Nanjing Putian Telecommunications Co., Ltd.
SEMI-ANNUAL REPORT 2022
August 2022
1
Section I. Important Notice, Contents and Interpretation
Board of Directors, Board of Supervisory, all directors, supervisors and senior
executives of Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred
to as the Company) hereby confirm that there are no any fictitious statements,
misleading statements, or important omissions carried in this report, and shall
take all responsibilities, individual and/or joint, for the reality, accuracy and
completion of the whole contents.
Sun Xigang, principal of the Company, Wang Huilin, person in charger of
accounting works and JiYiwen, head of accounting organization (accounting
principal) hereby confirm that the Financial Report of Semi-Annual Report
2022 is authentic, accurate and complete.
All directors attended the Meeting for Report deliberation.
The forward-looking statements with future plans concernedin the semi-annual
report do not constitute a substantial commitment of the Company to investors.
Investors and relevant persons should maintain sufficient risk awareness and
understand the differences between programme, forecasts and commitments.
In "Section III Management Discussion and Analysis" of this report, the
company has analyzed the risk factors that may adversely affect the realization
of the company's future development strategy and business objectives. Investors
are kindly advised to check.
The Company has no plans of cash dividend distributed, no bonus shares and
has no share converted from capital reserve either.
2
Contents
Section I Important Notice, Contents and Interpretation ..................................................................... 1
Section II Company Profile and Main Financial Indexes .................................................................... 6
Section III Management Discussion and Analysi .............................................................................. 10
Section IV Corporate Governance ..................................................................................................... 23
Section V Enviornmetnal and Social Responsibility ........................................................................ 25
Section VI Important Events .............................................................................................................. 27
Section VII Changes in shares and particular about shareholders ..................................................... 41
Section VIII Preferred Stock..............................................................................................................46
Section IX Corporate Bonds .............................................................................................................. 47
Section X Financial Report................................................................................................................48
3
Documents Available for Reference
(i)The financial statement containing signature and seals of the person in charge of the Company, person in charge of the accounting
works and head of accounting organization (accounting principal);
(ii)Original copies of documents and announcements The Company released publicly during the reporting period.
4
Interpretation
Items Refers to Contents
Nanjing Putian Telecommunications Co.,
The Company, Company Refers to
Ltd.
Nanjing Southern Telecom Co., Ltd
Southern Telecom Refers to
(controlling subsidiary of the Company)
Nanjing PutianTelege Intelligent
Telege Company Refers to Building Ltd(controlling subsidiary of
the Company)
Nanjing Nanman Electric Co.,
Nanman Company Refers to Ltd.(wholly-owned subsidiary of the
Company)
Nanjing PutianDatang Information
PutianDatang Refers to Electronic Co., Ltd (controlling
subsidiary of the Company)
5
Section II Company Profile and Main FinancialIndexes
I Company profile
Short form of the stock NJ TEL B Stock code 200468
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in
南京普天通信股份有限公司
Chinese)
Short form of the Company
南京普天
(in Chinese)
Foreign name of the
Nanjing Putian Telecommunications Co.,Ltd.
Company(if applicable)
Legal representative Sun Xigang
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Li Jing Xiao Hong
Putian Technology Pioneer Park, No.8 Putian Technology Pioneer Park, No.8
Contact address Fenghui Avenue, Yuhuatai District, Fenghui Avenue, Yuhuatai District,
Nanjing, Jiangsu Province Nanjing, Jiangsu Province
Tel. 025-69675809 025-69675865
Fax. 025-52416518 025-52416518
E-mail lijing@postel.com.cn xiaohong@postel.com.cn
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□Applicable √Not applicable
The registrations address, offices address and codes as well as website and email of the Company have not changed
during the reporting period, found more in Annual Report 2021.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□Applicable √Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and
preparation place for semi-annual report have not changedduring the reporting period, found more in Annual Report
2021.
3.Other relevant information
6
Whether other relevant information has changed during the reporting period
□Applicable √Not applicable
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √ No
Changes in the current period
compared with the same
Current period Same period of last year
period of the previous year
(+,-)
Operating revenue (RMB) 407,312,616.35 451,878,610.43 -9.86%
Net profit attributable to
shareholders of the listed -27,711,297.33 -29,593,867.19 6.36%
Company (RMB)
Net profit attributable to
shareholders of the listed
Company after deducting -24,553,468.90 -29,866,458.49 17.79%
non-recurring gains and
losses (RMB)
Net cash flow arising from
-95,863,997.56 -116,722,273.15 17.87%
operating activities (RMB)
Basic earnings per share
-0.13 -0.14 7.14%
(RMB/Share)
Diluted earnings per share
-0.13 -0.14 7.14%
(RMB/Share)
Weighted average ROE -51.49% -16.14% -35.35%
Changes at end of the current
Current period-end period-end of last year period compared with the
end of previous year (+,-)
Total assets (RMB) 930,826,567.40 993,571,982.44 -6.32%
Net assets attributable to
shareholder of listed 42,440,843.18 65,187,412.69 -34.89%
Company (RMB)
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS
(International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting
Principles)
□Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS
(International Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign
accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
7
accounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
VI. Items and amounts of extraordinary/non-recurring profit (gains)/loss
√ Applicable □Not applicable
Unit: RMB/CNY
Item Amount Note
Gains/losses from the disposal of non-
current asset (including the write-off that 59,868.36
accrued for impairment of assets)
Governmental subsidy reckoned into
current gains/losses (except for those
with normal operation business
concerned, and conform to the national
192,494.49
policies & regulations and are
continuously enjoyed at a fixed or
quantitative basis according to certain
standards)
Gains/losses from debt restructuring -4,791.06
Except for the effective hedging
operations related to normal business
operation of the Company, the
gains/losses of fair value changes from
holding the trading financial assets and
337,205.48
trading financial liabilities, and the
investment earnings obtained from
disposing the trading financial asset,
trading financial liability and financial
assets available for sale
Other non-operating revenue and
expenditure except for the 2,718,908.67
aforementioned items
Other gain/loss items that qualified the
-6,085,545.19
definition of non-recurring gain/loss
Less: impact on income tax 82,712.66
Impact on minority shareholders’
293,256.52
equity (post-tax)
Total -3,157,828.43
Specific information on other items of profits/losses that qualified the definition of non-recurring profit(gain)/loss
√ Applicable □Not applicable
Other gain/loss items that qualified the definition of non-recurring gain/loss refers to the effect of liquidation closure
of the accumulated foreign currency statement translation differences from the subsidiary in Hong Kong.
8
Information on the definition of non-recurring profit(gain)/loss that listed in theQ&A Announcement No.1 on
Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring)
Profit(gain)/loss as the recurring profit(gain)/loss
□Applicable √Not applicable
The Company does not have any non-recurring profit(gain)/loss listed under theQ&A Announcement No.1 on
Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring)
Profit(gain)/lossdefined as recurring profit(gain)/loss
9
Section III. Management Discussion and Analysis
I. Main businesses of the Company in the reporting period
Our country's telecommunications industry fully implements the spirit of the 19th National Congress
of the Party and its previous plenary sessions, thoroughly implements the decisions and deployments
of the Party Central Committee and the State Council, and actively promotes the construction of a
network power and digital China, and accelerates the construction of new information infrastructure
such as 5G and gigabit optical networks, and the popularization of applications in an all-round way,
providing strong support for creating new advantages in the digital economy and enhancing new
momentum for economic development. According to the data released by the Ministry of Industry
and Information Technology, in the first half of 2022, the overall operation of the
telecommunications industry was stable. The construction and application of new infrastructure such
as 5G and gigabit optical networks have been accelerated, and the communication supply capacity
has been continuously improved.
During the reporting period, in the face of unfavorable factors such as rising raw material prices, key
regional businesses being affected by pandemic control, and blocked logistics, the company
resolutely implemented the decision-making, deployment and development strategy of the group
company’s party group, insisted on seeking changes while maintaining stability, strengthened
centralized management and control, and made solid progress. The first was to expand the market
externally, strengthen planning, identify the development orientation, coordinate internal and
external resources, and actively expand the market; the second was to focus on internal management,
make every effort to promote the reduction in accounts receivable and inventory, and costs, the
organization simplification and the personnel optimization, and increase the efficiency of resource
utilization to promote the healthy and stable development of the company.
1. Focused on superior products and reconstruct the market system
The company advocated the concept of Big Market, shared internal and external resources,
reconstructed the market management system, and formed a "regional + industry" market structure.
Relying on the competitive product market, it dug deep into customer needs, enhanced customer
stickiness, consolidated existing business, and strengthened the cooperation with upstream and
downstream industry chains of the group members, and enhanced the company's overall industry
market competitiveness.
10
In terms of general cabling products, the company actively explored the medical, financial and other
industry markets, assisted the construction of temporary hospitals in Shanghai, and provided
integrated wiring systems and security cable systems; it successfully served Beijing Emergency
Center, Anyang Supervisory Commissions, Shanghai Unicom and other data center computer room
projects.
In terms of video conferencing products, the company adhered to the "two-wheel drive" market
expansion, and expanded advantageous industries through distribution and direct sales. Continued to
target at the central enterprises, finance and other industry leading enterprises, and went deep into
and became more proficient at high-quality customers. In the first half of the year, the company
signed the information leveling upgrade project with China Tobacco Hunan Branch, the video
conferencing project with China Minmetals, and the conference room upgrade project with China
Logistics Group. Multimedia integration and self-developed business continued to grow.
In terms of low-voltage distribution products, we continued to deepen our efforts in the field of rail
transit, and successfully signed subway projects such as Taizhou Line S1, Beijing Line 12, Nanjing
Line S8, and Hangzhou Airport Line. We focused on expanding the airport industry and signed
projects such as Nanjing Lukou Airport and Xiangxi Airport.
In terms of other telecommunication products, it has gradually transformed from traditional business
fields to ICT, government and enterprise customers, actively sought breakthroughs in the industry
and private network market, and actively participated in the backbone telecommunication
construction of domestic dedicated communication bureaus. The key developed smart ODN products
successfully won the bid for the Western Theater Command Project and the Shanghai Unicom Pilot
Project.
2. Adhered to independent innovation and strengthen R&D management
Improved the innovation incentive mechanism and fully mobilized the enthusiasm of R&D
personnel. During the reporting period, TelegeCompanycompleted the integration and upgrade of the
400G optical fiber wiring system; Southern Telecom completed the development of the video
conferencing network quality diagnosis system, and completed the R&D plan for the video
conferencing reservation management system and the IoT centralized control management system;
Nanman Company confirmed the solution of the intelligent terminal distribution box, submitted the
circular connector Y50DX series products for inspection; supplied the intelligent application
products integrating the optical fiber link management system with RFTS in small batches.
11
During the reporting period, the company had eight newly authorized patents, and participated in the
formulation of a number of industry standards such as GB50462 "Code for Infrastructure
Construction and Acceptance of Data Center".
II. Core Competitiveness Analysis
1. Marketing ability
The Company has mature market networks, servesthe operators and industry customers in the
government, rail transit, finance, medical, power, internet companies and others over a long period
of time, and has rich industry experience.
2. Product competitiveness
The Company insists on being market-oriented, strengthening and optimizing its leading products,
actively developing new products, and constantly improving its innovation capabilities.
The Company has high technology and product advantages in wiring products. It has developed a
series of optical network connection products that have obtained a number of national invention
patents, and is a supplier of strong brand influence in the field of domestic optical fiber
communication network connection products. Access products have good performance in wired
access networks and optical transmission networks, etc., and are ranked among the "Top Ten Most
Competitive Enterprises in China's Optical Transmission and Network Access Equipment"
throughout the year. Focusing on video communication applications for more than 20 years, the
subsidiarySouthern Telecom has accumulated rich market channels and client resources, as well as
differentiated products and conceptual design capabilities, the self-developed products have been
recognized by large industry clients. The complete set of electrical products of the
subsidiary,Nanman Company, are widely used in airports, wharves, rail transit and other industries,
and has accumulated rich customer resources and industry experience, and can provide customers
with complete sets of products and solutions for individual needs. Telege Building is positioned in
the high-end market for cabling system, and theyactively developing new products such as a new
generation of intelligent cabling systems and integrated cabling management platforms.
3. Brand influence
The Company is an information and communication enterprise under the central state-owned
enterprise, and communication products have a strong brand influence in the field of domestic
optical fiber communication network connection products. The integrated cabling products of
12
TelegeBuilding are well-known brand products in Jiangsu Province, a famous trademark of the
province, and have been ranked among the top ten domestic cabling system brands for more than ten
consecutive years. The video conferencing product series of Southern Telecom have a high
reputation in China.
IV. Main business analysis
Overview
See the relevant content of “I-Main businesses of the Company in the reporting period”
Y-o-y changes of main financial data
Unit: RMB/CNY
Same period of last Y-o-y
Current period Reasons for changes
year increase/decrease (+,-)
Operating revenue 407,312,616.35 451,878,610.43 -9.86%
Operating costs 323,444,209.14 357,433,868.99 -9.51%
Sales expenses 40,632,210.06 49,061,292.58 -17.18%
Administration
28,299,430.10 29,720,592.42 -4.78%
expenses
The short-term loans
increased compared
with the same period of
Finance expenses 4,638,360.06 2,565,937.64 80.77%
previous year due to
the need of operation
and production
Income tax expenses 3,414,845.68 4,521,812.72 -24.48%
R & D investment 23,642,718.55 29,747,490.78 -20.52%
Net cash flow arising
from operating -95,863,997.56 -116,722,273.15 17.87%
activities
Net cash flow arising Trading financial assets
from investment 18,980,463.81 -3,292,539.34 676.47% are collected for
activities maturity
Net cash flow arising
from financing 20,037,650.77 22,637,031.67 -11.48%
activities
The net cash flow
arising from operation
Net increase of cash
-56,826,696.67 -96,953,248.17 41.39% and investment
and cash equivalent
activities are increased
on a y-o-y basis
Major changes on profit composition or profit resources in reporting period
No major changes on profit composition or profit resources occurred in reporting period
Constitution of operating revenue
Unit: RMB/CNY
Current period Same period last year Y-o-y changes (+,-
13
Ratio in operation Ratio in operation )
Amount Amount
revenue revenue
Total operation
407,312,616.35 100% 451,878,610.43 100% -9.86%
revenue
Industries
Communication
361,543,412.68 88.76% 409,138,300.62 90.54% -11.63%
industry
Electrical industry 45,769,203.67 11.24% 42,740,309.81 9.46% 7.09%
Products
Video conference
products-Main 128,489,658.29 31.55% 129,623,277.17 28.69% -0.87%
business revenue
General cabling
products-Main 176,444,873.16 43.32% 197,510,645.45 43.71% -10.67%
business revenue
Low-voltage
distribution
45,182,846.39 11.09% 41,853,695.33 9.26% 7.95%
products-Main
business revenue
Wiring and other
products-Main 66,705,896.70 16.38% 82,624,306.00 18.28% -19.27%
business revenue
Interior offset -16,955,752.94 -4.16% -10,224,629.68 -2.26% 65.83%
Other business
7,445,094.75 1.83% 10,491,316.16 2.32% -29.04%
revenue
Regions
Domestic 407,312,616.35 100.00% 451,878,610.43 100.00% -9.86%
The industries, products, or regions accounting for over 10% of the Company’s operating income or operating profit
√ Applicable □Not applicable
Unit: RMB/CNY
Increase/decrea
Increase/decrea Increase/decrea
Operating Gross profit se of gross
Operating cost se of operating se of operating
revenue ratio profit ratio y-o-
revenue y-o-y cost y-o-y
y
Industries
Communication
361,543,412.68 287,588,530.51 20.46% -11.63% -11.87% 0.22%
industry
Electrical
45,769,203.67 35,855,678.63 21.66% 7.09% 15.30% -5.58%
industry
Products
Video
conference
products-Main 128,489,658.29 98,361,695.45 23.45% -0.87% -4.76% 3.13%
business
revenue
General cabling
products-Main
176,444,873.16 137,424,676.29 22.11% -10.67% -7.33% -2.80%
business
revenue
Low-voltage 45,182,846.39 35,374,348.50 21.71% 7.95% 15.78% -5.29%
14
distribution
products-Main
business
revenue
Wiring and
other products-
66,705,896.70 63,510,979.52 4.79% -19.27% -17.08% -2.51%
Main business
revenue
Interior offset -16,955,752.94 -16,899,630.56 0.33% -65.83% -66.92% -0.65%
Other business
7,445,094.75 5,672,139.94 23.81% -29.04% -35.76% 7.98%
revenue
Regions
Domestic 407,312,616.35 323,444,209.14 20.59% -9.86% -9.51% -0.31%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest one year’s scope of period-end
□Applicable √Not applicable
Explain the reasons for above 30% y-o-y changes in relevant data
□Applicable √Not applicable
IV. Analysis of the non-main business
√ Applicable □Not applicable
Unit: RMB/CNY
Whether be sustainable
Amount Ratio in total profit Cause of formation
(N/Y)
The investment loss
due to the liquidation
Investment income -5,753,130.77 27.09% N
of subsidiary in Hong
Kong
Due to the liquidation
of subsidiary in Hong
Kong, the payable that
Non-operation revenue 2,742,228.49 -12.91% N
need not to paid was
transferred to non-
operation revenue
The bad debt losses on
Credit impairment loss -3,623,776.05 17.06% N
receivable
IV. Assets and liability analysis
1. Major changes of assets composition
Unit: RMB/CNY
End of current Period End of last year
Notes of major
Ratio in total Ratio in total Ratio changes
Amount Amount changes
assets assets
Monetary fund 131,450,037.72 14.12% 188,665,530.37 18.99% -4.87%
Account
393,215,904.17 42.24% 334,586,551.93 33.68% 8.56%
receivable
15
Contractual
0.00% 0.00 0.00% 0.00%
assets
Inventory 178,263,171.37 19.15% 186,531,565.70 18.77% 0.38%
Investment real
6,510,352.16 0.70% 6,854,891.51 0.69% 0.01%
estate
Long-term
equity 10,422,192.16 1.12% 10,422,193.15 1.05% 0.07%
investment
Fix assets 114,216,914.49 12.27% 117,801,156.71 11.86% 0.41%
Construction in
1,182,171.32 0.13% 292,996.23 0.03% 0.10%
process
Right-of-use
0.00% 0.00 0.00% 0.00%
assets
Short-term
226,300,000.00 24.31% 199,000,000.00 20.03% 4.28%
loans
Contractual
19,029,759.47 2.04% 18,884,024.60 1.90% 0.14%
liability
Long-term
0.00% 0.00 0.00% 0.00%
loans
Lease liability 0.00% 0.00 0.00% 0.00%
2. Main oversea assets
□Applicable √Not applicable
3. Assets and liability measured by fair value
√ Applicable □Not applicable
Unit: RMB/CNY
Accumulat
Gains/losse
ed fair Impairment Amount Sales
s of fair
Opening value accrued in purchased amount in Other Ending
Item value
amount changes current in current current changes amount
changes in
included in period period period
the period
equity
Financial
assets
1.Trading
financial
assets(exc
20,000,000.
luding
00
derivative
financial
assets)
4.Other
equity
741,953.00 741,953.00
instrument
investment
Subtotal of
20,741,953.
financial 741,953.00
00
assets
Receivable 40,852,223. 16,350,913.
financing 88 52
Total 61,594,176. 17,092,866.
16
88 52
Financial
0.00 0.00
liability
Other changes
Whether there are significant changes in the measurement attributes of the major assets during the reporting period
□Yes √ No
4. The assets rights restricted till end of the period
Assets with ownership or use rights restricted
(1)details are:
Item Book value at period –end Restriction reason
Monetary funds 7,817,663.53 Performance bonds, litigation
Fixed assets 58,016,211.48 Mortgage
Intangible assets 15,116,581.08 Mortgage
Investment real estate 6,359,779.69 Mortgage
Total 87,310,235.78
(2)other explanation
Saved as disclosed above, the Company pledged its stock rights of 4.8 million Yuan (40% equity in total) in the
subsidiary Nanjing PutianTelege Intelligent Building Ltd., stock rights of33.17 million Yuan (96.99% equity in total)
in the subsidiary Nanjing Southern Telecom Co., Ltd., stock rights of5.07 million Yuan (50.7% equity in total)in the
subsidiary Nanjing PutianChangle Telecommunication Equipment Co., Ltd., and stock rights of 7.8 million Yuan (78%
equity in total) in Nanjing Putian Network Co., Ltd pledge to the parent Company for entrusting the loan from
Bank,and handled the Company's equity registration respectively at Market Supervision Administration in Jiangning
District, Hi-Tech Industry District, Yuhuatai District and Qinghuai District of Nanjing City. Transfer of the stock
rights of the aforesaid subsidiaries arerestricted before the pledge being lifted.
VI. Investment analysis
1. Overall situation
√ Applicable □Not applicable
Investment in the same period of last
Investment in the reporting (RMB) Changes
year ( RMB)
1,721,041.47 3,137,203.31 -45.14%
2. The major equity investment obtained in the reporting period
□Applicable √Not applicable
17
3. The major non-equity investment doing in the reporting period
□Applicable √Not applicable
4. Financial assets investment
(1) Securities investment
□Applicable √Not applicable
The Company had no securities investment during the reporting period.
(2) Derivative investment
□Applicable √Not applicable
The Company had no derivatives investment during the reporting period.
5. Application of raised proceeds
□Applicable √Not applicable
The Company had no application of raised proceeds during the reporting period.
VII. Sales of major assets and equity
1. Sales of major assets
□Applicable √Not applicable
The Company did not sell major assets during the reporting period
2. Sales of major equity
□Applicable √Not applicable
VIII. Analysis of main holding Company and joint stock companies
√ Applicable □Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
Unit: RMB/CNY
Company Main Register Operating Operating
Type Total assets Net assets Net profit
name business capital revenue profit
Nanjing Multimedia
communica 34.2
Southern 274,255,08 99,681,356. 128,687,27 6,700,126.3 3,670,767.7
Subsidiary tion and million
Telecom application yuan 8.36 75 7.34 1 4
Co., Ltd solutions
Nanjing General
PutianTele cabling, 20 million 269,370,53 88,761,250. 179,185,57 11,364,633. 11,560,286.
Subsidiary
ge developme yuan 9.42 61 2.36 24 29
Intelligent nt,
18
Building production
Ltd and sales of
the
building
intelligent
products
R&D,
manufactur
e and sales
of the
Nanjing
software of
Putian 10 million 17,097,000. 15,992,994. - -
Subsidiary communica 0.00
Network yuan 76 28 121,991.48 121,991.48
tion,
Co., Ltd.
network
and
electronic
equipment
Out-door
patch, sub-
line
equipment,
network
Nanjing box(cube)o
PutianChan f out-door
gle and - -
10 million 22,977,554. 5,203,512.4 6,246,855.4
Telecommu Subsidiary machinery 4,053,367.5 4,053,367.5
yuan 92 6 2
nications office, 5 5
Equipment manufactur
Co., Ltd. e and sales
of
communica
tion
electrical
products
R & D and
sales of the
Nanjing electronic
Putian component
Telecommu s assembly, -
5 million - -
nication Subsidiary electronic 440,114.40 4,482,284.4 0.00
yuan 679,184.15 679,184.15
Technology products 2
Company and
Ltd. telecommu
nication
equipment
Manufactur
Nanjing e and sales
of 41.14 - -
Nanman 194,710,43 53,719,019. 45,769,203.
Subsidiary industrial million 4,171,463.1 4,625,924.2
Electric intelligent yuan 1.55 64 67
1 1
Co., Ltd. distribution
products
R&D,
manufactur
Nanjing e and sales
PutianData of solar
ng controller, - -
and 10 million 45,797,566. 26,807,204. 14,248,167.
Informatio Subsidiary 1,638,300.5 1,635,119.4
production yuan 63 07 11
n & 6 0
Electronic processing
Co., Ltd business of
electronic
products
19
Informatio
n system
integration
service,
computer
software
and
hardware
and
peripherals
manufactur
Chongqing ing,
Puhua manufactur
Informatio e of the 50 million 2,005,705.2 2,000,987.7
Subsidiary 92,920.35 -29,670.57 -29,949.56
n cloud yuan 3 5
Technology computing
Co., Ltd. devices,
telecommu
nication
equipment
and internet
devices,
big data
services
and
software
developme
nt
Particular about subsidiaries acquired or disposed during the reporting period
√ Applicable □Not applicable
Method of acquisition and disposal Impact on overall production operations
Name
during the reporting period and results
Putian Telecommunications (H.K.) Co.,
Close the Company No significant impact
Ltd.
Explanation
IX. Structured vehicle controlled by the Company
□Applicable √Not applicable
X. Risks and countermeasures
Possible risks to the development of the Company:
1.Cycle risk of communication industry
The Company is mainly engaged in the manufacture and sales of communications products,
customers include several major telecom operators in China. The establishment and adjustment of
network construction period and investment plan of the operators have a significant impact on the
operation of the Company and pose a cyclical risk to the industry.
Countermeasures: The Company will continue to further integrate quality resources, accelerate
industry upgrade, expand industry market and improve industry profitability.
20
2.Technology R&D risk
The telecommunication industry is experiencing rapid change of technology development and
product upgrade. Therefore, the Company’s business operation will be adversely affected if it cannot
adapt to market change, lag behind in the technology reform or the developed products do not satisfy
market demands.
Countermeasures: The Company will actively follow up the latest development trend of industrial
technology, develop and introduce technology based on market requirements, focus on organization,
planning and management of product development and expand development of new products,
aiming to maintaining the leading position in terms of technology.
3.Market competition risk
The industry in which the Company operates is highly competitive with substantial market players.
Besides, customers, such as various operators, continue to adopt centralized procurement policy
which led to very furious market competition. Benefiting from long-term operation, the Company
has accumulated certain competitive advantages in terms of brand, technology, quality and
marketing. If our products fail to cater for the market variation in future, we may lose the existing
advantages in market competition.
Countermeasures: The Company will continue to capitalize on the existing advantages to consolidate
traditional market while expanding special network and industry markets actively, and accelerate the
transformation and upgrading of industries and foster strategic emerging industries. Through
continuous cost control and scientific innovation, it continues to improve production and research
capability, which leads to rapid development of the new products. Simultaneously, focusing on the
market dynamics, seizing market information in order to adjusting the sales policies timely to
maintain the market competitiveness.
4. Cash flow shortage risk
Products of the Company are used in operator network construction, subway construction and other
projects. Affected by project completion cycle and long approval process, the industry has longer
sales recovery cycle. Suffered by the COVID-19, the cash flow pressure of the Company further
increased as the receivable cycle lengthened and the inventory realization cycle became slower.
Countermeasures: The company insisted on budget management of funds, and controlled the ratio of
fund payment and fund return so as to ensure the dynamic balance of cash flow; this year, the
company set up the "two gold" collection working group to collect the accounts receivable with long
21
aging by classification,at the same time, we strengthened the assessment, formulated reward and
punishment measures, urged the timely recovery of the payment, strengthened the inventory
management, and improved the liquidity of the inventory; obtained certain working capital financing
from financial institutions as needed.
22
Section IV Corporate Governance
I. In the reporting period, the Company held annual shareholders’ general meeting
and extraordinary shareholders’ general meeting
1. Annual General Meeting in the reporting period
Ratio of investor
Session of meeting Type Date Date of disclosure Resolutions
participation
The Meeting have
deliberated and
approved the
follow
proposals:(1)Propo
First Extraordinary
Extraordinary sal to re-elctMr.
Shareholders
Shareholders 54.25% February 14, 2022 February 15, 2022 Sun Xigang as a
General Meeting
General Meeting director of the 7th
of 2022
BOD of the
Company; (2)
Amendment of the
Article of
Association
The Meeting have
deliberated and
approved the
follow
proposals:(1)
Report on the
Work of BOD for
year of 2021; (2)
Report on the
Work of BOS for
Annual General year of 2021;
AGM 54.25% May 20, 2022 May 21, 2022
Meeting of 2021 (3)Financial
Account Report
for year of 2021;
(4)Profit
Distribution Plan
2021; (5) Annual
Report of 2021;
(6) Estimated the
Daily Related
Transactions for
year of 2022
2. Request for extraordinary general meeting by preferred stockholders whose voting rights
restore
□Applicable √Not applicable
23
II. Changes of directors, supervisors and senior executives
√ Applicable □Not applicable
Name Position Type Date Reasons
Director(former),
XuQian Leaving office January 12, 2022 Leaving office
President (former)
Election of
Sun Xigang Director, President Being elected February 14, 2022 shareholders Meeting
and Board Meeting
III. Profit distribution plan and capitalizing of common reserves plan for the
Period
□Applicable √Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital
reserve either for the semi-annual year.
IV. Implementation of the Company’s stock incentive plan, employee stock
ownership plan or other employee incentives
□Applicable √Not applicable
The Company has no equity incentive plan, employee stock ownership plans or other employee incentives in Period.
24
Section V. Environmental and Social Responsibility
I. Major environmental
The listed Company and its subsidiary whether belong to the key sewage units released from environmental
protection department
□Yes √No
Administrative punishment for environmental problems during the reporting period
The impact on the
The Company's
Name of company or Reason for production and
Violation Punishment result rectification
subsidiary punishment operation of listed
measures
companies
- - - - - -
Other environmental information disclosed refer to key polluters
-
Measures taken to reduce carbon emissions during the reporting period and their effects
□Applicable√ Not applicable
Reasons for not disclosing other environmental information
The Company and its subsidiaries do not belong to the key emission enterprises announced by the environmental
protection authorities. During the reporting period, The Company stringently implementing the relevant laws and
regulations on national environmental protection, and there is no violation of environmental laws and regulations, no
administrative penalties by environmental protection authorities for violating the environmental regulations.
II. Social responsibility
Based on the communications industry, The Company adheres to independent innovation,
continuously promotes the sustainable development of itself, and fulfills its responsibilities and
obligations to the interested parties, and strive to achieve the harmonious and win-win development
of the enterprises, staff, society and environment.
The Company continuously improves and optimizes corporate governance, earnestly fulfills its
obligation of information disclosure, ensures shareholders’ right to know, right to participate and
right to vote on major matters of the Company, and guarantees the legitimate rights and interests of
all shareholders.
The Company attaches great importance to quality, environment and occupational safety and health
management. It has passed GB/T19001-2016/ISO9001:2015 quality management system
certification, GB/T24001-2016/ISO14001:2015environmental management system certification, and
GB/T45001-2020/ISO45001:2018 occupational health and safety management system certification,
25
and constantly strives to promote environmental protection and sustainable development.
The Company strictly abides by the Labor Law, Labor Contract Law and other laws and regulations,
always adheres to the people-oriented core values, attaches great importance to the value of
employees, cares about the work, life, health and safety of employees, effectively protects the rights
and interests of employees, enhances the cohesion of the Company, devotes to the realization of the
joint development vision of the Company and its employees.
The Company has always kept in mind the mission and responsibility of a central enterprise,
enthusiastically devoted itself to social public welfare undertakings. During the reporting period, the
Company organized the epidemic prevention volunteers to participate in nuclei acid testing.
Based on the principles of honesty and trustworthiness and operating in accordance with the law, the
Company actively builds partnerships with suppliers, customers, banks and other relevant
stakeholders, respects the legitimate rights and interests of stakeholders, achieves a win-win situation
between the Company and relevant stakeholders, and promotes the Company’s sustainable and
steady development.
26
Section VI. Important Events
I. Undertakings that the actual controller, shareholders, related party, buyers and
the Company have fulfilled during the reporting period and have not yet fulfilled
by the end of reporting period
□Applicable√ Not applicable
No undertakings that the actual controller, shareholders, related party, buyers and the Company have fulfilled during
the reporting period and have not yet fulfilled by the end of the period
II. Non-operational fund occupation from controlling shareholders and its related
party
□Applicable√ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
III. External guarantee out of the regulations
□Applicable√ Not applicable
No external guarantee out of the regulations occurred in the period.
IV. Appointment and non-reappointment (dismissal) of CPA
Whether the financial report of semi-annual report has been audited
□Yes √No
The semi-annual report of the Company is unaudited.
V. Explanation from Board of Directors and Supervisory Committee for “Non-
standard audit report” that issued by CPA
□Applicable√ Not applicable
VI. Explanation from the BOD on the previous year’s “non-standard audit report”
□Applicable√ Not applicable
VII. Bankruptcy reorganization
□Applicable√ Not applicable
No bankruptcy reorganization occurred during the reporting period.
VIII. Litigation
27
Major litigation and arbitration
□Applicable√ Not applicable
No major litigation and arbitration occurred in the Period.
Other litigation
√ Applicable □ Not applicable
Whether a
Amount Outcome and
accrual
Litigation(ar involved (10 impact of Judgment Disclosure Disclosure
liability Progress
bitration) thousand litigation enforcement date index
resulted
Yuan) (arbitration)
(Y/N)
Case of sale
and purchase
contract
dispute- No Juchao
Nanjing significant website
Under
Southern The verdict impact on the “Notice on
39.89 N implementati 2022-04-26
Telecom Co., is in effect current profit Cumulative
on
Ltd filed a or profit after Litigation” of
lawsuit the period the Company
against
BeikongEasy
code
Case of sale
and purchase
contract
dispute-
Nanjing
Shengtian No Juchao
Internet significant website
Case closed Under
Technology impact on the “Notice on
64.99 N by the court implementati 2022-04-26
Co., Ltd filed current profit Cumulative
mediation on
a lawsuit or profit after Litigation” of
against the period the Company
Nanjing
Putian
Telecommuni
cations Co.,
Ltd.
Case of sale
and purchase
contract
dispute-
Nanjing No Juchao
HUAMAI significant website
Technology impact on the Execution “Notice on
93.39 N On trial 2022-04-26
Co., Ltdmade current profit completed Cumulative
an opposing or profit after Litigation” of
claim against the period the Company
Nanjing
Hehao
Communicati
on
28
Technology
Co., Ltd. ,
Nanjing
Putian
Telecommuni
cations Co.,
Ltd is the
third party
Case of sale
and purchase
contract
dispute-
Nanjing
Putian
Telecommuni No Juchao
cations Co., significant website
Case closed Under
Ltd filed a impact on the “Notice on
64.03 N by the court implementati 2022-04-26
lawsuit current profit Cumulative
mediation on
against the or profit after Litigation” of
Baotou the period the Company
Branch of
China
Broadcast
Inner
Mongolia
Corporation
Nanjing
No Juchao
Putian
significant website
Telecommuni
impact on the “Notice on
cations Co., 9.52 N Second trial - 2022-04-26
current profit Cumulative
Ltd sued Li
or profit after Litigation” of
Qi in a labor
the period the Company
dispute
Nanjing
PutianTelege
Intelligent
Building Ltd
bring a suit
No Juchao
against
significant website
shareholder Case closed
impact on the Execution “Notice on
Yu Yumei, 21.7 N by the court 2022-04-26
current profit completed Cumulative
PengXiongan mediation
or profit after Litigation” of
dPengShikui
the period the Company
for damaging
the interests
of the
Company’s
creditors
Case of sale
No Juchao
and purchase
significant website
contract Case closed
impact on the Execution “Notice on
dispute- 15.01 N by the court 2022-04-26
current profit completed Cumulative
Nanjing mediation
or profit after Litigation” of
Southern
the period the Company
Telecom Co.,
29
Ltd filed a
lawsuit
against
Demage
Exhibition
Co., Ltd
Case of
contract
dispute-
Nanjing
Gongmei
Technology
Co., Ltdfiled
a lawsuit
against No Juchao
General significant website
Hospital of impact on the “Notice on
217 N On trial - 2022-04-26
Eastern current profit Cumulative
Theater or profit after Litigation” of
Command of the period the Company
Chinese
PLA,
Nanjing
Putian
Telecommuni
cations Co.,
Ltd is the
third party
Nanjing
Qinhuai
District
Maoye
Department No Juchao
Store sued significant website
Ruled to
the Nanjing impact on the “Notice on
2 N dismiss the - 2022-04-26
Putian current profit Cumulative
suit
Telecommuni or profit after Litigation” of
cations Co., the period the Company
Ltd in a
housing lease
contract
dispute
Case of sale
and purchase
contract
dispute-
No Juchao
Nanjing
significant website
Putian Case closed Under
impact on the “Notice on
Telecommuni 187.86 N by the court implementati 2022-04-26
current profit Cumulative
cations Co., mediation on
or profit after Litigation” of
Ltd filed a
the period the Company
lawsuit
against
Nanjing
Gongmei
30
Technology
Co., Ltd and
LuoManinng
Nanjing
Putian
Telecommuni
cations Co.,
Ltd sued No Juchao
Nantong significant website
Huarong Settlement impact on the “Notice on
19.56 N - 2022-04-26
Construction withdrawal current profit Cumulative
Corporation or profit after Litigation” of
in an the period the Company
engineering
construction
contract
dispute
Other
litigation that
did not meet
the
disclosure 689.29 N - - - -
standards
during the
reporting
period
IX. Penalty and rectification
√ Applicable □ Not applicable
Investigation Conclusion (if Disclosure
Name Type Reason Disclosure date
Penalty Type applicable) index
Juchao website:
Notice on
Receipt of the
Decision Letter
Nanjing Putian Irregular Regulatory on
Communication Other revenue other measures on 2022-01-28 Administrative
Co., Ltd. recognition correction Supervision
Measures from
CSRC of
Jiangsu (Notice
No.: 2022-004)
Description of rectification
√ Applicable □ Not applicable
According to the requirement of Decision Letter on Administrative Supervision Measures from CSRC of Jiangsu, the
Company conducts a correction in accounting errors on relevant data in periodic reports from 2017 to 2019(found
more in the Notice on Correction of Prior-Period Accounting Errors released on April 26, 2022), and submitted a
written rectification report to the CSRC of Jiangsu .
31
X. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XI. Major related party transaction
1. Day-to-day related party transaction
√ Applicable □ Not applicable
Appro
Propo Marke
Tradi ved Whet
Relate Relate rtion t price
ng transa her to
d Relate d in the of
Relate d Pricin amou ction excee Mean
transa transa Deali amou simila Disclo Disclo
d transa g nt (in amou d the s of
ction ction ng nt of r sure sure
relatio ction princi 10 nt (in appro paym
partie conte price the transa date index
nship type ple thousa 10 ved ents
s nt same ction
nd thousa amou
transa availa
Yuan) nd nt
ction ble
Yuan)
Other
Nanji enterp
ng rises
Notic
Hikvi under
e on
sion the Purch Telec
Bank Forec
Digita same ase of om Marke
14.09 14.09 0.05% N transf 14.09 ast of
l contro produ produ t price
er Daily
Techn l of cts ct
Relate
ology the
d
Co., actual
Trans
Ltd. contro
action
ller 2022-
2,000 for
Other 03-25
2022
Nanji enterp
Purch publis
ng rises
ase of hed
Putian under
produ on
Hony the Goods
cts Bank Jucha
ar same and Marke
and 3.08 3.08 0.01% N transf 3.08 o
Electr contro Servic t price
receip er Websi
ics l of es
t of te
Tech. the
servic
Co., actual
es
Ltd contro
ller
The Other Notic
28th enterp e on
Resea rises Forec
rch under ast of
Sales Sales Bank
Institu the Marke 142.0 142.0 10,00 142.0 2022- Daily
of Produ 0.35% N transf
te of same t price 3 3 0 3 03-25 Relate
goods cts er
China contro d
Electr l of Trans
onics the action
Techn actual for
32
ology contro 2022
Group ller publis
Corpo hed
ration on
(CET Jucha
C) o
Hebei Other Websi
Yuand enterp te
ongC rises
ommu under
nicati the
Sales Sales Bank
on same Marke
of Produ 78.32 78.32 0.19% N transf 78.32
Syste contro t price
goods cts er
m l of
Engin the
eering actual
Co., contro
Ltd. ller
Other
Putian enterp
Rail rises
Transi under
t the
Sales Sales Bank
Techn same Marke
of Produ 30.98 30.98 0.08% N transf 30.98
ology contro t price
goods cts er
(Shan l of
ghai) the
Co., actual
Ltd. contro
ller
Nanji
Other
ng
enterp
Branc
rises
h of
under
China
the
Key Sales Sales Bank
same Marke
Syste of Produ 5.17 5.17 0.01% N transf 5.17
contro t price
m& goods cts er
l of
Integr
the
ated
actual
Circui
contro
t Co.,
ller
Ltd.
Other
enterp
CETC rises
East under
Com the termin
Sales Bank
munic same al, Marke
of 2.58 2.58 0.01% N transf 2.58
ation contro suppo t price
goods er
Group l of rting
Co., the
Ltd. actual
contro
ller
33
Other
Nanji enterp
ng rises Sales
Putian under of
Sales
Hony the goods
Produ Bank
ar same , Marke
cts/ 1.06 1.06 0.00% N transf 1.06
Electr contro Provi t price
servic er
ics l of ding
es
Tech. the servic
Co., actual es
Ltd contro
ller
Other
enterp
rises
Putian
under
High-
the Provi Provi
tech Bank
same ding ding Marke
Indust 0.44 0.44 0.00% N transf 0.44
contro servic servic t price
ry er
l of es es
Co.,
the
Ltd.
actual
contro
ller
Other
Beijin
enterp
g
rises
Putian
under
Taili
the termin
Com Sales Bank
same al, Marke
munic of 0.32 0.32 0.00% N transf 0.32
contro suppo t price
ation goods er
l of rting
Techn
the
ology
actual
Co.,
contro
Ltd.
ller
Other
enterp
CETC
rises
LES
under
Infor
the
mati Sales Sales Bank
same Marke
on of Produ 0.06 0.06 0.00% N transf 0.06
contro t price
Syst goods cts er
l of
em
the
Co.,
actual
Ltd.
contro
ller
Putian Other Notic
High- enterp e on
Lease
tech rises Bank Forec
d Rental Marke 22.99 2022-
Indust under 30.62 30.62 100 N transf 30.62 ast of
proper costs t price % 03-25
ry the er Daily
ty
Co., same Relate
Ltd. contro d
34
l of Trans
the action
actual for
contro 2022
ller publis
hed
on
Jucha
o
Websi
te
Notic
e on
Forec
Other ast of
enterp Daily
rises Relate
under d
Nanji
the Trans
ng Rental Rental Bank
same Marke 12.36 2022- action
Lopu proper incom 19.76 19.76 200 N transf 19.76
contro t price % 03-25 for
Co., ty e er
l of 2022
Ltd.
the publis
actual hed
contro on
ller Jucha
o
Websi
te
Notic
e on
Forec
ast of
Daily
Relate
d
Entrus
Contr Intere Trans
China ted Bank
olling st Marke 360.5 360.5 68.13 360.5 2022- action
Potevi loan 1,000 N transf
shareh expen t price 3 3 % 3 03-25 for
o intere er
older se 2022
st
publis
hed
on
Jucha
o
Websi
te
689.0 13,30
Total -- -- -- -- -- -- -- --
4 0
Details of major sold-out order
Not applicable
sent back
The actual implementation of
Daily Related Transactions that is Total routing related transactions incurred during the reporting period did not exceed the
about to occurred in the Period estimated total amount
with total amount estimated by
35
category (if applicable)
Reason for the great difference
between trade price and market Not applicable
reference price (if applicable)
2. Related party transactions of assets acquisition and sold
□ Applicable √ Not applicable
No related party transactions of assets acquisition and sold occurred during the reporting period
3. Related party transactions of mutual investment outside
□ Applicable √ Not applicable
No related party transactions of mutual investment outside occurred during the reporting period.
4. Contact of related party credit and debt
√ Applicable □ Not applicable
Whether the Company had non-operating contact of related credit and debt
□ Yes √ No
The Company had no non-operating contact of related credit and debt in the reporting period.
5. Contact with the related finance companies
√ Applicable □ Not applicable
Deposit business
Amount for the Period
Maximum The total
Opening Total deposit Ending
daily deposit Deposit amount
balance (in amount for Balance (10
Related party Relationship limit (in 10 interest rate withdrawn in
10 thousand the Period thousand
thousand range the Period
yuan) (10 thousand yuan)
yuan) (10 thousand
yuan)
yuan)
China Other
Electronics enterprises
Technology controlled by 69,550.04 0.3%-1.1% 715.16 14,480.25 14,367.87 827.54
Finance Co., the actual
Ltd. controller
Loan business
Amount for the Period
Loan Opening The total Ending
Total deposit
amount(in 10 Loan interest balance (in amount Balance (10
Related party Relationship amount for
thousand rate range 10 thousand withdrawn in thousand
the Period
yuan) yuan) the Period yuan)
(10 thousand
(10 thousand
yuan)
yuan)
36
Credit extension or other financial business
Total amount (10 Actual amount (10
Related party Relationship Type of business
thousand yuan) thousand yuan)
China Electronics Other enterprises
Technology Finance controlled by the actual Credit 20,000 0
Co., Ltd. controller
6. Transactions between the finance company controlled by the Company and related parties
□ Applicable √ Not applicable
There are no deposits, loans, credits or other financial business between the finance companies controlled by the
Company and related parties
7. Other significant related transactions
□ Applicable √ Not applicable
During the reporting period, the company had no other significant related transactions.
XII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship occurred during the reporting period
(2) Contract
□ Applicable √ Not applicable
No contract occurred during the reporting period
(3) Leasing
√ Applicable □ Not applicable
Explanation on leasing
During the reporting period, the company and its subsidiaries incurred rental fee of 1.1974 millionyuan, and rental
income of 1.5988 millionyuan.
Items that bringing gain/loss to the Company more than 10% of the total profits in reporting period
□ Applicable √ Not applicable
No items generated over 10% gains/losses in total profit in reporting period for the Company
2. Material guarantees
37
√Applicable □Not applicable
Unit: 10’000 yuan
Particulars about the external guarantee of the Company and the subsidiaries (Barring the guarantee for subsidiaries)
Counter-
Name of
Related guarante Guarante
the Actual Collatera
Announc Actual e Impleme e for
Compan Guarante date of Guarante l (if Guarante
ement guarante situation nted related
y e limit happenin e type applicabl e term
disclosur e limit (if (Y/N) party
guarante g e)
e date applicabl (Y/N)
ed
e)
Guarantee between The Company and the subsidiaries
Counter-
Name of
Related guarante Guarante
the Actual Collatera
Announc Actual e Impleme e for
Compan Guarante date of Guarante l (if Guarante
ement guarante situation nted related
y e limit happenin e type applicabl e term
disclosur e limit (if (Y/N) party
guarante g e)
e date applicabl (Y/N)
ed
e)
Nanjing 2021.11.
Jointly
Southern 2021-04- 2021-10- 12-
5,000 2,000 liability N N
Telecom 20 28 2022.7.2
guaranty
Co., Ltd 2
Nanjing 2022.02.
Jointly
Southern 2021-04- 2022-02- 23-
5,000 1,000 liability N N
Telecom 20 15 2022.11.
guaranty
Co., Ltd 16
Total amount of
Total amount of
actual occurred
approving guarantee
0 guarantee for 1,000
for subsidiaries in
subsidiaries in report
report period (B1)
period (B2)
Total amount of Total balance of
approved guarantee actual guarantee for
for subsidiaries at 0 subsidiaries at the 3,000
the end of reporting end of reporting
period (B3) period (B4)
Guarantees of subsidiaries to subsidiaries
Counter-
Name of
Related guarante Guarante
the Actual Collatera
Announc Actual e Impleme e for
Compan Guarante date of Guarante l (if Guarante
ement guarante situation nted related
y e limit happenin e type applicabl e term
disclosur e limit (if (Y/N) party
guarante g e)
e date applicabl (Y/N)
ed
e)
Total amount of guarantee of the Company (total of three above mentioned guarantee)
Total amount of Total amount of
approving guarantee actual occurred
0 1,000
in report period guarantee in report
(A1+B1+C1) period (A2+B2+C2)
Total amount of Total balance of
0 3,000
approved guarantee actual guarantee at
38
at the end of report the end of report
period (A3+B3+C3) period (A4+B4+C4)
The proportion of the total amount of
actually guarantee in the net assets of the 70.69%
Company (that is A4+ B4+C4)
Including:
Amount of guarantee for shareholders, actual
0
controller and its related parties (D)
The debts guarantee amount provided for the
guaranteed parties whose assets-liability ratio 0
exceed 70% directly or indirectly (E)
Proportion of total amount of guarantee in
877.96
net assets of the Company exceed 50% (F)
Total amount of the aforesaid three
877.96
guarantees (D+E+F)
Explanations on possibly bearing joint and
several liquidating responsibilities for undue N/A
guarantees (if applicable)
Explanations on external guarantee against
N/A
regulated procedures (if applicable)
Explanation on guarantee using the composite way
3. Trust financing
□ Applicable √ Not applicable
The Company had no trust financing in the reporting period.
4. Other significant contract
□ Applicable √ Not applicable
The company had no other significant contract in the reporting period.
XIII. Description of other significant matters
√Applicable □Not applicable
Major events disclosed by the company during the reporting period are indexed as follows:
Matters (name of announcement) Disclosure date Index of information on appointed website
Resignation of the President 2022.1.13 Juchao Website (www.cninfo.com.cn)
Notice on Resolution of 55th Session of 7th BOD 2022.1.19 Juchao Website (www.cninfo.com.cn)
Announcement on Convening the First Extraordinary General
2022.1.19 Juchao Website (www.cninfo.com.cn)
Meeting of Shareholders of 2022
Notice on Receipt of the Decision Letter on Administrative
2022.1.28 Juchao Website (www.cninfo.com.cn)
Supervision Measures from CSRC of Jiangsu
2021 annual performance forecast 2022.1.29 Juchao Website (www.cninfo.com.cn)
st
Announcement on Convening the 1 Extraordinary Shareholders
2022.2.15 Juchao Website (www.cninfo.com.cn)
General Meeting of 2022
th th
Notice on Resolution of 56 Session of 7 BOD 2022.2.15 Juchao Website (www.cninfo.com.cn)
Announcement on the progress of guarantee for Subsidiary 2022.2.24 Juchao Website (www.cninfo.com.cn)
39
Notice on Resolution of 57th Session of 7th BOD 2022.3.25 Juchao Website (www.cninfo.com.cn)
Announcement of the Forecast for Routine Related Transaction for
2022.3.25 Juchao Website (www.cninfo.com.cn)
year of 2022
th th
Notice on Resolution of 58 Session of 7 BOD 2022.4.26 Juchao Website (www.cninfo.com.cn)
th th
Announcement on Resolution of 24 Session of 7 Supervisory
2022.4.26 Juchao Website (www.cninfo.com.cn)
Committee
Summary of Annual Report 2021 2022.4.26 Juchao Website (www.cninfo.com.cn)
Announcement on Provision for Impairment of Assets for 2021 2022.4.26 Juchao Website (www.cninfo.com.cn)
Notice on Correction of Prior-Period Accounting Errors 2022.4.26 Juchao Website (www.cninfo.com.cn)
Announcement on Convening the AGM of 2021 2022.4.26 Juchao Website (www.cninfo.com.cn)
Expected the Continuing Related Transactions with CETC Finance
2022.4.26 Juchao Website (www.cninfo.com.cn)
Co., Ltd for year of 2022
Notice on Accumulated Litigation 2022.4.26 Juchao Website (www.cninfo.com.cn)
First Quarterly Report 2022 2022.4.29 Juchao Website (www.cninfo.com.cn)
Announcement of abnormal fluctuations in stock trading 2022.5.13 Juchao Website (www.cninfo.com.cn)
Announcement on Resolution of AGM of 2021 2022.5.21 Juchao Website (www.cninfo.com.cn)
The 2021 Annual Continuing Supervision Report and Continuing
Supervision Summary Report of the Material Assets Sales and
2022.5.21 Juchao Website (www.cninfo.com.cn)
Related Transaction of Nanjing Putian Telecommunications Co., Ltd
from CITIC Securities
Announcement on convening the 2021 annual performance online
2022.5.26 Juchao Website (www.cninfo.com.cn)
briefing
XIV. Important event of the subsidiaries
□ Applicable √ Not applicable
40
Section VII. Changes in Shares and Particulars about
Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
Unit: share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Public
New reserve
Proportio Bonus Proportio
Amount shares transfer Others Subtotal Amount
n shares n
issued into share
capital
I.
115,000,0 115,000,0
Unlisted 53.49% 53.49%
00 00
shares
1.
115,000,0 115,000,0
Sponsor’s 53.49% 53.49%
00 00
shares
Inclu
ding:
115,000,0 115,000,0
state- 53.49% 53.49%
00 00
owned
shares
Dom
estic legal
person’s
shares
Forei
gn legal
person’s
shares
Other
2.
Collectio
n of
corporate
shares
3.
Internal
employee
shares
4.
Preferred
41
Stock or
other
II. Listed 100,000,0 100,000,0
46.51% 46.51%
shares 00 00
1.
RMB
ordinary
shares
2.
Domestic
100,000,0 100,000,0
ally listed 46.51% 46.51%
00 00
foreign
shares
3.
Foreign
listed
overseas
shares
4.
Other
III. Total 215,000,0 215,000,0
100.00% 100.00%
shares 00 00
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changed
□ Applicable √ Not applicable
Progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of lock-up stocks
□ Applicable √ Not applicable
II. Securities issuance and listing
□ Applicable √ Not applicable
42
III. Amount of shareholders of the Company and particulars about shares holding
Unit: share
Total preference
Total common stock shareholders with voting
shareholders in reporting 7,987 rights recovered at end of 0
period-end reporting period (if
applicable) (see note 8)
Particulars about common shares held above 5% by shareholders or top ten common shareholders
Amount of Information of shares
Amount of
Full name common Amount of pledged, tagged or frozen
Proportion Changes in common
of Nature of shares held restricted
of shares report shares held
Shareholde shareholder at the end common State of
held period without Amount
rs of reporting shares held share
restriction
period
China
State-
Potevio 115,000,00 115,000,00
owned 53.49% 0 0
Company 0 0
corporation
Limited
ShenwanH
ongYuan Foreign
2.45% 5,266,300 -1,150,520 0 5,266,300
(H.K.) corporation
Limited
GUOTAI
JUNAN
SECURITI Foreign
1.38% 2,958,306 163,400 0 2,958,306
ES(HONG corporation
KONG)
LIMITED
Domestic
ZhengEnyu
nature 1.14% 2,449,739 0 0 2,449,739
e
person
Domestic
Sun
nature 0.93% 2,000,000 0 0 2,000,000
Huiming
person
Domestic
GuJinhua nature 0.87% 1,871,371 0 0 1,871,371
person
Guosen
Securities
Foreign
(H.K.) 0.85% 1,828,682 0 0 1,828,682
corporation
Broker Co.,
Ltd.
BOCI
SECURITI Foreign
0.59% 1,266,945 0 0 1,266,945
ES corporation
LIMITED
Domestic
ZhengHon
nature 0.47% 1,002,200 10,300 0 1,002,200
gquan
person
Domestic
Xiang Yan nature 0.42% 905,602 0 0 905,602
person
43
Strategy investor or
general legal person
becoming the top 10
N/A
common shareholders by
placing new shares (if
applicable) (see note 3)
Explanation on associated Among the top ten shareholders, China Potevio is neither a related party nor a person acting in
relationship among the concert with the others. It’s unknown by the Company whether there are related parties or persons
aforesaid shareholders acting in concert among the other shareholders.
Description of the above
shareholders in relation to
delegate/entrusted voting N/A
rights and abstention from
voting rights.
Special note on the
repurchase account among
N/A
the top 10 shareholders (if
applicable) (see note 11)
Particular about top ten shareholders with un-lock up common stocks held
Type of shares
Shareholders’ name Amount of common shares held without restriction at Period-end
Type Amount
Domestical
ShenwanHongYuan ly listed
5,266,300 5,266,300
(H.K.) Limited foreign
shares
Domestical
GUOTAI JUNAN
ly listed
SECURITIES(HONGKO 2,958,306 2,958,306
foreign
NG) LIMITED
shares
Domestical
ly listed
ZhengEnyue 2,449,739 2,449,739
foreign
shares
Domestical
ly listed
Sun Huiming 2,000,000 2,000,000
foreign
shares
Domestical
ly listed
GuJinhua 1,871,371 1,871,371
foreign
shares
Domestical
Guosen Securities (H.K.) ly listed
1,828,682 1,828,682
Broker Co., Ltd. foreign
shares
Domestical
BOCI ly listed
1,266,945 1,266,945
SECURITIES LIMITED foreign
shares
Domestical
ly listed
ZhengHongquan 1,002,200 1,002,200
foreign
shares
44
Domestical
ly listed
Xiang Yan 905,602 905,602
foreign
shares
Domestical
ly listed
Liang Wei 772,800 772,800
foreign
shares
Expiation on associated
relationship or consistent
actors within the top 10
un-lock up common
It is unknown whether the shareholders just mentioned belong to consistent actors or have associated
shareholders and between
relationship.
top 10 un-lock up
common shareholders and
top 10 common
shareholders
Explanation on top 10
common shareholders
N/A
involving margin business
(if applicable) (see note 4)
Whether top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held have
a buy-back agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held of the
Company have no buy-back agreement dealing in reporting period.
IV. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period, found more details in
Annual Report 2021.
V. Changes in controlling shareholders or actual controllers
Change of controlling shareholder during the reporting period
□ Applicable √ Not applicable
The Company had no change of controlling shareholder during the reporting period
Change of actual controller during the reporting period
□ Applicable √ Not applicable
The Company had no change of actual controller during the reporting period
45
Section VIII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period
46
Section IX. Corporate Bonds
□ Applicable √ Not applicable
47
Section X. Financial Report
I. Audit report
Whether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited
II. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
48
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:
49
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:
50
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:
51
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:
52
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:
53
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:
54
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:
55
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:
56
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:
57
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:
58
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:
59
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:
60
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
62
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 –
63
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
64
treatment; The Company is not a joint venture party, according to the extent of the impact on the
joint venture accounting treatment.
(VIII) Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for
payment. Cash equivalents refer to short-term, highly liquid investments that can be readily
converted to cash and that are subject to an insignificant risk of changes in value.
(IX) Foreign currency translation
1. Translation of foreign currency business
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.
65
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
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
66
income. Accumulated gains or losses that initially recognized as other comprehensive income should
be transferred out into profit or loss when the financial assets are derecognized.
3) Equity instrument investments at fair value through other comprehensive income The
Company measures its equity instrument investments at fair value. Dividends obtained (other than
those as part of investment cost recovery) shall be included into profit or loss, while other gains or
losses are included into other comprehensive income. Accumulated gains or losses that initially
recognized as other comprehensive income should be transferred out into retained earnings when the
financial assets are derecognized.
4) Financial assets at fair value through profit or loss 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
67
commitments to provide a loan at a below-market interest rate, which do not fall within the above
category 1) The Company measures its financial liabilities at the higher of: a. the amount of loss
allowances in accordance with impairment requirements of financial instruments; b. the amount
initially recognized less the amount of accumulated amortization recognized in accordance with
“CASBE 14 – Revenues”.
4) Financial liabilities at amortized cost The Company measures its financial liabilities at
amortized cost using effective interest method. Gains or losses on financial liabilities that are
measured at amortized cost and are not part of hedging relationships shall be included into profit or
loss when the financial liabilities are derecognized and amortized using effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
a. the contractual rights to the cash flows from the financial assets expire;
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.
68
If the transfer of an entire financial asset satisfies the conditions for derecognition, the
difference between the amounts of the following two items are included in profit or loss: (1) the
carrying amount of the transferred financial asset as of the date of derecognition; (2) the sum of
consideration received from the transfer of the financial asset, and the accumulative amount of the
changes of the fair value originally included in other 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;
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(3) Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs include
interest rate that is not observable and cannot be corroborated by observable market data at
commonly quoted intervals, historical volatility, future cash flows to be paid to fulfill the disposal
obligation assumed in business combination, and financial forecast developed using the Company’s
own data, etc.
5. Impairment of financial instruments
(1) Measurement and accounting treatment
The Company, on the basis of expected credit loss, recognizes loss allowances of financial
assets at amortized cost, debt instrument investments, contract assets or leases receivable at fair
value through other comprehensive income, loan commitments other than financial liabilities at fair
value through profit or loss, financial guarantee contracts not belong to financial liabilities at fair
value through profit or loss or financial liabilities that arise when a transfer of a financial asset does
not qualify for derecognition or when the continuing involvement approach applies.
Expected credit losses refer to the weighted average of credit losses with the respective risks
of a default occurring as the weights. Credit loss refers to the difference between all contractual
cash flows that are due to the Company in accordance with the contract and all the cash flows that
the Company expects to receive (i.e. all cash shortfalls), discounted at the original effective interest
rate. Among which, purchased or originated credit-impaired financial assets are discounted at the
credit-adjusted effective interest rate.
At the balance sheet date, the Company shall only recognize the cumulative changes in the
lifetime expected credit losses since initial recognition as a loss allowance for purchased or
originated credit-impaired financial assets.
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
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assess whether the credit risk on the financial instrument has increased significantly since initial
recognition. The Company shall measure the loss allowance for the financial instrument at an
amount equal to the lifetime expected credit losses if the credit risk on that financial instrument
has increased significantly since initial recognition; otherwise, the Company shall measure the loss
allowance for that financial instrument at an amount equal to 12-month expected credit loss.
Considering reasonable and supportable forward-looking information, the Company compares
the risk of a default occurring on the financial instrument as at the balance sheet date with the risk
of a default occurring on the financial instrument as at the date of initial recognition, so as to assess
whether the credit risk on the financial instrument has increased significantly since initial
recognition.
The Company may assume that the credit risk on a financial instrument has not increased
significantly since initial recognition if the financial instrument is determined to have relatively low
credit risk at the balance sheet date.
The Company shall estimate expected credit risk and measure expected credit losses on an
individual or a collective basis. When the Company adopts the collective basis, financial instruments
are grouped with similar credit risk features.
The Company shall remeasure expected credit loss on each balance sheet date, and increased or
reversed amounts of loss allowance arising therefrom shall be included into profit or loss as
impairment losses or gains. For a financial asset measured at amortized cost, the loss allowance
reduces the carrying amount of such financial asset presented in the balance sheet; for a debt
investment measured at fair value through other comprehensive income, the loss allowance shall be
recognized in other comprehensive income and shall not reduce the carrying amount of such
financial asset.
(2) Financial instruments with expected credit risk assessed and expected credit losses
measured on a collective basis
Basis for
Method for measuring expected credit
Items determination of
loss
portfolio
Other receivables – Portfolio grouped with Based on historical credit loss
consolidated related parties Nature of experience, the current situation and
Other receivables – Portfolio grouped with receivables the forecast of future economic
deposit receivables conditions, calculate expected credit
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Other receivables – Portfolio grouped with loss through exposure at default and
export tax rebate 12-month or lifetime expected credit
Other receivables – Other portfolio loss rate.
(3) Accounts receivable and contract assets with expected credit losses measured on a
collective basis
1) Specific portfolios and method for measuring expected credit loss
Items Basis for 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
situation and the forecast of future economic
Accounts receivable –Portfolio Consolidated related
conditions, prepare the comparison table of overdue
grouped with consolidated
parties ages and lifetime expected credit loss rate of
related parties
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
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not offset the transferred asset and the associated liability.
(XI) Inventories
1. Classification of inventories
Inventories include finished goods or goods held for sale in the ordinary course of business,
work in process in the process of production, and materials or supplies etc. to be consumed in the
production process or in the rendering of services.
2. Accounting method for dispatching inventories:
Inventories dispatched from storage are accounted for with weighted average method.
3. Basis for determining net realizable value
At the balance sheet date, inventories are measured at the lower of cost and net realizable value;
provisions for inventory write-down are made on the excess of its cost over the net realizable value.
The net realizable value of inventories held for sale is determined based on the amount of the
estimated selling price less the estimated selling expenses and relevant taxes and surcharges in the
ordinary course of business; the net realizable value of materials to be processed is determined based
on the amount of the estimated selling price less the estimated costs of completion, selling expenses
and relevant taxes and surcharges in 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
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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
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
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investment obtained by exchange of non-monetary assets, the initial investment cost shall be
determined in accordance with relevant provisions of Accounting Standards for Business Enterprises
“CASBE 7 – Non-cash Assets Exchange”.
2. Subsequent measurement and recognition method of profit or loss
For long-term equity investments with control relationship, it is accounted for with cost method;
for long-term equity investments with joint control or significant influence relationship, it is
accounted for with equity method. The company for equity investment consortium, one part of
through risk investment institutions, mutual funds, trust companies or similar subject, including cast
the insurance fund, indirect holding, whether the above 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.
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(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
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,
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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
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
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judge the period when intangible assets bring economic benefits to the company.
At the end of each year, the service life of intangible assets with uncertain service life is
reviewed, mainly in a bottom-up way. The departments related to the use of intangible assets
conduct basic review to evaluate whether the judgment basis of uncertain service life has changed.
3. Specific criteria for research and development stages of internal research and development
projects, as well as specific criteria for development stage expenditures to meet the capitalization
conditions
Expenditure in the research phase of internal research and development projects shall be
recorded into current profits and losses when incurred; The expenditure in the development stage
shall be transferred to the accounting of intangible assets if it meets the conditions of being
recognized as intangible assets.
(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
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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.
(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.
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2. Post-employment benefits
During the accounting period when employees provide services, the payable amount calculated
according to the set depository plan shall be recognized as liabilities and recorded into the current
profit and loss or the cost of relevant assets. According to the formula determined by the expected
cumulative benefit unit method, the welfare obligation arising from the set benefit plan shall be
attributed to the period of service provided by the employee, and shall be included in the current
profit and loss or the cost of relevant assets.
3. Termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability for
termination benefits, with a corresponding charge to profit or loss at the earlier of the following
dates: a. when the Company cannot unilaterally withdraw the offer of termination benefits because
of an employment termination plan or a curtailment proposal; or b. when the Company recognizes
cost or expenses related to a restructuring that involves the payment of termination benefits.
4. Other long-term employee benefits
Other long-term employee benefits provided by the company to the employees that meet the
conditions for setting up an escrow plan shall be dealt with in accordance with the provisions on
setting up an escrow plan; In addition, identify and measure other long-term employee benefit net
liabilities or net assets according to the relevant provisions of the defined benefit plan.
(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
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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.
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.
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2. Revenue measurement principle
(1) Revenue is measured at the amount of the transaction price that is allocated to each
performance obligation. The transaction price is the amount of consideration to which the Company
expects to be entitled in exchange for transferring goods or services to a customer, excluding
amounts collected on behalf of third parties and those expected to be refunded to the customer.
(2) If the consideration promised in a contract includes a variable amount, the Company shall
confirm the best estimate of variable consideration at expected value or the most likely amount.
However, the transaction price that includes the amount of variable consideration only to the extent
that it is high probable that a significant reversal in the amount of cumulative revenue recognized
will not occur when the uncertainty associated with the variable consideration is subsequently
resolved.
(3) In the circumstance that the contract contains a significant financing component, the
Company shall determine the transaction price based on the price that a customer would have paid
for if the customer had paid cash for obtaining control over those goods or services. The difference
between the transaction price and the amount of promised consideration is amortized under effective
interest method over contractual period. The effects of a significant financing component shall not
be considered if the Company expects, at the contract inception, that the period between when the
customer obtains control over goods or services and when the customer pays consideration will be
one year or less.
(4) For contracts containing two or more performance obligations, the Company shall
determine the stand-alone selling price at contract inception of the distinct good underlying each
performance obligation and allocate the transaction price to each performance obligation on a
relative stand-alone selling price basis.
3. Revenue recognition method
The Company’s main product is the Video conference products, integrated wiring products, low
voltage distribution products, 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
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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.
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
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does not exceed one year, it shall be included in the current profit and loss at the time of
occurrence.
If the carrying value of the asset related to the contract cost is higher than the difference
between the following two items, the Company will calculate and withdraw the excess part of the
impairment reserve and recognize it as the asset impairment loss:
1. The remaining consideration expected to be obtained from the transfer of commodities
related to the asset;
2.Estimate the cost to be incurred for the transfer of the related goods.
If the difference between the foregoing two items is higher than the carrying value of the asset
due to the change of the factors of impairment in the previous period, it shall revert to the original
provision for asset impairment and be included in the current profit and loss, provided that the
carrying value of the asset after the reversal shall not exceed the carrying value of the asset on the
date of reversal assuming no provision for impairment.
(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
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asset, and the rest shall be regarded as the government subsidy related to the income. It is difficult to
distinguish between government subsidies as a whole as government subsidies related to benefits.
Government subsidies related to assets are recognized as deferred income. The amount recognized as
deferred income shall be recorded into current profits and losses in a reasonable and systematic
manner during the useful life of the relevant asset.
Government subsidies other than those related to assets shall be recognized as government
subsidies related to earnings. If the government subsidies related to earnings are used to compensate
the relevant expenses or losses of the enterprise in the subsequent period, they shall be recognized as
deferred earnings and recorded into the current profit and loss during the period when the relevant
expenses are recognized. If it is used to compensate the relevant expenses or losses already incurred
by the enterprise, it shall be directly recorded into the current profit and loss.
If the company obtains a policy preferential loan discount interest, and the finance allocates the
discount interest funds to the lending bank, and the lending bank provides the loan to the Company
at the policy preferential interest rate, the actual amount of the loan is taken as the recorded value of
the loan, and the relevant borrowing costs are calculated according to the loan principal and the
policy preferential interest rate; If the finance directly appropriates the discount interest funds to the
Company, the Company will offset the corresponding discount interest against the relevant
borrowing costs.
2. Confirmation of government subsidies
Government grants are recognized when the conditions attached to government grants are met
and can be received. The government subsidy measured according to the amount receivable shall be
confirmed at the end of the period when there is solid evidence that it can meet the relevant
conditions stipulated in the financial support policy and is expected to receive the financial support
funds. Government subsidies other than those measured according to the amount receivable shall be
recognized when the amount of subsidies is actually received.
(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
85
base being able to be determined according to tax laws) and in accordance with the tax rate
applicable to the period during which the assets are expected to be recovered or the liabilities are
expected to be settled.
2. A deferred tax asset is recognized to the extent of the amount of the taxable income, which it
is most likely to obtain and which can be deducted from the deductible temporary difference. At the
balance sheet date, if there is any exact evidence that it is probable that future taxable income will be
available against which deductible temporary differences can be utilized, the deferred tax assets
unrecognized in prior periods are recognized.
3.Recognize deferred tax liabilities for taxable temporary differences related to investments in
subsidiaries and associates, unless the Company has control over the timing of the reversal of the
temporary differences and it is likely that the reversal will not occur in the foreseeable future. For
deductible temporary differences related to investments in subsidiaries and associates, deferred tax
assets are recognized when such temporary differences are likely to be reversed in the foreseeable
future and the amount of taxable income used to offset the deductible temporary differences is likely
to be obtained in the future.
(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
86
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
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
87
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
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
88
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
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
Value-added tax and taxable service income calculated in accordance with the
13%、6%、5%、3%
(VAT) provisions of 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
Turnover tax payable 7%
maintenance and
89
Taxes Tax bases Tax rates
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%
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
90
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
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
91
Items Closing balance Opening balance
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
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
Items Closing balance
92
Items Closing balance
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
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
been transferred
end of the period of 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
93
Ages Closing balance Opening balance
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
(%)
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
(%)
Unable
Dongpo Xi Laos Co., Ltd. 19,708,086.54 19,708,086.54 4 to 5 years 100.00
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
2,126,799.56
Group Co., Ltd
Unable to
Other 16,636,528.92 16,636,528.92 2-5 years 100.00
recover
94
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
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 balance of Provision for
Debtors Book balance
accounts receivable bad debts
(%)
Dongpo Xi Laos Co., Ltd. 19,708,086.54 3.35 19,708,086.54
95
Proportion to the
total balance of Provision for
Debtors Book balance
accounts receivable bad debts
(%)
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 Co.,
11,401,797.72 1.94 114,017.98
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
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
1,425,683.28 5.41
Machinery 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
96
Items Closing balance Opening balance
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
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
97
Items Phase I Phase II Phase III Total
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
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
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
the total
Nature of Closing Provision for
Debtors Ages balance of
receivables balance bad debts
other
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 Security
2,245,100.00 4-5 years 938,000.00； 4.04 1,953,355.00
deposit
Company 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 Temporary
3-4 years 179,184.19；
PutianKechuang payment 805,545.63 1.45 805,545.63
Over 5 years 626,361.44
receivable
Industry Co.,Ltd.
98
Proportion to
the total
Nature of Closing Provision for
Debtors Ages balance of
receivables balance bad debts
other
receivables (%)
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
consignment for 1,289,862.42 804,691.99 485,170.43 1,242,747.33 804,691.99 438,055.34
sales
Contract
performance 2,568,835.66 2,568,835.66
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
99
Items Closing balance Opening balance
Total 4,784,402.16 7,763,000.07
100
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
101
11. Other equity instrument investments
The reason
Amount
designated as
of other
measuremen Other
compreh
The t at fair value comprehensi
The ensive
Closing Opening Dividend cumula and its ve income is
Items income tive
cumulative income
change transferred
balance balance loss transferr
gains included in to retained
ed to
other earnings
retained
comprehensi
earnings
ve 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
102
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
103
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
370,885.18 184,349.93 175,408.71 11,126.54
equipment
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
104
Items Land use right Software Total
3. Decrease
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
105
Maturity years Closing balance Opening balance Remarks
Total 206,756,188.18 247,021,502.77
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.,Ltd. 6,073,776.29 Not yet settled
Total 92,486,907.92
21. Contract liabilities
Items Closing balance Opening balance
Payment for goods 19,029,759.47 18,884,024.60
106
22. Employee benefits payable
(1) Details
Opening
Items Increase Decrease Closing 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
107
Items Closing balance Opening balance
Individual income tax 344,984.34 298,962.05
Urban maintenance and construction tax 414,851.23 166,309.25
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
108
Movements
Opening Issue of Reserve Closing
Items Bouns
balance new transferred to Others Subtotal balance
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
109
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
110
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
-341,446,683.34 -202,680,309.64
period
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
111
Preceding period
Items Current period cumulative
comparative
Land use tax 241,844.10 253,268.80
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
112
Preceding period
Items Current period cumulative
comparative
Material use 364,611.56 684,146.16
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
Items
cumulative comparative to 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 3,100.00 Related to earnings
enterprise 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
113
40. Credit impairment loss
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
12,812.65 12,812.65
and 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
114
Preceding period
Items Current period cumulative
comparative
Deferred income tax expense
Others 2,245,778.53
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 14,109,788.35
recognized 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 cash payments related to financing activities
115
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 4,725,569.41 3,919,944.42
depreciation of 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
116
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
117
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
Manufacture 45.77 Set up
Intelligent Building Ltd. City City
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
Nanjing PutianDatang Merger of
Nanjing Nanjing
Information Electronic Manufacture 40.00 enterprises
City City
Co., Ltd. under
118
Subsidiaries Place of Main Business Holding proportion (%) Acquisition
registration operating nature Method
place different
control
Nanjing Putian
Nanjing Nanjing
Communication Manufacture 70.00 Set up
City City
Technology Co., Ltd.
Chongqing Chongqing
Chongqing Puhua
City City
Information Technology Manufacture 100.00 Set up
Chongqin g Chongqin
Co., Ltd
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.
119
2. Significant not wholly-owned subsidiaries
The serial Holding proportion of non- Non-controlling shareholders’ Dividend declared to non- Closing balance of non-controlling
Subsidiaries
number controlling shareholders profit or loss controlling shareholders 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.
120
(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
121
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.
122
3. The beginning balance and ending balance of loss provision for financial instruments are
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
123
Company has obtained credit limit from several commercial Nanjing Putian Telecommunications Co.,
Ltd. 2021 Annual Report 187 banks to meet working capital requirements and expenditures.
Financial instruments classified based on remaining time period till maturity
Closing balance
Items 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
124
financial instruments and floating interest rate financial instruments based on the market
environment, and maintains a proper financial instruments portfolio through regular review and
monitoring. The Company’s interest risk relates mainly to bank borrowings with floating interest
rate
2. Foreign currency risk
Foreign 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
125
(I) Parent company
Registered
Voting right
capital 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
190,305.00 53.49 53.49
Company Limited Economy Zone, Haidian industry
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.,Ltd. An affiliated company of the ultimate controlling party
Hebei Far-East Communication System
An affiliated company of the ultimate controlling party
Engineering Co.,Ltd.
Nanjing Rail Transit System Engineering Co., Ltd An affiliated company of the ultimate controlling party
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.,Ltd. An affiliated company of the ultimate controlling party
PUTIAN EASTCOM COMMUNICATIONS GROUP
An affiliated company of the ultimate controlling party
Co.,Ltd.
Nanjing Putian Communication Technology
An affiliated company of the ultimate controlling party
Industrial Park Co.,Ltd.
Putian Rail Transit Technology (Shanghai) Co. An affiliated company of the ultimate controlling party
126
Related parties Relationships with the Company
LTD
Potevio Telecommunications Co.,Ltd. An affiliated company of the ultimate controlling party
Putian Information Technology Institute
An affiliated company of the ultimate controlling party
Co.,Ltd.
Shanghai Potevio Network Technoligies Limited An affiliated company of the ultimate controlling party
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 GROUP
An affiliated company of the ultimate controlling party
Co.,Ltd.
China Electronics Laisi Information System Co.,
An affiliated company of the ultimate controlling party
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
labor 129,056.58
Technology Industrial Park Co.,Ltd. services
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
Selling goods Selling goods 783,202.90
System 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.
127
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 and
Nanjing Postel Swanking Electrical
and providing providing 10,619.47 175,207.98
Appliance Technical Co.,Ltd
services services
Nanjing Putian Communication Providing Providing
4,424.78 129,056.58
services services
Technology Industrial Park Co.,Ltd.
Beijing PutianTaili Terminal and
Telecommunications Technology Selling goods supporting 3,150.44
facilities
Co.,Ltd.
China Electronics Laisi Information
Selling goods Selling goods 592.04
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
Telecom
Wuhan Putian New Energy Co., Ltd Selling goods 16,088.49
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 Current period Preceding period
company
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
128
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
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 Communication
7,931,257.03 101,432.57 7,954,628.78 210,528.84
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
4,546.26 1,363.88
Technologies Co.,Ltd.
Beijing taiko information 182,680.00 18,268.00
129
Closing balance Opening balance
Items Related parties Book Provision for Provision for bad
Book balance
balance bad debts debts
system technology corporation
limited
Subtotal 35,091,940.03 15,644,885.65 33,933,892.17 14,037,548.15
Advances
paid
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
Telecommunications 28,912,122.71 28,912,122.71 28,912,122.71 28,912,122.71
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., Ltd. 20,568,725.66 20,258,725.66
China Potevio Company Limited 18,016,137.43 18,016,137.43
Nanjing Hikvision Digital Technology Co., Ltd 72,837.90
Nanjing Putian Communication Technology
25,000.00 25,000.00
Industrial Park Co.,Ltd.
Nanjing Postel Swanking Electrical Appliance
1,200.00 19,580.00
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
130
Items Related parties Closing balance Opening balance
Other payables
Nanjing Putian Communication Technology
3,700,486.23 3,805,596.06
Industrial Park Co.,Ltd.
Putian Information Technology Institute
400,000.00 400,000.00
Co.,Ltd.
Potevio Telecommunications Co.,Ltd. 200,000.00 200,000.00
China Putian Corporation Co.,ltd. 7,430,000.00 9,580,000.00
China Potevio Company Limited 231,015.28
Nanjing Putian Information Technology
2,758,432.56 3,042,825.53
Co.,Ltd.
SEI-Nanjing Putian Optical Network Co., Ltd. 83,000.00
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
131
operations and cost of main operations are those generated or incurred by each product segment.
2. Financial information of reportable segments
Products segment
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
132
Closing balance
Book balance Provision for bad debts
Categories
Provision
% to
Amount Amount proportion
total
(%)
Total 263,655,713.96 100.00 150,526,158.09 57.09
(Continued)
Opening balance
Book balance Provision for bad debts
Categories
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
Combination 2: 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
(%)
Unable to
Dongpo Xi Laos Co., Ltd. 19,708,086.54 19,708,086.54 4-5 years 100.00
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
133
Closing balance Opening balance
Ages Provision Provision
Provision for Provision for
Book balance proportion Book balance proportion
bad debts bad debts
(%) (%)
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 Cancel Closing
Categories To withdraw or Other
balance Accrual after balance
turn back changes
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
Provision for bad
Debtors Book balance balance of
debts
accounts
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
134
Items Closing balance Opening balance
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
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 losses (credit not
losses (credit impaired)
credit losses impaired)
135
Items Phase I Phase II Phase III Total
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
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
136
Proportion to
the total
Nature of Closing balance of Provision for bad
Debtors Ages
receivables balance other debts
receivables
(%)
Nanjing Nanman Security
26,867,500.00 Within 1 year 36.40
Electric Co., LTD deposit
Within 1 year
287,612.42；
1-2 years
NANJING PUTIAN 504,197.5；
Rent, water 2-3 years
TELECOMMUNICATIONS 2,862,862.93 3.88
and electricity 404,315.31；
CO.,LTD. 3-4 years
1,449,390.56；
4-5 years
217,347.14
4-5 years
China Potevio Company Security 938,000.00；
1,938,000.00 2.63 1,938,000.00
Limited deposit Over 5 years
1,000,000.00
3-4 years
Temporary
Beijing PutianKechuang 179,184.19；
payment 805,545.63 1.09 805,545.63
Industry Co.,Ltd. Over 5 years
receivable
626,361.44
Total 61,386,031.27 83.17 31,655,668.34
(III) Long-term equity investments
Closing balance Opening balance
Provision
Items 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 57,831,012.71 57,831,012.71
137
Provision
Closing
for
balance of
Opening Closing impairment
Investees Increase Decrease provision
balance balance made in
for
current
impairment
period
Co., 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 Technology Co., 2,000,000.00 2,000,000.00
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.
138
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.
139
(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 method Integrated wiring
conferencing distribution products and Total
(time) product
products products others
Confirm at sceratin point of
50,038,373.04 50,038,373.04
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 under
9,153,400.00 9,153,400.00
cost method
Investment income from long-term equity investments under
-0.99 -1.19
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 the asset
59,868.36
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 unified 192,494.49
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
8. Provisions for impairment of assets due to force majeure factors, such as natural disasters
9. Debt restructuring gains and losses -4,791.06
140
Items Amount Remarks
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 profit and loss, as well as the
337,205.48
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 loss -6,085,545.19
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 ordinary shares -51.49 -16.14 -0.13 -0.14 -0.13 -0.14
Net profit attributable to shareholders of ordinary shares
-45.63 -16.29 -0.11 -0.14 -0.11 -0.14
after deducting non-recurring profit or loss
Board of Directors of
Nanjing Putian Telecommunications Co., Ltd.
23 August 2022
141
