Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
南京普天通信股份有限公司
Nanjing Putian Telecommunications Co., Ltd.
SEMI-ANNUAL REPORT 2021
August 2021
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred
to as the Company) hereby confirm that there are no any fictitious statements,
misleading statements, or important omissions carried in this report, and shall
take all responsibilities, individual and/or joint, for the reality, accuracy and
completion of the whole contents.
Wang Wenkui, principal of the Company, Wang Huilin, person in charger of
accounting works and Tang Yiqiao, person in charge of accounting organ
(accounting principal) hereby confirm that the Financial Report of Semi-Annual
Report 2021 is authentic, accurate and complete.
All directors are attend the Meeting for Report deliberation.
The forward-looking statements such as future plans involved in the
semi-annual report do not constitute a substantial commitment of the Company
to investors. Investors and relevant persons should maintain sufficient risk
awareness and understand the differences between plans, forecasts and
commitments.
In "Section III Management Discussion and Analysis" of this report, the
company has analyzed the risk factors that may adversely affect the realization
of the company's future development strategy and business objectives. Investors
are kindly advised to check.
The Company has no plans of cash dividend distributed, no bonus shares and
has no share converted from capital reserve either.
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Contents
Section I Important Notice, Contents and Interpretation ..................................................................... 2
Section II Company Profile and Main Financial Indexes .................................................................... 6
Section III Management Discussion and Analysi ................................................................................ 9
Section IV Corporate Governance ..................................................................................................... 24
Section V Enviornmetnal and Social Responsibility ....................................................................... 26
Section VI Important Events .............................................................................................................. 28
Section VII Changes in shares and particular about shareholders ..................................................... 39
Section VIII Preferred Stock..............................................................................................................44
Section IX Corporate Bonds .............................................................................................................. 45
Section X Financial Report ................................................................................................................ 46
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Documents Available for Reference
(1) Financial statement of the Company with signature and seal from the person in charge of the Company, person
in charge of the accounting works and person in charge of accounting;
(2) Original text of all documents of the Company as well as manuscript of the announcement that disclosed
publicly during the reporting period.
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Interpretation
Items Refers to Contents
The Company, Company Refers to Nanjing Putian Telecommunications Co., Ltd.
Nanjing Southern Telecom Co., Ltd(controlling subsidiary of the
Southern Telecom Refers to
Company)
Nanjing Putian Telege Intelligent Building Ltd(controlling subsidiary of
Telege Building Refers to
the Company)
Nanjing Nanman Electric Co., Ltd. (wholly owned subsidiary of the
Nanman Company Refers to
Company)
Nanjing Putian Datang Information Electronic Co., Ltd(controlling
Putian Datang Refers to
subsidiary of the Company)
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Section II Company Profile and Main Financial Indexes
I Company profile
Short form of the stock NJ TEL B Stock code 200468
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in
南京普天通信股份有限公司
Chinese)
Short form of the Company
南京普天
(in Chinese)
Foreign name of the
Nanjing Putian Telecommunications Co., Ltd.
Company(if applicable)
Legal representative Wang Wenkui
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Li Jing Xiao Hong
No.8 Fenghui Avenue, Yuhuatai District, No.8 Fenghui Avenue, Yuhuatai District,
Contact address
Nanjing, Jiangsu Province Nanjing, Jiangsu Province
Tel. 025-69675809 025-69675865
Fax. 025-52416518 025-52416518
E-mail lijing@postel.com.cn xiaohong@postel.com.cn
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or
not
√ Applicable □ Not applicable
No.8 Fenghui Avenue, Yuhua Economic Development District, Nanjing, Jiangsu
Registration address
Province
Post code of the registration address 210039
Putian Technology Venture Park, No.8 Fenghui Avenue,Yuhuatai District,
Office address
Nanjing, Jiangsu Province
Post code of the office address 210039
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Website www.postel.com.cn
Email securities@postel.com.cn
Date of inquiry on the designated website for 20 April 2021
disclosure of the interim announcements(if any) 21 July 2021
The “Resolution of 48th session of 7th BOD” and “Notice on the Completion of
Designated website index for the interim the Filing of Article of Association and Registration of Change of Registered
announcements disclosure (if any) Address for Industry & Commerce” released respectively on Juchao Website on
the above mentioned date
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2020.
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes √ No
Increase/decrease in this
Current period Same period of last year
report y-o-y
Operating revenue (RMB) 451,878,610.43 405,172,803.62 11.53%
Net profit attributable to shareholders of
-29,593,867.19 -58,856,854.03 49.72%
the listed Company (RMB)
Net profit attributable to shareholders of
the listed Company after deducting -29,866,458.49 -63,607,495.15 53.05%
non-recurring gains and losses (RMB)
Net cash flow arising from operating
-116,722,273.15 17,652,718.03 -761.21%
activities (RMB)
Basic earnings per share (RMB/Share) -0.14 -0.27 48.15%
Diluted earnings per share (RMB/Share) -0.14 -0.27 48.15%
Weighted average ROE -16.14% -42.01% 25.87%
Increase/decrease in this
End of current period End of last period report-end over that of last
period-end
Total assets (RMB) 1,101,329,093.30 1,167,608,410.82 -5.68%
Net assets attributable to shareholder of
173,709,879.79 189,624,160.92 -8.39%
listed Company (RMB)
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.
VI. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the
15,829.32
write-off that accrued for impairment of assets)
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to
360,145.78
national standards, which are closely relevant to enterprise’s
business)
Other non-operating income and expenditure except for the
-4,610.41
aforementioned items
Less: impact on income tax 25,041.95
Impact on minority shareholders’ equity (post-tax) 73,731.44
Total 272,591.30 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Section III. Management Discussion and Analysis
I. Main businesses of the Company in the reporting period
As one of the important product and solution providers in the domestic information and communication field, the
company adheres to the "product + solution + service" strategy, and continuously accelerates product innovation,
industrial structure adjustment, transformation and upgrading. The main business of the company and its
subsidiaries involves optical communication networks, wireless communication networks, data applications,
industrial electric and other fields, including optical distribution networks and communication supporting overall
solutions (ODN overall solutions, optical network intelligent solutions, energy-saving data centre solutions),
multimedia communication and application solutions, building intelligent integrated solutions, industrial
intelligent power distribution systems, solar street light control systems, etc. Customers include domestic telecom
operators, China Tower and industry customers in government, finance, power, medical and other fields.
The company’s optical distribution network and communication supporting overall solutions can be used for
domestic communication network construction, broadcasting and television network transformation, high-speed
rail communication construction, urban metro construction, e-commerce industry, etc.; and the data center
products are widely used in data center construction projects of operators, internet and other enterprises; the
subsidiary Nanjing Southern Telecom Co., Ltd. can provide remote collaboration application solutions for the
large and medium-sized industry customers in the fields of government, finance, medical care, and education, and
so on; the subsidiary Nanjing Putian Telege Intelligent Building Ltd. mainly provides customers with
mid-to-high-end integrated wiring and intelligent application solutions; subsidiary Nanjing Nanman Electric Co.,
Ltd. is oriented towards rail transit, airports, ports and other industrial sites and provides industrial intelligent
power distribution products; the subsidiary Nanjing Putian Datang Information Electronic Co., Ltd. mainly
provides customers with solar street lamp controllers and Internet of Things street lamp monitoring systems, etc.
The company mainly obtains business opportunities by participating in project bidding, designs plans, produces or
purchases equipment required by customers according to project requirements, and is responsible for installation
and debugging, and realizes profits after deducting costs in accordance with the contract price. The company's
operating results are mainly affected by factors such as capital expenditures by telecom operators and industry
customers, information input and bidding results, fluctuations in raw material prices and other cost changes.
During the reporting period, in the face of unfavorable factors such as rising prices of raw materials and
intensifying market competition, the company adhered to the primary goal of improving gross margin and
improving operating cash flow, stuck to the industry and focused on its main business, continued to increase new
product development, focused on key market development, tapped the production potential of products, and
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
innovated cost control method, thus, the company had stable overall industrial development.
1. Adhere to the "two deep cultivation", and focus on the industry business
The company focuses on the main industry of information communication and pays close attention to key
industries. While maintaining the existing industry position, the company continues to explore the transformation
from the traditional cabling industry to the data center business. In the first half of the year, the company won the
bidding on centralized procurement of cabling products of Zhongnanhai Special Communication Bureau, and
succeeded in supplying Beixin optical cable reconstruction for Beijing metro equipment procurement project; The
data room product won the bid for Jiangsu Unicom innovative business supplementary recruitment project and
China Telecom Wuxi Guolian machine room customized cabinet supporting project. The parts workshop uses
the information platform to improve and optimize each link of production, and continuously improve the
production-manufacturing level.
Southern Telecom strives to develop competitive and valuable solutions to customers' pain points and application
difficulties. In the first half of the year, Southern Telecom successfully signed contracts of the renewal of
insurance of Postal Savings Bank of China and the procurement project for the upgrade and expansion of cloud
video conference platform of China Everbright Bank. New businesses such as multimedia integration and
self-research continued to grow; Completed team building and industry sorting in the four regional centers of
Huawei business, focused on the promotion of Postal Savings Bank, Agricultural Bank of China, Shandong
Education and other projects.
Telege Building participated in the establishment of China's first PoE System Engineering Technology Standards,
and became the first batch of manufacturers to obtain PoE certification in China; completed the supply of weak
current system engineering of Yanqing Winter Olympic Village project, and cabling bidding section of intelligent
system construction project for office building of Beijing sub-center administrative office area and other projects;
actively explored the industry market, and completed the supply key industry customers and projects.
Nanman Company continued to deeply develop the rail transit, and has signed projects such as Beijing Metro Line
19, Hangzhou Metro Line 9, Hefei Metro Airport line, Shenzhen Urban Rail Transit Line 6 branch line and so on,
maintaining the leading position in the industry. In terms of social projects, it signed Xiongan pipe rack and SE
Environment projects.
On the one hand, Putian Datang reduces cost by changing large modules into small ones and replacing materials.
On the other hand, it launches new products - integrated lamp board, and the market response is good.
2. Adhere to independent research and development and increase technological innovation.
Telege Building seizes the opportunity of high-end cabling localization, and completes the improvement scheme
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
designs for new generation of electronic distribution frame and its automation, Yishang Category Six Modules
and Super Category Six Modules. Small batch of trial production of Yunshang series products has been completed.
Nanman company has completed the transformation and upgrading for design, model and tooling development of
the second-generation socket box, which is expected to be launched in the market in early July. Southern Telecom
completed the formulation of SIP protocol for Ruijing DS680 terminal and VX platform extension, greatly
increased the number of concurrent meetings of a single MCU; Ruijing 13.3-inch all-in-one meeting guide
realized full function, supporting face check-in, We Chat applet conference reservation and other functions;
Complete the production of 10.1 inch conference room central control screen samples.
II. Core Competitiveness Analysis
As a state-owned holding information and communication device manufacturer, the company attaches great
importance to industrial development, continues to carry out market expansion and product innovation, has a
complete industrial chain and mature market network, has strong R&D, production, and marketing capabilities,
and has strong comprehensive competitiveness.
1. Marketing ability
The company has mature market networks, serves the operators and industry customers in the government, rail
transit, finance, medical, power, internet companies and others over a long period of time, and has rich industry
experience.
2. Product competitiveness
The company insists on being market-oriented, strengthening and optimizing its leading products, actively
developing new products, and constantly improving its innovation capabilities.
The company has high technology and product advantages in wiring products. It has developed a series of optical
network connection products that have obtained a number of national invention patents, and is a supplier of strong
brand influence in the field of domestic optical fiber communication network connection products. Prefabricated
steel structure data center products can quickly build data center modules for use in the construction of data center
computer rooms, and perform on-site integration of various equipment in the production area to achieve integrated
delivery. Access products have good performance in wired access networks, optical transmission networks,
wireless access networks, etc., and are ranked among the "Top Ten Most Competitive Enterprises in China's
Optical Transmission and Network Access Equipment" throughout the year. The company's computing industry
products are produced and developed based on Huawei Kunpeng platform, and the performance indicators have
reached the high-end level of imported products, and have been recognized by the country, the Ministry of
Industry and Information Technology, multiple provinces and cities, telecom operators, and finance and other
industries. The subsidiary, Southern Telecom, has focused on video communication applications for more than 20
years, and has accumulated rich market channels and customer resources, as well as differentiated product and
program design capabilities, its self-developed products have been recognized by large industry customers. The
complete set of electrical products of the subsidiary, Nanman Company, are widely used in airports, wharves, rail
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
transit and other industries, and has accumulated rich customer resources and industry experience, and can
provide customers with complete sets of products and solutions for individual needs. Telege Building is
positioned in the high-end market for cabling system, and its products serve the Beijing Winter Olympics,
domestically produced large aircraft and other key projects, and it is actively developing new products such as a
new generation of intelligent cabling systems and integrated cabling management platforms.
3. Brand influence
The company is an information and communication enterprise under the central state-owned enterprise, and
communication products with Putian brand have a strong brand influence in the field of domestic optical fiber
communication network connection products. The integrated cabling products of Telege Building are well-known
brand products in Jiangsu Province, a famous trademark of the province, and have been ranked among the top ten
domestic cabling system brands for more than ten consecutive years. The video conferencing product series of
Southern Telecom have a high reputation in China.
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
III. Main business analysis
See the relevant content of “I-Main businesses of the Company in the reporting period”
Y-o-y changes of main financial data
In RMB
Current period Same period of last year Y-o-y increase/decrease Reasons for changes
Operating revenue 451,878,610.43 405,172,803.62 11.53%
Operating costs 357,433,868.99 327,775,992.40 9.05%
Sales expenses 49,061,292.58 58,811,392.65 -16.58%
Administration expenses 29,720,592.42 27,533,357.61 7.94%
Mainly due to the
declined in size of debt
financing and the y-o-y
Finance expenses 2,565,937.64 14,960,136.67 -82.85%
decrease in interest
expenses during the
reporting period
Profit of subsidiary
increased on a y-o-y
Income tax expenses 4,521,812.72 2,242,233.92 101.67% basis and the income tax
expenses increased
correspondingly
R & D investment 29,747,490.78 24,000,179.13 23.95%
Mainly due to the lower
Net cash flow arising
-116,722,273.15 17,652,718.03 -761.21% sales returns in the
from operating activities
reporting period
Net cash flow arising There has a disposal of
from investment -3,292,539.34 4,043,094.10 -181.44% fixed asset in the same
activities period of previous year
Loans in the period
Net cash flow arising
22,637,031.67 -105,385,325.64 121.48% declined, and fewer loans
from financing activities
were returned when due
The cash flow arising
Net increase of cash and from operation and
-96,953,248.17 -83,560,328.15 -43.16%
cash equivalent investment declined from
a year earlier
Operation profit -20,622,591.30 -52,545,343.51 60.75% The sales revenue
Total profit -20,627,201.71 -49,425,928.10 58.27% increased on a y-o-y
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Net profit -25,149,014.43 -51,668,162.02 51.33% basis during the reporting
period, at the same time,
the company continued
to strengthen the internal
Net profit attributable to management and cost
owners’ of parent -29,593,867.19 -58,856,854.03 49.72% control, and the loss
company
declined compared with
the same period of
previous year
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period
Constitution of operating revenue
In RMB
Current period Same period last year
Ratio in operation Ratio in operation Y-o-y changes (+,-)
Amount Amount
revenue revenue
Total operation
451,878,610.43 100% 405,172,803.62 100% 11.53%
revenue
Industries
Communication
industry-Main 399,533,598.94 88.42% 352,789,263.58 87.07% 13.25%
business revenue
Communication
industry-Other 9,604,701.68 2.13% 8,598,551.27 2.12% 11.70%
business revenue
Electrical industry
-Main business 41,853,695.33 9.26% 43,114,985.15 10.64% -2.93%
revenue
Electrical industry
-Other business 886,614.48 0.20% 670,003.62 0.17% 32.33%
revenue
Products
Video conference
products-Main 129,623,277.17 28.69% 122,410,819.44 30.21% 5.89%
business revenue
General cabling
products-Main 197,510,645.45 43.71% 152,786,662.13 37.71% 29.27%
business revenue
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Low-voltage
distribution
41,853,695.33 9.26% 43,114,985.15 10.64% -2.93%
products-Main
business revenue
Wiring and other
products-Main 82,624,306.00 18.28% 93,508,096.01 23.08% -11.64%
business revenue
Interior offset -10,224,629.68 -2.26% -15,916,314.00 -3.93% 35.76%
Other business
10,491,316.16 2.32% 9,268,554.89 2.29% 13.19%
revenue
Regions
Domestic area-main
441,387,294.27 97.68% 395,718,307.38 97.67% 11.54%
business revenue
Domestic area
-Other business 10,491,316.16 2.32% 9,268,554.89 2.29% 13.19%
revenue
Abroad -main
185,941.35 0.05% -100.00%
business revenue
About the industries, products, or regions accounting for over 10% of the Company’s operating income or operating profit
√Applicable □ Not applicable
In RMB
Increase/decrease Increase/decrease Increase/decrease
Operating
Operating cost Gross profit ratio of operating of operating cost of gross profit
revenue
revenue y-o-y y-o-y ratio y-o-y
Industries
Communication
industry-Main 399,533,598.94 318,049,699.77 20.39% 13.25% 10.36% 2.08%
business revenue
Communication
industry-Other 9,604,701.68 8,287,234.04 13.72% 11.70% 10.30% 1.10%
business revenue
Electrical
industry -Main 41,853,695.33 30,554,000.92 27.00% -2.93% -3.08% 0.12%
business revenue
Electrical
industry -Other 886,614.48 542,934.26 38.76% 32.33% -0.65% 20.32%
business revenue
Products
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Main business
revenue-Video
129,623,277.17 103,283,120.76 20.32% 5.89% 1.88% 3.14%
conference
products
Main business
revenue-General 197,510,645.45 148,296,269.63 24.92% 29.27% 28.87% 0.24%
cabling products
Main business
revenue-Low-volt
41,853,695.33 30,554,000.92 27.00% -2.93% -3.08% 0.12%
age distribution
products
Main business
revenue-Wiring
82,624,306.00 76,594,824.74 7.30% -11.64% -12.61% 1.04%
and other
products
Interior offset -10,224,629.68 -10,124,515.36 0.98% 35.76% 36.39% 0.98%
Other business
10,491,316.16 8,830,168.30 15.83% 13.19% 9.56% 2.79%
revenue
Regions
Domestic
area-Main 441,387,294.27 348,603,700.69 21.02% 11.54% 9.08% 1.78%
business revenue
Domestic
area-Other 10,491,316.16 8,830,168.30 15.83% 13.19% 9.56% 2.79%
business revenue
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
latest one year’s scope of period-end
□ Applicable √ Not applicable
Explain the reasons for above 30% y-o-y changes in relevant data
□ Applicable √ Not applicable
IV. Analysis of the non-main business
√Applicable □ Not applicable
In RMB
Amount Ratio in total profit Cause of formation Whether be sustainable (N/Y)
Investment income -1.19 0.00% - N
Non-operation
56,934.58 -0.28% - N
revenue
Non-operation 61,544.99 -0.30% - N
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
expenditure
Other income 1,192,018.97 -5.78% Government subsidy N
Credit impairment
-2,408,210.40 11.67% Bad debt loss of receivables N
loss
IV. Assets and liability analysis
1. Major changes of assets composition
In RMB
End of current Period End of last year
Ratio
Ratio in total Ratio in total Notes of major changes
Amount Amount changes
assets assets
Monetary fund 90,221,585.93 8.19% 209,849,710.96 17.97% -9.78%
Account 529,083,330.6
48.04% 493,992,403.49 42.31% 5.73%
receivable 1
Contractual assets 0.00% 0.00% 0.00%
226,870,395.2
Inventory 20.60% 199,641,972.32 17.10% 3.50%
1
Investment
4,076,777.32 0.37% 4,267,013.35 0.37% 0.00%
property
Long-term equity
10,422,055.77 0.95% 10,422,056.96 0.89% 0.06%
investment
Fix assets 98,429,381.98 8.94% 100,158,063.58 8.58% 0.36%
Construction in
23,811,418.56 2.16% 22,454,792.27 1.92% 0.24%
process
Right-of-use
0.00% 0.00% 0.00%
assets
140,500,000.0
Short-term loans 12.76% 65,000,000.00 5.57% 7.19%
0
Contractual
31,494,936.69 2.86% 28,518,252.40 2.44% 0.42%
liability
Long-term loans 0.00% 0.00% 0.00%
Lease liability 0.00% 0.00% 0.00%
2. Main oversea assets
□ Applicable √Not applicable
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
3. Assets and liability measured by fair value
√Applicable □ Not applicable
In RMB
Accumulated
Gains/losses
fair value Impairment Amount Sales amount
Opening of fair value Other Ending
Item changes accrued in purchased in in current
amount changes in the changes amount
included in current period current period period
period
equity
Financial
assets
1.Receivable 13,747,563.
32,594,702.60
financing 72
2.Other equity
instrument 741,953.00 741,953.00
investment
14,489,516.
Total 33,336,655.60
72
Financial
0.00 0.00
liability
Other changes
Whether there are significant changes in the measurement attributes of the major assets during the reporting period
□Yes √No
4. The assets rights restricted till end of the period
(1)details are:
Item Book value at period –end Restriction reason
Monetary funds 3,136,966.33 Note margin and guarantee margin
Fixed assets 10,133,882.66 Mortgage loan
Intangible assets 3,615,634.97 Mortgage loan
Total 16,886,483.96
(2)other explanation
Saved as disclosed above, the Company pledged its stock rights of 4.8 million Yuan (40% equity in total) in the
subsidiary Nanjing Putian Telege Intelligent Building Ltd., stock rights of 33.17 million Yuan (96.99% equity in
total) in the subsidiary Nanjing Southern Telecom Co., Ltd., stock rights of 5.07 million Yuan (50.7 % equity in
total)in the subsidiary Nanjing Putian Changle Telecommunication Equipment Co., Ltd., and stock rights of 7.8
million Yuan (78% equity in total) in Nanjing Putian Network Co., Ltd pledge to the parent Company for
entrusting the loan from Bank, and handled the Company's equity registration respectively at Market Supervision
Administration in Jiangning District, Hi-Tech Industry District, Yuhuatai District and Qinghuai District of
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Nanjing City. Transfer of the stock rights of the aforesaid subsidiaries are restricted before the pledge being lifted.
VI. Investment analysis
1. Overall situation
√ Applicable □ Not applicable
Investment in the same period of last year
Investment in the reporting (RMB) Changes
( RMB)
3,137,203.31 8,051,358.30 -61.04%
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
VII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company did not sell major assets during the reporting period
2. Sales of major equity
□ Applicable √ Not applicable
19
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
VIII. Analysis of main holding Company and joint stock companies
√ Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company Main Register Operating Operating
Type Total assets Net assets Net profit
name business capital revenue profit
Multimedia
Nanjing
communicati
Southern 34.2 million 233,822,636. 89,443,562.5 130,025,202. 2,674,036.
Subsidiary on and 1,988,368.02
Telecom Co., yuan 26 1 65 20
application
Ltd
solutions
General
cabling,
Nanjing development,
Putian Telege production 20 million 258,010,545. 82,302,109.8 199,671,487. 17,015,628
Subsidiary 13,604,585.72
Intelligent and sales of yuan 57 0 21 .85
Building Ltd the building
intelligent
products
R&D,
manufacture
and sales of
Nanjing the software
Putian of 10 million 24,907,261.2 22,876,095.1 -264,652.9
Subsidiary 0.00 -264,652.91
Network Co., communicati yuan 8 2 1
Ltd. on, network
and
electronic
equipment
Out-door
patch,
sub-line
Nanjing equipment,
Putian network
Changle box(cube)of
10 million 47,668,335.0 28,647,842.7 -3,314,654.
Telecommuni Subsidiary out-door and 9,170,339.29 -3,314,654.38
yuan 4 3 38
cations machinery
Equipment office,
Co., Ltd. manufacture
and sales of
communicati
on electrical
20
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
products
Export and
import of
telecommuni
Putian
cation
Telecommuni
equipment, HKD2 -17,201,222.
cations Subsidiary 504,066.26 0.00 17,197.60 17,197.60
Hi-tech R & million 30
(H.K.) Co.,
D and
Ltd.
transfer,
technology
trade
R & D and
sales of the
Nanjing
electronic
Putian
components
Telecommuni
assembly, 5 million -2,562,766.8
cation Subsidiary 4,422,213.86 0.00 -85,818.22 -85,818.22
electronic yuan 2
Technology
products and
Company
telecommuni
Ltd.
cation
equipment
Manufacture
Nanjing and sales of
Nanman industrial 41.14 million 192,388,655. 51,192,990.8 42,740,309.8 -225,440.8
Subsidiary -656,744.83
Electric Co., intelligent yuan 44 5 1 4
Ltd. distribution
products
R&D,
manufacture
and sales of
Nanjing
solar
Putian
controller,
Datang 10 million 45,782,395.0 29,624,543.2 -1,695,473.
Subsidiary and 9,658,800.25 -1,670,728.87
Information yuan 6 1 13
production &
Electronic
processing
Co., Ltd
business of
electronic
products
Chongqing Information
Puhua system
50 million
Information Subsidiary integration 2,063,246.37 1,958,819.96 7,225,899.25 -63,265.91 -49,719.58
yuan
Technology service,
Co., Ltd. computer
21
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
software and
hardware and
peripherals
manufacturin
g,
manufacture
of the cloud
computing
devices,
telecommuni
cation
equipment
and internet
devices, big
data services
and software
development
Particular about subsidiaries acquired or disposed in reporting period
√ Applicable □ Not applicable
Method of acquisition and disposal during Impact on overall production operations
Name
the reporting period and results
Purchasing 25% equity from minority
Nanjing Nanman Electric Co., Ltd. shareholders, and shareholding ratio up to No significant impact
100% from 75%
Information note
-
IX. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
X. Risks and countermeasures
1. Cycle risk of communication industry
The Company is mainly engaged in the manufacture and sales of communications products, customers include
several major telecom operators in China. The establishment and adjustment of network construction period and
investment plan of the operators have a significant impact on the operation of the Company and bring the industry
cycle risk.
The Company will continue to further integrate quality resources, accelerate industry upgrade, expand industry
market and improve industry profitability.
22
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
2.Technology R&D risk
The telecommunication industry is experiencing rapid change of technology development and product upgrade.
Therefore, the Company’s business operation will be adversely affected if it cannot adapt to market change, lag
behind in the technology reform or the developed products do not satisfy market demands.
The Company will actively follow up the latest development trend of industrial technology, develop and introduce
technology based on market requirements, focus on organization, planning and management of product
development and expand development of new products, aiming to maintaining the leading position in terms of
technology.
3.Market competition risk
The industry in which the Company operates is highly competitive with substantial market players. Besides,
customers, such as various operators, continue to adopt centralized procurement policy which led to very furious
market competition. Benefiting from long-term operation, the Company has accumulated certain competitive
advantages in terms of brand, technology, quality and marketing. If our products fail to cater for the market
variation in future, we may lose the existing advantages in market competition.
The Company will continue to capitalize on the existing advantages to consolidate traditional market while
expanding special network and industry markets actively, and accelerate the transformation and upgrading of
industries and foster strategic emerging industries. Through continuous cost control and scientific innovation, it
continues to improve production and research capability, which leads to rapid development of the new products
and enables the Company to maintain and improve profitability.
4. Cash flow shortage risk
Products of the Company are used in operator network construction, subway construction and other projects.
Affected by project completion cycle and long approval process, sales return cycle is longer and the cash flow
pressure is greater.
The company will strengthen the management of financial statement and budget, strengthen the control of funds,
and speed up the withdrawal of funds; Strengthen inventory management, improve inventory liquidity, do a good
job in deleveraging and reducing liabilities; Gradually reduce the scale of corporate debt by improving
management.
23
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Section IV Corporate Governance
I. In the reporting period, the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
1. Shareholders’ General Meeting in the reporting period
Ratio of investor
Session of meeting Type Date Date of disclosure Resolutions
participation
The Meeting have
deliberated and
approved the follow
proposals: (1) Report
on the Work of BOD
for year of 2020; (2)
Report on the Work
of BOS for year of
2020; (3)Financial
Account Report for
year of 2020;
(4)Profit Distribution
Annual General
AGM 53.93% 26 May 2021 27 May 2021 Plan 2020; (5)
Meeting of 2020
Annual Report of
2020; (6) Guarantee
Provided for
Subsidiaries; (7)
Estimated the Daily
Related Transactions
for year of 2021; (8)
Amend the Article of
Association and
(9)Application for
the Entrusted Loans
to China Potevio.
The Meeting have
deliberated and
First Extraordinary
Extraordinary approved the follow
Shareholders
Shareholders 53.93% 27 May 2021 28 May 2021 proposals:(1)Applica
General Meeting of
General Meeting tion for the Entrusted
2021
Loans to China
Potevio.
24
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
II. Changes of directors, supervisors and senior executives
□ Applicable √ Not applicable
There are no change of directors, supervisors and senior executives during the reporting period, found more in the Annual Report
2020
III. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the semi-annual year.
IV. Implementation of the Company’s stock incentive plan, employee stock ownership plan or
other employee incentives
□ Applicable √ Not applicable
The Company has no equity incentive plan, employee stock ownership plans or other employee incentives in Period.
25
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Section V Environmental and Social Responsibility
I. Major environment protection
The listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department
□Yes √No
Administrative penalties for environmental problems during the reporting period
Impact on the
The Company or Reasons for production and Rectification
Violation situation Penalty results
subsidiary penalties operation of the measures
listed company
- - - - - -
Other environmental information disclosed with reference to the key emission units -
Reasons for not disclosing other environmental information
The Company and its subsidiaries do not belong to the key emission units announced by environmental protection department.
During the daily production and operation, the Company conscientiously implements the national laws and regulations on
environmental protection, and there were no administrative penalties for environmental issues during the reporting period.
II. Social responsibility
Based on the communications industry, the company adheres to independent innovation, continuously promotes
the sustainable development of itself and society, and fulfills its responsibilities and obligations to society,
shareholders, employees and other interested parties.
The company continuously improves and optimizes corporate governance, earnestly fulfills its obligation of
information disclosure, ensures shareholders’ right to know, right to participate and right to vote on major matters
of the company, and guarantees the legitimate rights and interests of all shareholders.
The company attaches great importance to quality, environment and occupational safety and health management.
It has passed GB/T19001-2016 quality management system certification, GB/T24001-2016 environmental
management system certification, and GB/T28001-2011 occupational health and safety management system
certification, and constantly strives to promote environmental protection and sustainable development.
The company strictly abides by the Labor Law, Labor Contract Law and other laws and regulations, always
adheres to the people-oriented core values, attaches great importance to the value of employees, cares about the
work, life, health and safety of employees, effectively protects the rights and interests of employees, enhances the
26
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
cohesion of the company, devotes to the realization of the joint development vision of the company and its
employees.
The company has always kept in mind the mission and responsibility of the central enterprise and is enthusiastic
about devoting itself to social welfare undertakings, and participate in the love and help donation activities and
public welfare activities many times.
The company is honest and trustworthy, operating in accordance with the law, actively building partnerships with
suppliers, customers, banks and other relevant stakeholders, respecting the legitimate rights and interests of
stakeholders, focusing on communication and coordination with various stakeholders, and achieving a win-win
situation of the company and stakeholders, and promoting the company’s sustained and steady development.
27
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Section VI. Important Events
I. Undertakings that the actual controller, shareholders, related party, buyers and the
Company have fulfilled during the reporting period and have not yet fulfilled by the end of
reporting period
□ Applicable √ Not applicable
No undertakings that the actual controller, shareholders, related party, buyers and the Company have fulfilled during the reporting
period and have not yet fulfilled by the end of the period
II. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
III. External guarantee out of the regulations
□ Applicable √ Not applicable
No external guarantee out of the regulations occurred in the period.
IV. Appointment and non-reappointment (dismissal) of CPA
Whether the financial report of semi-annual report has been audited
□Yes √No
The semi-annual report of the Company is unaudited.
V. Explanation from Board of Directors and Supervisory Committee for “Non-standard audit
report” that issued by CPA
□ Applicable √ Not applicable
VI. Explanation from the BOD on the previous year’s “non-standard audit report”
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization occurred during the reporting period.
28
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
VIII. Litigation
Major litigation and arbitration
□ Applicable √ Not applicable
No major litigation and arbitration occurred in the Period.
Other litigation
√ Applicable □ Not applicable
Amount Progress of Trial Results and Judgment
Basic Situation of Whether
Related to the Litigation Effects of Implementation Disclosure Disclosure
Litigation Formed Accrued
Case (Arbitration Litigation of Litigation Date Index
(Arbitration) Liabilities
(10’000Yuan) ) (Arbitration) (Arbitration)
The closed
litigation
was RMB
Other litigation No significant
2.895
that does not meet impact on the The closed
million, and
the disclosure 291.93 No current profit or litigation has
the
standards of major profit after the been executed
litigation
litigation period
under trial
was RMB
23,700
IX. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
X. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XI. Major related party transaction
1. Day-to-day related party transaction
√ Applicable □ Not applicable
Related
Whether
Content party Trading
Proporti over the Clearing
Type of of Related transacti limit Availabl Index
Pricing on in approve form for Date of
Related Relation related related party on approve e similar of
principl similar d related disclosu
party ship transacti party transacti amount d (in 10 market disclos
e transacti limited transacti re
on transacti on price (in 10 thousan price ure
ons or not on
on thousan d Yuan)
(Y/N)
d Yuan)
29
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Notice
on
Foreca
st of
Purchas
Routin
e of
e
products
Relate
Controll and
d
China ing receipt Telecom Market Bank April
37.17 37.17 0.11% 5,000 N 37.17 Transa
Potevio sharehol of product price transfer 20, 2021
ction
der services
for
from
2021
related
publis
parties
hed on
Juchao
Websit
e
Purchas
Other Other
e of
enterpris enterpris
products
e es
and The
controll controll
receipt Telecom Market Bank April same
ed by ed by 30.43 30.43 0.09% 500 N 30.43
of product price transfer 20, 2021 as
China the same
services above
Putian benefici
from
Corpora al owner
related
tion
parties
Purchas
-Includi Other e of
ng: enterpris products
Nanjing es and The
Goods/L
Putian controll receipt Market Bank April same
abor 17.52 17.52 0.05% N 17.52
Honyar ed by of price transfer 20, 2021 as
Services
Electrics the same services above
Tech. benefici from
Co., Ltd al owner related
parties
-Includi Other Purchas
ng: enterpris e of The
Putian es products Labor Market Bank April same
12.91 12.91 0.04% N 12.91
High-tec controll and service price transfer 20, 2021 as
h ed by receipt above
Industry the same of
30
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Co., benefici services
Ltd. al owner from
related
parties
Sales of
Beijing Enterpri
products
Putian ses
and
Desheng controll The
provisio
Technol ed by Telecom Market Bank April same
n of 0 0 0.00% 500 N 0
ogy the product price transfer 20, 2021 as
services
Incubato actual above
to
r Co., controll
related
ltd er
parties
Sales of
products
and
Controll The
provisio
China ing Telecom Market Bank April same
n of 38.43 38.43 0.09% 1,000 N 38.43
Potevio sharehol product price transfer 20, 2021 as
services
der above
to
related
parties
Sales of
Subsidia
products
ry
Putian and
enterpris The
Commu provisio
e of Telecom Market Bank April same
nication n of 0 0 0.00% 2,000 N 0
controlli product price transfer 20, 2021 as
s Co., services
ng above
Ltd. to
sharehol
related
der
parties
Sales of
Subsidia
products
Potevio ry
and
Informat enterpris The
provisio
ion e of Telecom Market Bank April same
n of 0 0 0.00% 500 N 0
Technol controlli product price transfer 20, 2021 as
services
ogy Co., ng above
to
Ltd. sharehol
related
der
parties
Other Other Sales of The
Telecom Market Bank April
enterpris enterpris products 107.29 107.29 0.25% 1,400 N 107.29 same
product price transfer 20, 2021
e es and as
31
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
controll controll provisio above
ed by ed by n of
China the services
Putian actual to
Corpora controll related
tion er parties
Other Sales of
-Includi enterpris products
ng: es and
The
Eastern controll provisio
Telecom Market Bank April same
Commu ed by n of 103.42 103.42 0.23% N 103.42
product price transfer 20, 2021 as
nication the services
above
s Co., actual to
Ltd. controll related
er parties
-Includi Other Sales of
ng: enterpris products
Putian es and
The
Eastern controll provisio
Telecom Market Bank April same
Commu ed by n of 2.26 2.26 0.01% N 2.26
product price transfer 20, 2021 as
nication the services
above
s Group actual to
Co., controll related
Ltd. er parties
Other Sales of
-Includi enterpris products
ng: es and
The
Potevio controll provisio
Telecom Market Bank April same
New ed by n of 1.61 1.61 0.00% N 1.61
product price transfer 20, 2021 as
Energy the services
above
Co., actual to
Ltd. controll related
er parties
Lease of
Subsidia related
ry party
Putian enterpris properti Rent The
Hi-Tech e of es and and Market Bank April same
26.84 26.84 32.69% 100 N 26.84
Industry controlli receipt property price transfer 20, 2021 as
Co., Ltd ng of fees above
sharehol related
der party
services
32
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Total -- -- 240.16 -- 11,000 -- -- -- -- --
Detail of sales return with major
N/A
amount involved
It is estimated that routine related transactions occurred in 2021 will not exceed 110 million
Yuan (of which, the amount purchase of products and receipt of services from related parties
Report the actual implementation of will not be more than 55 million Yuan, sales of products and provision of services to related
the day-to-day related transactions parties will not be more than 54 million Yuan, rent and property fees of the leased related
which were projected about their party's real estate will not be more than 1 million Yuan); the related transaction actually
total amount by types during the occurred amounted as 2.4016 million Yuan (of which, 0.676 million Yuan from purchasing
reporting period (if applicable) goods and receiving labor service, 1.4572 million Yuan from sales of product and provide
labor services, rental and property expenses amounted as 0.2684 million Yuan) in total that
not more than expected at beginning of the year.
Reasons for major differences
between trading price and market Not applicable
reference price (if applicable)
2. Related party transactions of assets acquisition and sold
□ Applicable √ Not applicable
No related party transactions of assets acquisition and sold occurred during the reporting period
3. Related party transactions of mutual investment outside
□ Applicable √ Not applicable
No related party transactions of mutual investment outside occurred during the reporting period.
4. Contact of related party credit and debt
√ Applicable □ Not applicable
Whether the Company had non-operating contact of related credit and debt
□ Yes √ No
The Company had no non-operating contact of related credit and debt in the reporting period.
5. Contact with the related finance companies and finance companies that controlled by the Company
□ Applicable √ Not applicable
There are no deposits, loans, credits or other financial business between the Company and the finance companies with related
relationships or between the finance companies controlled by the Company and related parties
6. Other material related party transactions
√ Applicable □ Not applicable
The Company applied for entrusted loan from controlling shareholder- China Potevio in the reporting period. As of the end of the
reporting period, the balance of entrusted loans provided by the controlling shareholder was 95 million yuan.
33
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Website for temporary disclosure of the major connected transaction
Announcement Date of disclosure Website for disclosure
Relation Transaction of Applying Entrust Loan
March 10, 2021 Juchao Website: www.cninfo.com.cn
from Controlling Shareholder
Relation Transaction of Applying Entrust Loan
May 7, 2021 Juchao Website: www.cninfo.com.cn
from Controlling Shareholder
XII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship occurred during the reporting period
(2) Contract
□ Applicable √ Not applicable
No contract occurred during the reporting period
(3) Leasing
√ Applicable □ Not applicable
Explanation on leasing
During the reporting period, the company and its subsidiaries incurred rental fee and property fee of 0.82 million yuan, and rental
income of 0.97 million yuan.
Items that bringing gain/loss to the Company more than 10% of the total profits in reporting period
□ Applicable √ Not applicable
No items generated over 10% gains/losses in total profit in reporting period for the Company
2. Material guarantees
√Applicable □Not applicable
Unit: 10’000 yuan
Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
Related Counter Guarante
Name of
Announce Actual date Actual Collateral -guarant e for
the Guarantee Guarantee Guarantee Implemen
ment of guarantee (if ee related
Company limit type term ted (Y/N)
disclosure happening limit applicable) situatio party
guaranteed
date n (if (Y/N)
34
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
applica
ble)
Guarantee of the Company for the subsidiaries
Counter
Related -guarant Guarante
Name of
Announce Actual date Actual Collateral ee e for
the Guarantee Guarantee Guarantee Implemen
ment of guarantee (if situatio related
Company limit type term ted (Y/N)
disclosure happening limit applicable) n (if party
guaranteed
date applica (Y/N)
ble)
Nanjing
Jointly 2021.6.29
Southern April 20, June 23,
5,000 1,000 liability -2022.3.2 N N
Telecom 2021 2021
guaranty 2
Co., Ltd
Total amount of Total amount of actual
approving guarantee for occurred guarantee for
10,500 1,000
subsidiaries in report subsidiaries in report
period (B1) period (B2)
Total amount of Total balance of actual
approved guarantee for guarantee for
10,500 1,000
subsidiaries at the end of subsidiaries at the end of
reporting period (B3) reporting period (B4)
Guarantee of the subsidiary for subsidiaries
Counter
Related -guarant Guarante
Name of
Announce Actual date Actual Collateral ee e for
the Guarantee Guarantee Guarantee Implemen
ment of guarantee (if situatio related
Company limit type term ted (Y/N)
disclosure happening limit applicable) n (if party
guaranteed
date applica (Y/N)
ble)
Total amount of guarantee of the Company (total of three above mentioned guarantee)
Total amount of actual
Total amount of approving
occurred guarantee in
guarantee in report period 10,500 1,000
report period
(A1+B1+C1)
(A2+B2+C2)
Total balance of actual
Total amount of approved
guarantee at the end of
guarantee at the end of report 10,500 1,000
report period
period (A3+B3+C3)
(A4+B4+C4)
The proportion of the total amount of actually
guarantee in the net assets of the Company (that is 5.76%
A4+ B4+C4)
Including:
35
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Amount of guarantee for shareholders, actual
0
controller and its related parties (D)
The debts guarantee amount provided for the
guaranteed parties whose assets-liability ratio 0
exceed 70% directly or indirectly (E)
Proportion of total amount of guarantee in net
0
assets of the Company exceed 50% (F)
Total amount of the aforesaid three guarantees
0
(D+E+F)
As for the unexpired guarantee contract,
explanation on the guarantee liability has been
incurred during the reporting period or there is N/A
evidence of the possibility of join and several
liability (if applicable)
Explanations on external guarantee against
N/A
regulated procedures (if applicable)
Explanation on guarantee using the composite way
3. Trust financing
□ Applicable √ Not applicable
The Company had no trust financing in the reporting period.
4. Significant contracts for daily operation
□ Applicable √ Not applicable
5. Other significant contract
□ Applicable √ Not applicable
The company had no other significant contract in the reporting period.
XIII. Description of other significant matters
√Applicable □Not applicable
1.During the reporting period, the company received a notification from China Potevio Information Industry Group Co., Ltd.
(hereinafter referred to as "Potevio"), the actual controller of the company, the State-owned Assets Supervision and Administration
Commission of the State Council (hereinafter referred to as the SASAC) studied and reported it the State Council for approval, which
agreed to the restructuring of Potevio and China Electronics Technology Group Corporation (hereinafter referred to as "CETC").
Potevio as a whole was transferred to CETC free of charge and become a wholly-owned subsidiary of CETC. Potevio is no longer an
enterprise performing the responsibility of investor as SASAC. After the completion of the reorganization, the proportion of shares
indirectly held by Potevio in the Company does not change, and the actual controller of the company is changed from Potevio to
36
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
CETC. The company shall timely disclose the progress of the above matters in accordance with the provisions of relevant laws,
regulations and normative documents. For details, please refer to the Indicative Announcement on the Free Transfer of the Overall
Property Rights of the Actual Controller and the Announcement on the Approval of the Reorganization of Potevio and CETC
disclosed by the company on February 25, 2021 and June 24, 2021.
2. Major events disclosed by the company during the reporting period are indexed as follows:
Matters (name of announcement) Disclosure date Index of information on appointed website
Announcement on the completion of the transfer of 2021.1.5 Juchao Website (www.cninfo.com.cn)
the underlying assets of major asset sales and
related-party transactions
Report on the implementation of major asset sales 2021.1.5 Juchao Website (www.cninfo.com.cn)
and related-party transactions
Announcement on Major Asset Sales and Related 2021.1.5 Juchao Website (www.cninfo.com.cn)
Party Transactions Commitments
Announcement on the progress of the transfer of 2021.1.5 Juchao Website (www.cninfo.com.cn)
Subsidiary's equity
Announcement on the progress of the acquisition of 2021.1.7 Juchao Website (www.cninfo.com.cn)
the equity of Subsidiary and the merger of Subsidiary
Announcement on Resolution of 46th Session of 7th 2021.1.22 Juchao Website (www.cninfo.com.cn)
BOD
2020 annual performance forecast 2021.1.30 Juchao Website (www.cninfo.com.cn)
Announcement of abnormal fluctuations in stock 2021.2.24 Juchao Website (www.cninfo.com.cn)
trading
Indicative announcement on the proposed free 2021.2.25 Juchao Website (www.cninfo.com.cn)
transfer of the overall property rights of the actual
controller
Announcement on the response to the Shenzhen 2021.3.3 Juchao Website (www.cninfo.com.cn)
Stock Exchange's letter of concern
Announcement on Resolution of 47th Session of 7th 2021.3.10 Juchao Website (www.cninfo.com.cn)
BOD
Announcement on Related Transaction of Applying 2021.3.10 Juchao Website (www.cninfo.com.cn)
for Entrust Loans to Controlling Shareholder
Preliminary Earnings Estimate for 2020 2021.4.15 Juchao Website (www.cninfo.com.cn)
Performance Forecast for Q1 of 2021 2021.4.15 Juchao Website (www.cninfo.com.cn)
th th
Announcement on Resolution of 48 Session of 7 2021.4.20 Juchao Website (www.cninfo.com.cn)
BOD
Announcement on Resolution of 20th Session of 7th 2021.4.20 Juchao Website (www.cninfo.com.cn)
Supervisory Committee
Summary of Annual Report 2020 2021.4.20 Juchao Website (www.cninfo.com.cn)
Announcement on Provision for Impairment of 2021.4.20 Juchao Website (www.cninfo.com.cn)
Assets for 2020
Announcement on Guarantee for Controlling 2021.4.20 Juchao Website (www.cninfo.com.cn)
37
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Subsidiary
Announcement of the Forecast for Routine Related 2021.4.20 Juchao Website (www.cninfo.com.cn)
Transaction for year of 2021
Announcement on Convening the AGM of 2020 2021.4.20 Juchao Website (www.cninfo.com.cn)
Text of First Quarterly Report 2021 2021.4.29 Juchao Website (www.cninfo.com.cn)
CITIC Securities Co., Ltd.'s 2020 continuous 2021.4.30 Juchao Website (www.cninfo.com.cn)
supervision report on major asset sales and related
transactions of Nanjing Putian Communications Co.,
Ltd.
Announcement on Resolution of 50th Session of 7th 2021.5.7 Juchao Website (www.cninfo.com.cn)
BOD
Announcement on Related Transaction of Applying 2021.5.7 Juchao Website (www.cninfo.com.cn)
for Entrust Loans to Controlling Shareholder
Announcement on Convening the First 2021.5.7 Juchao Website (www.cninfo.com.cn)
Extraordinary General Meeting of Shareholders of
2021
Announcement on convening the 2020 annual 2021.5.10 Juchao Website (www.cninfo.com.cn)
performance online briefing
Announcement on Resolution of AGM of 2020 2021.5.27 Juchao Website (www.cninfo.com.cn)
st
Announcement on Convening the 1 Extraordinary 2021.5.28 Juchao Website (www.cninfo.com.cn)
Shareholders General Meeting of 2021
Announcement on Reply to Inquiry Letter of 2021.6.22 Juchao Website (www.cninfo.com.cn)
Shenzhen Stock Exchange Annual Report
Announcement on the approval of the reorganization 2021.6.24 Juchao Website (www.cninfo.com.cn)
of China Putian and China Electric Technology
Announcement on the progress of guarantee for 2021.6.30 Juchao Website (www.cninfo.com.cn)
Subsidiary
XIV. Important event of the subsidiaries
□ Applicable √ Not applicable
38
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Section VII. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
Unit: share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Public
New reserve
Bonus
Amount Proportion shares transfer Others Subtotal Amount Proportion
shares
issued into share
capital
115,000,0 115,000,0
I. Unlisted shares 53.49% 53.49%
00 00
115,000,0 115,000,0
1. Sponsor’s shares 53.49% 53.49%
00 00
Including: 115,000,0 115,000,0
53.49% 53.49%
state-owned shares 00 00
Domestic legal
person’s shares
Foreign legal person’s
shares
Other
2. Collection of
corporate shares
3. Internal employee
shares
4. Preferred Stock or
other
100,000,0 100,000,0
II. Listed shares 46.51% 46.51%
00 00
1. RMB ordinary shares
2. Domestically listed 100,000,0 100,000,0
46.51% 46.51%
foreign shares 00 00
3. Foreign listed
overseas shares
39
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
4. Other
215,000,0 215,000,0
III. Total shares 100.00% 100.00%
00 00
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changed
□ Applicable √ Not applicable
Progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of lock-up stocks
□ Applicable √ Not applicable
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
Unit: share
Total preference shareholders
Total common stock
with voting rights recovered at
shareholders in reporting 8,436 0
end of reporting period (if
period-end
applicable) (see note 8)
Particulars about common shares held above 5% by shareholders or top ten common shareholders
Amount Amount Amount Information of shares pledged,
of of of tagged or frozen
Changes
Full name of Nature of Proportion of common restricte common
in report
Shareholders shareholder shares held shares d shares
period State of share Amount
held at common held
the end shares without
40
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
of held restricti
reportin on
g period
China Potevio
State-owned 115,000, 115,000,
Company 53.49% 0 0
corporation 000 000
Limited
Shenwan
Foreign 6,386,82 6,386,82
HongYuan 2.97% 0 0
corporation 0 0
(H.K.) Limited
GUOTAI
JUNAN
Foreign 2,678,96 -2,700,1 2,678,96
SECURITIES( 1.25% 0
corporation 0 54 0
HONGKONG)
LIMITED
Domestic nature 2,449,73 2,449,73
Zheng Enyue 1.14% 0 0
person 9 9
Domestic nature 2,000,00 2,000,00
Sun Huiming 0.93% -7,110 0
person 0 0
Domestic nature 1,871,37 1,871,37
Gu Jinhua 0.87% 0 0
person 1 1
Guosen
Securities Foreign 1,828,68 1,828,68
0.85% 0 0
(H.K.) Broker corporation 2 2
Co., Ltd.
BOCI
Foreign 1,266,94 1,266,94
SECURITIES 0.59% 0 0
corporation 5 5
LIMITED
Zheng Domestic nature
0.43% 924,000 18,400 0 924,000
Hongquan person
Domestic nature
Xiang Yan 0.42% 905,602 0 0 905,602
person
Strategy investor or general legal
person becoming the top 10
common shareholders by placing N/A
new shares (if applicable) (see note
3)
Explanation on associated Among the top ten shareholders, China Potevio is neither a related party nor a person acting in
relationship among the aforesaid concert with the others. It’s unknown by the Company whether there are related parties or
shareholders persons acting in concert among the other shareholders.
Description of the above N/A
41
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
shareholders in relation to
delegate/entrusted voting rights and
abstention from voting rights.
Special note on the repurchase
account among the top 10
N/A
shareholders (if applicable) (see
note 11)
Particular about top ten shareholders with un-lock up common stocks held
Amount of common shares held without restriction at Type of shares
Shareholders’ name
Period-end Type Amount
Domestically
Shenwan HongYuan (H.K.) Limited 6,386,820 listed foreign 6,386,820
shares
GUOTAI JUNAN Domestically
SECURITIES(HONGKONG) 2,678,960 listed foreign 2,678,960
LIMITED shares
Domestically
Zheng Enyue 2,449,739 listed foreign 2,449,739
shares
Domestically
Sun Huiming 2,000,000 listed foreign 2,000,000
shares
Domestically
Gu Jinhua 1,871,371 listed foreign 1,871,371
shares
Domestically
Guosen Securities (H.K.) Broker
1,828,682 listed foreign 1,828,682
Co., Ltd.
shares
Domestically
BOCI SECURITIES LIMITED 1,266,945 listed foreign 1,266,945
shares
Domestically
Zheng Hongquan 924,000 listed foreign 924,000
shares
Domestically
Xiang Yan 905,602 listed foreign 905,602
shares
Domestically
Liang Wei 772,800 listed foreign 772,800
shares
42
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Expiation on associated relationship
or consistent actors within the top
10 un-lock up common shareholders It is unknown whether the shareholders just mentioned belong to consistent actors or have
and between top 10 un-lock up associated relationship.
common shareholders and top 10
common shareholders
Explanation on top 10 common
shareholders involving margin N/A
business (if applicable) (see note 4)
Whether top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held of the Company have no
buy-back agreement dealing in reporting period.
IV. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report
2020.
V. Changes in controlling shareholders or actual controllers
Change of controlling shareholder during the reporting period
□ Applicable √ Not applicable
The Company had no change of controlling shareholder during the reporting period
Change of actual controller during the reporting period
□ Applicable √ Not applicable
The Company had no change of actual controller during the reporting period
43
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Section VIII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period
44
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Section IX. Corporate Bonds
□ Applicable √ Not applicable
45
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Section X. Financial Report
I. Audit report
Whether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited
II. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
Nanjing Putian Telecommunications Co., Ltd.
Consolidated balance sheet as at June 30, 2021
(Expressed in Renminbi Yuan)
Note
Assets Closing balance Opening balance
No.
Current assets:
Cash and bank balances 1 90,221,585.93 209,849,710.96
Settlement funds
Loans to other banks
Held-for-trading financial assets
Derivative financial assets
Notes receivable 2 20,215,362.47 17,029,051.04
Accounts receivable 3 529,083,330.61 493,992,403.49
Receivables financing 4 13,747,563.72 32,594,702.60
Advances paid 5 26,113,911.42 19,616,348.65
Premiums receivable
Reinsurance accounts receivable
Reinsurance reserve receivable
Other receivables 6 18,122,691.90 16,911,790.31
Financial assets under reverse repo
Inventories 7 226,870,395.21 199,641,972.32
Contract assets
Assets classified as held for sale
Non-current assets due within one year
Other current assets 8 13,311,935.75 13,126,022.08
Total current assets 937,686,777.01 1,002,762,001.45
Non-current assets:
Loans and advances paid
Debt investments
Other debt investments
Long-term receivables
46
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Long-term equity investments 9 10,422,055.77 10,422,056.96
Other equity instrument investments 10 741,953.00 741,953.00
Other non-current financial assets
Investment property 11 4,076,777.32 4,267,013.35
Fixed assets 12 98,429,381.98 100,158,063.58
Construction in progress 13 23,811,418.56 22,454,792.27
Productive biological assets
Oil & gas assets
Right-of-use assets
Intangible assets 14 20,778,350.12 21,261,119.40
Development expenditures
Goodwill
Long-term prepayments 15 5,382,379.54 5,541,410.81
Deferred tax assets 16
Other non-current assets
Total non-current assets 163,642,316.29 164,846,409.37
Total assets 1,101,329,093.30 1,167,608,410.82
Nanjing Putian Telecommunications Co., Ltd.
Consolidated balance sheet as at June 30, 2021 (continued)
(Expressed in Renminbi Yuan)
Note
Liabilities & Equity Closing balance Opening balance
No.
Current liabilities:
Short-term borrowings 17 140,500,000.00 65,000,000.00
Central bank loans
Loans from other banks
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 18 14,698,110.10 76,135,010.10
Accounts payable 19 561,701,149.98 604,765,586.00
Advances received 20
Contract liabilities 21 31,494,936.69 28,518,252.40
Financial liabilities under repo
Absorbing deposit and interbank deposit
Deposit for agency security transaction
Deposit for agency security underwriting
Employee benefits payable 22 16,999,268.19 17,362,878.28
Taxes and rates payable 23 6,327,204.25 8,707,248.67
Other payables 24 56,473,719.89 53,759,120.63
Handling fee and commission payable
Reinsurance accounts payable
Liabilities classified as held for sale
Non-current liabilities due within one year 25 7,954,722.25 9,181,720.08
Other current liabilities 26 3,778,589.00 3,707,372.81
Total current liabilities 839,927,700.35 867,137,188.97
47
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Non-current liabilities:
Insurance policy reserve
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables 27 4,036,160.05
Long-term employee benefits payable
Provisions
Deferred income 28
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 4,036,160.05
Total liabilities 839,927,700.35 871,173,349.02
Equity:
Share capital/Paid-in capital 29 215,000,000.00 215,000,000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 30 196,286,481.92 183,568,842.44
Less: Treasury shares
Other comprehensive income 31 -5,891,985.07 -6,853,931.65
Special reserve
Surplus reserve 32 589,559.77 589,559.77
General risk reserve
Undistributed profit 33 -232,274,176.83 -202,680,309.64
Total equity attributable to the parent company 173,709,879.79 189,624,160.92
Non-controlling interest 87,691,513.16 106,810,900.88
Total equity 261,401,392.95 296,435,061.80
Total liabilities & equity 1,101,329,093.30 1,167,608,410.82
Nanjing Putian Telecommunications Co., Ltd.
Parent company balance sheet as at June 30, 2021
(Expressed in Renminbi Yuan)
Note
Assets Closing balance Opening balance
No.
Current assets:
Cash and bank balances 20,592,675.73 57,345,349.24
Held-for-trading financial assets
Derivative financial assets
Notes receivable 237,500.00 1,190,734.45
Accounts receivable 1 203,731,115.33 218,887,318.18
Receivables financing 1,683,955.00
Advances paid 8,950,718.25 10,138,293.79
48
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Other receivables 2 41,635,450.06 50,275,151.96
Inventories 83,081,841.77 80,454,321.56
Contract assets
Assets classified as held for sale
Non-current assets due within one year
Other current assets 5,787,633.65 7,516,579.06
Total current assets 365,700,889.79 425,807,748.24
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 3 123,831,124.41 123,831,124.60
Other equity instrument investments 741,953.00 741,953.00
Other non-current financial assets
Investment property
Fixed assets 43,682,729.77 45,117,637.57
Construction in progress
Productive biological assets
Oil & gas assets
Right-of-use assets
Intangible assets 4,825,084.05 5,006,099.13
Development expenditures
Goodwill
Long-term prepayments 3,859,520.94 4,461,404.63
Deferred tax assets
Other non-current assets
Total non-current assets 176,940,412.17 179,158,218.93
Total assets 542,641,301.96 604,965,967.17
Nanjing Putian Telecommunications Co., Ltd.
Parent company balance sheet as at June 30, 2021 (continued)
(Expressed in Renminbi Yuan)
Note
Liabilities & Equity Closing balance Opening balance
No.
Current liabilities:
Short-term borrowings 95,000,000.00 30,000,000.00
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 14,698,110.10 76,135,010.10
Accounts payable 192,828,967.91 214,453,536.53
Advances received
Contract liabilities 15,011,700.79 14,109,283.43
Employee benefits payable 8,292,687.68 7,931,673.97
49
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Taxes and rates payable 403,923.89 115,233.85
Other payables 145,888,014.12 164,586,605.64
Liabilities classified as held for sale
Non-current liabilities due within one year 7,954,722.25 9,181,720.08
Other current liabilities 1,635,768.34 1,834,206.85
Total current liabilities 481,713,895.08 518,347,270.45
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables 4,036,160.05
Long-term employee benefits payable
Provisions
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 4,036,160.05
Total liabilities 481,713,895.08 522,383,430.50
Equity:
Share capital/Paid-in capital 215,000,000.00 215,000,000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 158,864,042.34 158,864,042.34
Less: Treasury shares
Other comprehensive income -1,854,910.00 -1,854,910.00
Special reserve
Surplus reserve 589,559.76 589,559.76
Undistributed profit -311,671,285.22 -290,016,155.43
Total equity 60,927,406.88 82,582,536.67
Total liabilities & equity 542,641,301.96 604,965,967.17
Nanjing Putian Telecommunications Co., Ltd.
Consolidated income statement for the year ended June 30, 2021
(Expressed in Renminbi Yuan)
Note Current period Preceding period
Items
No. cumulative comparative
I. Total operating revenue 451,878,610.43 405,172,803.62
Including: Operating revenue 1 451,878,610.43 405,172,803.62
Interest income
Premium earned
Revenue from handling charges and commission
II. Total operating cost 471,300,838.43 455,371,095.39
50
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Including: Operating cost 1 357,433,868.99 327,775,992.40
Interest expenses
Handling charges and commission expenditures
Surrender value
Net payment of insurance claims
Net provision of insurance policy reserve
Premium bonus expenditures
Reinsurance expenses
Taxes and surcharges 2 2,771,656.02 2,290,036.93
Selling expenses 3 49,061,292.58 58,811,392.65
Administrative expenses 4 29,720,592.42 27,533,357.61
R&D expenses 5 29,747,490.78 24,000,179.13
Financial expenses 6 2,565,937.64 14,960,136.67
Including: Interest expenses 2,798,625.53 15,276,918.26
Interest income 410,149.62 2,387,417.73
Add: Other income 7 1,192,018.97 6,452,807.84
Investment income (or less: losses) 8 -1.19 -137,939.58
Including: Investment income from associates and joint ventures -1.19 -137,939.58
Gains from derecognition of financial assets at amortized cost
Gains on foreign exchange (or less: losses)
Gains on net exposure to hedging risk (or less: losses)
Gains on changes in fair value (or less: losses)
Credit impairment loss 9 -2,408,210.40 -5,364,320.35
Assets impairment loss 10 -3,298,844.16
Gains on asset disposal (or less: losses) 11 15,829.32 1,244.51
III. Operating profit (or less: losses) -20,622,591.30 -52,545,343.51
Add: Non-operating revenue 12 56,934.58 3,768,822.98
Less: Non-operating expenditures 13 61,544.99 649,407.57
IV. Profit before tax (or less: total loss) -20,627,201.71 -49,425,928.10
Less: Income tax 14 4,521,812.72 2,242,233.92
V. Net profit (or less: net loss) -25,149,014.43 -51,668,162.02
(I) Categorized by the continuity of operations
1. Net profit from continuing operations (or less: net loss) -25,149,014.43 -51,668,162.02
2. Net profit from discontinued operations (or less: net loss)
(II) Categorized by the portion of equity ownership
1. Net profit attributable to owners of parent company (or less: net loss) -29,593,867.19 -58,856,854.03
2. Net profit attributable to non-controlling shareholders (or less: net loss) 4,444,852.76 7,188,692.01
VI. Other comprehensive income after tax 961,946.58 -724,622.78
Items attributable to the owners of the parent company 961,946.58 -652,160.50
(I) Not to be reclassified subsequently to profit or loss
1. Changes in remeasurement on the net defined benefit plan
2. Items under equity method that will not be reclassified to profit or loss
3. Changes in fair value of other equity instrument investments
4. Changes in fair value of own credit risk
5. Others
(II) To be reclassified subsequently to profit or loss 961,946.58 -652,160.50
1. Items under equity method that may be reclassified to profit or loss
2. Changes in fair value of other debt investments
3. Profit or loss from reclassification of financial assets into other comprehensive income
4. Provision for credit impairment of other debt investments
5. Cash flow hedging reserve
6. Translation reserve 961,946.58 -652,160.50
7. Others
Items attributable to non-controlling shareholders -72,462.28
VII. Total comprehensive income -24,187,067.85 -52,392,784.80
Items attributable to the owners of the parent company -28,631,920.61 -59,509,014.53
51
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Items attributable to non-controlling shareholders 4,444,852.76 7,116,229.73
VIII. Earnings per share (EPS):
(I) Basic EPS (yuan per share) -0.14 -0.27
(II) Diluted EPS (yuan per share) -0.14 -0.27
Nanjing Putian Telecommunications Co., Ltd.
Parent company income statement for the year ended June 30, 2021
(Expressed in Renminbi Yuan)
Note Current period Preceding period
Items
No. cumulative comparative
I. Operating revenue 1 63,611,201.65 62,600,413.61
Less: Operating cost 1 59,096,001.19 62,495,073.80
Taxes and surcharges 891,562.48 553,456.43
Selling expenses 14,093,441.48 22,491,578.45
Administrative expenses 14,173,902.23 12,223,379.98
R&D expenses 4,771,057.66 4,226,104.01
Financial expenses 1,549,446.67 14,496,890.37
Including: Interest expenses 1,997,776.76 13,154,606.78
Interest income 498,022.08 448,096.86
Add: Other income 232,500.00 1,262,915.62
Investment income (or less: losses) 2 9,153,398.81 55,129,560.42
Including: Investment income from associates and joint ventures -1.19 -137,939.58
Gains from derecognition of financial assets at amortized cost
Gains on net exposure to hedging risk (or less: losses)
Gains on changes in fair value (or less: losses)
Credit impairment loss -55,949.44 -5,633,415.93
Assets impairment loss -3,298,844.16
Gains on asset disposal (or less: losses) 15,829.32 67,992.36
II. Operating profit (or less: losses) -21,618,431.37 -6,357,861.12
Add: Non-operating revenue 22,004.66 40,400.31
Less: Non-operating expenditures 58,703.08 607,399.62
III. Profit before tax (or less: total loss) -21,655,129.79 -6,924,860.43
Less: Income tax
IV. Net profit (or less: net loss) -21,655,129.79 -6,924,860.43
(I) Net profit from continuing operations (or less: net loss) -21,655,129.79 -6,924,860.43
(II) Net profit from discontinued operations (or less: net loss)
V. Other comprehensive income after tax
(I) Not to be reclassified subsequently to profit or loss
1. Changes in remeasurement on the net defined benefit plan
2. Items under equity method that will not be reclassified to profit or loss
3. Changes in fair value of other equity instrument investments
4. Changes in fair value of own credit risk
5. Others
(II) To be reclassified subsequently to profit or loss
1. Items under equity method that may be reclassified to profit or loss
2. Changes in fair value of other debt investments
3. Profit or loss from reclassification of financial assets into other
comprehensive income
4. Provision for credit impairment of other debt investments
5. Cash flow hedging reserve
6. Translation reserve
52
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
7. Others
VI. Total comprehensive income -21,655,129.79 -6,924,860.43
VII. Earnings per share (EPS):
(I) Basic EPS (yuan per share)
(II) Diluted EPS (yuan per share)
Nanjing Putian Telecommunications Co., Ltd.
Consolidated cash flow statement for the year ended June 30, 2021
(Expressed in Renminbi Yuan)
Note Current period Preceding period
Items
No. cumulative comparative
I. Cash flows from operating activities:
Cash receipts from sale of goods or rendering of services 420,252,617.33 524,664,515.38
Net increase of client deposit and interbank deposit
Net increase of central bank loans
Net increase of loans from other financial institutions
Cash receipts from original insurance contract premium
Net cash receipts from reinsurance
Net increase of policy-holder deposit and investment
Cash receipts from interest, handling charges and commission
Net increase of loans from others
Net increase of repurchase
Net cash receipts from agency security transaction
Receipts of tax refund 1,054,350.93 2,251,512.17
Other cash receipts related to operating activities 1 14,468,443.28 26,408,848.52
Subtotal of cash inflows from operating activities 435,775,411.54 553,324,876.07
Cash payments for goods purchased and services received 373,073,984.06 386,133,169.35
Net increase of loans and advances to clients
Net increase of central bank deposit and interbank deposit
Cash payments for insurance indemnities of original insurance contracts
Net increase of loans to others
Cash payments for interest, handling charges and commission
Cash payments for policy bonus
Cash paid to and on behalf of employees 95,944,470.91 93,415,784.55
Cash payments for taxes and rates 22,940,276.09 16,591,036.09
Other cash payments related to operating activities 2 60,538,953.63 39,532,168.05
Subtotal of cash outflows from operating activities 552,497,684.69 535,672,158.04
Net cash flows from operating activities -116,722,273.15 17,652,718.03
II. Cash flows from investing activities:
Cash receipts from withdrawal of investments
Cash receipts from investment income
Net cash receipts from the disposal of fixed assets, intangible assets and other 31,890.00 9,966,200.00
long-term assets
Net cash receipts from the disposal of subsidiaries & other business units
Other cash receipts related to investing activities
Subtotal of cash inflows from investing activities 31,890.00 9,966,200.00
Cash payments for the acquisition of fixed assets, intangible assets and other 3,324,429.34 5,923,105.90
long-term assets
Cash payments for investments
Net increase of pledged borrowings
53
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Note Current period Preceding period
Items
No. cumulative comparative
Net cash payments for the acquisition of subsidiaries & other business units
Other cash payments related to investing activities
Subtotal of cash outflows from investing activities 3,324,429.34 5,923,105.90
Net cash flows from investing activities -3,292,539.34 4,043,094.10
III. Cash flows from financing activities:
Cash receipts from absorbing investments
Including: Cash received by subsidiaries from non-controlling shareholders as
investments
Cash receipts from borrowings 140,500,000.00 172,737,283.33
Other cash receipts related to financing activities 3
Subtotal of cash inflows from financing activities 140,500,000.00 172,737,283.33
Cash payments for the repayment of borrowings 70,057,921.04 207,227,384.90
Cash payments for distribution of dividends or profits and for interest expenses 7,991,968.37 30,654,979.03
Including: Cash paid by subsidiaries to non-controlling shareholders as dividend 8,722,500.00
or profit
Other cash payments related to financing activities 4 39,813,078.92 40,240,245.04
Subtotal of cash outflows from financing activities 117,862,968.33 278,122,608.97
Net cash flows from financing activities 22,637,031.67 -105,385,325.64
IV. Effect of foreign exchange rate changes on cash & cash equivalents 424,532.65 129,185.36
V. Net increase in cash and cash equivalents -96,953,248.17 -83,560,328.15
Add: Opening balance of cash and cash equivalents 170,062,746.87 208,783,866.60
VI. Closing balance of cash and cash equivalents 73,109,498.70 125,223,538.45
Nanjing Putian Telecommunications Co., Ltd.
Parent company cash flow statement for the year ended June 30, 2021
(Expressed in Renminbi Yuan)
Note Current period Preceding period
Items
No. cumulative comparative
I. Cash flows from operating activities:
Cash receipts from sale of goods and rendering of services 75,606,543.56 175,951,704.04
Receipts of tax refund 18,754.29 37,518.67
Other cash receipts related to operating activities 38,473,620.39 39,171,541.72
Subtotal of cash inflows from operating activities 114,098,918.24 215,160,764.43
Cash payments for goods purchased and services received 69,851,073.79 78,668,243.32
Cash paid to and on behalf of employees 31,619,733.53 35,297,802.39
Cash payments for taxes and rates 1,076,610.70 782,330.42
Other cash payments related to operating activities 50,209,315.10 73,919,046.61
Subtotal of cash outflows from operating activities 152,756,733.12 188,667,422.74
Net cash flows from operating activities -38,657,814.88 26,493,341.69
II. Cash flows from investing activities:
Cash receipts from withdrawal of investments
Cash receipts from investment income 4,500,000.00 55,267,500.00
Net cash receipts from the disposal of fixed assets, intangible 31,890.00 9,965,400.00
assets and other long-term assets
Net cash receipts from the disposal of subsidiaries & other
business units
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Note Current period Preceding period
Items
No. cumulative comparative
Other cash receipts related to investing activities
Subtotal of cash inflows from investing activities 4,531,890.00 65,232,900.00
Cash payments for the acquisition of fixed assets, intangible assets 441,129.96
and other long-term assets
Cash payments for investments
Net cash payments for the acquisition of subsidiaries & other
business units
Other cash payments related to investing activities
Subtotal of cash outflows from investing activities 441,129.96
Net cash flows from investing activities 4,531,890.00 64,791,770.04
III. Cash flows from financing activities:
Cash receipts from absorbing investments
Cash receipts from borrowings 95,000,000.00 97,737,283.33
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities 95,000,000.00 97,737,283.33
Cash payments for the repayment of borrowings 35,057,921.04 137,227,384.90
Cash payments for distribution of dividends or profits and for 729,270.76 10,263,867.10
interest expenses
Other cash payments related to financing activities 41,391,500.00 45,108,000.00
Subtotal of cash outflows from financing activities 77,178,691.80 192,599,252.00
Net cash flows from financing activities 17,821,308.20 -94,861,968.67
IV. Effect of foreign exchange rate changes on cash and cash
equivalents
V. Net increase in cash and cash equivalents -16,304,616.68 -3,576,856.94
Add: Opening balance of cash and cash equivalents 24,349,341.34 25,794,743.17
VI. Closing balance of cash and cash equivalents 8,044,724.66 22,217,886.23
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Nanjing Putian Telecommunications Co., Ltd.
Consolidated statement of changes in equity for the year ended June 30, 2021
(Expressed in Renminbi Yuan)
Current period cumulative
Equity attributable to parent company
Items Other equity instruments Non-controlling
Less: Other Total equity
Share capital/ Special Surplus General risk Undistributed interest
Preferred Perpetual
Capital reserve Treasury comprehensive reserve reserve profit
Paid-in capital Others income reserve
shares bonds shares
I. Balance at the end of prior year 215,000,000.00 183,568,842.44 -6,853,931.65 589,559.77 -202,680,309.64 106,810,900.88 296,435,061.80
Add: Cumulative changes of accounting
-
policies
Error correction of prior period -
Business combination under common
-
control
Others -
II. Balance at the beginning of current year 215,000,000.00 183,568,842.44 -6,853,931.65 589,559.77 -202,680,309.64 106,810,900.88 296,435,061.80
III. Current period increase (or less: decrease) 12,717,639.48 961,946.58 - -29,593,867.19 -19,119,387.72 -35,033,668.85
(I) Total comprehensive income 961,946.58 -29,593,867.19 4,444,852.76 -24,187,067.85
(II) Capital contributed or withdrawn by
12,717,639.48 - - - -12,717,640.48 -1.00
owners
1. Ordinary shares contributed by owners - -
2. Capital contributed by holders of other
- -
equity instruments
3. Amount of share-based payment included
- -
in equity
4. Others 12,717,639.48 - - -12,717,640.48 -1.00
(III) Profit distribution - - - - -10,846,600.00 -10,846,600.00
1. Appropriation of surplus reserve -
2. Appropriation of general risk reserve -
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Current period cumulative
Equity attributable to parent company
Items Other equity instruments Non-controlling
Less: Other Total equity
Share capital/ Special Surplus General risk Undistributed interest
Capital reserve Treasury comprehensive reserve
Paid-in capital Preferred Perpetual Others reserve reserve profit
shares income
shares bonds
3. Appropriation of profit to owners -10,846,600.00 -10,846,600.00
4. Others -
(IV) Internal carry-over within equity - - - - - -
1. Transfer of capital reserve to capital -
2. Transfer of surplus reserve to capital -
3. Surplus reserve to cover losses -
4. Changes in defined benefit plan carried
-
over to retained earnings
5. Other comprehensive income carried over
-
to retained earnings
6. Others -
(V) Special reserve - - - - - -
1. Appropriation of current period -
2. Application of current period -
(VI) Others -
IV. Balance at the end of current period 215,000,000.00 196,286,481.92 -5,891,985.07 589,559.77 -232,274,176.83 87,691,513.16 261,401,392.95
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Nanjing Putian Telecommunications Co., Ltd.
Consolidated statement of changes in equity for the year ended June 30, 2021 (continued)
(Expressed in Renminbi Yuan)
Preceding period comparative
Equity attributable to parent company
Items Other equity instruments Non-controlling
Less: Other General Total equity
Share capital/ Special Surplus Undistributed interest
Preferred Perpetual
Capital reserve Treasury comprehensive reserve risk
profit
Paid-in capital Others income reserve reserve
shares bonds shares
I. Balance at the end of prior year 215,000,000.00 185,374,533.85 -6,776,124.85 589,559.77 -224,644,862.48 130,557,035.50 300,100,141.79
Add: Cumulative changes of accounting policies
Error correction of prior period
Business combination under common control
Others
II. Balance at the beginning of current year 215,000,000.00 185,374,533.85 -6,776,124.85 589,559.77 -224,644,862.48 130,557,035.50 300,100,141.79
III. Current period increase (or less: decrease) -652,160.50 -58,856,854.03 -1,606,270.27 -61,115,284.80
(I) Total comprehensive income -652,160.50 -58,856,854.03 7,116,229.73 -52,392,784.80
(II) Capital contributed or withdrawn by owners
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other equity
instruments
3. Amount of share-based payment included in equity
4. Others
(III) Profit distribution -8,722,500.00 -8,722,500.00
1. Appropriation of surplus reserve
2. Appropriation of general risk reserve
3. Appropriation of profit to owners -8,722,500.00 -8,722,500.00
4. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan carried over to
retained earnings
5. Other comprehensive income carried over to
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Preceding period comparative
Equity attributable to parent company
Items Other equity instruments Non-controlling
Less: Other General Total equity
Share capital/ Special Surplus Undistributed interest
Capital reserve Treasury comprehensive reserve risk
Paid-in capital Preferred Perpetual Others reserve profit
shares income reserve
shares bonds
retained earnings
6. Others
(V) Special reserve
1. Appropriation of current period
2. Application of current period
(VI) Others
IV. Balance at the end of current period 215,000,000.00 185,374,533.85 -7,428,285.35 589,559.77 -283,501,716.51 128,950,765.23 238,984,856.99
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Nanjing Putian Telecommunications Co., Ltd.
Parent company statement of changes in equity for the year ended June 30, 2021
(Expressed in Renminbi Yuan)
Current period cumulative
Other equity instruments Less: Other
Items Share capital/ Special Undistributed
Preferred Perpetual Capital reserve Treasury comprehensive Surplus reserve Total equity
Paid-in capital Others reserve profit
shares bonds shares income
I. Balance at the end of prior year 215,000,000.00 158,864,042.34 -1,854,910.00 589,559.76 -290,016,155.43 82,582,536.67
Add: Cumulative changes of accounting policies
Error correction of prior period
Others
II. Balance at the beginning of current year 215,000,000.00 158,864,042.34 -1,854,910.00 589,559.76 -290,016,155.43 82,582,536.67
III. Current period increase (or less: decrease) -21,655,129.79 -21,655,129.79
(I) Total comprehensive income -21,655,129.79 -21,655,129.79
(II) Capital contributed or withdrawn by owners
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other equity
instruments
3. Amount of share-based payment included in equity
4. Others
(III) Profit distribution
1. Appropriation of surplus reserve
2. Appropriation of profit to owners
3. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan carried over to
retained earnings
5. Other comprehensive income carried over to retained
earnings
6. Others
(V) Special reserve
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
1. Appropriation of current period
2. Application of current period
(VI) Others
IV. Balance at the end of current period 215,000,000.00 158,864,042.34 -1,854,910.00 589,559.76 -311,671,285.22 60,927,406.88
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Nanjing Putian Telecommunications Co., Ltd.
Parent company statement of changes in equity for the year ended June 30, 2021 (continued)
(Expressed in Renminbi Yuan)
Preceding period comparative
Other equity instruments Less: Other
Items Share capital/ Undistributed
Preferred Perpetual Capital reserve Treasury comprehensive Special reserve Surplus reserve Total equity
Paid-in capital Others profit
shares bonds shares income
I. Balance at the end of prior year 215,000,000.00 172,417,299.81 -1,854,910.00 589,559.76 -354,057,972.32 32,093,977.25
Add: Cumulative changes of accounting policies
Error correction of prior period
Others
II. Balance at the beginning of current year 215,000,000.00 172,417,299.81 -1,854,910.00 589,559.76 -354,057,972.32 32,093,977.25
III. Current period increase (or less: decrease) -6,924,860.43 -6,924,860.43
(I) Total comprehensive income -6,924,860.43 -6,924,860.43
(II) Capital contributed or withdrawn by owners
1. Ordinary shares contributed by owners
2. Capital contributed by holders of other equity
instruments
3. Amount of share-based payment included in equity
4. Others
(III) Profit distribution
1. Appropriation of surplus reserve
2. Appropriation of profit to owners
3. Others
(IV) Internal carry-over within equity
1. Transfer of capital reserve to capital
2. Transfer of surplus reserve to capital
3. Surplus reserve to cover losses
4. Changes in defined benefit plan carried over to
retained earnings
5. Other comprehensive income carried over to retained
earnings
6. Others
(V) Special reserve
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
1. Appropriation of current period
2. Application of current period
(VI) Others
IV. Balance at the end of current period 215,000,000.00 172,417,299.81 -1,854,910.00 589,559.76 -360,982,832.75 25,169,116.82
[Wang Wenkui] [Wang Huailin] [Tang Yiqiao]
[Legal representative] [Officer in charge of accounting] [Head of accounting department]
(Signature and stamp) (Signature and stamp) (Signature and stamp)
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
For the year ended June 30, 2021
Monetary unit: RMB Yuan
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. The main services rendered by the
Company include installation and maintenance equipment, communication information network and computer information
system projects design, and systems integration and related consultancy service.
The financial statements have been deliberated and approved for issue by the Board of Directors dated August 25, 2021.
The Company has brought 9 subsidiaries including Nanjing Southern Telecom Co., Ltd, and Nanjing Putian Telege Intelligent
Building Co., Ltd. etc. into the consolidated scope. Please refer to notes of VII for details.
II. Preparation basis of the financial statements
(I) Preparation basis
The financial statements have been prepared on the basis of going concern.
(II) Assessment of the ability to continue as a going concern
The Company has no events or conditions that may cast significant doubts upon the Company’s ability to continue as a going
concern within the 12 months after the balance sheet date.
III. Significant accounting policies and estimates
Important note:
The Company has set up accounting policies and estimates on transactions or events such as impairment of financial instruments,
depreciation of fixed assets, depreciation of right-of-use assets, amortization of intangible assets, and revenue recognition, etc.
based on the Company’s actual production and operation features.
(I) Statement of compliance
The financial statements have been prepared in accordance with the requirements of China Accounting Standards for Business
Enterprises (CASBEs), and present truly and completely the financial position, results of operations and cash flows of the
Company.
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
(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) Accounting treatments of business combination under and not under common control
1. Accounting treatment of business combination under common control
Assets and liabilities arising from business combination are measured at carrying amount of the combined party included in the
consolidated financial statements of the ultimate controlling party at the combination date. Difference between carrying amount
of the equity of the combined party included in the consolidated financial statements of the ultimate controlling party and that of
the combination consideration or total par value of shares issued is adjusted to capital reserve, if the balance of capital reserve is
insufficient to offset, any excess is adjusted to retained earnings.
2. Accounting treatment of business combination not under common control
When combination cost is in excess of the fair value of identifiable net assets obtained from the acquiree at the acquisition date,
the excess is recognized as goodwill; otherwise, the fair value of identifiable assets, liabilities and contingent liabilities, and the
measurement of the combination cost are reviewed, then the difference is recognized in profit or loss.
(VI) Compilation method of consolidated financial statements
The parent company brings all its controlled subsidiaries into the consolidation scope. The consolidated
financial statements are compiled by the parent company according to “CASBE 33 – Consolidated Financial
Statements”, based on relevant information and the financial statements of the parent company and its
subsidiaries.
(VII) Classification of joint arrangements and accounting treatment of joint operations
1. Joint arrangements include joint operations and joint ventures.
2. When the Company is a joint operator of a joint operation, it recognizes the following items in relation to its
interest in a joint operation:
(1) its assets, including its share of any assets held jointly;
(2) its liabilities, including its share of any liabilities incurred jointly;
(3) its revenue from the sale of its share of the output arising from the joint operation;
(4) its share of the revenue from the sales of the assets by the joint operation; and
(5) its expenses, including its share of any expenses incurred jointly.
(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
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
subject to an insignificant risk of changes in value.
(IX) Foreign currency translation
1. Translation of transactions denominated in foreign currency
Transactions denominated in foreign currency are translated into RMB yuan at the spot exchange rate at the
transaction date at initial recognition. At the balance sheet date, monetary items denominated in foreign
currency are translated at the spot exchange rate at the balance sheet date with difference, except for those
arising from the principal and interest of exclusive borrowings eligible for capitalization, included in profit or
loss; non-cash items carried at historical costs are translated at the spot exchange rate at the transaction date,
with the RMB amounts unchanged; non-cash items carried at fair value in foreign currency are translated at the
spot exchange rate at the date when the fair value was determined, with difference included in profit or loss or
other comprehensive income.
2. Translation of financial statements measured in foreign currency
The assets and liabilities in the balance sheet are translated into RMB at the spot rate at the balance sheet date;
the equity items, other than undistributed profit, are translated at the spot rate at the transaction date; the
revenues and expenses in the income statement are translated into RMB at the spot exchange rate at the
transaction date. The difference arising from the aforementioned foreign currency translation is included in
other comprehensive income.
(X) Financial instruments
1. Classification of financial assets and financial liabilities
Financial assets are classified into the following three categories when initially recognized: (1) financial assets
at amortized cost; (2) financial assets at fair value through other comprehensive income; (3) financial assets at
fair value through profit or loss.
Financial liabilities are classified into the following four categories when initially recognized: (1) financial
liabilities at fair value through profit or loss; (2) financial liabilities that arise when a transfer of a financial
asset does not qualify for derecognition or when the continuing involvement approach applies; (3) financial
guarantee contracts not fall within the above categories (1) and (2), and commitments to provide a loan at a
below-market interest rate, which do not fall within the above category (1); (4) financial liabilities at amortized
cost.
2. Recognition criteria, measurement method and derecognition condition of financial assets and financial liabilities
(1) Recognition criteria and measurement method of financial assets and financial liabilities
When the Company becomes a party to a financial instrument, it is recognized as a financial asset or financial
liability. The financial assets and financial liabilities initially recognized by the Company are measured at fair
value; for the financial assets and liabilities at fair value through profit or loss, the transaction expenses thereof
are directly included in profit or loss; for other categories of financial assets and financial liabilities, the
transaction expenses thereof are included into the initially recognized amount. However, at initial recognition,
for accounts receivable that do not contain a significant financing component or contracts in which the
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
financing components with associated period less than one year are not considered, the Company measures at
their transaction price in accordance with “CASBE 14 – Revenues”.
(2) Subsequent measurement of financial assets
1) Financial assets measured at amortized cost
The Company measures its financial assets at the amortized costs using effective interest method. Gains or
losses on financial assets that are measured at amortized cost and are not part of hedging relationships shall be
included into profit or loss when the financial assets are derecognized, reclassified, amortized using effective
interest method or recognized with impairment loss.
2) Debt instrument investments at fair value through other comprehensive income
The Company measures its debt instrument investments at fair value. Interests, impairment gains or losses, and
gains and losses on foreign exchange that calculated using effective interest method shall be included into
profit or loss, while other gains or losses are included into other comprehensive income. Accumulated gains or
losses that initially recognized as other comprehensive income should be transferred out into profit or loss
when the financial assets are derecognized.
3) Equity instrument investments at fair value through other comprehensive income
The Company measures its equity instrument investments at fair value. Dividends obtained (other than those
as part of investment cost recovery) shall be included into profit or loss, while other gains or losses are
included into other comprehensive income. Accumulated gains or losses that initially recognized as other
comprehensive income should be transferred out into retained earnings when the financial assets are
derecognized.
4) Financial assets at fair value through profit or loss
The Company measures its financial assets at fair value. Gains or losses arising from changes in fair value
(including interests and dividends) shall be included into profit or loss, except for financial assets that are part
of hedging relationships.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities (including
derivatives that are liabilities) and financial liabilities designated as at fair value through profit or loss. The
Company measures such kind of liabilities at fair value. The amount of changes in the fair value of the
financial liabilities that are attributable to changes in the Company’s own credit risk shall be included into
other comprehensive income, unless such treatment would create or enlarge accounting mismatches in profit or
loss. Other gains or losses on those financial liabilities (including interests, changes in fair value that are
attributable to reasons other than changes in the Company’s own credit risk) shall be included into profit or
loss, except for financial liabilities that are part of hedging relationships. Accumulated gains or losses that
originally recognized as other comprehensive income should be transferred out into retained earnings when the
financial liabilities are derecognized.
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
2) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when
the continuing involvement approach applies
The Company measures its financial liabilities in accordance with “CASBE 23 – Transfer of Financial
Assets”.
3) Financial guarantee contracts not fall within the above categories 1) and 2), and commitments to provide a
loan at a below-market interest rate, which do not fall within the above category 1)
The Company measures its financial liabilities at the higher of: a. the amount of loss allowances in accordance
with impairment requirements of financial instruments; b. the amount initially recognized less the amount of
accumulated amortization recognized in accordance with “CASBE 14 – Revenues”.
4) Financial liabilities at amortized cost
The Company measures its financial liabilities at amortized cost using effective interest method. Gains or
losses on financial liabilities that are measured at amortized cost and are not part of hedging relationships shall
be included into profit or loss when the financial liabilities are derecognized and amortized using effective
interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
a. the contractual rights to the cash flows from the financial assets expire; or
b. the financial assets have been transferred and the transfer qualifies for derecognition in accordance with “CASBE 23 –
Transfer of Financial Assets”.
2) Only when the underlying present obligations of a financial liability are relieved totally or partly may the financial liability be
derecognized accordingly.
3. Recognition criteria and measurement method of financial assets transfer
Where the Company has transferred substantially all of the risks and rewards related to the ownership of the
financial asset, it derecognizes the financial asset, and any right or liability arising from such transfer is
recognized independently as an asset or a liability. If it retained substantially all of the risks and rewards
related to the ownership of the financial asset, it continues recognizing the financial asset. Where the Company
does not transfer or retain substantially all of the risks and rewards related to the ownership of a financial asset,
it is dealt with according to the circumstances as follows respectively: (1) if the Company does not retain its
control over the financial asset, it derecognizes the financial asset, and any right or liability arising from such
transfer is recognized independently as an asset or a liability; (2) if the Company retains its control over the
financial asset, according to the extent of its continuing involvement in the transferred financial asset, it
recognizes the related financial asset and recognizes the relevant liability accordingly.
If the transfer of an entire financial asset satisfies the conditions for derecognition, the difference between the
amounts of the following two items are included in profit or loss: (1) the carrying amount of the transferred
financial asset as of the date of derecognition; (2) the sum of consideration received from the transfer of the
financial asset, and the accumulative amount of the changes of the fair value originally included in other
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
comprehensive income proportionate to the transferred financial asset (financial assets transferred refer to debt
instrument investments at fair value through other comprehensive income). If the transfer of financial asset
partially satisfies the conditions to derecognition, the entire carrying amount of the transferred financial asset is,
between the portion which is derecognized and the portion which is not, apportioned according to their
respective relative fair value, and the difference between the amounts of the following two items are included
into profit or loss: (1) the carrying amount of the portion which is derecognized; (2) the sum of consideration
of the portion which is derecognized, and the portion of the accumulative amount of the changes in the fair
value originally included in other comprehensive income which is corresponding to the portion which is
derecognized (financial assets transferred refer to debt instrument investments at fair value through other
comprehensive income).
4. Fair value determination method of financial assets and liabilities
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value. The inputs to valuation techniques used to measure fair value are arranged in the following hierarchy and
used accordingly:
(1) Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company can access at
the measurement date.
(2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for
identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the
asset or liability, for example, interest rates and yield curves observable at commonly quoted intervals; market-corroborated
inputs;
(3) Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs include interest rate that is not observable and
cannot be corroborated by observable market data at commonly quoted intervals, historical volatility, future cash flows to be paid
to fulfill the disposal obligation assumed in business combination, and financial forecast developed using the Company’s own
data, etc.
5. Impairment of financial instruments
(1) Measurement and accounting treatment
The Company, on the basis of expected credit loss, recognizes loss allowances of financial assets at amortized cost, debt
instrument investments, contract assets or leases receivable at fair value through other comprehensive income, loan commitments
other than financial liabilities at fair value through profit or loss, financial guarantee contracts not belong to financial liabilities at
fair value through profit or loss or financial liabilities that arise when a transfer of a financial asset does not qualify for
derecognition or when the continuing involvement approach applies.
Expected credit losses refer to the weighted average of credit losses with the respective risks of a default occurring as the weights.
Credit loss refers to the difference between all contractual cash flows that are due to the Company in accordance with the contract
and all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the original effective interest
rate. Among which, purchased or originated credit-impaired financial assets are discounted at the credit-adjusted effective interest
rate.
At the balance sheet date, the Company shall only recognize the cumulative changes in the lifetime expected credit losses since
initial recognition as a loss allowance for purchased or originated credit-impaired financial assets.
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
For accounts receivable and contract assets that do not contain a significant financing component or financing components in
contracts with associated period less than one year that are not considered by the Company, which result from transactions as
regulated in “CASBE 14 – Revenues”, the Company chooses simplified approach to measure the loss allowance at an amount
equal to lifetime expected credit losses.
For lease receivables, accounts receivable and contract assets that result from transactions as regulated in “CASBE 14 –
Revenues” and contain a significant financing component, the Company chooses simplified approach to measure the loss
allowance at an amount equal to lifetime expected credit losses.
For financial assets other than the above, on each balance sheet date, the Company shall assess whether the credit risk on the
financial instrument has increased significantly since initial recognition. The Company shall measure the loss allowance for the
financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has
increased significantly since initial recognition; otherwise, the Company shall measure the loss allowance for that financial
instrument at an amount equal to 12-month expected credit loss.
Considering reasonable and supportable forward-looking information, the Company compares the risk of a default occurring on
the financial instrument as at the balance sheet date with the risk of a default occurring on the financial instrument as at the date
of initial recognition, so as to assess whether the credit risk on the financial instrument has increased significantly since initial
recognition.
The Company may assume that the credit risk on a financial instrument has not increased significantly since initial recognition if
the financial instrument is determined to have relatively low credit risk at the balance sheet date.
The Company shall estimate expected credit risk and measure expected credit losses on an individual or a collective basis. When
the Company adopts the collective basis, financial instruments are grouped with similar credit risk features.
The Company shall remeasure expected credit loss on each balance sheet date, and increased or reversed amounts of loss
allowance arising therefrom shall be included into profit or loss as impairment losses or gains. For a financial asset measured at
amortized cost, the loss allowance reduces the carrying amount of such financial asset presented in the balance sheet; for a debt
investment measured at fair value through other comprehensive income, the loss allowance shall be recognized in other
comprehensive income and shall not reduce the carrying amount of such financial asset.
(2) Financial instruments with expected credit risk assessed and expected credit losses measured on a collective basis
Items Basis for determination of Method for measuring expected
portfolio credit loss
Other receivables – Portfolio grouped with Based on historical credit loss
consolidated related parties experience, the current situation
Other receivables – Portfolio grouped with and the forecast of future
deposit receivables Nature of receivables economic conditions, calculate
expected credit loss through
Other receivables – Portfolio grouped with
exposure at default and 12-month
export tax rebate
or lifetime expected credit loss
Other receivables – Other portfolio rate.
(3) Accounts receivable and contract assets with expected credit losses measured on a collective basis
1) Specific portfolios and method for measuring expected credit loss
Items Basis for determination of Method for measuring expected credit loss
portfolio
Bank acceptance receivable Based on historical credit loss experience,
Type of notes the current situation and the forecast of
Trade acceptance receivable future economic conditions, calculate
expected credit loss through exposure at
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Items Basis for determination of Method for measuring expected credit loss
portfolio
default and lifetime expected credit loss
rate.
Based on historical credit loss experience,
Accounts receivable –Portfolio the current situation and the forecast of
future economic conditions, prepare the
grouped with consolidated related Consolidated related parties comparison table of overdue ages and
parties lifetime expected credit loss rate of accounts
receivable, so as to calculate expected credit
loss.
Based on historical credit loss experience,
the current situation and the forecast of
Accounts receivable – Portfolio
Aging future economic conditions, calculate
Aging expected credit loss through aging of
receivables and lifetime expected credit loss
rate.
2) Accounts receivable – comparison table of ages and lifetime expected credit loss rate of portfolio grouped with ages
Ages Expected credit loss rate (%)
Within 1 year (inclusive, the same hereinafter) 1.00
1-2 years 5.00
2-3 years 10.00
3-4 years 30.00
4-5 years 50.00
Over 5 years 100.00
6. Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not offset. However, the Company
offsets a financial asset and a financial liability and presents the net amount in the balance sheet when, and only when, the
Company: (a) currently has a legally enforceable right to set off the recognized amounts; and (b) intends either to settle on a net
basis, or to realize the asset and settle the liability simultaneously.
For a transfer of a financial asset that does not qualify for derecognition, the Company does not offset the transferred asset and
the associated liability.
(XI) Inventories
1. Classification of inventories
Inventories include finished goods or goods held for sale in the ordinary course of business, work in process in the process of
production, and materials or supplies etc. to be consumed in the production process or in the rendering of services.
2. Accounting method for dispatching inventories:
Inventories dispatched from storage are accounted for with weighted average method.
3. Basis for determining net realizable value
At the balance sheet date, inventories are measured at the lower of cost and net realizable value; provisions for inventory
write-down are made on the excess of its cost over the net realizable value. The net realizable value of inventories held for sale is
determined based on the amount of the estimated selling price less the estimated selling expenses and relevant taxes and
surcharges in the ordinary course of business; the net realizable value of materials to be processed is determined based on the
amount of the estimated selling price less the estimated costs of completion, selling expenses and relevant taxes and surcharges in
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the ordinary course of business; at the balance sheet date, when only part of the same item of inventories have agreed price, their
net realizable value is determined separately and is compared with their costs to set the provision for inventory write-down to be
made or reversed.
4. Inventory system
Perpetual inventory method is adopted.
5. Amortization method of low-value consumables and packages
(1) Low-value consumables
Low-value consumables are amortized with one-off method.
(2) Packages
Packages are amortized with one-off method.
(XII) Contract costs
Assets related to contract costs including costs of obtaining a contract and costs to fulfil a contract.
The Company recognizes as an asset the incremental costs of obtaining a contract if those costs are expected to be recovered.
If the costs incurred in fulfilling a contract are not within the scope of standards related to inventories, fixed assets or intangible
assets, etc., the Company shall recognize the costs to fulfil a contract as an asset if all the following criteria are satisfied:
1. The costs relate directly to a contract or to an anticipated contract, including direct labor, direct materials, manufacturing
overhead cost (or similar cost), cost that are explicitly chargeable to the customer under the contract, and other costs that are only
related to the contract;
2. The costs enhance resources of the Company that will be used in satisfying performance obligations in the future; and
3. The costs are expected to be recovered.
An asset related to contract costs shall be amortized on a systematic basis that is consistent with related goods or services, with
amortization included into profit or loss.
The Company shall make provision for impairment and recognize an impairment loss to the extent that the carrying amount of an
asset related to contract costs exceeds the remaining amount of consideration that the Company expects to receive in exchange
for the goods or services to which the asset relates less the costs expected to be incurred. The Company shall recognize a reversal
of an impairment loss previously recognized in profit or loss when the impairment conditions no longer exist or have improved.
The carrying amount of the asset after the reversal shall not exceed the amount that would have been determined on the reversal
date if no provision for impairment had been made previously.
(XIII) Non-current assets or disposal groups classified as held for sale
1. Classification of non-current assets or disposal groups as held for sale
Non-current assets or disposal groups are accounted for as held for sale when the following conditions are all met: a. the asset
must be available for immediate sale in its present condition subject to terms that are usual and customary for sales of such assets
or disposal groups; b. its sales must be highly probable, i.e., the Company has made a decision on the sale plan and has obtained a
firm purchase commitment, and the sale is expected to be completed within one year.
When the Company acquires a non-current asset or disposal group with a view to resale, it shall classify the non-current asset or
disposal group as held for sale at the acquisition date only if the requirement of “expected to be completed within one year” is
met at that date and it is highly probable that other criteria for held for sale will be met within a short period (usually within three
months).
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An asset or a disposal group is still accounted for as held for sale when the Company remains committed to its plan to sell the
asset or disposal group in the circumstance that non-related party transactions fail to be completed within one year due to one of
the following reasons: a. a buyer or others unexpectedly set conditions that will extend the sale period, while the Company has
taken timely actions to respond to the conditions and expects a favorable resolution of the delaying factors within one year since
the setting; (2) a non-current asset or disposal group classified as held for sale fails to be sold within one year due to rare cases,
and the Company has taken action necessary to respond to the circumstances during the initial one-year period and the criteria for
held for sale are met.
2. Measurement of non-current assets or disposal groups as held for sale
(1) Initial measurement and subsequent measurement
For initial measurement and subsequent measurement as at the balance sheet date of a non-current asset or disposal group as held
for sale, where the carrying amount is higher than the fair value less costs to sell, the carrying amount is written down to the fair
value less costs to sell, and the write-down is recognized in profit or loss as assets impairment loss, meanwhile, provision for
impairment of assets as held for sale shall be made.
For a non-current asset or disposal group classified as held for sale at the acquisition date, the asset or disposal group is measured
on initial recognition at the lower of its initial measurement amount had it not been so classified and fair value less costs to sell.
Apart from the non-current asset or disposal group acquired through business combination, the difference arising from the initial
recognition of a non-current asset or disposal group at the fair value less costs to sell shall be included into profit or loss.
The assets impairment loss recognized for a disposal group as held for sale shall reduce the carrying amount of goodwill in the
disposal group first, and then reduce its carrying amount based on the proportion of each non-current asset’s carrying amount in
the disposal group.
No provision for depreciation or amortization shall be made on non-current assets as held for sale or non-current assets in
disposal groups as held for sale, while interest and other expenses attributable to the liabilities of a disposal group as held for sale
shall continue to be recognized.
(2) Reversal of assets impairment loss
When there is a subsequent increase in fair value less costs to sell of a non-current asset as held for sale at the balance sheet date,
the write-down shall be recovered, and shall be reversed not in excess of the impairment loss that has been recognized after the
non-current asset was classified as held for sale. The reversal shall be included into profit or loss. Assets impairment loss that has
been recognized before the classification is not reversed.
When there is a subsequent increase in fair value less costs to sell of a disposal group as held for sale at the balance sheet date,
the write-down shall be recovered, and shall be reversed not in excess of the non-current assets impairment loss that has been
recognized after the disposal group was classified as held for sale. The reversal shall be included into profit or loss. The reduced
carrying amount of goodwill and non-current assets impairment loss that has been recognized before the classification is not
reversed.
For the subsequent reversal of the impairment loss that has been recognized in a disposal group as held for sale, the carrying
amount is increased based on the proportion of carrying amount of each non-current asset (excluding goodwill) in the disposal
group.
(3) Non-current asset or disposal group that is no longer classified as held for sale and derecognized
A non-current asset or disposal group that does not met criteria for held for sale and no longer classified as held for sale, or a
non-current asset that removed from a disposal group as held for sale shall be measured at the lower of: a. its carrying amount
before it was classified as held for sale, adjusted for any depreciation, amortization or impairment that would have been
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
recognized had it not been classified as held for sale; and b. its recoverable amount.
When a non-current asset or disposal group classified as held for sale is derecognized, unrecognized gains or losses shall be
included into profit or loss.
(XIV) Long-term equity investments
1. Judgment of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the
relevant activities require the unanimous consent of the parties sharing control. Significant influence is the power to participate in
the financial and operating policy decisions of the investee but is not control or joint control of these policies.
2. Determination of investment cost
(1) For business combination under common control, if the consideration of the combining party is that it makes payment in cash,
transfers non-cash assets, assumes its liabilities or issues equity securities, on the date of combination, it regards the share of the
carrying amount of the equity of the combined party included in the consolidated financial statements of the ultimate controlling
party as the initial cost of the investment. The difference between the initial cost of the long-term equity investments and the
carrying amount of the combination consideration paid or the par value of shares issued offsets capital reserve; if the balance of
capital reserve is insufficient to offset, any excess is adjusted to retained earnings.
When long-term equity investments are obtained through business combination under common control achieved in stages, the
Company determines whether it is a “bundled transaction”. If it is a “bundled transaction”, stages as a whole are considered as
one transaction in accounting treatment. If it is not a “bundled transaction”, on the date of combination, investment cost is
initially recognized at the share of the carrying amount of net assets of the combined party included the consolidated financial
statements of the ultimate controlling party. The difference between the initial investment cost of long-term equity investments at
the acquisition date and the carrying amount of the previously held long-term equity investments plus the carrying amount of the
consideration paid for the newly acquired equity is adjusted to capital reserve; if the balance of capital reserve is insufficient to
offset, any excess is adjusted to retained earnings.
(2) For business combination not under common control, investment cost is initially recognized at the acquisition-date fair value
of considerations paid.
When long-term equity investments are obtained through business combination not under common control achieved in stages, the
Company determined whether they are stand-alone financial statements or consolidated financial statements in accounting
treatment:
1) In the case of stand-alone financial statements, investment cost is initially recognized at the carrying amount of the previously
held long-term equity investments plus the carrying amount of the consideration paid for the newly acquired equity.
2) In the case of consolidated financial statements, the Company determines whether it is a “bundled transaction”. If it is a
“bundled transaction”, stages as a whole are considered as one transaction in accounting treatment. If it is not a “bundled
transaction”, the carrying amount of the acquirer’s previously held equity interest in the acquiree is remeasured at the
acquisition-date fair value, and the difference between the fair value and the carrying amount is recognized in investment income;
when the acquirer’s previously held equity interest in the acquiree involves other comprehensive income under equity method,
the related other comprehensive income is reclassified as income for the acquisition period, excluding other comprehensive
income arising from changes in net liabilities or assets from remeasurement of defined benefit plan of the acquiree.
(3) Long-term equity investments obtained through ways other than business combination: the initial cost of a long-term equity
investment obtained by making payment in cash is the purchase cost which is actually paid; that obtained on the basis of issuing
equity securities is the fair value of the equity securities issued; that obtained through debt restructuring is determined according
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
to “CASBE 12 – Debt Restructuring”; and that obtained through non-cash assets exchange is determined according to “CASBE 7
– Non-cash Assets Exchange”.
3. 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.
4. Disposal of a subsidiary in stages resulting in the Company’s loss of control
(1) Stand-alone financial statements
The difference between the carrying amount of the disposed equity and the consideration obtained thereof is recognized in profit
or loss. If the disposal does not result in the Company’s loss of significant influence or joint control, the remained equity is
accounted for with equity method; however, if the disposal results in the Company’s loss of control, joint control, or significant
influence, the remained equity is accounted for according to “CASBE 22 – Financial Instruments: Recognition and
Measurement”.
(2) Consolidated financial statements
1) Disposal of a subsidiary in stages not qualified as “bundled transaction” resulting in the Company’s loss of control
Before the Company’s loss of control, the difference between the disposal consideration and the proportionate share of net assets
in the disposed subsidiary from acquisition date or combination date to the disposal date is adjusted to capital reserve (capital
premium), if the balance of capital reserve is insufficient to offset, any excess is adjusted to retained earnings.
When the Company loses control, the remained equity is remeasured at the loss-of-control-date fair value. The aggregated value
of disposal consideration and the fair value of the remained equity, less the share of net assets in the disposed subsidiary held
before the disposal from the acquisition date or combination date to the disposal date is recognized in investment income in the
period when the Company loses control over such subsidiary, and meanwhile goodwill is offset correspondingly. Other
comprehensive income related to equity investments in former subsidiary is reclassified as investment income upon the
Company’s loss of control.
2) Disposal of a subsidiary in stages qualified as “bundled transaction” resulting in the Company’s loss of control
In case of “bundled transaction”, stages as a whole are considered as one transaction resulting in loss of control in accounting
treatment. However, before the Company loses control, the difference between the disposal consideration at each stage and the
proportionate share of net assets in the disposed subsidiary is recognized as other comprehensive income at the consolidated
financial statements and reclassified as profit or loss in the period when the Company loses control over such subsidiary.
(XV) Investment property
1. Investment property includes land use right of leased-out property and of property held for capital appreciation and buildings
that have been leased out.
2. The initial measurement of investment property is based on its cost, and subsequent measurement is made using the cost model,
the depreciation or amortization method is the same as that of fixed assets and 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.
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2. Depreciation method of different categories of fixed assets
Estimated residual Annual
Categories Useful life
Depreciation method value proportion depreciation
(years)
(%) rate (%)
Buildings and structures Straight-line method 15-35 3.00 2.77-6.47
Machinery Straight-line method 10-15 3.00 6.47-9.70
Transport facilities Straight-line method 6-8 3.00 12.13-16.17
Electronic equipment Straight-line method 4-11 3.00 8.82-24.25
Other equipment Straight-line method 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) Intangible assets
1. Intangible assets include land use right, patent right and non-patented technology etc. The initial measurement of intangible
assets is based on its cost.
2. For intangible assets with finite useful lives, their amortization amounts are amortized within their useful lives systematically
and reasonably, if it is unable to determine the expected realization pattern reliably, intangible assets are amortized by the
straight-line method with details as follows:
Items Amortization period (years)
Software 3-10
patent right and non-patented
5-10
technology
land use right 40-50
3. Expenditures on the research phase of an internal project are recognized as profit or loss when they are incurred. An intangible
asset arising from the development phase of an internal project is recognized if the Company can demonstrate all of the
followings: (1) the technical feasibility of completing the intangible asset so that it will be available for use or sale; (2) its
intention to complete the intangible asset and use or sell it; (3) how the intangible asset will generate probable future economic
benefits, among other things, the Company can demonstrate the existence of a market for the output of the intangible asset or the
intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset; (4) the availability of adequate
technical, financial and other resources to complete the development and to use or sell the intangible asset; and (5) its ability to
measure reliably the expenditure attributable to the intangible asset during its development.
(XIX) Impairment of part of long-term assets
For long-term assets such as long-term equity investments, investment property at cost model, fixed assets,
construction in progress, productive biological assets at cost model, oil and gas assets, right-of-use assets,
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
intangible assets with finite useful lives, etc., if at the balance sheet date there is indication of impairment, the
recoverable amount is to be estimated. For goodwill recognized in business combination and intangible assets
with indefinite useful lives, no matter whether there is indication of impairment, impairment test is performed
annually. Impairment test on goodwill is performed on related asset group or asset group portfolio.
When the recoverable amount of such long-term assets is lower than their carrying amount, the difference is recognized as
provision for assets impairment through profit or loss.
(XX) 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.
(XXI) Employee benefits
1.Employee benefits include short-term employee benefits, post-employment benefits, termination benefits and other long-term
employee benefits.
2. Short-term employee benefits
The Company recognizes, in the accounting period in which an employee provides service, short-term employee benefits actually
incurred as liabilities, with a corresponding charge to profit or loss or the cost of a relevant asset.
3. Post-employment benefits
The Company classifies post-employment benefit plans as either defined contribution plans or defined benefit plans.
(1) The Company recognizes in the accounting period in which an employee provides service the contribution payable to a
defined contribution plan as a liability, with a corresponding charge to profit or loss or the cost of a relevant asset.
(2) Accounting treatment by the Company for defined benefit plan usually involves the following steps:
1) In accordance with the projected unit credit method, using unbiased and mutually compatible actuarial assumptions to estimate
related demographic variables and financial variables, measure the obligations under the defined benefit plan, and determine the
periods to which the obligations are attributed. Meanwhile, the Company discounts obligations under the defined benefit plan to
determine the present value of the defined benefit plan obligations and the current service cost;
2) When a defined benefit plan has assets, the Company recognizes the deficit or surplus by deducting the fair value of defined
benefit plan assets from the present value of the defined benefit plan obligation as a net defined benefit plan liability or net
defined benefit plan asset. When a defined benefit plan has a surplus, the Company measures the net defined benefit plan asset at
the lower of the surplus in the defined benefit plan and the asset ceiling;
3) At the end of the period, the Company recognizes the following components of employee benefits cost arising from defined
benefit plan: a. service cost; b. net interest on the net defined benefit plan liability (asset); and c. changes as a result of
remeasurement of the net defined benefit liability (asset). Item a and item b are recognized in profit or loss or the cost of a
relevant asset. Item c is recognized in other comprehensive income and is not to be reclassified subsequently to profit or loss.
However, the Company may transfer those amounts recognized in other comprehensive income within equity.
4. 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
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
recognizes cost or expenses related to a restructuring that involves the payment of termination benefits.
5. Other long-term employee benefits
When other long-term employee benefits provided to the employees satisfied the conditions for classifying as a defined
contribution plan, those benefits are accounted for in accordance with the requirements relating to defined contribution plan,
while other benefits are accounted for in accordance with the requirements relating to defined benefit plan. The Company
recognizes the cost of employee benefits arising from other long-term employee benefits as the followings: a. service cost; b. net
interest on the net liability or net assets of other long-term employee benefits; and c. changes as a result of remeasurement of the
net liability or net assets of other long-term employee benefits. As a practical expedient, the net total of the aforesaid amounts is
recognized in profit or loss or included in the cost of a relevant asset.
(XXII) Provisions
1. Provisions are recognized when fulfilling the present obligations arising from contingencies such as
providing guarantee for other parties, litigation, products quality guarantee, onerous contract, etc., may cause
the outflow of the economic benefit and such obligations can be reliably measured.
2. The initial measurement of provisions is based on the best estimated expenditures required in fulfilling the
present obligations, and its carrying amount is reviewed at the balance sheet date.
(XXIII) Revenue
1. Revenue recognition principles
At contract inception, the Company shall assess the contracts and shall identify each performance obligation in
the contracts, and determine whether the performance obligation should be satisfied over time or at a point in
time.
The Company satisfies a performance obligation over time if one of the following criteria is met, otherwise,
the performance obligation is satisfied at a point in time: (1) the customer simultaneously receives and
consumes the economic benefits provided by the Company’s performance as the Company performs; (2) the
customer can control goods as they are created by the Company’s performance; (3) goods created during the
Company’s performance have irreplaceable uses and the Company has an enforceable right to receive the
payments for performance completed to date during the whole contract period.
For each performance obligation satisfied over time, the Company shall recognize revenue over time by
measuring the progress towards complete satisfaction of that performance obligation. In the circumstance that
the progress cannot be measured reasonably, but the costs incurred in satisfying the performance obligation are
expected to be recovered, the Company shall recognize revenue only to the extent of the costs incurred until it
can reasonably measure the progress. For each performance obligation satisfied at a point in time, the
Company shall recognize revenue at the time point that the client obtains control of relevant goods or services.
To determine whether the customer has obtained control of goods, the Company shall consider the following
indications: (1) the Company has a present right to payment for the goods, i.e., the customer is presently
obliged to pay for the goods; (2) the Company has transferred the legal title of the goods to the customer, i.e.,
the customer has legal title to the goods; (3) the Company has transferred physical possession of the goods to
the client, i.e., the customer has physically possessed the goods; (4) the Company has transferred significant
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
risks and rewards of ownership of the goods to the client, i.e., the customer has obtained significant risks and
rewards of ownership of the goods; (5) the customer has accepted the goods; (6) other evidence indicating the
customer has obtained control over the goods.
2. Revenue measurement principle
(1) Revenue is measured at the amount of the transaction price that is allocated to each performance obligation.
The transaction price is the amount of consideration to which the Company expects to be entitled in exchange
for transferring goods or services to a customer, excluding amounts collected on behalf of third parties and
those expected to be refunded to the customer.
(2) If the consideration promised in a contract includes a variable amount, the Company shall confirm the best
estimate of variable consideration at expected value or the most likely amount. However, the transaction price
that includes the amount of variable consideration only to the extent that it is high probable that a significant
reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with
the variable consideration is subsequently resolved.
(3) In the circumstance that the contract contains a significant financing component, the Company shall
determine the transaction price based on the price that a customer would have paid for if the customer had paid
cash for obtaining control over those goods or services. The difference between the transaction price and the
amount of promised consideration is amortized under effective interest method over contractual period. The
effects of a significant financing component shall not be considered if the Company expects, at the contract
inception, that the period between when the customer obtains control over goods or services and when the
customer pays consideration will be one year or less.
(4) For contracts containing two or more performance obligations, the Company shall determine the
stand-alone selling price at contract inception of the distinct good underlying each performance obligation and
allocate the transaction price to each performance obligation on a relative stand-alone selling price basis.
3. Revenue recognition method
The Company’s main product is the Video conference products, integrated wiring products, low voltage
distribution products, private network communication products, wiring products and other products. The
above-mentioned product sales business of the company belongs to the performance obligation performed at a
certain time point, and the revenue is recognized when the customer collects, has collected the price or
obtained the right to collect and the relevant economic benefits are likely to flow in.
(XXIV) Government grants
1. Government grants shall be recognized if, and only if, the following conditions are all met: (1) the Company will comply with
the conditions attaching to the grants; (2) the grants will be received. Monetary government grants are measured at the amount
received or receivable. Non-monetary government grants are measured at fair value, and can be measured at nominal amount in
the circumstance that fair value cannot be assessed.
2. Government grants related to assets
Government grants related to assets are government grants with which the Company constructs or otherwise acquires long-term
79
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
assets under requirements of government. In the circumstances that there is no specific government requirement, the Company
shall determine based on the primary condition to acquire the grants, and government grants related to assets are government
grants whose primary condition is to construct or otherwise acquire long-term assets. They offset carrying amount of relevant
assets, or they are recognized as deferred income. If recognized as deferred income, they are included in profit or loss on a
systematic basis over the useful lives of the relevant assets. Those measured at notional amount are directly included into profit
or loss. For assets sold, transferred, disposed or damaged within the useful lives, balance of unamortized deferred income is
transferred into profit or loss of the period in which the disposal occurred.
3. Government grants related to income
Government grants related to income are government grants other than those related to assets. For government grants that contain
both parts related to assets and parts related to income, in which those two parts are blurred, they are thus collectively classified
as government grants related to income. For government grants related to income used for compensating the related future cost,
expenses or losses, they are recognized as deferred income and included in profit or loss or used to offset relevant cost during the
period in which the relevant cost, expenses or losses are recognized; for government grants related to income used for
compensating the related cost, expenses or losses incurred to the Company, they are directly included in profit or loss or used to
offset relevant cost.
4. Government grants related to the ordinary course of business shall be included into other income or used to
offset relevant cost based on business nature, while those not related to the ordinary course of business shall be
included into non-operating revenue or expenditures.
(XXV) Contract assets, contract liabilities
The Company presents contract assets or contract liabilities in the balance sheet based on the relationship between its
performance obligations and customers’ payments. Contract assets and contract liabilities under the same contract shall offset
each other and be presented on a net basis.
The Company presents an unconditional right to consideration (i.e., only the passage of time is required before the consideration
is due) as a receivable, and presents a right to consideration in exchange for goods that it has transferred to a customer (which is
conditional on something other than the passage of time) as a contract asset.
The Company presents an obligation to transfer goods to a customer for which the Company has received consideration (or the
amount is due) from the customer as a contract liability.
(XXVI) 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.
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
3. At the balance sheet date, the carrying amount of deferred tax assets is reviewed. The carrying amount of a
deferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable income will be
available to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed to
the extent that it becomes probable that sufficient taxable income will be available.
4. The income tax and deferred tax for the period are treated as income tax expenses or income through profit
or loss, excluding those arising from the following circumstances: (a) business combination; and (b) the
transactions or items directly recognized in equity.
(XXVII) Leases
1. Identification of a lease
At inception of a contract, the Company assesses whether the contract is, or contains, a lease. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration. To assess whether a contract conveys the right to control the use of an identified
asset for a period of time, the Company assesses whether, throughout the period of use, the customer has both
of the following: (a) the right to obtain substantially all of the economic benefits from use of the identified
asset; and (b) the right to direct the use of the identified asset.
2. Identification of separate leases
1) Operating leases
When the Company is the lessee, lease payments are recognized as cost or profit or loss with straight-line
method/unit-of-production method over the lease term. Initial expenses are recognized directly into profit or
loss. Contingent rents are charged as profit or loss in the periods in which they are incurred.
When the Company is the lessor, lease income is recognized as profit or loss with straight-line
method/unit-of-production method over the lease term. Initial expenses, other than those with material amount
and eligible for capitalization which are recognized as profit or loss by installments, are recognized directly as
profit or loss. Contingent rents are charged as profit or loss in the periods in which they are incurred.
2) Finance leases
When the Company is the lessee, at the commencement of the lease term, lessees recognize finance leases as
assets and liabilities in their balance sheets at amounts equal to the lower of fair value of the leased property
and the present value of the minimum lease payments, each determined at the inception of the lease, and
recognize the minimum lease payments as the entering value of long-term payable, and treat the difference of
the two as unrecognized finance expense. Any initial direct costs of the lessee are added to the amount
recognized as an asset. The effective interest method is used to recognize finance expense of the period during
the lease term.
When the Company is the lessor, at the commencement of the lease, lessor recognizes the aggregate of
minimum lease receipts and initial direct costs, each determined at the inception of the lease, as the entering
value of finance lease receivables, and recognize the unguaranteed residual value at the same time. The
difference between the aggregate of the minimum lease receipts, the initial direct costs and the unguaranteed
81
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
residual value, and the sum of their present values is recognized as unrealized finance income. The effective
interest method is used to recognize finance income of the period during the lease term.
(XXVIII) Segment reporting
Operating segments are determined based on the structure of the Company’s internal organization, management requirements and
internal reporting system. An operating segment is a component of the Company:
(1) that engages in business activities from which it may earn revenues and incur expenses;
(2) whose financial performance is regularly reviewed by the Management to make decisions about resource to be allocated to
the segment and to assess its performance; and
(3) for which accounting information regarding financial position, financial performance and cash flows is available through
analysis.
(XXIX) Significant changes in accounting policies and estimates
1. Significant changes in accounting policies
(1) The company has adopted the accounting standards for Business Enterprises No. 21 - Lease (hereinafter referred to as the new
lease standards) revised by the Ministry of finance from January 1, 2021.
1) For contracts that existed before January 1, 2021, The company has not assessed whether it is a lease or contains a lease;
2) The company did not follow the retrospective adjustment method to the company as the lessor’s lease.
2. Significant changes in accounting estimates
None.
IV. Taxes
(I) Main taxes and tax rates
Taxes Tax bases Tax rates
Value-added tax (VAT) The taxable revenue from sales of goods or
13%、6%、3%
rendering of services
For housing property levied on the basis of price,
housing property tax is levied at the rate of 1.2% of
Housing property tax the balance after deducting 30% of the cost; for
1.2%、12%
housing property levied on the basis of rent, housing
property tax is levied at the rate of 12% of rent
revenue.
Urban maintenance and Turnover tax payable 7%
construction tax
Education surcharge Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
Enterprise income tax Taxable income 15%、16.5%、25%
Different enterprise income tax rates applicable to different taxpayers:
Taxpayers Income tax rate
The Company 15%
82
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Taxpayers Income tax rate
Nanjing Putian Changle
Telecommunications Equipment Co., 15%
Ltd.
Nanjing Putian Datang Information 15%
Electronic Co., Ltd.
Putian Telecommunications (H.K.) Co., 16.5%
Ltd.
Taxpayers other than the 25%
above-mentioned
(II) Tax preferential policies
The Company obtained high-tech enterprise certificate in December, 2018, valid for 3 years. It is subject to the
enterprise income tax at a rate of 15%
The subsidiary, Nanjing Putian Changle Telecommunications Equipment Co., Ltd., obtained high-tech
enterprise certificate in October, 2018, valid for 3 years. It is subject to the enterprise income tax at a rate of
15%.
The subsidiary, Nanjing Putian Datang Information Electronic Co., Ltd., obtained high-tech enterprise
certificate in November, 2018, valid for 3 years. It is subject to the enterprise income tax at a rate of 15%.
The subsidiaries, Nanjing Putian Datang Information Electronic Co., Ltd. and Nanjing Putian
Telecommunication Technology Co., Ltd., were certified as software enterprises, and some of the software
products produced by Nanjing Southern Telecom Co., Ltd 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
(I) Notes to items of the consolidated balance sheet
1. Cash and bank balances
(1) Details
Items Closing balance Opening balance
Cash on hand 398.89 2,229.39
Cash in bank 73,109,099.81 170,060,517.48
Other cash and bank balances 17,112,087.23 39,786,964.09
Total 90,221,585.93 209,849,710.96
(2) Details of other cash and bank balances
Items Closing balance Opening balance
Bank acceptance deposit 9,747,672.38 29,219,480.00
deposit for L/G 7,364,414.85 10,428,199.34
Others 139,284.75
Total 17,112,087.23 39,786,964.09
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Other cash and bank balances are restricted funds.
2. Notes receivable
(1) Details
1) Details on categories
Closing balance
Book balance Provision for bad
debts
Categories
Provisio Carrying
% to
Amount Amount n amount
total proporti
on (%)
Receivables with provision
for bad debts made on an
individual basis
Including: Bank acceptance
Trade acceptance
Receivables with provision
for bad debts made on a 21,256,734.18 100.00 1,041,371.71 4.90 20,215,362.47
collective basis
Including: Bank acceptance 429,300.00 2.02 429,300.00
Trade acceptance 20,827,434.18 97.98 1,041,371.71 5.00 19,786,062.47
Total 21,256,734.18 100.00 1,041,371.71 4.90 20,215,362.47
(Continued)
Opening balance
Book balance Provision for bad
Categories debts
Provision Carrying amount
Amount % to total Amount proportion
(%)
Receivables with provision for
bad debts made on an individual
basis
Including: Bank acceptance
Trade acceptance
Receivables with provision for
bad debts made on a collective 17,714,790.57 100.00 685,739.53 3.87 17,029,051.04
basis
Including: Bank acceptance 4,000,000.00 22.58 4,000,000.00
Trade acceptance 13,714,790.57 77.42 685,739.53 5.00 13,029,051.04
Total 17,714,790.57 100.00 685,739.53 3.87 17,029,051.04
(2) Changes in provision for bad debts
1) Details
Increase Decrease
Items Opening Closing
balance Accrual Recovery Others Reversal Write-off Others balance
84
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
individual
basis
collective 685,739.53 355,632.18 1,041,371.71
basis
Subtotal 685,739.53 355,632.18 1,041,371.71
(3) Endorsed or discounted but undue notes at the balance sheet date
Items Closing balance derecognized Closing balance not yet derecognized
Bank acceptance 3,001,879.22 31,824,655.94
Trade acceptance 8,555,865.91 19,452,731.28
Subtotal 11,557,745.13 51,277,387.22
Due to the fact that the acceptor of bank acceptance is commercial bank, which is of high credit level, there is very little
possibility of failure in recoverability when it is due. Based on this fact, the Company derecognized the endorsed or discounted
bank acceptance. However, if any bank acceptance is not recoverable when it is due, the Company still holds joint liability on
such acceptance, according to the China Commercial Instrument Law.
3. Accounts receivable
(1) Details
1) Details on categories
Closing balance
Categories Book balance Provision for bad debts
Carrying
Amount % to total Amount Provision amount
proportion (%)
Receivables with provision 59,944,074.91 8.65 59,944,074.91 100.00
made on an individual basis
633,167,867.1 104,084,536.5 529,083,330.6
Receivables with provision 91.35 16.44
made on a collective basis 5 4 1
529,083,330.6
Total 693,111,942.06 100.00 164,028,611.45 23.67
1
(Continued)
Opening balance
Categories Book balance Provision for bad debts
Carrying amount
Amount % to total Amount Provision
proportion (%)
Receivables with provision 59,944,074.91 9.14 59,944,074.91 100.00
made on an individual basis
595,708,348.2 101,715,944.7 493,992,403.4
Receivables with provision 90.86 17.07
made on a collective basis 4 5 9
655,652,423.1 161,660,019.6 493,992,403.4
Total 100.00 24.66
5 6 9
2) Accounts receivable with provision made on an individual basis
Provision
Debtors Book balance Provision for Reasons
proportion
bad debts
(%)
85
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Provision
Debtors Book balance Provision for Reasons
proportion
bad debts
(%)
Dongpo Xi Laos Co., Ltd. 19,708,086.54 19,708,086.54 100.00 Unable to recover
Mr. Xu 17,591,683.74 17,591,683.74 100.00 Unable to recover
China Tower Corporation Ltd. 13,819,926.92 13,819,926.92 100.00 Unable to recover
Nanjing Zhengqian Communication 5,356,181.55 5,356,181.55 100.00 Unable to recover
Technology Co., Ltd
Nanjing Aerte photoelectric Co., Ltd 3,468,196.16 3,468,196.16 100.00 Unable to recover
Subtotal 59,944,074.91 59,944,074.91 100.00
3) Accounts receivable with provision for bad debts made on age analysis
Closing balance
Ages
Book balance Provision for bad debts Provision proportion (%)
Within 1 year 316,210,450.04 3,162,104.49 49.94
1-2 years 105,709,344.20 5,285,467.22 16.7
2-3 years 88,463,431.54 8,846,343.16 13.97
3-4 years 38,568,632.29 11,570,589.69 6.09
4-5 years 17,991,954.20 8,995,977.10 2.84
Over 5 years 66,224,054.88 66,224,054.88 10.46
Subtotal 633,167,867.15 104,084,536.54 16.44
(2) Changes in provision for bad debts
Increase
Items Opening
balance Accrual Recovery Others
Receivables with provision made 59,944,074.91
on an individual basis
Receivables with provision 101,715,944.75 2,426,050.63
made on a collective basis
Subtotal 161,660,019.66 2,426,050.63
(Continued)
Decrease
Items Closing balance
Reversal Write-off Others
Receivables with provision 59,944,074.91
made on an individual basis
Receivables with provision 57,458.84 104,084,536.54
made on a collective basis
Subtotal 57,458.84 164,028,611.45
(3) Details of the top 5 debtors with largest balances
86
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Proportion to the total
Debtors Book balance Provision for bad
balance of accounts
debts
receivable (%)
Dongpo Xi Laos Co., Ltd. 19,708,086.54 2.84 19,708,086.54
Mr. Xu 17,591,683.74 2.54 17,591,683.74
China Tower Corporation Ltd. 13,819,926.92 1.99 13,819,926.92
Shenzhen Yunshi Haitong 16,602,269.00 2.40 713,406.01
Technology Co., Ltd
Beijing RONGTONG Zhiyuan 11,489,579.97 1.66 371,115.48
Technology Co., Ltd
Subtotal 79,211,546.17 11.43 52,204,218.69
4. Receivables financing
(1) Details
1) Details on categories
Closing balance
Items
Interest Interest Changes in Carrying Provision for
Initial cost
adjustment accrued fair value amount impairment
Bank acceptance 13,747,563.72 13,747,563.72
Total 13,747,563.72 13,747,563.72
(Continued)
Opening balance
Items
Interest Interest Changes in Carrying Provision for
Initial cost
adjustment accrued fair value amount impairment
Bank acceptance 32,594,702.60 32,594,702.60
Total 32,594,702.60 32,594,702.60
2) Receivables financing with provision for impairment made on a collective basis
Closing balance
Items
Book balance Provision for Provision proportion
impairment (%)
Bank acceptance 13,747,563.72
portfolio
Subtotal 13,747,563.72
(2) Endorsed or discounted but undue notes at the balance sheet date
Items Closing balance derecognized
Bank acceptance 53,633,327.45
Subtotal 53,633,327.45
Due to the fact that the acceptor of bank acceptance is commercial bank, which is of high credit level, there is very little
possibility of failure in recoverability when it is due. Based on this fact, the Company derecognized the endorsed or discounted
bank acceptance. However, if any bank acceptance is not recoverable when it is due, the Company still holds joint liability on
such acceptance, according to the China Commercial Instrument Law.
87
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
5. Advances paid
(1) Age analysis
1) Details
Closing balance Opening balance
Ages
% to Provision for % to Provision for
Book balance Carrying amount Book balance Carrying amount
total impairment total impairment
Within 1 year 20,881,818.10 79.97 20,881,818.10 12,509,089.32 63.77 12,509,089.32
1-2 years 1,925,702.53 7.37 1,925,702.53 3,743,667.83 19.08 3,743,667.83
2-3 years 1,060,012.10 4.06 1,060,012.10 2,247,435.21 11.46 2,247,435.21
Over 3 years 2,246,378.69 8.60 2,246,378.69 1,116,156.29 5.69 1,116,156.29
100.0 100.0
Total 26,113,911.42 26,113,911.42 19,616,348.65 19,616,348.65
0 0
(2) Details of the top 5 debtors with largest balances
Proportion to the total
Debtors Book balance balance of advances
paid (%)
Jiangsu Shuntian International Group Machinery Import and
7,415,646.87 28.40
Export Co., Ltd
HUAWEI TECHNOLOGIES CO.LTD 6,616,009.13 25.34
Fuzhou Yunfeng Communication Technology Co., Ltd 1,547,169.75 5.92
Liyang Shengli rubber and plastic products Co., Ltd 950,205.36 3.64
Far East Cable Co., Ltd 684,068.05 2.62
Subtotal 17,213,099.16 65.92
6. Other receivables
(1) Details
1) Details on categories
Closing balance
Book balance Provision for bad debts
Categories
Carrying
Provision
Amount % to Amount amount
proportion
total
(%)
Receivables with provision made
28,912,122.71 51.11 28,912,122.71 100.00
on an individual basis
Receivables with provision made
27,654,614.27 48.89 9,531,922.37 34.47 18,122,691.90
on a collective basis
Total 56,566,736.98 100.00 38,444,045.08 67.96 18,122,691.90
(Continued)
Opening balance
Categories
Book balance Provision for bad debts Carrying
88
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Provision amount
Amount % to Amount proportion
total
(%)
Receivables with provision made
28,912,122.71 51.88 28,912,122.71 100.00
on an individual basis
Receivables with provision made
26,817,237.74 48.12 9,905,447.43 36.94 16,911,790.31
on a collective basis
Total 55,729,360.45 100.00 38,817,570.14 69.65 16,911,790.31
2) Other receivables with provision made on an individual basis
Debtors Book balance Provision for bad Provision Reasons for
debts proportion (%) provision made
Beijing Likangpu
Communication 28,912,122.71 28,912,122.71 100.00 Unable to recover
Equipment Co., Ltd.
Subtotal 28,912,122.71 28,912,122.71 100.00
3) Other receivables with provision made on a collective basis
Closing balance
Portfolios
Book balance Provision for bad debts Provision proportion (%)
Portfolio-Financing margin 1,578,947.37
Portfolio-Others 26,075,666.90 9,531,922.37 36.55
Subtotal 27,654,614.27 9,531,922.37 34.47
(2) Age analysis
Ages Closing book balance Opening book balance
Within 1 year 11,015,336.50 6,470,106.41
1-2 years 2,854,624.48 6,515,139.65
2-3 years 5,122,220.31 4,733,535.99
3-4 years 2,446,269.65 3,610,856.13
4-5 years 3,051,927.07 1,448,923.00
Over 5 years 32,076,358.97 32,950,799.27
Subtotal 56,566,736.98 55,729,360.45
(3) Changes in provision for bad debts
1) Details
Phase I Phase II Phase III
Items 12 month Lifetime expected Lifetime expected Subtotal
expected credit losses (credit credit losses (credit
credit losses not impaired) impaired)
Opening balance 806,991.74 38,010,578.40 38,817,570.14
Opening balance in the
current period
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Phase I Phase II Phase III
Items 12 month Lifetime expected Lifetime expected Subtotal
expected credit losses (credit credit losses (credit
credit losses not impaired) impaired)
--Transferred to phase II
--Transferred to phase III -8,784.66 8,784.66
--Reversed to phase II
--Reversed to phase I
Provision made in the
71,282.31 -444,754.72 -373,472.41
current period
Provision recovered in
current period
Provision reversed in
current period
Provision written off in
current period
Retranslation 52.65 52.65
Decrease due to business
combination
Closing balance 869,489.39 37,574,555.69 38,444,045.08
(4) Other receivables categorized by nature
Nature of receivables Closing balance Opening balance
Temporary payment receivable 33,648,852.40 35,152,407.81
Security deposit 15,595,850.55 16,515,511.45
Imprest 1,487,151.73 1,471,813.99
Others 5,834,882.30 2,589,627.20
Total 56,566,736.98 55,729,360.45
(5) Details of the top 5 debtors with largest balances
Proportion to the
Debtors Nature of Ages Provision for
Book balance total balance of other
receivables bad debts
receivables (%)
Beijing Likangpu Temporary Over
Communication payment 28,912,122.71 5 51.11 28,912,122.71
Equipment Co., Ltd. receivable years
China Potevio Company 2-5
Security deposit 1,958,000.00 3.46 1,046,900.00
Limited years
Security deposit
Far East International 1-2
for financial 1,578,947.37 2.79
Leasing Co.,Ltd. years
leasing
China Communications
1-2
import and Export Co., Security deposit 943,855.74 1.67 74,538.41
years
Ltd. Shenzhen Branch
Potevio Information Security deposit 2-3
824,870.77 1.46 41,243.54
Technology Co., Ltd. years
Subtotal 34,217,796.59 60.49 30,074,804.66
7. Inventories
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
(1) Details
Closing balance Opening balance
Items
Provision for Carrying Provision for Carrying
Book balance Book balance
write-down amount write-down amount
Raw materials 38,576,581.23 5,678,761.14 32,897,820.09 32,804,463.00 5,678,761.14 27,125,701.86
Work in process 15,757,432.72 15,757,432.72 13,266,680.85 13,266,680.85
Goods on hand 96,741,785.61 18,772,268.10 77,969,517.51 86,350,107.31 18,772,268.10 67,577,839.21
Goods dispatched 127,140,389.35 29,157,593.24 97,982,796.11 118,443,146.03 29,157,593.24 89,285,552.79
Products on
consignment for 3,067,520.77 804,691.99 2,262,828.78 3,190,889.60 804,691.99 2,386,197.61
sales
Total 281,283,709.68 54,413,314.47 226,870,395.21 254,055,286.79 54,413,314.47 199,641,972.32
(2) Provision for inventory write-down
Increase Decrease
Items Opening
Reversal or Closing balance
balance Accrual Others Others
write-off
Raw materials 5,678,761.14 5,678,761.14
Goods on hand 18,772,268.10 18,772,268.10
Goods dispatched 29,157,593.24 29,157,593.24
Products on
804,691.99 804,691.99
consignment for sales
Subtotal 54,413,314.47 54,413,314.47
8. Other current assets
Items Closing balance Opening balance
Input VAT to be credited 10,919,159.61 11,568,247.65
Prepaid income tax 2,392,776.14 1,557,774.43
Total 13,311,935.75 13,126,022.08
9. Long-term equity investments
(1) Categories
Closing balance Opening balance
Items
Provision for Carrying Provision for Carrying
Book balance Book balance
impairment amount impairment amount
Investments
10,422,055.77 10,422,055.77 10,422,056.96 10,422,056.96
in associates
Investments
in joint
ventures
Total 10,422,055.77 10,422,055.77 10,422,056.96 10,422,056.96
(2) Details
Investees Opening Increase/Decrease
91
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
balance Investment income
Investments Investments Adjustment in other
recognized under
increased decreased comprehensive income
equity method
Joint ventures
SEI-Nanjing
Potevio Optical
10,422,056.96 -1.19
Network Co.,
Ltd.
Total 10,422,056.96 -1.19
(Continued)
Increase/Decrease Closing
Investees balance of
Closing balance
Changes in Cash dividend/Profit Provision for Others provision for
other equity declared for distribution impairment impairment
Joint ventures
SEI-Nanjing
Potevio Optical
10,422,055.77
Network Co.,
Ltd.
Total 10,422,055.77
10. Other equity instrument investments
Accumulated amount of gains
or losses transferred from other
Items Closing Opening Dividend comprehensive income to
balance balance income retained earnings
Amount Reasons
Nanjing Yuhua Electroplating Factory 420,915.00 420,915.00
Hangzhou Honyar Electrical Co.,Ltd. 321,038.00 321,038.00
Beijing Likangpu Communication
Equipment Co., Ltd.
Subtotal 741,953.00 741,953.00
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) Details
Items Buildings and structures Land use right Total
Cost
Opening balance 12,256,127.93 12,256,127.93
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Items Buildings and structures Land use right Total
Increase
1) Acquisition
Decrease
1) Disposal
Closing balance 12,256,127.93 12,256,127.93
Accumulated depreciation and
amortization
Opening balance 7,989,114.58 7,989,114.58
Increase 190,236.03 190,236.03
1) Accrual or amortization 190,236.03 190,236.03
Decrease
1) Disposal
Closing balance 8,179,350.61 8,179,350.61
Provision for impairment
Opening balance
Increase
1) Accrual
Decrease
1) Disposal
Closing balance
Carrying amount
Closing balance 4,076,777.32 4,076,777.32
Opening balance 4,267,013.35 4,267,013.35
12. Fixed assets
(1) Details
Items Buildings and General Transport Electronic
Other equipment Total
structures equipment facilities equipment
Cost
Opening balance 134,663,363.37 34,132,418.65 7,887,148.60 2,306,674.54 44,828,796.91 223,818,402.07
Increase 309,137.32 1,121,831.25 835,735.70 2,266,704.27
1) Acquisition 309,137.32 386,825.69 835,735.70 1,531,698.71
2) Transferred in from
735,005.56 735,005.56
construction in progress
3) Retranslation
Decrease 1,653,806.74 509,686.37 2,163,493.11
93
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Items Buildings and General Transport Electronic
Other equipment Total
structures equipment facilities equipment
1) Disposal/Scrapping 1,653,806.74 509,564.00 2,163,370.74
2) Business combination
3) Retranslation 122.37
Closing balance 134,663,363.37 32,787,749.23 7,887,148.60 2,912,023.42 45,671,328.61 223,921,613.23
Accumulated depreciation
Opening balance 47,849,478.31 25,017,696.49 7,089,647.48 2,117,483.41 40,860,070.24 122,934,375.93
Increase 2,368,328.69 808,318.03 124,719.72 614,634.58 3,943.40 3,919,944.42
1) Accrual 2,368,328.69 808,318.03 124,719.72 614,634.58 3,943.40 3,919,944.42
2) Retranslation
Decrease 1,593,652.21 122.37 494,277.08 2,088,051.66
1) Disposal/Scrapping 1,593,652.21 494,277.08 2,087,929.29
2) Business combination
3) Retranslation 122.37 122.37
Closing balance 50,217,807.00 24,157,803.11 7,278,926.40 2,729,428.04 40,382,304.14 124,766,268.69
Provision for impairment
Opening balance 539,124.00 11,048.35 175,790.21 725,962.56
Increase
Decrease
Closing balance 539,124.00 11,048.35 175,790.21 725,962.56
Carrying amount
Closing balance 83,906,432.37 8,618,516.27 608,222.20 182,595.38 5,113,615.76 98,429,381.98
Opening balance 86,274,761.06 9,114,722.16 797,501.12 178,142.78 3,792,936.46 100,158,063.58
2) Fixed assets temporarily idle
Items Cost Accumulated Provision for
Carrying amount Remarks
depreciation impairment
General equipment 2,466,884.50 2,265,898.17 11,048.35 189,937.98
Transport facilities 987,277.01 944,682.45 42,594.56
Electronic equipment 433,603.93 413,182.23 20,421.70
Other equipment 1,574,539.55 1,287,852.76 175,408.71 111,278.08
Subtotal 5,462,304.99 4,911,615.61 186,457.06 364,232.32
3) Fixed assets with certificate of titles being unsettled
Items Carrying amount Reasons for unsettlement
Buildings and structures 29,713,873.09 Unable to handle
94
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Items Carrying amount Reasons for unsettlement
Subtotal 29,713,873.09
13. Construction in progress
(1) Details
Closing balance Opening balance
Projects Provision Provision
Carrying for Carrying
Book balance for Book balance
amount impairme amount
impairment
Nanjing Putian nt
Datang Information
Electronics Co.,
22,905,813.91 22,905,813.91 21,300,309.31 21,300,309.31
Ltd. Product
Development
Center
Others 905,604.65 905,604.65 1,154,482.96 1,154,482.96
Total 23,811,418.56 23,811,418.56 22,454,792.27 22,454,792.27
2) Changes in significant projects
Projects Budgets Increase Transferred to Closing balance
Opening balance
fixed assets
Nanjing Putian Datang
Information Electronics
30,000,000.00 21,300,309.31 1,605,504.60 22,905,813.91
Co., Ltd. Product
Development Center
Subtotal 30,000,000.00 21,300,309.31 1,605,504.60 22,905,813.91
(Continued)
Completio Accumulated Amount of
Accumulate n Annual
Projects amount of borrowing cost Fund
d input to percentage capitalization
borrowing cost capitalization in source
budget (%) rate (%)
(%) capitalization current period
Nanjing Putian
Datang Information
Electronics Co., Self-owned
76.35 76.35
Ltd. Product fund
Development
Center
Subtotal 76.35 76.35
14. Intangible assets
(1) Details
Items Land use right Software Total
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Items Land use right Software Total
Cost
Opening balance 26,656,046.83 10,920,157.40 37,576,204.23
Increase
1) Acquisition
2) Internal research and development
Decrease
1) Disposal
Closing balance 26,656,046.83 10,920,157.40 37,576,204.23
Accumulated amortization
Opening balance 6,512,813.57 9,802,271.26 16,315,084.83
Increase 317,144.81 165,624.47 482,769.28
1) Accrual 317,144.81 165,624.47 482,769.28
Decrease
1) Disposal
Closing balance 6,829,958.38 9,967,895.73 16,797,854.11
Carrying amount
Closing balance 19,826,088.45 952,261.67 20,778,350.12
Opening balance 20,143,233.26 1,117,886.14 21,261,119.40
(1) Land use right with certificate of titles being unsettled
Items Carrying amount Reasons for unsettlement
Land use right 4,462,742.89 Unable to handle
Subtotal 4,462,742.89
15. Long-term prepayments
(1) Details
Items Opening balance Increase Amortization Closing balance
Renovation expenditure 5,541,410.81 721,912.42 880,943.69 5,382,379.54
Total 5,541,410.81 721,912.42 880,943.69 5,382,379.54
16. Deferred tax assets and deferred tax liabilities
(1) Details of unrecognized deferred tax assets
Items Closing balance Opening balance
Deductible temporary difference 259,762,732.16 259,762,732.16
96
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Items Closing balance Opening balance
Deductible losses 145,604,016.49 145,604,016.49
Subtotal 405,366,748.65 405,366,748.65
(2) Maturity years of deductible losses of unrecognized deferred tax assets
Maturity years Closing balance Opening balance Remarks
Year 2021 5,554,380.47 5,554,380.47
Year 2022 4,443,610.43 4,443,610.43
Year 2023 18,084,226.36 18,084,226.36
Year 2024 113,996,079.49 113,996,079.49
Year 2025 3,525,719.74 3,525,719.74
Subtotal 145,604,016.49 145,604,016.49
17. Short-term borrowings
(1) Details
Items Closing balance Opening balance
Pledged borrowings 95,000,000.00
Mortgaged borrowings 45,500,000.00 15,000,000.00
Secured borrowings 50,000,000.00
Total 140,500,000.00 65,000,000.00
18. Notes payable
(1) Details
Items Closing balance Opening balance
Bank acceptance 57,636,900.00
Trade acceptance 14,698,110.10 18,498,110.10
Total 14,698,110.10 76,135,010.10
19. Accounts payable
(1) Details
Items Closing balance Opening balance
Procurement of materials 560,915,409.98 603,045,038.32
Project payment 785,740.00 1,720,547.68
Total 561,701,149.98 604,765,586.00
(2) Significant accounts payable with age over one year
Items Closing balance Reasons for unsettlement
97
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Items Closing balance Reasons for unsettlement
SEI-Nanjing Potevio Optical Network Co., Ltd. 18,627,974.96 Not yet settled
POLYCOM communications technology (Beijing) Not yet settled
16,532,270.72
Co.,Ltd.
China Potevio Company Limited 16,314,294.20 Not yet settled
Nanjing Xingping Industrial Co., Ltd 12,368,248.11 Not yet settled
Jiangsu Lecxe TECHNOLOGIES INC. 9,909,302.30 Not yet settled
Subtotal 73,752,090.29
20. Advances received
(1) Details
Items Closing balance Opening balance[Note]
Payment for goods
Total
Note: Please refer to note III (XXVIII) 1 (1) 1) of the financial statements for the difference between the opening balance and the
end of the previous year.
21. Contract liabilities
(1) Details
Items Closing balance Opening balance[Note]
Payment for goods 31,494,936.69 28,518,252.40
Total 31,494,936.69 28,518,252.40
Note: Please refer to note III (XXVIII) 1 (1) 1) of the financial statements for the difference between the opening balance and the
end of the previous year.
22. Employee benefits payable
(1) Details
Items Opening Increase Decrease Closing balance
balance
Short-term employee benefits 17,362,878.28 66,234,062.10 66,597,672.19 16,999,268.19
Post-employment benefits -
10,425,345.26 10,425,345.26
defined contribution plan
Total 17,362,878.28 76,659,407.36 77,023,017.45 16,999,268.19
(2) Details of short-term employee benefits
Items Opening Increase Decrease Closing balance
balance
Wage, bonus, allowance and
4,673,800.25 51,451,348.16 52,499,799.16 3,625,349.25
subsidy
Employee welfare fund 3,216,504.92 3,027,798.02 188,706.90
98
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Items Opening Increase Decrease Closing balance
balance
Social insurance premium 3,953,763.28 3,953,763.28
Including: Medicare premium 3,423,765.38 3,423,765.38
Occupational injuries
246,858.22 246,858.22
premium
Maternity premium 283,139.68 283,139.68
Housing provident fund 3,294,555.74 4,240,384.66 4,240,384.66 3,294,555.74
Trade union fund and employee
9,379,525.76 995,047.82 498,913.81 9,875,659.77
education fund
Compensation for termination of
360,985.00 360,985.00
labor relations
Others 14,996.53 2,016,028.26 2,016,028.26 14,996.53
Subtotal 17,362,878.28 66,234,062.10 66,597,672.19 16,999,268.19
(3) Details of defined contribution plan
Items Opening Increase Decrease Closing balance
balance
Basic endowment insurance
7,796,170.62 7,796,170.62
premium
Unemployment insurance
2,179,474.13 2,179,474.13
premium
Company annuity payment 449,700.51 449,700.51
Subtotal 10,425,345.26 10,425,345.26
23. Taxes and rates payable
Items Closing balance Opening balance
VAT 578,183.08 2,356,409.61
Enterprise income tax 3,869,737.95 5,300,903.29
Individual income tax 1,067,344.52 167,893.85
Urban maintenance and construction tax 309,543.90 336,089.22
Housing property tax 198,649.66 207,909.01
Land use tax 81,754.17 83,316.67
Education surcharge 218,960.27 237,921.18
Other tax 3,030.70 16,805.84
Total 6,327,204.25 8,707,248.67
24. Other payables
(1) Details
Items Closing balance Opening balance
Dividend payable 7,692,213.38 4,044,213.38
99
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Items Closing balance Opening balance
Other payables 48,781,506.51 49,714,907.25
Total 56,473,719.89 53,759,120.63
(2) Dividend payable
Items Closing balance Opening balance
Dividend of ordinary shares 7,692,213.38 4,044,213.38
Subtotal 7,692,213.38 4,044,213.38
(3) Other payables
Items Closing balance Opening balance
Temporary receipts payable 34,267,658.25 25,326,626.30
Unsettled installation cost 231,627.19 6,106,864.43
Deposits 3,945,708.16 6,497,152.88
Operating expenses 9,195,923.30 9,314,827.00
Others 1,140,589.61 2,469,436.64
Subtotal/Total 48,781,506.51 49,714,907.25
25. Non-current liabilities due within one year
Items Closing balance Opening balance
Long-term payables due within one year 7,954,722.25 9,181,720.08
Total 7,954,722.25 9,181,720.08
26. Other current liabilities
Items Closing balance Opening balance[Note]
VAT collected in advance 3,778,589.00 3,707,372.81
Total 3,778,589.00 3,707,372.81
Note: Please refer to note III (XXVIII) 1 (1) 1) of the financial statements for the difference between the opening balance and the
end of the previous year.
27. Long-term payables
Items Closing balance Opening balance
Finance lease 4,036,160.05
Total 4,036,160.05
28. Share capital
Items Opening Movements Closing balance
100
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
balance Issue of Reserve
Bonus Others Subtotal
new transferred
shares
shares to shares
Total shares 215,000,000.00 215,000,000.00
29. Capital reserve
Items Opening balance Increase Decrease Closing balance
Share premium 137,786,640.63 12,717,639.48 150,504,280.11
Other capital reserve 45,782,201.81 45,782,201.81
Total 183,568,842.44 12,717,639.48 196,286,481.92
30. Other comprehensive income (OCI)
Current period cumulative Closing
balance
Items Opening Current period
balance Less: Attributable Attributable to
cumulative
Income to parent non-controllin
before income
tax company g shareholders
tax
Items not to be reclassified
-6,853,931.65 961,946.58 961,946.58 -5,891,985.07
subsequently to profit or loss
Including: Translation reserves -4,999,021.65 961,946.58 961,946.58 -4,037,075.07
Reclassified financial assets to
-1,854,910.00 -1,854,910.00
OCI
Total -6,853,931.65 961,946.58 961,946.58 -5,891,985.07
31. Surplus reserve
Items Opening balance Increase Decrease Closing balance
Statutory surplus reserve 589,559.77 589,559.77
Total 589,559.77 589,559.77
32. Undistributed profit
(1) Details
Items Current period Preceding period
cumulative comparative
Balance before adjustment at the end of preceding period -202,680,309.64 -224,644,862.48
Add: Increase due to adjustment (or less: decrease)
Opening balance after adjustment -202,680,309.64 -224,644,862.48
Add: Net profit attributable to owners of the parent
-29,593,867.19 -58,856,854.03
company
Less: Appropriation of statutory surplus reserve
Dividend payable on ordinary shares
Closing balance -232,274,176.83 -283,501,716.51
101
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
(II) Notes to items of the consolidated income statement
1. Operating revenue/Operating cost
(1) Details
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Main operations 441,387,294.27 348,603,700.69 395,904,248.73 319,716,375.61
Other operations 10,491,316.16 8,830,168.30 9,268,554.89 8,059,616.79
Total 451,878,610.43 357,433,868.99 405,172,803.62 327,775,992.40
(2) Breakdown of revenue by main categories
Video Low voltage
Generic
Reportable segments conference distribution Others Subtotal
products
products products
Revenue recognition time
Goods (transferred at a point in
129,623,277.17 197,510,645.45 41,853,695.33 82,890,992.48 451,878,610.43
time)
Services (rendered over time)
Total 129,623,277.17 197,510,645.45 41,853,695.33 82,890,992.48 451,878,610.43
2. Taxes and surcharges
Items Current period cumulative Preceding period comparative
Urban maintenance and
950,147.23 691,226.63
construction tax
Education surcharge 678,676.61 518,417.63
Housing property tax 632,407.41 665,188.86
Land use tax 253,268.80 281,129.00
Other tax 257,155.97 134,074.81
Total 2,771,656.02 2,290,036.93
3. Selling expenses
Items Current period cumulative Preceding period comparative
Employee benefits 30,657,820.79 29,101,579.10
Business entertainment 7,320,086.73 10,510,611.36
Travelling expenses 3,593,668.46 3,952,465.19
Sales service charges 1,983,529.10 796,994.00
Office expenses 757,905.79 688,695.61
102
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Items Current period cumulative Preceding period comparative
Promotion expenses 645,814.35 190,608.73
Conference expenses 561,693.48 136,838.17
Equipment maintain fees 7,719.09 2,959,544.28
Transport fees 2,617.00 5,078,514.76
Others 3,530,437.79 5,395,541.45
Total 49,061,292.58 58,811,392.65
4. Administrative expenses
Items Current period cumulative Preceding period comparative
Employee benefits 20,500,482.96 17,630,420.81
Depreciation and amortization 3,134,154.50 2,946,226.66
Consulting, intermediary and legal
1,179,882.32 1,751,707.50
fees
Office expenses 1,128,158.97 1,423,803.35
Lease expenses 382,999.62 307,636.94
Business entertainment 712,793.82 597,252.28
Travelling expense 500,872.73 303,727.91
Funding for Party Building 214,223.66 338,709.63
Taxes 18,744.56
Others 1,967,023.84 2,215,127.97
Total 29,720,592.42 27,533,357.61
5. R&D expenses
Items Current period cumulative Preceding period comparative
Employee benefits 24,333,843.32 19,862,124.42
Intermediate test fee 1,431,006.18
Travelling expenses 865,144.33 726,452.26
Depreciation and amortization 605,021.78 709,954.89
Material use 684,146.16 375,658.08
Commissioned development 233,946.41
Others 1,828,329.01 2,092,043.07
Total 29,747,490.78 24,000,179.13
6. Financial expenses
103
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Items Current period cumulative Preceding period comparative
Interest expenditures 2,798,625.53 15,276,918.26
Less: Interest income 410,149.62 2,387,417.73
Losses on foreign exchange -104,172.86 187,604.49
Financial institution fees 281,634.59 502,882.54
Financing fee 1,312,805.26
Others 67,343.85
Total 2,565,937.64 14,960,136.67
7. Other income
Items Current period Preceding period Amount included in
cumulative comparative non-recurring profit or loss
Government grants
1,192,018.97 6,452,807.84 360,145.78
related to income [Note]
Total 1,192,018.97 6,452,807.84 360,145.78
Note: Please refer to section V (IV) 3 of the notes to financial statements for details on government grants included into other
income.
8. Investment income
Current period Preceding period
Items
cumulative comparative
Investment income from long-term equity investments under
-1.19 -137,939.58
equity method
Total -1.19 -137,939.58
9. Credit impairment loss
Items Current period cumulative Preceding period comparative
Bad debt loss of notes receivable -355,632.18 41,793.34
Bad debt loss of accounts receivable -2,426,050.63 -5,126,974.89
Bad debt loss of other receivables 373,472.41 -279,138.80
Total -2,408,210.40 -5,364,320.35
10. Assets impairment loss
Items Current period cumulative Preceding period comparative
Inventory write-down loss -3,298,844.16
Total -3,298,844.16
11. Gains on asset disposal
104
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Amount included in
Items Current period Preceding period
non-recurring profit or
cumulative comparative
loss
Gains on disposal of fixed assets 15,829.32 1,244.51 15,829.32
Total 15,829.32 1,244.51 15,829.32
12. Non-operating revenue
Amount included in
Items Current period Preceding period
non-recurring profit or
cumulative comparative loss
Penalty income 5,000.00 200,000.11 5,000.00
Government grants 191,000.00
Non-current assets damage
35,398.23
and retirement gains
Others 51,934.58 3,342,424.64 51,934.58
Total 56,934.58 3,768,822.98 56,934.58
13. Non-operating expenditures
Amount included in
Items Current period Preceding period
non-recurring profit or
cumulative comparative loss
Donation expenditures 2,000.00 2,000.00 2,000.00
Inventory loss 605,399.62
Others 59,544.99 42,007.95 59,544.99
Total 61,544.99 649,407.57 61,544.99
14. Income tax expenses
(1) Details
Items Current period cumulative Preceding period comparative
Current period income tax
4,521,812.72 2,242,233.92
expenses
Total 4,521,812.72 2,242,233.92
(2) Reconciliation of accounting profit to income tax expenses
Items Current period Preceding period
cumulative comparative
Profit before tax -20,627,201.71 -49,425,928.10
Income tax expenses based on tax rate applicable
-3,094,080.26 -7,413,889.22
to the parent company
Effect of different tax rate applicable to
1,662,899.51 766,325.77
subsidiaries
Effect of prior income tax reconciliation 415,195.75 -20,690.94
Effect of non-deductible costs, expenses and
1,597,637.39 8,932,260.09
losses
105
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Items Current period Preceding period
cumulative comparative
Utilization of deductible losses not previously
-4,299.40 -308,388.14
recognized as deferred tax assets
Effect of deducible temporary differences or
deductible losses not recognized as deferred tax 110,437.79
assets
Effect of deducible temporary differences or
5,874,821.15 726,243.45
deductible losses not recognized
Deduction of R&D expenditures -2,040,799.21 -439,627.09
Income tax expenses 4,521,812.72 2,242,233.92
(III) Notes to items of the consolidated cash flow statement
1. Other cash receipts related to operating activities
Items Current period cumulative Preceding period comparative
Government grants 1,192,018.97 5,337,831.84
Interest income 410,149.62 2,387,417.73
Intercourse 11,932,139.16 17,451,277.42
Others 934,135.53 1,232,321.53
Total 14,468,443.28 26,408,848.52
2. Other cash payments related to operating activities
Items Current period cumulative Preceding period comparative
Selling and Administrative
33,193,862.80 22,717,102.16
expenses paid in cash
Intercourse 26,882,349.43 15,824,530.64
Others 462,741.40 990,535.25
Total 60,538,953.63 39,532,168.05
3. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Supplement information Current period Preceding period
cumulative comparative
(1) Reconciliation of net profit to cash flow from operating
activities:
Net profit -25,149,014.43 -51,668,162.02
Add: Provision for assets impairment loss 3,298,844.16
Provision for credit impairment loss 2,408,210.40 5,364,320.35
Depreciation of fixed assets, oil and gas assets,
3,919,944.42 4,403,776.33
productive biological assets
Amortization of intangible assets 482,769.28 666,658.48
106
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Supplement information Current period Preceding period
cumulative comparative
Amortization of long-term prepayments 880,943.69 835,343.74
Loss on disposal of fixed assets, intangible assets and
-15,829.32 -1,244.51
other long-term assets (Less: gains)
Fixed assets retirement loss (Less: gains) -35,398.23
Losses on changes in fair value (Less: gains)
Financial expenses (Less: gains) 2,798,625.53 16,589,723.52
Investment losses (Less: gains) 1.19 137,939.58
Decrease of deferred tax assets (Less: increase)
Increase of deferred tax liabilities (Less: decrease)
Decrease of inventories (Less: increase) 27,228,422.89 -28,013,240.51
Decrease of operating receivables (Less: increase) -106,583,908.66 120,731,493.58
Increase of operating payables (Less: decrease) -22,692,438.14 -54,657,336.44
Others
Net cash flows from operating activities -116,722,273.15 17,652,718.03
(2) 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
(3) Net changes in cash and cash equivalents:
Cash at the end of the period 73,109,498.70 125,223,538.45
Less: Cash at the beginning of the period 170,062,746.87 208,783,866.60
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 -96,953,248.17 -83,560,328.15
(2) Composition of cash and cash equivalents
Items Closing balance Opening balance
1) Cash 73,109,498.70 170,062,746.87
Including: Cash on hand 398.89 2,229.39
Cash in bank on demand for payment 73,109,099.81 170,060,517.48
2) Cash equivalents
3) Cash and cash equivalents at the end of the period 73,109,498.70 170,062,746.87
(IV) Others
1. Assets with title or use right restrictions
107
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Items Closing carrying amount Reasons for restrictions
Deposit for acceptance and
Cash and bank balances 3,136,966.33
deposit for L/G
Fixed assets 10,133,882.66 Mortgaged borrowings
Intangible assets 3,615,634.97 Mortgaged borrowings
Total 16,886,483.96
(2) Other remarks
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 Southern Telecom Co., Ltd 33.17 million yuan, equity of Nanjing Putian Telege
Intelligent Building Co., Ltd. 4.80 million yuan, equity of Nanjing Putian Changle Telecommunications Equipment Co., Ltd. 5.07
million yuan, equity of Nanjing Putian Network Co., Ltd. 7.80 million yuan. The Company has registered the equity pledge at
Nanjing Jiangning Market Supervision Administration. Those equities are with use restrictions before released.
2. Monetary items in foreign currencies
Items Closing balance in Exchange rate RMB equivalent at the
foreign currencies end of the period
Cash and bank balances -- -- --
Including: USD 9,653.15 6.4601 62,360.31
EUR 4979.83 7.6862 38,275.97
GBP 2205.47 8.941 19,719.11
HKD 461,146.61 0.83208 383,710.87
3. Government grants
1) Government grants related to income and used to compensate incurred relevant costs, expenses or losses
Items Amounts Presented under Remarks
VAT refund 831,873.19 Other income Cai Shui [2011] No.100
Other income Nanjing social insurance management
Staff training subsidies 244,700.00
center
Subsidies for up-to-standard Nanjing Jiangning Economic
enterprises in the construction of dual 3,100.00 Other income Development Zone Management
prevention mechanisms Committee
Others 112,345.78 Other income
Subtotal 1,192,018.97
The amount of government subsidies included in the current profits and losses is 1,192,018.97yuan.
VI. Changes in the consolidation scope
The scope of the consolidated financial statements for the current period has not changed.
108
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
VII. Interest in other entities
(I) Interest in subsidiaries
1. Composition of subsidiaries
(1) Basis information
Main Holding
Subsidiaries Place of Business proportion (%) Acquisition
operating
registration nature Direct Indirect method
place
Nanjing Putian Changle
Nanjing Nanjing Manufacture 50.70
Telecommunications Set up
City City
Equipment Co., Ltd.
Nanjing Putian Telege Nanjing Nanjing Manufacture 45.77 Set up
Intelligent Building Ltd. City City
Nanjing Southern Nanjing Nanjing Manufacture 96.99 3.01 Set up
Telecom Co., Ltd City City
not under
Nanjing Nanman Nanjing Nanjing Manufacture 100.00 the same
Electrics Co., Ltd. City City
control
Nanjing Putian Nanjing Nanjing Manufacture 78.00 Set up
Network Co., Ltd. City City
Nanjing Putian Datang not under
Nanjing Nanjing Manufacture 40.00
Information Electronic the same
City City
Co., Ltd. control
Nanjing Putian
Nanjing Nanjing Manufacture 70.00
Communication Set up
City City
Technology Co., Ltd.
Putian Communications Hong Hong Trading 100.00 Set up
(Hong Kong) Co., Ltd. Kong Kong
Chongqing Puhua
Chongqi Chongqin Manufacture 100.00
Information Set up
ng City g City
Technology Co., Ltd
(2) Other remarks
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 40% equity of Nanjing Putian Datang Information Electronic Co., Ltd. The Company
signed the agreement with Yan yaoming, a shareholder of Nanjing Putian Datang Information Electronic Co.,
Ltd., to exercise his 21% right to vote. The agreement is valid during the period of the existence of Nanjing
Putian Datang Information Electronic Co., Ltd. The Company has 61% of the voting right during the existence
period of Nanjing Putian Datang Information Electronic Co., Ltd.
2. Significant not wholly-owned subsidiaries
(1) Details
109
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Holding proportion Non-controlling Dividend declared Closing balance of
Subsidiaries of non-controlling shareholders’ profit to non-controlling non-controlling
shareholders or loss shareholders interest
Nanjing Putian
Telege 54.23% 7,377,766.84 10,846,600.00 44,632,434.14
Intelligent
Building Ltd.
3. Main financial information of significant not wholly-owned subsidiaries
(1) Assets and liabilities
Closing balance
Subsidiaries
Current Non-current Total assets Non-current
Current liabilities Total liabilities
assets assets liabilities
Nanjing Putian
Telege Intelligent 221,613,748.50 36,396,797.07 258,010,545.57 175,708,435.77 175,708,435.77
Building Ltd.
(Continued)
Opening balance
Subsidiaries
Current Non-current Total assets Current Non-current
Total liabilities
assets assets liabilities liabilities
Nanjing Putian
Telege Intelligent 222,552,329.22 35,936,096.57 258,488,425.79 169,790,901.71 169,790,901.71
Building Ltd.
(2) Profit or loss and cash flows
Current period cumulative Preceding period comparative
Subsidiaries Total Cash flows from Total Cash flows
Operating Operating
Net profit comprehensive operating Net profit comprehensive from operating
revenue revenue
income activities income activities
Nanjing Putian
Telege 199,671,487.21 13,604,585.72 13,604,585.72 -52,546,951.98 154,721,985.29 10,380,625.48 10,380,625.48 -40,625,738.51
Intelligent
Building Ltd.
(II) Interest in joint venture or associates
1. Aggregated financial information of insignificant joint ventures and associates
Items Closing balance/Current Opening balance/Preceding
period cumulative period comparative
Joint ventures
Total carrying amount of investments 10,422,056.96 10,422,056.96
Proportionate shares in the following
items
Net profit 2.38 140.38
Total comprehensive income 2.38 140.38
Associates
Total carrying amount of investments
Proportionate shares in the following
items
Net profit
Total comprehensive income
110
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
VIII. Risks related to 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 approved policies concerning such risks, and details are:
(I) 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
A financial asset is credit-impaired when one or more following events have occurred:
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;
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. Please refer to note V(I)2(2)；V(I)3(2); V(I)6(3) on the reconciliation table of opening balance and closing balance of provision
111
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
for losses of financial instrument.
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 only conducts business with credible and well-reputed third parties, normally, does not obtain collateral from
customers. Normally, the Group does not obtain collateral from customers. The Company manages credit risk aggregated by
customers. As the company’s accounts receivable risk points are distributed across multiple partners and customers, as of June
30, 2021, 11.43% of the company’s accounts receivable (June 30, 2020: 12.32%) Among the top five customers in the balance,
the company does not have a significant concentration of credit risk.
The maximum amount of exposure to credit risk of the Company is the carrying amount of each financial asset on the balance
sheet.
(II) 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 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 banks to meet working capital
requirements and expenditures.
Financial instruments classified based on remaining time period till maturity
Closing balance
Items
Contract amount 1-3 years Over 3
Carrying amount Within 1 year
not yet discounted years
Bank borrowings 140,500,000.00 140,500,000.00 140,500,000.00
Notes payable 14,698,110.10 14,698,110.10 14,698,110.10
Accounts payable 561,701,149.98 561,701,149.98 561,701,149.98
Other payable 56,473,719.89 56,473,719.89 56,473,719.89
Long-term payable
Subtotal 773,372,979.97 773,372,979.97 773,372,979.97
(Continued)
112
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Opening balance
Items
Contract amount 1-3 years Over 3
Carrying amount Within 1 year
not yet discounted years
Bank borrowings 65,000,000.00 66,950,000.00 66,950,000.00
Notes payable 76,135,010.10 76,135,010.10 76,135,010.10
Accounts payable 604,765,586.00 604,765,586.00 604,765,586.00
Other payable 53,759,120.63 53,759,120.63 53,759,120.63
Long-term payable 13,217,880.13 13,614,416.53 9,457,171.68 4,157,244.85
Subtotal 812,877,596.86 815,224,133.26 811,066,888.41 4,157,244.85
(III) 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.
2. Foreign currency risk
Foreign currency risk is the risk arising from changes in fair value or future cash flows of financial instrument resulted from
changes in exchange rate. The Company’s foreign currency risk relates mainly to foreign currency monetary assets and liabilities.
Please refer to notes to financial statements for details in foreign currency financial assets and liabilities at the end of the period.
IX. Fair value disclosure
(I) Details of fair value of assets and liabilities at fair value at the balance sheet date
Fair value as of the balance sheet date
Items Level 1 fair Level 2 fair Level 3 fair
value value value Total
measurement measurement measurement
Recurring fair value measurement
1. Receivables financing 13,747,563.72 13,747,563.72
2. Other equity instrument 741,953.00 741,953.00
investments
Total assets at recurring fair value 14,489,516.72 14,489,516.72
measurement
(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
113
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
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.
X. Related party relationships and transactions
(I) Related party relationships
1. Parent company
(1) Details
Holding
Parent Voting right
Business proportion
Place of registration Registered capital proportion over
company nature over the
the Company (%)
Company (%)
No.2 Tudi 2 Road,
China Potevio
Zhongguan Village Information
Company 1,903,050,000.00 53.49 53.49
Economy Zone, Haidian industry
Limited
District, Beijing
The Company’s ultimate controlling party is China Putian Corporation.
2. Please refer to section VII of notes to financial statements for details on the Company’s subsidiaries.
3. Joint ventures and associates of the Company
(1) Joint ventures and associates of the Company
Please refer to section VII of notes to financial statements for details on the Company’s significant joint
ventures and associates. Details of other joint ventures or associates carrying out related party transactions with
the Company in current period or in preceding period but with balance in current period are as follows:
Joint ventures or associates Relationships with the Company
SEI-Nanjing Potevio Optical Joint ventures
Network Co., Ltd.
4. Other related parties of the Company
(1) Details
Related parties Relationships with the Company
Nanjing Putian Information Technology An affiliated company of the ultimate
Co., Ltd. controlling party
An affiliated company of the ultimate
Potevio Hi-tech Industry Co., Ltd.
controlling party
Potevio innovation and Entrepreneurship An affiliated company of the ultimate
Management Co., Ltd controlling party
Nanjing Honyar Electrical Technology Co., An affiliated company of the ultimate
Ltd. controlling party
An affiliated company of the ultimate
Nanjing Honyar Electrical Co., Ltd.
controlling party
114
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Related parties Relationships with the Company
Shanghai Potevio Post and An affiliated company of the ultimate
Telecommunications Technology Co., Ltd. controlling party
Beijing Potevio Taili Communications An affiliated company of the ultimate
Technology Co., Ltd. controlling party
Hangzhou Honyar Dongbei Photoelectric An affiliated company of the ultimate
Technology Co., Ltd. controlling party
An affiliated company of the ultimate
POTEVIO Telecommunications Co., Ltd.
controlling party
An affiliated company of the ultimate
Potevio Information Technology Co., Ltd.
controlling party
Beijing Likangpu Communication An affiliated company of the ultimate
Equipment Co., Ltd. controlling party
Mennekes Electric Industrial(China) Co., Minority shareholders of subsidiaries of the
Ltd. company
An affiliated company of the ultimate
Potevio Heping Technology Co., Ltd.
controlling party
An affiliated company of the ultimate
Hangzhou Honyar Electrical Co.,Ltd.
controlling party
An affiliated company of the ultimate
Potevio International Trading Co., Ltd.
controlling party
Chengdu Putian Telecommunications An affiliated company of the ultimate
Cable Co.,Ltd. controlling party
An affiliated company of the ultimate
Eastern Communications Inc.
controlling party
An affiliated company of the ultimate
Potevio Eastern Communications Co.,Ltd.
controlling party
Potevio Science & Technology Industrial An affiliated company of the ultimate
Co., Ltd. controlling party
Tianjin Potevio Innovation and An affiliated company of the ultimate
Entrepreneur Technology Co., Ltd. controlling party
Beijing Potevio Desheng Technology An affiliated company of the ultimate
Incubator Co., Ltd controlling party
An affiliated company of the ultimate
Putian New Energy (Shenzhen) Co., Ltd.
controlling party
An affiliated company of the ultimate
Wuhan Putian New Energy Co., Ltd
controlling party
(II) Related party transactions
1. Purchase and sale of goods, rendering and receiving of services
(1) Details
1) Purchase of goods and receiving of services
Related parties Content of transaction Preceding period
Current period cumulative
comparative
China Potevio Telecommunication
371,681.42
Company Limited products
Nanjing Putian
Procurement of
Hongyan Electrical 175,207.98
goods/labor
Technology Co., Ltd.
115
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Related parties Content of transaction Preceding period
Current period cumulative
comparative
Putian High-tech
Procurement of labor 129,056.58
Industry Co., Ltd.
Potevio Information Telecommunication
68,584.07
Technology Co., Ltd. products
2) Sale of goods and rendering of services
Related parties Content of transaction Current period Preceding period
cumulative comparative
Eastern Communications Co., Telecommunication
1,034,151.45 15,929.21
Ltd. products
Telecommunication
China Potevio Company Limited 384,300.86 573,405.15
products
Putian Eastern Communications Telecommunication
22,641.51
Group Co., Ltd. products
Wuhan Putian New Energy Co., Telecommunication
16,088.49
Ltd. products
Beijing Putian Desheng Telecommunication
1,361,157.59
Technology Incubator Co., Ltd. products
Telecommunication
Putian Communication Co., Ltd. 1,040,734.52
products
Putian Information Technology Telecommunication
303,656.86
Co., Ltd. products
Putian Science and Technology Telecommunication
31,034.48
Industrial Co., Ltd. products
2. Related party leases
(1) Details
1) The Company as the lessee
Lessors Lease expenses for Lease expenses for the
Types of asset leased
current period preceding period
Potevio Hi-tech
Land and buildings 268,423.40 86,037.72
Industry Co., Ltd.
3. Related party guarantees
(1) The Company and its subsidiaries as guaranteed parties
Guarantors Amount Commencement Maturity date Whether the guarantee is
guaranteed date mature
China Potevio 50,000,000.00 2020/10/19 2021/10/19 No
Company Limited
4. Call loans between related parties
Entrusted loans and interest expenses
Current period cumulative Preceding period comparative
with parent company
Entrusted loans 95,000,000.00 297,000,000.00
Entrusted interest expenses 1,286,777.78 8,328,382.78
5. Key management’s emoluments
116
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Items Current period cumulative Preceding period comparative
Key management’s emoluments 1,306,373.00 1,161,814.00
(III) Balance due to or from related parties
1. Balance due from related parties
Closing balance Opening balance
Items Related parties
Book balance Provision for Book balance Provision for
bad debts bad debts
Accounts
receivable
Putian Information
6,256,048.36 426,255.40 6,900,298.36 536,650.66
Technology Co., Ltd.
Putian Communication
4,317,924.00 168,855.00 4,317,924.00 168,855.00
Co., Ltd.
Eastern Communications
448,207.57 22,410.38 20,659.60 206.60
Co., Ltd.
Nanjing Loop Co., Ltd. 207,500.00 2,075.00
Putian Eastern
Communications Group 24,000.00 240.00
Co., Ltd.
Beijing Putian Desheng
Technology Incubator 107,164.50 1,071.65 107,164.50 1,071.65
Co., Ltd.
Tianjin Putian Innovation
and Entrepreneurship 4,546.26 454.63 4,546.26 454.63
Technology Co., Ltd.
China Potevio Company
5,987,268.83 2,948,823.87 5,890,775.42 2,761,564.47
Limited
Shanghai Putian Network
536,319.70 132,831.97 536,319.70 132,831.97
Technology Co., Ltd.
Shanghai Putian Post
8,755,534.00 8,755,534.00 8,755,534.00 8,755,534.00
Technology Co., Ltd.
Subtotal 26,437,013.22 12,456,476.90 26,533,221.84 12,357,168.98
Advances
paid
China Potevio Company
420,000.00
Limited
Subtotal 420,000.00
Other
receivables
China Potevio
2,245,100.00 1,062,255.00 2,245,100.00 1,062,255.00
Information Industry Inc.
Potevio Information
367,800.00 18,390.00 1,203,052.00 60,152.60
Technology Co., Ltd.
Subtotal 2,612,900.00 1,080,645.00 3,448,152.00 1,122,407.60
2. Balance due to related parties
Items Related parties Closing balance Opening balance
Accounts
payable
SEI-Nanjing Potevio Optical Network
20,258,725.66 20,220,725.66
Co., Ltd.
China Potevio Company Limited 18,016,137.43 18,332,258.02
117
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Items Related parties Closing balance Opening balance
Shanghai Potevio Network Technology
11,685.00 11,685.00
Co., Ltd.
Potevio Hi-tech Industry Co., Ltd. 25,000.00 25,000.00
Nanjing Potevio Honyar Electrical
166,421.00 126,806.40
Technology Co., Ltd.
Subtotal 38,477,969.09 38,716,475.08
Advances
received
China Potevio Company Limited 4,690,537.30 4,690,537.30
Potevio Company Limited. 13,239.48 13,239.48
Wuhan Putian New Energy Co., Ltd 12,120.00
Subtotal 4,703,776.78 4,715,896.78
Other
payables
Potevio Hi-tech Industry Co., Ltd. 3,806,518.82 3,588,281.58
Potevio Information Technology Co.,
555,000.00 555,000.00
Ltd.
Potevio Telecommunications Co., Ltd. 200,000.00 200,000.00
Potevio Company Limited. 9,580,000.00 9,580,000.00
Subtotal 14,141,518.82 13,923,281.58
XI. Commitments and contingencies
(I) Significant commitments
None.
(II) Contingencies
None.
XII. Events after the balance sheet date
None.
XIII. Other significant events
(I) Segment information
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 video conferencing products, generic cable products, 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. Financial information of reportable segments
Products segment
118
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Video
Items Generic cable Electrical Wiring products Inter-segment Total
conferencing
products products offsetting
products
Revenue from
129,623,277.17 197,510,645.45 41,853,695.33 82,624,306.00 -10,224,629.68 441,387,294.27
main operations
Cost of main
103,283,120.76 148,296,269.63 30,554,000.92 76,594,824.74 -10,124,515.36 348,603,700.69
operations
Total assets 233,822,636.26 258,010,545.57 192,388,655.44 667,988,818.83 -250,881,562.80 1,101,329,093.30
Total liabilities 144,379,073.75 175,708,435.77 141,195,664.59 543,718,100.05 -165,073,574.81 839,927,699.35
XIV. Notes to items of parent company financial statements
(I) Notes to items of parent company balance sheet
1. Accounts receivable
(1) Details
1) Details on categories
Closing balance
Categories Book balance Provision for bad debts
Carrying amount
Amount % to total Amount Provision
proportion (%)
Receivables with provision
59,944,074.91 18.13 59,944,074.91 100.00
made on an individual basis
Receivables with provision
270,714,500.06 81.87 66,983,384.73 24.74 203,731,115.33
made on a collective basis
Total 330,658,574.97 100.00 126,927,459.64 38.39 203,731,115.33
(Continued)
Opening balance
Categories Book balance Provision for bad debts
Carrying amount
Amount % to total Amount Provision
proportion (%)
Receivables with provision 59,944,074.91 17.44 59,944,074.91 100.00
made on an individual basis
Receivables with provision 283,799,350.56 82.56 64,912,032.38 22.87 218,887,318.18
made on a collective basis
Total 343,743,425.47 100.00 124,856,107.29 36.32 218,887,318.18
2) Accounts receivable with provision made on an individual basis
Debtors Book balance Provision for bad Provision Reasons for
debts proportion (%) provision made
Dongpo Xi Laos Co., Ltd. 19,708,086.54 19,708,086.54 100.00 Unable to collect
Mr. Xu 17,591,683.74 17,591,683.74 100.00 Unable to collect
China Tower Corporation Unable to collect
13,819,926.92 13,819,926.92 100.00
Ltd.
Nanjing Zhengqian
Communication Technology 5,356,181.55 5,356,181.55 100.00 Unable to collect
Co., Ltd
119
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Debtors Book balance Provision for bad Provision Reasons for
debts proportion (%) provision made
Nanjing Aerte photoelectric Unable to collect
3,468,196.16 3,468,196.16 100.00
Co., Ltd
Subtotal 59,944,074.91 59,944,074.91 100.00
3) Accounts receivable with provision for bad debts made on an age analysis
Closing balance
Ages
Provision proportion
Book balance Provision for bad debts
(%)
Within 1 year 88,426,367.31 884,263.67 1.00
1-2 years 55,112,850.02 2,755,642.50 5.00
2-3 years 47,035,306.00 4,703,530.60 10.00
3-4 years 20,401,838.97 6,120,551.69 30.00
4-5 years 13,235,473.84 6,617,736.92 50.00
Over 5 years 45,901,659.35 45,901,659.35 100.00
Subtotal 270,113,495.49 66,983,384.73 24.80
(2) Changes in provision for bad debts
Increase Decrease
Items Opening Closing
balance Accrual Recovery Others Reversal Write-off Others balance
Receivables
with provision
59,944,074.91 59,944,074.91
made on an
individual basis
Receivables
with provision
64,912,032.38 2,071,352.35 66,983,384.73
made on a
collective basis
Subtotal 124,856,107.29 2,071,352.35 126,927,459.64
(3) Details of the top 5 debtors with largest balances
Proportion to the total
Debtors Book balance Provision for bad
balance of accounts
debts
receivable (%)
Dongpo Xi Laos Co., Ltd. 19,708,086.54 5.96 19,708,086.54
Mr. Xu 17,591,683.74 5.32 17,591,683.74
Hegang branch of China Tower Co.,
13,819,926.92 4.18 13,819,926.92
Ltd
Shenzhen Zhongchuang Electric
11,171,751.30 3.38 1,117,175.13
Measurement Technology Co., Ltd
Nanjing yuanzun Electromechanical
9,862,665.79 2.98 2,353,301.27
Equipment Co., Ltd
Subtotal 72,154,114.29 21.82 54,590,173.60
2. Other receivables
(1) Details
1) Details on categories
120
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Closing balance
Categories Book balance Provision for bad debts
Carrying
Amount % to total Amount Provision amount
proportion (%)
Receivables with provision made
31,098,272.43 41.61 31,098,272.43 100.00
on an individual basis
Receivables with provision
43,636,626.22 58.39 6,654,576.16 15.25 36,982,050.06
made on a collective basis
Total 74,734,898.65 100.00 37,752,848.59 50.52 36,982,050.06
(Continued)
Opening balance
Categories Book balance Provision for bad debts
Carrying
Amount % to total Amount Provision amount
proportion (%)
Receivables with provision made
33,010,009.04 36.68 33,010,009.04 100.00
on an individual basis
Receivables with provision
56,983,224.19 63.32 6,708,072.23 11.77 50,275,151.96
made on a collective basis
Total 89,993,233.23 100.00 39,718,081.27 44.13 50,275,151.96
2) Other receivables with provision made on an individual basis
Provision
Debtors Book balance Provision for bad Reasons for
proportion
debts provision made
(%)
Beijing Likangpu
Communication Equipment 28,912,122.71 28,912,122.71 100.00 Unable to collect
Co., Ltd.
Putian Communications Unable to collect
2,186,149.72 2,186,149.72 100.00
(Hong Kong) Co., Ltd.
Subtotal 31,098,272.43 31,098,272.43 100.00
3) Other receivables with provision made on a collective basis
Closing balance
Portfolios
Book balance Provision for bad debts Provision proportion (%)
Portfolio-Financing
1,578,947.37
margin
Portfolio-Other 42,057,678.85 6,654,576.16 15.82
Subtotal 43,636,626.22 6,654,576.16 15.25
(2) Ages
Items Closing book balance Opening book balance
Within 1 year 33,252,863.61 38,298,614.15
1-2 years 1,287,937.67 5,217,214.31
2-3 years 2,946,444.41 7,373,694.63
3-4 years 2,296,002.65 1,648,262.87
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
4-5 years 1,304,932.00 1,321,643.00
Over 5 years 33,646,718.31 36,133,804.27
Subtotal/Total 74,734,898.65 89,993,233.23
(3) Changes in provision for bad debts
Phase I Phase II Phase III
Items 12 month Lifetime expected Lifetime expected Subtotal
expected credit losses (credit credit losses (credit
credit losses not impaired) impaired)
Opening balance 480,904.58 39,237,176.69 39,718,081.27
Opening balance in
current period
--Transferred to phase II
--Transferred to phase III -77,787.12 77,787.12
--Reversed to phase II
--Reversed to phase I
Provision made in current
102,078.17 -155,574.24 -53,496.07
period
Provision recovered in
1,911,736.61 1,911,736.61
current period
Provision reversed in
current period
Provision written off in
current period
Other changes
Closing balance 505,195.63 37,247,652.96 37,752,848.59
(4) Other receivables categorized by nature
Nature of receivables Closing balance Opening balance
Temporary advance payment receivable 60,309,503.15 76,617,770.01
Deposit as security 9,749,249.43 10,992,593.44
Travel reserve fund 866,938.99 796,798.91
Others 3,809,207.08 1,586,070.87
Total 74,734,898.65 89,993,233.23
(5) Details of the top 5 debtors with largest balances
Proportion to the
Debtors Nature of Book balance Ages Provision for
total balance of other
receivables bad debts
receivables (%)
Temporary
Beijing Likangpu
advance Over 5 years
Communication 28,912,122.71 38.69 28,912,122.71
payment
Equipment Co., Ltd.
receivable
China Potevio Deposit as 2-5 years
1,958,000.00 2.62 1,046,900.00
Company Limited security
Far East
Financing 1-2 years
International 1,578,947.37 2.11 -
deposit
Leasing Co.,Ltd.
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Proportion to the
Debtors Nature of Book balance Ages Provision for
total balance of other
receivables bad debts
receivables (%)
Nanjing Putian
Deposit as 1-5 years
Communication 824,870.77 1.10 41,243.54
security
Industry Co., Ltd
Nanjing Municipal
Construction
Industry
Construction Deposit as Over 5 years
400,000.00 0.54 400,000.00
Enterprise Migrant security
Workers' Wage
Guarantee Fund
Management Office
Subtotal 33,673,940.85 45.06 30,400,266.25
3. Long-term equity investments
(1) Details
Closing balance Opening balance
Items
Provision for Carrying Provision for Carrying
Book balance Book balance
impairment amount impairment amount
Investments in
115,319,588.64 1,910,520.00 113,409,068.64 115,319,587.64 1,910,520.00 113,409,067.64
subsidiaries
Investments in
associates and 10,422,055.77 10,422,055.77 10,422,056.96 10,422,056.96
joint ventures
Total 125,741,644.41 1,910,520.00 123,831,124.41 125,741,644.60 1,910,520.00 123,831,124.60
(2) Investments in subsidiaries
Provision for
Closing balance
Investees Opening balance Increase Decrease Closing balance impairment
of provision for
made in current
impairment
period
Nanjing Putian Changle
Telecommunications 2,610,457.00 2,610,457.00
Equipment Co., Ltd.
Nanjing Putian Telege
3,320,003.45 3,320,003.45
Intelligent Building Ltd.
Nanjing Southern Telecom Co.,
33,175,148.00 33,175,148.00
Ltd
Nanjing Nanman Electrics Co.,
57,831,011.71 1.00 57,831,012.71
Ltd.
Nanjing Putian Network Co.,
7,741,140.41 7,741,140.41
Ltd.
Nanjing Putian Datang
Information Electronic Co., 5,436,797.07 5,436,797.07
Ltd.
Nanjing Putian
Telecommunication 1,294,510.00 1,294,510.00
Technology Co., Ltd.
Putian Telecommunications
1,910,520.00 1,910,520.00 1,910,520.00
(H.K.) Co., Ltd.
Chongqing Puhua Information
2,000,000.00 2,000,000.00
Technology Co., Ltd
Subtotal 115,319,587.64 1.00 115,319,588.64 1,910,520.00
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
(3) Investments in associates and joint ventures
Increase/Decrease
Investees Opening balance Investment income Adjustment in other
Investments Investments
recognized under comprehensive
increased decreased
equity method income
Joint ventures
SEI-Nanjing Potevio
Optical Network Co., 10,422,056.96 -1.19
Ltd.
Total 10,422,056.96 -1.19
(Continued)
Increase/Decrease
Closing
Investees Cash balance of
Closing balance
Changes in dividend/Profit Provision for provision for
Others impairment
other equity declared for impairment
distribution
Joint ventures
SEI-Nanjing
Potevio Optical 10,422,055.77
Network Co., Ltd.
Total 10,422,055.77
(II) Notes to items of the parent company income statement
1. Operating revenue/Operating cost
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Main operations 57,592,825.38 53,102,335.86 56,667,765.21 56,773,522.18
Other operations 6,018,376.27 5,993,665.33 5,932,648.40 5,721,551.62
Total 63,611,201.65 59,096,001.19 62,600,413.61 62,495,073.80
2. Investment income
Items Current period cumulative Preceding period comparative
Investment income from long-term
equity investments under cost 9,153,400.00
method
Investment income from long-term
equity investments under equity -1.19 -137,939.58
method
Investment income from long-term
equity investments under cost 55,267,500.00
method
Total 9,153,398.81 55,129,560.42
XV. Other supplementary information
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Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
(I) Non-recurring profit or loss
1. Schedule of non-recurring profit or loss
(1) Details
Items Amount Remarks
Gains on disposal of non-current assets, including write-off
15,829.32
of provision for impairment
Government grants included in profit or loss (excluding
those closely related to operating activities of the
Company, satisfying government policies and 360,145.78
regulations, and continuously enjoyed with certain
quantity/quota based on certain standards)
Other non-operating revenue or expenditures -4,610.41
Subtotal 371,364.69
Less: Enterprise income tax affected 25,041.95
Non-controlling interest affected (after tax) 73,731.44
Net non-recurring profit or loss attributable to shareholders
272,591.30
of the parent company
(II) RONA and EPS
1. Details
EPS (yuan/share)
Profit of the reporting period Weighted average
RONA (%) Basic EPS Diluted EPS
Net profit attributable to shareholders
-16.14 -0.14 -0.14
of ordinary shares
Net profit attributable to shareholders
of ordinary shares after deducting -16.29 -0.14 -0.14
non-recurring profit or loss
2. Calculation process of weighted average RONA
Items Symbols Current period
cumulative
Net profit attributable to shareholders of ordinary shares A -29,593,867.19
Non-recurring profit or loss B 272,591.30
Net profit attributable to shareholders of ordinary shares after C=A-B -29,866,458.49
deducting non-recurring profit or loss
Opening balance of net assets attributable to shareholders of D 189,624,160.92
ordinary shares
Net assets attributable to shareholders of ordinary shares
increased due to offering of new shares or conversion of E
debts into shares
Number of months counting from the next month when the F
net assets were increased to the end of the reporting period
Net assets attributable to shareholders of ordinary shares
decreased due to share repurchase or cash dividends G
appropriation
Number of months counting from the next month when the H
net assets were decreased to the end of the reporting period
Others Others I 12,717,639.48
125
Nanjing Putian Telecommunications Co., Ltd. Semi-annual Report 2021
Items Symbols Current period
cumulative
Number of months counting from the next
month when other net assets were increased J 4
or decreased to the end of the reporting
period
Number of months in the reporting period K 6
Weighted average net assets L= D+A/2+
183,305,653.65
E×F/K-G×H/K±I×J/K
Weighted average RONA (%) M=A/L -16.14
Weighted average RONA after deducting non-recurring profit N=C/L -16.29
or loss (%)
3. Calculation process of basic EPS and diluted EPS
(1) Calculation process of basic EPS
Items Symbols Current period
cumulative
Net profit attributable to shareholders of ordinary shares A -29,593,867.19
Non-recurring profit or loss B 272,591.30
Net profit attributable to shareholders of ordinary shares after C=A-B -29,866,458.49
deducting non-recurring profit or loss
Opening balance of total shares D 215,000,000.00
Number of shares increased due to conversion of reserve to E
share capital or share dividend appropriation
Number of shares increased due to offering of new shares or F
conversion of debts into shares
Number of months counting from the next month when the G
share was increased to the end of the reporting period
Number of shares decreased due to share repurchase H
Number of months counting from the next month when the I
share was decreased to the end of the reporting period
Number of shares decreased in the reporting period J
Number of months in the reporting period K 6.00
Weighted average of outstanding ordinary shares L=D+E+F×G/K-H×I/
215,000,000.00
K-J
Basic EPS M=A/L -0.14
Basic EPS after deducting non-recurring profit or loss N=C/L -0.14
Calculation process of diluted EPS is the same as calculation process of basic EPS.
Board of Directors of
Nanjing Putian Telecommunications Co., Ltd.
27 August 2021
126
