Consolidated balance sheet
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. 2022/6/30 Unit：RMB
Item Notes 2022/6/30 2021/12/31
Current assets：
Cash and bank balances V(1) 131,450,037.72 188,665,530.37
Held-for-trading financial assets V(2) 20,000,000.00
Derivative financial assets
Notes receivable V(3) 8,852,901.01 13,703,192.38
Accounts receivable V(4) 393,215,904.17 334,586,551.93
Receivables financing V(5) 16,350,913.52 40,852,223.88
Advances paid V(6) 26,337,161.83 22,645,816.66
Other receivable V(7) 13,660,160.59 16,628,195.17
Including: Interest receivable
dividend receivable
Inventories V(8) 178,263,171.37 186,531,565.70
Contract assets
assets hold available for sale
Non-current assets due within one year
Other current assets V(9) 4,784,402.16 7,763,000.07
Total current assets 772,914,652.37 831,376,076.16
Non-current assets：
Debt investment
Other debt investment
Long-term receivable
Long-term equity investments V(10) 10,422,192.16 10,422,193.15
Other equity instrument investments V(11) 741,953.00 741,953.00
Other non-current financial assets
Investment property V(12) 6,510,352.16 6,854,891.51
Fixed assets V(13) 114,216,914.49 117,801,156.71
Construction in progress V(14) 1,182,171.32 292,996.23
Productive biological assets
Oil and gas asset
Right-of-use asset
Intangible assets V(15) 20,584,978.06 21,108,747.48
Development expenditure
Goodwill
Long-term prepayments V(16) 4,253,353.84 4,973,968.20
Deferred tax assets V(17)
Other non-current assets
Total non-current assets 157,911,915.03 162,195,906.28
Total assets 930,826,567.40 993,571,982.44
Legal Representative: Accounting Director: Accounting Manager:
-1-
Consolidated balance sheet (continued)
Preparation unit：Nanjing Putian Telecommunications Co., Ltd.2022/6/30 Unit：RMB
Item Notes 2022/6/30 2021/12/31
Current liabilities：
Short-term borrowings V(18) 226,300,000.00 199,000,000.00
Transactional financial liabilities
Derivative financial liabilities
Notes payable V(19) 1,250,000.00 1,251,741.17
Accounts payable V(20) 478,365,312.80 538,363,742.94
Advances received
Contract liabilities V(21) 19,029,759.47 18,884,024.60
Employee benefits payable V(22) 17,810,279.35 19,445,171.68
Taxes payable V(23) 6,251,609.62 2,881,067.35
Other payable V(24) 66,204,911.49 64,006,795.08
Including: Interest payable
dividend payable 12,538,813.38 2,142,213.38
Liability hold for sale
Non-current liabilities due within one year V(25) 2,656,474.95
Other current liabilities V(26) 1,520,821.27 2,454,923.31
Total current liability 816,732,694.00 848,943,941.08
Non-current liability：
Long-term borrowings
Bonds payable
Including: preferred shares
Perpetual bond
Lease liability
Long-term payable
Long-term employee compensation payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liability
Total non-current liability
Total liability 816,732,694.00 848,943,941.08
Owners' equity (or shareholders' equity):
Share capital V(27) 215,000,000.00 215,000,000.00
Other equity instrument
Including: preferred shares
Perpetual bond
Capital reserve V(28) 197,864,174.08 197,864,174.08
Less: treasury stocks
Other comprehensive income (OCI) V(29) -1,854,910.00 -6,819,637.82
Special reserves
Surplus reserve V(30) 589,559.77 589,559.77
Undistributed profit V(31) -369,157,980.67 -341,446,683.34
Total owner's equity (or shareholders' equity) attributable to
42,440,843.18 65,187,412.69
the parent company
Minority shareholders' equity 71,653,030.22 79,440,628.67
Total owner's equity (or shareholders' equity) 114,093,873.40 144,628,041.36
Total liabilities and owners’ equity (or shareholders’ equity) 930,826,567.40 993,571,982.44
Legal Representative: Accounting Director: Accounting Manager:
-2-
Parent Company Balance Sheet
Preparation unit：Nanjing Putian Telecommunications Co., Ltd.2022/6/30 Unit：RMB
Item Notes 2022/6/30 2021/12/31
Current assets：
Cash and bank balances 16,061,627.27 36,485,015.68
Held-for-trading financial assets
Derivative financial assets
Notes receivable 649,152.10 390,277.10
Accounts receivable XII(I) 113,129,555.87 124,745,572.67
Receivables financing 1,981,223.66 2,756,775.53
Advances paid 14,592,117.77 15,353,338.77
Other receivable XII(II) 35,351,146.99 28,544,036.00
Including: Interest receivable
dividend receivable 600,000.00 600,000.00
Inventories 48,766,852.21 48,126,590.30
Contract assets
assets hold available for sale
Non-current assets due within one year
Other current assets 1,004,041.49 379,332.63
Total current assets 231,535,717.36 256,780,938.68
Non-current assets：
Debt investment
Other debt investment
Long-term receivable
Long-term equity investments XII(III) 123,831,260.80 123,831,261.79
Other equity instrument investment 741,953.00 741,953.00
Other non-current financial assets
Investment property
Fixed assets 42,350,211.62 43,878,403.96
Construction in progress
Productive biological assets
Oil and gas asset
Right-of-use asset
Intangible assets 4,463,053.85 4,644,068.97
Development expenditure
Goodwill
Long-term prepayments 3,620,874.07 4,192,313.07
Deferred tax assets
Other non-current assets
Total non-current assets 175,007,353.34 177,288,000.79
Total assets 406,543,070.70 434,068,939.47
Legal Representative: Accounting Director: Accounting Manager:
-3-
Parent Company Balance Sheet (Continued)
Preparation unit：Nanjing Putian Telecommunications Co., Ltd.2022/6/30 Unit：RMB
Item Notes 2022/6/30 2021/12/31
Current liabilities：
Short-term borrowings 145,000,000.00 145,000,000.00
Transactional financial liabilities
Derivative financial liabilities
Notes payable 1,250,000.00 1,251,741.17
Accounts payable 153,233,196.52 170,302,775.78
Advances received
Contract liabilities 9,919,214.76 7,311,902.06
Employee benefits payable 7,699,834.71 9,250,482.99
Taxes payable 440,469.45 57,506.75
Other payables 149,057,443.51 141,386,167.51
Including: Interest payable
dividend payable
Liability hold for sale
Non-current liabilities due within one year 2,656,474.95
Other current liabilities 340,274.44 950,547.38
Total current liability 466,940,433.39 478,167,598.59
Non-current liability：
Long-term borrowings
Bonds payable
Including: preferred shares
Perpetual bond
Lease liability
Long-term payable
Long-term employee compensation payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liability
Total non-current liability
Total liability 466,940,433.39 478,167,598.59
Owners' equity (or shareholders' equity):
Share capital 215,000,000.00 215,000,000.00
Other equity instrument
Including: preferred shares
Perpetual bond
Capital reserve 158,864,042.34 158,864,042.34
Less: treasury stocks
Other comprehensive income (OCI) -1,854,910.00 -1,854,910.00
Special reserves
Surplus reserve 589,559.76 589,559.76
Undistributed profit -432,996,054.79 -416,697,351.22
Total owner's equity (or shareholders' equity) -60,397,362.69 -44,098,659.12
Total liabilities and owners’ equity (or shareholders’ equity) 406,543,070.70 434,068,939.47
Legal Representative: Accounting Director: Accounting Manager:
-4-
Consolidated Income Statement
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. From January to June 2022 Unit：RMB
Current period Preceding period
Item Notes
cumulative comparative
I. Operating revenue V(32) 407,312,616.35 451,878,610.43
Less：Operating cost V(32) 323,444,209.14 357,433,868.99
Taxes and surcharges V(33) 2,360,382.34 2,771,656.02
Selling expenses V(34) 40,632,210.06 49,061,292.58
Administrative expenses V(35) 28,299,430.10 29,720,592.42
R&D expenses V(36) 23,642,718.55 29,747,490.78
Financial expenses V(37) 4,638,360.06 2,565,937.64
Including:Interst expense 5,291,794.15 2,798,625.53
Interst income 779,954.73 410,149.62
Add: other income V(38) 1,075,367.01 1,192,018.97
Investment income (losses are listed with "-") V(39) -5,753,130.77 -1.19
Including: investment income from associates and joint ventures -0.99 -1.19
Derecognition income of financial assets measured at amortized cost
Net exposure hedging gain (loss are listed with "-")
Gains from changes in fair value (losses are listed with "-")
Credit impairment loss (losses are listed with "-") V(40) -3,623,776.05 -2,408,210.40
Assets impairment loss(losses are listed with "-") V(41) -9,993.42
Gain on assets disposal (loss are listed with "-") V(42) 59,868.36 15,829.32
II. Operating profit（loss show as “－”） -23,956,358.77 -20,622,591.30
Plus: non-operating revenue V(43) 2,742,228.49 56,934.58
Less: non-operating expenditures V(44) 23,319.82 61,544.99
III. Total profit (total loss is listed with "-") -21,237,450.10 -20,627,201.71
Deduct: income tax expense V(45) 3,414,845.68 4,521,812.72
IV. Net profit (net loss is listed with "-") -24,652,295.78 -25,149,014.43
(1) Classified by business continuity:
1.Net profits from continuing operations -24,652,295.78 -25,149,014.43
2.Discontinued operating net profit
(2) Classified by ownership:
1.Net profits belong to the parent company's owner -27,711,297.33 -29,593,867.19
2.Minority shareholder gains and losses 3,059,001.55 4,444,852.76
V. Net after-tax of other comprehensive income 4,964,727.82 961,946.58
(1) Net after-tax amount of other comprehensive income attributable to owners of
4,964,727.82 961,946.58
the parent company
1) Other comprehensive income that cannot be reclassified into profit and loss
1.Re-measurement of changes in defined benefit plans
2.Other comprehensive income that cannot be transferred to profit or loss
under the equity method
3.Changes in the fair value of other equity instrument investments
4.Changes in fair value of the enterprise's own credit risk
2) Other comprehensive income that will be reclassified into profit and loss 4,964,727.82 961,946.58
1.Other comprehensive income that can be converted to profit or loss under the
equity method
2.Changes in the fair value of other debt investments
3.Amount of financial assets reclassified and included in other comprehensive
income
4.Other debt investment credit impairment reserves
5.Cash flow hedge reserve (the effective part of cash flow hedge gains and
losses)
6.Translation difference of foreign currency financial statements 4,964,727.82 961,946.58
7.Other
(2) Net after-tax amount of other comprehensive income attributable to minority
shareholders
VI. Total comprehensive income -19,687,567.96 -24,187,067.85
(1) Total comprehensive income attributable to owners of the parent -22,746,569.51 -28,631,920.61
(2) Total comprehensive income attributable to minority shareholders 3,059,001.55 4,444,852.76
VII. Earnings per share
(1) Basic earnings per share -0.13 -0.14
(2) Diluted earnings per share -0.13 -0.14
Legal Representative: Accounting Director: Accounting Manager:
-5-
Parent company income statement
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. From January to June 2022 Unit：RMB
Current period Preceding period
Item Notes
cumulative comparative
I. Operating revenue XII（IV） 50,038,373.04 63,611,201.65
Less：Operating cost XII（IV） 46,478,802.30 59,096,001.19
Taxes and surcharges 470,537.41 891,562.48
Selling expenses 7,634,487.51 14,093,441.48
Administrative expenses 13,590,533.21 14,173,902.23
R&D expenses 2,099,006.16 4,771,057.66
Financial expenses 3,082,696.98 1,549,446.67
Including:Interst expense 1,997,776.76
Interst income 498,022.08
Add: other income 232,500.00
Investment income (losses are listed with "-") XII（V） 9,275,567.95 9,153,398.81
Including: investment income from associates and joint ventures -0.99 -1.19
Derecognition income of financial assets measured at amortized cost
Net exposure hedging gain (loss are listed with "-")
Gains from changes in fair value (losses are listed with "-")
Credit impairment loss (losses are listed with "-") -2,247,159.32 -55,949.44
Assets impairment loss(losses are listed with "-") -9,993.42
Gain on assets disposal (loss are listed with "-") 11,078.62 15,829.32
II. Operating profit（loss show as “－”） -16,288,196.70 -21,618,431.37
Plus: non-operating revenue 0.30 22,004.66
Less: non-operating expenditures 10,507.17 58,703.08
III. Total profit (total loss is listed with "-") -16,298,703.57 -21,655,129.79
Deduct: income tax expense
IV. Net profit (net loss is listed with "-") -16,298,703.57 -21,655,129.79
(1) Net profits from continuing operations -16,298,703.57 -21,655,129.79
(2) Discontinued operating net profit
V.Other comprehensive income net of tax
(1) Comprehensive income not to be reclassified to profit or loss
1. Changes in remeasurement of defined benefit obligations
2. Other comprehensive income not to be reclassified to profit or loss in
equity method
3. Fair value changes in other equity instrument investments
4. Fair value changes in the enterprise's own credit risk
(2) Comprehensive income to be reclassified to profit or loss
1. Other comprehensive income to be reclassified to profit or loss in equity
method
2. Gain or loss from fair value changes of other debt instruments
3.Amount of financial assets reclassified and included in other comprehensive
income
4. Credit impairment provision of other debt investment
5.Cash flow hedge reserve (the effective part of cash flow hedge gains and
losses)
6.Translation difference of foreign currency financial statements
7.Other
VI. Total comprehensive income -16,298,703.57 -21,655,129.79
VII. Earnings per share:
(1) Basic earnings per share
(2) Diluted earnings per share
Legal Representative: Accounting Director: Accounting Manager:
-6-
Consolidated statement of cash flow
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. From January to June 2022 Unit：RMB
Current period Preceding period
Item Notes
cumulative comparative
I. Cash flow from operating activities:
Cash received from the sale of goods and the provision of labor
363,970,444.16 420,252,617.33
services
Tax Refund 2,247,311.40 1,054,350.93
Other cash received relating to operating activities V(46) 30,412,910.74 14,468,443.28
Subtotal of cash inflow from operating activities 396,630,666.30 435,775,411.54
Cash paid for purchasing goods and receiving labor services 329,573,224.21 373,073,984.06
Cash paid to and for employees 96,370,956.21 95,944,470.91
Various taxes and fees paid 12,364,394.53 22,940,276.09
Other cash payments related to operating activities V(46) 54,186,088.91 60,538,953.63
Subtotal of cash outflows from operating activities 492,494,663.86 552,497,684.69
Net cash flow from operating activities -95,863,997.56 -116,722,273.15
II. Cash flow from investment activities:
Cash received from investment 20,000,000.00
Cash received from investment income 337,205.48
Net cash received from the disposal of fixed assets, intangible assets
71,200.00 31,890.00
and other long-term assets
Net cash received from disposal of subsidiaries and other business
units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 20,408,405.48 31,890.00
Cash paid for the purchase and construction of fixed assets, intangible
1,427,941.67 3,324,429.34
assets and other long-term assets
Cash Investment
Net cash paid for acquiring subsidiaries and other business units
Other cash paid relating to investing activities
Subtotal of cash outflows from investing activities 1,427,941.67 3,324,429.34
Net cash flows from investing activities 18,980,463.81 -3,292,539.34
III. Cash flow from financing activities:
Absorb cash received from investment
Including: cash received by the subsidiary from absorbing minority
shareholders' investment
Cash received from borrowing 45,900,000.00 140,500,000.00
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities 45,900,000.00 140,500,000.00
Cash paid for debt repayment 18,600,000.00 70,057,921.04
Cash paid for dividends, profits, or interest payments 6,123,632.11 7,991,968.37
Including: dividends and profits paid by subsidiaries to minority
450,000.00
shareholders
Other cash payments related to financing activities V(46) 1,138,717.12 39,813,078.92
Subtotal of cash outflows from financing activities 25,862,349.23 117,862,968.33
Net cash flow from financing activities 20,037,650.77 22,637,031.67
IV. The impact of exchange rate changes on cash and cash equivalents 19,186.31 424,532.65
V. Net increase in cash and cash equivalents -56,826,696.67 -96,953,248.17
Add: the balance of cash and cash equivalents at the beginning of the
180,459,070.86 170,062,746.87
period
VI. Balance of cash and cash equivalents at the end of the period 123,632,374.19 73,109,498.70
Legal Representative: Accounting Director: Accounting Manager:
-7-
Statement of cash flow of Parent Co.
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. From January to June 2022 Unit：RMB
Current period Preceding period
Item Notes
cumulative comparative
I. Cash flow from operating activities:
Cash received from the sale of goods and the provision of labor
64,382,978.54 75,606,543.56
services
Tax Refund 1,333,269.39 18,754.29
Other cash received relating to operating activities 15,236,826.00 38,473,620.39
Subtotal of cash inflow from operating activities 80,953,073.93 114,098,918.24
Cash paid for purchasing goods and receiving labor services 55,493,018.43 69,851,073.79
Cash paid to and for employees 32,894,116.80 31,619,733.53
Various taxes and fees paid 1,139,849.38 1,076,610.70
Other cash payments related to operating activities 16,633,930.15 50,209,315.10
Subtotal of cash outflows from operating activities 106,160,914.76 152,756,733.12
Net cash flow from operating activities -25,207,840.83 -38,657,814.88
II. Cash flow from investment activities:
Cash received from investment
Cash received from investment income 9,153,400.00 4,500,000.00
Net cash received from the disposal of fixed assets, intangible assets
31,890.00
and other long-term assets
Net cash received from disposal of subsidiaries and other business
units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 9,153,400.00 4,531,890.00
Cash paid for the purchase and construction of fixed assets,
1,000.00
intangible assets and other long-term assets
Cash Investment
Net cash paid for acquiring subsidiaries and other business units
Other cash paid relating to investing activities
Subtotal of cash outflows from investing activities 1,000.00
Net cash flows from investing activities 9,152,400.00 4,531,890.00
III. Cash flow from financing activities:
Absorb cash received from investment
Cash received from borrowing 95,000,000.00
Other cash receipts related to financing activities 1,000,000.00
Subtotal of cash inflows from financing activities 1,000,000.00 95,000,000.00
Cash paid for debt repayment 35,057,921.04
Cash paid for dividends, profits, or interest payments 3,492,768.06 729,270.76
Other cash payments related to financing activities 1,738,717.12 41,391,500.00
Subtotal of cash outflows from financing activities 5,231,485.18 77,178,691.80
Net cash flow from financing activities -4,231,485.18 17,821,308.20
IV. The impact of exchange rate changes on cash and cash equivalents 18,860.82
V. Net increase in cash and cash equivalents -20,268,065.19 -16,304,616.68
Add: the balance of cash and cash equivalents at the beginning of the
33,541,475.85 24,349,341.34
period
VI. Balance of cash and cash equivalents at the end of the period 13,273,410.66 8,044,724.66
Legal Representative: Accounting Director: Accounting Manager:
-8-
Consolidated statement of change of equity
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. From January to June 2022 Unit：RMB
Current period
Equity attributable to parent company
Item Minority
Other equity instruments Other Total owner's equity
Paid-in capital (or Less: treasury Special Surplus shareholders' equity
Preferred stock Perpetual bond Capital reserve comprehensive undistributed profit Subtotal
equity) other stocks reserves reserve
income
I. Balance at the end of the previous year 215,000,000.00 197,864,174.08 -6,819,637.82 589,559.77 -341,446,683.34 65,187,412.69 79,440,628.67 144,628,041.36
Add: Accounting policy changes
Correction of previous errors
Merger of enterprises under the same control
Others
II. Balance at the beginning of the year 215,000,000.00 197,864,174.08 -6,819,637.82 589,559.77 -341,446,683.34 65,187,412.69 79,440,628.67 144,628,041.36
III. The amount of increase or decrease in this year
4,964,727.82 -27,711,297.33 -22,746,569.51 -7,787,598.45 -30,534,167.96
(decrease is listed with "-")
(1) Total comprehensive income 4,964,727.82 -27,711,297.33 -22,746,569.51 3,059,001.55 -19,687,567.96
(2) Owner's investment and reduction of capital
1. Ordinary shares invested by the owner
2. Capital invested by holders of other equity
instruments
3. The amount of share-based payment included
in owner's equity
4. Other
(3) Profit distribution -10,846,600.00 -10,846,600.00
1. Withdraw surplus reserve
2. Distribution to owners (or shareholders) -10,846,600.00 -10,846,600.00
3. Others
(4) Internal transfer of owners' equity
1. Conversion of capital reserve into capital (or
share capital)
2. Conversion of surplus reserves into capital (or
equity)
3. Surplus reserves make up for losses
4. Carryover of retained earnings from changes in
the defined benefit plan
5. Other comprehensive income carried forward to
retained earnings
6. Other
(5) Special reserve
1. Withdraw special reserves
2. Use special reserves
(6) Others
IV. Balance at the end of the period 215,000,000.00 197,864,174.08 -1,854,910.00 589,559.77 -369,157,980.67 42,440,843.18 71,653,030.22 114,093,873.40
Legal Representative: Accounting Director: Accounting Manager:
-9-
Consolidated statement of change of equity(Continued)
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. From January to June 2022 Unit：RMB
Preceding period
Equity attributable to parent company
Item Minority
Other equity instruments Other Total owner's equity
Paid-in capital (or Less: treasury Special Surplus shareholders' equity
Capital reserve comprehensive undistributed profit Subtotal
equity) Preferred stock Perpetual bond other stocks reserves reserve
income
I. Balance at the end of the previous year 215,000,000.00 183,568,842.44 -6,853,931.65 589,559.77 -202,680,309.64 189,624,160.92 106,810,900.88 296,435,061.80
Add: Accounting policy changes
Correction of previous errors
Merger of enterprises under the same control
Others
II. Balance at the beginning of the year 215,000,000.00 183,568,842.44 -6,853,931.65 589,559.77 -202,680,309.64 189,624,160.92 106,810,900.88 296,435,061.80
III. The amount of increase or decrease in this year
12,717,639.48 961,946.58 -29,593,867.19 -15,914,281.13 -19,119,387.72 -35,033,668.85
(decrease is listed with "-")
(1) Total comprehensive income 961,946.58 -29,593,867.19 -28,631,920.61 4,444,852.76 -24,187,067.85
(2) Owner's investment and reduction of capital 12,717,639.48 12,717,639.48 -12,717,640.48 -1.00
1. Ordinary shares invested by the owner
2. Capital invested by holders of other equity
instruments
3. The amount of share-based payment included
in owner's equity
4. Other 12,717,639.48 12,717,639.48 -12,717,640.48 -1.00
(3) Profit distribution -10,846,600.00 -10,846,600.00
1. Withdraw surplus reserve
2. Distribution to owners (or shareholders) -10,846,600.00 -10,846,600.00
3. Others
(4) Internal transfer of owners' equity
1. Conversion of capital reserve into capital (or
share capital)
2. Conversion of surplus reserves into capital (or
equity)
3. Surplus reserves make up for losses
4. Carryover of retained earnings from changes in
the defined benefit plan
5. Other comprehensive income carried forward to
retained earnings
6. Other
(5) Special reserve
1. Withdraw special reserves
2. Use special reserves
(6) Others
IV. Balance at the end of the period 215,000,000.00 196,286,481.92 -5,891,985.07 589,559.77 -232,274,176.83 173,709,879.79 87,691,513.16 261,401,392.95
Legal Representative: Accounting Director: Accounting Manager:
- 10 -
Consolidated statement of change of equity of Parent Co.
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. From January to June 2022 Unit：RMB
Current period
Item Other equity instruments Other
Paid-in capital (or Less: treasury
Capital reserve comprehensive Special reserves Surplus reserve undistributed profit Total owner's equity
equity) Preferred stock Perpetual bond other stocks
income
I. Balance at the end of the previous year 215,000,000.00 158,864,042.34 -1,854,910.00 589,559.76 -416,697,351.22 -44,098,659.12
Add: Accounting policy changes
Correction of previous errors
Others
II. Balance at the beginning of the year 215,000,000.00 158,864,042.34 -1,854,910.00 589,559.76 -416,697,351.22 -44,098,659.12
III. The amount of increase or decrease in this year
-16,298,703.57 -16,298,703.57
(decrease is listed with "-")
(1) Total comprehensive income -16,298,703.57 -16,298,703.57
(2) Owner's investment and reduction of capital
1. Ordinary shares invested by the owner
2. Capital invested by holders of other equity
instruments
3. The amount of share-based payment included
in owner's equity
4. Other
(3) Profit distribution
1. Withdraw surplus reserve
2. Distribution to owners (or shareholders)
3. Others
(4) Internal transfer of owners' equity
1. Conversion of capital reserve into capital (or
share capital)
2. Conversion of surplus reserves into capital (or
equity)
3. Surplus reserves make up for losses
4. Carryover of retained earnings from changes in
the defined benefit plan
5. Other comprehensive income carried forward to
retained earnings
6. Other
(5) Special reserve
1. Withdraw special reserves
2. Use special reserves
(6) Others
IV. Balance at the end of the period 215,000,000.00 158,864,042.34 -1,854,910.00 589,559.76 -432,996,054.79 -60,397,362.69
Legal Representative: Accounting Director: Accounting Manager:
- 11 -
Consolidated statement of change of equity of Parent Co.(Continued)
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. From January to June 2022 Unit：RMB
Preceding period
Item Other equity instruments Other
Paid-in capital (or Less: treasury
Preferred stock Perpetual bond Capital reserve comprehensive Special reserves Surplus reserve undistributed profit Total owner's equity
equity) other stocks
income
I. Balance at the end of the previous 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: Accounting policy changes
Correction of previous errors
Others
II. Balance at the beginning of the 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. The amount of increase or decrease in this year
-21,655,129.79 -21,655,129.79
(decrease is listed with "-")
(1) Total comprehensive income -21,655,129.79 -21,655,129.79
(2) Owner's investment and reduction of capital
1. Ordinary shares invested by the owner
2. Capital invested by holders of other equity
instruments
3. The amount of share-based payment included
in owner's equity
4. Other
(3) Profit distribution
1. Withdraw surplus reserve
2. Distribution to owners (or shareholders)
3. Others
(4) Internal transfer of owners' equity
1. Conversion of capital reserve into capital (or
share capital)
2. Conversion of surplus reserves into capital (or
equity)
3. Surplus reserves make up for losses
4. Carryover of retained earnings from changes in
the defined benefit plan
5. Other comprehensive income carried forward to
retained earnings
6. Other
(5) Special reserve
1. Withdraw special reserves
2. Use special reserves
(6) Others
IV. Balance at the end of the period 215,000,000.00 158,864,042.34 -1,854,910.00 589,559.76 -311,671,285.22 60,927,406.88
Legal Representative: Accounting Director: Accounting Manager:
- 12 -
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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. R & D, manufacturing and sales of new
energy vehicle charging products and their accessories (including electric vehicle charger charging
module, charging station system, split charging cabinet, outdoor integrated pile, various AC and DC
charging piles and other accessories); Design and sales of new energy charging and discharging
overall solutions; Electric vehicle charging operation and maintenance. R & D and sales of software
and intelligent software platform. Smart city, smart elderly care and other industry information
services. R & D, manufacturing, sales, installation and service of video equipment and video
conference system. Agent sales of communication modified vehicles (excluding wholesale), and
provide corresponding after-sales service. Design, system integration and related consulting services
of communication information network engineering and computer information system engineering.
Design, construction, installation and service of building intelligent system engineering. Lease of
self owned assets such as houses and equipment.
The financial statements have been deliberated and approved for issue by the Board of
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Directors dated August 19, 2022.
The Company has brought 8 subsidiaries including Nanjing Southern Telecom Co., Ltd, and
Nanjing PutianTelege Intelligent Building Co., Ltd. etc. into the consolidated scope. Please refer to
notes of VI and VII for details.
II. Preparation basis of the financial statements
(I) Preparation basis
The financial statements of the Company are prepared on the basis of going concern, based on
actual transactions and events, in accordance with the Accounting Standards for Business
Enterprises-Basic Standards and specific Accounting Standards promulgated by the Ministry of
Finance (hereinafter collectively referred to as the "Accounting Standards for Business Enterprises")
and based on the important accounting policies and accounting estimates described below.
(II) Assessment of the ability to continue as a going concern
The Company has no events or 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 formulated specific accounting policies and estimates for
transactions or matters such as impairment of financial instruments, depreciation of fixed assets,
amortization of intangible assets and revenue recognition according to the actual characteristics of
production and operation.
(I) Statement of compliance
The financial statements prepared by the Company comply with the requirements of the
Accounting Standards for Business Enterprises and truly and completely reflect the financial
position of the Company as of June 30, 2022, the operating results and cash flows of the year from
January to June 2022 and other relevant information.
(II) Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian
calendar.
(III) Operating cycle
The Company has a relatively short operating cycle for its business, an asset or a liability is
- 14 -
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
Of a long-term equity investment under the same control enterprise merger form combined
party to pay in cash, transfers non-cash assets or bear debt, as a merger of consideration, the
company owners' equity on the combining date according to the combined party on the final the
share of the book value of the control side of the consolidated financial statements as the initial cost
of the long-term equity investment. If the merging party issues equity instruments as the merger
consideration, the total par value of the issued shares shall be used as the share capital. The
difference between the initial investment cost of long-term equity investment and the book value of
the combined consideration (or the total face value of the issued shares) shall be adjusted to the
capital reserve; If the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
2. Accounting treatment of business combination not under common control
For business combinations not under the same control, the merger cost is the sum of the fair
value of the assets paid by the purchaser, the liabilities incurred or assumed and the equity securities
issued by the purchaser on the purchase date in order to gain control over the acquired purchaser.
The identifiable assets, liabilities and contingent liabilities of the purchased party that are acquired in
a business combination under different control and meet the recognition conditions shall be
measured at fair value on the purchase date. The difference between the buyer's cost of the merger
and the fair value share of the identifiable net assets of the acquiree obtained in the merger is
reflected as the value of goodwill. If the merger cost is less than the fair value share of the
identifiable net assets of the acquiree obtained in the merger, the difference between the merger cost
and the fair value share of the identifiable net assets of the acquiree obtained in the merger shall be
included in the non-operating income of the current period.
(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 –
- 15 -
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. Classification of joint venture arrangements
Joint venture arrangement is divided into joint venture and joint venture. If the joint venture
arrangement is not reached by a single entity, it shall be classified as joint operation. A separate
subject refers to a subject with a separate identifiable financial structure, including a separate legal
entity and a subject without legal entity qualification but recognized by law. A joint venture
arrangement through a separate entity, usually classified as a joint venture. Where the rights and
obligations of the party under the joint venture arrangement have changed due to changes in relevant
facts and circumstances, the party shall reassess the classification of the joint venture arrangement.
2. Accounting for joint operations
As a participant in the joint operation, the Company shall recognize the following items related
to the share of interests in the joint operation and conduct accounting treatment in accordance with
the relevant accounting standards for enterprises: recognize the assets or liabilities held separately
and recognize the assets or liabilities held jointly according to the share; Recognize the revenue
generated from the sale of the share of output enjoyed by the joint operation; To recognize the
revenue generated by the sale of the output of the joint operation according to its share; Recognize
expenses incurred separately and expenses incurred in joint operations by share.
The Company is a participant without joint control over the joint operation. If the company
enjoys the relevant assets of the joint operation and bears the relevant liabilities of the joint operation,
it shall conduct accounting treatment according to the provisions of the joint operation participant;
Otherwise, according to the provisions of the relevant enterprise accounting standards for accounting
treatment.
3. Accounting treatment of joint venture
The company is the joint venture party, in accordance with the "Accounting Standards for
Enterprises No. 2 - Long-term Equity investment" for the joint venture investment accounting
treatment; The Company is not a joint venture party, according to the extent of the impact on the
joint venture accounting treatment.
- 16 -
(VIII) Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for
payment. Cash equivalents refer to short-term, highly liquid investments that can be readily
converted to cash and that are subject to an insignificant risk of changes in value.
(IX) Foreign currency translation
1. Translation of foreign currency business
When a foreign currency transaction is initially recognized, it shall be converted into RMB
amount at the spot rate on the date of transaction. On the balance sheet date, foreign currency
monetary items shall be converted at the spot exchange rate on the balance sheet date. The exchange
difference due to different exchange rates shall be recorded into current profit and loss, except for
the exchange difference of principal and interest of foreign currency special borrowings related to
the purchase and construction of assets eligible for capitalization. Foreign currency non-monetary
items measured at historical cost shall still be converted at the spot exchange rate on the date of
transaction without changing the RMB amount; Foreign currency non-monetary items measured at
fair value shall be converted at the spot exchange rate on the date of determination of fair value, and
the difference shall be included in current profits and losses 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) 17 financial liabilities at fair value through profit or loss; (2) financial liabilities that arise when a
- 17 -
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 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.
- 18 -
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 Nanjing Putian Telecommunications Co.,
Ltd. 2021 Annual Report 136 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.
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
- 19 -
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;
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
- 20 -
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 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 Nanjing Putian Telecommunications Co., Ltd. 2021 Annual
Report 138 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
- 21 -
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.
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 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
- 22 -
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
Basis for
Method for measuring expected credit
Items determination of
loss
portfolio
Other receivables – Portfolio grouped with
consolidated related parties Based on historical credit loss
experience, the current situation and the
Other receivables – Portfolio grouped with
Nature of forecast of future economic conditions,
deposit receivables
receivables calculate expected credit loss through
Other receivables – Portfolio grouped with
exposure at default and 12-month or
export tax rebate
lifetime expected credit loss rate.
Other receivables – Other portfolio
(3) Accounts receivable and contract assets with expected credit losses measured on a collective
basis
- 23 -
1) Specific portfolios and method for measuring expected credit loss
Items Basis for Method for measuring expected credit loss
determination of
portfolio
Bank acceptance receivable Based on historical credit loss experience, the current
situation and the forecast of future economic
Type of notes conditions, calculate expected credit loss through
Trade acceptance receivable exposure at default and lifetime expected credit loss
rate.
Based on historical credit loss experience, the current
Accounts receivable –Portfolio Consolidated related situation and the forecast of future economic
grouped with consolidated conditions, prepare the comparison table of overdue
parties
related parties ages and 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 future economic
Accounts receivable – Portfolio Aging conditions, calculate expected credit loss through
Aging
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,
- 24 -
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 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 assets and contract liabilities
1. Contract assets
The Company presents as a contractual asset the right to receive consideration for goods or
services transferred to the Customer, subject to factors other than the passage of time. Provision for
impairment of contracted assets shall be made according to the expected credit loss method of
financial instruments. For contract assets that do not contain a material financing component, the
Company adopts a simplified method to measure loss provisions. For contract assets that contain
- 25 -
significant financing components, the Company measures loss provisions in accordance with the
general method.
In case of impairment loss on contract assets, "asset impairment loss" shall be debited
according to the amount to be written down, and the impairment provision for contract assets shall
be credited; The reverse entry is made when the asset impairment provision has been transferred
back.
2. Contract liabilities
Obligations of the Company to transfer goods or services to the Customer for consideration
received or receivable from the customer shall be listed as contractual liabilities.
The Company presents contractual assets and contractual liabilities under the same contract on
a net basis.
(XIII) Long-term equity investments
1. Initial investment cost determination
For the long-term equity investment obtained from the enterprise merger, if the enterprise
merger is under the same control, the initial investment cost of the long-term equity investment shall
be taken as the share of the owner's equity of the merged party in the book value of the final
controlling party's consolidated financial statements on the merger date; In the case of enterprise
merger not under the same control, the initial investment cost of long-term equity investment shall
be taken as the merger cost determined on the purchase date; For long-term equity investment
obtained by cash payment, the initial investment cost is the actual purchase price paid; For the long-
term equity investment obtained by issuing equity securities, the initial investment cost shall be the
fair value of the equity securities issued; The initial cost of long-term equity investment obtained
through debt restructuring shall be determined in accordance with the relevant provisions of
Accounting Standards for Enterprises “CASBE 12 – Debt Restructuring”; For long-term equity
investment obtained by exchange of non-monetary assets, the initial investment cost shall be
determined in accordance with relevant provisions of Accounting Standards for Business Enterprises
“CASBE 7 – Non-cash Assets Exchange”.
2. Subsequent measurement and recognition method of profit or loss
For long-term equity investments with control relationship, it is accounted for with cost method;
- 26 -
for long-term equity investments with joint control or significant influence relationship, it is
accounted for with equity method. The company for equity investment consortium, one part of
through risk investment institutions, mutual funds, trust companies or similar subject, including cast
the insurance fund, indirect holding, whether the above subject has a significant influence on this
part of the investment, the company in accordance with the accounting standards for enterprises
“CASBE 22 – Financial Instruments: Recognition and Measurement”, and the rest of the equity
method accounting.
3. Determine the basis of joint control and significant influence on the invested entity
Of the invested entity has joint control, refers to an arrangement returns have a significant
impact on activity must go through the participants agreed to share control decisions, including the
sale and purchase of goods or services, financial assets management, purchase and disposal of the
assets, research and development activities, and financing activities, etc.; Having a significant
influence on the invested entity refers to having a significant influence when holding more than 20%
to 50% of the voting capital of the invested entity. Or, although less than 20%, has a significant
impact if one of the following conditions is met: representation on the board of directors or a similar
authority of the invested entity; To participate in the policy making process of the investee;
Dispatching management personnel to the invested units; The invested entity relies on the
technology or technical data of the investment company; Having important transactions with the
invested units.
(XIV) Investment property
Investment property includes land use right of leased-out property and buildings that have been
leased out. 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.
(XV) 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
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benefits associated with the assets will flow to the Company and the cost of the assets can be
measured reliably.
2.Depreciation method of different categories of fixed assets
The company's fixed assets are mainly divided into: buildings and structures, machinery,
electronic equipment, transport facilities, etc. The depreciation method adopts the average life
method. The service life and estimated net salvage value of fixed assets shall be determined
according to the nature and usage of various types of fixed assets. At the end of the year, the service
life, estimated net salvage value and depreciation method of the fixed assets shall be rechecked. If
there is any difference from the original estimate, corresponding adjustment shall be made. In
addition to the fixed assets that have been fully depreciated but are still in use and the land that is
separately priced and recorded, the Company will calculate and depreciate all the fixed assets.
Estimated residual value Annual depreciation rate
Categories Useful life (years)
proportion (%) (%)
Buildings and structures 15-35 3.00 2.77-6.47
Machinery 10-15 3.00 6.47-9.70
Electronic equipment 4-11 3.00 8.82-24.25
Transport facilities 6-8 3.00 12.13-16.17
Other equipment 4-11 3.00 8.82-24.25
(XVI) 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.
(XVII) Intangible assets
1. The valuation method of intangible assets
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The Company's intangible assets are initially measured at cost. The purchased intangible assets
shall be regarded as the actual cost according to the actual price paid and related expenses. The
actual cost of intangible assets invested by investors shall be determined according to the value
stipulated in the investment contract or agreement, but if the value stipulated in the contract or
agreement is unfair, the actual cost shall be determined according to the fair value. For self-
developed intangible assets, the cost shall be the total amount of expenses incurred before reaching
the intended use.
The Company's subsequent measurement methods for intangible assets are as follows:
Intangible assets with limited service life shall be amortized by the straight-line method, and the
service life and amortization method of intangible assets shall be rechecked at the end of the year. If
there is any difference from the original estimate, corresponding adjustment shall be made;
Intangible assets with uncertain service life are not amortized, but at the end of the year, the service
life shall be rechecked. When there is conclusive evidence that the service life is limited, the service
life shall be estimated and amortized according to the straight-line method.
Intangible assets with limited useful life are amortized as follows:
Items Amortization period (years) Amortization method
Software 3-10 straight-line method
patent right and non-patented
5-10 straight-line method
technology
land use right 40-50 straight-line method
2. The judgment basis of uncertain service life
The Company will not be able to foresee the period of time that the asset will bring economic
benefits to the Company, or the intangible assets with uncertain service life are identified as
intangible assets with uncertain service life. The judgment basis of uncertain service life is: it comes
from contractual rights or other legal rights, but the contract or legal provisions do not specify the
service life; Based on the industry situation or relevant experts' arguments, it is still impossible to
judge the period when intangible assets bring economic benefits to the company.
At the end of each year, the service life of intangible assets with uncertain service life is
reviewed, mainly in a bottom-up way. The departments related to the use of intangible assets
conduct basic review to evaluate whether the judgment basis of uncertain service life has changed.
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3. Specific criteria for research and development stages of internal research and development
projects, as well as specific criteria for development stage expenditures to meet the capitalization
conditions
Expenditure in the research phase of internal research and development projects shall be
recorded into current profits and losses when incurred; The expenditure in the development stage
shall be transferred to the accounting of intangible assets if it meets the conditions of being
recognized as intangible assets.
(XVIII) Impairment of part of long-term assets
If long-term equity investment, investment real estate measured by the cost model, fixed assets,
intangible assets of construction in progress and other long-term assets show signs of impairment on
the balance sheet date, the impairment test shall be conducted. If the result of the impairment test
shows that the recoverable amount of the asset is lower than its carrying value, the impairment
reserve shall be calculated and booked into the impairment loss according to the difference.
The recoverable amount is the higher between the net fair value of the asset less the disposal
charge and the present value of the expected future cash flows of the asset. If it is difficult to
estimate the recoverable amount of a single asset, the recoverable amount of the asset group shall be
determined based on the asset group to which the asset belongs. An asset group is the smallest set of
assets that can independently generate cash inflows.
Goodwill shown separately in the financial statements, regardless of whether there is evidence
of impairment, shall be tested for impairment at least annually. In the impairment test, the carrying
value of goodwill is apportion to the group of assets or combination of asset groups expected to
benefit from the synergies of the business combination. If the test results show that the recoverable
amount of the asset group or the asset group combination containing the apportion of goodwill is
lower than its carrying value, the corresponding impairment loss shall be recognized. The amount of
impairment loss shall first offset the book value of goodwill apportion to the asset group or asset
group combination, and then offset the book value of other assets in proportion to the proportion of
the book value of assets other than goodwill in the asset group or asset group combination.
Once the above-mentioned asset impairment loss is recognized, the part whose value can be
recovered shall not be transferred back in the following period.
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(XIX) 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.
(XX) Employee benefits
Employee benefits refers to various forms of remuneration or compensation provided by the
Company for obtaining services provided by employees or for terminating labor relations. Employee
benefits include short-term employee benefits, post-employment benefits, termination benefits and
other long-term employee benefits.
1. Short-term employee benefits
During the accounting period when employees provide services for the company, the actual
short-term compensation is recognized as liabilities and booked into the current profits and losses,
except for those required or allowed to be booked into the cost of assets by the accounting standards
for enterprises. The employee welfare expense incurred by the Company shall be included in the
current profit and loss or the cost of relevant assets according to the actual amount when it is actually
incurred. If the employee welfare fee is non-monetary welfare, it shall be measured at fair value. The
company for the medical treatment insurance premium of worker pay, inductrial injury insurance,
birth insurance premium of social insurance premiums and housing accumulation fund, and
according to the rules extraction of the trade union and employee education funds and provide
services in the workers of the accounting period, according to the provisions stipulated in the basic
and provision ratio calculate and determine the corresponding compensation amount, and confirm
corresponding liabilities, Include current profit or loss or related asset cost.
2. Post-employment benefits
During the accounting period when employees provide services, the payable amount calculated
according to the set depository plan shall be recognized as liabilities and recorded into the current
profit and loss or the cost of relevant assets. According to the formula determined by the expected
cumulative benefit unit method, the welfare obligation arising from the set benefit plan shall be
attributed to the period of service provided by the employee, and shall be included in the current
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profit and loss or the cost of relevant assets.
3. Termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability for
termination benefits, with a corresponding charge to profit or loss at the earlier of the following
dates: a. when the Company cannot unilaterally withdraw the offer of termination benefits because
of an employment termination plan or a curtailment proposal; or b. when the Company recognizes
cost or expenses related to a restructuring that involves the payment of termination benefits.
4. Other long-term employee benefits
Other long-term employee benefits provided by the company to the employees that meet the
conditions for setting up an escrow plan shall be dealt with in accordance with the provisions on
setting up an escrow plan; In addition, identify and measure other long-term employee benefit net
liabilities or net assets according to the relevant provisions of the defined benefit plan.
(XXI) Provisions
An obligation related to a contingent event is recognized as a projected liability when it is a
current obligation undertaken by the Company and the performance of the obligation is likely to
result in an outflow of economic benefits and the amount of the obligation can be measured reliably.
The Company shall make initial measurement according to the best estimate of the expenditure
required to fulfill the relevant current obligations. If there exists a continuous range of expenditure
required and various outcomes within the range are equally likely to occur, the best estimate shall be
determined as the intermediate value within the range; If more than one project is involved, calculate
the best estimate based on the various possible outcomes and the associated probabilities.
On the balance sheet date, the book value of the projected liabilities shall be reviewed. If there
is conclusive evidence that the book value does not truly reflect the current best estimate, the book
value shall be adjusted according to the current best estimate.
(XXII) 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.
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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 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
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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, 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.
(XXIII) Contract cost
The contract cost of the Company includes the incremental cost incurred to obtain the contract
and the contract performance cost. Incremental costs incurred to acquire a contract (" contract
acquisition costs ") are costs that would not have been incurred otherwise. If the cost is expected to
be recovered, the Company will recognize it as a contract acquisition cost as an asset.
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The cost incurred by the Company to perform the contract, which does not fall within the scope
of accounting standards for enterprises such as inventory and meets the following conditions at the
same time, shall be recognized as an asset as the contract performance cost:
1. The costs are directly related to a current or expected contract and include direct labor, direct
materials, manufacturing expenses (or similar expenses), costs expressly borne by the User and other
costs incurred solely as a result of the contract;
2. The cost increases the Company's resources for future performance obligations;
3.This cost is expected to be recovered.
The Company will recognize the contract performance costs as assets, the amortization period
of the initial recognition does not exceed one year or a normal business cycle, in the balance sheet
into the "inventory" item; If the amortization period is more than one year or one normal operating
cycle at the time of initial recognition, "other non-current assets" will be included in the balance
sheet.
The Company shall record the acquired costs of contracts recognized as assets into the "other
current assets" item in the balance sheet if the amortization period at the initial recognition does not
exceed one year or one normal operating cycle. If the amortization period is more than one year or
one normal operating cycle at the time of initial recognition, "other non-current assets" will be
included in the balance sheet.
The Company amortizes the assets recognized for contract acquisition cost and contract
performance cost (hereinafter referred to as "assets related to contract cost") on the same basis as the
commodity revenue recognized for the assets and records them into the current profit and loss. If the
amortization period of the asset formed by the incremental cost of acquiring the contract does not
exceed one year, it shall be included in the current profit and loss at the time of occurrence.
If the carrying value of the asset related to the contract cost is higher than the difference
between the following two items, the Company will calculate and withdraw the excess part of the
impairment reserve and recognize it as the asset impairment loss:
1. The remaining consideration expected to be obtained from the transfer of commodities
related to the asset;
2.Estimate the cost to be incurred for the transfer of the related goods.
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If the difference between the foregoing two items is higher than the carrying value of the asset
due to the change of the factors of impairment in the previous period, it shall revert to the original
provision for asset impairment and be included in the current profit and loss, provided that the
carrying value of the asset after the reversal shall not exceed the carrying value of the asset on the
date of reversal assuming no provision for impairment.
(XXIV) Government grants
1. Types of government subsidies and accounting treatment
Government subsidy refers to the monetary assets or non-monetary assets that the Company
obtains free of charge from the government (but does not include the capital invested by the
government as the owner). If the government subsidy is a monetary asset, it shall be measured
according to the amount received or receivable. Where government subsidies are non-monetary
assets, they shall be measured at fair value; If the fair value cannot be obtained reliably, it shall be
measured according to the nominal amount.
Government subsidies related to daily activities shall be included in other income according to
the economic business essence. Government subsidies unrelated to daily activities shall be included
in non-operating income.
Government documents clearly stipulate that government subsidies for the purchase and
construction of long-term assets or the formation of long-term assets by other means shall be
recognized as government subsidies related to assets. If the government documents do not specify
the object of subsidy, and long-term assets can be formed, the part of government subsidy
corresponding to the value of the asset shall be regarded as the government subsidy related to the
asset, and the rest shall be regarded as the government subsidy related to the income. It is difficult to
distinguish between government subsidies as a whole as government subsidies related to benefits.
Government subsidies related to assets are recognized as deferred income. The amount recognized as
deferred income shall be recorded into current profits and losses in a reasonable and systematic
manner during the useful life of the relevant asset.
Government subsidies other than those related to assets shall be recognized as government
subsidies related to earnings. If the government subsidies related to earnings are used to compensate
the relevant expenses or losses of the enterprise in the subsequent period, they shall be recognized as
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deferred earnings and recorded into the current profit and loss during the period when the relevant
expenses are recognized. If it is used to compensate the relevant expenses or losses already incurred
by the enterprise, it shall be directly recorded into the current profit and loss.
If the company obtains a policy preferential loan discount interest, and the finance allocates the
discount interest funds to the lending bank, and the lending bank provides the loan to the Company
at the policy preferential interest rate, the actual amount of the loan is taken as the recorded value of
the loan, and the relevant borrowing costs are calculated according to the loan principal and the
policy preferential interest rate; If the finance directly appropriates the discount interest funds to the
Company, the Company will offset the corresponding discount interest against the relevant
borrowing costs.
2. Confirmation of government subsidies
Government grants are recognized when the conditions attached to government grants are met
and can be received. The government subsidy measured according to the amount receivable shall be
confirmed at the end of the period when there is solid evidence that it can meet the relevant
conditions stipulated in the financial support policy and is expected to receive the financial support
funds. Government subsidies other than those measured according to the amount receivable shall be
recognized when the amount of subsidies is actually received.
(XXV) 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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3.Recognize deferred tax liabilities for taxable temporary differences related to investments in
subsidiaries and associates, unless the Company has control over the timing of the reversal of the
temporary differences and it is likely that the reversal will not occur in the foreseeable future. For
deductible temporary differences related to investments in subsidiaries and associates, deferred tax
assets are recognized when such temporary differences are likely to be reversed in the foreseeable
future and the amount of taxable income used to offset the deductible temporary differences is likely
to be obtained in the future.
(XXVI) Leases
1. Accounting treatment of leased assets
On the commencement date of the lease term, the Company recognizes the right to use assets
and lease liabilities for leases other than short-term leases and leases of low-value assets, and
recognizes depreciation expense and interest expense, respectively, during the lease term.
The Company uses the straight-line method for each period of the lease term to charge lease
payments for short-term leases and leases for low-value assets to current expenses.
（1）Right-of-use asset
The right-of-use asset is initially measured at cost, which includes: 1) the initial measurement
amount of the lease liability; 2) the lease payments made on or before the start date of the lease term,
if there is a lease incentive, deduct the amount of the lease incentive already enjoyed ; 3) Initial
direct costs incurred by the lessee; 4) The lessee is expected to incur costs to dismantle and remove
the leased asset, restore the site where the leased asset is located, or restore the leased asset to the
state agreed upon in the lease terms
The company depreciates right-of-use assets on a straight-line basis. If it can be reasonably
determined that the ownership of the leased asset will be obtained at the expiration of the lease term,
the company shall accrue depreciation over the remaining useful life of the leased asset. If it cannot
be reasonably determined that the ownership of the leased asset can be obtained when the lease term
expires, the company shall accrue depreciation within the shorter of the lease term and the remaining
useful life of the leased asset.
In accordance with the Accounting Standards for Enterprises “ CASBE 8 - Asset Impairment”,
the company determines whether the assets used for use have been impaired and carries out
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accounting treatment.
（2）Lease liability
The lease liability is initially measured at the present value of the outstanding lease payments
on the commencement date of the lease term. The lease payment amount includes: 1) the fixed
payment amount (including the substantial fixed payment amount). If there is a lease incentive, the
lease incentive related amount shall be deducted; 2) variable lease payments depending on the index
or ratio; 3) the amount expected to be paid according to the security residual value provided by the
lessee; 4) the exercise price of the purchase option, the premise is that the lessee is reasonable to
determine the exercise of the option; 5) Payment for exercising the option to terminate the lease,
provided that the lease term reflects that the lessee will exercise the option to terminate the lease;
The Company uses the lease embedded interest rate as the discount rate; If it is impossible to
reasonably determine the interest rate embedded in the lease, the incremental borrowing rate of the
Company shall be used as the discount rate. The Company calculates the interest expense of the
lease liability in each period of the lease term at a fixed periodic interest rate and records it as a
financial expense. The cyclical rate refers to the discount rate or the revised discount rate adopted by
the Company.
Variable lease payments that are not included in the measurement of lease liabilities are
recorded in current profit and loss when they are actually incurred.
If the Company changes the evaluation result of the option to renew the lease, terminate the
lease or purchase the lease, it will re-measure the lease liability according to the present value
calculated by the changed lease payment amount and the revised discount rate, and adjust the book
value of the right asset accordingly. In the event of a change in the actual lease payment, the
estimated payable amount of the guarantee residual or the variable lease payment depending on the
index or ratio, the lease liability shall be re-measured according to the present value calculated by
the changed lease payment and the original discount rate, and the carrying value of the right asset
shall be adjusted accordingly.
2. Accounting treatment of leased assets
（1）Operating lease accounting treatment
In each period of the lease term, the Company adopts the straight-line method to recognize the
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lease receipts from the operating leases as rental income. The Company capitalizes the initial direct
expenses incurred in connection with the operating lease and stages them into current earnings
during the lease term on the same basis of recognition as rental income.
（2）Accounting treatment of finance lease
On the lease commencement date, the Company recognizes the difference between the sum of
the financial lease receivable, the unguaranteed residual value and its present value as unrealized
financing income, and recognizes it as lease income in each period in which the rent is received in
the future. The initial direct expenses incurred by the Company in connection with the leasing
transaction are included in the initial recorded value of the finance lease receivable.
(XXVII) Held for Sale and discontinued operations
The Company classifies non-current assets or disposal groups that simultaneously meet the
following conditions into the holding for Sale category: first, in accordance with the practice of
selling such assets or disposal groups in similar transactions, they can be sold immediately under
current conditions; Second, a sale is highly likely to occur, that is, the company has made a decision
on a sale plan and obtained firm purchase commitments, and the sale is expected to be completed
within a year. If the relevant regulations require the approval of the relevant authority or regulatory
department before the enterprise can be sold, the approval shall have been obtained.
Initial measurement or on the balance sheet date to measure hold illiquid assets for sale or
disposal of the group, its book value is higher than the fair value minus the net amount after sale cost,
book value shall be written down to fair value minus the net amount after selling fees, the amount of
write-down shall be recognized as asset impairment losses recorded into the profits and losses of the
current, the provision for assets impairment provision holds for sale at the same time.
Non-current assets held for sale in the balance sheet or assets in the disposal group held for sale
are listed as assets held for sale, and liabilities in the disposal group held for sale are listed as
liabilities held for sale.
A discontinued operation is a separately distinguishable component that meets one of the
following conditions and has been disposed of by the Company or is classified by the Company as
being held for sale:
1.The component represents a separate principal business or a separate principal area of
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operation;
2.The component is part of an associated plan to dispose of a separate principal business or a
separate principal territory of operations;
3.This component is a subsidiary acquired exclusively for resale.
(XXVIII) Other significant accounting policies and estimates
Including but not limited to: Termination of business confirmation standard, the accounting
methods, adopting the hedging accounting basis and accounting methods, hedging effectiveness
evaluation methods, the company's risk management strategy and how to apply the strategies to
manage risk, accounting methods related to repurchase shares, asset securitization business
accounting methods and so on.
Explanation of major changes in accounting policies and accounting estimates:
There are no changes in accounting policies and estimates during the current period;
IV. Taxes
(I) Main taxes and tax rates
Taxes Tax bases Tax rates
The output tax shall be calculated on the basis of the sales of goods and
Value-added tax taxable service income calculated in accordance with the provisions of
13%、6%、5%、3%
(VAT) the tax law. After deducting the input tax allowed to be deducted in the
current period, the balance shall be the VAT payable.
For housing property levied on the basis of price, housing property tax
Housing property is levied at the rate of 1.2% of the balance after deducting 30% of the
1.2%、12%
tax cost; for 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
Turnover tax payable 3%
surcharge
Local education
Turnover tax payable 2%
surcharge
Enterprise
Taxable income 15%、16.5%、25%
income tax
Taxpayers Income tax rate
The Company 25%
Nanjing PutianTelege Intelligent Building Co., Ltd 15%
Nanjing PutianDatang Information Electronic Co.,
15%
Ltd.
Putian Telecommunications (H.K.) Co., Ltd. 16.5%
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Taxpayers Income tax rate
Taxpayers other than the above-mentioned 25%
(II) Tax preferential policies
1. Nanjing PutianTelege Intelligent Building Co., Ltd obtained high-tech enterprise certificate
in November, 2021, valid for 3 years. From 2021 to 2023, the enterprise income tax shall be paid at
the reduced tax rate of 15%.
2. The subsidiary, Nanjing PutianDatang Information Electronic Co., Ltd., obtained high-tech
enterprise certificate in November, 2021, valid for 3 years. From 2021 to 2023, the enterprise income
tax shall be paid at the reduced tax rate of 15%.
3. The seventh branch of the subsidiary Nanjing communication equipment factory is a social
welfare enterprise, which complies with the provisions of GuoShuiFa [2007] No. 067 and enjoys the
preferential tax policies of immediate collection and refund of value-added tax and plus deduction of
wages of the disabled.
4. The subsidiaries, Nanjing PutianDatang Information Electronic Co., Ltd. awere certified as
software enterprises, and some of the software products produced by Nanjing South
Telecommunications Company Limited and Nanjing Putian Network Co., Ltd. are entitled to enjoy
the preferential tax policy of VAT refund upon collection in accordance with the provisions of
CaiShui [2011] No.100.
V. Notes to items of consolidated financial statements
Remarks: “Opening balance” in the report refers to the data on January 1, 2022, “Closing balance”
refers to the data on January 1, 2022, “Current period cumulative” refers to the data on January 1,
2022 to June 30, 2022, “Preceding period comparative” refers to the data on January 1, 2021 to June
30, 2021.
1. Cash and bank balances
(1) Details
Items Closing balance Opening balance
Cash on hand 343.39 343.39
Cash in bank 123,632,030.80 180,458,727.47
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Items Closing balance Opening balance
Other cash and bank balances 7,817,663.53 8,206,459.51
Total 131,450,037.72 188,665,530.37
Including: Total amount deposited
abroad
(2) Centralized management of funds
1) The company implements centralized and unified management of the funds of the parent
company and member units through the internal financial company.
2) Amounts and Circumstances Listed as " monetary funds "
Items Closing balance Note
Funds listed as "monetary funds" and deposited in
8,275,421.66
the finance company
(3) Details of other cash and bank balances
Items Closing balance Opening balance
Bank acceptance deposit
deposit for L/G 7,761,951.05 8,205,628.07
Others 55,712.48 831.44
Total 7,817,663.53 8,206,459.51
2. Held-for-trading financial assets
Items Closing balance Opening balance
1. Financial assets classified as
financial assets measured at fair value
20,000,000.00
and whose changes are included in
current profits and losses
Including: Debt Instrument Investment
Equity instrument investment
Others 20,000,000.00
Total 20,000,000.00
3. Notes receivable
Items Closing balance Opening balance
Bank acceptance
Trade acceptance 9,318,843.17 14,424,413.04
Less: Provision for bad debts 465,942.16 721,220.66
Total 8,852,901.01 13,703,192.38
(1) Details
- 43 -
1) Details on categories
Closing balance
Categories Book balance Provision for bad debts
Carrying amount
Provision
Amount % to total Amount
proportion (%)
Receivables with provision for
bad debts made on a collective 9,318,843.17 100.00 465,942.16 5.00 8,852,901.01
basis
Including: Bank acceptance
Trade acceptance 9,318,843.17 100.00 465,942.16 5.00 8,852,901.01
Total 9,318,843.17 100.00 465,942.16 5.00 8,852,901.01
(Continued)
Opening balance
Categories Book balance Provision for bad debts
Carrying amount
Provision
Amount % to total Amount
proportion (%)
Receivables with provision for
bad debts made on a collective 14,424,413.04 100.00 721,220.66 5.00 13,703,192.38
basis
Including: Bank acceptance
Trade acceptance 14,424,413.04 100.00 721,220.66 5.00 13,703,192.38
Total 14,424,413.04 100.00 721,220.66 5.00 13,703,192.38
2) Notes receivable with bad debt provision in combination
Closing balance
Items
Book balance Provision for bad debts Provision proportion (%)
bank acceptance
combination
Trade acceptance
9,318,843.17 465,942.16 5.00
combination
Total 9,318,843.17 465,942.16 5.00
(2) Changes in provision for bad debts
Increase Decrease
Opening
Items Closing balance
balance Write-
Accrual Recovery Others Reversal Others
off
Bank acceptance
Trade acceptance 721,220.66 -255,278.50 465,942.16
- 44 -
Increase Decrease
Opening
Items Closing balance
balance Write-
Accrual Recovery Others Reversal Others
off
Total 721,220.66 -255,278.50 465,942.16
(3) The company's pledged/converted receivables/endorsed or discounted notes receivable that
are outstanding at the balance sheet date at the end of the period
The confirmation The amount of
Accounts
amount is confirmation is not
Items Has pledged receivable have
terminated at the terminated at the end of
been transferred
end of the period the period
Bank acceptance 28,273,659.99
Trade acceptance 4,954,487.77
Total 33,228,147.76
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.
4. Accounts receivable
(1) Disclosure according to aging
Ages Closing balance Opening balance
Within 1 year 249,010,768.26 174,417,246.90
1 to 2 years 61,413,580.25 67,930,584.61
2 to 3 years 42,717,695.97 58,467,779.79
3 to 4 years 62,800,260.76 85,170,507.83
4 to 5 years 57,914,563.11 32,639,651.27
Over 5 years 114,195,805.17 112,796,028.54
Less: Allowance for doubtful
194,836,769.35 196,835,247.01
accounts
Total 393,215,904.17 334,586,551.93
(2) According to the bad debt calculation and withdrawal method classification disclosure
Closing balance
Book balance Provision for bad debts
Categories
Provision
Amount % to total Amount proportion
(%)
- 45 -
Closing balance
Book balance Provision for bad debts
Categories
Provision
Amount % to total Amount proportion
(%)
Receivables with provision made on an
78,997,376.62 13.43 78,997,376.62 100.00
individual basis
Receivables with provision made on a
509,055,296.90 86.57 115,839,392.73 22.76
collective basis
Total 588,052,673.52 100.00 194,836,769.35 33.13
Opening balance
Book balance Provision for bad debts
Categories
Provision
Amount % to total Amount proportion
(%)
Receivables with provision made on an
78,379,779.60 14.75 78,379,779.60 100.00
individual basis
Receivables with provision made on a
453,042,019.34 85.25 118,455,467.41 26.15
collective basis
Total 531,421,798.94 100.00 196,835,247.01 37.04
1）Accounts receivable with provision made on an individual basis
Provision
Book Provision for
Debtors Ages proportion Reasons
balance bad debts
(%)
Dongpo Xi Laos Co., Unable
19,708,086.54 19,708,086.54 4 to 5 years 100.00
Ltd. to recover
Unable to
Mr. Xu 17,591,683.74 17,591,683.74 Over 5 years 100.00
recover
China Tower Unable to
13,819,926.92 13,819,926.92 Over 5 years 100.00
Corporation Ltd. recover
2-3years 539,740.00；
Jilin Lidi Information Unable to
5,999,750.00 5,999,750.00 3-4years 4466,240.00； 100.00
Technology Co., Ltd recover
4-5years 993,770.00
China Railway
4-5years 3,114,600.94；
Communication Signal Unable to
5,241,400.50 5,241,400.50 Over 5 years 100.00
Shanghai Engineering recover
Group Co., Ltd 2,126,799.56
Unable to
Other 16,636,528.92 16,636,528.92 2-5 years 100.00
recover
Total 78,997,376.62 78,997,376.62
2）Accounts receivable with provision made on an collective basis
①Combination 1: Aging combination
Closing balance Opening balance
Ages Provision Provision
Provision for Provision for
Book balance proportion Book balance proportion
bad debts bad debts
(%) (%)
Within 1
249,010,768.26 1.00 2,489,940.87 174,417,246.90 1.00 1,744,172.48
year
1 to 2 60,967,653.85 5.00 3,048,382.69 64,013,020.08 5.00 3,200,651.00
- 46 -
Closing balance Opening balance
Ages Provision Provision
Provision for Provision for
Book balance proportion Book balance proportion
bad debts bad debts
(%) (%)
years
2 to 3
37,012,641.09 10.00 3,701,264.11 56,234,363.04 10.00 5,623,436.30
years
3 to 4
57,053,501.02 30.00 17,116,050.31 54,651,481.02 30.00 16,395,444.32
years
4 to 5
31,053,955.86 50.00 15,526,977.93 24,468,289.98 50.00 12,234,144.99
years
Over 5
73,956,776.82 100.00 73,956,776.82 79,257,618.32 100.00 79,257,618.32
years
Total 509,055,296.90 115,839,392.73 453,042,019.34 118,455,467.41
(3) Bad debt provision
Change in current period
Opening Cancel Closing
Categories To withdraw Other
balance Accrual after balance
or turn back changes
verification
Receivables
with
provision
78,379,779.60 1,094,570.18 476,973.16 78,997,376.62
made on an
individual
basis
Receivables
with
provision
118,455,467.41 2,297,977.96 4,914,052.64 115,839,392.73
made on a
collective
basis
Total 196,835,247.01 3,392,548.14 476,973.16 4,914,052.64 194,836,769.35
(4) Accounts receivable actually written off in the current period
The amount of accounts receivable actually written off in this period is RMB 4,914,052.64.
(5) Details of the top 5 debtors with largest balances
Proportion to the total
Provision for
Debtors Book balance balance of accounts
bad debts
receivable (%)
Dongpo Xi Laos Co., Ltd. 19,708,086.54 3.35 19,708,086.54
Mr. Xu 17,591,683.74 2.99 17,591,683.74
Hegang branch of China Tower Co., Ltd 13,819,926.92 2.35 13,819,926.92
Shanghai Zhouluo Information Technology
11,401,797.72 1.94 114,017.98
Co., LTD
Shanghai Zicheng Information Technology
10,968,853.78 1.87 109,688.54
Development Co., LTD
Total 73,490,348.70 12.50 51,343,403.72
5. Receivables financing
- 47 -
Items Closing balance Opening balance
Notes receivable(Bank
16,350,913.52 40,852,223.88
acceptance)
6. Advances paid
(1) Age analysis
Closing balance Opening balance
Ages
Amount % to total Amount % to total
Within 1 year 18,403,300.08 69.88 18,003,886.43 79.50
1-2 years 3,811,347.66 14.47 804,044.95 3.55
2-3 years 759,733.98 2.88 1,446,243.44 6.39
Over 3 years 3,362,780.11 12.77 2,391,641.84 10.56
Total 26,337,161.83 100.00 22,645,816.66 100.00
(2) Details of the top 5 debtors with largest balances
Proportion to the total balance
Debtors Closing balance
of advances paid (%)
Huawei Technology Co., Ltd 4,072,729.45 15.46
QSTECH Co., Ltd 2,596,500.00 9.86
Jiangsu Shuntian International Group Machiner
1,425,683.28 5.41
y Import and Export Co., Ltd
GuizhouTianguangShian Technology Co., Ltd 750,000.00 2.85
Zhejiang Narada Power Source Co.,Ltd. 580,000.00 2.20
Total 9,424,912.73 35.78
7. Other receivable
Items Closing balance Opening balance
Interest receivable
Dividends receivable
Other receivables 55,553,203.47 57,562,392.95
Less: Allowance for doubtful
41,893,042.88 40,934,197.78
accounts
Total 13,660,160.59 16,628,195.17
（1）Other receivables categorized by nature
Categories Closing balance Opening balance
Provisional payment receivable 33,438,013.07 40,950,602.33
Deposit 15,715,712.29 12,054,412.80
Travel allowance 804,416.99 905,189.12
Other 5,595,061.12 3,652,188.70
- 48 -
Categories Closing balance Opening balance
Less: Allowance for doubtful
41,893,042.88 40,934,197.78
accounts
Total 13,660,160.59 16,628,195.17
（2）Age analysis
Ages Closing balance Opening balance
Within 1 year 7,222,466.40 7,008,502.69
1 to 2 years 2,507,508.77 2,850,719.97
2 to 3 years 4,276,955.97 5,231,249.14
3 to 4 years 1,575,812.53 4,606,299.15
4 to 5 years 4,538,837.99 3,549,119.02
Over 5 years 35,431,621.81 34,316,502.98
Less: Allowance for doubtful
41,893,042.88 40,934,197.78
accounts
Total 13,660,160.59 16,628,195.17
（3）Changes in provision for bad debts
Phase I Phase II Phase III
Items 12-month Lifetime expected credit Total
Lifetime expected credit
expected credit losses (credit not
losses (credit impaired)
losses impaired)
Opening balance 648,426.35 40,285,771.43 40,934,197.78
Opening balance in
648,426.35 40,285,771.43 40,934,197.78
the current period
--Transferred to
phase II
--Transferred to
phase III
--Reversed to phase
II
--Reversed to phase I
Provision made in
436,320.20 527,159.37 963,479.57
the current period
Provision recovered
in current period
Provision written off
4,634.47 4,634.47
in current period
Other changes
Closing balance 1,084,746.55 40,808,296.33 41,893,042.88
（4）Other receivables for which the provision for bad debts is withdrawn individually at the
end of the period
Proportion of
Debtors Book balance Provision for bad debt Reasons
withdrawal (%)
Beijing Likangpu The other party is
28,912,122.71 28,912,122.71 100.00
Telecommunications bankrupt and unable
- 49 -
Equipment Co.,Ltd. to settle
（5）Bad debt provision
Change in current period
Opening Cancel Closing
Portfolios To withdraw or Other
balance Accrual after balance
turn back changes
verification
Other
40,934,197.78 963,479.57 4,634.47 41,893,042.88
combinations
（6）Other receivables actually written off in the current period
The amount of other receivables actually written off in this period is RMB 4,634.47.
（7）Details of the top 5 debtors with largest balances
Proportion to
Nature of Closing the total balance Provision for
Debtors Ages
receivables balance of other bad debts
receivables (%)
Beijing Likangpu
Temporary
Communication
payment 28,912,122.71 Over 5 years 52.04 28,912,122.71
Equipment Co.,
receivable
Ltd.
1-2 years 307,100.00；
China Potevio Co Security
2,245,100.00 4-5 years 938,000.00； 4.04 1,953,355.00
deposit
mpany Limited Over 5 years 1,000,000.00
Construction
headquarters of Security
1,490,768.10 2-3 years 2.68 74,538.41
Shenzhen Metro deposit
Group Co., Ltd
Beijing PutianKec Temporary
3-4 years 179,184.19；
huang Industry C payment 805,545.63 1.45 805,545.63
receivable Over 5 years 626,361.44
o.,Ltd.
Beijing Lekang
Real Estate
Rent 528,796.29 Within 1 ywar 0.95 26,439.81
Management
Co.,Ltd.
Total 33,982,332.73 61.16 31,772,001.56
8. Inventories
(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 29,376,393.70 9,134,918.13 20,241,475.57 31,234,604.53 9,134,918.13 22,099,686.40
Work in process 9,599,855.21 2,797,339.41 6,802,515.80 13,606,311.30 2,797,339.41 10,808,971.89
Goods on hand 87,686,775.05 39,786,254.55 47,900,520.50 79,928,818.55 40,226,500.64 39,702,317.91
Goods
159,022,834.50 58,758,181.09 100,264,653.41 172,240,715.25 58,758,181.09 113,482,534.16
dispatched
Products on
1,289,862.42 804,691.99 485,170.43 1,242,747.33 804,691.99 438,055.34
consignment for
- 50 -
Closing balance Opening balance
Items Provision for Carrying Provision for Carrying
Book balance Book balance
write-down amount write-down amount
sales
Contract
2,568,835.66 2,568,835.66
performance cost
Total 289,544,556.54 111,281,385.17 178,263,171.37 298,253,196.96 111,721,631.26 186,531,565.70
(2) The increase or decrease of the inventory decline reserve and the impairment reserve of
contract performance cost
Increase Decrease Increase Decrease
Opening Closing
Items Reversal or
balance Accrual Others Others balance
write-off
Raw materials 9,134,918.13 9,134,918.13
Work in process 2,797,339.41 2,797,339.41
Goods on hand 40,226,500.64 9,993.42 450,239.51 39,786,254.55
Goods dispatched 58,758,181.09 58,758,181.09
Products on
804,691.99 804,691.99
consignment for sales
Total 111,721,631.26 9,993.42 450,239.51 111,281,385.17
9. Other current assets
Items Closing balance Opening balance
Input VAT to be credited 4,257,909.13 5,526,501.01
Prepaid income tax 526,493.03 2,236,499.06
Total 4,784,402.16 7,763,000.07
- 51 -
10. Long-term equity investments
Increase/Decrease
Investment Closing
income Adjustment in Cash balance of
Changes Provision Closing
Investees Opening balance Investments Investments recognized other dividend/Profit provision
in other for Others balance
increased decreased under comprehensive declared for for
equity impairment impairment
equity income distribution
method
I. Joint ventures 10,422,193.15 -0.99 10,422,192.16
SEI-Nanjing Potevio Optical
10,422,193.15 -0.99 10,422,192.16
Network Co., Ltd
- 52 -
11. Other equity instrument investments
The reason
Amount
designated as
of other
measurement Other
compreh
The at fair value comprehensiv
The ensive
Closing Opening Dividend cumulat and its e income is
Items income ive
cumulative income
change transferred to
balance balance loss transferre
gains included in retained
d to
other earnings
retained
comprehensiv
earnings
e income
Nanjing
Yuhua
420,915.00 420,915.00
Electroplati
ng Factory
Hangzhou
Honyar
321,038.00 321,038.00
Electrical
Co.,Ltd.
Beijing
Likong
Communica
tion
Equipment
Co., Ltd.
Total 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.
12. Investment property
(1) Investment real estate measured at cost
Items Buildings and structures
I. Original book value
1. Opening balance 18,619,150.97
2. Increase
3. Decrease
4. Closing balance 18,619,150.97
II. Accumulated depreciation and amortization
1. Opening balance 11,764,259.46
2. Increase 344,539.35
(1) Accrual or amortization 344,539.35
3. Decrease
4. Closing balance 12,108,798.81
III. Provision for impairment
IV. Carrying amount
- 53 -
Items Buildings and structures
1. Closing balance 6,510,352.16
2. Opening balance 6,854,891.51
13. Fixed assets
Categories Closing balance Opening balance
Fixed assets 114,942,877.05 118,527,119.27
Liquidation of fixed assets
Less: Impairment provision 725,962.56 725,962.56
Total 114,216,914.49 117,801,156.71
(1) Fixed assets
1）Details
Buildings and Machinery Transport Electronic Other
Items Total
structures equipment facilities equipment equipment
I. Original
book value
1. Opening
152,200,686.89 30,115,555.70 5,415,208.27 1,414,872.09 45,611,587.89 234,757,910.84
balance
2. Increase 494,509.29 145,575.23 61,769.91 123,888.06 6,123.89 831,866.38
(1) Acquisiti
494,509.29 145,575.23 61,769.91 123,888.06 6,123.89 831,866.38
on
3. Decrease 418,803.44 587,726.73 16,195.28 1,022,725.45
(1) Disposal
/Scrappi 418,803.44 587,726.73 16,195.28 1,022,725.45
ng
4. Closing
152,695,196.18 29,842,327.49 4,889,251.45 1,522,564.87 45,617,711.78 234,567,051.77
balance
II.Accumulat
ed
depreciation
1. Opening
50,053,754.10 20,331,298.78 5,007,942.84 6,995.65 40,830,800.20 116,230,791.57
balance
2. Increase 2,780,682.03 773,963.11 55,043.13 518,917.40 252,424.39 4,381,030.06
(1) Acquisiti
2,780,682.03 773,963.11 55,043.13 518,917.40 252,424.39 4,381,030.06
on
3. Decrease 406,239.33 565,498.80 15,908.78 987,646.91
(1) Disposal
/Scrappi 406,239.33 565,498.80 15,908.78 987,646.91
ng
4. Closing
52,834,436.13 20,699,022.56 4,497,487.17 510,004.27 41,083,224.59 119,624,174.72
balance
III.Provision
for
impairment
1. Opening
539,124.00 11,048.35 175,790.21 725,962.56
balance
2. Increase
3. Decrease
- 54 -
Buildings and Machinery Transport Electronic Other
Items Total
structures equipment facilities equipment equipment
4. Closing
539,124.00 11,048.35 175,790.21 725,962.56
balance
IV. Carrying
amount
1. Closing
99,321,636.05 9,143,304.93 391,764.28 1,001,512.25 4,358,696.98 114,216,914.49
balance
2. Opening
101,607,808.79 9,784,256.92 407,265.43 1,396,828.09 4,604,997.48 117,801,156.71
balance
2）Fixed assets temporarily idle
Original book Accumulated Provision for
Items Carrying amount Remarks
value depreciation impairment
Machinery
191,485.00 176,039.10 12,248.35 3,197.55
equipment
Electronic
331,100.00 330,020.00 1,080.00
equipment
Other equipment 370,885.18 184,349.93 175,408.71 11,126.54
Total 893,470.18 690,409.03 187,657.06 15,404.09
3）Fixed assets with certificate of titles being unsettled
Items Carrying amount Reasons for unsettlement
Buildings and structures 35,460,964.00 Unable to handle
14. Construction in progress
Categories Closing balance Opening balance
Construction in progress project 1,182,171.32 292,996.23
Engineering materials
Less: Impairment provision
Total 1,182,171.32 292,996.23
（1）Basic information of construction projects in progress
Closing balance Opening balance
Items Provision for Carrying Provision for Carrying
Book balance Book balance
impairment amount impairment amount
Others 1,182,171.32 1,182,171.32 292,996.23 292,996.23
15. Intangible assets
(1) Details
Items Land use right Software Total
I. Original book value
1. Opening balance 26,656,046.83 11,740,157.40 38,396,204.23
2. Increase
3. Decrease
- 55 -
Items Land use right Software Total
4. Closing balance 26,656,046.83 11,740,157.40 38,396,204.23
II.Accumulated depreciation
1. Opening balance 7,147,103.23 10,140,353.52 17,287,456.75
2. Increase 317,144.71 206,624.71 523,769.42
(1) Acquisition 317,144.71 206,624.71 523,769.42
3. Decrease
4. Closing balance 7,464,247.94 10,346,978.23 17,811,226.17
III.Provision for impairment
4. Closing balance
IV. Carrying amount
1. Closing balance 19,191,798.89 1,393,179.17 20,584,978.06
2. Opening balance 19,508,943.60 1,599,803.88 21,108,747.48
16. Long-term prepayments
Items Opening balance Increase Amortization Other decrease Closing balance
Renovation
4,973,968.20 720,614.36 4,253,353.84
expenditure
17. Deferred tax assets and deferred tax liabilities
(1) Details of unrecognized deferred tax assets
Items Closing balance Opening balance
Deductible temporary difference 349,203,102.12 350,212,296.71
Deductible losses 206,756,188.18 247,021,502.77
Total 555,959,290.30 597,233,799.48
(2) Maturity years of deductible losses of unrecognized deferred tax assets
Maturity years Closing balance Opening balance Remarks
Year 2021 3,321,233.55
Year 2022 6,340,354.15 6,340,354.15
Year 2023 6,027,849.77 6,538,713.94
Year 2024 108,499,154.28 110,600,873.27
Year 2025 3,031,582.45 5,019,673.59
Year 2026 69,795,534.87 115,200,654.27
Year 2029 1,622,476.49
Year 2030 1,188,328.53
Year 2031 10,250,907.64
Total 206,756,188.18 247,021,502.77
- 56 -
18. Short-term borrowings
(1) Details
Borrowing conditions Closing balance Opening balance
Mortgaged borrowings 51,300,000.00 24,000,000.00
Secured borrowings 175,000,000.00 175,000,000.00
Total 226,300,000.00 199,000,000.00
19. Notes payable
Items Closing balance Opening balance
Bank acceptance
Trade acceptance 1,250,000.00 1,251,741.17
Total 1,250,000.00 1,251,741.17
20. Accounts payable
(1) Classification by nature of payment
Items Closing balance Opening balance
Procurement of materials 476,735,856.31 536,734,286.45
Project payment 1,629,456.49 1,629,456.49
Total 478,365,312.80 538,363,742.94
(2) Significant accounts payable with age over one year
Name of creditor Closing balance Reasons for unsettlement
Nanjing Xingping Industrial Co., Ltd 21,139,620.66 Not yet settled
SEI-Nanjing Putian Optical Network Co., Ltd. 20,568,725.66 Not yet settled
China Potevio Company Limited 18,016,137.43 Not yet settled
Jiangsu Lexi Technology Co.,Ltd. 11,459,040.40 Not yet settled
Nanjing Xinyongda Electrical Co.,Ltd. 9,024,387.55 Not yet settled
Xi'an Huasheng Communication Co., Ltd 6,205,219.93 Not yet settled
MENNEKES Industrial Electric(Nanjing)Co.,L
6,073,776.29 Not yet settled
td.
Total 92,486,907.92
21. Contract liabilities
Items Closing balance Opening balance
Payment for goods 19,029,759.47 18,884,024.60
22. Employee benefits payable
- 57 -
(1) Details
Opening Closing
Items Increase Decrease
balance balance
Short-term employee benefits 17,922,220.68 78,860,644.34 78,972,585.67 17,810,279.35
Post-employment benefits - defined
11,205,099.07 11,205,099.07
contribution plan
Termination benefits 1,522,951.00 1,432,551.50 2,955,502.50
Other benefits due within one year
Total 19,445,171.68 91,498,294.91 93,133,187.24 17,810,279.35
(2) Details of short-term employee benefits
Opening
Items Increase Decrease Closing balance
balance
Wage, bonus, allowance and subsidy 3,625,349.25 59,624,759.29 59,624,759.29 3,625,349.25
Employee welfare fund 4,028,741.93 4,011,925.71 16,816.22
Social insurance premium 5,029,950.01 5,029,950.01
Including: Medicare premium 4,709,194.46 4,709,194.46
Occupational injuries premium 320,755.55 320,755.55
Others
Housing provident fund 3,294,519.74 4,989,054.27 4,990,788.27 3,292,785.74
Trade union fund and employee
10,987,355.16 866,256.53 993,280.08 10,860,331.61
education fund
Short-term absences from work with
compensation
Short-term profit sharing plan
Others 14,996.53 4,321,882.31 4,321,882.31 14,996.53
Total 17,922,220.68 78,860,644.34 78,972,585.67 17,810,279.35
(3) Details of defined contribution plan
Opening
Items Increase Decrease Closing balance
balance
Basic endowment insurance premium 10,292,520.87 10,292,520.87
Unemployment insurance premium 437,601.29 437,601.29
Company annuity payment 474,976.91 474,976.91
Total 11,205,099.07 11,205,099.07
23.Taxespayable
Items Closing balance Opening balance
VAT 3,531,4920.06 1,007,843.11
Enterprise income tax 1,343,958.62 774,605.96
Individual income tax 344,984.34 298,962.05
Urban maintenance and construction tax 414,851.23 166,309.25
- 58 -
Items Closing balance Opening balance
Housing property tax 238,820.33 409,138.78
Land use tax 81,754.17 83,316.67
Education surcharge&local education
294,179.77 116,649.03
surcharge
Other tax 1,571.10 24,242.50
Total 6,251,609.62 2,881,067.35
24. Other payables
Items Closing balance Opening balance
Interest payable
Dividend payable 12,538,813.38 2,142,213.38
Other payables 53,666,098.11 61,864,581.70
Total 66,204,911.49 64,006,795.08
(1) Dividend payable
Items Closing balance Opening balance
Dividend of ordinary shares 12,538,813.38 2,142,213.38
(2) Other payables
Items Closing balance Opening balance
Temporary receipts payable 34,066,785.90 42,582,100.22
Unsettled installation cost 7,038,775.64 7,085,494.06
Deposits 4,276,809.64 4,797,260.63
Operating expenses 6,788,982.49 4,643,277.05
Others 1,494,744.44 2,756,449.74
Total 53,666,098.11 61,864,581.70
25.Non-current liabilities due within one year
Items Closing balance Opening balance
Long-term payables due within one year 2,656,474.95
26. Other current liabilities
Items Closing balance Opening balance
VAT collected in advance 1,520,821.27 2,454,923.31
27. Share capital
Items Opening Movements Closing
- 59 -
balance Issue of Reserve balance
Bouns
new transferred to Others Subtotal
shares
shares shares
Total shares 215,000,000 215,000,000
28.Capital reserve
Items Opening balance Increase Decrease Closing balance
Share premium 137,786,640.63 137,786,640.63
Other capital reserve 60,077,533.45 60,077,533.45
Total 197,864,174.08 197,864,174.08
- 60 -
29. Other comprehensive income (OCI)
Current period cumulative
Less: Other Less: Other
Opening Current period comprehensive comprehensive income Closing
Items Attributable Attributable to
balance cumulative income in the recorded in the previous Less: balance
to parent non-controllin
before income previous period is period is transferred to Income tax
company g shareholders
tax transferred to profit retained income in the
and loss current period
II. Other comprehensive income
reclassified into profit and loss
Including: The amount of financial assets
reclassified into other -1,854,910.00 -1,854,910.00
comprehensive income
Differences in translation of foreign
-4,964,727.82 -4,964,727.82 4,964,727.82
currency financial statements
Total -6,819,637.82 -4,964,727.82 4,964,727.82 -1,854,910.00
- 61 -
30. Surplus reserve
Items Opening balance Increase Decrease Closing balance
Statutory surplus
589,559.77 589,559.77
reserve
31. Undistributed profit
Preceding period
Items Current period cumulative
comparative
Balance before adjustment at the end of preceding period -341,446,683.34 -202,680,309.64
Add: Increase due to adjustment (or less: decrease)
Opening balance after adjustment -341,446,683.34 -202,680,309.64
Add: Net profit attributable to owners of the parent
-27,711,297.33 -29,593,867.19
company
Less: Appropriation of statutory surplus reserve
Dividend payable on ordinary shares
Closing balance -369,157,980.67 -232,274,176.83
32. Operating revenue/Operating cost
(1) Details
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
I.Main operations 399,867,521.60 317,772,069.20 441,387,294.27 348,603,700.69
II.Other operations 7,445,094.75 5,672,139.94 10,491,316.16 8,830,168.30
Total 407,312,616.35 323,444,209.14 451,878,610.43 357,433,868.99
(2) Operating income in the current period is classified according to the time of revenue
recognition
Video Low voltage Wiring
Revenue recognition Integrated
conferencing distribution products and Total
method (time) wiring product
products products others
Confirm at sceratin point
122,377,125.65 178,241,799.05 45,768,753.23 60,924,938.42 407,312,616.35
of time
Confirm in a certain period
of time
Total 122,377,125.65 178,241,799.05 45,768,753.23 60,924,938.42 407,312,616.35
33. Taxes and surcharges
Preceding period
Items Current period cumulative
comparative
Urban maintenance and construction tax 886,803.62 950,147.23
Education surcharge&local education surcharge 633,135.16 678,676.61
Housing property tax 510,691.74 632,407.41
Land use tax 241,844.10 253,268.80
- 62 -
Preceding period
Items Current period cumulative
comparative
Other tax 87,907.72 257,155.97
Total 2,360,382.34 2,771,656.02
34. Selling expenses
Preceding period
Items Current period cumulative
comparative
Employee benefits 28,150,107.87 30,657,820.79
Transport and damage to transport 2,789.81 2,617.00
Business entertainment 5,453,239.19 7,320,086.73
Travelling expenses 1,715,412.46 3,593,668.46
Office expenses 403,205.74 757,905.79
Sales service charges 1,726,174.39 1,983,529.10
Promotion expenses 638,232.78 645,814.35
Conference expenses 61,939.66 561,693.48
Equipment maintain fees 149,510.58 7,719.09
Others 2,331,597.58 3,530,437.79
Total 40,632,210.06 49,061,292.58
35. Administrative expenses
Preceding period
Items Current period cumulative
comparative
Employee benefits 20,644,875.51 20,500,482.96
Consulting and intermediary fees 1,038,068.26 1,179,882.32
Depreciation and amortization 3,088,563.05 3,134,154.50
Office expenses 1,505,366.57 1,128,158.97
Lease expenses 284,527.03 382,999.62
Travelling expense 197,659.84 500,872.73
Business entertainment 400,308.41 712,793.82
Funding for Party Building 208,638.07 214,223.66
Others 931,423.36 1,967,023.84
Total 28,299,430.10 29,720,592.42
36. R&D expenses
Preceding period
Items Current period cumulative
comparative
Employee benefits 20,115,664.25 24,333,843.32
Intermediate test fee 1,182,015.12 1,431,006.18
Travelling expenses 49,288.12 865,144.33
Material use 364,611.56 684,146.16
- 63 -
Preceding period
Items Current period cumulative
comparative
Depreciation and amortization 817,844.36 605,021.78
Commissioned development 19,150.94
Others 1,094,144.20 1,828,329.01
Total 23,642,718.55 29,747,490.78
37. Financial expenses
Preceding period
Items Current period cumulative
comparative
Interest expenditures 5,291,794.15 2,798,625.53
Less: Interest income 779,954.73 410,149.62
Losses on foreign exchange
Less: gain on foreign exchange 19,186.31 104,172.86
Financial institution fees 145,706.95 281,634.59
Others
Total 4,638,360.06 2,565,937.64
38. Other income
Current period Preceding period Related to assets/Related to
Items
cumulative comparative earnings
VAT will be refunded
882,872.52 831,873.19 Related to earnings
immediately
Enterprises declare subsidies 75,000.00 Related to earnings
2021 Jiangning District rescue
eight freight subsidy 70,587.00 Related to earnings
development zone supporting
Employee training subsidy 30,802.84 244,700.00 Related to earnings
Others 16,104.65 112,345.78 Related to earnings
Double prevention mechanism
construction standard enterprise 3,100.00 Related to earnings
subsidy
Total 1,075,367.01 1,192,018.97
39. Investment income
Preceding period
Items Current period cumulative
comparative
Long-term equity investment income calculated by the
-0.99 -1.19
equity method
Investment income from disposal of long-term equity
-6,085,544.20
investments
Investment income from the disposal of trading
337,205.48
financial assets
Others -4,791.06
Total -5,753,130.77 -1.19
40. Credit impairment loss
- 64 -
Preceding period
Items Current period cumulative
comparative
Bad debt loss of notes receivable 255,278.50 -355,632.18
Bad debt loss of accounts receivable -2,915,574.98 -2,426,050.63
Bad debt loss of other receivables -963,479.57 373,472.41
Total -3,623,776.05 -2,408,210.40
41. Assets impairment loss
Preceding period
Items Current period cumulative
comparative
Inventory write-down loss -9,993.42
42. Gains on asset disposal
Preceding period
Items Current period cumulative
comparative
Gains on disposal of fixed assets 59,868.36 15,829.32
43. Non-operating revenue
Current period Preceding period Amount included in non-
Items
cumulative comparative recurring profit or loss
Unpaid payables 2,603,295.76 2,603,295.76
Penalty income 120,062.99 5,000.00 120,062.99
Others 18,869.74 51,934.58 18,869.74
Total 2,742,228.49 56,934.58 2,742,228.49
44. Non-operating expenditures
Current period Preceding period Amount included in non-
Items
cumulative comparative recurring profit or loss
Donation expenditures 2,000.00
Non-current assets damage and
12,812.65 12,812.65
scrap loss
Penalty expenditures 2,000.00 2,000.00
Others 8,507.17 59,544.99 8,507.17
Total 23,319.82 61,544.99 23,319.82
45. Income tax expenses
(1) Details
Preceding period
Items Current period cumulative
comparative
Current income tax expense calculated in
accordance with the tax law and relevant 1,169,067.15 4,521,812.72
provisions
Deferred income tax expense
Others 2,245,778.53
- 65 -
Preceding period
Items Current period cumulative
comparative
Total 3,414,845.68 4,521,812.72
(2) Accounting profit and income tax expense adjustment process
Items Amount
Profit before tax -21,237,450.10
Income tax expenses based on tax rate applicable to the
-5,309,362.53
parent company
Effect of different tax rate applicable to subsidiaries -2,543,364.88
Effect of prior income tax reconciliation 2,245,778.54
The effect of non-taxable income
The impact of non-deductible costs, expenses and losses 679,774.89
The effect of deductible temporary differences or
deductible losses of deferred tax assets not recognized in -3,021,480.44
the previous period
The effect of deductible temporary differences or
deductible losses on deferred tax assets was not recognized 14,109,788.35
in the current period
Deduction of R&D expenditures -2,746,288.25
Income tax expenses 3,414,845.68
46. Statement of cash flows
(1) Other cash receipts related to operating activities
Preceding period
Items Current period cumulative
comparative
Government grants 667,089.45 1,192,018.97
Interest income 743,957.45 410,149.62
Incomings and outgoings 28,296,437.67 11,932,139.16
Others 705,426.17 934,135.53
Total 30,412,910.74 14,468,443.28
(2) Other cash payments related to operating activities
Preceding period
Items Current period cumulative
comparative
Out-of-pocket expenses 31,053,868.58 33,193,862.80
Incomings and outgoings 22,452,728.53 26,882,349.43
Others 679,491.80 462,741.40
Total 54,186,088.91 60,538,953.63
(3) Other cashpayments related to financing activities
Preceding period
Items Current period cumulative
comparative
- 66 -
Preceding period
Items Current period cumulative
comparative
Installment financing lease payments 1,138,717.12 39,813,078.92
47. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Current period Preceding period
Items
cumulative comparative
I. Reconciliation of net profit to cash flow from operating
activities:
Net profit -24,652,295.78 -25,149,014.43
Add: Provision for credit impairment loss 3,623,776.05 2,408,210.40
Provision for assets impairment loss 9,993.42
Depreciation of fixed assets, depletion of oil and gas assets,
depreciation of productive biological assets, and depreciation of 4,725,569.41 3,919,944.42
investment real estate
Depreciation of right-of-use assets
Amortization of intangible assets 523,769.42 482,769.28
Amortization of long-term prepayments 720,614.36 880,943.69
Loss on disposal of fixed assets, intangible assets and other
-59,868.36 -15,829.32
long-term assets (Less: gains)
Fixed assets retirement loss (Less: gains) 12,812.65
Net exposure hedge loss (Less: gains)
Losses on changes in fair value (Less: gains)
Financial expenses (Less: gains) 5,291,794.15 2,798,625.53
Investment losses (Less: gains) 5,753,130.77 1.19
Decrease of deferred tax assets (Less: increase)
Increase of deferred tax liabilities (Less: decrease)
Decrease of inventories (Less: increase) 8,708,640.42 27,228,422.89
Decrease of operating receivables (Less: increase) -84,356,904.37 -106,583,908.66
Increase of operating payables (Less: decrease) -16,165,029.70 -22,692,438.14
Others
Net cash flows from operating activities -95,863,997.56 -116,722,273.15
II. Significant investing and financing activities not related to
cash receipts and payments:
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets leased in under finance leases
- 67 -
Current period Preceding period
Items
cumulative comparative
III. Net changes in cash and cash equivalents:
Cash at the end of the period 123,632,374.19 73,109,498.70
Less: Cash at the beginning of the period 180,459,070.86 170,062,746.87
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 -56,826,696.67 -96,953,248.17
(2) Cash and cash equivalents
Current period Preceding period
Items
cumulative comparative
I. Cash 123,632,374.19 180,459,070.86
Including: Cash on hand 343.39 343.39
Cash in bank on demand for payment 123,632,030.80 180,458,727.47
Other monetary funds readily available for payment
Money deposited with a central bank that can be used for
payment
Deposit of interbank funds
Interbank debits
II. Cash equivalents
Including: bond investments maturing within three months
III. Cash and cash equivalents at the end of the period 123,632,374.19 180,459,070.86
Including: restricted use of cash and cash equivalents by the
parent company or subsidiaries within the Group
48. Assets with title or use right restrictions
Items Closing carrying amount Reasons for restrictions
Cash and bank balances 7,817,663.53 Performance bond and litigation
Fixed assets 58,016,211.48 Mortgage
Intangible assets 15,116,581.08 Mortgage
Investment property 6,359,779.69 Mortgage
Total 87,310,235.78
Note: We remind users of financial statements that, apart from the above assets with title or use right restrictions, in
order to entrust the parent company to apply for loans from Bank of Beijing, Jiangning Sub-branch, the Company
pledged its holding equities to the parent company, which include equity of Nanjing South Telecommunications Co
Ltd. 33.17 million yuan(96.99% shares of stock equity), equity of Nanjing PutianTelege Intelligent Building Co., Ltd.
4.80 million yuan(40% shares of stock equity), equity of Nanjing PutianChangle Telecommunications Equipment Co.,
Ltd. 5.07 million yuan(50.7% shares of stock equity), equity of Nanjing Putian Network Co., Ltd. 7.80 million
yuan(78% shares of stock equity). The Company has registered the equity pledge at Nanjing Jiangning Market
- 68 -
Supervision Administration. Those equities are with use restrictions before released.
49. Monetary items in foreign currencies
(1) Monetary items in foreign currencies
Closing balance in RMB equivalent at the
Items Exchange rate
foreign currencies end of the period
Cash and bank balances
Including: USD 104,948.22 6.7114 704,349.48
VI. Changes in the consolidation scope
In this period, the scope of merger is reduced by 1, and the subsidiary Putian Communication
(Hong Kong) Co., LTD has been cancelled. Since May, this period is no longer included in the scope
of merger. For details, see Note XII (3) Notes on long-term equity Investment of the parent company.
VII. Interest in other entities
(I) Interest in subsidiaries
1. Composition of subsidiaries
Main Holding proportion (%)
Place of Business Acquisition
Subsidiaries operating
registration nature Direct Indirect Method
place
Nanjing PutianChangle
Nanjing Nanjing
Telecommunications Manufacture 50.70 Set up
City City
Equipment Co., Ltd.
Nanjing PutianTelege
Nanjing Nanjing
Intelligent Building Manufacture 45.77 Set up
City City
Ltd.
Nanjing South
Nanjing Nanjing
Telecommunications Manufacture 96.99 3.01 Set up
City City
Company Limited
Merger of
enterprises
Nanjing Nanman Nanjing Nanjing
Manufacture 100.00 under
Electrics Co., Ltd. City City
different
control
Nanjing Putian Nanjing Nanjing
Manufacture 78.00 Set up
Network Co., Ltd. City City
Merger of
Nanjing PutianDatang enterprises
Nanjing Nanjing
Information Electronic Manufacture 40.00 under
City City
Co., Ltd. different
control
- 69 -
Subsidiaries Place of Main Business Holding proportion (%) Acquisition
registration operating nature Method
Nanjing Putian place
Nanjing Nanjing
Communication Manufacture 70.00 Set up
City City
Technology Co., Ltd.
Chongqing Chongqing
Chongqing Puhua
City City
Information Manufacture 100.00 Set up
Chongqin Chongqin
Technology Co., Ltd
g City g City
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 PutianTelege 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 PutianTelege Intelligent
Building Ltd’s related activity. The Company has the ability to impact the amount of return and control over Nanjing
PutianTelege Intelligent Building Ltd.
b. The company holds Nanjing PutianDatang Information Electronics Co., LTD. 40% equity, the company in
Nanjing PutianDatang information electronics Co., LTD. As the number of board members more than half of the
company's board of directors, has the power of Nanjing PutianDatang information Electronics Co., LTD., Be able to
enjoy variable returns by participating in relevant activities of Nanjing PutianDatang Information Electronics Co.,
LTD., and have the ability to influence the amount of returns by using the power of Nanjing PutianDatang
Information Electronics Co., LTD., and be able to control Nanjing PutianDatang Information Electronics Co., LTD.
- 70 -
2. Significant not wholly-owned subsidiaries
The serial Holding proportion of non- Non-controlling shareholders’ Dividend declared to non- Closing balance of non-
Subsidiaries
number controlling shareholders profit or loss controlling shareholders controlling interest
Nanjing PutianTelege Intelligent
1 54.23% 6,269,143.26 10,846,600.00 48,135,226.19
Building Ltd.
3. Main financial information of significant not wholly-owned subsidiaries
Closing balance Opening balance
Non- Non-
Subsidiaries Current Non-current Current current Total Current Non-current Current current Total
Total assets Total assets
assets assets liabilities liabilitie liabilities assets assets liabilities liabilitie liabilities
s s
Nanjing
PutianTeleg
233,489,731.1 35,880,808.2 269,370,539.4 180,609,288.8 180,609,288.8 211,702,890.6 35,559,085.8 247,261,976.4 150,061,012.1 150,061,012.1
e Intelligent
9 3 2 0 0 2 4 6 4 4
Building
Ltd.
Current period cumulative Preceding period comparative
Subsidiaries Total Total
Cash inflow from Cash inflow from
Operating revenue Net profit comprehensive Operating revenue Net profit comprehensive
operating activities operating activities
income income
Nanjing
PutianTelege
179,185,572.36 11,560,286.29 11,560,286.29 -54,336,160.51 199,671,487.21 13,604,585.72 13,604,585.72 -52,546,951.98
Intelligent
Building Ltd.
- 71 -
(II) Interest in joint venture or associates
1. Aggregated financial information of insignificant joint ventures and associates
Closing balance/Current Opening balance/Preceding period
Items
period cumulative comparative
I.Joint ventures
Total carrying amount of investments 10,422,192.16 10,422,193.15
Proportionate shares in the following items:
Net profit -0.99 2.38
Other comprehensive income -0.99 2.38
Total comprehensive income
II.Associated enterprises
Total carrying amount of investments
Proportionate shares in the following items:
Net profit
Other comprehensive income
Total comprehensive income
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
- 72 -
has increased significantly since initial recognition. When assessing whether the credit risk has
increased significantly since initial recognition, the Company takes into account reasonable and
supportable information, which is available without undue cost or effort, including qualitative and
quantitative analysis based on historical data, external credit risk rating, and forward-looking
information. The Company determines the changes in default risk of financial instruments during the
estimated lifetime through comparison of the default risk at the balance sheet date and the initial
recognition date, on an individual basis or a collective basis.
The Company considers the credit risk on a financial instrument has increased significantly
when one or more of the following qualitative and quantitative standards are met:
1) Quantitative standard mainly relates to the scenario in which, on the balance sheet date, the
probability of default in the remaining lifetime has risen by more than a certain percentage compared
with the initial recognition;
2) Qualitative standard mainly relates to significant adverse changes in the debtor’s operation or
financial position, present or expected changes in technology, market, economy or legal environment
that will have significant adverse impact on the debtor’s repayment ability;
(2) Definition of default and credit-impaired asset
The Company defines a financial asset as in default when the financial instrument meets one or
more of the following criteria, which are consistent with the definition of credit impairment incurred:
1) significant financial difficulty of the debtor;
2) a breach of binding clause of contract;
3) it is very likely that the debtor will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor, for economic or contractual reasons relating to the debtor’s
financial difficulty, having granted to the debtor a concession(s) that the creditor would not
otherwise consider.
2. Measurement of expected credit losses
The key factors in the measurement of expected credit loss include the probability of default,
loss rate of default, and exposure to default risk.
3. The beginning balance and ending balance of loss provision for financial instruments are
- 73 -
detailed in Notes V(3), V(4) and V(7) to these financial statements.
4. Exposure to credit risk and concentration of credit risk
The Company’s credit risk is primarily attributable to cash and bank balances and receivables.
In order to control such risks, the Company has taken the following measures:
(1) Cash and bank balances
The Company deposits its bank balances and other cash and bank balances in financial
institutions with relatively high credit levels, hence, its credit risk is relatively low.
(2) Receivables
The Company performs credit assessment on customers who uses credit settlement on a
regular/continuous basis. The Company selects credible and well-reputed customers based on credit
assessment result, and conducts ongoing monitoring on receivables, to avoid significant risks in bad
debts.
As the Company's accounts receivable risk points are distributed across multiple partners and
multiple customers, 12.50% of the Company's accounts receivable as of June 30, 2022 (June 30,
2021:11.43%) originated from the top five customers with balances, and the Company does not have
significant credit concentration risk.
The maximum amount of exposure to credit risk of the Company is the carrying amount of each
financial asset on the balance sheet.
(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 Nanjing Putian Telecommunications
Co., Ltd. 2021 Annual Report 187 banks to meet working capital requirements and expenditures.
- 74 -
Financial instruments classified based on remaining time period till maturity
Closing balance
Items Carrying Contract amount
Within 1 year 1-3 years Over 3 years
amount not yet discounted
Short-term
226,300,000.00 226,300,000.00 226,300,000.00
borrowings
Notes payable 1,250,000.00 1,250,000.00 1,250,000.00
Accounts
478,365,312.80 478,365,312.80 478,365,312.80
payable
Other payable 66,204,911.49 66,204,911.49 66,204,911.49
Long-term
payable
Non-current
liabilities due
within one year
Subtotal 772,120,224.29 772,120,224.29 772,120,224.29
(Continued)
Opening balance
Items Carrying Contract amount
Within 1 year 1-3 years Over 3 years
amount not yet discounted
Short-term
199,000,000.00 203,055,109.72 203,055,109.72
borrowings
Notes payable 1,251,741.17 1,251,741.17 1,251,741.17
Accounts
538,363,742.94 538,363,742.94 538,363,742.94
payable
Other payable 64,006,795.08 64,006,795.08 64,006,795.08
Long-term
payable
Non-current
liabilities due 2,656,474.95 2,717,664.49 2,717,664.49
within one year
Subtotal 805,278,754.14 809,395,053.40 809,395,053.40
(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
- 75 -
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 exchange risk refers to the risk that the fair value or future cash flow of a financial
instrument may fluctuate due to changes in foreign exchange rates. The Company operates in
mainland China and its main activities are denominated in renminbi, so the Company's exposure to
foreign exchange movements is not material. The Company's foreign currency monetary assets and
liabilities at the end of the period are detailed in the relevant notes to the financial statements.
IX. Fair value
(I) Details of fair value of assets and liabilities at fair value at the balance sheet date
Level 1 fair Level 2 fair Level 3 fair
Items value value value Closing balance
measurement measurement measurement
I. Recurring fair value measurement
1. Held-for-trading financial assets
2. Receivables financing 16,350,913.52 16,350,913.52
3. Other equity instrument
741,953.00 741,953.00
investments
Total assets at recurring fair value
17,092,866.52 17,092,866.52
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 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) Parent company
- 76 -
Registered
capital Voting right
Holding
Business proportion
Parent company Place of registration （Ten proportion over
nature over the
thousand the Company (%)
Company (%)
yuan）
No.2 Tudi 2 Road,
China Potevio
Zhongguan Village Information
Company 190,305.00 53.49 53.49
Economy Zone, Haidian industry
Limited
District, Beijing
(II) Status of the Company's subsidiaries
See Note "VII. Interests in Other Entities" for details.
(III) Joint ventures and associates of the Company
For the important joint ventures or associates of the enterprise, see Note "VII. Interests in Other
Entities", other joint ventures or associates that have related party transactions with the Company in
the current period, or have a balance of related party transactions with the Company in the previous
period.
Joint ventures or associates Relationships with the Company
SEI-Nanjing Putian Optical Network Co., Ltd. Joint ventures
(IV) Other related parties of the Company
Related parties Relationships with the Company
Beijing PutianTaili Telecommunications
An affiliated company of the ultimate controlling party
Technology Co.,Ltd.
Beijing taiko information system technology
An affiliated company of the ultimate controlling party
corporation limited
Eastern Communications Co.,Ltd. An affiliated company of the ultimate controlling party
Hangzhou Hikvision Science & Technology An affiliated company of the ultimate controlling party
Hangzhou Hikvision Digital Technology Co.,Lt
An affiliated company of the ultimate controlling party
d.
Hebei Far-East Communication System
An affiliated company of the ultimate controlling party
Engineering Co.,Ltd.
Nanjing Rail Transit System Engineering Co.,
An affiliated company of the ultimate controlling party
Ltd
Nanjing Hikvision Digital Technology Co., Ltd An affiliated company of the ultimate controlling party
Nanjing Postel Swanking Electrical Appliance
An affiliated company of the ultimate controlling party
Technical Co.,Ltd
Nanjing Putian Information Technology Co.,Lt
An affiliated company of the ultimate controlling party
d.
PUTIAN EASTCOM COMMUNICATIONS
An affiliated company of the ultimate controlling party
GROUP Co.,Ltd.
Nanjing Putian Communication Technology Ind
An affiliated company of the ultimate controlling party
ustrial Park Co.,Ltd.
Putian Rail Transit Technology (Shanghai) Co.
An affiliated company of the ultimate controlling party
LTD
- 77 -
Related parties Relationships with the Company
Potevio Telecommunications Co.,Ltd. An affiliated company of the ultimate controlling party
Putian Information Technology Institute Co.,Lt
An affiliated company of the ultimate controlling party
d.
Shanghai Potevio Network Technoligies Limite
An affiliated company of the ultimate controlling party
d
Shanghai PotevioCo.,Ltd. An affiliated company of the ultimate controlling party
Anhui Sun Create Electronics Co.,Ltd. An affiliated company of the ultimate controlling party
Gemplus(Tianjin)New Technologies Co.,Ltd. An affiliated company of the ultimate controlling party
Wuhan Putian New Energy Co., Ltd An affiliated company of the ultimate controlling party
CETC EASTCOM COMMUNICATIONS
An affiliated company of the ultimate controlling party
GROUP Co.,Ltd.
China Electronics Laisi Information System
An affiliated company of the ultimate controlling party
Co., Ltd.
CETC Finance Co., Ltd. An affiliated company of the ultimate controlling party
The 28th Research Institute of China
An affiliated company of the ultimate controlling party
Electronics Technology Group Co., Ltd
The 23rd Research Institute of China
An affiliated company of the ultimate controlling party
Electronics Technology Group Co., Ltd
China Putian Corporation Co.,ltd. An affiliated company of the ultimate controlling party
Nanjing branch of China Key
An affiliated company of the ultimate controlling party
System&Integrated Circuit Co.,ltd.
(V) Related party transactions
1. Purchase and sale of goods, rendering and receiving of services
Type of Content of Current period Preceding period
Related parties
transaction transaction cumulative comparative
Purchase goods and accept labor
services:
Nanjing Hikvision Digital Telecom
Purchase goods 140,931.84
Technology Co., Ltd products
Purchase goods
Nanjing Postel Swanking Electrical Goods and
and accept labor 30,796.47 175,207.98
Appliance Technical Co.,Ltd Services
services
Telecom
China Potevio Company Limited Purchase goods 371,681.42
products
Nanjing Putian Communication
Accept labor
Technology Industrial Park labor 129,056.58
services
Co.,Ltd.
Selling goods and providing
services:
The 28th Research Institute of
China Electronics Technology Selling goods Selling goods 1,420,289.21
Group Co., Ltd
Hebei Far-East Communication Sy
Selling goods Selling goods 783,202.90
stem Engineering Co.,Ltd.
Putian Rail Transit Technology
Selling goods Selling goods 309,784.08
(Shanghai) Co. LTD
Nanjing branch of China Key
Selling goods Selling goods 51,745.91
System&Integrated Circuit Co.,ltd.
- 78 -
Type of Content of Current period Preceding period
Related parties
transaction transaction cumulative comparative
CETC EASTCOM Terminal and
COMMUNICATIONS GROUP Selling goods supporting 25,809.65 22,641.51
Co.,Ltd. facilities
Selling goods Selling goods
Nanjing Postel Swanking Electrical
and providing and providing 10,619.47 175,207.98
Appliance Technical Co.,Ltd
services services
Nanjing Putian Communication Te Providing Providing
4,424.78 129,056.58
services services
chnology Industrial Park Co.,Ltd.
Terminal and
Beijing PutianTaili Telecommunica
Selling goods supporting 3,150.44
tions Technology Co.,Ltd. facilities
China Electronics Laisi
Selling goods Selling goods 592.04
Information System Co., Ltd.
PUTIAN EASTCOM
Telecom
COMMUNICATIONS GROUP Selling goods 1,034,151.45
products
Co.,Ltd.
Telecom
China Potevio Company Limited Selling goods 384,300.86
products
Wuhan Putian New Energy Co., Telecom
Selling goods 16,088.49
Ltd products
2. Related party leases
Lease income \ Lease income and
Status of leased expenses expenses
Name of lessor Name of Lessee
assets recognized in the confirmed in the
current period previous period
Nanjing Putian Communication Nanjing Communication
Technology Industrial Park Equipment Factory No.7 Office building 306,153.66 268,423.40
Co.,Ltd. Branch
Nanjing Southern Telecom
Nanjing LopuCo.,Ltd. Office building 197,619.05
Co.,Ltd
3. Related party guarantees
Whether the
Amount Commencement
Guarantees Guarantors Maturity date guarantee is
guaranteed date
mature
Nanjing Southern
The company 20,000,000.00 2021/11/12 2025/7/22 No
Telecom Co.,Ltd
Nanjing Southern
The company 10,000,000.00 2022/02/23 2025/11/16 No
Telecom Co.,Ltd
4. Key management’s emoluments
Items Current period cumulative Preceding period comparative
Key management’s emoluments 1,329,391.00 1,306,373.00
5. Related party entrusted loan and interest expense
Entrusted loan and interest expense with parent company Current period Preceding period
Principal balance of entrusted loan 145,000,000.00 95,000,000.00
Interest payments on entrusted loans 3,605,336.12 1,286,777.78
6. On June 30, 2022, the Company deposited funds with China Electronic Technology Finance
Co., LTDwith a balance of RMB 8,275,421.66, all of which were bank deposits, and generated
- 79 -
deposit interest income of RMB 39,861.20 during the reporting period.
(VI) Balance due to or from related parties
1. Balance due from related parties
Closing balance Opening balance
Items Related parties Book Provision for Provision for bad
Book balance
balance bad debts debts
Cash and
bank
balances
China Electronic Technology
8,275,421.66 7,151,551.17
Finance Co., Ltd
Accounts
receivable
Shanghai PotevioCo.,Ltd. 9,158,900.29 9,158,900.29 8,755,534.00 8,755,534.00
Hebei Far-East Communicatio
7,931,257.03 101,432.57 7,954,628.78 210,528.84
n System Engineering Co.,Ltd.
China Potevio Company
5,519,204.83 3,352,438.48 5,519,204.83 3,339,327.20
Limited
Putian Information Technology
6,065,598.36 1,944,396.29 6,065,598.36 1,321,517.31
Institute Co.,Ltd.
Potevio Telecommunications
4,317,924.00 1,060,171.20 4,317,924.00 372,990.90
Co.,Ltd.
Nanjing Rail Transit System
905,040.41 9,050.40 905,040.41 9,050.40
Engineering Co., Ltd
The 28th Research Institute of
China Electronics Technology 505,770.00 5,057.70
Group Co., Ltd
Putian Rail Transit Technology
433,840.80 4,338.41
(Shanghai) Co. LTD
Anhui Sun Create Electronics
183,262.43 8,388.89 183,262.43 8,388.89
Co.,Ltd.
Nanjing branch of China Key
System&Integrated Circuit 58,472.88 584.73 26,373.10 263.73
Co.,ltd.
Nanjing Postel Swanking
Electrical Appliance Technical 12,000.00 120.00
Co.,Ltd
China Electronics Laisi
669.00 6.69
Information System Co., Ltd.
Eastern Communications
19,100.00 315.00
Co.,Ltd.
Gemplus(Tianjin)New Technol
4,546.26 1,363.88
ogies Co.,Ltd.
Beijing taiko information
system technology corporation 182,680.00 18,268.00
limited
Subtotal 35,091,940.03 15,644,885.65 33,933,892.17 14,037,548.15
Advances
paid
- 80 -
Closing balance Opening balance
Items Related parties Book Provision for Provision for bad
Book balance
balance bad debts debts
Hangzhou Hikvision Science
6,850.00 6,850.00
& Technology
Hangzhou Hikvision Digital
616.00
Technology Co.,Ltd.
Subtotal 7,466.00 6,850.00
Other
receivable
Beijing Likangpu Telecommun
28,912,122.71 28,912,122.71 28,912,122.71 28,912,122.71
ications Equipment Co.,Ltd.
China Potevio Company
2,245,100.00 1,953,355.00 2,245,100.00 1,953,355.00
Limited
Putian Information Technology
367,800.00 367,800.00 367,800.00 367,800.00
Institute Co.,Ltd.
Nanjing Hikvision Digital
80,000.00 4,000.00 80,000.00 4,000.00
Technology Co., Ltd
The 23rd Research Institute of
China Electronics Technology 67,400.00 3,370.00
Group Co., Ltd
Subtotal 31,605,022.71 31,237,277.71 31,672,422.71 31,240,647.71
Total 74,979,850.40 46,882,163.36 72,764,716.05 45,278,195.86
2. Balance due to related parties
Items Related parties Closing balance Opening balance
Accounts
payable
SEI-Nanjing Putian Optical Network Co.,
20,568,725.66 20,258,725.66
Ltd.
China Potevio Company Limited 18,016,137.43 18,016,137.43
Nanjing Hikvision Digital Technology Co.,
72,837.90
Ltd
Nanjing Putian Communication Technology
25,000.00 25,000.00
Industrial Park Co.,Ltd.
Nanjing Postel Swanking Electrical
1,200.00 19,580.00
Appliance Technical Co.,Ltd
Subtotal 38,683,900.99 38,319,443.09
Advances
received
China Potevio Company Limited 4,690,537.30 4,703,127.30
China Putian Corporation Co.,ltd. 13,239.48
Subtotal 4,703,776.78 4,703,127.30
Other payables
Nanjing Putian Communication Technology
3,700,486.23 3,805,596.06
Industrial Park Co.,Ltd.
Putian Information Technology Institute Co.,
400,000.00 400,000.00
Ltd.
Potevio Telecommunications Co.,Ltd. 200,000.00 200,000.00
- 81 -
Items Related parties Closing balance Opening balance
China Putian Corporation Co.,ltd. 7,430,000.00 9,580,000.00
China Potevio Company Limited 231,015.28
Nanjing Putian Information Technology Co.,
2,758,432.56 3,042,825.53
Ltd.
SEI-Nanjing Putian Optical Network Co., Lt
83,000.00
d.
Subtotal 14,571,918.79 17,259,436.87
Short-term
borrowings
China Potevio Company Limited 145,000,000.00 145,000,000.00
Subtotal 145,000,000.00 145,000,000.00
XI. Commitments and contingencies
(I) Commitments
As of June 30, 2022, the Company has no material commitments to disclose.
(II) Contingencies
As of June 30, 2022, the Company had no material contingencies to disclose.
(III) Segment reports
1. Identification basis for reportable segments
Reportable segments are identified based on operating segments which are determined based on
the structure of the Company’s internal organization, management requirements and internal
reporting system. The Company identified reportable segments based on products, which include
video conferencing products, integrated wiring product, electrical products, wiring products, and
other products. Assets and liabilities shared by different segments are allocated pro rata among
segments.
The Company identified reportable segments based on products, assets and liabilities of each
segment are the actual amount of its proportion in assets and liabilities, and revenue from main
operations and cost of main operations are those generated or incurred by each product segment.
2. Financial information of reportable segments
Products segment
- 82 -
Video Integrated Low voltage Wiring
Inter-segment
Items conferencing wiring distribution products and Total
offsetting
products product products others
Revenue
from main 128,489,658.29 176,444,873.16 45,182,846.39 66,705,896.70 -16,955,752.94 399,867,521.60
operations
Cost of
main 98,361,695.45 137,424,676.29 35,374,348.50 63,510,979.52 -16,899,630.56 317,772,069.20
operations
Total assets 274,255,088.36 269,370,539.42 194,710,431.55 494,861,012.64 -302,370,504.57 930,826,567.40
Total
174,573,731.61 180,609,288.80 140,991,411.91 509,735,961.19 -189,177,699.51 816,732,694.00
liabilities
XII. Notes to items of parent company financial statements
(I) Accounts receivable
1.Disclosure according to aging
Ages Closing balance Opening balance
Within 1 year 39,839,142.63 52,993,552.29
1 to 2 years 28,064,270.46 23,708,195.98
2 to 3 years 18,067,544.84 22,670,878.34
3 to 4 years 36,389,971.54 64,972,433.60
4 to 5 years 43,202,669.52 17,956,808.59
Over 5 years 98,092,114.97 91,555,641.94
Less: Allowance for doubtful
150,526,158.09 149,111,938.07
accounts
Total 113,129,555.87 124,745,572.67
2. According to the bad debt calculation and withdrawal method classification disclosure
Closing balance
Book balance Provision for bad debts
Categories
Provision
% to
Amount Amount proportion
total
(%)
Receivables with provision made on an
69,599,335.93 26.40 69,599,335.93 100.00
individual basis
Receivables with provision made on a
194,056,378.03 73.60 80,926,822.16 41.70
collective basis
Among them: Combination 1: aging
191,084,844.85 98.47 80,926,822.16 42.35
method
Combination 2: Receivables within the
2,971,533.18 1.53
consolidated range
Total 263,655,713.96 100.00 150,526,158.09 57.09
(Continued)
Opening balance
Categories
Book balance Provision for bad debts
- 83 -
Provision
% to
Amount Amount proportion
total
(%)
Receivables with provision made on an
70,076,309.09 25.59 70,076,309.09 100.00
individual basis
Receivables with provision made on a
203,781,201.65 74.41 79,035,628.98 38.78
collective basis
Among them: Combination 1: aging
202,113,852.99 99.18 79,035,628.98 39.10
method
Combination2: Receivables within the
1,667,348.66 0.82
consolidated range
Total 273,857,510.74 100.00 149,111,938.07 54.45
（1）Receivables with provision made on an individual basis
Provision
Book Provision for
Debtors Ages proportion Reasons
balance bad debts
(%)
Dongpo Xi Laos Co., Unable to
19,708,086.54 19,708,086.54 4-5 years 100.00
Ltd. recover
Unable to
Mr. Xu 17,591,683.74 17,591,683.74 Over 5 years 100.00
recover
China Tower Corporation Unable to
13,819,926.92 13,819,926.92 Over 5 years 100.00
Limited recover
China Railway 4-5 years Unable to
Signal&Communication 3114,600.94； recover
5,241,400.50 5,241,400.50 100.00
Shanghai Engineering Over 5 years
Bureau Group Co.,Ltd. 2,126,799.56
Unable to
Others 13,238,238.23 13,238,238.23 2-5 years 100.00
recover
Total 69,599,335.93 69,599,335.93
（2）Receivables with provision made on a collective basis
①Combination 1: Aging combination
Closing balance Opening balance
Ages Provision Provision
Provision for Provision for
Book balance proportion Book balance proportion
bad debts bad debts
(%) (%)
Within 1
37,193,471.77 1.00 371,934.72 51,326,203.63 1.00 513,262.04
year
1 to 2
27,504,737.06 5.00 1,375,236.85 19,790,631.45 5.00 989,531.57
years
2 to 3
14,595,906.71 10.00 1,459,590.67 22,670,878.34 10.00 2,267,087.83
years
3 to 4
35,509,240.24 30.00 10,652,772.07 39,529,690.55 30.00 11,858,907.17
years
4 to 5
18,428,402.45 50.00 9,214,201.23 10,779,217.30 50.00 5,389,608.65
years
Over 5
57,853,086.62 100.00 57,853,086.62 58,017,231.72 100.00 58,017,231.72
years
Total 191,084,844.85 80,926,822.16 202,113,852.99 79,035,628.98
3. Bad debt provision
Change in current period
Opening Closing
Categories To withdraw or Cancel Other
balance Accrual balance
turn back after changes
- 84 -
verification
Receivables
with
provision
70,076,309.09 476,973.16 69,599,335.93
made on an
individual
basis
Receivables
with
provision
79,035,628.98 1,891,193.18 80,926,822.16
made on a
collective
basis
Total 149,111,938.07 1,891,193.18 476,973.16 150,526,158.09
4. Details of the top 5 debtors with largest balances
Proportion to
the total balance Provision for bad
Debtors Book balance
of accounts debts
receivable (%)
Mr. Xu 17,591,683.74 6.67 17,591,683.74
Dongpo Xi Laos Co., Ltd. 19,708,086.54 7.47 19,708,086.54
China Tower Corporation Limited 13,819,926.92 5.24 13,819,926.92
Shanghai PotevioCo.,Ltd. 9,158,900.29 3.47 9,158,900.29
Liantong Henan Branch 8,828,589.22 3.35 5,794,725.99
Total 69,107,186.71 26.20 66,073,323.48
(II) Other receivable
Items Closing balance Opening balance
Interest receivable
Dividends receivable 600,000.00 600,000.00
Other receivables 73,812,499.38 68,372,223.81
Less: Allowance for doubtful
39,061,352.39 40,428,187.81
accounts
Total 35,351,146.99 28,544,036.00
1. Dividends receivable
（1）Details
Items Closing balance Opening balance
Common stock dividend 600,000.00 600,000.00
2. Other receivable
（1）Other receivable categorized by nature
Items Closing balance Opening balance
Temporary payment 62,014,085.90 58,684,606.32
- 85 -
Items Closing balance Opening balance
receivable
Deposit 7,628,917.30 6,554,054.67
Travel allowance 589,016.07 691,088.20
Others 3,580,480.11 2,442,474.62
Less: Allowance for doubtful
39,061,352.39 40,428,187.81
accounts
Total 34,751,146.99 27,944,036.00
（2）Age analysis
Ages Closing balance Opening balance
Within 1 year 12,027,410.93 21,361,891.68
1 to 2 years 19,517,402.86 2,121,917.36
2 to 3 years 1,803,847.29 4,335,634.46
3 to 4 years 2,744,287.09 3,821,379.29
4 to 5 years 3,313,799.91 1,493,262.87
Over 5 years 34,405,751.30 35,238,138.15
Less: Allowance for doubtful
39,061,352.39 40,428,187.81
accounts
Total 34,751,146.99 27,944,036.00
（3）Changes in provision for bad debts
Phase I Phase II Phase III
Items 12-month Lifetime expected credit Total
Lifetime expected credit
expected credit losses (credit not
losses (credit impaired)
losses impaired)
Opening balance 250,754.64 40,177,433.17 40,428,187.81
Opening balance in
250,754.64 40,177,433.17 40,428,187.81
the current period
--Transferred to
phase II
--Transferred to
phase III
--Reversed to phase
II
--Reversed to phase
I
Provision made in
13,497.15 805,817.15 819,314.30
the current period
Provision recovered
in current period
Provision written off
2,186,149.72 2,186,149.72
in current period
Other changes
Closing balance 264,251.79 38,797,100.60 39,061,352.39
（4）Other receivables for which the provision for bad debts is withdrawn individually at the
- 86 -
end of the period
Proportion of
Debtors Book balance Provision for bad debt Reasons
withdrawal (%)
Beijing Likangpu The other party is
Telecommunications 28,912,122.71 28,912,122.71 100.00 bankrupt and unable
Equipment Co.,Ltd. to settle
（5）Bad debt provision
Change in current period
Opening Cancel Closing
Categories To withdraw or Other
balance Accrual after balance
turn back changes
verification
Other
40,428,187.81 819,314.30 2,186,149.72 39,061,352.39
combinations
（6）Other receivables actually written off in the current period
The amount of other receivables actually written off in this period is 2,186,149.72 yuan.
（7）Details of the top 5 debtors with largest balances
Proportion to
the total
Nature of Closing balance of Provision for bad
Debtors Ages
receivables balance other debts
receivables
(%)
Beijing Likangpu Temporary
Telecommunications payment 28,912,122.71 Over 5 years 39.17 28,912,122.71
Equipment Co.,Ltd. receivable
Nanjing Nanman Security
26,867,500.00 Within 1 year 36.40
Electric Co., LTD deposit
Within 1
year287,612.42；
1-2 years
NANJING PUTIAN 504,197.5；
Rent, water 2-3 years
TELECOMMUNIC 2,862,862.93 3.88
and electricity 404,315.31；
ATIONS CO.,LTD. 3-4 years
1,449,390.56；
4-5 years
217,347.14
4-5 years
China Potevio Security 938,000.00；
1,938,000.00 2.63 1,938,000.00
Company Limited deposit Over 5 years
1,000,000.00
3-4 years
Beijing Temporary
179,184.19；
PutianKechuang payment 805,545.63 1.09 805,545.63
Over 5 years
Industry Co.,Ltd. receivable
626,361.44
Total 61,386,031.27 83.17 31,655,668.34
(III) Long-term equity investments
Items Closing balance Opening balance
- 87 -
Provision
Provision
for Carrying Carrying
Book balance Book balance for
impairme amount amount
impairment
nt
Investments in
113,409,068.64 113,409,068.64 115,319,588.64 1,910,520.00 113,409,068.64
subsidiaries
Investments in
associates and 10,422,192.16 10,422,192.16 10,422,193.15 10,422,193.15
joint ventures
Total 123,831,260.80 123,831,260.80 125,741,781.79 1,910,520.00 123,831,261.79
1. Investments in subsidiaries
Provision
Closing
for
balance of
Opening Closing impairment
Investees Increase Decrease provision
balance balance made in
for
current
impairment
period
Nanjing PutianChangle
Telecommunications 2,610,457.00 2,610,457.00
Equipment Co., Ltd.
Nanjing PutianTelege
3,320,003.45 3,320,003.45
Intelligent Building Co., Ltd
Nanjing Southern Telecom
33,175,148.00 33,175,148.00
Co.,Ltd
Nanjing Nanman Electrics Co.,
57,831,012.71 57,831,012.71
Ltd.
Nanjing Putian Network
7,741,140.41 7,741,140.41
Co.,Ltd.
Nanjing PutianDatang
Information Electronics Co 5,436,797.07 5,436,797.07
Ltd
NANJING PUTIAN
TELECOMMUNICATIONS 1,294,510.00 1,294,510.00
CO.,LTD.
Chongqing Puhua Information
2,000,000.00 2,000,000.00
Technology Co., Ltd
POSTEL
TELECOMMUNICATIONS
(H.K.) CO. LIMITED
Total 113,409,068.64 113,409,068.64
Note: The deregistration of POSTEL TELECOMMUNICATIONS (H.K.) CO. LIMITED was completed in May
2022.
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2. Investments in associates and joint ventures
Increase/Decrease
Closing
Opening Investment Adjustment in Cash Closing balance of
Investees Provision
balance Investments Investments income other Changes in dividend/Profit balance provision for
for Others impairment
increased decreased recognized under comprehensive other equity declared for
impairment
equity method income distribution
I. Joint
10,422,193.15 -0.99 10,422,192.16
ventures
SEI-Nanjing
Putian Optical
10,422,193.15 -0.99 10,422,192.16
Network Co.,
Ltd.
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(IV) Operating revenue/Operating cost
1. Operating income and operating costs are classified by major categories
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
I.Main operations 48,561,617.50 44,909,870.82 57,592,825.38 53,102,335.86
II.Other operations 1,476,755.54 1,568,931.48 6,018,376.27 5,993,665.33
Total 50,038,373.04 46,478,802.30 63,611,201.65 59,096,001.19
2. Operating income in the current period is classified according to the time of revenue
recognition
Video Low voltage Wiring
Revenue recognition Integrated
conferencing distribution products and Total
method (time) wiring product
products products others
Confirm at sceratin point
50,038,373.04 50,038,373.04
of time
Confirm in a certain period
of time
Total 50,038,373.04 50,038,373.04
(V) Investment income
Preceding period
Items Current period cumulative
comparative
Investment income from long-term equity investments
9,153,400.00 9,153,400.00
under cost method
Investment income from long-term equity investments
-0.99 -1.19
under equity method
Others 122,168.94
Total 9,275,567.95 9,153,398.81
XIII. Other supplementary information
(I) Schedule of non-recurring profit or loss
Items Amount Remarks
1. Profit and loss on disposal of non-current assets, including the write-off part of
59,868.36
the asset impairment provision
2. Approval beyond authority, or without formal approval documents, or incidental
tax refund, reduction and exemption
3. Government subsidies included in the current profit and loss (closely related to
the business of the enterprise, except those enjoyed in accordance with the national 192,494.49
unified standard quota or quantitative government subsidies)
4. Capital occupancy fee charged to a non-financial enterprise that is included in
the current profit and loss
5. When the investment cost of a subsidiary, joint venture or associates is less than
that of the investment, an enterprise shall enjoy the income generated from the fair
value of the identifiable net assets of the invested entity
6. Non - monetary assets exchange gains and losses
7. Gains or losses from investing or managing assets on behalf of others
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Items Amount Remarks
8. Provisions for impairment of assets due to force majeure factors, such as natural
disasters
9. Debt restructuring gains and losses -4,791.06
10. Enterprise restructuring expenses, such as placement of staff expenses,
integration costs, etc
11. A gain or loss in excess of fair value resulting from a transaction at an
appreciably unfair price
12. The net profit and loss of the subsidiary from the beginning of the period to the
merger date arising from the merger of enterprises under the same control
13. Gains and losses arising from contingencies unrelated to the normal operation
of the company's business
14. In addition to the normal business of the company effective hedging related
business, tradable financial assets, and other illiquid financial assets, derivative
financial assets, changes in the fair value of the tradable financial liabilities have
337,205.48
profit and loss, as well as the disposal of tradable financial assets, other illiquid
financial assets, creditor's rights investment, transactional financial liabilities and
other derivative financial liabilities of investment returns
15. The receivables and contract assets for which impairment tests are carried out
separately will be transferred back
16. Gains and losses from entrusted loans
17. Profits and losses arising from changes in the fair value of investment real
estate that are measured using the fair value model
18. The impact of one-time adjustment on current profit and loss according to
taxation, accounting and other laws and regulations
19. Custodial fee income obtained from entrusted operation
20. Other non-operating income and expenses other than those described above 2,718,908.67
21. Other profit and loss items that meet the definition of non-recurring profit and
-6,085,545.19
loss
22. Impact of income tax -82,712.65
23. Amount of influence of minority shareholders -293,256.52
Total -3,157,828.42
Note: Otheritemsthatmeet the definition of non-recurring profitandloss are mainly the translation of
the accumulated foreign currency statements of the liquidation subsidiary in Hong Kong.
(II) Return on net assets(RONA) and earnings per share(EPS)
Weighted average EPS (yuan/share)
Profit of the reporting period RONA (%) Basic EPS Diluted EPS
Current Preceding Current Preceding Current Preceding
period period period period period period
Net profit attributable to shareholders of
-51.49 -16.14 -0.13 -0.14 -0.13 -0.14
ordinary shares
Net profit attributable to shareholders of
ordinary shares after deducting non-recurring -45.63 -16.29 -0.11 -0.14 -0.11 -0.14
profit or loss
Nanjing Putian Telecommunications Co., Ltd.
19August 2022
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