 175,981.16 248,718.67
(1) Acquisition 17,915.93 54,821.58 175,981.16 248,718.67
3. Decrease 16,923.08 16,923.08
(1) Disposal or scrapping 16,923.08 16,923.08
4. Closing balance 121,830,342.65 47,984,427.87 21,804,894.79 3,365,460.28 17,682,685.43 212,667,811.02
II.Accumulated depreciation
1. Opening balance 52,260,186.12 28,340,652.66 17,891,957.09 3,130,014.89 16,333,141.92 117,955,952.68
2. Increase 2,134,424.71 821,678.93 461,468.92 25,540.29 80,422.72 3,523,535.57
（1）accrual 2,134,424.71 821,678.93 461,468.92 25,540.29 80,422.72 3,523,535.57
3. Decrease 16,415.39 16,415.39
(1) Disposal/Scrapping 16,415.39 16,415.39
4. Closing balance 54,394,610.83 29,162,331.59 18,353,426.01 3,155,555.18 16,397,149.25 121,463,072.86
III.Provision for impairment
1. Opening balance 539,124.00 11,550.65 - - 175,287.91 725,962.56
2. Closing balance 539,124.00 11,550.65 - - 175,287.91 725,962.56
IV. Carrying amount
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Buildings and Machinery Electronic Transport Other
Items Total
structures equipment equipment facilities equipment
1. Closing balance 66,896,607.82 18,810,545.63 3,451,468.78 209,905.10 1,110,248.27 90,478,775.60
2. Opening balance 69,031,032.53 19,614,308.63 3,858,116.12 235,445.39 1,015,197.52 93,754,100.19
2）Fixed assets temporarily idle
Original book Accumulated Provision for Carrying
Items Remarks
value depreciation impairment amount
Machinery equipment 219,385.00 202,981.30 11,550.65 4,853.05
Electronic equipment 36,000.00 34,920.00 1,080.00
Other equipment 342,985.18 157,407.73 175,287.91 10,289.54
Total 598,370.18 395,309.03 186,838.56 16,222.59
3）Fixed assets leased under operating leases as of June 30, 2024
Items Carrying amount
Buildings and structures 10,900,943.62
4）Fixed assets with certificate of titles being unsettled
Items Carrying amount Reasons for unsettlement
Buildings and structures 2,042,939.68 In process
13. Construction in progress
Categories Closing balance Opening balance
Construction in progress project 5,906.53
Total 5,906.53
1. Projects under construction
(1) Basic information of construction projects in progress
Closing balance Opening balance
Items Provision Provision
Book Carrying Book Carrying
for for
balance amount balance amount
impairment impairment
Renewal and transformation 5,906.53 5,906.53
14. Usufruct assets
Items Machinery and equipment Total
Original book value
1. Opening balance
2. Increased amount for the current
2,686,684.00 2,686,684.00
period
(1) New lease 2,686,684.00 2,686,684.00
3. Closing balance 2,686,684.00 2,686,684.00
Accumulated depreciation
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Items Machinery and equipment Total
1. Opening balance
2. Increased amount for the current
108,586.80 108,586.80
period
(1) Provision 108,586.80 108,586.80
3. Closing balance 108,586.80 108,586.80
Book value
1. Ending book value 2,578,097.20 2,578,097.20
2. Opening book value
15. Intangible assets
(1) Details
Items Software Land use right Total
I. Original book value
1. Opening balance 11,593,450.55 26,656,046.83 38,249,497.38
2. Increase 9,600.00 9,600.00
（1）other 9,600.00 9,600.00
3. Decrease
（1）other
4. Closing balance 11,603,050.55 26,656,046.83 38,259,097.38
II.Accumulated depreciation
1. Opening balance 10,200,943.41 8,415,682.46 18,616,625.87
2. Increase 52,607.97 355,436.59 408,044.56
（1）accrual 52,607.97 355,436.59 408,044.56
（2）other
3. Decrease
（1）other
4. Closing balance 10,253,551.38 8,771,119.05 19,024,670.43
III. Carrying amount
1. Closing balance 1,349,499.17 17,884,927.78 19,234,426.95
2. Opening balance 1,392,507.14 18,240,364.37 19,632,871.51
16. Long-term prepayments
Items Opening balance Increase Amortization Other decrease Closing balance
Renovation expenditure 2,299,773.18 646,268.55 487,899.05 220,616.00 2,237,526.68
17. Deferred tax assets and deferred tax liabilities
(1) Details of unrecognized deferred tax assets
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Items Closing balance Opening balance
Deductible temporary difference 344,666,499.92 361,055,451.02
Deductible losses 286,167,413.11 250,920,070.63
Total 630,833,913.03 611,975,521.65
(2) Maturity years of deductible losses of unrecognized deferred tax assets
Maturity years Closing balance Opening balance Remarks
Year 2023
Year 2024 105,985,653.23 105,985,653.23
Year 2025 3,031,582.45 3,031,582.45
Year 2026 67,207,331.67 67,207,331.67
Year 2027 55,359,032.59 55,359,032.59
Year 2028 10,349,408.51 10,349,408.51
Year 2029 1,622,476.49 1,622,476.49
Year 2030 1,188,328.53 1,188,328.53
Year 2031 9,791,047.64 9,791,047.64
Year 2032 3,128,208.76 3,128,208.76
Year 2033 338,021.95 338,021.95
Total 258,001,091.82 258,001,091.82
18. Other non-current assets
Items Closing balance Opening balance
Long-term asset purchase 40,899.00
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19. Assets with limited ownership or use rights
Closing balance Opening balance
Items
Book balance Book value Restricted type Restricted case Book balance Book value Restricted type Restricted case
Involving litigation bank
Other cash Bank freeze 4,600,000，
freeze 4,368,851.37，
and bank 12,068,763.77 12,068,763.77 Freeze and deposit Guarantee deposit 14,113,164.10 14,113,164.10 Freeze and deposit
balances Guarantee deposit
7,468,763.77
9,744,312.73
Fixed Real estate and land Real estate and land
62,091,803.35 24,760,171.60 pledge 37,958,367.23 23,546,470.68 pledge
assets mortgages, etc mortgages, etc
Intangible Real estate and land Real estate and land
7,837,407.40 5,136,398.40 pledge 5,033,207.40 3,344,930.14 pledge
assets mortgages, etc mortgages, etc
Investment Real estate and land
10,079,382.06 3,479,906.65 pledge
real estate mortgages, etc
Total 92,077,356.58 45,445,240.42 57,104,738.73 41,004,564.92 --
Other instructions： We remind users of financial statements that, apart from the above assets with title or use right restrictions, in order to entrust the parent company to apply for
loans from Bank of Beijing, Jiangning Sub-branch, the Company pledged its holding equities to the parent company, which include equity of Nanjing South Telecommunications Co Ltd.
33.17 million yuan(96.99% shares of stock equity), equity of Nanjing Putian Telege Intelligent Building Co., Ltd. 4.80 million yuan(40% shares of stock equity), equity of Nanjing
Putian Changle Telecommunications Equipment Co., Ltd. 5.07 million yuan(50.7% shares of stock equity), equity of Nanjing Putian Network Co., Ltd. 7.80 million yuan(78% shares of
stock equity), equity of Nanjing Mennekes Electric Co., Ltd. 41.14 million yuan (100% shares of stock equity ). The Company has registered the equity pledge at Nanjing Jiangning
Market Supervision Administration. Those equities are with use restrictions before released.
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20. Short-term borrowings
(1) Details
Borrowing conditions Closing balance Opening balance
Pledged borrowings
Mortgaged borrowings 7,300,000.00 16,015,446.08
credit borrowings 99,410,779.97 53,847,877.85
Total 106,710,779.97 69,863,323.93
21. Notes payable
Items Closing balance Opening balance
Banker's acceptance 7,485,970.40 7,885,557.80
Trade acceptance 3,204,792.00 1,776,746.00
Total 10,690,762.40 9,662,303.80
22. Accounts payable
(1) Classified by account age
Items Closing balance Opening balance
Within 1 year (including 1 year) 265,068,028.41 261,624,545.57
More than 1 year 109,661,879.23 135,969,220.70
Total 374,729,907.64 397,593,766.27
(2) Significant accounts payable with age over one year
Name of creditor Closing balance Reasons for unsettlement
Nanjing Puzhu optical network Co., LTD 20,568,725.66 Not settled
Total 20,568,725.66
23. Advances received
Items Closing balance Opening balance
Within 1 year (including 1 year) 452,216.54
More than 1 year
Total 452,216.54
24. Contract liabilities
Items Closing balance Opening balance
Payment for goods 14,916,159.30 16,720,781.30
1. Significant contract liabilities older than 1 year
Name of creditor Opening balance Reasons for unsettlement
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Name of creditor Opening balance Reasons for unsettlement
China Putian Information Industry
3,727,418.22 Not yet settled
Co. LTD
25. Employee benefits payable
(1) Details
Opening Closing
Items Increase Decrease
balance balance
Short-term employee benefits 17,771,367.37 67,171,069.00 67,516,176.23 17,426,260.14
Post-employment benefits - defined
9,213,287.14 9,213,287.14
contribution plan
Dismissal welfare 1,198,310.40 1,198,310.40
Total 17,771,367.37 77,582,666.54 77,927,773.77 17,426,260.14
(2) Details of short-term employee benefits
Opening Closing
Items Increase Decrease
balance balance
Wage, bonus, allowance and subsidy 3,625,349.25 49,838,633.01 49,838,633.01 3,625,349.25
Employee welfare fund 2,753,211.07 2,753,211.07
Social insurance premium 4,074,031.18 4,074,031.18
Including: Medicare premium 3,563,985.96 3,563,985.96
Occupational injuries premium 232,374.92 232,374.92
Maternity premium 277,670.30 277,670.30
Housing provident fund 3,216,865.05 4,612,851.86 4,612,851.86 3,216,865.05
Trade union fund and employee
10,914,156.54 309,803.20 654,910.43 10,569,049.31
education fund
Others 14,996.53 5,582,538.68 5,582,538.68 14,996.53
Total 17,771,367.37 67,171,069.00 67,516,176.23 17,426,260.14
(3) Details of defined contribution plan
Opening
Items Increase Decrease Closing balance
balance
Basic endowment insurance premium 8,829,914.83 8,829,914.83
Unemployment insurance premium 383,372.31 383,372.31
Total 9,213,287.14 9,213,287.14
26. Taxes payable
Items Closing balance Opening balance
Value-added tax 971,056.85 2,627,413.82
Enterprise income tax 2,064,588.36
Individual income tax 107,009.73 155,936.50
City maintenance and construction tax 54,069.17 212,899.11
House tax 262,194.29 278,347.94
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Items Closing balance Opening balance
Land use tax 74,502.60 76,065.10
Education fee surcharge, local education
36,478.32 149,928.29
fee surcharge
Other tax 13,316.23 65,813.19
Total 1,518,627.19 5,630,992.31
27. Other payables
Items Closing balance Opening balance
Dividend payable 10,846,600.00 5,692,213.38
Other payables 43,788,894.39 41,427,529.15
Total 54,635,494.39 47,119,742.53
(1) Dividend payable
Items Closing balance Opening balance
Dividend of ordinary shares 10,846,600.00 5,692,213.38
(2) Other payables
1）Classification by nature of funds
Items Closing balance Opening balance
Suspense receivable 34,052,950.64 32,498,657.42
Installation costs not accounted for 116,487.88 231,627.19
Security deposit 2,590,691.65 2,904,038.29
Operating expenses 5,297,122.26 4,891,257.87
Others 1,731,641.96 901,948.38
Total 43,788,894.39 41,427,529.15
2）Important other payables older than 1 year or overdue
Reasons not reimbursed or carried
Unit name Closing balance
forward
China Putian Information Industry Group The settlement terms have not been
9,580,000.00
Co. LTD met
total 9,580,000.00
28. Other current liabilities
Items Closing balance Opening balance
Amount of tax to be resold 1,709,382.65 1,595,107.01
indorsement 847,582.07
total 2,556,964.72 1,595,107.01
29. Long-term borrowings
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Interest rate
Items Closing balance Opening balance
range
Pledged borrowings 175,992,705.56 176,011,976.11 3.75%-4.05%
30. Lease liability
Items Closing balance Opening balance
Lease payment 2,567,161.78
Less: Financing charges not recognized 135,679.05
Less: Lease liabilities due within one
year
total 2,431,482.73
31. Capital stock
Movements
Opening Issue Conversion Closing
Items Share
balance new of provident Others Subtotal balance
dividend
shares fund shares
Total shares 215,000,000.00 215,000,000.00
32. Capital reserve
Items Opening balance Increase Decrease Closing balance
Capital premium (equity
137,786,640.63 137,786,640.63
premium)
Other capital reserves 59,311,274.77 857,952.18 60,169,226.95
Total 197,097,915.40 857,952.18 197,955,867.58
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33. Treasury stock
Items Opening balance Increase Decrease Closing balance
Repurchase stock 1,425,412.05 1,425,412.05
34. Other comprehensive income (OCI)
Current period cumulative
Less: Other
Less: Other comprehensive
Current period comprehensive income recorded Attributable Closing
Items Opening balance Less: Attributable to
cumulative income in the in the previous to non- balance
Income parent
before income previous period period is controllin g
tax company
tax is transferred to transferred to shareholders
profit and loss retained income in
the current period
Other comprehensive income
-1,854,910.00 -1,854,910.00
reclassified into profit and loss
Including: The amount of financial
assets reclassified into other -1,854,910.00 -1,854,910.00
comprehensive income
Total -1,854,910.00 -1,854,910.00
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35. Surplus reserve
Items Opening balance Increase Decrease Closing balance
Statutory surplus reserve 589,559.77 589,559.77
36. Undistributed profit
Preceding period
Items Current period cumulative
comparative
Undistributed profit at the end of the previous period
-405,721,306.51 -388,837,228.89
before adjustment
Adjustment of total undistributed profit at the beginning
of the period (increase +, decrease -)
Adjust the undistributed profit at the beginning of the
-405,721,306.51 -388,837,228.89
later period
Add: Net profit attributable to the owner of the parent
-9,457,810.54 -10,961,896.92
company for the period
Less: Appropriation of statutory surplus reserve
Withdraw arbitrary surplus reserve
Dividend payable on ordinary shares
Common stock dividends converted into capital
stock
Closing balance -415,179,117.05 -399,799,125.81
37. Operating revenue/Operating cost
(1) Details
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
I.Main operations 336,079,406.23 259,256,021.52 383,298,786.87 299,488,292.86
II.Other operations 12,906,834.69 5,182,727.21 9,241,090.82 3,710,714.81
Total 348,986,240.92 264,438,748.73 392,539,877.69 303,199,007.67
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(2) Current operating income is classified according to the time of revenue recognition
Revenue recognition time Income from main business Other business income
Confirm at a certain point 336,079,406.23 11,284,031.12
38. Taxes and surcharges
Preceding period
Items Current period cumulative
comparative
City maintenance and construction tax 384,786.01 621,601.17
Education fee surcharge, local education fee surcharge 274,847.18 443,890.10
House tax 891,842.13 730,291.64
Land use tax 227,553.24 227,340.96
Other tax 334,683.26 164,525.82
Total 2,113,711.82 2,187,649.69
39. Selling expenses
Preceding period
Items Current period cumulative
comparative
Employee benefits 25,421,151.68 28,376,975.75
Transportation and transportation damage 82,002.90 70,112.49
Business entertainment 4,991,275.17 6,506,817.74
Travel expense 2,055,425.91 2,266,403.30
Administrative expenses 714,051.79 375,760.72
Sales service fee 2,636,417.86 437,319.92
Business publicity expenses 138,486.21 383,834.27
Conference expense 433,988.25 444,398.37
Equipment maintenance fee 7,343.54
Others 3,760,041.97 1,694,363.47
Total 40,232,841.74 40,563,329.57
40. Administrative expenses
Preceding period
Items Current period cumulative
comparative
Employee benefits 22,289,020.01 24,081,525.57
Consulting and intermediary fees 2,253,277.69 2,060,359.67
Depreciation and amortization 2,333,672.81 2,635,224.08
Administrative expenses 1,417,075.15 1,293,967.44
Rental fee 667,598.28 1,199,627.72
Travel expense 464,118.77 197,048.41
Business entertainment 231,149.93 321,276.18
Others 861,770.95 888,920.17
Total 30,517,683.59 32,677,949.24
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41. R&D expenses
Preceding period
Items Current period cumulative
comparative
Employee benefits 14,357,492.47 14,555,116.56
Intermediate test fee 822,542.72 1,149,722.68
Travel expense 131,950.57 589,520.39
Material requisition 549,896.81 392,274.68
Depreciation and amortization 472,560.96 505,136.51
Commissioned development 93,578.24 1,513,752.55
Others 1,419,196.79 716,644.65
Total 17,847,218.56 19,422,168.02
42. Financial expenses
Preceding period
Items Current period cumulative
comparative
Interest expenditures 4,822,731.40 4,046,684.70
Less: Interest income 549,603.32 309,650.00
Losses on foreign exchange
Less: gain on foreign exchange 33,020.09
Financial institution fees 29,388.96 54,850.87
Others 651.60
Total 4,303,168.64 3,758,865.48
43. Other income
Related to
Current period Preceding period
Items assets/Related
cumulative comparative
to earnings
Provincial Engineering Technology Research
Center award, Provincial Enterprise Technology Income
1,000,000.00
Center award, Jiangsu Province special small and correlation
medium-sized enterprise award
Income
VAT plus deduction 875,867.67
correlation
Income
Software tax refund 266,839.35 1,025,464.15
correlation
Income
Nanjing Qinhuai District People's Government 60,000.00
correlation
Income
Budgetary revenue to be reported 34,957.20
correlation
Income
Personal income tax rebate 9,574.65
correlation
Receive subsidies from the management
committee of Nanjing Jiangning Economic and
Income
Technological Development Zone (intelligent 2,000.00
correlation
transformation, specialization and special new)
awards
Income
High declare subsidies 250,000.00
correlation
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Related to
Current period Preceding period
Items assets/Related
cumulative comparative
to earnings
2021 Jiangning District rescue eight freight Income
103,076.00
subsidy development zones supporting correlation
Income
Employee training subsidy 342,921.12
correlation
Income
other 142,183.11
correlation
Total 2,249,238.87 1,863,644.38
44. Investment income
Preceding period
Items Current period cumulative
comparative
Income from long-term equity investments accounted
-66.50 -9,717.35
for by the equity method
Investment gains from the disposal of trading financial
assets
Others 1,025,916.02 252,381.63
Total 1,025,849.52 242,664.28
45. Credit impairment loss
Preceding period
Items Current period cumulative
comparative
Bad debt loss of notes receivable 641,516.36 881,318.68
Bad debt loss of accounts receivable 908,087.57 308,415.47
Bad debt loss of other receivables 417,255.85 1,189,644.08
Total 1,966,859.78 2,379,378.23
46. Assets impairment loss
Preceding period
Items Current period cumulative
comparative
Loss on inventory decline and impairment loss on
-302,366.42 -46,540.00
contract performance costs
47. Gains on asset disposal
Preceding period
Items Current period cumulative
comparative
Gain on disposal of fixed assets -468.86 42,412.44
48. Non-operating revenue
Preceding Amount included
Current period
Items period in non-recurring
cumulative
comparative profit or loss
Unpaid payables 2,292,392.19 2,292,392.19
Penalty income 49,576.26 51,484.34 49,576.26
Others 24,275.66
Total 2,341,968.45 75,760.00 2,341,968.45
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49. Non-operating expenditures
Preceding Amount included
Current period
Items period in non-recurring
cumulative
comparative profit or loss
Loss on damage and retirement of non-current assets 109,802.21
Penalty expenditure 25,000.00 624,965.01 25,000.00
Late fees paid 102,715.70 102,715.70
Others 673,039.29 92,732.56 673,039.29
Total 800,754.99 827,499.78 800,754.99
50. Income tax expenses
(1) Details
Preceding period
Items Current period cumulative
comparative
Current income tax expense calculated in accordance
933,363.12 598,186.15
with the tax law and relevant provisions
Others 436,741.79 -86,511.42
Total 1,370,104.91 511,674.73
(2) Accounting profit and income tax expense adjustment process
Items Amount
Profit before tax -3,986,805.81
Income tax expenses based on tax rate applicable to the parent company -996,701.45
Effect of different tax rate applicable to subsidiaries 1,406,556.14
Effect of prior income tax reconciliation
The impact of non-deductible costs, expenses and losses 213,392.82
The effect of deductible temporary differences or deductible losses on deferred tax assets
2,431,230.12
was not recognized in the current period
Deduction of R&D expenditures -3,097,386.86
other effects
Income tax expenses 1,370,104.91
51. Statement of cash flows
1. Cash related to operating activities
(1) Other cash receipts related to operating activities
Items Current period cumulative Preceding period comparative
Government grants 1,106,531.85 1,377,607.64
Interest income 549,603.32 307,689.80
Incomings and outgoings 23,790,106.78 27,363,612.17
Others 61,876.88
Total 25,446,241.95 29,110,786.49
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(2) Other cash payments related to operating activities
Items Current period cumulative Preceding period comparative
Out-of-pocket expenses 21,811,489.52 23,331,416.49
Incomings and outgoings 28,091,554.23 26,051,460.15
Others 286,225.67
Total 49,903,043.75 49,669,102.31
2. Cash related to fundraising activities
(1) Other cash receipts related to financing activities
Items Current period cumulative Preceding period comparative
Nanjing bank loan interest reduction refund 25,555.55
(2) Other cash payments related to financing activities
Items Current period cumulative Preceding period comparative
Installment financing lease payments 1,601,401.52
(3) Changes in various liabilities arising from fundraising activities
Increase in this period Decrease in this period
Opening
Items ending balance
balance
Non cash Non cash
Cash changes Cash changes
changes changes
Short-term
69,863,323.93 83,466,746.58 46,619,290.54 106,710,779.97
borrowings
long-term
176,011,976.11 192,705.56 175,992,705.56
loan
Total 245,875,300.04 83,466,746.58 192,705.56 46,619,290.54 282,703,485.53
52. Supplement information to the cash flow statement
1.Supplement information to the cash flow statement
Current period Preceding period
Items
cumulative comparative
I. Reconciliation of net profit to cash flow from operating
activities:
Net profit -5,356,910.72 -6,050,947.16
Add: Provision for assets impairment loss 302,366.42 46,540.00
Provision for credit impairment loss -1,966,859.78 -2,379,378.23
Depreciation of fixed assets, depletion of oil and gas assets,
depreciation of productive biological assets, and depreciation of 4,135,616.24 4,247,003.60
investment real estate
Depreciation of right-of-use assets 108,586.80
Amortization of intangible assets 408,044.56 452,346.09
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Current period Preceding period
Items
cumulative comparative
Amortization of long-term prepayments 488,283.61 756,292.56
Loss on disposal of fixed assets, intangible assets and other
468.86 -42,412.44
long-term assets (Less: gains)
Fixed assets retirement loss (Less: gains) 109,802.21
Financial assets measured at amortized cost are
derecognized for income
Losses on changes in fair value (Less: gains)
Financial expenses (Less: gains) 4,822,731.40 4,046,684.70
Investment losses (Less: gains) -1,025,849.52 -242,664.28
Decrease of deferred tax assets (Less: increase)
Increase of deferred tax liabilities (Less: decrease)
Decrease of inventories (Less: increase) -5,052,069.50 20,696,092.14
Decrease of operating receivables (Less: increase) -98,020,947.40 -49,712,436.69
Increase of operating payables (Less: decrease) -21,063,471.88 -58,009,405.97
Others
Net cash flows from operating activities -122,220,010.91 -86,082,483.47
II. Significant investing and financing activities not related to
cash receipts and payments:
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets leased in under finance leases
III. Net changes in cash and cash equivalents:
Cash at the end of the period 68,110,588.38 121,936,719.47
Less: Cash at the beginning of the period 164,177,680.11 164,384,741.39
Add: Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period
Net increase of cash and cash equivalents -96,067,091.73 -42,448,021.92
(2) Cash and cash equivalents
Current period Preceding period
Items
cumulative comparative
I. Cash 68,110,588.38 164,177,680.11
Including: Cash on hand
Cash in bank on demand for payment 68,110,588.38 164,177,680.11
Cash equivalents
Cash and cash equivalents at the end of the period 68,110,588.38 164,177,680.11
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VII. Changes in the consolidation scope
NONE.
VIII. Interest in other entities
(I) Interest in subsidiaries
1. Composition of subsidiaries
（1）Details
Main Holding proportion (%)
Place of Business Acquisition
Subsidiaries operating
registration nature Direct Indirect Method
place
Nanjing Putian
Changle
Nanjing City Nanjing City Manufacture 50.70 Set up
Telecommunications
Equipment Co., Ltd.
Nanjing Putian
Telege Intelligent Nanjing City Nanjing City Manufacture 45.77 Set up
Building Ltd.
Nanjing South
Telecommunications Nanjing City Nanjing City Manufacture 96.99 3.01 Set up
Company Limited
Merger of
enterprises
Nanjing Mennekes
Nanjing City Nanjing City Manufacture 100.00 under
Electric Co., Ltd.
different
control
Merger of
Nanjing Putian enterprises
Datang Information Nanjing City Nanjing City Manufacture 40.00 under
Electronic Co., Ltd. different
control
2.Notes
Remarks on inconsistency between holding proportion owned and voting rights proportion
owned in subsidiaries
a. The Company holds 45.767% of voting rights in Nanjing Putian Telege Intelligent Building
Ltd., the other voting rights are decentralized. The Company has over half member of the Board of
Directors, and it not only controls this company but also has a privileged variable return by taking
part in Nanjing Putian Telege Intelligent Building Ltd’s related activity. The Company has the
ability to impact the amount of return and control over Nanjing Putian Telege Intelligent Building
Ltd.
b. The company holds Nanjing Putian Datang Information Electronics Co., LTD. 40% equity,
the company in Nanjing Putian Datang information electronics Co., LTD. As the number of board
members more than half of the company's board of directors, has the power of Nanjing Putian
Datang information Electronics Co., LTD., Be able to enjoy variable returns by participating in
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relevant activities of Nanjing Putian Datang Information Electronics Co., LTD., and have the ability
to influence the amount of returns by using the power of Nanjing Putian Datang Information
Electronics Co., LTD., and be able to control Nanjing Putian Datang Information Electronics Co.,
LTD.
3. Significant not wholly-owned subsidiaries
Holding proportion Non-controlling Dividend declared to Closing balance of
Subsidiaries of non-controlling shareholders’ profit non-controlling non-controlling
shareholders or loss shareholders interest
Nanjing Putian
Telege Intelligent 54.23% 4,242,168.05 10,846,600.00 46,759,467.23
Building Ltd.
4. Main financial information of significant not wholly-owned subsidiaries
Closing balance
Subsidiaries Non-
Non-current Current Total
Current assets Total assets current
assets liabilities liabilities
liabilities
Nanjing Putian
Telege Intelligent 211,838,903.04 33,394,602.77 245,233,505.81 143,071,680.97 143,071,680.97
Building Ltd.
(continued)
Opening balance
Subsidiaries Non-
Non-current Current Total
Current assets Total assets current
assets liabilities liabilities
liabilities
Nanjing Putian
Telege Intelligent 246,175,267.24 34,479,857.17 280,655,124.41 167,761,746.25 167,761,746.25
Building Ltd.
Current period cumulative
Subsidiaries Total
Operating Cash inflow from
Net profit comprehensive
revenue operating activities
income
Nanjing Putian Telege Intelligent
160,947,779.17 9,268,446.68 9,268,446.68 -52,725,033.63
Building Ltd.
(continued)
Preceding period comparative
Subsidiaries Total
Operating Cash inflow from
Net profit comprehensive
revenue operating activities
income
Nanjing Putian Telege Intelligent
368,898,076.14 27,498,536.16 27,498,536.16 21,821,020.40
Building Ltd.
(II) Interest in joint venture or associates
1. Aggregated financial information of insignificant joint ventures and associates
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Closing
Opening balance/Preceding
Items balance/Current period
period comparative
cumulative
Joint ventures
Total carrying amount of investments 10,412,622.64 10,412,689.14
Proportionate shares in the following items:
Net profit -133.01 -19,434.71
Total comprehensive income -133.01 -19,434.71
VIV. Government subsidy
(一) Government grants recognised in profit or loss for the current period
Current period Preceding period
Items
cumulative comparative
Provincial Engineering Technology Research Center Award, Provincial
Enterprise Technology Center Award, Jiangsu Province Specialized, 1,000,000.00
Refined, Unique and New Small and Medium sized Enterprise Award
Value added tax additional deduction 875,867.67
Software tax refund 266,839.35 1,025,464.15
Qinhuai District People's Government of Nanjing City 60,000.00
Pending report of budgeted income 34,957.20
Personal income tax refund 9,574.65
Received subsidies and rewards from the Management Committee of
Nanjing Jiangning Economic and Technological Development Zone
2,000.00
(including smart transformation, digital transformation, specialization,
refinement, and innovation)
High tech enterprises apply for subsidies 250,000.00
2021 Jiangning District Relief Eight Freight Subsidies Development
103,076.00
Zone Supporting Facilities
Employee training subsidy 342,921.12
other 142,183.11
Total 2,249,238.87 1,863,644.38
X. Risks related to financial instruments
(I) Risk of financial instruments
The Company aims to seek the appropriate balance between the risks and benefits from its use
of financial instruments and to mitigate the adverse effects that the risks of financial instruments
have on the Company’s financial performance. Based on such objectives, the Company’s risk
management policies are established to identify and analyze the risks faced by the Company, to set
appropriate risk limits and controls, and to monitor risks and adherence to limits.
The Company has exposure to the following risks from its use of financial instruments, which
mainly include: credit risk, liquidity risk, and market risk. Management have deliberated and
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approved policies concerning such risks, and details are:
(II) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the
other party by failing to discharge an obligation.
1. Credit risk management practice
(1) Evaluation method of credit risk
At each reporting date, the Company assesses whether the credit risk on a financial instrument
has increased significantly since initial recognition. When assessing whether the credit risk has
increased significantly since initial recognition, the Company takes into account reasonable and
supportable information, which is available without undue cost or effort, including qualitative and
quantitative analysis based on historical data, external credit risk rating, and forward-looking
information. The Company determines the changes in default risk of financial instruments during the
estimated lifetime through comparison of the default risk at the balance sheet date and the initial
recognition date, on an individual basis or a collective basis.
The Company considers the credit risk on a financial instrument has increased significantly
when one or more of the following qualitative and quantitative standards are met:
1) Quantitative standard mainly relates to the scenario in which, on the balance sheet date, the
probability of default in the remaining lifetime has risen by more than a certain percentage compared
with the initial recognition;
2) Qualitative standard mainly relates to significant adverse changes in the debtor’s operation or
financial position, present or expected changes in technology, market, economy or legal environment
that will have significant adverse impact on the debtor’s repayment ability;
(2) Definition of default and credit-impaired asset
The Company defines a financial asset as in default when the financial instrument meets one or
more of the following criteria, which are consistent with the definition of credit impairment incurred:
1) significant financial difficulty of the debtor;
2) a breach of binding clause of contract;
3) it is very likely that the debtor will enter bankruptcy or other financial reorganization;
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4) the creditor of the debtor, for economic or contractual reasons relating to the debtor’s
financial difficulty, having granted to the debtor a concession(s) that the creditor would not
otherwise consider.
2. Measurement of expected credit losses
The key factors in the measurement of expected credit loss include the probability of default,
loss rate of default, and exposure to default risk.
3. The opening balance and closing balance of loss provision for financial instruments are
detailed in Notes V(2), V(3), V(5) and V(6) to these financial statements.
4. Exposure to credit risk and concentration of credit risk
The Company’s credit risk is primarily attributable to cash and bank balances and receivables.
In order to control such risks, the Company has taken the following measures:
(1) Cash and bank balances
The Company deposits its bank balances and other cash and bank balances in financial
institutions with relatively high credit levels, hence, its credit risk is relatively low.
(2) Receivables
The Company performs credit assessment on customers who uses credit settlement on a
regular/continuous basis. The Company selects credible and well-reputed customers based on credit
assessment result, and conducts ongoing monitoring on receivables, to avoid significant risks in bad
debts.
As the Company's accounts receivable risk points are distributed across multiple partners and
multiple customers, 12.94% of the Company's accounts receivable as of June 30, 2024 (Dec 31,
2023: 14.16%) originated from the top five customers with balances, and the Company does not
have significant credit concentration risk.
The maximum amount of exposure to credit risk of the Company is the carrying amount of each
financial asset on the balance sheet.
(III) Liquidity risk
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting
obligations associated with cash or other financial assets settlement, which is possibly attributable to
failure in selling financial assets at fair value on a timely basis, or failure in collecting liabilities from
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counterparts of contracts, or early redemption of debts, or failure in achieving estimated cash flows.
In order to control such risk, the Company utilized financing tools such as notes settlement,
bank borrowings, etc. and adopts long and short financing methods to optimizing financing
structures, and finally maintains a balance between financing sustainability and flexibility. The
Company has obtained credit limit from several commercial Nanjing Putian Telecommunications
Co., Ltd. 2021 Annual Report 187 banks to meet working capital requirements and expenditures.
Financial instruments classified based on remaining time period till maturity
Closing balance
Items Contract amount not
Carrying amount Within 1 year 1-3 years Over 3 years
yet discounted
Short-term borrowings 106,710,779.97 106,710,779.97 106,710,779.97
Notes payable 10,690,762.40 10,690,762.40 10,690,762.40
Accounts payable 374,729,907.64 374,729,907.64 374,729,907.64
Other payable 54,635,494.39 54,635,494.39 54,635,494.39
Subtotal 546,766,944.40 546,766,944.40 546,766,944.40
(Continued)
Opening balance
Items Contract amount not
Carrying amount Within 1 year 1-3 years Over 3 years
yet discounted
Short-term borrowings 69,863,323.93 69,863,323.93 69,863,323.93
Notes payable
Accounts payable 397,593,766.27 397,593,766.27 397,593,766.27
Other payable 47,119,742.53 47,119,742.53 47,119,742.53
Subtotal 514,576,832.73 514,576,832.73 514,576,832.73
(IIII) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value of financial
instruments or future cash flows due to changes in market price.
1. Interest risk
Interest risk is the risk that an enterprise may encounter fluctuation in fair value of financial
instruments or future cash flows due to changes in market interest. The Company’s fair value interest
risks arise from fixed-rate financial instruments, while the cash flow interest risks arise from floating
interest financial instruments. The Company determines the proportion of fixed-rate financial
instruments and floating interest rate financial instruments based on the market environment, and
maintains a proper financial instruments portfolio through regular review and monitoring. The
Company’s interest risk relates mainly to bank borrowings with floating interest rate
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2. Foreign currency risk
Foreign exchange risk refers to the risk that the fair value or future cash flow of a financial
instrument may fluctuate due to changes in foreign exchange rates. The Company operates in
mainland China and its main activities are denominated in renminbi, so the Company's exposure to
foreign exchange movements is not material. The Company's foreign currency monetary assets and
liabilities at the end of the period are detailed in the relevant notes to the financial statements.
XI. Fair value
(I) Details of fair value of assets and liabilities at fair value at the balance sheet date
Level 1 fair value Level 2 fair value Level 3 fair value Closing
Items
measurement measurement measurement balance
I. Recurring fair value
measurement
（1）Other equity instrument
741,953.00 741,953.00
investments
Total assets at recurring fair
741,953.00 741,953.00
value measurement
I I .Non-continuous fair value
measurement
（一）Financing of receivables 13,936,406.72 13,936,406.72
Total assets that are not
consistently measured at fair 13,936,406.72 13,936,406.72
value
(II) Valuation technique(s) and key input(s) for level 3 fair value at recurring and non-recurring
fair measurement
1. For notes receivable, measured at par value.
2. For other equity instrument investments including Nanjing Yuhua Electroplating Factory and
Hangzhou Honyar Electrical Co.,Ltd., due to no changes of operating environment and conditions
and financial conditions of the invested enterprises, the Company measured at investment cost.
3. For other equity instrument investments including Beijing Likangpu Communication
Equipment Co., Ltd., due to deterioration of operating environment and conditions and financial
conditions of the invested enterprises, the Company measured at zero value.
XII. Related party relationships and transactions
(I) Parent company
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Voting right
Registered Holding
proportion
Parent Business proportion over
Place of registration capital（Ten over the
company nature the Company
thousand yuan） Company
(%)
(%)
China Electric No.359 Jiangdong Middle Electronic
Power Rui Group Road, Jianye District, equipment 1,000,000,000.00 53.49 53.49
Co., LTD Nanjing manufacturing
The ultimate control party is China Electronics Technology Group Co., LTD.
(II) Status of the Company's subsidiaries
See Note "VIII. Interests in Other Entities" for details.
(III) Joint ventures and associates of the Company
For the important joint ventures or associates of the enterprise, see Note "VIII. Interests in
Other Entities", other joint ventures or associates that have related party transactions with the
Company in the current period, or have a balance of related party transactions with the Company in
the previous period.
Joint ventures or associates Relationships with the Company
SEI-Nanjing Putian Optical Network Co., Ltd. Joint ventures
(IV) Other related parties of the Company
Related parties Relationships with the Company
China Electronics Technology (Nanjing) Electronic Information
An affiliated company of the ultimate controlling party
Development Co., Ltd
Hangzhou Hikvision Technology Co., Ltd An affiliated company of the ultimate controlling party
Nanjing Putian Hongyan Electrical Technology Co., Ltd An affiliated company of the ultimate controlling party
Putian High tech Industry Co., Ltd An affiliated company of the ultimate controlling party
The 28th Research Institute of China Electronics Technology
An affiliated company of the ultimate controlling party
Group Corporation
Nanjing Lop Co., Ltd An affiliated company of the ultimate controlling party
Guorui Technology Co., Ltd An affiliated company of the ultimate controlling party
China Electronics Technology Group Corporation 14th
An affiliated company of the ultimate controlling party
Research Institute
Nanjing Laisi Information Technology Co., Ltd An affiliated company of the ultimate controlling party
Hebei Far East Communication System Engineering Co., Ltd An affiliated company of the ultimate controlling party
Nanjing Guorui Xinwei Software Co., Ltd An affiliated company of the ultimate controlling party
Nanjing Meichen Microelectronics Co., Ltd An affiliated company of the ultimate controlling party
Nanjing Rail Transit System Engineering Co., Ltd An affiliated company of the ultimate controlling party
Hangzhou Hongyan Electric Power and Electrical Co., Ltd An affiliated company of the ultimate controlling party
Nanjing Lop Technology Co., Ltd An affiliated company of the ultimate controlling party
Nanjing Guorui Defense System Co., Ltd An affiliated company of the ultimate controlling party
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Related parties Relationships with the Company
Dongfang Communication Co., Ltd An affiliated company of the ultimate controlling party
Tianbo Electronic Information Technology Co., Ltd An affiliated company of the ultimate controlling party
China Electronics Technology Group Corporation 48th
An affiliated company of the ultimate controlling party
Research Institute
Zhongdian Technology Taili Communication Technology Co.,
An affiliated company of the ultimate controlling party
Ltd. Xining Branch
China Electronics Technology Corporation Taili Communication
An affiliated company of the ultimate controlling party
Technology Co., Ltd. Yinchuan Branch
Taiji Computer Co., Ltd An affiliated company of the ultimate controlling party
Putian Rail Transit Technology (Shanghai) Co., Ltd An affiliated company of the ultimate controlling party
China Electronics Technology Group Corporation Seventh
An affiliated company of the ultimate controlling party
Research Institute
China Electronics Technology East Communication Group Co.,
An affiliated company of the ultimate controlling party
Ltd
Liyang 28th Institute System Equipment Co., Ltd An affiliated company of the ultimate controlling party
Zhongdian Guorui Group Co., Ltd An affiliated company of the ultimate controlling party
China Putian Information Industry Co., Ltd An affiliated company of the ultimate controlling party
China Electronics Technology Finance Co., Ltd An affiliated company of the ultimate controlling party
China Electronics Technology Leasing Co., Ltd An affiliated company of the ultimate controlling party
China Electronics Technology Putian Technology Co., Ltd An affiliated company of the ultimate controlling party
SHANGHAI POTEVIO Co Ltd An affiliated company of the ultimate controlling party
Putian Information Technology Co., Ltd An affiliated company of the ultimate controlling party
Putian Communication Co., Ltd An affiliated company of the ultimate controlling party
China Electronics Technology Corporation Taili Communication
An affiliated company of the ultimate controlling party
Technology Co., Ltd
Sichuang Electronics Co., Ltd An affiliated company of the ultimate controlling party
Hangzhou Hikvision Digital Technology Co., Ltd. Nanjing
An affiliated company of the ultimate controlling party
Branch
Nanjing Hikvision Digital Technology Co., Ltd An affiliated company of the ultimate controlling party
Hangzhou Hongyan Electric Appliance Co., Ltd An affiliated company of the ultimate controlling party
Beijing Likang Pingxin Equipment Co., Ltd A subsidiary of the company
Nanjing Putian Information Technology Co., Ltd An affiliated company of the ultimate controlling party
China Putian Information Industry Group Co., Ltd An affiliated company of the ultimate controlling party
(V) Related party transactions
1. Purchase of goods, receiving of services
Content of Current period Preceding period
Related parties
transaction cumulative comparative
CLP Technology (Nanjing) Electronic Information Telecommunication
10,133,637.17 236,439.39
Development Co., LTD products
Telecommunication
Hangzhou Hikvision Technology Co., LTD 566,256.71
products
Nanjing Putian Hongyan Electric Technology Co., Telecommunication
197,923.02 293,753.99
LTD products
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2. Sale of goods, rendering of services
Current period Preceding period
Related parties Content of transaction
cumulative comparative
The 28th Research Institute of China Telecommunication
10,571,709.48 8,735,812.40
Electronics Technology Group Corporation products
Telecommunication
Nanjing Lop Co., LTD 3,201,174.26
products
Telecommunication
Guorui Technology Co., Ltd 3,079,976.36
products
The 14th Research Institute of China Telecommunication
2,677,186.98 3,500,757.44
Electronics Technology Group Corporation products
Nanjing Laisi Information Technology Co., Ltd service fee 1,219,731.86
Hebei Far East Communication System Telecommunication
1,049,135.44 878,746.90
Engineering Co., Ltd products
Telecommunication
Nanjing Guorui Xinwei Software Co., Ltd 908,293.79
products
Nanjing Meichen Microelectronics Co., Ltd Service charge 607,079.66
Nanjing Rail Transit System Engineering Co., Telecommunication
365,128.87 1,213,722.12
Ltd products
Hangzhou Hikvision Technology Co., Telecommunication
296,681.42
LTD products
Telecommunication
Nanjing Lop Co., LTD 258,413.13 113,151.77
products
Telecommunication
Nanjing Guorui Defense System Co., Ltd 158,357.76 1,159,161.82
products
Telecommunication
Dongfang Communication Co., Ltd 128,113.81 56,370.07
products
Tianbo Electronic Information Technology Co., Telecommunication
111,308.89 152,783.18
Ltd products
The 48th Research Institute of China Telecommunication
43,504.03
Electronics Technology Group Corporation products
Zhongdian Technology Taili Communication Telecommunication
32,743.37
Technology Co., Ltd. Xining Branch products
China Electronics Technology Corporation Taili Telecommunication
Communication Technology Co., Ltd. Yinchuan products 32,743.37
Branch
Telecommunication
Taiji Computer Co., Ltd 292,513.71
products
Putian Rail Transit Technology (Shanghai) Co., Telecommunication
286,150.44
Ltd products
The 7th Research Institute of China Electronics
Contract processing 252,293.57
Technology Group Corporation
China Electronics Technology East Telecommunication
80,998.50
Communication Group Co., Ltd products
Liyang 28th Institute System Equipment Co., Telecommunication
68,995.74
Ltd products
Nanjing Lop Co., Ltd service fee 52,110.62
3. Our company acts as the lessor
Lease income \ expenses Lease income and
Name of lessee Status of leased assets recognized in the current expenses confirmed in the
period previous period
Income from rent and
Nanjing Lop Co., LTD 197,619.05 197,619.05
property fees
China Electronics Technology
Income from rent and
Group Corporation 14th Research 1,413,979.03 1,075,252.26
property fees
Institut
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4. The company acts as the lessee：
Lease income \ expenses Lease income and
Name of Lessor Status of leased assets recognized in the current expenses confirmed in the
period previous period
Rent and management
Putian High tech Industry Co., Ltd 336,767.76 315,411.48
fee
5. Related party loans and interest expenses
Amount Commencement Maturity Whether the guarantee is
Name of related party
guaranteed date date mature
China Electric Power Rui Group
55.000.000.00 2023-04-03 2026-04-02 NO
Co., LTD
China Electric Power Rui Group
15.000.000.00 2023-06-25 2026-06-24 NO
Co., LTD
6. Related party entrusted loan and interest expense
Related transaction Current period Preceding period
Name of related party
content cumulative comparative
Principal of
China Putian Information Industry Co., Ltd 105,800,000.00 105,800,000.00
entrusted loan
China Putian Information Industry Co., Ltd Loan interest 2,166,255.00 2,145,771.94
Long term loan
China Electronics Technology Finance Co., Ltd 70,000,000.00 70,000,000.00
principal
Long term loan
China Electronics Technology Finance Co., Ltd 1,340,986.12
principal
Financing lease
China Electronics Technology Leasing Co., Ltd 2,428,798.73
principal
Financing lease
China Electronics Technology Leasing Co., Ltd 92,430.25
principal
7. Key management’s emoluments
Items Current period cumulative Preceding period comparative
Key management’s emoluments 1,957,209.00 1,518,223.00
(VI) Accounts receivable, accounts payable, related parties and other unsettled items
1. Accounts receivable
期末余额 期初余额
项目名称 关联方
账面余额 坏账准备 账面余额 坏账准备
Bank
deposits:
China Electronics
Technology Finance Co., 57,712,441.89 53,098,903.02
LTD
Accounts
receivable:
The 28th Research Institute
of China Electronics
12,817,383.15 305,019.43 5,106,770.00 187,793.30
Technology Group
Corporation
China Electronics
Technology Putian 2,692,080.06 106,911.80 2,085,679.20 100,536.79
Technology Co., Ltd
Nanjing Laisi Information 11,436,381.90 114,363.82 10,898,694.00 108,986.94
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期末余额 期初余额
项目名称 关联方
账面余额 坏账准备 账面余额 坏账准备
Technology Co., Ltd
Nanjing Lop Co., Ltd 1,792,153.40 18,157.73 926,320.00 9,263.20
Guorui Technology Co., Ltd 2,302,124.82 23,021.25
SHANGHAI POTEVIO Co
8,755,534.00 8,755,534.00 8,755,534.00 8,755,534.00
Ltd
Putian Information
6,065,598.36 6,065,598.36 6,065,598.36 6,065,598.36
Technology Co., Ltd
Hebei Far East
Communication System 5,590,276.02 276,379.30 7,076,527.70 452,584.61
Engineering Co., Ltd
China Electronics
Technology Group
5,536,986.09 55,369.86 8,130,279.06 83,102.79
Corporation 14th Research
Institute
Putian Communication Co.,
4,317,924.00 1,923,756.00 4,317,924.00 1,060,171.20
Ltd
China Putian Information
3,222,253.45 2,926,570.09 3,222,253.45 2,926,570.09
Industry Co., Ltd
Nanjing Guorui Xinwei
2,766,285.21 27,662.85 3,500,000.00 35,000.00
Software Co., Ltd
Nanjing Guorui Defense
2,410,679.33 24,106.79 2,722,285.85 27,222.86
System Co., Ltd
Nanjing Meichen
882,000.00 8,820.00 196,000.00 1,960.00
Microelectronics Co., Ltd
Nanjing Rail Transit System
462,750.81 27,074.89 1,735,507.81 39,802.46
Engineering Co., Ltd
Nanjing Lop Technology
292,006.85 2,920.07 7,500.00 75.00
Co., Ltd
Tianbo Electronic
Information Technology 156,939.05 1,569.39 31,160.00 311.60
Co., Ltd
Dongfang Communication
136,578.59 1,365.79 20,599.99 206.00
Co., Ltd
Sichuang Electronics Co.,
Ltd 135,557.43 22,896.17 135,557.43 22,896.17
Putian Rail Transit
Technology (Shanghai) Co., 90,983.70 909.84 395,458.66 6,454.16
Ltd
Taiji Computer Co., Ltd 68,986.32 801.72 261,274.32 10,416.12
China Electronics
Technology Corporation
52,238.50 596.39 44,838.50 448.39
Taili Communication
Technology Co., Ltd
China Electronics
Technology Group
49,159.55 491.60
Corporation 48th Research
Institute
Liyang 28th Institute
32,286.00 1,510.86 54,065.80 540.66
System Equipment Co., Ltd
China Electronics
Technology (Nanjing)
12,000.00 120.00 12,000.00 120.00
Electronic Information
Development Co., Ltd
Subtotal 72,077,146.59 20,691,528.00 65,701,828.13 19,895,594.70
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期末余额 期初余额
项目名称 关联方
账面余额 坏账准备 账面余额 坏账准备
Notes
receivable:
Nanjing Guorui Xinwei
1,600,000.00 80,000.00
Software Co., Ltd
Tianbo Electronic
Information Technology 1,709,812.62 85,490.63
Co., Ltd
Subtotal 1,600,000.00 80,000.00 1,709,812.62 85,490.63
Accounts
receivable
financing
Nanjing Guorui Xinwei
123,755.03
Software Co., Ltd
Prepayment:
Hangzhou Hikvision
57,505.00 57,505.00
Technology Co., Ltd
Hangzhou Hikvision Digital
Technology Co., Ltd. 2,766.00 2,766.00
Nanjing Branch
China Electronics
Technology (Nanjing)
5,745.00
Electronic Information
Development Co., Ltd
Subtotal 66,016.00 60,271.00
Other
receivables:
Putian Information Technology
367,800.00 367,800.00 367,800.00 367,800.00
Co., Ltd
China Putian Information
1,000.00 1,000.00 1,000.00 1,000.00
Industry Co., Ltd
Nanjing Hikvision Digital
80,000.00 4,000.00 80,000.00 4,000.00
Technology Co., Ltd
China Electronics Technology
31,100.00 933.00 31,100.00 1,555.00
Putian Technology Co., Ltd
Nanjing Putian Hongyan
259,009.34 179,357.76
Electrical Technology Co., Ltd
China Electronics Technology
Group Corporation 14th 108,000.00 3,240.00
Research Institute
Beijing Likang Pingxin
28,912,122.71 28,912,122.71 28,912,122.71 28,912,122.71
Equipment Co., Ltd
Subtotal 29,759,032.05 29,468,453.47 29,392,022.71 29,286,477.71
2. Balance due to related parties
项目名称 关联方 期末余额 期初余额
Accounts payable:：
Nanjing Putian Hongyan Electrical Technology Co., Ltd 338,539.09
Hangzhou Hongyan Electric Appliance Co., Ltd 3.69
China Putian Information Industry Co., Ltd 14,918,045.42 14,918,045.42
Hangzhou Hikvision Technology Co., Ltd
Putian High tech Industry Co., Ltd 25,000.00 25,000.00
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项目名称 关联方 期末余额 期初余额
Subtotal 15,281,588.20 14,943,045.42
Contract liabilities:
China Putian Information Industry Co., Ltd 3,727,418.22 3,727,418.22
China Electronics Technology Group Corporation 14th
272,253.45
Research Institute
Nanjing Lop Technology Co., Ltd 52,000 46,017.70
Nanjing Lop Technology Co., Ltd 23,619.2
Subtotal 3,803,037.42 4,045,689.37
Other payables:
Putian High tech Industry Co., Ltd 2,732,262.17 2,993,604.93
Nanjing Putian Information Technology Co., Ltd 2,467,412.69 2,467,412.69
Putian Information Technology Co., Ltd 400,000.00 400,000.00
Putian Communication Co., Ltd 200,000.00 200,000.00
China Putian Information Industry Co., Ltd 130,927.50 130,927.50
China Putian Information Industry Group Co., Ltd 9,580,000.00 9,580,000.00
Subtotal 15,510,602.36 15,771,945.12
XI. Commitments and contingencies
(I) Commitments
As of June 30th, 2024, the Company has no material commitments to disclose.
(II) Contingencies
As of June 30th, 2024, the Company had no material contingencies to disclose.
XIII. Events after the balance sheet date
In 2024, the company plans to dispose of the equity of its subsidiaries Nanjing Nanman Electric
Co., Ltd. and Nanjing Putian Changle Communication Equipment Co., Ltd. This matter has not been
completed yet.
XIV. Other significant events
Segment reports
1. Identification basis for reportable segments
Reportable segments are identified based on operating segments which are determined based on
the structure of the Company’s internal organization, management requirements and internal
reporting system. The Company identified reportable segments based on products, which include
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video conferencing products, integrated wiring product, electrical products, wiring products, and
other products. Assets and liabilities shared by different segments are allocated pro rata among
segments.
The Company identified reportable segments based on products, assets and liabilities of each
segment are the actual amount of its proportion in assets and liabilities, and revenue from main
operations and cost of main operations are those generated or incurred by each product segment.
2. Financia
l information of reportable segments
Communications
Video Intelligent
Integrated infrastructure Inter-segment
Items conferencing electrical
cabling products products and offsetting
products products
others
operating
122,835,024.15 160,947,779.17 52,992,270.13 23,516,694.52 -11,305,527.05
revenue
Operating costs 93,788,278.20 125,377,475.84 39,588,871.50 17,862,653.17 -12,178,529.98
Investment
income from
- 66.50
joint ventures
and associates
Credit
-152,089.24 224,489.92 -86,073.11 1,980,532.21
impairment loss
Impairment loss - -300,868.44 -1,497.98 -
Depreciation and
amortization 56,011.09 1,261,235.56 421,497.70 3,033,276.29 -368,126.01
expenses
Total profit 5,841,289.73 9,804,175.90 2,476,158.26 -12,586,903.71 -9,521,525.99
Income tax
528,105.21 535,729.22 306,270.48 - -
expenses
Net profit 5,313,184.52 9,268,446.68 2,169,887.78 -12,586,903.71 -9,521,525.99
Total Assets 269,095,711.96 245,233,505.81 165,308,086.30 379,864,304.25 -230,009,338.59
total liabilities 164,616,285.85 143,071,680.97 108,443,528.31 480,543,337.86 -135,065,688.95
XV. Notes to items of parent company financial statements
(I) Accounts receivable
1. Disclosure according to aging
Ages Closing balance Opening balance
Within 1 year 41,525,745.65 37,402,082.05
Among them: within 6 months 14,784,296.55 25,082,701.87
From July to December 26,741,449.10 12,319,380.18
Subtotals within 1 year 41,525,745.65 37,402,082.05
1 to 2 years 16,430,124.24 20,967,585.95
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2 to 3 years 10,834,769.48 13,476,502.08
3 to 4 years 10,226,524.95 11,129,447.83
4 to 5 years 11,520,285.22 13,713,915.65
Over 5 years 148,572,220.56 148,465,760.33
Subtotal 239,109,670.10 245,155,293.89
Less: Allowance for doubtful accounts 162,893,345.11 164,641,104.04
Total 76,216,324.99 80,514,189.85
2. According to the bad debt calculation and withdrawal method classification disclosure
Closing balance
Categories Book balance Provision for bad debts
Provision
Amount % to total Amount
proportion (%)
Receivables with provision made on an
70,104,372.00 29.32 70,104,372.00 100.00
individual basis
Receivables with provision made on a
169,005,298.10 70.68 92,788,973.11 54.90
collective basis
Among them: Combination 1: aging method 167,298,454.58 98.99 92,788,973.11 55.46
Combination 2: related parties 1,706,843.52 1.01
Total 239,109,670.10 100.00 162,893,345.11 68.12
Opening balance
Categories Book balance Provision for bad debts
Provision
Amount % to total Amount
proportion (%)
Receivables with provision made on an
70,104,372.00 28.60 70,104,372.00 100.00
individual basis
Receivables with provision made on a
175,050,921.89 71.40 94,536,732.04 54.01
collective basis
Among them: Combination 1: aging method 173,611,186.43 99.18 94,536,732.04 54.45
Combination 2: related parties 1,439,735.46 0.82
Total 245,155,293.89 100.00 164,641,104.04 67.16
（1）Receivables with provision made on an individual basis
Book Provision for Provision
Debtors Reasons
balance bad debts proportion (%)
Unable to
Dongpo Xi Laos Co., Ltd 19,708,086.54 19,708,086.54 100
recover
Unable to
Xu Mou 17,591,683.74 17,591,683.74 100
recover
Unable to
China Tower Corporation Limited 13,819,926.92 13,819,926.92 100
recover
Unable to
Putian Information Technology Co., Ltd 4,514,800.91 4,514,800.91 100
recover
China Railway Signal&Communication Unable to
3,534,579.35 3,534,579.35 100
Shanghai Engineering Group Co., Ltd recover
Unable to
Others 10,935,294.54 10,935,294.54 100
recover
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Total 70,104,372.00 70,104,372.00 100
（2）Receivables with provision made on a collective basis
Combination 1: Aging combination
Closing balance Opening balance
Ages Provision
Provision for Provision Provision for
Book balance Book balance proportion
bad debts proportion (%) bad debts
(%)
Within 1
40,852,637.59 408,526.38 1.00 36,144,924.85 361,449.25 1.00
year
1 to 2
15,376,158.78 768,807.94 5.00 20,764,777.69 1,038,238.88 5.00
years
2 to 3
10,800,019.48 1,080,001.95 10.00 13,441,752.08 1,344,175.21 10.00
years
3 to 4
6,308,960.42 1,892,688.13 30.00 7,211,883.30 2,163,564.99 30.00
years
4 to 5
10,643,459.17 5,321,729.59 50.00 12,837,089.60 6,418,544.80 50.00
years
Over 5
83,317,219.14 83,317,219.14 100.00 83,210,758.91 83,210,758.91 100.00
years
合计 167,298,454.58 92,788,973.11 55.46 173,611,186.43 94,536,732.04 54.45
Combination 2: related parties
Closing balance Opening balance
Ages Provision Provision
Provision for Provision for
Book balance proportion Book balance proportion
bad debts bad debts
(%) (%)
Within 1
673,108.06 1,257,157.20
year
1 to 2 years 1,033,735.46 182,578.26
Total 1,706,843.52 1,439,735.46
3. Bad debt provision
Change in current period
Opening Closing
Categories To withdraw Cancel after Other
balance Accrual balance
or turn back verification changes
Credit risk
portfolio 94,536,732.04 -1,747,758.93 92,788,973.11
provision
Accrual
based on
70,104,372.00 70,104,372.00
individual
evaluation
Total 164,641,104.04 -1,747,758.93 162,893,345.11
4. Accounts receivable and contract assets of the top five ending balances collected by debtor
Proportion to the total
Provision for bad
Debtors Book balance balance of accounts
debts
receivable (%)
Dongpo Xi Laos Co., Ltd. 19,708,086.54 8.24% 19,708,086.54
Mr. Xu 17,591,683.74 7.36% 17,591,683.74
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Proportion to the total
Provision for bad
Debtors Book balance balance of accounts
debts
receivable (%)
China Tower Corporation Limited 13,819,926.92 5.78% 13,819,926.92
Nanjing Laisi Information Technology Co.,
8,861,206.00 3.71% 88,612.06
Ltd
SHANGHAI POTEVIO Co Ltd 8,755,534.00 3.66% 8,755,534.00
Total 68,736,437.20 28.75% 59,963,843.26
(II) Other receivable
Items Closing balance Opening balance
Dividends receivable 24,553,400.00 19,400,000.00
Other receivables 14,624,177.90 20,740,274.42
Total 39,177,577.90 40,140,274.42
1. Dividends receivable
（1）Details
Items Closing balance Opening balance
Subsidiaries distribute dividends 24,553,400.00 19,400,000.00
2. Other receivable
（1）Age analysis
Ages Closing balance Opening balance
Within 1 year 1,430,510.86 859,803.13
Among them: within 6 months 847,559.76 387,067.07
From July to December 582,951.10 472,736.06
Subtotals within 1 year 1,430,510.86 859,803.13
1 to 2 years 12,888,329.31 19,546,598.16
2 to 3 years 1,052,514.00 1,052,514.00
3 to 4 years 1,522,193.51 1,522,193.51
4 to 5 years 1,544,678.85 2,399,479.37
Over 5 years 35,068,614.70 34,665,573.84
Subtotal 53,506,841.23 60,046,162.01
Less: Allowance for doubtful accounts 38,882,663.33 39,305,887.59
Total 14,624,177.90 20,740,274.42
（2）Classified by nature of payment
Items Closing balance Opening balance
Temporary payment receivable 45,135,953.98 54,281,249.32
Deposit 7,267,760.12 4,229,786.49
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Items Closing balance Opening balance
Travel allowance 74,000.00 401,203.05
Others 1,029,127.13 1,133,923.15
Subtotal 53,506,841.23 60,046,162.01
Less: Allowance for doubtful accounts 38,882,663.33 39,305,887.59
Total 14,624,177.90 20,740,274.42
（3）Changes in provision for bad debts
Phase I Phase II Phase III
Items 12-month Lifetime expected Lifetime expected Total
expected credit credit losses (credit credit losses
losses not impaired) (credit impaired)
Balance as of January 1,
8,327,792.69 30,978,094.90 39,305,887.59
2024
Balance as of January 1,
2024 in this period
Provision for this period -423,224.26 -423,224.26
Balance as of June 30,
7,904,568.43 30,978,094.90 38,882,663.33
2024
（4）Provision for bad debts
Change in current period
Opening Closing
Categories To withdraw or Cancel after Other
balance Accrual balance
turn back verification changes
Losses on 39,305,887.59 -423,224.26
38,882,663.33
bad debts
（5）Other receivables with the top five ending balances collected by debtor
Proportion
to the total
Nature of balance of Provision for
Debtors Ages Closing balance
receivables other bad debts
receivables
(%)
Beijing Likangpu
Current
Telecommunications Equipment 28,912,122.71 5 年以上 54.03 28,912,122.71
accounts
Co.,Ltd.
Nanjing Putian Communication Current
805,545.63 4 年以上 1.51 805,545.63
Industry Co., Ltd. accounts
Total 29,717,668.34 —— 55.54 29,717,668.34
(III) Long-term equity investments
Closing balance Opening balance
Items Provision Provision
Carrying Carrying
Book balance for Book balance for
amount amount
impairment impairment
Investments in
103,667,928.23 1,294,510.00 102,373,418.23 103,667,928.23 1,294,510.00 102,373,418.23
subsidiaries
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Investments in
associates and 10,412,622.64 10,412,622.64 10,412,689.14 10,412,689.14
joint ventures
Total 114,080,550.87 1,294,510.00 112,786,040.87 114,080,617.37 1,294,510.00 112,786,107.37
1. Investments in subsidiaries
Provision for
Closing balance
Opening Closing impairment
Investees Increase Decrease of provision for
balance balance made in current
impairment
period
Nanjing Putian
Changle
2,610,457.00 2,610,457.00
Communication
Equipment Co., Ltd.
Nanjing Putian
Telege Intelligent 3,320,003.45 3,320,003.45
Building Ltd.
Nanjing Southern
33,175,148.00 33,175,148.00
Telecom Co., Ltd.
Nanjing Mennekes
57,831,012.71 57,831,012.71
Electric Co., Ltd.
Nanjing Putian
Datang Information 5,436,797.07 5,436,797.07
Electronics Co., Ltd.
Nanjing Putian
Communication
1,294,510.00 1,294,510.00 1,294,510.00
Technology Co.,
LTD
Total 103,667,928.23 103,667,928.23 1,294,510.00
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2. Investments in associates and joint ventures
Increase/Decrease
Investment Closing
income Adjustment in Cash balance of
Opening Changes Provision Closing
Investees Investments Investments recognized other dividend/Profit provision
balance in other for Others balance
increased decreased under comprehensive declared for for
equity impairment impairment
equity income distribution
method
I. Joint ventures
Nanjing Puzhu
Optical Network 10,412,689.14 -66.50 10,412,622.64
Co., Ltd
Total 10,412,689.14 -66.50 10,412,622.64
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(IV) Operating revenue/Operating cost
1. Operating income and operating costs are classified by major categories
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
I.Main operations 10,079,325.99 10,900,205.84 44,665,542.44 41,053,987.42
II.Other operations 1,748,958.35 32,889.72 1,556,221.19 230,398.62
Total 11,828,284.34 10,933,095.56 46,221,763.63 41,284,386.04
2. Operating income in the current period is classified according to the time of revenue recognition
Revenue recognition time Income from main business Other business income
Confirm at a certain point 10,079,325.99 1,748,958.35
(V) Investment income
Current period Preceding period
Items
cumulative comparative
Investment income from long-term equity investments under cost method -66.50 -9,717.35
Investment income from long-term equity investments under equity method
Investment income from disposal of long-term equity investments
Debt restructuring gains
Others 9,725,282.63 252,381.63
Total 9,725,216.13 242,664.28
XVI. Other supplementary information
(I) Schedule of non-recurring profit or loss
Previous period amount
Items Amount Before the After the
adjustment adjustment
Profit and loss on disposal of non-current assets, including the write-off
-468.86 -67,389.77 -67,389.77
part of the asset impairment provision
Government subsidies included in the current profit and loss (closely
related to the business of the enterprise, except those enjoyed in
1,106,532.24 838,180.23 838,180.23
accordance with the national unified standard quota or quantitative
government subsidies)
Allowance for impairment reversal of receivables tested separately for
1,457,921.68 1,457,921.68
impairment
Gains and losses on debt restructuring 1,031,433.22 -88,555.00 -88,555.00
Other non-operating income and expenses other than those described
1,541,213.46 -301,000.94 -301,000.94
above
Other profit and loss items that meet the definition of non recurring gains
and losses
Minus: Impact of income tax 756,172.33 64,780.32 64,780.32
Amount of influence of minority shareholders 482,944.62 212,534.83 212,534.83
Total 2,439,593.11 1,561,841.05 1,561,841.05
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(II) Return on net assets(RONA) and earnings per share(EPS)
Weighted average RONA EPS (yuan/share)
Profit of the reporting period (%) Basic EPS Diluted EPS
Current Preceding Current Preceding Current Preceding
period period period period period period
Net profit attributable to shareholders
-861.91 -66.38 -0.04 -0.05 -0.04 -0.05
of ordinary shares
Net profit attributable to shareholders
of ordinary shares after deducting -1,084.23 -75.84 -0.04 -0.05 -0.04 -0.05
non-recurring profit or loss
Board of Directors of Nanjing Putian Telecommunications Co., Ltd.
August 29, 2024
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