Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
Nanjing Putian Telecommunications Co., Ltd.
Semi-annual Report for 2023
[August 2023]
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Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
Section I Important Notes, Contents and Interpretations
The Board of Directors, Board of Supervisors, directors, supervisors and
senior executives of the Company guarantee the truthfulness, accuracy and
completeness of the Semi-annual Report, and ensure that there are no false
records, misleading statements or major omissions, and they will be held
individually and jointly liable for any legal liability that may arise.
Li Langping, the person in charge of the Company, Liao Rongchao, the person
in charge of accounting, and Liao Rongchao, the person in charge of the
accounting firm (accounting supervisor), declare that they guarantee the
truthfulness, accuracy and completeness of the financial report represented in
this Semi-annual Report.
All directors attended the board meeting at which this Semi-annual Report
was considered.
If this Semi-annual Report contains any forward-looking statements
concerning future plans such as the Company's business plan, such statements
are not intended to constitute a substantive commitment to investors, and
investors and related parties should exercise sufficient risk awareness and
carefully consider the differences among plans, forecasts, and commitments.
In "Section III Discussion and Analysis of the Management Team" of this
report, the Company has analyzed the risk factors that may adversely affect
the realization of the Company's future development strategies and business
objectives. We encourage investors to review this section carefully.
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The Company planed not to distribute cash dividends and bonus shares, or
increase its share capital from provident fund.
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Contents
Section I Important Notes, Contents and Interpretations.................................................................................... 2
Section II Company Profile and Main Financial Indicators ................................................................................ 7
Section III Discussion and Analysis of the Management Team ......................................................................... 11
Section IV Corporate Governance ....................................................................................................................... 22
Section V Environmental and Social Responsibilities ........................................................................................ 24
Section VI Important Matters .............................................................................................................................. 26
Section VII Changes in Shares and Shareholders............................................................................................... 85
Section VIII Information on Preferred Shares ................................................................................................... 90
Section IX Information on Bonds ......................................................................................................................... 91
Section X. Financial ReportI. ............................................................................................................................... 92
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Contents of Documents for Future Reference
(I) Financial statements containing the signatures and seals of the person in charge of the Company, the person in charge of
accounting and the person in charge of the accounting firm (accounting supervisor).
(II) The originals of all Company documents and announcements publicly disclosed during the reporting period.
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Interpretations
Term means Interpretation
Nanjing Putian Telecommunications
The Company, Company means
Co., Ltd.
China Electronics Technology Group
CETC means
Corporation
CETC Glarun means CETC Glarun Group Co., Ltd.
Nanjing Southern Telecom Co., Ltd. (a
Southern Telecom means
holding subsidiary of the Company)
Nanjing Putian Telege Intelligent
Telege means Building Ltd. (a holding subsidiary of
the Company)
Nanjing Nanman Electrical Co., Ltd. (a
Nanman Electrical means wholly-owned subsidiary of the
Company)
Nanjing Putian Datang Information
Putian Datang means Electronics Co., Ltd. (a holding
subsidiary of the Company)
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Section II Company Profile and Main Financial Indicators
I. Company profile
Stock abbreviation NTX B Stock code 200468
Stock exchange Shenzhen Stock Exchange
Chinese name of the
南京普天通信股份有限公司
Company
Chinese abbreviation of the
南京普天
Company (if any)
English name of the Company
Nanjing Putian Telecommunications Co., Ltd.
(if any)
Legal representative Li Langping
II. Contact persons and contact information
Secretary of the Board of Directors Securities representative
Name Li Jing Dai Yuan
Putian Technology Pioneer Park, No.8 Putian Technology Pioneer Park, No.8
Address Fenghui Avenue, Yuhuatai District, Fenghui Avenue, Yuhuatai District,
Nanjing City, Jiangsu Province Nanjing City, Jiangsu Province
Tel. 025-69675805 025-69675865
Fax 025-52416518 025-52416518
E-mail lijing@postel.com.cn daiyuan@postel.com.cn
III. Others
1. Company’s contact information
Whether the Company's registered address, office address and postal code, company website and e-mail address changed during
the reporting period
□Applicable Not applicable
The Company’s registered address, office address and postal code, website and e-mail address remained unchange during the
reporting period. For details, please refer to the Annual Report for 2022.
2. Location of information disclosure and provision
Whether the location of information disclosure and provision changed during the reporting period
□Applicable Not applicable
The websites and names of the stock exchange and the media where the Company disclosed the Semi-annual Report, and the
location where the Company provided the Semi-annual Report remained unchanged during the reporting period. For details, please
refer to the Annual Report for 2022.
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3. Other relevant information
Whether other relevant information changed during the reporting period
Applicable □Not applicable
The controlling shareholder of the Company was changed from China Potevio Information Industry Co., Ltd. to CETC Glarun
Group Co., Ltd. For details, please refer to the Announcement on Completing Transfer Registration and Changing Controlling
Shareholder for Free Transfer of State-owned Shares disclosed by the Company in Securities Times and CNINFO on April 18,
2023.
IV. Main accounting data and financial indicators
Does the Company need to retroactively adjust or restate the accounting data of previous years
□Yes No
Amount of the reporting
Amount of the reporting Amount of the same period of period increased or decreased
period the previous year over the same period of the
previous year (%)
Operating revenue (yuan) 392,539,877.69 407,312,616.35 -3.63%
Net profit attributable to
shareholders of the listed -10,961,896.92 -27,711,297.33 60.44%
company (yuan)
Net profit attributable to
shareholders of the listed
company after deducting non- -12,523,737.97 -24,553,468.90 48.99%
recurring gains and losses
(yuan)
Net cash flow from operating
-86,082,483.47 -95,863,997.56 10.20%
activities (yuan)
Basic earnings per share
-0.05 -0.13 61.54%
(yuan/share)
Diluted earnings per share
-0.05 -0.13 61.54%
(yuan/share)
Weighted average return on
-66.38% -51.49% -14.89%
net assets
Amount at the end of the
Amount at the end of the Amount at the end of the reporting period increased or
reporting period previous year decreased over the end of the
previous year (%)
Total assets (yuan) 881,803,649.04 891,390,055.62 -1.08%
Net assets attributable to
shareholders of the listed 11,033,439.36 21,995,336.28 -49.84%
company (yuan)
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V. Differences in accounting data under domestic and overseas accounting standards
1. Differences in net profits and net assets in the financial reports disclosed in accordance with
international accounting standards and in accordance with Chinese accounting standards
□Applicable Not applicable
During the reporting period, there is no difference between the net profit and net assets in the financial reports disclosed in
accordance with international accounting standards and Chinese accounting standards.
2. Differences in net profits and net assets in the financial reports disclosed in accordance with overseas
accounting standards and in accordance with Chinese accounting standards
□Applicable Not applicable
During the reporting period, there is no difference between the net profit and net assets in the financial reports disclosed in
accordance with overseas accounting standards and Chinese accounting standards.
VI. Items and amounts of non-recurring profits and losses
Applicable □Not applicable
Unit: yuan
Item Amount Description
Profits and losses on disposal of non-
current assets (including the write-off
-67,389.77
part of the provision for impairment of
assets)
Government subsidies included in the
profits and losses of the current period
(except the government subsidies that are
closely related to the normal operation of
the Company, conform to the national 838,180.23
policies and regulations, and are
continuously enjoyed according to a
certain standard quota or quantitative
amount)
Profit and loss of debt restructuring -88,555.00
Reversal of impairment provision for
receivables separately tested for 1,457,921.68
impairment
Other non-operating revenue and
-301,000.94
expenses other than the above items
Less: Affected amount of revenue tax 64,780.32
Affected amount of minority
212,534.83
shareholders' equity (after tax)
Total 1,561,841.05
Details of other profit and loss items that comply with the definition of non-recurring profit and loss:
□Applicable Not applicable
The Company had no other profit and loss items that comply with the definition of non-recurring profit and loss
Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No.1 on Information
Disclosure by Companies with Public Securities Offerings - Non-recurring Profits and Losses as recurring profit and loss items
□Applicable Not applicable
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The Company does not define the non-recurring profit and loss items listed in the Explanatory Announcement No.1 on
Information Disclosure by Companies with Public Securities Offerings as recurring profit and loss items.
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Section III Discussion and Analysis of the Management Team
I. Major business of the Company during the reporting period
During the first half of the year, China's industrial economy exhibited a robust trajectory of recovery. Within
this context, the information and communication sector demonstrated consistent growth. The continuous
augmentation of the role of information and communication in empowering various sectors remained a notable
trend. This development was underscored by the nation's unwavering commitment to fortifying new-type
information infrastructure and propelling a profound integration of the digital economy and the real economy.
In February 2023, China promulgated the Comprehensive Layout Plan for Digital China Construction. Within
this strategic blueprint, the pivotal role of "constructing Digital China" was accentuated as an essential driver
for advancing China's unique modernization in the digital era. Further underpinning this approach was the
formulation of a "2522" comprehensive framework, which serves as a visionary guidepost steering the
trajectory of China's digital economic growth in the foreseeable future.
During the reporting period, the Company steadfastly adhered to the principles embodied in Xi Jinping’s
Thought on Socialism with Chinese Characteristics for a New Era. We wholeheartedly embraced the tenets of
the 20th CPC National Congress, ensuring unwavering alignment with the strategic decisions and deployments
delineated by the Group's leading Party group and the Party Committee of CETC Glarun. Prioritizing stability
and seeking progress while maintaining stability, we consistently enforced the mandates of "deepening reforms
and pursuing integrated development.” With an unwavering commitment to refining operational excellence, we
confronted and resolved legacy challenges while fostering innovation and breakthroughs amid transformative
endeavors. We strove to comprehensively enhance our operational management and our ability to prevent and
mitigate significant risks, and tried to chart a trajectory toward the robust, sustained, and resilient growth of the
Company.
1. The Company remained steadfast in its dedication to its primary responsibilities and core business while
actively exploring both internal and external markets.
It continually fortified its core business operations, with a deepened focus on specialized sectors. Leveraging
existing advantageous industries, the Company placed a prominent emphasis on bolstering the complementary
provisioning capability of network and information systems. This, in turn, propelled the enhancement of the
Company's overarching capability to provide solutions integrating “products + technology + services".
Furthermore, the Company actively fostered exchanges with pertinent entities within the Group, integrated
resources and improved the synergetic development of CETC’s member entities upstream and downstream the
industrial chain. Resultantly, the Company has established a multitude of business integration models, such as
systematic support, product sales, and targeted R&D, further augmenting its competitive standing in the
industry and market.
Integrated cabling products: The Company adopted a business model centered on “products + channels,"
leveraging existing distribution channels. A special focus was directed towards forging into industries like
military, finance, civil aviation, and healthcare. Throughout the reporting period, the Company played a pivotal
role in a number of major projects, including those of Southern Theater Command Center, Civil Aviation Flight
University of China, Guangxi Bank of Communications, Yulong Petrochemical, Anzhen Hospital, and modular
machine rooms.
Video conferencing products: The Company applied a sales model propelled by a dual approach of "product
distribution + direct orders from projects". This strategic route revolved around the information-based audio-
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video integration. With video conferencing and audio-video integration serving as the two focal business
domains, the Company delved deeply into industries such as finance, central enterprises, healthcare institutions
and government, and consistently enhanced core competitiveness through independent innovation. During the
reporting period, the Company secured substantial contracts, including the information technology upgrade of
China Mobile Group Guangdong Company Limited, the procurement of renewal insurance system for China
Postal Savings Bank, the procurement of triage guidance and medical communication systems for Sihong
People's Hospital, and the CNNC Beijing Science Park.
Intelligent electrical products: The Company made substantial inroads into sectors such as railway
transportation, airports, and national priority endeavors. This pursuit sought to bolster the Company's market
presence within the broader social landscape. Enhancements in rail project quality were evident, as exemplified
by the successful bids for Beijing Metro Line 17 and the Shanghai Metro Link Line during the reporting period.
Furthermore, proactive engagement with prominent civil market integrators yielded success, with the Company
securing the construction project for the Xianlin new premises of the 28th Research Institute of CETC.
Smart lighting products: A strategic thrust was channeled towards securing contracts with central enterprises.
Notable accomplishments within the reporting period encompassed projects such as the Jiangning Street Lamp
Renovation Project, the Phase 3 of Jiangning Solar Street Lamp Project, the Smart Street Lamp Renovation in
Shangluo, Shaanxi, and the Specialized Solar Monitoring Controller Project.
2. The Company pursued innovation-driven strategies with utmost vigor, steadily enhancing the core
competitiveness of its products.
It actively pursued innovation-driven strategies, consistently amplifying the digitalization and intelligent
transformation of its traditional product portfolio. It meticulously applied sustained refinement process to its
core products such as the IoT centralized control platforms, smart conference management platforms, smart
terminal distribution cabinets, smart lamp posts, and integrated cabling systems for industrial Internet. These
strategic enhancements elevated the Company's overall influence within traditional customer bases spanning
central enterprises, financial institutions, and rail transportation companies.
The Company constantly strengthened the construction of innovation platforms, and accelerated the application
of projects such as management system projects for integrating IT application with industrialization, the third-
level certificate of information technology service standards, and the municipal-level enterprise technology
center.
It also strengthened the cooperation among the industry, universities and research institutions. In collaboration
with Nanjing University of Information Science and Technology, the Company developed the "encryption
watermark" technology, which enables the implementation of covert image leakage tracking within auxiliary
video streams in video conferencing systems. The Company has completed the R&D of the IoT version of grid-
powered complementary controllers, and the resultant products have already been introduced to the market.
By synergizing software R&D resources and leveraging existing business foundations, the Company
strategically exploited national support policies for the software industry, thereby accelerating the its
transformation towards a technology-oriented company.
During the reporting period, the Company witnessed the addition of 4 newly authorized patents and 4 software
copyrights. Furthermore, it submitted applications for 10 patents and 3 software copyrights.
3. The Company deepened reform for integrated development and accelerated transformative upgrades.
During the reporting period, it made substantial progress in bolstering its Party construction efforts, effectively
harnessing them to provide guidance. Additionally, the Company reinforced the role of strategic planning as a
driving force to propel the realization of strategic objectives. It delved into comprehensive institutional and
systemic reforms, leading to the recalibration of its industrial framework. The Company also intensified
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financial foundation management, strengthening control over accounts receivable and inventory debts.
Furthermore, it enhanced asset management to accelerate the process of reactivating dormant assets.
II. Analysis of core competitiveness
1. Marketing ability
The Company possesses a well-established market network and extensive industry experience, having
provided long-term services to customers across a diverse range of sectors. These include central enterprises,
government agencies, rail transit companies, financial institutions, healthcare providers, electric power
companies, and internet-based businesses.
2. Product competitiveness
The Company staunchly adheres to an innovation-driven strategy, systematically intensifying the R&D of
novel products to elevate its core competencies. It integrated cabling products are positioned in the high-end
market. It provides premium-quality solutions for integrated cabling and intelligent building systems.
Exhibiting robust competitive advantages in market sales and product technical standards, these products have
emerged as formidable substitutes for international brands. The Company has more than 20 years of rich
professional and technical service experience in the field of video conferencing; By virtue of independent
innovation, its self-developed products have been widely recognized by customers such as central enterprises,
government, financial institutions, and medical institutions, and its ability of sustainable development has been
further enhanced. Its intelligent electrical products find extensive application in airports, terminals, rail
transportation and metallurgy, consistently maintaining a prominent position in the rail transportation sub-
sector. Its market standing is attributed to the high professionalism and strong competitiveness of its products.
The Company has a longstanding commitment to cultivating expertise in the domains of intelligent lighting and
energy-efficient controller systems. This dedication has culminated in the establishment of an integrated
ecosystem that encompasses R&D, manufacturing, and large-scale sales. The smart lighting products are
incorporated into integrated solutions of advanced IoT-based grid-connected street lamp controllers for
customers.
3. Brand influence
The Company is an information and communications subsidiary of a central enterprise. Its communication
infrastructure products have gained a strong brand reputation in the domestic fiber optical communications
industry, particularly in the area of network connection products. Putian Telege has earned the prestigious
distinction of being recognized as a famous brand of integrated cabling products in Jiangsu Province, as well as
a renowned provincial trademark. Consistently ranking among the top ten domestic comprehensive cabling
brands for over a decade, these products have positioned themselves as industry leaders poised to surpass
foreign counterparts. Southern Telecom takes pride in an impressive array of video conferencing products,
including the "Ruijing" and "Ruizhi" series. These offerings have garnered significant recognition within the
domestic market; Nanman Electrical is a prominent brand within the rail transportation industry.
III. Analysis of main business
Overview
See “I. Major business of the Company during the reporting period” for details.
Year-on-year changes in major financial data
Unit: yuan
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Amount of the same
Amount of the Year-on-year increase
period of the previous Reasons for changes
reporting period or decrease
year
Operating revenue 392,539,877.69 407,312,616.35 -3.63%
Operating cost 303,199,007.67 323,444,209.14 -6.26%
Sales expenses 40,563,329.57 40,632,210.06 -0.17%
Management fees 32,677,949.24 28,299,430.10 15.47%
Financial expenses 3,758,865.48 4,638,360.06 -18.96%
The deducted amount
of R&D expenses of
some subsidiaries
Income tax expenses 511,674.73 3,414,845.68 -85.02%
increased, while the
income tax expenses
decreased
Investment in R&D 19,422,168.02 23,642,718.55 -17.85%
Net cash flow from
-86,082,483.47 -95,863,997.56 10.20%
operating activities
No trading financial
Net cash flow from assets were recovered
-1,411,175.50 18,980,463.81 -107.43%
investing activities during the reporting
period
Borrowings obtained in
Net cash flow from
45,012,616.96 20,037,650.77 124.64% the current period
financing activities
increased
Net increase in cash
-42,448,021.92 -56,826,696.67 25.30%
and cash equivalents
Significant changes occurred in the profit composition or profit sources of the Company during the reporting period
□Applicable Not applicable
No significant changes occurred in the profit composition or profit sources of the Company during the reporting period
Composition of operating revenue
Unit: yuan
Amount of the same period of the
Amount of the reporting period Year-on-year
previous year
increase or
Proportion in Proportion in decrease
Amount Amount
operating revenue operating revenue
Total operating
392,539,877.69 100% 407,312,616.35 100% -3.63%
revenue
Industry
Communication
350,156,435.31 89.20% 361,543,412.68 88.76% -3.15%
industry
Electrical industry 42,383,442.38 10.80% 45,769,203.67 11.24% -7.40%
Product
Integrated cabling
products - revenue 168,067,696.46 42.82% 176,444,873.16 43.32% -4.75%
from main business
Video conferencing
products - revenue 124,250,956.72 31.65% 128,489,658.29 31.55% -3.30%
from main business
Smart electrical
40,439,782.31 10.30% 45,182,846.39 11.09% -10.50%
products - revenue
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from main business
Communication
infrastructure
products and others 57,085,505.17 14.54% 66,705,896.70 16.38% -14.42%
- revenue from
main business
Internal offset -6,545,153.79 -1.67% -16,955,752.94 -4.16% -61.40%
Revenue from other
9,241,090.82 2.35% 7,445,094.75 1.83% 24.12%
business
Region
Domestic 392,539,877.69 100.00% 407,312,616.35 100.00% -3.63%
The industries, products and regions that account for more than 10% of the Company's operating revenue or operating profit
Applicable □Not applicable
Unit: yuan
Operating Gross profit
Operating costs
revenue margin
increased or
increased or increased or
Operating Gross profit decreased over
Operating cost decreased over decreased over
revenue margin the same period
the same period the same period
of the previous
of the previous of the previous
year
year year
Industry
Communication
350,156,435.31 270,918,555.70 22.63% -3.15% -5.80% 2.17%
industry
Electrical
42,383,442.38 32,280,451.97 23.84% -7.40% -9.97% 2.18%
industry
Product
Integrated
cabling
products - 168,067,696.46 132,437,584.59 21.20% -4.75% -3.63% -0.91%
revenue from
main business
Video
conferencing
products - 124,250,956.72 91,449,608.57 26.40% -3.30% -7.03% 2.95%
revenue from
main business
Smart electrical
products -
40,439,782.31 31,614,066.07 21.82% -10.50% -10.63% 0.11%
revenue from
main business
Communication
infrastructure
products and
57,085,505.17 50,407,922.16 11.70% -14.42% -20.63% 6.91%
others - revenue
from main
business
Internal offset -6,545,153.79 -6,420,888.53 1.90% -61.40% -62.01% 1.57%
Revenue from
9,241,090.82 3,710,714.81 59.85% 24.12% -34.58% 36.04%
other business
Region
Domestic 392,539,877.69 303,199,007.67 22.76% -3.63% -6.26% 2.17%
When the statistical range of the Company's main business data is adjusted during the reporting period, the Company's main
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business data according to the range adjusted at the end of the reporting period in the latest period is
□Applicable Not applicable
IV. Analysis of non-main business
Applicable □Not applicable
Unit: yuan
Proportion to total
Amount Reasons Is it sustainable
profits
Losses from the
scrapping of fixed
Non-operating
827,499.78 -14.94% assets, late payment No
expenses
fees, and imposed
penalties paid
V. Analysis of assets and liabilities
1. Significant changes in asset composition
Unit: yuan
Amount at the end of the reporting Amount at the end of the previous
period year Increase or
Description of
decrease in
Proportion to Proportion to major changes
Amount Amount proportion
total assets total assets
Monetary funds 134,907,485.72 15.30% 173,863,825.35 19.50% -4.20%
Accounts
377,609,239.06 42.82% 304,616,212.04 34.17% 8.65%
receivable
Contract assets 0.00% 0.00 0.00% 0.00%
Inventory 147,900,393.71 16.77% 166,440,238.56 18.67% -1.90%
Investment real
19,739,159.39 2.24% 20,351,240.03 2.28% -0.04%
estate
Long-term
equity 10,412,604.45 1.18% 10,422,321.80 1.17% 0.01%
investment
Fixed assets 95,565,309.88 10.84% 97,917,714.15 10.98% -0.14%
Construction in
803.89 0.00% 0.00 0.00% 0.00%
progress
Right-of-use
0.00% 0.00 0.00% 0.00%
asset
Short-term
92,000,000.00 10.43% 112,836,727.77 12.66% -2.23%
loans
Contract
20,979,225.57 2.38% 15,048,811.36 1.69% 0.69%
liability
Long-term
175,800,000.00 19.94% 105,800,000.00 11.87% 8.07%
loans
Lease liability 0.00% 0.00 0.00% 0.00%
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2. Major overseas assets
□Applicable Not applicable
3. Assets and liabilities measured at fair value
Applicable □Not applicable
Unit: yuan
Profits and Changes in Sales
Impairment Purchase
losses from cumulative amount
Opening accrued in amount in Other Closing
Item changes in fair fair value in the
amount the current the current changes amount
value in the included in current
period period
current period equity period
Financial
assets
4. Other
equity
741,953.00 741,953.00
instrument
investments
Subtotal of
financial 741,953.00 741,953.00
assets
Receivables 15,035,046.
30,668,999.36
financing 06
Total of the 15,776,999.
31,410,952.36
above items 06
Financial
0.00 0.00
liabilities
Other changes
Whether there were any significant changes in the measurement attributes of the Company's main assets during the reporting
period
□Yes No
4. Restricted asset rights as of the end of the reporting period
Assets with restricted ownership or use rights
(1) Details
Item Ending book value Reasons for restriction
Performance bond and
Monetary funds 12,970,766.25
litigation
Real estate and land mortgage
Fixed assets 18,612,486.48
loans
Real estate and land mortgage
Intangible assets 3,452,615.18
loans
Real estate and land mortgage
Investment real estate 817,510.91
loans
Total 35,853,378.82
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(2) Other notes
In addition to the above-mentioned assets with restricted ownership or use rights, the Company pledged its
equity interests in its subsidiaries, namely 96.99% equity in Nanjing Southern Telecom Co., Ltd. (with capital
contribution of 33.17 million yuan), 78% equity in Nanjing Putian Network Co., Ltd. (with capital contribution
of 7.8 million yuan) and 100% equity in Nanjing Nanman Electrical Co., Ltd. (with capital contribution of
41.14 million yuan) to China Potevio Information Industry Co., Ltd. for granting loans to the Company by the
entrusted bank. As of June 30, 2023, Nanjing Nanman Electrical Co., Ltd. did not go through the pledge
registration formalities. The parent company CETC Glarun Group Co., Ltd. provided guarantee for the
Company's loan from CETC Finance Co., Ltd., and the Company pledged its 40% equity in Nanjing Putian
Telege Intelligent Building Ltd. (with capital contribution of 8 million yuan) to the parent company, and
registered the pledge of the Company's equity in the Administration for Market Regulation in Jiangning,
Nanjing, with 6 million yuan registered on June 21, 2023 and 2 million yuan registered on July 19, 2023
respectively.
VI. Analysis of investment status
1. Overview
Applicable □Not applicable
Investment amount in the reporting Investment amount in the same period of
Amplitude of variation
period (yuan) the previous year (yuan)
1,720,823.79 1,721,041.47 -0.01%
2. Significant equity investments acquired during the reporting period
□Applicable Not applicable
3. Major ongoing non-equity investments during the reporting period
□Applicable Not applicable
4. Investment in financial assets
(1) Securities investment
□Applicable Not applicable
There was no securities investment during the reporting period.
(2) Derivatives investment
□Applicable Not applicable
There was no derivative investment during the reporting period.
5. Use of raised funds
□Applicable Not applicable
There was no use of the raised funds during the reporting period.
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VII. Sale of major assets and equity
1. Sale of major assets
□Applicable Not applicable
The Company did not sell any major assets during the reporting period.
2. Sale of major equity
□Applicable Not applicable
VIII. Analysis of the major companies controlled by the Company and companies in which
the Company holds an equity stake
Applicable □Not applicable
Major subsidiaries, and companies in which the Company holds an equity stake and that contribute more than 10% to the
Company's net profit
Unit: yuan
Company Type of Registered Operating Operating
Main business Total assets Net assets Net profit
name company capital revenue profit
Development,
production and
Nanjing sales of
Putian Telege integrated 20 million 274,043,648 115,545,601. 170,832,000. 10,724,670.3 10,150,759.8
Subsidiary
Intelligent cabling and yuan .46 85 76 4 5
Building Ltd. intelligent
building
products
Nanjing Multimedia
Southern communication 34.2 million 252,430,577 109,397,014. 124,448,575.
Subsidiary 5,607,168.30 5,693,679.72
Telecom Co., and application yuan .78 75 77
Ltd. solutions
Manufacturing
and sales of
Nanjing
industrial
Nanman 41.14 155,953,990 51,993,233.5 42,383,442.3
Subsidiary intelligent -589,812.39 -589,812.39
Electrical Co., million yuan .28 2 8
power
Ltd.
distribution
products
Research and
development,
production and
Nanjing
sales of solar
Putian Datang
energy 10 million 43,036,956. 24,708,651.2 13,372,570.0
Information Subsidiary 573,165.92 573,165.92
controllers, and yuan 93 2 0
Electronics
production and
Co., Ltd.
processing of
electronic
products
Nanjing Manufacturing
Putian and sales of 10 million 10,681,572.
Subsidiary -2,810,490.00 1,826,678.94 -1,766,047.70 -1,868,586.07
Changle outdoor cabling yuan 63
Communicati products, cable
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on Equipment distribution
Co., Ltd. equipment,
outdoor and
machine room
network chassis
(cabinet)
equipment,
communication
electronic
products
Research and
development,
production and
Nanjing
sales of software
Putian 10 million 16,954,512. 15,866,026.7
Subsidiary for 0.00 -72,814.30 -72,814.30
Network Co., yuan 99 4
communication,
Ltd.
network and
electronic
equipment
Information
system
integration
services,
manufacturing
of computer
software and
hardware and
Chongqing
peripheral
Puhua
equipment, 50 million 1,961,307.2
Information Subsidiary 1,961,307.27 0.00 -51,444.51 -51,444.51
cloud yuan 7
Technology
computing
Co., Ltd.
equipment,
communication
equipment and
Internet
equipment, big
data services,
software
development
Acquisition and disposal of subsidiaries during the reporting period
□Applicable Not applicable
Information of major companies controlled by the Company and companies in which the Company holds an equity stake
-
IX. Structured entities controlled by the Company
□Applicable Not applicable
X. Risks faced by the Company and countermeasures
1. Cycle risk in the communications industry
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The Company is mainly engaged in the manufacture and sales of communications products, and its customers
include several major telecom operators in China. The development and adjustment of operators' network
construction cycle and investment plans have a significant impact on the Company's operation and bring
cyclical risks to the industry.
Countermeasures: The Company will continue integrating high-quality resources, accelerating industrial
optimization and upgrading, actively expanding markets and improving industrial profitability.
2. Risks of technology research and development
The rapid development of technology and product upgrades in the telecommunications industry necessitates that
the Company keeps up with the ever-changing market demands and remains relevant in the technological
evolution. Failure to do so, or failure to develop products that meet market demands, could have a negative
impact on the Company’s operations.
Countermeasures: The Company will actively monitor industry trends in technology development and adopt a
market-oriented approach to technology development and introduction. It places great importance on the
organization, planning, and management of product development, expands new product projects, and strives to
maintain its technological leadership in the industry.
3. Risks of market competition
The industry in which the Company operates is characterized by fierce competition among a large number of
players. The Company faces intense competition due to the implementation of centralized procurement policies
by its customers, including telecommunications operators. Despite having established a competitive advantage
in areas such as brand recognition, technology, quality, and marketing through its long-term business
development efforts, failure to adapt to future market changes may cause the Company to lose its current
advantage in the highly competitive market.
Countermeasures: The Company will continue to leverage its existing advantages to consolidate its position in
traditional markets while actively expanding into specialized networks and industry-specific markets. To
achieve this, the Company will accelerate its industrial transformation and upgrading efforts, and cultivate
strategic emerging industries. The Company will also continuously strengthen its cost control, and enhance its
production and R&D capabilities to promote the rapid development of new products. Furthermore, the
Company will keep a close eye on market trends, grasp market information, adjust sales policies in a timely
manner, and maintain its competitive edge in the market.
4. Risks of cash flow shortage
The Company's products are used in projects such as operators’ network construction and subway construction.
Due to factors such as project construction period and lengthy approval processes, the sales payment period is
prolonged, resulting in significant cash flow pressure.
Countermeasures: The Company adheres to budget management for funds, ensuring a dynamic balance between
cash payments and collections. The Company classifies and collects long-term accounts receivables, while
increasing assessment efforts, implementing reward and punishment measures, urging timely recovery of
payments, strengthening inventory management, and enhancing inventory liquidity. If necessary, the Company
may obtain some working capital financing from financial institutions.
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Section IV Corporate Governance
I. Annual general meeting of shareholders and extraordinary general meetings of
shareholders held during the reporting period
1. General Meeting of Shareholders during the Reporting Period
Investor
Session Type Date of meeting Date of disclosure Resolution
participation ratio
The following
proposals were
reviewed and
approved at the
meeting:
1. Proposal on by-
election of Mr.
Jiang Yi as a
director of the 8th
The first
Board of Directors
extraordinary Extraordinary
of the Company;
general meeting of general meeting of 55.40% March 6, 2023 March 7, 2023
2. Proposal on
shareholders in shareholders
amending the
2023
Articles of
Association of the
Company;
3. Proposal on
amending the
Company’s Rules
of Procedure of the
Board of
Directors;
The following
proposals were
reviewed and
approved at the
meeting:
1. Work Report of
the Company’s
Board of Directors
for 2022;
2. Work Report of
2022 annual Annual general
the Company’s
general meeting of meeting of 55.24% May 26, 2023 May 27, 2023
Board of
shareholders shareholders
Supervisors for
2022;
3. The Company's
annual final
financial accounts
report for 2022;
4. The Company's
profit distribution
plan for 2022;
5. Annual report of
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Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
the Company for
2022;
6. Proposal on
expected routine
related party
transactions in
2023
7. Proposal on
engaging an
accounting firm;
8. Proposal on
applying for credit
line from financial
company
2. The preferred shareholders whose voting rights have been restored requested to convene an
extraordinary general meeting of shareholders
□Applicable Not applicable
II. Changes of directors, supervisors and senior executives of the Company
Applicable □Not applicable
Name Position Type Date Reason
Sun Xigang Vice Chairman Not in service February 13, 2023 Resignation
Election of the General
Jiang Yi Director Elected March 6, 2023 Meeting of
Shareholders
Appointment by the
Jiang Yi General Manager Appointed February 16, 2023
Board of Directors
III. Profit distribution and conversion of capital provident fund to share capital during the
reporting period
□Applicable Not applicable
The Company planed not to distribute cash dividends and bonus shares, or increase its share capital from provident fund in the first
half of the year.
IV. Implementation of the Company’s equity incentive plan, employee stock ownership plan
or other employee incentive measures
□Applicable Not applicable
During the reporting period, the Company had no equity incentive plan, employee stock ownership plan or other employee
incentive measures and implementation of such plans and measures.
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Section V Environmental and Social Responsibilities
I. Major environmental protection issues
Whether the listed company and its subsidiaries are key pollutant discharge units announced by the environmental protection
department
□Yes No
Administrative punishment due to environmental problems during the reporting period
Influence on the
Rectification
Name of company Reasons for production and
Violation Penalty measures taken by
or subsidiary punishment operation of they
the Company
listed company
- - - - - -
Refer to other environmental information disclosed by key pollutant discharge units
-
Measures taken to reduce carbon emissions during the reporting period and their effects
□Applicable Not applicable
Reasons for not disclosing other environmental information
The Company and its subsidiaries are not key pollutant discharge units announced by the environmental protection department.
During the reporting period, the Company strictly implemented the relevant national environmental protection laws and
regulations, and there was no violation of environmental protection laws and regulations, and there was no administrative
punishment by the environmental protection department for environmental violations.
II. Social responsibilities
In the communications industry, the Company insists on independent innovation, continuously promotes its
own sustainable development, fulfills its responsibilities and obligations to stakeholders, and strives to achieve
harmonious and win-win development of itself, its employees, society and environment.
The Company constantly improves and optimizes corporate governance, conscientiously fulfills its information
disclosure obligations, ensures shareholders' right to be informed, participate and vote on major issues of the
Company, and ensures the legitimate rights and interests of all shareholders.
The Company attaches great importance to quality, environment and occupational safety and health
management, and has passed GB/T19001-2016/ISO9001:2015 quality management system certification,
GB/T24001-2016/ISO14001: 2015 environmental management system certification and GB/T45001-
2020/ISO45001:2018 occupational health and safety management system certification.
The Company strictly abides by the Labor Law, Labor Contract Law and other laws and regulations, always
upholds the core people-oriented values, attaches great importance to the value of employees, cares about their
work, life, health and safety, effectively protects their rights and interests, enhances the cohesion of the
Company, and strives to realize the vision of common development of itself and its employees.
The Company steadfastly upholds the principle of driving development, building its brand, expanding market
presence, and shaping its image through a strong sense of responsibility. The commitment lies in nurturing a
responsible enterprise and diligently establishing a harmonious fusion of company development and the practice
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of social responsibilities. In the reporting period, as a response to the "Love Summer Camp" public welfare
program jointly launched by the Nanjing’s Development and Reform Commission, Municipal Education
Bureau, Civil Affairs Bureau, and Municipal Commission of the Communist Youth League in 2023, the
Company proactively engaged its subsidiaries to take charge of three "Love Summer Camp" public welfare
courses. These courses were oriented towards specific areas and subdistricts nearby the Company’s subsidiaries,
effectively bolstering the program's image and cultural promotion, thereby further amplifying the recognition
and impact of Nanjing Putian. The Company continued its resolute commitment to aiding employees facing
challenges. Initiatives included extending care funds to two underprivileged Party members, providing support
to a single-parent female employee in need, and procuring 515 Ninghuibao insurance policies for company
members in 2023 in the program “Solving Problems for People”. Through a diverse array of actions, the
Company maintains its unwavering dedication to fostering harmonious labor relations and fully honoring its
corporate social responsibilities.
Based on the principle of honesty and trustworthiness and legal operation, the Company actively builds
cooperative partnership with suppliers, customers, banks and other relevant stakeholders, respects the legitimate
rights and interests of relevant stakeholders, tries to realize win-win results for itself and relevant stakeholders,
and promotes its sustained and steady development.
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Section VI Important Matters
I. Commitments fulfilled by the actual controllers, shareholders, related parties, purchasers
and the Company during the reporting period and commitments not fulfilled by the end of
the reporting period
Applicable □Not applicable
Subject of Commitment Type of Contents of Date of Fulfillment
Valid period
commitment party commitments commitments commitment status
1. The
Company or the
enterprises
controlled by
the Company
will minimize
related party
transactions
with Nanjing
Putian
Telecommunica
tions Co., Ltd.
(hereinafter
referred to as
"Nanjing
Putian") and its
subsidiaries and
branches.
2. Related party
Commitments
transactions
on horizontal
Commitments China Potevio that are
competition,
made during Information necessary or October 13,
related party April 18, 2023 Fulfilled
asset Industry Co., reasonable shall 2020
transactions
reorganization Ltd. be conducted
and capital
on the basis of
occupation
equality and
voluntariness
and in
accordance
with the
principles of
fairness,
impartiality and
compensation
for equal value.
The Company
or the
enterprise
controlled by
the Company
will sign a
related party
transaction
agreement with
26
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Nanjing Putian
or its
subsidiaries in
accordance
with the laws,
and transaction
prices will be
determined
according to the
reasonable
prices
recognized by
the market to
ensure the
fairness of the
related party
transaction
prices; In
accordance
with relevant
laws,
regulations,
rules, other
normative
documents and
the Articles of
Association of
Nanjing Putian
or its
subsidiaries,
fair procedures
such as related
party
transaction
decision-
making and
vote avoidance
shall be
performed, and
information
shall be
disclosed in a
timely manner
to ensure that
the legitimate
rights and
interests of
Nanjing Putian
or its
subsidiaries and
other
shareholders of
Nanjing Putian
will not be
damaged by
related party
transactions.
3. The
27
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
Company
ensures that the
Company will
not require or
accept Nanjing
Putian or its
subsidiaries and
branches to
give the
Company or the
enterprises
controlled by
the Company
conditions
superior to
those for third
parties in any
fair market
transaction.
4. The
Company
ensures that it
will exercise
corresponding
rights and
assume
corresponding
obligations in
accordance
with the
Articles of
Association of
Nanjing Putian
and its
subsidiaries,
will not
leverage the
identity of
controlling
shareholder/act
ual controller to
seek
illegitimate
interests, will
not illegally
transfer funds
and profits of
Nanjing Putian
or its
subsidiaries
through related
party
transactions,
and guarantees
that it will not
damage the
legitimate
rights and
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interests of
other
shareholders of
Nanjing Putian.
5. In case of
violation of the
above
commitment,
the Company is
willing to bear
all liabilities
arising
therefrom and
fully
compensate or
make up for all
direct or
indirect losses
caused to
Nanjing Putian.
1. During the
period when the
Company
directly or
indirectly holds
shares of
Nanjing Putian
Telecommunica
tions Co., Ltd.
(hereinafter
referred to as
"Nanjing
Putian"), it
guarantees not
to leverage its
China Potevio control over
Commitments
Information Nanjing Putian
on horizontal
Industry Co., to engage in or
competition,
Ltd.; China participate in October 13,
related party April 18, 2023 Fulfilled
Potevio acts detrimental 2020
transactions
Information to the interests
and capital
Industry Group of Nanjing
occupation
Co., Ltd. Putian and its
minority
shareholders.
2. Except the
above-
mentioned
disclosure, in
the future, the
Company and
enterprises
controlled by
the Company
will not own,
manage,
control, invest
in, or engage in
29
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any other
business or
project, directly
or indirectly,
within or
outside the
PRC, which is
the same or
similar to those
currently
carried out or
planned for the
future by
Nanjing Putian
and its
subsidiaries and
branches, nor
will they seek
to directly or
indirectly
engage in any
business that
competes with
the current or
planned
business of
Nanjing Putian
and its
subsidiaries or
branches
through joint
venture,
cooperation,
joint venture
with any third
party or
through any
means such as
lease operation,
contract
operation or
entrusted
management,
nor will they
have an interest
in the above
activities. If the
Company and
the enterprises
controlled by
the Company
discover any
new business
opportunity that
constitutes or
may constitute
a direct or
indirect
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competition
against Nanjing
Putian or its
holding
enterprises in
their main
business, they
will
immediately
notify Nanjing
Putian in
writing and
cause the
business
opportunity to
be first
provided to
Nanjing Putian
or its holding
enterprises on
reasonable and
fair terms and
conditions.
3. If Nanjing
Putian or its
holding
enterprises give
up such
competitive
new business
opportunities,
and the
Company and
the enterprises
controlled by
the Company
engage in these
competitive
businesses,
Nanjing Putian
or its holding
enterprises
have the right
to acquire any
equity, assets
and other
interests in the
above
competitive
businesses from
the above
entities for one
or more times
at any time.
4. When the
Company and
the enterprises
controlled by
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the Company
intend to
transfer, sell,
lease, license or
otherwise
transfer or
allow the use of
assets and
businesses that
constitute or
may constitute
direct or
indirect
competition
against Nanjing
Putian or its
holding
enterprises in
their main
business, the
Company and
the enterprises
controlled by
the Company
will provide
Nanjing Putian
or its holding
enterprises with
the right of first
refusal, and
promise to
make every
effort to urge
the enterprises
in which the
Company holds
an equity stake
to provide the
right of first
refusal to
Nanjing Putian
or its holding
enterprises
under the above
circumstances.
5. If the
Company
violates the
above
commitment, it
shall make
comprehensive,
timely and full
compensation
for the losses
suffered by
Nanjing Putian;
All benefits
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obtained by the
Company due
to breach of the
above
commitments
shall belong to
Nanjing Putian.
6. The above
commitment
shall remain
valid during the
period when the
Company is the
controlling
shareholder/act
ual controller of
the Listed
Company.
After the
completion of
this transaction,
the Company
will strictly
abide by the
Company Law,
Securities Law,
relevant
regulations of
China
Securities
Regulatory
Commission,
Shenzhen Stock
Exchange and
China Potevio the Articles of
Information Association,
Industry Co., etc., and ensure
Ltd.; China Other that Nanjing October 13,
April 18, 2023 Fulfilled
Potevio commitments Putian 2020
Information Telecommunica
Industry Group tions Co., Ltd.
Co., Ltd. (hereinafter
referred to as
the "Listed
Company") will
continue to be
completely
separated from
the Company
and the
enterprises
controlled or
greatly
influenced by
the Company in
terms of
personnel,
assets, finance,
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organizations
and business,
and maintain
the
independence
of the Listed
Company in
terms of
personnel,
assets, finance,
organizations
and business. In
particular, after
the completion
of this
transaction, the
Company will
abide by the
Notice on
Certain Issues
Concerning the
Regulation of
Financial
Transactions
between Listed
Companies and
Related Parties
and External
Guarantees by
Listed
Companies
(Z.J.F (2003)
No.56) and the
Notice of the
China
Securities
Regulatory
Commission
and China
Banking
Regulatory
Commission on
the Regulation
of External
Guarantees by
Listed
Companies
(Z.J.F [2005]
No.120) to
regulate
external
guarantees by
the Listed
Company and
its subsidiaries,
and will not
illegally occupy
funds of the
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Listed
Company and
its subsidiaries.
The Company
guarantees to
strictly fulfill
the above
commitment. If
the rights and
interests of the
Listed
Company are
damaged due to
the violation of
the above
commitment by
the Company or
the enterprises
controlled or
greatly
influenced by
the Company,
the Company
will bear
corresponding
compensation
liabilities
according to
laws.
1. The
Company
promises not to
interfere in the
operation and
management
activities of
Nanjing Putian
Telecommunica
tions Co., Ltd.
(hereinafter
China Potevio
referred to as
Information
"Nanjing
Industry Co.,
Putian")
Ltd.; China Other November 25,
beyond its April 18, 2023 Fulfilled
Potevio commitments 2020
authority and
Information
not encroach on
Industry Group
interests of
Co., Ltd.
Nanjing Putian;
2. From the
date of issuance
of this
commitment to
the completion
of this
transaction, if
the CSRC
makes clear
provisions on
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the
compensation
measures to
cover losses
and related
commitments,
and the above
commitments
cannot satisfy
the provisions
of the CSRC,
the Company
promises to
issue
supplementary
commitments
according to the
provisions of
the CSRC;
The Company
promises to
strictly fulfill
the above
commitments
and ensure that
the
compensation
measures to
cover losses
can be
effectively
taken. If the
Company
violates the
above
commitments
and causes
losses to
Nanjing Putian
or investors, the
Company is
willing to bear
the
compensation
responsibility
for Nanjing
Putian or
investors and
the
corresponding
punishment of
the regulatory
authorities
according to
laws.
China Potevio Commitments In view of the
Other
Information on horizontal fact that April 8, 2018 April 18, 2023 Fulfilled
commitments
Industry Co., competition, Nanjing Putian
36
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made to Ltd. related party Telecommunica
minority transactions tions Co., Ltd.
shareholders of and capital (hereinafter
the Company occupation referred to as
"Nanjing
Putian") intends
to apply to
Shenzhen Stock
Exchange for
resumption of
listing, the
Company, as
the controlling
shareholder of
Nanjing Putian,
hereby makes
the following
commitment:
I. Ensure
personnel
independence
of Nanjing
Putian
(I) The
Company
ensures that
Nanjing
Putian's
production,
operation and
administration
(including
labor, personnel
and salary
management,
etc.) are
completely
independent of
the Company
and the
companies and
enterprises
under the
Company.
(II) The
Company
ensures that
Nanjing
Putian's general
manager,
deputy general
manager, chief
financial
officer,
secretary of the
Board of
Directors and
other senior
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executives
work full-time
in Nanjing
Putian and
receive
remuneration
from Nanjing
Putian, and do
not
concurrently
hold other
positions other
than directors
and supervisors
in the Company
and the
companies and
enterprises
under the
Company, and
do not receive
remuneration
from the
Company and
the companies
or enterprises
under the
Company; The
Company
ensures that the
financial
personnel of
Nanjing Putian
do not work
part-time in and
receive
remuneration
from the
Company and
the companies
and enterprises
under the
Company.
(III) The
Company
ensures that it
recommends
candidates to
serve as
directors,
supervisors and
senior
executives of
Nanjing Putian
through legal
procedures, and
than it will not
interfere with
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the personnel
appointment
and dismissal
decisions made
by the Board of
Directors and
Shareholders'
Meeting of
Nanjing Putian.
II. Ensure
assets
independence
and integrity of
Nanjing Putian
(I) The
Company
ensures the
assets
independence
and integrity of
Nanjing Putian
and its
subsidiaries,
and ensures that
all these assets
are under the
control of
Nanjing Putian
and its
subsidiaries,
and are
independently
owned and
operated by
Nanjing Putian
and its
subsidiaries.
(II) The
Company
ensures that the
Company and
the companies
and enterprises
under the
Company do
not illegally
occupy Nanjing
Putian's assets,
funds and other
resources.
III. Ensure
business
independence
of Nanjing
Putian
(I) The
Company
ensures that
39
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
Nanjing Putian
has an
independent
procurement
and sales
systems; has
the assets,
personnel and
qualifications
to
independently
carry out
business
activities, and
has the ability
to operate
independently
in the market.
(II) The
Company
ensures that the
Company and
the companies
and enterprises
under the
Company avoid
horizontal
competition
against Nanjing
Putian and its
subsidiaries.
(III) The
Company
ensures to
conduct strict
control of
related party
transactions
and minimize
continuing
related party
transactions
between
Nanjing Putian
and its
subsidiaries and
the Company
and the
companies and
enterprises
under the
Company. The
Company puts
an end to the
illegal
occupation of
Nanjing
Putian's funds
40
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
and assets, and
will not require
Nanjing Putian
and its
subsidiaries to
provide any
form of
guarantee to the
Company and
the companies
and enterprises
under the
Company. For
necessary
related party
transactions,
the Company
will follow the
principle of
"fairness,
impartiality and
openness",
make
transaction
prices
consistent with
those for non-
related
enterprises, and
disclose
information in a
timely manner.
(IV) The
Company
ensures not to
interfere in
major decisions
of Nanjing
Putian by any
means other
than exercising
shareholders'
rights
according to
laws, and not to
affect the
independence
of Nanjing
Putian's assets,
personnel,
finance,
organizations
and business.
IV. Ensure
organizational
independence
of Nanjing
Putian
41
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
(I) The
Company
ensures that
Nanjing Putian
and its
subsidiaries
establish and
improve their
own corporate
governance
structures
according to
laws, and
completely
separate from
the Company
and the
companies and
enterprises
under the
Company; The
Company
ensures that
Nanjing Putian
and its
subsidiaries are
completely
separated from
the Company
and the
companies and
enterprises
under the
Company in
terms of offices
and production
and business
premises,
without
confusion
among their
organizations.
(II) The
Company
ensures that
Nanjing Putian
and its
subsidiaries
operate
independently,
and the
Company will
not directly or
indirectly
interfere in the
decision-
making and
operation of
42
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
Nanjing Putian
without the
approval of the
Board of
Directors and
Shareholders'
Meeting of
Nanjing Putian.
(III) The
Company
ensures that the
Shareholders'
Meeting, Board
of Directors,
independent
directors, Board
of Supervisors
and senior
executives of
Nanjing Putian
independently
exercise their
functions and
powers in
accordance
with laws,
regulations and
the Articles of
Association.
V. Ensure
financial
independence
of Nanjing
Putian
(I) The
Company
ensures that
Nanjing Putian
has an
independent
financial
accounting
department, an
independent
financial
accounting
system,
standardized
and
independent
financial
accounting
rules and
financial
management
rules.
(II) The
Company
43
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
ensures that
Nanjing Putian
remains
independent in
financial
decision-
making, and
that the
Company and
the companies
and enterprises
under the
Company do
not interfere in
the use and
dispatch of
funds of
Nanjing Putian.
(III) The
Company
ensures that
Nanjing Putian
maintains its
own
independent
bank accounts
and does not
share any bank
accounts with
the Company
and the
companies and
enterprises
under the
Company.
(IV) Ensure
independent tax
payment by
Nanjing Putian
according to
laws.
The above
commitment
shall remain
valid and
irrevocable
during the
period when the
Company is the
controlling
shareholder of
Nanjing Putian.
In case of
violation of the
above
commitment
and thus
causing
44
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
economic
losses to
Nanjing Putian,
the Company
will
compensate
Nanjing Putian.
In view of the
fact that
Nanjing Putian
Telecommunica
tions Co., Ltd.
(hereinafter
referred to as
"Nanjing
Putian") intends
to apply to
Shenzhen Stock
Exchange for
resumption of
listing, the
Company, as
the controlling
shareholder of
Nanjing Putian,
hereby makes
the following
commitment:
I. The
Commitments Company will
on horizontal not leverage its
China Potevio
competition, identity as
Information
related party Nanjing April 8, 2018 April 18, 2023 Fulfilled
Industry Co.,
transactions Putian's
Ltd.
and capital controlling
occupation shareholder to
require Nanjing
Putian and its
subsidiaries to
give rights
superior to
those for third
parties in the
market in
business
cooperation or
engage in any
acts that harm
the interests of
Nanjing Putian
and its
subsidiaries in
transactions.
II. The
Company will
not leverage its
identity as
Nanjing
45
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
Putian's
controlling
shareholder to
seek priority
rights to
conclude
transactions
with Nanjing
Putian and its
subsidiaries.
III. When
carrying out
related party
transactions
that are really
necessary and
unavoidable, it
ensures that
they are carried
out in
accordance
with the
principle of
marketization
and fair prices,
and will strictly
comply with
the relevant
laws,
regulations,
normative
documents and
the relevant
provisions of
the Articles of
Association of
the listed
company,
perform the
transaction
procedures and
information
disclosure
obligations, and
ensures that the
legitimate
rights and
interests of the
Company and
other
shareholders
will not be
damaged
through related
party
transactions.
The above
commitment
46
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
shall remain
valid and
irrevocable
during the
period when the
Company is the
controlling
shareholder of
Nanjing Putian.
In case of
violation of the
above
commitment
and thus
causing
economic
losses to
Nanjing Putian,
the Company
will
compensate
Nanjing Putian.
In view of the
fact that
Nanjing Putian
Telecommunica
tions Co., Ltd.
(hereinafter
referred to as
"Nanjing
Putian") intends
to apply to
Shenzhen Stock
Exchange for
resumption of
listing, the
Company, as
Commitments
the controlling
on horizontal
China Potevio shareholder of
competition,
Information Nanjing Putian,
related party April 8, 2018 April 18, 2023 Fulfilled
Industry Co., hereby makes
transactions
Ltd. the following
and capital
commitment:
occupation
I. The
Company and
the related
enterprises
controlled by
the Company
have not
engaged in any
production and
operation
business or
activities that
directly or
indirectly
compete
47
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
against Nanjing
Putian, and
promise not to
engage in any
production and
operation
business or
activities that
directly or
indirectly
compete
against Nanjing
Putian in the
future.
II. The
Company does
not own,
manage,
control, invest
or engage in
any other
businesses or
projects that are
the same as or
similar to the
those of
Nanjing Putian.
III. If the
Company or its
any related
enterprise
obtains any
business
opportunity
from any third
party that
constitutes
substantial
competition or
may constitute
substantial
competition
against Nanjing
Putian in its
business, the
Company will
immediately
notify Nanjing
Putian and
transfer the
business
opportunity to
Nanjing Putian
after obtaining
approval from
the third party.
IV. The
Company will
48
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
supervise and
restrain the
production and
operation
activities of
itself and its
related
enterprises. If
the products or
businesses of
the Company
and its related
enterprises are
the same as or
similar to those
of Nanjing
Putian in the
future, the
Company
promises to
take the
following
measures to
solve the
problem:
(I) When
Nanjing Putian
deems it
necessary, the
Company and
its related
enterprises will
reduce their
holdings until
all the relevant
assets and
businesses held
by the
Company and
its related
enterprises are
transferred;
(II) Nanjing
Putian may,
when it deems
it necessary,
give priority to
the acquisition
of relevant
assets and
businesses held
by the
Company and
its related
enterprises
through
appropriate
means;
49
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
(III) If the
Company and
its related
enterprises
have conflicts
of interest with
Nanjing Putian
due to
horizontal
competition,
the interests of
Nanjing Putian
shall be given
priority;
(IV) The
Company will
take other
measures
conducive to
avoiding
horizontal
competition.
The above
commitment
shall remain
valid and
irrevocable
during the
period when the
Company is the
controlling
shareholder of
Nanjing Putian.
In case of
violation of the
above
commitment
and thus
causing
economic
losses to
Nanjing Putian,
the Company
will
compensate
Nanjing Putian.
In view of the
fact that
Nanjing Putian
Commitments
Telecommunica
on horizontal
China Potevio tions Co., Ltd.
competition,
Information (hereinafter
related party April 8, 2018 April 18, 2023 Fulfilled
Industry Group referred to as
transactions
Corporation "Nanjing
and capital
Putian") intends
occupation
to apply to
Shenzhen Stock
Exchange for
50
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
resumption of
listing, the
Company, as
the actual
controller of
Nanjing Putian,
hereby makes
the following
commitment:
I. Ensure
personnel
independence
of Nanjing
Putian
(I) The
Company
ensures that
Nanjing
Putian's
production,
operation and
administration
(including
labor, personnel
and salary
management,
etc.) are
completely
independent of
the Company
and the
companies and
enterprises
under the
Company.
(II) The
Company
ensures that
Nanjing
Putian's general
manager,
deputy general
manager, chief
financial
officer,
secretary of the
Board of
Directors and
other senior
executives
work full-time
in Nanjing
Putian and
receive
remuneration
from Nanjing
Putian, and do
not
51
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
concurrently
hold other
positions other
than directors
and supervisors
in the Company
and the
companies and
enterprises
under the
Company, and
do not receive
remuneration
from the
Company and
the companies
or enterprises
under the
Company; The
Company
ensures that the
financial
personnel of
Nanjing Putian
do not work
part-time in and
receive
remuneration
from the
Company and
the companies
and enterprises
under the
Company.
(III) The
Company
ensures that it
recommends
candidates to
serve as
directors,
supervisors and
senior
executives of
Nanjing Putian
through legal
procedures, and
than it will not
interfere with
the personnel
appointment
and dismissal
decisions made
by the Board of
Directors and
Shareholders'
Meeting of
Nanjing Putian.
52
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
II. Ensure
assets
independence
and integrity of
Nanjing Putian
(I) The
Company
ensures the
assets
independence
and integrity of
Nanjing Putian
and its
subsidiaries,
and ensures that
all these assets
are under the
control of
Nanjing Putian
and its
subsidiaries,
and are
independently
owned and
operated by
Nanjing Putian
and its
subsidiaries.
(II) The
Company
ensures that the
Company and
the companies
and enterprises
under the
Company do
not illegally
occupy Nanjing
Putian's assets,
funds and other
resources.
III. Ensure
business
independence
of Nanjing
Putian
(I) The
Company
ensures that
Nanjing Putian
has an
independent
procurement
and sales
systems; has
the assets,
personnel and
qualifications
53
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
to
independently
carry out
business
activities, and
has the ability
to operate
independently
in the market.
(II) The
Company
ensures that the
Company and
the companies
and enterprises
under the
Company avoid
horizontal
competition
against Nanjing
Putian and its
subsidiaries.
(III) The
Company
ensures to
conduct strict
control of
related party
transactions
and minimize
continuing
related party
transactions
between
Nanjing Putian
and its
subsidiaries and
the Company
and the
companies and
enterprises
under the
Company. The
Company puts
an end to the
illegal
occupation of
Nanjing
Putian's funds
and assets, and
will not require
Nanjing Putian
and its
subsidiaries to
provide any
form of
guarantee to the
Company and
54
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
the companies
and enterprises
under the
Company. For
necessary
related party
transactions,
the Company
will follow the
principle of
"fairness,
impartiality and
openness",
make
transaction
prices
consistent with
those for non-
related
enterprises, and
disclose
information in a
timely manner.
(IV) The
Company
ensures not to
interfere in
major decisions
of Nanjing
Putian by any
means other
than exercising
shareholders'
rights
according to
laws, and not to
affect the
independence
of Nanjing
Putian's assets,
personnel,
finance,
organizations
and business.
IV. Ensure
organizational
independence
of Nanjing
Putian
(I) The
Company
ensures that
Nanjing Putian
and its
subsidiaries
establish and
improve their
own corporate
55
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
governance
structures
according to
laws, and
completely
separate from
the Company
and the
companies and
enterprises
under the
Company; The
Company
ensures that
Nanjing Putian
and its
subsidiaries are
completely
separated from
the Company
and the
companies and
enterprises
under the
Company in
terms of offices
and production
and business
premises,
without
confusion
among their
organizations.
(II) The
Company
ensures that
Nanjing Putian
and its
subsidiaries
operate
independently,
and the
Company will
not directly or
indirectly
interfere in the
decision-
making and
operation of
Nanjing Putian
without the
approval of the
Board of
Directors and
Shareholders'
Meeting of
Nanjing Putian.
(III) The
56
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
Company
ensures that the
Shareholders'
Meeting, Board
of Directors,
independent
directors, Board
of Supervisors
and senior
executives of
Nanjing Putian
independently
exercise their
functions and
powers in
accordance
with laws,
regulations and
the Articles of
Association.
V. Ensure
financial
independence
of Nanjing
Putian
(I) The
Company
ensures that
Nanjing Putian
has an
independent
financial
accounting
department, an
independent
financial
accounting
system,
standardized
and
independent
financial
accounting
rules and
financial
management
rules.
(II) The
Company
ensures that
Nanjing Putian
remains
independent in
financial
decision-
making, and
that the
Company and
57
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
the companies
and enterprises
under the
Company do
not interfere in
the use and
dispatch of
funds of
Nanjing Putian.
(III) The
Company
ensures that
Nanjing Putian
maintains its
own
independent
bank accounts
and does not
share any bank
accounts with
the Company
and the
companies and
enterprises
under the
Company.
(IV) Ensure
independent tax
payment by
Nanjing Putian
according to
laws.
The above
commitment
shall remain
valid and
irrevocable
during the
period when the
Company is the
actual
controller of
Nanjing Putian.
In case of
violation of the
above
commitment
and thus
causing
economic
losses to
Nanjing Putian,
the Company
will
compensate
Nanjing Putian.
China Potevio Commitments In view of the
April 8, 2018 April 18, 2023 Fulfilled
Information on horizontal fact that
58
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
Industry Group competition, Nanjing Putian
Corporation related party Telecommunica
transactions tions Co., Ltd.
and capital (hereinafter
occupation referred to as
"Nanjing
Putian") intends
to apply to
Shenzhen Stock
Exchange for
resumption of
listing, the
Company, as
the actual
controller of
Nanjing Putian,
hereby makes
the following
commitment:
1. The
Company will
not leverage its
identity as
Nanjing
Putian's actual
controller to
require Nanjing
Putian and its
subsidiaries to
give rights
superior to
those for third
parties in the
market in
business
cooperation or
engage in any
acts that harm
the interests of
Nanjing Putian
and its
subsidiaries in
transactions.
2. The
Company will
not leverage its
identity as
Nanjing
Putian's actual
controller to
seek priority
rights to
conclude
transactions
with Nanjing
Putian and its
subsidiaries.
3. When
59
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
carrying out
related party
transactions
that are really
necessary and
unavoidable, it
ensures that
they are carried
out in
accordance
with the
principle of
marketization
and fair prices,
and will strictly
comply with
the relevant
laws,
regulations,
normative
documents and
the relevant
provisions of
the Articles of
Association of
the listed
company,
perform the
transaction
procedures and
information
disclosure
obligations, and
ensures that the
legitimate
rights and
interests of the
Company and
other
shareholders
will not be
damaged
through related
party
transactions.
The above
commitment
shall remain
valid and
irrevocable
during the
period when the
Company is the
actual
controller of
Nanjing Putian.
In case of
violation of the
60
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
above
commitment
and thus
causing
economic
losses to
Nanjing Putian,
the Company
will
compensate
Nanjing Putian.
In view of the
fact that
Nanjing Putian
Telecommunica
tions Co., Ltd.
(hereinafter
referred to as
"Nanjing
Putian") intends
to apply to
Shenzhen Stock
Exchange for
resumption of
listing, the
Company, as
the actual
controller of
Nanjing Putian,
hereby makes
the following
Commitments commitment:
on horizontal 1. The
China Potevio
competition, Company and
Information
related party the related April 8, 2018 April 18, 2023 Fulfilled
Industry Group
transactions enterprises
Corporation
and capital controlled by
occupation the Company
have not
engaged in any
production and
operation
business or
activities that
directly or
indirectly
compete
against Nanjing
Putian, and
promise not to
engage in any
production and
operation
business or
activities that
directly or
indirectly
compete
61
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
against Nanjing
Putian in the
future.
2. The
Company does
not own,
manage,
control, invest
or engage in
any other
businesses or
projects that are
the same as or
similar to the
those of
Nanjing Putian.
3. If the
Company or its
any related
enterprise
obtains any
business
opportunity
from any third
party that
constitutes
substantial
competition or
may constitute
substantial
competition
against Nanjing
Putian in its
business, the
Company will
immediately
notify Nanjing
Putian and
transfer the
business
opportunity to
Nanjing Putian
after obtaining
approval from
the third party.
4. The
Company will
supervise and
restrain the
production and
operation
activities of
itself and its
related
enterprises. If
the products or
businesses of
the Company
62
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
and its related
enterprises are
the same as or
similar to those
of Nanjing
Putian in the
future, the
Company
promises to
take the
following
measures to
solve the
problem:
(1) When
Nanjing Putian
deems it
necessary, the
Company and
its related
enterprises will
reduce their
holdings until
all the relevant
assets and
businesses held
by the
Company and
its related
enterprises are
transferred;
(2) Nanjing
Putian may,
when it deems
it necessary,
give priority to
the acquisition
of relevant
assets and
businesses held
by the
Company and
its related
enterprises
through
appropriate
means;
(3) If the
Company and
its related
enterprises
have conflicts
of interest with
Nanjing Putian
due to
horizontal
competition,
the interests of
63
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
Nanjing Putian
shall be given
priority;
(4) The
Company will
take other
measures
conducive to
avoiding
horizontal
competition.
The above
commitment
shall remain
valid and
irrevocable
during the
period when the
Company is the
actual
controller of
Nanjing Putian.
In case of
violation of the
above
commitment
and thus
causing
economic
losses to
Nanjing Putian,
the Company
will
compensate
Nanjing Putian.
The Group
makes the
following
statements and
commitments
regarding the
operation and
future
development
plan of Nanjing
China Potevio
Putian’s private
Information Other
network June 19, 2018 April 18, 2023 Fulfilled
Industry Group commitments
communication
Corporation
s business, and
the business of
the Group and
the enterprises
controlled by
the Group
(except Nanjing
Putian and its
controlled
enterprises):
64
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
In order to
optimize the
internal
resource
allocation of
the Group and
give full play to
Nanjing
Putian's
business
capabilities,
from 2016, the
Group has
entrusted
Nanjing Putian
to produce the
private network
communication
s products that
were originally
purchased by
China Potevio
Information
Industry Co.,
Ltd.
(hereinafter
referred to as
“Potevio Co.,
Ltd."), a
wholly-owned
subsidiary of
the Group. The
Group's private
network
communication
s business was
originally a
trade-oriented
business where
products were
purchased and
sold by Potevio
Co., Ltd. from
external
suppliers. From
2016, the
business has
been
successfully
transformed
into an
independent
processing and
production
business. The
current
business model
is as follows:
65
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
Potevio Co.,
Ltd. will sign
entrusted
production
contracts with
Nanjing Putian
and its
subsidiary
Southern
Telecom after
obtaining
orders from
customers, and
Nanjing Putian
will be
responsible for
production. At
present, the
customer of
Potevio Co.,
Ltd. is Fortune
Industrial
Corp., and the
total annual
order amount of
existing model
products
remains above
500 million
yuan. It is
expected to
have a stable
demand period
of 3 to 5 years.
The Group
undertakes to
take Nanjing
Putian as the
operating entity
of private
network
communication
s business,
including but
not limited to:
1. Nanjing
Putian is the
military-
civilian
integration
industrial base
of the Group,
and is the only
producer of the
existing multi-
network cloud-
based data
processing
66
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
communication
devices and
related
military-
civilian
integration
projects (that is,
the private
network
communication
s business
referred to in
this
commitment),
and it is
exclusive;
2. The Group
undertakes to
gradually
integrate the
complete
business
processes and
related
resources of the
private network
communication
s business
including sales
into Nanjing
Putian within 3
years; If the
relevant
business
resources
cannot be
integrated into
Nanjing Putian
due to external
reasons such as
special
requirements of
downstream
customers on
the subject
qualifications
of direct
partners (for
example, non-
foreign-funded
enterprises), the
Group will
cooperate with
Nanjing Putian
to carry out
relevant
business under
the condition of
67
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
meeting the
requirements of
relevant laws
and regulations,
that is,
undertake
relevant
business in the
name of the
Group or its
subordinate
enterprises, and
Nanjing Putian
will be
responsible for
actual
operation.
The above
commitment
shall take effect
from the date of
signing this
commitment,
and shall
remain valid
and irrevocable
during the
existence of
Nanjing Putian
and the period
when the Group
is recognized as
a related party
that is not
allowed to
engage in
business same
as or similar to
Nanjing
Putian’s private
network
communication
s business in
accordance
with relevant
regulations. If
the above
commitment is
proved to be
untrue or not
fulfilled, all
benefits
obtained by the
Group due to
breach of the
commitment
shall be owned
by Nanjing
68
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
Putian, and the
Group shall
compensate for
all direct and
indirect losses
suffered by
Nanjing Putian
and bear
corresponding
legal liabilities.
Is the
commitment
Yes
fulfilled on
time
If a
commitment is
not fulfilled on
time, the
specific reasons
for the failed Not applicable
fulfillment and
the next work
plan shall be
specified in
detail
II. Non-operating occupation of funds by controlling shareholder and other related parties
of the Listed Company
□Applicable Not applicable
During the reporting period, there was no non-operating occupation of funds by controlling shareholders and other related parties
of the Listed Company.
III. Illegal external guarantees
□Applicable Not applicable
During the reporting period, the Company had no illegal external guarantees.
IV. Appointment and dismissal of accounting firm
Has the semi-annual financial report been audited
□Yes No
The Semi-annual Report of the Company has not been audited.
V. Explanations of the Board of Directors and the Board of Supervisors on the Modified
Audit Report for the reporting period issued by the accounting firm
□Applicable Not applicable
69
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
VI. Explanation of the Board of Directors on the relevant information of the Modified Audit
Report for the previous year
□Applicable Not applicable
VII. Matters related to bankruptcy reorganization
□Applicable Not applicable
No bankruptcy reorganization related matters occurred during the reporting period.
VIII. Litigation
Major litigation and arbitration matters
□Applicable Not applicable
The Company had no major litigation or arbitration matters during the reporting period.
Other litigation
Applicable □Not applicable
Basic Whether an Result and Enforcement
Amount Progress of
information estimated influence of of litigation Date of Disclosure
involved (in litigation
of litigation liability is litigation (arbitration) disclosure index
10,000 yuan) (arbitration)
(arbitration) formed (arbitration) judgments
Nanjing
Sierte
Technology It has no
The
Co., Ltd. v. significant
Company’s
Nanjing impact on the
Announceme
Putian profit of the
nt on
Telecommuni 47.65 No Under trial Company in - April 7, 2023
Accumulated
cations Co., the current
Litigation
Ltd.: Case of period or
released on
Dispute over after the
CNINFO
Project period
Construction
Contract
Nanjing
It has no
Southern The
significant
Telecom Co., Company’s
impact on the
Ltd. v. Announceme
profit of the
Nanjing nt on
14.67 No Under trial Company in - April 7, 2023
Trading Co., Accumulated
the current
Ltd.: Case of Litigation
period or
Disputes released on
after the
over Sales CNINFO
period
Contract
Nanjing It has no The
Nanman significant Company’s
Electrical Case impact on the Announceme
Co., Ltd. v. withdrawn profit of the nt on
8.59 No - April 7, 2023
COOEC- by the Company in Accumulated
Fluor Heavy plaintiff the current Litigation
Industries period or released on
Co., Ltd.: after the CNINFO
70
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
Case of period
Disputes
over Sales
Contract
Nanjing
Sierte
Technology It has no
The
Co., Ltd. v. significant
Company’s
Nanjing impact on the
Announceme
Putian profit of the
nt on
Telecommuni 31.89 No Under trial Company in - April 7, 2023
Accumulated
cations Co., the current
Litigation
Ltd.: Case of period or
released on
Dispute over after the
CNINFO
Project period
Construction
Contract
Nanjing
Sierte
Technology It has no
The
Co., Ltd. v. significant
Company’s
Nanjing impact on the
Announceme
Putian Court- profit of the
Execution nt on
Telecommuni 7.87 No ordered Company in April 7, 2023
completed Accumulated
cations Co., mediation the current
Litigation
Ltd.: Case of period or
released on
Dispute over after the
CNINFO
Project period
Construction
Contract
Danyang
Jinyang
Hengguang
Communicati
It has no
on The
significant
Equipment Company’s
impact on the
Communicati Announceme
Court- profit of the
on Co., Ltd. Execution nt on
5.12 No ordered Company in April 7, 2023
v. Nanjing completed Accumulated
mediation the current
Putian Litigation
period or
Telecommuni released on
after the
cations Co., CNINFO
period
Ltd.: Case of
Disputes
over Sales
Contract
Nanjing
Bowden
It has no
Intelligent The
significant
Technology Company’s
impact on the
Co., Ltd. v. Case Announceme
profit of the
Nanjing withdrawn nt on
13.07 No Company in - April 7, 2023
Putian by the Accumulated
the current
Telecommuni plaintiff Litigation
period or
cations Co., released on
after the
Ltd.: Case of CNINFO
period
Disputes
over Sales
71
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
Contract
Nanjing
Putian
Telecommuni
cations Co.,
Ltd. v. Morin
Dawa Branch
It has no
of China The
significant
Broadnet Company’s
impact on the
Inner Case Announceme
profit of the
Mongolia withdrawn nt on
8.19 No Company in - April 7, 2023
Network Co., by the Accumulated
the current
Ltd., China plaintiff Litigation
period or
Broadnet released on
after the
Inner CNINFO
period
Mongolia
Network Co.,
Ltd.: Case of
Disputes
over Sales
Contract
Nanjing
Putian
Telecommuni
cations Co.,
Ltd. v. Alxa
Branch of
It has no
China The
significant
Broadnet Company’s
impact on the
Inner Announceme
profit of the
Mongolia nt on
9.22 No Under trial Company in - April 7, 2023
Network Co., Accumulated
the current
Ltd., China Litigation
period or
Broadnet released on
after the
Inner CNINFO
period
Mongolia
Network Co.,
Ltd.: Case of
Disputes
over Sales
Contract
Nanjing
Putian
Telecommuni
It has no
cations Co., The
significant
Ltd. v. Company’s
impact on the
Beijing Luck Announceme
profit of the
Building nt on
11.72 No Under trial Company in - April 7, 2023
Decoration Accumulated
the current
Engineering Litigation
period or
Co., Ltd.: released on
after the
Case of CNINFO
period
Disputes
over Sales
Contract
Jiangning It has no The
Pre-litigation
Xindong 6.2 No significant - June 8, 2023 Company’s
mediation
Printing impact on the Announceme
72
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
Factory v. profit of the nt on
Nanjing Company in Accumulated
Putian the current Litigation
Telecommuni period or released on
cations Co., after the CNINFO
Ltd.: Case of period
Disputes
over Sales
Contract
Nanjing
Sierte
It has no
Technology The
significant
Co., Ltd. v. Company’s
impact on the
Nanjing Announceme
profit of the
Putian nt on
57.92 No Under trial Company in - June 8, 2023
Telecommuni Accumulated
the current
cations Co., Litigation
period or
Ltd.: Case of released on
after the
Disputes CNINFO
period
over Sales
Contract
Nanjing
Southern
Telecom Co., It has no
The
Ltd. v. significant
Company’s
SENYINT impact on the
Announceme
Digital profit of the
nt on
Medical 9.9 No Under trial Company in - June 8, 2023
Accumulated
System the current
Litigation
(Dalian) Co., period or
released on
Ltd.: Case of after the
CNINFO
Disputes period
over Sales
Contract
Nanjing
Nanman
It has no
Electrical The
significant
Co., Ltd. v. Company’s
impact on the
Qingdao Announceme
profit of the
Yingxuan nt on
24.51 No Under trial Company in - June 8, 2023
Technology Accumulated
the current
Co., Ltd.: Litigation
period or
Case of released on
after the
Disputes CNINFO
period
over Sales
Contract
Nanjing
Putian
It has no
Telecommuni The
significant
cations Company’s
impact on the
Technology Announceme
profit of the
Co., Ltd. v. nt on
364.77 No Under trial Company in - June 8, 2023
Nanjing Accumulated
the current
Putian Litigation
period or
Information released on
after the
Technology CNINFO
period
Co., Ltd. and
Nanjing
73
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
Putian
Telecommuni
cations Co.,
Ltd.: Case of
Disputes
over
Shareholders'
Contribution
Nanjing
Putian
Datang
Information It has no
The
Electronics significant
Company’s
Co., Ltd. v. impact on the
Announceme
Yangzhou profit of the
nt on
Dingxu New 7.35 No Under trial Company in - June 8, 2023
Accumulated
Energy the current
Litigation
Technology period or
released on
Co., Ltd.: after the
CNINFO
Case of period
Disputes
over Sales
Contract
Nanjing
Keyuesi
System It has no
The
Integration significant
Company’s
Co., Ltd. v. impact on the
Announceme
Nanjing profit of the
Pre-litigation nt on
Putian 80.43 No Company in - June 8, 2023
mediation Accumulated
Telecommuni the current
Litigation
cations Co., period or
released on
Ltd.: Case of after the
CNINFO
Disputes period
over Sales
Contract
Cixi Dongdi
Electric
It has no
Appliance The
significant
Factory v. Company’s
impact on the
Nanjing Case Announceme
profit of the
Putian withdrawn nt on
16.25 No Company in - June 8, 2023
Telecommuni by the Accumulated
the current
cations Co., plaintiff Litigation
period or
Ltd.: Case of released on
after the
Disputes CNINFO
period
over Sales
Contract
Zhu Zhiyang
It has no
v. Nanjing The
significant
Putian Company’s
impact on the
Telecommuni Announceme
profit of the
cations nt on
0 No Under trial Company in - June 8, 2023
Technology Accumulated
the current
Co., Ltd. and Litigation
period or
Nanjing released on
after the
Putian CNINFO
period
Telecommuni
74
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
cations Co.,
Ltd. (the
third party):
Case of
Dispute over
Requesting
Change of
Company
Registration
Dewei
Communicati
on
It has no
Equipment The
significant
(Jiangsu) Company’s
impact on the
Co., Ltd. v. Announceme
profit of the
Nanjing Pre-litigation nt on
57.68 No Company in - June 8, 2023
Putian mediation Accumulated
the current
Telecommuni Litigation
period or
cations Co., released on
after the
Ltd.: Case of CNINFO
period
Disputes
over Sales
Contract
It has no
Shen Lei v. The
significant
Nanjing Company’s
impact on the
Putian Announceme
profit of the
Telecommuni nt on
2.5 No Under trial Company in - June 8, 2023
cations Co., Accumulated
the current
Ltd.: Case of Litigation
period or
Labor released on
after the
Dispute CNINFO
period
Anhui Hairi
Electronic It has no
The
Co., Ltd. v. significant
Company’s
Nanjing impact on the
Announceme
Putian Court- profit of the
nt on
Telecommuni 400.44 No ordered Company in In execution June 8, 2023
Accumulated
cations Co., mediation the current
Litigation
Ltd.: Case of period or
released on
Disputes after the
CNINFO
over Sales period
Contract
Nanjing
Qinhuai
Maoye
It has no
Department The
significant
Store v. Company’s
impact on the
Nanjing Announceme
profit of the
Putian nt on
2 No Under trial Company in - June 8, 2023
Telecommuni Accumulated
the current
cations Co., Litigation
period or
Ltd.: Case of released on
after the
Dispute over CNINFO
period
Housing
Lease
Contract
Nanjing 225.88 No Under trial It has no - July 27, 2023 The
75
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
Huaheng significant Company’s
Electric impact on the Announceme
Control profit of the nt on
Equipment Company in Accumulated
Co., Ltd. v. the current Litigation
Nanjing period or released on
Putian after the CNINFO
Telecommuni period
cations Co.,
Ltd.: Case of
Disputes
over Sales
Contract
Yangzhou
Sancheng
Machinery It has no
The
Manufacturin significant
Company’s
g Co., Ltd. v. impact on the
Announceme
Nanjing profit of the
Pre-litigation nt on
Putian 15.82 No Company in - July 27, 2023
mediation Accumulated
Telecommuni the current
Litigation
cations Co., period or
released on
Ltd.: Case of after the
CNINFO
Disputes period
over Sales
Contract
Other
litigation that
did not meet
the
disclosure 46.53 No - - - -
criteria
during the
reporting
period
Total 1,476.17
IX. Punishment and rectification
□Applicable Not applicable
X. Credit status of the Company, its controlling shareholder and actual controller
□Applicable Not applicable
XI. Major related party transactions
1. Related party transactions related to daily operations
Applicable □Not applicable
Type of Conten Pricing Price of Amoun Proport Approv Whethe Settlem Availab
Date of
Related Relatio related t of principl related t of ion to ed r it ent le Disclosure
disclos
party n party related e of party related the transact exceed method market index
ure
transact party related transact party amount ion ed the of price of
76
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
ion transact party ion transact of quota approv related similar
ion transact ion (in similar (in ed party transact
ion 10,000 transact 10,000 quota transact ions
yuan) ions yuan) ion
Control Purcha Announceme
Hangzh
led by sing nt on
ou
the goods Teleco Expected
Hikvisi
same and mmuni Routine
on Market Bank April 7,
ultimat receivi cations 56.63 56.63 0.21% No 56.63 Related Party
Techno price transfer 2023
e ng product Transactions
logy
controll labor s in 2023
Co.,
ing service released on
Ltd.
party s CNINFO
Nanjin
Control Purcha Announceme
g
led by sing nt on
Potevio
the goods Teleco Expected
Honyar
same and mmuni Routine
Electric Market Bank April 7,
ultimat receivi cations 29.38 29.38 0.11% No 29.38 Related Party
al price transfer 2023
e ng product 6,000 Transactions
Techno
controll labor s in 2023
logy
ing service released on
Co.,
party s CNINFO
Ltd.
CIE
(Nanjin Control Purcha Announceme
g) led by sing nt on
Electro the goods Teleco Expected
nic same and mmuni Routine
Market Bank April 7,
Inform ultimat receivi cations 23.64 23.64 0.09% No 23.64 Related Party
price transfer 2023
ation e ng product Transactions
Develo controll labor s in 2023
pment ing service released on
Co., party s CNINFO
Ltd.
The
28th
Resear
Control Announceme
ch Selling
led by nt on
Institut goods
the Teleco Expected
e of and
same mmuni Routine
China providi Market Bank April 7,
ultimat cations 873.58 873.58 2.23% No 873.58 Related Party
Electro ng price transfer 2023
e product Transactions
nics labor
controll s in 2023
Techno service
ing released on
logy s
party CNINFO
Group 10,000
Corpor
ation
Control Announceme
Selling
The led by nt on
goods
14th the Teleco Expected
and
Resear same mmuni Routine
providi Market Bank April 7,
ch ultimat cations 350.08 350.08 0.89% No 350.08 Related Party
ng price transfer 2023
Institut e product Transactions
labor
e of controll s in 2023
service
CETC ing released on
s
party CNINFO
77
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
Control Announceme
Nanjin Selling
led by nt on
g Rail goods
the Teleco Expected
Transit and
same mmuni Routine
System providi Market Bank April 7,
ultimat cations 121.37 121.37 0.31% No 121.37 Related Party
Engine ng price transfer 2023
e product Transactions
ering labor
controll s in 2023
Co., service
ing released on
Ltd. s
party CNINFO
Control Announceme
Nanjin Selling
led by nt on
g goods
the Teleco Expected
Glarun and
same mmuni Routine
Defens providi Market Bank April 7,
ultimat cations 115.92 115.92 0.30% No 115.92 Related Party
e ng price transfer 2023
e product Transactions
System labor
controll s in 2023
Co., service
ing released on
Ltd. s
party CNINFO
Hebei
Far- Control Announceme
Selling
east led by nt on
goods
Comm the Teleco Expected
and
unicati same mmuni Routine
providi Market Bank April 7,
on ultimat cations 87.87 87.87 0.22% No 87.87 Related Party
ng price transfer 2023
System e product Transactions
labor
Engine controll s in 2023
service
ering ing released on
s
Co., party CNINFO
Ltd.
Control Announceme
Selling
Taiji led by nt on
goods
Compu the Teleco Expected
and
ter same mmuni Routine
providi Market Bank April 7,
Corpor ultimat cations 29.25 29.25 0.07% No 29.25 Related Party
ng price transfer 2023
ation e product Transactions
labor
Limite controll s in 2023
service
d ing released on
s
party CNINFO
Putian Control Announceme
Selling
Rail led by nt on
goods
Transit the Teleco Expected
and
Techno same mmuni Routine
providi Market Bank April 7,
logy ultimat cations 28.62 28.62 0.07% No 28.62 Related Party
ng price transfer 2023
(Shang e product Transactions
labor
hai) controll s in 2023
service
Co., ing released on
s
Ltd. party CNINFO
Tianbo Control Announceme
Selling
Electro led by nt on
goods
nic the Teleco Expected
and
Inform same mmuni Routine
providi Market Bank April 7,
ation ultimat cations 15.28 15.28 0.04% No 15.28 Related Party
ng price transfer 2023
Techno e product Transactions
labor
logy controll s in 2023
service
Co., ing released on
s
Ltd. party CNINFO
The 7th Control Selling Teleco Market Bank April 7, Announceme
25.23 25.23 0.06% No 25.23
Resear led by goods mmuni price transfer 2023 nt on
78
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
ch the and cations Expected
Institut same providi product Routine
e of ultimat ng s Related Party
CETC e labor Transactions
controll service in 2023
ing s released on
party CNINFO
Control Announceme
Selling
led by nt on
goods
the Teleco Expected
Nanjin and
same mmuni Routine
g Lopu providi Market Bank April 7,
ultimat cations 5.21 5.21 0.01% No 5.21 Related Party
Co., ng price transfer 2023
e product Transactions
Ltd. labor
controll s in 2023
service
ing released on
s
party CNINFO
Control Announceme
Selling
led by nt on
Nanjin goods
the Teleco Expected
g Lopu and
same mmuni Routine
Techno providi Market Bank April 7,
ultimat cations 11.32 11.32 0.03% No 11.32 Related Party
logy ng price transfer 2023
e product Transactions
Co., labor
controll s in 2023
Ltd. service
ing released on
s
party CNINFO
Control Announceme
Selling
led by nt on
CETC goods Termin
the Expected
Eastco and als,
same Routine
m providi support Market Bank April 7,
ultimat 8.10 8.1 0.02% No 8.10 Related Party
Group ng ing price transfer 2023
e Transactions
Co., labor equipm
controll in 2023
Ltd. service ent
ing released on
s
party CNINFO
Liyang
System
Control Announceme
Equip Selling
led by nt on
ment goods
the Teleco Expected
Co., and
same mmuni Routine
Ltd. of providi Market Bank April 7,
ultimat cations 6.90 6.9 0.02% No 6.90 Related Party
the ng price transfer 2023
e product Transactions
28th labor
controll s in 2023
Resear service
ing released on
ch s
party CNINFO
Institut
e
Control Announceme
Selling
led by nt on
Eastern goods
the Teleco Expected
Comm and
same mmuni Routine
unicati providi Market Bank April 7,
ultimat cations 5.64 5.64 0.01% No 5.64 Related Party
ons ng price transfer 2023
e product Transactions
Co., labor
controll s in 2023
Ltd. service
ing released on
s
party CNINFO
Potevio Control Rentin Rent Announceme
Market Bank April 7,
Hi-tech led by g and 31.54 31.54 81.97% 100 No 31.54 nt on
price transfer 2023
Industr the propert propert Expected
79
Full text of the Semi-annual Report for 2023 of Nanjing Putian Telecommunications Co., Ltd.
y Co., same y y Routine
Ltd. ultimat manage Related Party
e ment Transactions
controll fees in 2023
ing released on
party CNINFO
Control Announceme
led by nt on
the Housin Expected
Nanjin Leasin
same g and Routine
g Lopu g Market Bank April 7,
ultimat propert 19.76 19.76 3.63% No 19.76 Related Party
Co., propert price transfer 2023
e y Transactions
Ltd. y
controll income in 2023
ing released on
party CNINFO
300
Control Announceme
The led by nt on
14th the Housin Expected
Leasin
Resear same g and Routine
g Market Bank April 7,
ch ultimat propert 107.53 107.53 19.75% No 107.53 Related Party
propert price transfer 2023
Institut e y Transactions
y
e of controll income in 2023
CETC ing released on
party CNINFO
Control Announceme
China led by nt on
Potevio the Expected
Interest Interest
Inform same Routine
on on Market Bank April 7,
ation ultimat 214.58 214.58 53.03% 650 No 214.58 Related Party
entrust entrust price transfer 2023
Industr e Transactions
ed loan ed loan
y Co., controll in 2023
Ltd. ing released on
party CNINFO
Control Announceme
led by nt on
the Interest Expected
CETC Interest
same on Routine
Financ on Market April 7,
ultimat guarant 45.86 45.86 11.33% 350 No - 45.86 Related Party
e Co., secured price 2023
e eed Transactions
Ltd. loan
controll loan in 2023
ing released on
party CNINFO
2,213.2
Total -- -- -- 17,400 -- -- -- -- --
9
Details of return of large sales Not applicable
The Company estimates that the total amount of routine related party transactions in 2023 does not exceed 174
million yuan, including no more than 60 million yuan for the purchase of products and acceptance of labor services
from related parties, no more than 100 million yuan for the sale of products and provision of labor services to related
parties, no more than 3 million yuan for the rental income from properties leased to related parties, no more than 1
Actual performance during the reporting
million yuan for the rent and property management services accepted for properties leased from related parties, no
period (if any) for expected routine
more than 6.5 million yuan for the interest paid on entrusted loans to related parties, and no more than 3.5 million
related party transactions during the
yuan for the interest paid on secured loans to related parties. During the first half of the year, the actual total amount
period with estimated total amount by
of routine related party transactions was 22.1329 million yuan, including 1.0965 million yuan for the purchase of
category
goods and acceptance of labor services, 16.8437 million yuan for the sale of goods and provision of labor services,
315.4 thousand yuan for rent and property management fees, 1.2729 million yuan of rental income, and 2.1458
million yuan for interest paid on entrusted loans, and 458.6 thousand yuan for interest paid on secured loans. The
actual total amount did not exceed the amount estimated at the beginning of the year.
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Reasons for the large difference between
the transaction price and the market Not applicable
reference price (if applicable)
2. Related party transactions arising from the acquisition or sale of assets or equity
□Applicable Not applicable
During the reporting period, there were no related party transactions of assets or equity acquisition or sale.
3. Related party transactions involving joint external investment
□Applicable Not applicable
During the reporting period, there were no related party transactions involving joint external investment
4. Related credits and debts
Applicable □Not applicable
Whether there were non-operating related party transactions involving creditor's rights and debts
□Yes No
During the reporting period, there was no non-operating related party transactions involving creditor's rights and debts
5. Transactions with finance companies as related parties of the Company
Applicable □Not applicable
Deposit business
Amount in the current period
Maximum Total
Range of Opening Total deposit Closing
Related daily deposit withdrawal
Relation Deposit balance (in amount in balance (in
parties limit (in amount in
interest rate 10,000 yuan) the current 10,000 yuan)
10,000 yuan) the current
period (in
period (in
10,000 yuan)
10,000 yuan)
Other
CETC enterprises
Finance Co., controlled by 62,397.3 0.20%-1% 2,407.44 55,698.22 54,011.38 4,090.08
Ltd. the actual
controller
Loan business
Amount in the current period
Total
Loan amount Range of Opening Total loan Closing
Related repayment
Relation (in 10,000 loan interest balance (in amount in balance (in
parties amount in
yuan) rate 10,000 yuan) the current 10,000 yuan)
the current
period (in
period (in
10,000 yuan)
10,000 yuan)
China Other
Potevio enterprises 4.05%-
15,580 15,580 0 5,000 10,580
Information controlled by 4.97%
Industry Co., the actual
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Ltd. controller
Other
CETC enterprises
Finance Co., controlled by 7,000 3.75%-3.8% 0 7,000 0 7,000
Ltd. the actual
controller
Credit granting or other financial business
Total amount (in Actual amount incurred
Related parties Relation Business type
10,000 yuan) (in 10,000 yuan)
Other enterprises
CETC Finance Co.,
controlled by the actual Credit granting 7,000 7,000
Ltd.
controller
6. Transactions between the financial company controlled by the Company and related parties
□Applicable Not applicable
There was no deposit, loan, credit or other financial business between the financial company controlled by the Company and its
related parties.
7. Other major related party transactions
□Applicable Not applicable
There were no other major related party transactions during the reporting period.
XII. Major contracts and their performance
1. Trusteeship, contracting and leasing
(1) Trusteeship
□Applicable Not applicable
There was no trusteeship during the reporting period.
(2) Contracting
□Applicable Not applicable
There was no contracting during the reporting period.
(3) Leasing
Applicable □Not applicable
Description of leasing
During the reporting period, the Company and its subsidiaries incurred rental expenses of 384,800 yuan and rental revenue of
5,443,600 yuan.
Items that brought profit or loss to the Company amounting to more than 10% of the total profit of the Company in the reporting
period
□Applicable Not applicable
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The Company did not have any leasing item that brought profit or loss to the Company amounting to more than 10% of the total
profit of the Company in the reporting period.
2. Material guarantees
□Applicable Not applicable
There was no material guarantee during the reporting period.
3. Entrusted financial management
□Applicable Not applicable
There was no entrusted financial management during the reporting period.
4. Other major contracts
□Applicable Not applicable
There was no other major contract during the reporting period.
XIII. Explanations of other major matters
Applicable □Not applicable
The index of major matters disclosed by the Company during the reporting period is as follows:
Related query index of the information
Name of matter (announcement) Date of disclosure
disclosure website
Announcement on Changing the Designated
January 17, 2023 CNINFO (www.cninfo.com.cn)
Information Disclosure Media
Annual Performance Forecast for 2022 January 20, 2023 CNINFO (www.cninfo.com.cn)
Announcement on Independent Directors
Obtaining Independent Director Qualification February 4, 2023 CNINFO (www.cninfo.com.cn)
Certificates
Announcement on the Resignation of the Vice
February 15, 2023 CNINFO (www.cninfo.com.cn)
Chairman of the Board of Directors
Announcement of the Resolutions of the 4th
February 17, 2023 CNINFO (www.cninfo.com.cn)
Meeting of the 8th Board of Directors
Notice on Convening the 1st Extraordinary
February 17, 2023 CNINFO (www.cninfo.com.cn)
General Meeting of Shareholders in 2023
Announcement of the Resolutions of the 1st
Extraordinary General Meeting of March 7, 2023 CNINFO (www.cninfo.com.cn)
Shareholders in 2023
Announcement on Accumulated Litigation April 7, 2023 CNINFO (www.cninfo.com.cn)
Announcement of the Resolutions of the 5th
April 7, 2023 CNINFO (www.cninfo.com.cn)
Meeting of the 8th Board of Directors
Announcement on Expected Routine Related
April 7, 2023 CNINFO (www.cninfo.com.cn)
Party Transactions in 2023
Announcement on Completing Transfer
Registration and Changing Controlling
April 19, 2023 CNINFO (www.cninfo.com.cn)
Shareholder for Free Transfer of State-owned
Shares
Summary of the Annual Report for 2022 April 20, 2023 CNINFO (www.cninfo.com.cn)
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Announcement on Expected Continuous
Related Party Transactions with CETC April 20, 2023 CNINFO (www.cninfo.com.cn)
Finance Co., Ltd. in 2023
Announcement on Engaging an Accounting
April 20, 2023 CNINFO (www.cninfo.com.cn)
Firm
Notice of Annual General Meeting of
April 20, 2023 CNINFO (www.cninfo.com.cn)
Shareholders
Announcement of Resolutions of the Board
April 20, 2023 CNINFO (www.cninfo.com.cn)
of Directors
Announcement on Provision for Impairment
April 20, 2023 CNINFO (www.cninfo.com.cn)
of Assets in 2022
Announcement of Resolutions of the Board
April 20, 2023 CNINFO (www.cninfo.com.cn)
of Supervisors
Ongoing Risk Assessment Report for CETC
April 20, 2023 CNINFO (www.cninfo.com.cn)
Finance Co., Ltd.
Annual Report for 2022 April 20, 2023 CNINFO (www.cninfo.com.cn)
Announcement of Resolutions of the Board
April 29, 2023 CNINFO (www.cninfo.com.cn)
of Directors
Report for the First Quarter of 2023 April 29, 2023 CNINFO (www.cninfo.com.cn)
Announcement of Nanjing Putian
Telecommunications Co., Ltd. on Reply to
Shenzhen Stock Exchange's Inquiry Letter on May 26, 2023 CNINFO (www.cninfo.com.cn)
the Annual Report for 2022 of Nanjing Putian
Telecommunications Co., Ltd.
Announcement of Resolution of 2022 Annual
May 27, 2023 CNINFO (www.cninfo.com.cn)
General Meeting of Shareholders
Announcement on Convening the 2022
May 30, 2023 CNINFO (www.cninfo.com.cn)
Online Performance Briefing
Announcement on Accumulated Litigation June 8, 2023 CNINFO (www.cninfo.com.cn)
XIV. Major matters of the Company's subsidiaries
□Applicable Not applicable
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Section VII Changes in Shares and Shareholders
I. Changes in shares
1. Changes in shares
Unit: share
Before the change Increase or decrease (+, -) in this change After the change
Conversion
Issue of Share of provident
Quantity Proportion Others Subtotal Quantity Proportion
new shares offering fund into
shares
I. Unlisted
tradable 115,000,000 53.49% 115,000,000 53.49%
shares
1. Shares
115,000,000 53.49% 115,000,000 53.49%
of founders
Where:
Shares held 115,000,000 53.49% 115,000,000 53.49%
by the state
Shares
held by
domestic
legal
persons
Shares
held by
overseas
legal
persons
Others
2. Shares
held by
legal
persons
3. Shares
held by
employees
4.
Preferred
shares or
other
II. Listed
100,000,00 100,000,00
tradable 46.51% 46.51%
0 0
shares
1.
Ordinary
shares in
Renminbi
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2.
Foreign 100,000,00 100,000,00
46.51% 46.51%
shares listed 0 0
in China
3.
Foreign
shares listed
overseas
4. Others
III. Total
215,000,00 215,000,00
number of 100.00% 100.00%
0 0
shares
Reasons for changes in shares
□Applicable Not applicable
Approval of share changes
□Applicable Not applicable
Transfer of shares
□Applicable Not applicable
Implementation progress of share repurchase
□Applicable Not applicable
Implementation progress of reducing repurchased shares by centralized bidding
□Applicable Not applicable
Effect of share changes on financial indicators such as basic and diluted earnings per share and net assets per share attributable to
ordinary shareholders of the Company for the most recent year and the most recent period
□Applicable Not applicable
Other contents that the Company deems necessary to be disclosed or required to be disclosed by the securities regulatory authority
□Applicable Not applicable
2. Changes in restricted shares
□Applicable Not applicable
II.Issuance and listing of securities
□Applicable Not applicable
III. Number and shareholding of shareholders of the Company
Unit: share
Total number of preferred
Total number of common shareholders whose voting
shareholders at the end of the 7,750 rights were restored at the end 0
reporting period of the reporting period (if any)
(see Note 8)
Shareholders holding more than 5% of common shares or the top 10 shareholders of common shares
Name of Type of Shareholding Number of Increase or Number of Number of Pledge, marking or freezing
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shareholder shareholder ratio common decrease unlisted listed and
shares held at during the tradable tradable
the end of the reporting common common Shares status Quantity
reporting period shares held shares held
period
CETC Glarun
State-owned
Group Co., 53.49% 115,000,000 0 115,000,000 0
legal person
Ltd.
Shenwan
Hongyuan Overseas
2.55% 5,473,788.00 871,688.00 0 5,473,788.00
Securities legal person
(H.K.) Ltd.
GUOTAI
JUNAN
SECURITIES Overseas
1.61% 3,464,058.00 911,600.00 0 3,464,058.00
(HONG legal person
KONG)
LIMITED
Natural
Zheng Enyue person in 1.14% 2,449,739.00 0.00 0 2,449,739.00
China
Natural
Sun Huiming person in 0.93% 2,000,000.00 -80,000.00 0 2,000,000.00
China
Natural
Gu Jinhua person in 0.87% 1,871,371.00 0.00 0 1,871,371.00
China
Natural
He Wei person in 0.60% 1,280,000.00 494,600.00 0 1,280,000.00
China
BOCI
Overseas
SECURITIES 0.59% 1,266,945.00 0.00 0 1,266,945.00
legal person
LIMITED
Natural
Zhen
person in 0.47% 1,004,100.00 1,800.00 0 1,004,100.00
Hongquan
China
Natural
Xiang Yan person in 0.42% 905,602.00 0.00 0 905,602.00
China
Strategic investors or general
legal entities becoming top 10
common shareholders as a None
result of the placement of new
shares (if any) (see Note 3)
Description of the above- Among the top 10 shareholders, CETC Glarun Group Co., Ltd. was not related to other shareholders and was not a party
mentioned shareholders' acting in concert. The Company did not know whether other shareholders were related to each other or were parties
association or concerted actions acting in concert.
Explanation of the above
shareholders' involvement in
proxy/entrusted voting rights None
and abstention from voting
rights
Special note on the existence of
repurchase special accounts of
None
the top 10 shareholders (if any)
(see Note 11)
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Shareholding of the top 10 common shareholders of tradable shares
Type of shares
Name of shareholder Number of listed and tradable common shares held at the end of the reporting period Type of
Quantity
shares
Domestic
Shenwan Hongyuan Securities
5,473,788.00 listed foreign 5,473,788.00
(H.K.) Ltd.
shares
GUOTAI JUNAN Domestic
SECURITIES (HONG 3,464,058.00 listed foreign 3,464,058.00
KONG) LIMITED shares
Domestic
Zheng Enyue 2,449,739.00 listed foreign 2,449,739.00
shares
Domestic
Sun Huiming 2,000,000.00 listed foreign 2,000,000.00
shares
Domestic
Gu Jinhua 1,871,371.00 listed foreign 1,871,371.00
shares
Domestic
He Wei 1,280,000.00 listed foreign 1,280,000.00
shares
Domestic
BOCI SECURITIES LIMITED 1,266,945.00 listed foreign 1,266,945.00
shares
Domestic
Zhen Hongquan 1,004,100.00 listed foreign 1,004,100.00
shares
Domestic
Xiang Yan 905,602.00 listed foreign 905,602.00
shares
Domestic
Xia Zulin 900,000.00 listed foreign 900,000.00
shares
Description of the relationship
or concerted action among the
top 10 common shareholders
with unlimited tradable shares,
and between the top 10 The Company did not know whether the above shareholders were related to each other or were acting in concert.
common shareholders with
unlimited tradable shares and
the top 10 common
shareholders
Description of the participation
of the top 10 common
shareholders in margin None
financing and securities lending
business (if any) (see Note 4)
Whether the Company's top 10 ordinary shareholders and top 10 shareholders holding ordinary shares with unlimited selling
conditions entered into agreed repurchase transactions during the reporting period
□Yes No
The top 10 ordinary shareholders of the Company and the top 10 shareholders holding ordinary shares with unlimited selling
conditions did not conduct agreed repurchase transactions during the reporting period.
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IV. Changes in shareholdings of directors, supervisors and senior executives
□Applicable Not applicable
The shareholdings of directors, supervisors and senior executives of the Company did not change during the reporting period. For
details, please refer to the Annual Report for 2022.
V. Change of controlling shareholder or actual controller
Changes of controlling shareholder during the reporting period
Applicable □Not applicable
Name of new controlling shareholder CETC Glarun Group Co., Ltd.
Date of change April 17, 2023
Announcement on Completing Transfer Registration and
Changing Controlling Shareholder for Free Transfer of State-
Query index on the designated website
owned Shares (Announcement No.: 2023-011) released on
CNINFO
Date of disclosure on the designated website April 18, 2023
Change of actual controller during the reporting period
□Applicable Not applicable
The actual controller of the Company was not changed during the reporting period.
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Section VIII Information on Preferred Shares
□Applicable Not applicable
The Company had no preferred shares during the reporting period.
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Section IX Information on Bonds
□Applicable Not applicable
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Section X. Financial ReportI.
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
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Consolidated balance sheet
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. 2023/6/30 Unit：RMB
Item Notes 2023/6/30 2022/12/31
Current assets：
Cash and bank balances V(1) 134,907,485.72 173,863,825.35
Held-for-trading financial assets
Derivative financial assets
Notes receivable V(2) 9,073,531.13 27,689,906.04
Accounts receivable V(3) 377,609,239.06 304,616,212.04
Receivables financing V(4) 15,035,046.06 30,668,999.36
Advances paid V(5) 23,085,926.25 19,081,824.22
Other receivable V(6) 19,580,140.53 11,716,301.19
Including: Interest receivable
dividend receivable
Inventories V(7) 147,900,393.71 166,440,238.56
Contract assets
assets hold available for sale
Non-current assets due within one year
Other current assets V(8) 4,913,406.41 3,432,231.67
Total current assets 732,105,168.87 737,509,538.43
Non-current assets：
Debt investment
Other debt investment
Long-term receivable
Long-term equity investments V(9) 10,412,604.45 10,422,321.80
Other equity instrument investments V(10) 741,953.00 741,953.00
Other non-current financial assets
Investment property V(11) 19,739,159.39 20,351,240.03
Fixed assets V(12) 95,565,309.88 97,917,714.15
Construction in progress V(13) 803.89
Productive biological assets
Oil and gas asset
Right-of-use asset
Intangible assets V(14) 20,041,117.67 20,493,463.76
Development expenditure
Goodwill
Long-term prepayments V(15) 3,197,531.89 3,953,824.45
Deferred tax assets V(16)
Other non-current assets
Total non-current assets 149,698,480.17 153,880,517.19
Total assets 881,803,649.04 891,390,055.62
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Consolidated balance sheet (continued)
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. 2023/6/30 Unit：RMB
Item Notes 2023/6/30 2022/12/31
Current liabilities：
Short-term borrowings V(17) 92,000,000.00 112,836,727.77
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable V(18) 418,331,620.17 470,867,283.07
Advances received V(19) 240,585.08
Contract liabilities V(20) 20,979,225.57 15,048,811.36
Employee benefits payable V(21) 17,613,721.31 17,473,887.86
Taxes payable V(22) 3,004,676.92 7,390,521.21
Other payable V(23) 57,191,932.37 59,206,281.08
Including: Interest payable
dividend payable 1,692,213.38 1,692,213.38
Liability hold for sale
Non-current liabilities due within one year
Other current liabilities V(24) 2,098,763.96 1,691,302.29
Total current liability 611,219,940.30 684,755,399.72
Non-current liability：
Long-term borrowings V(25) 175,800,000.00 105,800,000.00
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 175,800,000.00 105,800,000.00
Total liability 787,019,940.30 790,555,399.72
Owners' equity (or shareholders' equity):
Share capital V(26) 215,000,000.00 215,000,000.00
Other equity instrument
Including: preferred shares
Perpetual bond
Capital reserve V(27) 197,097,915.40 197,097,915.40
Less: treasury stocks
Other comprehensive income (OCI) V(28) -1,854,910.00 -1,854,910.00
Special reserves
Surplus reserve V(29) 589,559.77 589,559.77
Undistributed profit V(30) -399,799,125.81 -388,837,228.89
Total owner's equity (or shareholders' equity) attributable to the
11,033,439.36 21,995,336.28
parent company
Minority shareholders' equity 83,750,269.38 78,839,319.62
Total owner's equity (or shareholders' equity) 94,783,708.74 100,834,655.90
Total liabilities and owners’ equity (or shareholders’ equity) 881,803,649.04 891,390,055.62
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Parent Company Balance Sheet
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. 2023/6/30 Unit：RMB
Item Notes 2023/6/30 2022/12/31
Current assets：
Cash and bank balances 9,417,327.04 29,165,783.14
Held-for-trading financial assets
Derivative financial assets
Notes receivable 1,109,294.70 3,639,352.49
Accounts receivable XII(I) 109,926,809.14 104,179,575.75
Receivables financing 519,600.00 989,585.40
Advances paid 14,727,959.79 13,037,464.19
Other receivable XII(II) 33,677,355.79 25,327,107.09
Including: Interest receivable
dividend receivable 600,000.00 600,000.00
Inventories 27,395,471.23 48,749,884.92
Contract assets
assets hold available for sale
Non-current assets due within one year
Other current assets 547,737.72 441,828.14
Total current assets 197,321,555.41 225,530,581.12
Non-current assets：
Debt investment
Other debt investment
Long-term receivable
Long-term equity investments XII(III) 122,527,163.09 122,536,880.44
Other equity instrument investment 741,953.00 741,953.00
Other non-current financial assets
Investment property
Fixed assets 40,142,448.64 41,067,922.59
Construction in progress
Productive biological assets
Oil and gas asset
Right-of-use asset
Intangible assets 4,211,909.56 4,316,226.80
Development expenditure
Goodwill
Long-term prepayments 2,495,045.47 3,057,959.77
Deferred tax assets
Other non-current assets
Total non-current assets 170,118,519.76 171,720,942.60
Total assets 367,440,075.17 397,251,523.72
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Parent Company Balance Sheet (Continued)
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. 2023/6/30 Unit：RMB
Item Notes 2023/6/30 2022/12/31
Current liabilities：
Short-term borrowings 50,000,000.00
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 147,914,582.12 168,830,761.76
Advances received
Contract liabilities 14,202,657.47 8,169,030.79
Employee benefits payable 7,862,260.48 7,643,011.88
Taxes payable 33,638.68 244,957.88
Other payables 138,338,224.86 154,192,779.17
Including: Interest payable
dividend payable
Liability hold for sale
Non-current liabilities due within one year
Other current liabilities 1,217,810.10 782,311.39
Total current liability 309,569,173.71 389,862,852.87
Non-current liability：
Long-term borrowings 175,800,000.00 105,800,000.00
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 175,800,000.00 105,800,000.00
Total liability 485,369,173.71 495,662,852.87
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 -490,527,790.64 -471,010,021.25
Total owner's equity (or shareholders' equity) -117,929,098.54 -98,411,329.15
Total liabilities and owners’ equity (or shareholders’ equity) 367,440,075.17 397,251,523.72
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Consolidated Income Statement
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. From January to June 2023 Unit：RMB
Current period Preceding period
Item Notes
cumulative comparative
I. Operating revenue V(31) 392,539,877.69 407,312,616.35
Less：Operating cost V(31) 303,199,007.67 323,444,209.14
Taxes and surcharges V(32) 2,187,649.69 2,360,382.34
Selling expenses V(33) 40,563,329.57 40,632,210.06
Administrative expenses V(34) 32,677,949.24 28,299,430.10
R&D expenses V(35) 19,422,168.02 23,642,718.55
Financial expenses V(36) 3,758,865.48 4,638,360.06
Including:Interst expense 4,046,684.70 5,291,794.15
Interst income 309,650.00 779,954.73
Add: other income V(37) 1,863,644.38 1,075,367.01
Investment income (losses are listed with "-") V(38) 242,664.28 -5,753,130.77
Including: investment income from associates and joint ventures -9,717.35 -0.99
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(39) 2,379,378.23 -3,623,776.05
Assets impairment loss(losses are listed with "-") V(40) -46,540.00 -9,993.42
Gain on assets disposal (loss are listed with "-") V(41) 42,412.44 59,868.36
II. Operating profit（loss show as “－”） -4,787,532.65 -23,956,358.77
Plus: non-operating revenue V(42) 75,760.00 2,742,228.49
Less: non-operating expenditures V(43) 827,499.78 23,319.82
III. Total profit (total loss is listed with "-") -5,539,272.43 -21,237,450.10
Deduct: income tax expense V(44) 511,674.73 3,414,845.68
IV. Net profit (net loss is listed with "-") -6,050,947.16 -24,652,295.78
(1) Classified by business continuity:
1.Net profits from continuing operations -6,050,947.16 -24,652,295.78
2.Discontinued operating net profit
(2) Classified by ownership:
1.Net profits belong to the parent company's owner -10,961,896.92 -27,711,297.33
2.Minority shareholder gains and losses 4,910,949.76 3,059,001.55
V. Net after-tax of other comprehensive income 4,964,727.82
(1) Net after-tax amount of other comprehensive income attributable to owners of the
4,964,727.82
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
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
7.Other
(2) Net after-tax amount of other comprehensive income attributable to minority
shareholders
VI. Total comprehensive income -6,050,947.16 -19,687,567.96
(1) Total comprehensive income attributable to owners of the parent -10,961,896.92 -22,746,569.51
(2) Total comprehensive income attributable to minority shareholders 4,910,949.76 3,059,001.55
VII. Earnings per share
(1) Basic earnings per share -0.05 -0.13
(2) Diluted earnings per share -0.05 -0.13
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Parent company income statement
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. From January to June 2023 Unit：RMB
Current period Preceding period
Item Notes
cumulative comparative
I. Operating revenue XII（IV） 46,221,763.63 50,038,373.04
Less：Operating cost XII（IV） 41,284,386.04 46,478,802.30
Taxes and surcharges 309,414.84 470,537.41
Selling expenses 5,379,918.10 7,634,487.51
Administrative expenses 17,481,142.62 13,590,533.21
R&D expenses 976,403.00 2,099,006.16
Financial expenses 2,571,625.34 3,082,696.98
Including:Interst expense 3,020,247.03 3,512,273.06
Interst income 443,798.48 443,802.24
Add: other income
Investment income (losses are listed with "-") XII（V） 242,664.28 9,275,567.95
Including: investment income from associates and joint ventures -9,717.35 -0.99
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 "-") 2,694,169.71 -2,247,159.32
Assets impairment loss(losses are listed with "-") -9,993.42
Gain on assets disposal (loss are listed with "-") 11,078.62
II. Operating profit（loss show as “－”） -18,844,292.32 -16,288,196.70
Plus: non-operating revenue 51,484.34 0.30
Less: non-operating expenditures 724,961.41 10,507.17
III. Total profit (total loss is listed with "-") -19,517,769.39 -16,298,703.57
Deduct: income tax expense
IV. Net profit (net loss is listed with "-") -19,517,769.39 -16,298,703.57
(1) Net profits from continuing operations -19,517,769.39 -16,298,703.57
(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 -19,517,769.39 -16,298,703.57
VII. Earnings per share:
(1) Basic earnings per share
(2) Diluted earnings per share
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Consolidated statement of cash flow
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. From January to June 2023 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 services 344,684,450.45 363,970,444.16
Tax Refund 1,058,502.26 2,247,311.40
Other cash received relating to operating activities V(45) 29,110,786.49 30,412,910.74
Subtotal of cash inflow from operating activities 374,853,739.20 396,630,666.30
Cash paid for purchasing goods and receiving labor services 305,450,019.65 329,573,224.21
Cash paid to and for employees 84,102,978.32 96,370,956.21
Various taxes and fees paid 21,714,122.39 12,364,394.53
Other cash payments related to operating activities V(45) 49,669,102.31 54,186,088.91
Subtotal of cash outflows from operating activities 460,936,222.67 492,494,663.86
Net cash flow from operating activities -86,082,483.47 -95,863,997.56
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 and other
2,800.00 71,200.00
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 2,800.00 20,408,405.48
Cash paid for the purchase and construction of fixed assets, intangible assets
1,413,975.50 1,427,941.67
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 1,413,975.50 1,427,941.67
Net cash flows from investing activities -1,411,175.50 18,980,463.81
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 133,000,000.00 45,900,000.00
Other cash receipts related to financing activities V(45) 25,555.55
Subtotal of cash inflows from financing activities 133,025,555.55 45,900,000.00
Cash paid for debt repayment 83,800,000.00 18,600,000.00
Cash paid for dividends, profits, or interest payments 4,212,938.59 6,123,632.11
Including: dividends and profits paid by subsidiaries to minority shareholders 450,000.00
Other cash payments related to financing activities V(45) 1,138,717.12
Subtotal of cash outflows from financing activities 88,012,938.59 25,862,349.23
Net cash flow from financing activities 45,012,616.96 20,037,650.77
IV. The impact of exchange rate changes on cash and cash equivalents 33,020.09 19,186.31
V. Net increase in cash and cash equivalents -42,448,021.92 -56,826,696.67
Add: the balance of cash and cash equivalents at the beginning of the period 164,384,741.39 180,459,070.86
VI. Balance of cash and cash equivalents at the end of the period 121,936,719.47 123,632,374.19
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Statement of cash flow of Parent Co.
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. From January to June 2023 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 services 53,393,029.32 64,382,978.54
Tax Refund 1,333,269.39
Other cash received relating to operating activities 7,684,967.30 15,236,826.00
Subtotal of cash inflow from operating activities 61,077,996.62 80,953,073.93
Cash paid for purchasing goods and receiving labor services 59,935,029.03 55,493,018.43
Cash paid to and for employees 24,812,074.81 32,894,116.80
Various taxes and fees paid 2,568,854.79 1,139,849.38
Other cash payments related to operating activities 9,918,806.22 16,633,930.15
Subtotal of cash outflows from operating activities 97,234,764.85 106,160,914.76
Net cash flow from operating activities -36,156,768.23 -25,207,840.83
II. Cash flow from investment activities:
Cash received from investment
Cash received from investment income 9,153,400.00
Net cash received from the disposal of fixed assets, intangible assets and
2,800.00
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 2,800.00 9,153,400.00
Cash paid for the purchase and construction of fixed assets, intangible
392,200.00 1,000.00
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 392,200.00 1,000.00
Net cash flows from investing activities -389,400.00 9,152,400.00
III. Cash flow from financing activities:
Absorb cash received from investment
Cash received from borrowing 110,000,000.00
Other cash receipts related to financing activities 1,000,000.00
Subtotal of cash inflows from financing activities 110,000,000.00 1,000,000.00
Cash paid for debt repayment 90,000,000.00
Cash paid for dividends, profits, or interest payments 2,723,383.89 3,492,768.06
Other cash payments related to financing activities 1,738,717.12
Subtotal of cash outflows from financing activities 92,723,383.89 5,231,485.18
Net cash flow from financing activities 17,276,616.11 -4,231,485.18
IV. The impact of exchange rate changes on cash and cash equivalents 33,020.09 18,860.82
V. Net increase in cash and cash equivalents -19,236,532.03 -20,268,065.19
Add: the balance of cash and cash equivalents at the beginning of the period 23,782,731.06 33,541,475.85
VI. Balance of cash and cash equivalents at the end of the period 4,546,199.03 13,273,410.66
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Consolidated statement of change of equity
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. From January to June 2023 Unit：RMB
Current period
Equity attributable to parent company
Item Minority
Other Total owner's equity
Paid-in capital (or Other equity instruments 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 215,000,000.00 197,097,915.40 -1,854,910.00 589,559.77 -388,837,228.89 21,995,336.28 78,839,319.62 100,834,655.90
Add: Accounting policy changes
Correction of previous errors
Merger of enterprises under the same control
Others
II. Balance at the beginning of the year 215,000,000.00 197,097,915.40 -1,854,910.00 589,559.77 -388,837,228.89 21,995,336.28 78,839,319.62 100,834,655.90
III. The amount of increase or decrease in this year (decrease is
-10,961,896.92 -10,961,896.92 4,910,949.76 -6,050,947.16
listed with "-")
(1) Total comprehensive income -10,961,896.92 -10,961,896.92 4,910,949.76 -6,050,947.16
(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 215,000,000.00 197,097,915.40 -1,854,910.00 589,559.77 -399,799,125.81 11,033,439.36 83,750,269.38 94,783,708.74
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Consolidated statement of change of equity(Continued)
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. From January to June 2023 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 215,000,000.00 197,864,174.08 -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 (decrease is listed with "-") 4,964,727.82 -27,711,297.33 -22,746,569.51 -7,787,598.45 -30,534,167.96
(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
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Consolidated statement of change of equity of Parent Co.
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. From January to June 2023 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 -471,010,021.25 -98,411,329.15
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 -471,010,021.25 -98,411,329.15
III. The amount of increase or decrease in this year (decrease is listed with "-") -19,517,769.39 -19,517,769.39
(1) Total comprehensive income -19,517,769.39 -19,517,769.39
(2) Owner's investment and reduction of capital
1. Ordinary shares invested by the owner
2. Capital invested by holders of other equity instruments
3. The amount of share-based payment included in owner's equity
4. Other
(3) Profit distribution
1. Withdraw surplus reserve
2. Distribution to owners (or shareholders)
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 -490,527,790.64 -117,929,098.54
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Consolidated statement of change of equity of Parent Co.(Continued)
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. From January to June 2023 Unit：RMB
Preceding 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 (decrease is listed with "-") -16,298,703.57 -16,298,703.57
(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
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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.
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Design, construction, installation and service of building intelligent system engineering. Lease of
self owned assets such as houses and equipment.
The financial statements have been deliberated and approved for issue by the Board of
Directors dated August 25, 2023.
The Company has brought 7 subsidiaries including Nanjing Putian Telege Intelligent Building
Co., Ltd., Nanjing Southern Telecom Co., Ltd, and 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, 2023, the operating results and cash flows of the year from
January to June 2023 and other relevant information.
(II) Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian
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calendar.
(III) Operating cycle
The Company has a relatively short operating cycle for its business, an asset or a liability is
classified as current if it is expected to be realized or due within 12 months.
(IV) Functional currency
The Company’s functional currency is Renminbi (RMB) Yuan.
(V) Accounting treatments of business combination under and not under common control
1. Accounting treatment of business combination under common control
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.
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(VI) Compilation method of consolidated financial statements
The parent company brings all its controlled subsidiaries into the consolidation scope. The
consolidated financial statements are compiled by the parent company according to “CASBE 33 –
Consolidated Financial Statements”, based on relevant information and the financial statements of
the parent company and its subsidiaries.
(VII) Classification of joint arrangements and accounting treatment of joint operations
1. 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.
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3. Accounting treatment of joint venture
The company is the joint venture party, in accordance with the "Accounting Standards for
Enterprises No. 2 - Long-term Equity investment" for the joint venture investment accounting
treatment; The Company is not a joint venture party, according to the extent of the impact on the
joint venture accounting treatment.
(VIII) Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for
payment. Cash equivalents refer to short-term, highly liquid investments that can be readily
converted to cash and that are subject to an insignificant risk of changes in value.
(IX) Foreign currency translation
1. Translation of foreign currency business
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 and reclassification of financial instruments
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Financial instruments refer to contracts that form the financial assets of one party and the
financial liabilities or equity instruments of another party.
(1) Financial assets
The Company classifies financial assets that meet the following conditions as financial assets
measured at amortized cost: ① The Company's business model of managing financial assets is to
collect contract cash flow; ② The terms of the contract of the financial asset stipulate that the cash
flow generated on a specified date is only the payment of the principal amount and the interest
based on the outstanding principal amount.
The Company classifies the financial assets that meet the following conditions as those
measured at fair value and whose changes are included in other comprehensive income: ① The
Company's business model of managing financial assets aims at both collecting contract cash flow
and selling the financial assets; ② The terms of the contract of the financial asset stipulate that the
cash flow generated on a specified date is only the payment of the principal amount and the
interest based on the outstanding principal amount.
For investments in non-trading equity instruments, the Company may, upon initial recognition,
irrevocably designate them as financial assets measured at fair value and whose changes are
included in other comprehensive income. The designation is made on an individual investment
basis and the underlying investment meets the definition of an equity instrument from the issuer's
point of view.
In addition to financial assets classified as financial assets measured at amortized cost and
financial assets measured at fair value and whose changes are booked into other comprehensive
income, the Company classifies them as financial assets measured at fair value and whose changes
are booked into current profit and loss. In the initial recognition, if accounting mismatch can be
eliminated or reduced, the Company may irrevocably designate financial assets as financial assets
measured at fair value and whose changes are recorded into current profit and loss.
When the Company changes the business model of managing financial assets, it will reclassify
all the affected financial assets on the first day of the first reporting period after the change of the
business model, and adopt the future applicable method to conduct relevant accounting treatment
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from the reclassification date, without retroactive adjustment of previously recognized gains, losses
(including impairment losses or gains) or interest.
(2) Financial liabilities
Financial liabilities at the initial recognition are classified as: financial liabilities measured at
fair value and whose changes are booked into current profit and loss; The financial assets transfer
does not meet the conditions for termination of recognition or continues to involve the financial
liabilities formed by the transferred financial assets; Financial liabilities measured at amortized cost.
All financial liabilities are not reclassified.
2. Measurement of financial instruments
The Company's financial instruments are initially recognized as measured at fair value. For
financial assets and financial liabilities measured at fair value and whose changes are booked into
current profit and loss, relevant transaction costs are directly booked into current profit and loss; For
other types of financial assets or financial liabilities, related transaction costs are included in the
initial recognized amount. For accounts receivable or notes receivable arising from the sale of
products or the provision of services that do not contain or take into account significant financing
components, the amount of consideration to which the Company is entitled to collect as expected
shall be the initial recognition amount. Subsequent measurement of financial instruments depends on
their classification.
(1) Financial assets
①Financial assets measured at amortized cost. After the initial recognition, such financial
assets are measured by the amortized cost using the effective interest rate method. The gains or
losses generated by financial assets measured at amortized cost and not belonging to any hedging
relationship shall be booked into current profit and loss when recognition is terminated,
reclassified, amortized according to the effective interest rate method or impairment is recognized.
②Financial assets that are measured at fair value and whose changes are booked into current
profit or loss. After the initial recognition, such financial assets (except part of the financial assets
belonging to the hedge relationship) shall be measured at the fair value, and the resulting gains or
losses (including interest and dividend income) shall be booked into current profit and loss.
③Investment in debt instruments that are measured at fair value and whose changes are
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recorded in other comprehensive income. After the initial recognition, the fair value of such
financial assets is used for subsequent measurement. Interest, impairment losses or gains and
exchange gains and losses calculated using the effective interest rate method are included in
current profit and loss, while other gains or losses are included in other comprehensive income.
Upon termination of recognition, the accumulated gains or losses previously booked into other
comprehensive income shall be transferred out of other comprehensive income and booked into
current profit and loss.
(2) Financial liabilities
① Financial liabilities measured at fair value and whose changes are booked into current profit
and loss. Such financial liabilities include trading financial liabilities (including derivative
instruments belonging to financial liabilities) and financial liabilities designated as measured at fair
value and whose changes are booked into current profit and loss. After the initial recognition, the
fair value of such financial liabilities is used for subsequent measurement. Except for the hedge
accounting, the gain or loss (including interest expense) generated by the change in the fair value of
trading financial liabilities is booked into current profit and loss. If a financial liability is specified as
a financial liability measured at fair value and its change is included in current profit and loss, the
change in the fair value of the financial liability caused by the change of the enterprise's own credit
risk shall be included in other comprehensive income, and the change in other fair value shall be
included in current profit and loss. If accounting mismatch in profit and loss will be caused or
expanded if the impact of the change in credit risk of the financial liability is included in other
comprehensive income, the Company shall book all gains or losses of the financial liability into
current profit and loss.
② Financial liabilities measured at amortized cost. After the initial recognition, such financial
liabilities are measured at amortized cost using the effective interest rate method.
3. The Company's method of recognizing the fair value of financial instruments
If there are financial instruments in active markets, their fair value shall be determined by
quotation in active markets; If there is no active market for financial instruments, use valuation
techniques to determine their fair value. Valuation techniques mainly include market method,
income method and cost method. In limited cases, if recent information used to determine fair
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value is insufficient, or if the distribution of possible estimates of fair value is wide, and cost
represents the best estimate of fair value within the range, the cost may represent its appropriate
estimate of fair value within the range of distribution. The Company uses all information about the
investee's performance and operations available after the initial confirmation date to determine
whether the cost represents fair value.
4. Recognition basis and measurement method for transfer of financial assets and financial
liabilities
(1) Financial assets
The financial assets of the Company shall be terminated if they meet one of the following
conditions: (1) The contractual right to collect the cash flow of the financial assets shall be
terminated; (2) The financial assets have been transferred, and the company has transferred almost
all the risks and rewards of the ownership of the financial assets; (3) The financial assets have been
transferred. Although the Company has neither transferred nor retained almost all rewards on the
ownership of the financial assets, it has not retained control of the financial assets.
Where the Company neither transfers nor retains almost all remuneration on the ownership of
the financial assets, and retains control over the financial assets, the relevant financial assets shall be
recognized according to the degree of continued involvement in the transferred financial assets, and
the relevant liabilities shall be recognized accordingly.
If the transfer of financial assets meets the conditions for termination of recognition as a whole,
the difference between the following two amounts shall be recorded into the current profit and loss:
(1) the book value of the transferred financial assets on the date of termination of recognition; (2)
The sum of the consideration received due to the transfer of financial assets and the amount
corresponding to the part of termination of recognition in the accumulative amount of the change in
fair value directly included in other comprehensive income (the financial assets involved in the
transfer are financial assets classified as measured at fair value and whose change is included in
other comprehensive income).
If the partial transfer of financial assets meets the conditions for termination of recognition, the
book value of the whole transferred financial assets shall be apportioned between the terminated and
unterminated part according to their relative fair value on the transfer date, and then the difference of
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the following two amounts shall be recorded into current profit and loss: (1) The book value of the
terminated recognition part on the termination of recognition date; (2) The sum of the consideration
received for the part of termination recognition and the amount corresponding to the part of
termination recognition in the accumulative amount of changes in fair value originally included in
other comprehensive income (financial assets involved in transfer are financial assets classified as
measured at fair value and whose changes are included in other comprehensive income).
(2) Financial liabilities
If the current obligation of the financial liability (or part thereof) has been discharged, the
Company shall terminate the recognition of the financial liability.
If the recognition of financial liabilities (or part thereof) is terminated, the Company shall book
the difference between the book value and the consideration paid into the current profit and loss.
(XI) Methods for determining expected credit losses and accounting treatment
1. Methods for determining expected credit losses
Based on expected credit losses, the Company conducts impairment accounting treatment and
recognizes loss reserves for financial assets (including receivables) measured at amortized cost,
financial assets classified as measured at fair value and whose changes are included in other
comprehensive income (including receivables financing), lease receivables.
On each balance sheet date, the company evaluates whether the credit risk of relevant financial
instruments has significantly increased since the initial recognition. The process of credit impairment
of financial instruments is divided into three stages, and different accounting treatment methods are
adopted for the impairment of financial instruments at different stages: (1) In the first stage, if the
credit risk of the financial instrument does not increase significantly after the initial recognition, the
Company shall calculate the loss reserve based on the expected credit loss of the financial instrument
in the next 12 months, and calculate the interest income based on its book balance (i.e. without
deducting the impairment reserve) and the actual interest rate; (2) In the second stage, if the credit
risk of the financial instrument has increased significantly since the initial recognition but no credit
impairment has occurred, the Company shall measure the loss reserve according to the expected
credit loss during the entire duration of the financial instrument and calculate the interest income
according to its book balance and actual interest rate; (3) In the third stage, if credit impairment
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occurs after the initial recognition, the Company shall measure the loss reserve according to the
expected credit loss during the entire duration of the financial instrument, and calculate the interest
income according to its amortized cost (book balance minus impairment reserve already drawn) and
the actual interest rate.
(1) Lower credit risk financial instruments measure loss reserve method
For financial instruments with lower credit risk at the balance sheet date, the Company may
directly assume that the credit risk of such instruments has not increased significantly since the
initial recognition, without comparing them with the credit risk at the time of their initial recognition.
If the default risk of the financial instrument is low, the debtor has a strong ability to perform its
contractual cash flow obligations in the short term, and even if there are adverse changes in the
economic situation and business environment in a longer period of time, it may not necessarily
reduce the borrower's ability to perform its contractual cash flow obligations, the financial
instrument is regarded as having a low credit risk.
(2) How to measure loss reserve for receivables and lease receivables
① Receivables that do not contain significant financing components. For receivables that are
formed from transactions regulated by Accounting Standard for Business Enterprises No. 14 -
Revenue and do not have a significant financing component, the Company adopts a simplified
approach that always measures the loss reserve against expected credit losses over the entire
duration.
Depending on the nature of the financial instrument, the Company assesses whether credit risk
is significantly increased on the basis of individual financial assets or a portfolio of financial assets.
The Company divides notes receivable and accounts receivable into several combinations according
to credit risk characteristics, and calculates expected credit losses on the basis of the combination.
The basis for determining the combination is as follows:
Accounts receivable Portfolio 1: combination of related parties within the scope of
consolidation
Accounts receivable Portfolio 2: aging portfolio
Notes Receivable Portfolio 1: Banker's Acceptance receivable
Notes Receivable Portfolio 2: Commercial Acceptance receivable
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For the accounts receivable divided into portfolios, the company, by referring to the historical
credit loss experience, combined with the current situation and the forecast of future economic
conditions, prepares the comparison table of the expected credit loss rate between the age of
accounts receivable and the entire duration of accounts receivable to calculate the expected credit
loss. For notes receivable divided into portfolios, the Company calculates expected credit losses
based on default risk exposure and expected credit loss rate over the entire duration by referring
to historical credit loss experience, combining current situation and forecast of future economic
conditions.
Accounts receivable -- a comparison of the aging of an aging portfolio with the expected credit
loss rate over its entire life
Aging of account Expected credit loss rate of accounts receivable (%)
Within 1 Year 1.00
1-2 Years 5.00
2-3 Years 10.00
3-4 Years 30.00
4-5 Years 50.00
More than 5 Years 100.00
② Receivables and lease receivables with a significant financing component.
For receivables with a significant financing component and for lease receivables regulated by
Accounting Standard for Business Enterprises No. 21 - Leases, the Company measures the loss
reserve in accordance with the general method known as the "three-stage" model.
(3) Other methods of measuring loss reserves for financial assets
For financial assets other than the above, such as debt investments, other debt investments,
other receivables, long-term receivables other than lease receivables, the Company measures the loss
reserve in accordance with the general method, namely the "three-stage" model.
The Company takes the following factors into account when assessing whether credit risk is
significantly increased in the event of credit impairment of the measurement financial instruments:
The Company divides other receivables into several combinations according to the nature of the
amounts, and calculates the expected credit loss on the basis of the combination. The basis for
determining the combination is as follows:
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Other receivables Portfolio 1: Combination of related parties within the scope of consolidation
Other receivables Portfolio 2: Financing margin portfolio
Other receivables Portfolio 3: Export tax rebates receivable portfolio
2. Accounting for expected credit losses
In order to reflect the changes of the credit risks of financial instruments since the initial
recognition, the Company remeasures the expected credit losses on each balance sheet date, and the
resulting increase in the loss reserve or reversal amount shall be recorded into the current profit and
loss as impairment losses or gains. Write off the carrying value of the financial asset listed in the
balance sheet or into the estimated liabilities or into other comprehensive income (debt investment
measured at fair value and its changes into other comprehensive income).
(XII) Inventories
1. Classification of inventories
Inventory refers to finished products or commodities held by the Company in daily activities for
sale, products in the process of production, materials and materials consumed in the process of
production or provision of services, etc. It mainly includes raw materials, turnover materials
(packaging, low-value consumable, etc.), commissioned processing materials, products in process,
homemade semi-finished products, finished products (stock goods), etc.
2. Accounting method for dispatching inventories:
When the inventory is dispatched, the monthly weighted average method is adopted to
determine the actual cost of delivery.
3. Basis for determining net realizable value
On the balance sheet date, the inventory shall be measured according to the lower of the cost
and net realizable value, and the inventory decline reserve shall be calculated according to the single
inventory item. However, for the inventory with a large quantity and a low unit price, the inventory
decline reserve shall be calculated according to the inventory category.
On the balance sheet date, the inventory shall be measured by the lower of cost and net
realizable value, and the inventory depreciation reserve shall be calculated according to the
difference between the cost of inventory class and net realizable value. The net realizable value of
the inventory directly used for sale shall be determined by the estimated selling price of the
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inventory less estimated selling expenses and related taxes in the normal course of production and
operation; For inventories that need to be processed, the net realizable value shall be determined by
the estimated selling price of finished products produced in the normal course of production and
operation after deducting the estimated cost, estimated selling expenses and related taxes to be
incurred upon completion; On the balance sheet date, if a part of the same inventory has a contract
price, but the other part does not have a contract price, its net realizable value shall be determined
respectively, and the corresponding cost shall be compared with it to determine the amount to be
withdrawn or transferred back from the reserve for inventory declines respectively.
4. Inventory system
The company's inventory system is the perpetual inventory system.
5. Amortization method of low-value consumables and packages
Low - value consumable goods and packaging are amortized by one - pass method.
(XIII) Contract assets and contract liabilities
1. Contract assets
The Company presents as a contractual asset the right to receive consideration for goods or
services transferred to the Customer, subject to factors other than the passage of time. Provision
for impairment of 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.
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The Company presents contractual assets and contractual liabilities under the same contract
on a net basis.
(XIV) Long-term equity investments
1. Initial investment cost determination
For the long-term equity investment obtained from the enterprise merger, if the enterprise
merger is under the same control, the initial investment cost of the long-term equity investment shall
be taken as the share of the owner's equity of the merged party in the book value of the final
controlling party's consolidated financial statements on the merger date; In the case of enterprise
merger not under the same control, the initial investment cost of long-term equity investment shall
be taken as the merger cost determined on the purchase date; For long-term equity investment
obtained by cash payment, the initial investment cost is the actual purchase price paid; For the long-
term equity investment obtained by issuing equity securities, the initial investment cost shall be the
fair value of the equity securities issued; The initial cost of long-term equity investment obtained
through debt restructuring shall be determined in accordance with the relevant provisions of
Accounting Standards for Enterprises “CASBE 12 – Debt Restructuring”; For long-term equity
investment obtained by exchange of non-monetary assets, the initial investment cost shall be
determined in accordance with relevant provisions of Accounting Standards for Business Enterprises
“CASBE 7 – Non-cash Assets Exchange”.
2. Subsequent measurement and recognition method of profit or loss
For long-term equity investments with control relationship, it is accounted for with cost method;
for long-term equity investments with joint control or significant influence relationship, it is
accounted for with equity method. The company for equity investment consortium, one part of
through risk investment institutions, mutual funds, trust companies or similar subject, including cast
the insurance fund, indirect holding, whether the above 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
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Of the invested entity has joint control, refers to an arrangement returns have a significant
impact on activity must go through the participants agreed to share control decisions, including the
sale and purchase of goods or services, financial assets management, purchase and disposal of the
assets, research and development activities, and financing activities, etc.; Having a significant
influence on the invested entity refers to having a significant influence when holding more than 20%
to 50% of the voting capital of the invested entity. Or, although less than 20%, has a significant
impact if one of the following conditions is met: representation on the board of directors or a similar
authority of the invested entity; To participate in the policy making process of the investee;
Dispatching management personnel to the invested units; The invested entity relies on the
technology or technical data of the investment company; Having important transactions with the
invested units.
(XV) Investment property
The Company's investment property categories, including leased land use rights, leased
buildings, land use rights held and ready to be transferred after appreciation. The initial measurement
of investment property is carried out according to the cost, and the subsequent measurement is
carried out according to the cost model.
The average life method is adopted for the depreciation of leased buildings in the Company's
investment property, and the specific accounting policy is the same as that of fixed assets. The land-
use right leased in investment property and the land-use right held and transferred after appreciation
shall be amortized by the straight-line method. The specific accounting policies are the same as those
for intangible assets.
(XVI) Fixed assets
1. Recognition principles of fixed assets
Fixed assets are tangible assets held for use in the production of goods or rendering of services,
for rental to others, or for administrative purposes, and expected to be used during more than one
accounting year. Fixed assets are recognized if, and only if, it is probable that future economic
benefits associated with the assets will flow to the Company and the cost of the assets can be
measured reliably.
2.Depreciation method of different categories of fixed assets
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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
Transport facilities 6-8 3.00 12.13-16.17
Electronic equipment 4-11 3.00 8.82-24.25
Other equipment 4-11 3.00 8.82-24.25
(XVII) Construction in progress
1. Construction in progress is recognized if, and only if, it is probable that future economic
benefits associated with the item will flow to the Company, and the cost of the item can be measured
reliably. Construction in progress is measured at the actual cost incurred to reach its designed usable
conditions.
2. Construction in progress is transferred into fixed assets at its actual cost when it reaches the
designed usable conditions. When the auditing of the construction in progress was not finished while
reaching the designed usable conditions, it is transferred to fixed assets using estimated value first,
and then adjusted accordingly when the actual cost is settled, but the accumulated depreciation is not
to be adjusted retrospectively.
(XVIII) Borrowing costs
1. Recognition principle of capitalization of borrowing costs
Borrowing costs incurred by the Company that can be directly attributed to the purchase,
construction or production of assets eligible for capitalization shall be capitalized and included in the
cost of relevant assets; Other borrowing costs shall be recognized as expenses according to the
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amount incurred when incurred and recorded into current profits and losses. The assets that meet the
capitalization conditions refer to the fixed assets, investment real estate, inventory and other assets
that need to go through a fairly long period of purchase, construction or production activities to
reach the predetermined state of being usable or saleable.
2. Calculation method of capitalization amount
Capitalization period refers to the period from the beginning of capitalization of borrowing
costs to the end of capitalization. Periods of suspension of capitalization of borrowing costs are not
included. Capitalization of borrowing costs shall be suspended if abnormal interruption occurs in the
purchase, construction or production process and the interruption lasts for more than 3 consecutive
months.
The borrowing of a special loan shall be determined according to the amount of the interest
expense actually incurred in the current period of the special loan, minus the interest income
obtained from depositing the unused loan funds in the bank or the investment income obtained from
temporary investment; Occupied general borrowings shall be calculated and determined according to
the weighted average of the accumulated asset expenditure exceeding the portion of special
borrowings multiplied by the capitalization rate of occupied general borrowings, and the
capitalization rate shall be the weighted average interest rate of general borrowings; If there is a
discount or premium on the loan, the amount of discount or premium to be amortized in each
accounting period shall be determined according to the effective interest rate method, and the
amount of interest for each period shall be adjusted.
The effective interest rate method is a method to calculate the amortized discount or premium
or interest expense of a loan according to the effective interest rate. The effective interest rate is the
future cash flow of the loan during its expected life, discounted as the interest rate used in the current
book value of the loan.
(XIX) Intangible assets
1. The valuation method of intangible assets
The Company's intangible assets are initially measured at cost. The purchased intangible assets
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shall be regarded as the actual cost according to the actual price paid and related expenses. The
actual cost of intangible assets invested by investors shall be determined according to the value
stipulated in the investment contract or agreement, but if the value stipulated in the contract or
agreement is unfair, the actual cost shall be determined according to the fair value. For self-
developed intangible assets, the cost shall be the total amount of expenses incurred before reaching
the intended use.
The Company's subsequent measurement methods for intangible assets are as follows:
Intangible assets with limited service life shall be amortized by the straight-line method, and the
service life and amortization method of intangible assets shall be rechecked at the end of the year. If
there is any difference from the original estimate, corresponding adjustment shall be made;
Intangible assets with uncertain service life are not amortized, but at the end of the year, the service
life shall be rechecked. When there is conclusive evidence that the service life is limited, the service
life shall be estimated and amortized according to the straight-line method.
Intangible assets with limited useful life are amortized as follows:
Items Amortization period (years)
Software 3-10
patent right and non-patented technology 5-10
land use right 40-50
2. The judgment basis of uncertain service life
The Company will not be able to foresee the period of time that the asset will bring economic
benefits to the Company, or the intangible assets with uncertain service life are identified as
intangible assets with uncertain service life. The judgment basis of uncertain service life is: it comes
from contractual rights or other legal rights, but the contract or legal provisions do not specify the
service life; Based on the industry situation or relevant experts' arguments, it is still impossible to
judge the period when intangible assets bring economic benefits to the company.
At the end of each year, the service life of intangible assets with uncertain service life is
reviewed, mainly in a bottom-up way. The departments related to the use of intangible assets
conduct basic review to evaluate whether the judgment basis of uncertain service life has changed.
3. Specific criteria for research and development stages of internal research and development
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projects, as well as specific criteria for development stage expenditures to meet the capitalization
conditions
Expenditure in the research phase of internal research and development projects shall be
recorded into current profits and losses when incurred; The expenditure in the development stage
shall be transferred to the accounting of intangible assets if it meets the conditions of being
recognized as intangible assets.
Specific criteria for dividing the research phase and development phase of an internal research
and development project: (1) it is technically feasible to complete the intangible asset so that it can
be used or sold; (2) it has the intention to complete the intangible asset and use or sell it; (3) The way
in which intangible assets generate economic benefits, including being able to prove that there is a
market for the products produced by using the intangible assets or that there is a market for the
intangible assets themselves, and that the intangible assets will be used internally, being able to
prove their usefulness; (4) it has the support of sufficient technology, financial resources and other
resources to complete the development of the intangible asset and has the ability to use or sell the
intangible asset; (5) The expenditure attributable to the development stage of the intangible asset can
be measured reliably.
(XX) Impairment of part of long-term assets
If long-term equity investment, investment real estate measured by the cost model, fixed
assets, intangible assets of construction in progress and other long-term assets show signs of
impairment on the balance sheet date, the impairment test shall be conducted. If the result of the
impairment test shows that the recoverable amount of 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
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evidence of impairment, shall be tested for impairment at least annually. In the impairment test,
the carrying value of goodwill is apportion to the group of assets or combination of asset groups
expected to benefit from the synergies of the business combination. If the test results show that
the recoverable amount of the asset group or the asset group combination containing the
apportion of goodwill is lower than its carrying value, the corresponding impairment loss shall be
recognized. The amount of impairment loss shall first offset the book value of goodwill apportion
to the asset group or asset group combination, and then offset the book value of other assets in
proportion to the proportion of the book value of assets other than goodwill in the asset group or
asset group combination.
Once the above-mentioned asset impairment loss is recognized, the part whose value can be
recovered shall not be transferred back in the following period.
(XXI) Long-term prepayments
Long-term prepayments are expenses that have been recognized but with amortization period
over one year (excluding one year). They are recorded with actual cost, and evenly amortized within
the beneficiary period or stipulated period. If items of long-term prepayments fail to be beneficial to
the following accounting periods, residual values of such items are included in profit or loss.
(XXII) Employee benefits
Employee benefits refers to various forms of remuneration or compensation provided by the
Company for obtaining services provided by employees or for terminating labor relations. Employee
benefits include short-term employee benefits, post-employment benefits, termination benefits and
other long-term employee benefits.
1. Short-term employee benefits
During the accounting period when employees provide services for the company, the actual
short-term compensation is recognized as liabilities and booked into the current profits and losses,
except for those required or allowed to be booked into the cost of assets by the accounting standards
for enterprises. The employee welfare expense incurred by the Company shall be included in the
current profit and loss or the cost of relevant assets 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,
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birth insurance premium of social insurance premiums and housing accumulation fund, and
according to the rules extraction of the trade union and employee education funds and provide
services in the workers of the accounting period, according to the provisions stipulated in the basic
and provision ratio calculate and determine the corresponding compensation amount, and confirm
corresponding liabilities, Include current profit or loss or related asset cost.
2. Post-employment benefits
During the accounting period when employees provide services, the payable amount calculated
according to the set depository plan shall be recognized as liabilities and recorded into the current
profit and loss or the cost of relevant assets. According to the formula determined by the expected
cumulative benefit unit method, the welfare obligation arising from the set benefit plan shall be
attributed to the period of service provided by the employee, and shall be included in the current
profit and loss or the cost of relevant assets.
3. Termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability for
termination benefits, with a corresponding charge to profit or loss at the earlier of the following
dates: a. when the Company cannot unilaterally withdraw the offer of termination benefits because
of an employment termination plan or a curtailment proposal; or b. when the Company recognizes
cost or expenses related to a restructuring that involves the payment of termination benefits.
4. Other long-term employee benefits
Other long-term employee benefits provided by the company to the employees that meet the
conditions for setting up an escrow plan shall be dealt with in accordance with the provisions on
setting up an escrow plan; In addition, identify and measure other long-term employee benefit net
liabilities or net assets according to the relevant provisions of the defined benefit plan.
(XXIII) Provisions
An obligation related to a contingent event is recognized as a projected liability when it is a
current obligation undertaken by the Company and the performance of the obligation is likely to
result in an outflow of economic benefits and the amount of the obligation can be measured reliably.
The Company shall make initial measurement according to the best estimate of the expenditure
required to fulfill the relevant current obligations. If there exists a continuous range of expenditure
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required and various outcomes within the range are equally likely to occur, the best estimate shall be
determined as the intermediate value within the range; If more than one project is involved, calculate
the best estimate based on the various possible outcomes and the associated probabilities.
On the balance sheet date, the book value of the projected liabilities shall be reviewed. If there
is conclusive evidence that the book value does not truly reflect the current best estimate, the book
value shall be adjusted according to the current best estimate.
(XXIV) Revenue
The Company has fulfilled its performance obligation under the contract, that is, when the
customer obtains control of the relevant commodity or service, it recognizes revenue according to
the transaction price apportioned to the performance obligation. To acquire the control right of
relevant goods refers to to be able to dominate the use of the goods and obtain almost all the
economic benefits from them. Performance obligation refers to the commitment of the company in
the contract to transfer clearly distinguishable commodities to the customer. Transaction Price
represents the amount of consideration that the Company expects to be entitled to collect as a
result of the transfer of goods to the Customer, excluding monies received on behalf of third
parties and monies that the Company expects to refund to the Customer.
Whether the performance obligation is to be performed within a certain period of time or at a
certain point depends on the terms of the contract and relevant legal provisions. If the
performance obligation is performed within a certain period of time, the Company recognizes
revenue according to the progress of performance. Otherwise, the Company recognizes revenue at
a point at which the customer acquires control of the relevant assets.
If one of the following conditions is met, the performance obligation shall be performed within
a certain period of time; otherwise, the performance obligation shall be performed at a certain
point: (1) The customer obtains and consumes the economic benefits arising from the Company's
performance at the same time as the Company's performance; (2) The customer can control the
goods under construction during the company's performance; (3) The commodities produced by
the Company during the performance of the Contract have irreplaceable uses, and the Company
has the right to collect payment for the accumulated performance completed so far throughout the
contract period.
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For performance obligations performed within a certain period of time, the Company
recognizes revenue in accordance with the progress of performance during that period. If the
performance progress cannot be reasonably determined and the incurred costs are expected to be
compensated, the revenue shall be recognized according to the amount of incurred costs until the
performance progress can be reasonably determined. For performance obligations performed at a
certain point, revenue is recognized at the point when the customer acquires control of the relevant
goods or services. In determining whether the customer has acquired control of the goods, the
Company considers the following indications: (1) the Company has a current collection right in
respect of the goods, i.e. the customer has a current payment obligation in respect of the goods; (2)
the Company has transferred the legal title of the goods to the Customer, that is, the customer has
the legal title of the goods; (3) The Company has physically transferred the commodity to the
customer, that is, the customer has physically possessed the commodity; (4) The Company has
transferred the major risks and rewards in the ownership of the commodities to the Customer, that
is, the customer has obtained the major risks and rewards in the ownership of the commodities; (5)
The customer has accepted the goods; (6) Other signs indicating that the customer has acquired
control of the goods.
Specific methods of revenue recognition
The Company mainly sells video conferencing products, integrated cabling products, intelligent
electrical products, communication basic products and other products. The above product sales
business of the company is a performance obligation performed at a certain point, and the product
revenue recognition shall meet the following conditions: The company has delivered the products
to the purchaser according to the contract and accepted them by the purchaser, and the amount of
sales revenue of the products has been determined, the payment for goods has been recovered or
the receipt of payment has been obtained, and the relevant economic benefits are likely to flow in,
and the costs related to the products can be measured reliably.
(XXV) Contract cost
The contract cost of the Company includes the incremental cost incurred to obtain the contract
and the contract performance cost. Incremental costs incurred to acquire a contract (" contract
acquisition costs ") are costs that would not have been incurred otherwise. If the cost is expected to
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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
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:
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1. The remaining consideration expected to be obtained from the transfer of commodities
related to the asset;
2. Estimate the cost to be incurred for the transfer of the related goods.
If the difference between the foregoing two items is higher than the carrying value of the asset
due to the change of the factors of impairment in the previous period, it shall revert to the original
provision for asset impairment and be included in the current profit and loss, provided that the
carrying value of the asset after the reversal shall not exceed the carrying value of the asset on the
date of reversal assuming no provision for impairment.
(XXVI) Government grants
1. Types of government subsidies and accounting treatment
Government subsidy refers to the monetary assets or non-monetary assets that the Company
obtains free of charge from the government (but does not include the capital invested by the
government as the owner). If the government subsidy is a monetary asset, it shall be measured
according to the amount received or receivable. Where government subsidies are non-monetary
assets, they shall be measured at fair value; If the fair value cannot be obtained reliably, it shall be
measured according to the nominal amount.
Government subsidies related to daily activities shall be included in other income according to
the economic business essence. Government subsidies unrelated to daily activities shall be included
in non-operating income.
Government documents clearly stipulate that government subsidies for the purchase and
construction of long-term assets or the formation of long-term assets by other means shall be
recognized as government subsidies related to assets. If the government documents do not specify
the object of subsidy, and long-term assets can be formed, the part of government subsidy
corresponding to the value of the asset shall be regarded as the government subsidy related to the
asset, and the rest shall be regarded as the government subsidy related to the income. It is difficult to
distinguish between government subsidies as a whole as government subsidies related to benefits.
Government subsidies related to assets are recognized as deferred income. The amount recognized as
deferred income shall be recorded into current profits and losses in a reasonable and systematic
manner during the useful life of the relevant asset.
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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.
(XXVII) Deferred income tax assets and liabilities
1. Deferred tax assets or deferred tax liabilities are calculated and recognized based on the
difference between the carrying amount and tax base of assets and liabilities (and the difference of
the carrying amount and tax base of items not recognized as assets and liabilities but with their tax
base being able to be determined according to tax laws) and in accordance with the tax rate
applicable to the period during which the assets are expected to be recovered or the liabilities are
expected to be settled.
2. A deferred tax asset is recognized to the extent of the amount of the taxable income, which it
is most likely to obtain and which can be deducted from the deductible temporary difference. At the
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balance sheet date, if there is any exact evidence that it is probable that future taxable income will be
available against which deductible temporary differences can be utilized, the deferred tax assets
unrecognized in prior periods are recognized.
3. Recognize deferred tax liabilities for taxable temporary differences related to investments in
subsidiaries and associates, unless the Company has control over the timing of the reversal of the
temporary differences and it is likely that the reversal will not occur in the foreseeable future. For
deductible temporary differences related to investments in subsidiaries and associates, deferred tax
assets are recognized when such temporary differences are likely to be reversed in the foreseeable
future and the amount of taxable income used to offset the deductible temporary differences is likely
to be obtained in the future.
(XXVIII) Leases
1. Accounting treatment of leased assets
On the commencement date of the lease term, the Company recognizes the right to use assets
and lease liabilities for leases other than short-term leases and leases of low-value assets, and
recognizes depreciation expense and interest expense, respectively, during the lease term.
The Company uses the straight-line method for each period of the lease term to charge lease
payments for short-term leases and leases for low-value assets to current expenses.
（1）Right-of-use asset
The right-of-use asset is initially measured at cost, which includes: 1) the initial measurement
amount of the lease liability; 2) the lease payments made on or before the start date of the lease term,
if there is a lease incentive, deduct the amount of the lease incentive already enjoyed ; 3) Initial
direct costs incurred by the lessee; 4) The lessee is expected to incur costs to dismantle and remove
the leased asset, restore the site where the leased asset is located, or restore the leased asset to the
state agreed upon in the lease terms
The company depreciates right-of-use assets on a straight-line basis. If it can be reasonably
determined that 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
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useful life of the leased asset.
In accordance with the Accounting Standards for Enterprises “ CASBE 8 - Asset Impairment”,
the company determines whether the assets used for use have been impaired and carries out
accounting treatment.
（2）Lease liability
The lease liability is initially measured at the present value of the outstanding lease payments
on the commencement date of the lease term. The lease payment amount includes: 1) the fixed
payment amount (including the substantial fixed payment amount). If there is a lease incentive, the
lease incentive related amount shall be deducted; 2) variable lease payments depending on the index
or ratio; 3) the amount expected to be paid according to the security residual value provided by the
lessee; 4) the exercise price of the purchase option, the premise is that the lessee is reasonable to
determine the exercise of the option; 5) Payment for exercising the option to terminate the lease,
provided that the lease term reflects that the lessee will exercise the option to terminate the lease;
The Company uses the lease embedded interest rate as the discount rate; If it is impossible to
reasonably determine the interest rate embedded in the lease, the incremental borrowing rate of the
Company shall be used as the discount rate. The Company calculates the interest expense of the
lease liability in each period of the lease term at a fixed periodic interest rate and records it as a
financial expense. The cyclical rate refers to the discount rate or the revised discount rate adopted by
the Company.
Variable lease payments that are not included in the measurement of lease liabilities are
recorded in current profit and loss when they are actually incurred.
If the Company changes the evaluation result of the option to renew the lease, terminate the
lease or purchase the lease, it will re-measure the lease liability according to the present value
calculated by the changed lease payment amount and the revised discount rate, and adjust the
book value of the right asset accordingly. In the event of a change in the actual lease payment, the
estimated payable amount of the guarantee residual or the variable lease payment depending on
the index or ratio, the lease liability shall be re-measured according to the present value calculated
by the changed lease payment and the original discount rate, and the carrying value of the right
asset shall be adjusted accordingly.
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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.
(XXIX) Explanation of changes in major accounting policies and accounting estimates
There are no changes in accounting policies and estimates during the current period.
IV. Taxes
(I) Main taxes and tax rates
Taxes Tax bases Tax rates
The output tax shall be calculated on the basis of the sales of
goods and taxable service income calculated in accordance with
13%、6%、5%、
Value-added tax (VAT) the provisions of the tax law. After deducting the input tax
3%
allowed to be deducted in the current period, the balance shall
be the VAT payable.
For housing property levied on the basis of price, housing
property tax is levied at the rate of 1.2% of the balance after
Housing property tax deducting 30% of the cost; for housing property levied on the 1.2%、12%
basis of rent, housing property tax is levied at the rate of 12% of
rent revenue.
Urban maintenance and
Turnover tax payable 7%
construction tax
Education surcharge Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
Enterprise income tax Taxable income 15%、25%
Taxpayers Income tax rate
Nanjing Putian Telege Intelligent Building Co., Ltd 15%
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Taxpayers Income tax rate
Nanjing Putian Datang Information Electronic Co.,
15%
Ltd.
Taxpayers other than the above-mentioned 25%
(II) Tax preferential policies
1. Nanjing Putian Telege Intelligent Building Co., Ltd obtained high-tech enterprise certificate in
November, 2021, valid for 3 years. From 2021 to 2023, the enterprise income tax shall be paid at
the reduced tax rate of 15%.
2. The subsidiary, Nanjing Putian Datang Information Electronic Co., Ltd., obtained high-tech
enterprise certificate in November, 2021, valid for 3 years. From 2021 to 2023, the enterprise
income tax shall be paid at the reduced tax rate of 15%.
3. The seventh branch of the subsidiary Nanjing communication equipment factory is a social
welfare enterprise, which complies with the provisions of Guo Shui Fa [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 Putian Datang Information Electronic Co., Ltd. awere certified as
software enterprises, and some of the software products produced by Nanjing South
Telecommunications Company Limited and Nanjing Putian Network Co., Ltd. are entitled to enjoy
the preferential tax policy of VAT refund upon collection in accordance with the provisions of Cai
Shui [2011] No.100.
V. Notes to items of consolidated financial statements
1. Cash and bank balances
(1) Details
Items Closing balance Opening balance
Cash on hand 343.39
Cash in bank 121,936,719.47 164,384,398.00
Other cash and bank balances 12,970,766.25 9,479,083.96
Total 134,907,485.72 173,863,825.35
Including: Total amount deposited
abroad
Deposit money with finance company 40,900,846.78 24,074,373.95
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2. Notes receivable
(1) Categories
Items Closing balance Opening balance
Bank acceptance 351,500.00 2,222,820.00
Trade acceptance 9,181,085.40 26,807,458.99
Less: Provision for bad debts 459,054.27 1,340,372.95
Total 9,073,531.13 27,689,906.04
(2) Provision for bad debts of notes receivable
Closing balance
Categories Book balance Provision for bad debts
Carrying
Provision amount
Amount % to total Amount
proportion (%)
Receivables with provision
made on an individual basis
Receivables with provision
for bad debts made on a 9,532,585.40 100.00 459,054.27 4.82 9,073,531.13
collective basis
Total 9,532,585.40 —— 459,054.27 4.82 9,073,531.13
Opening balance
Categories Book balance Provision for bad debts
Carrying
Provision amount
Amount % to total Amount
proportion (%)
Receivables with provision
made on an individual basis
Receivables with provision
for bad debts made on a 29,030,278.99 100.00 1,340,372.95 4.62 27,689,906.04
collective basis
Total 29,030,278.99 —— 1,340,372.95 4.62 27,689,906.04
1）Notes receivable with bad debt provision in combination
Closing balance
Items Provision for bad
Book balance Provision proportion (%)
debts
Trade acceptance 9,181,085.40 459,054.27 5.00
Bank acceptance 351,500.00 ——
Total 9,532,585.40 459,054.27 ——
(Continued)
Opening balance
Items Provision for bad
Book balance Provision proportion (%)
debts
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Trade acceptance 26,807,458.99 1,340,372.95 5.00
Bank acceptance 2,222,820.00
Total 29,030,278.99 1,340,372.95 ——
(1) Bad debt provisions for notes receivable accrual, recovered or reversed in the current
period
Changes in the current period
Opening Closing
Items Write-
balance Accrual Recovery Others balance
off
Receivables with provision made on
an individual basis
Receivables with provision for bad
1,340,372.95 -881,318.68 459,054.27
debts made on a collective basis
Trade acceptance 1,340,372.95 -881,318.68 459,054.27
Total 1,340,372.95 -881,318.68 459,054.27
(4) Notes receivable that have been endorsed or discounted at the end of the period and are not
yet due on the balance sheet date
The confirmation amount shall be The confirmation amount has not been
Items
terminated at the end of the period terminated at the end of the period
Bank acceptance
Trade acceptance 244,930.92
Total 244,930.92
3. Accounts receivable
(1) Disclosure according to aging
Ages Closing balance Opening balance
Within 1 year 276,440,584.12 185,688,715.74
1 to 2 years 52,009,833.30 58,022,885.76
2 to 3 years 28,279,051.54 30,502,728.20
3 to 4 years 26,896,581.06 34,953,804.10
4 to 5 years 60,625,693.40 60,019,462.10
Over 5 years 126,938,094.01 129,317,629.98
Less: Allowance for doubtful
193,580,598.37 193,889,013.84
accounts
Total 377,609,239.06 304,616,212.04
(2) According to the bad debt calculation and withdrawal method classification disclosure
Closing balance
Categories
Book balance Provision for bad debts
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Provision
Amount % to total Amount proportion
(%)
Receivables with provision made on an
83,047,069.48 14.54 83,047,069.48 100.00
individual basis
Receivables with provision made on a
488,142,767.95 85.46 110,533,528.89 22.64
collective basis
Aging combination 488,142,767.95 100 110,533,528.89 22.64
Total 571,189,837.43 193,580,598.37 33.89
Opening balance
Book balance Provision for bad debts
Categories
Provision
Amount % to total Amount proportion
(%)
Receivables with provision made on an
75,571,063.55 15.16 75,571,063.55 100.00
individual basis
Receivables with provision made on a
422,934,162.33 84.84 118,317,950.29 27.98
collective basis
Aging combination 422,934,162.33 100 118,317,950.29 27.98
Total 498,505,225.88 193,889,013.84 38.89
1）Accounts receivable with provision made on an individual basis
Book Provision for Provision
Debtors Ages Reasons
balance bad debts proportion (%)
Unable
Dongpo Xi Laos Co., Ltd. 19,708,086.54 19,708,086.54 4 to 5 years 100.00
to recover
Unable
Mr. Xu 17,591,683.74 17,591,683.74 Over 5 years 100.00
to recover
Unable
China Tower Corporation Ltd. 13,819,926.92 13,819,926.92 Over 5 years 100.00
to recover
Jilin Lidi Information Unable
5,999,750.00 5,999,750.00 Over 3 years 100.00
Technology Co., Ltd to recover
4-5 years
China Railway ommunication
3,114,600.94； Unable
Signal Shanghai Engineering 4,884,353.27 4,884,353.27 100.00
Over 5 years to recover
Group Co., Ltd
1,769,752.33
Unable
Other 21,043,269.01 21,043,269.01 1-5 years 100.00
to recover
Total 83,047,069.48 83,047,069.48
2）Accounts receivable with provision made on an collective basis
① Combination 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 year 276,930,737.12 1.00 2,769,307.37 185,668,485.74 1.00 1,856,684.85
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Closing balance Opening balance
Ages Provision Provision
Provision for Provision for
Book balance proportion Book balance proportion
bad debts bad debts
(%) (%)
1 to 2 years 51,639,505.86 5.00 2,581,975.30 58,022,885.76 5.00 2,901,144.29
2 to 3 years 24,121,399.72 10.00 2,412,139.98 26,585,163.67 10.00 2,658,516.37
3 to 4 years 25,108,327.97 30.00 7,532,498.39 34,953,804.10 30.00 10,486,141.24
4 to 5 years 30,210,378.87 50.00 15,105,189.44 34,576,719.05 50.00 17,288,359.53
Over 5 years 80,132,418.41 100.00 80,132,418.41 83,127,104.01 100.00 83,127,104.01
Total 488,142,767.95 110,533,528.89 422,934,162.33 118,317,950.29
(3) Bad debt provision
Change in current period
Opening Closing
Categories To withdraw Cancel after Other
balance Accrual balance
or turn back verification changes
Receivables with
provision made on 75,571,063.55 8,933,927.61 1,457,921.68 83,047,069.48
an individual basis
Receivables with
-
provision made on 118,317,950.29 110,533,528.89
7,784,421.40
a collective basis
Total 193,889,013.84 1,149,506.21 1,457,921.68 193,580,598.37
(4) Details of the top 5 debtors with largest balances
Proportion to the total
Provision for
Debtors Book balance balance of accounts
bad debts
receivable (%)
Dongpo Xi Laos Co., Ltd. 19,708,086.54 3.45 19,708,086.54
Mr. Xu 17,591,683.74 3.08 17,591,683.74
China Tower Corporation Ltd. 13,819,926.92 2.42 13,819,926.92
China Mobile Group Guangdong Company
11,190,098.50 1.96 111,900.99
Limited.
Hebei FAR-EAST Communication SYSTEM
9,051,714.63 1.58 337,685.46
Engineering Co., Ltd.
Total 71,361,510.33 12.49 51,569,283.65
4. Receivables financing
Items Closing balance Opening balance
Notes receivable (Bank
15,035,046.06 30,668,999.36
acceptance)
5. Advances paid
(1) Age analysis
Closing balance Opening balance
Ages
Amount % to total Amount % to total
139
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Closing balance Opening balance
Ages
Amount % to total Amount % to total
Within 1 year 19,224,124.92 83.27 6,186,930.98 32.42
1-2 years 932,853.27 4.04 8,653,927.80 45.35
2-3 years 673,841.09 2.92 746,082.95 3.91
Over 3 years 2,255,106.97 9.77 3,494,882.49 18.32
Total 23,085,926.25 100.00 19,081,824.22 100.00
(2) Details of the top 5 debtors with largest balances
Proportion to the total balance of
Debtors Closing balance
advances paid (%)
Jiangsu Shuntian International Group Machinery
4,769,385.38 20.66
Import and Export Co., Ltd
Huawei TECHNOLOGIES Co., Ltd. 561,815.30 2.43
Beijing Tengchuang Xingda Technology Co., Ltd. 402,364.86 1.74
Jiangsu Baishi Dali Network Technology Co., Ltd. 326,106.20 1.41
Rizhao Sida Information Technology Co., Ltd. 313,987.81 1.36
Total 6,373,659.55 27.60
6. Other receivable
Items Closing balance Opening balance
Interest receivable
Dividends receivable
Other receivables 62,744,482.83 56,070,287.57
Less: Allowance for doubtful
43,164,342.30 44,353,986.38
accounts
Total 19,580,140.53 11,716,301.19
（1）Other receivables categorized by nature
Categories Closing balance Opening balance
Provisional payment receivable 49,164,042.51 39,559,820.38
Deposit 11,412,780.50 13,816,308.52
Travel allowance 396,391.93 608,332.22
Other 1,771,267.89 2,085,826.45
Less: Allowance for doubtful
43,164,342.30 44,353,986.38
accounts
Total 19,580,140.53 11,716,301.19
（2）Age analysis
Ages Closing balance Opening balance
Within 1 year 9,951,491.10 8,928,722.74
140
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Ages Closing balance Opening balance
1 to 2 years 10,835,928.76 3,081,096.07
2 to 3 years 1,897,718.12 2,504,630.82
3 to 4 years 1,752,820.13 2,686,896.37
4 to 5 years 1,469,275.85 3,120,558.40
Over 5 years 36,837,248.87 35,748,383.17
Less: Allowance for doubtful
43,164,342.30 44,353,986.38
accounts
Total 19,580,140.53 11,716,301.19
（3）Changes in provision for bad debts
Phase I Phase II Phase III
Items 12-month Lifetime expected Total
Lifetime expected credit
expected credit losses (credit
losses (credit impaired)
credit losses not impaired)
Opening balance 12,259,677.83 32,094,308.55 44,353,986.38
Opening balance in the
current period
--Transferred to phase II
--Transferred to phase III
--Reversed to phase II
--Reversed to phase I
Provision made in the
-1,189,644.08 -1,189,644.08
current period
Provision recovered in
current period
Provision written off in
current period
Other changes
Closing balance 11,070,033.75 32,094,308.55 43,164,342.30
（4）Bad debt provision
Change in current period
Opening Cancel Closing
Portfolios To withdraw or Other
balance Accrual after balance
turn back changes
verification
Other
44,353,986.38 -1,189,644.08 43,164,342.30
combinations
（5）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 (%)
141
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Proportion to
the total
Nature of Closing Provision for
Debtors Ages balance of
receivables balance bad debts
other
receivables (%)
Beijing Likangpu
Temporary
Communication
payment Over 5 years 46.08 28,912,122.71
Equipment Co., 28,912,122.71
receivable
Ltd.
Within 1 year
Nanjing Putian Temporary 13,806.39 ，1-2 years
Technology Co., payment 1,777,119.72 504,197.50，2-3 years 2.83 1,763,451.39
Ltd. receivable 404,315.31，3-4 years
854,800.52
Potevio Company Security
1,000,000.00 Over 5 years 1.59 1,000.000.00
Limited deposit
Nanjing Putian Temporary
4-5 years 179,184.19，
Communication payment 805,545.63 1.28 805,545.63
Over 5 years 626,361.44
Industry Co., Ltd. receivable
Beijing Lekang
Real Estate Security
394,005.08 Within 1 year 0.63% 19,700.25
Management Co., deposit
Ltd.
Total 32,888,793.14 —— 52.41 32,500,819.98
7. 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 27,395,715.67 10,282,406.93 17,113,308.74 27,176,586.65 11,431,889.29 15,744,697.36
Work in rocess 8,334,760.53 2,797,339.41 5,537,421.12 6,222,900.12 2,797,339.41 3,425,560.71
Goods on hand 94,090,365.14 41,262,254.64 52,828,110.50 102,664,462.27 41,363,720.25 61,300,742.02
Goods
130,995,137.12 58,874,166.90 72,120,970.22 145,488,617.47 59,779,466.22 85,709,151.25
dispatched
Products on
consignment 1,105,275.12 804,691.99 300,583.13 1,064,779.21 804,691.99 260,087.22
for sales
Total 261,921,253.58 114,020,859.87 147,900,393.71 282,617,345.72 116,177,107.16 166,440,238.56
(2) The increase or decrease of the inventory decline reserve and the impairment reserve of
contract performance cost
Increase Decrease Increase Decrease
Closing
Items Opening balance Reversal or
Accrual Others Others balance
write-off
Raw materials 11,431,889.29 1,149,482.36 10,282,406.93
Work in process 2,797,339.41 2,797,339.41
Goods on hand 41,363,720.25 101,465.61 41,262,254.64
Goods dispatched 59,779,466.22 905,299.32 58,874,166.90
142
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Increase Decrease Increase Decrease
Closing
Items Opening balance Reversal or
Accrual Others Others balance
write-off
Products on consignment
804,691.99 804,691.99
for sales
Total 116,177,107.16 2,156,247.29 114,020,859.87
8. Other current assets
Items Closing balance Opening balance
Input VAT to be credited 4,913,406.41 3,432,231.67
Total 4,913,406.41 3,432,231.67
143
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9. Long-term equity investments
Increase/Decrease
Closing
Investment balance of
Opening income Adjustment in Cash Closing
Investees Changes Provision provision
balance Investments Investments recognized other dividend/Profit balance
in other for Others for
increased decreased under comprehensive declared for impairment
equity impairment
equity income distribution
method
I. Subsidiary
Nanjing Putian Hotel
1,294,510.00 1,294,510.00 1,294,510.00
Co., Ltd.
II. Joint ventures
SEI-Nanjing Putian
Optical Network Co., 10,422,321.80 -9,717.35 10,412,604.45
Ltd.
Total 11,716,831.80 -9,717.35 11,707,114.45 1,294,510.00
10. Other equity instrument investments
The reason
designated as
Amount of other
measurement at fair Other comprehensive
Dividend The cumulative comprehensive
Items Closing balance Opening balance The cumulative loss value and its change income is transferred
income gains income transferred to
included in other to retained earnings
retained earnings
comprehensive
income
Nanjing Yuhua
420,915.00 420,915.00
Electroplating Factory
Hangzhou Honyar
321,038.00 321,038.00
Electrical Co.,Ltd.
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The reason
designated as
Amount of other
measurement at fair Other comprehensive
Dividend The cumulative comprehensive
Items Closing balance Opening balance The cumulative loss value and its change income is transferred
income gains income transferred to
included in other to retained earnings
retained earnings
comprehensive
income
Beijing Likong
Communication 1,854,910.00
Equipment Co., Ltd.
Total 741,953.00 741,953.00 1,854,910.00
Note: The investment in Nanjing Yuhua Electroplating Factory, Hangzhou Honyar Electrical Co.,Ltd. and Beijing Likong Communication Equipment Co., Ltd. are
classified as other equity instrument investments, the Company measured it at fair value through other comprehensive income.
145
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11. Investment property
(1) Investment real estate measured at cost
Items Buildings and structures
I. Original book value
1. Opening balance 40,129,313.41
2. Increase
3. Decrease
4. Closing balance 40,129,313.41
II. Accumulated depreciation and amortization
1. Opening balance 19,778,073.38
2. Increase 612,080.64
(1) Accrual or amortization 612,080.64
3. Decrease
4. Closing balance 20,390,154.02
III. Provision for impairment
IV. Carrying amount
1. Closing balance 19,739,159.39
2. Opening balance 20,351,240.03
12. Fixed assets
Categories Closing balance Opening balance
Fixed assets 96,291,272.44 98,643,676.71
Liquidation of fixed assets
Less: Impairment provision 725,962.56 725,962.56
Total 95,565,309.88 97,917,714.15
(1) Fixed assets
1）Details
Buildings and Machinery Electronic Transport Other
Items Total
structures equipment equipment facilities equipment
I. Original book value
1. Opening balance 122,417,144.93 45,316,591.74 23,002,008.74 3,888,742.90 17,542,315.66 212,166,803.97
2. Increase 1,004,513.27 113,911.91 277,048.68 44,377.44 1,439,851.30
(1) Acquisition 1,004,513.27 113,911.91 277,048.68 44,377.44 1,439,851.30
3. Decrease 586,802.28 157,223.68 489,063.84 526,349.00 173,936.62 1,933,375.42
(1) Disposal/Scrapping 586,802.28 157,223.68 489,063.84 526,349.00 173,936.62 1,933,375.42
4. Closing balance 121,830,342.65 46,163,881.33 22,626,856.81 3,639,442.58 17,412,756.48 211,673,279.85
146
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Buildings and Machinery Electronic Transport Other
Items Total
structures equipment equipment facilities equipment
II.Accumulated
depreciation
1. Opening balance 48,456,225.13 26,920,074.59 18,316,990.42 3,564,933.91 16,264,903.21 113,523,127.26
2. Increase 2,153,800.04 790,591.69 564,472.59 58,763.98 67,294.66 3,634,922.96
(1) Acquisition 2,153,800.04 790,591.69 564,472.59 58,763.98 67,294.66 3,634,922.96
3. Decrease 484,263.91 144,837.45 470,398.41 510,558.53 165,984.51 1,776,042.81
(1) Disposal/Scrapping 484,263.91 144,837.45 470,398.41 510,558.53 165,984.51 1,776,042.81
4. Closing balance 50,125,761.26 27,565,828.83 18,411,064.60 3,113,139.36 16,166,213.36 115,382,007.41
III.Provision for impairment
1. Opening balance 539,124.00 11,550.65 175,287.91 725,962.56
2. Increase
3. Decrease
4. Closing balance 539,124.00 11,550.65 175,287.91 725,962.56
IV. Carrying amount
1. Closing balance 71,165,457.39 18,586,501.85 4,215,792.21 526,303.22 1,071,255.21 95,565,309.88
2. Opening balance 73,421,795.80 18,384,966.50 4,685,018.32 323,808.99 1,102,124.54 97,917,714.15
2）Fixed assets temporarily idle
Original book Accumulated Provision for
Items Carrying amount Remarks
value depreciation impairment
Machinery equipment 219,385.00 202,981.30 11,550.65 4,853.05
Electronic equipment 36,000.00 34,920.00 1,080.00
Other equipment 342,985.18 157,407.73 175,287.91 10,289.54
Total 598,370.18 395,309.03 186,838.56 16,222.59
3）Fixed assets with certificate of titles being unsettled
Items Carrying amount Reasons for unsettlement
Buildings and structures 35,211,555.82 Unable to handle
13. Construction in progress
Categories Closing balance Opening balance
Construction in progress project 803.89
Engineering materials
Less: Impairment provision
Total 803.89
14. Intangible assets
(1) Details
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Items Land use right Software Total
I. Original book value
1. Opening balance 12,131,153.63 26,656,046.83 38,787,200.46
2. Increase
3. Decrease
4. Closing balance 12,131,153.63 26,656,046.83 38,787,200.46
II.Accumulated depreciation
1. Opening balance 10,512,343.86 7,781,392.84 18,293,736.70
2. Increase 135,201.28 317,144.81 452,346.09
(1) Acquisition 135,201.28 317,144.81 452,346.09
3. Decrease
4. Closing balance 10,647,545.14 8,098,537.65 18,746,082.79
III.Provision for impairment
4. Closing balance
IV. Carrying amount
1. Closing balance 1,483,608.49 18,557,509.18 20,041,117.67
2. Opening balance 1,618,809.77 18,874,653.99 20,493,463.76
15. Long-term prepayments
Items Opening balance Increase Amortization Other decrease Closing balance
Renovation
3,953,824.45 756,292.56 3,197,531.89
expenditure
16. Deferred tax assets and deferred tax liabilities
(1) Details of unrecognized deferred tax assets
Items Closing balance Opening balance
Deductible temporary difference 351,950,817.36 357,780,952.89
Deductible losses 287,795,091.18 297,743,081.95
Total 639,745,908.54 655,524,034.84
(2) Maturity years of deductible losses of unrecognized deferred tax assets
Maturity years Closing balance Opening balance Remarks
Year 2023 4,729,689.33 4,729,689.33
Year 2024 125,729,965.87 125,729,965.87
Year 2025
Year 2026 60,739,146.99 93,920,899.53
Year 2027 55,274,218.94 56,541,198.42
Year 2028 24,267,158.92
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Maturity years Closing balance Opening balance Remarks
Year 2029 1,622,476.49 1,622,476.49
Year 2030 1,188,328.53 1,188,328.53
Year 2031 9,791,047.64 10,250,907.64
Year 2032 3,128,208.76 3,759,616.14
Year 2033 1,324,849.71
Total 287,795,091.18 297,743,081.95
17. Short-term borrowings
(1) Details
Borrowing conditions Closing balance Opening balance
Pledged borrowings 50,000,000.00
Mortgaged borrowings 52,000,000.00 32,800,000.00
Secured borrowings 30,036,727.77
Credit borrowings 40,000,000.00
Total 92,000,000.00 112,836,727.77
18. Accounts payable
(1) Classification by account age
Items Closing balance Opening balance
Within 1 year (including 1 year) 311,804,735.30 291,414,050.48
More than 1 year 106,526,884.87 179,453,232.59
Total 418,331,620.17 470,867,283.07
(2) Significant accounts payable with age over one year
Name of creditor Closing balance Reasons for unsettlement
SEI-Nanjing Putian Optical Network Co., Ltd. 20,258,725.66 Not yet settled
Potevio Company Limited 18,016,137.43 Not yet settled
Nanjing Xingping Industrial Co., Ltd 10,197,028.71 Not yet settled
Xi'an Huasheng Communication Co., Ltd 5,924,163.75 Not yet settled
Yixing Hongyan Electric Appliances Co., Ltd. 2,663,672.16 Not yet settled
Jiangsu Cable Union New Media Technology C
2,124,515.08 Not yet settled
o., Ltd.
Total 59,184,242.79
19. Advances received
Items Closing balance Opening balance
149
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Items Closing balance Opening balance
Within 1 year (including 1 year) 240,585.08
More than 1 year
Total 240,585.08
20. Contract liabilities
Items Closing balance Opening balance
Payment for goods 20,979,225.57 15,048,811.36
21. Employee benefits payable
(1) Details
Opening
Items Increase Decrease Closing balance
balance
Short-term employee benefits 17,473,887.86 69,527,465.54 69,387,632.09 17,613,721.31
Post-employment benefits - defined
10,473,977.01 10,473,977.01
contribution plan
Termination benefits 5,267,311.00 5,267,311.00
Total 17,473,887.86 85,268,753.55 85,128,920.10 17,613,721.31
(2) Details of short-term employee benefits
Opening
Items Increase Decrease Closing balance
balance
Wage, bonus, allowance and subsidy 3,625,349.25 53,370,986.46 53,370,986.46 3,625,349.25
Employee welfare fund 3,572,340.54 3,572,340.54
Social insurance premium 4,374,179.42 4,374,179.42
Including: Medicare premium 3,797,414.92 3,797,414.92
Occupational injuries premium 262,950.54 262,950.54
Maternity insurance premium 313,813.96 313,813.96
Housing provident fund 3,216,865.05 4,862,418.49 4,862,418.49 3,216,865.05
Trade union fund and employee
10,616,677.03 570,983.87 431,150.42 10,756,510.48
education fund
Short-term absences from work with
compensation
Others 14,996.53 2,776,556.76 2,776,556.76 14,996.53
Total 17,473,887.86 69,527,465.54 69,387,632.09 17,613,721.31
(3) Details of defined contribution plan
Opening
Items Increase Decrease Closing balance
balance
Basic endowment insurance premium 10,071,012.32 10,071,012.32
Unemployment insurance premium 402,964.69 402,964.69
Company annuity payment
150
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Opening
Items Increase Decrease Closing balance
balance
Total 10,473,977.01 10,473,977.01
22.Taxes payable
Items Closing balance Opening balance
VAT 1,458,946.39 3,347,506.52
Enterprise income tax 916,617.07 2,752,400.75
Individual income tax 103,150.18 185,396.12
Urban maintenance and construction tax 99,951.81 411,899.55
Housing property tax 259,536.61 265,078.20
Land use tax 74,502.60 76,065.10
Education surcharge&local education
81,429.52 292,071.40
surcharge
Other tax 10,542.74 60,103.57
Total 3,004,676.92 7,390,521.21
23. Other payables
Items Closing balance Opening balance
Interest payable
Dividend payable 1,692,213.38 1,692,213.38
Other payables 55,499,718.99 57,514,067.70
Total 57,191,932.37 59,206,281.08
(1) Dividend payable
Items Closing balance Opening balance
Dividend of ordinary shares 1,692,213.38 1,692,213.38
(2) Other payables
Items Closing balance Opening balance
Temporary receipts payable 35,054,415.64 34,476,014.33
Unsettled installation cost 6,326,109.41 8,160,449.74
Deposits 2,720,169.34 6,273,154.05
Operating expenses 11,327,213.60 7,860,725.92
Others 71,811.00 743,723.66
Total 55,499,718.99 57,514,067.70
24. Other current liabilities
Items Closing balance Opening balance
VAT collected in advance 2,098,763.96 1,691,302.29
151
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25. Long-term borrowings
Items Closing balance Opening balance 利率区间
Pledged borrowings 105,800,000.00 105,800,000.00 4.05%
Secured borrowings 70,000,000.00 3.75%-3.8%
Total 175,800,000.00 105,800,000.00
26. Share capital
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
27.Capital reserve
Items Opening balance Increase Decrease Closing balance
Share premium 137,786,640.63 137,786,640.63
Other capital reserve 59,311,274.77 59,311,274.77
Total 197,097,915.40 197,097,915.40
152
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28. Other comprehensive income (OCI)
Current period cumulative
Less: Other Less: Other
comprehensive comprehensive income Attributable Closing
Items Opening balance Current period Less: Attributable
income in the recorded in the previous to non- balance
cumulative before Income to parent
previous period is period is transferred to controllin g
income tax tax company
transferred to profit retained income in the shareholders
and loss current period
Other comprehensive income
-1,854,910.00 -1,854,910.00
reclassified into profit and loss
Including: The amount of financial
assets reclassified into other -1,854,910.00 -1,854,910.00
comprehensive income
Total -1,854,910.00 -1,854,910.00
(一)
153
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29. Surplus reserve
Items Opening balance Increase Decrease Closing balance
Statutory surplus
589,559.77 589,559.77
reserve
30. Undistributed profit
Current period Preceding period
Items
cumulative comparative
Balance before adjustment at the end of preceding
-388,837,228.89 -341,446,683.34
period
Add: Increase due to adjustment (or less: decrease)
Opening balance after adjustment -388,837,228.89 -341,446,683.34
Add: Net profit attributable to owners of the parent
-10,961,896.92 -27,711,297.33
company
Less: Appropriation of statutory surplus reserve
Dividend payable on ordinary shares
Closing balance -399,799,125.81 -369,157,980.67
31. Operating revenue/Operating cost
(1) Details
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
I.Main operations 383,298,786.87 299,488,292.86 399,867,521.60 317,772,069.20
II.Other operations 9,241,090.82 3,710,714.81 7,445,094.75 5,672,139.94
Total 392,539,877.69 303,199,007.67 407,312,616.35 323,444,209.14
(2) Operating income in the current period is classified according to the time of revenue
recognition
Revenue recognition time Main operations Other operations
Confirm at a certain point 383,298,786.87 9,241,090.82
32. Taxes and surcharges
Preceding period
Items Current period cumulative
comparative
Urban maintenance and construction tax 621,601.17 886,803.62
Education surcharge&local education surcharge 443,890.10 633,135.16
Housing property tax 730,291.64 510,691.74
Land use tax 227,340.96 241,844.10
Other tax 164,525.82 87,907.72
Total 2,187,649.69 2,360,382.34
154
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33. Selling expenses
Preceding period
Items Current period cumulative
comparative
Employee benefits 28,376,975.75 28,150,107.87
Transport and damage to transport 1,987.65 2,789.81
Business entertainment 6,564,653.21 5,453,239.19
Travelling expenses 2,381,148.79 1,715,412.46
Office expenses 341,015.16 403,205.74
Sales service charges 616,688.77 1,726,174.39
Promotion expenses 383,834.27 638,232.78
Conference expenses 127,194.12 61,939.66
Equipment maintain fees 7,343.54 149,510.58
Others 1,762,488.31 2,331,597.58
Total 40,563,329.57 40,632,210.06
34. Administrative expenses
Preceding period
Items Current period cumulative
comparative
Employee benefits 24,081,525.57 20,644,875.51
Consulting and intermediary fees 1,813,579.86 1,038,068.26
Depreciation and amortization 2,882,003.89 3,088,563.05
Office expenses 1,293,967.44 1,505,366.57
Lease expenses 292,909.38 284,527.03
Travelling expense 197,048.41 197,659.84
Business entertainment 321,276.18 400,308.41
Funding for Party Building 208,638.07
Others 1,795,638.51 931,423.36
Total 32,677,949.24 28,299,430.10
35. R&D expenses
Preceding period
Items Current period cumulative
comparative
Employee benefits 14,555,116.56 20,115,664.25
Intermediate test fee 1,149,722.68 1,182,015.12
Travelling expenses 589,520.39 49,288.12
Material use 392,274.68 364,611.56
Depreciation and amortization 505,136.51 817,844.36
Commissioned development 1,513,752.55 19,150.94
Others 716,644.65 1,094,144.20
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Preceding period
Items Current period cumulative
comparative
Total 19,422,168.02 23,642,718.55
36. Financial expenses
Preceding period
Items Current period cumulative
comparative
Interest expenditures 4,046,684.70 5,291,794.15
Less: Interest income 309,650.00 779,954.73
Losses on foreign exchange
Less: gain on foreign exchange 33,020.09 19,186.31
Financial institution fees 54,850.87 145,706.95
Others
Total 3,758,865.48 4,638,360.06
37. Other income
Current period Preceding period Related to assets/Related
Items
cumulative comparative to earnings
VAT will be refunded
1,025,464.15 882,872.52 Related to earnings
immediately
Enterprises declare subsidies 250,000.00 75,000.00 Related to earnings
Jiangning District rescue eight
freight subsidy development 103,076.00 70,587.00 Related to earnings
zone supporting
Employee training subsidy 342,921.12 30,802.84 Related to earnings
Others 142,183.11 16,104.65 Related to earnings
Total 1,863,644.38 1,075,367.01
38. Investment income
Preceding period
Items Current period cumulative
comparative
Long-term equity investment income calculated by the
-9,717.35 -0.99
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 252,381.63 -4,791.06
Total 242,664.28 -5,753,130.77
39. Credit impairment loss
Preceding period
Items Current period cumulative
comparative
Bad debt loss of notes receivable 881,318.68 255,278.50
Bad debt loss of accounts receivable 308,415.47 -2,915,574.98
Bad debt loss of other receivables 1,189,644.08 -963,479.57
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Preceding period
Items Current period cumulative
comparative
Total 2,379,378.23 -3,623,776.05
40. Assets impairment loss
Preceding period
Items Current period cumulative
comparative
Inventory write-down loss -46,540.00 -9,993.42
41. Gains on asset disposal
Preceding period
Items Current period cumulative
comparative
Gains on disposal of fixed assets 42,412.44 59,868.36
42. Non-operating revenue
Current period Preceding period Amount included in non-
Items
cumulative comparative recurring profit or loss
Unpaid payables 2,603,295.76
Penalty income 51,484.34 120,062.99 51,484.34
Others 24,275.66 18,869.74 24,275.66
Total 75,760.00 2,742,228.49 75,760.00
43. Non-operating expenditures
Current period Preceding period Amount included in non-
Items
cumulative comparative recurring profit or loss
Non-current assets damage
109,802.21 12,812.65 109,802.21
and scrap loss
Penalty expenditures 624,965.01 2,000.00 624,965.01
Others 92,732.56 8,507.17 92,732.56
Total 827,499.78 23,319.82 827,499.78
44. Income tax expenses
(1) Details
Items Current period cumulative Preceding period comparative
Current income tax expense calculated
in accordance with the tax law and 598,186.15 1,169,067.15
relevant provisions
Deferred income tax expense
Others -86,511.42 2,245,778.53
Total 511,674.73 3,414,845.68
(2) Accounting profit and income tax expense adjustment process
Items Amount
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Items Amount
Profit before tax -5,539,272.43
Income tax expenses based on tax rate applicable to the parent company -1,384,818.11
Effect of different tax rate applicable to subsidiaries -1,014,545.10
Effect of prior income tax reconciliation -86,511.42
The effect of non-taxable income 2,429.34
The impact of non-deductible costs, expenses and losses 452,540.52
The effect of deductible temporary differences or deductible losses of deferred tax assets not
recognized in the previous period
The effect of deductible temporary differences or deductible losses on deferred tax assets was
6,097,352.95
not recognized in the current period
Deduction of R&D expenditures -3,554,773.45
Income tax expenses 511,674.73
45. Statement of cash flows
(1) Other cash receipts related to operating activities
Items Current period cumulative Preceding period comparative
Government grants 1,377,607.64 667,089.45
Interest income 307,689.80 743,957.45
Incomings and outgoings 27,363,612.17 28,296,437.67
Others 61,876.88 705,426.17
Total 29,110,786.49 30,412,910.74
(2) Other cash payments related to operating activities
Items Current period cumulative Preceding period comparative
Out-of-pocket expenses 23,331,416.49 31,053,868.58
Incomings and outgoings 26,051,460.15 22,452,728.53
Others 286,225.67 679,491.80
Total 49,669,102.31 54,186,088.91
(3) Other cash payments related to financing activities
Items Current period cumulative Preceding period comparative
Nanjing bank loan interest reduction refund 25,555.55
(4) Other cash payments related to financing activities
Items Current period cumulative Preceding period comparative
Installment financing lease payments 1,138,717.12
46. Supplement information to the cash flow statement
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(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 -6,050,947.16 -24,652,295.78
Add: Provision for credit impairment loss 46,540.00 9,993.42
Provision for assets impairment loss -2,379,378.23 3,623,776.05
Depreciation of fixed assets, depletion of oil and gas
assets, depreciation of productive biological assets, and 4,247,003.60 4,725,569.41
depreciation of investment real estate
Depreciation of right-of-use assets
Amortization of intangible assets 452,346.09 523,769.42
Amortization of long-term prepayments 756,292.56 720,614.36
Loss on disposal of fixed assets, intangible assets and other
-42,412.44 -59,868.36
long-term assets (Less: gains)
Fixed assets retirement loss (Less: gains) 109,802.21 12,812.65
Net exposure hedge loss (Less: gains)
Losses on changes in fair value (Less: gains)
Financial expenses (Less: gains) 4,046,684.70 5,291,794.15
Investment losses (Less: gains) -242,664.28 5,753,130.77
Decrease of deferred tax assets (Less: increase)
Increase of deferred tax liabilities (Less: decrease)
Decrease of inventories (Less: increase) 20,696,092.14 8,708,640.42
Decrease of operating receivables (Less: increase) -49,712,436.69 -84,356,904.37
Increase of operating payables (Less: decrease) -58,009,405.97 -16,165,029.70
Others
Net cash flows from operating activities -86,082,483.47 -95,863,997.56
II. Significant investing and financing activities not related to
cash receipts and payments:
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets leased in under finance leases
III. Net changes in cash and cash equivalents:
Cash at the end of the period 121,936,719.47 123,632,374.19
Less: Cash at the beginning of the period 164,384,741.39 180,459,070.86
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Current period Preceding period
Items
cumulative comparative
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 -42,448,021.92 -56,826,696.67
(2) Cash and cash equivalents
Current period Preceding period
Items
cumulative comparative
I. Cash 121,936,719.47 164,384,741.39
Including: Cash on hand 343.39
Cash in bank on demand for payment 121,936,719.47 164,384,741.39
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 121,936,719.47 164,384,741.39
Including: restricted use of cash and cash equivalents by the
parent company or subsidiaries within the Group
47. Assets with title or use right restrictions
Items Closing carrying amount Reasons for restrictions
Cash and bank balances 12,970,766.25 Performance bond and litigation
Fixed assets 18,612,486.48 Mortgage
Intangible assets 3,452,615.18 Mortgage
Investment property 817,510.91 Mortgage
Total 35,853,378.82
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, Jiangning Sub-branch, the Company pledged its
holding equities to Potevio Company Limited, which include equity of Nanjing South Telecommunications Co Ltd.
33.17 million yuan(96.99% shares of stock equity), quity of Nanjing Putian Network Co., Ltd. 7.80 million yuan(78%
shares of stock equity), quity of Nanjing Nanman Electrics Co., Ltd. 41.14 million yuan(100% shares of stock
equity). As of June 30, 2023, Nanjing Mennekes Electric Co., Ltd. has not yet completed the pledge registration
procedures. The parent company provides guarantee for the company's loan from CETC Finance Co., Ltd.. The
company pledged 40% of its holding equities to the parent company, which include Nanjing Putian Tianji Building
Intelligence Co., Ltd., 8.00 million yuan(40% shares of stock equity). The company has registered its equity pledge in
the Jiangning District Market Supervision Administration in Nanjing, with a registration of 6 million yuan on June 21,
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2023 and 2 million yuan on July 19, 2023.
48. 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 98,775.83 7.2258 713,734.39
49. Government grants
(1) Details
The amount recorded in
Presented
Items Amounts under
the current profit and
loss
VAT will be refunded immediately 1,025,464.15 Other income 1,025,464.15
Enterprises declare subsidies 250,000.00 Other income 250,000.00
Jiangning District rescue eight freight subsidy
103,076.00 Other income 103,076.00
development zone supporting
Employee training subsidy 342,921.12 Other income 342,921.12
Others 142,183.11 Other income 142,183.11
Total 1,863,644.38 1,863,644.38
VI. Changes in the consolidation scope
None.
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 Putian Changle
Nanjing Nanjing
Telecommunications Manufacture 50.70 Set up
City City
Equipment Co., Ltd.
Nanjing Putian Telege 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
Nanjing Nanman Nanjing Nanjing enterprises
Manufacture 100.00
Electrics Co., Ltd. City City under
different
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Subsidiaries Place of Main Business Holding proportion (%) Acquisition
registration operating nature Method
place control
Nanjing Putian Nanjing Nanjing
Manufacture 78.00 Set up
Network Co., Ltd. City City
Merger of
Nanjing Putian Datang enterprises
Nanjing Nanjing
Information Electronic Manufacture 40.00 under
City City
Co., Ltd. different
control
Chongqi ng Chongqi
Chongqing Puhua
City ng 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 Putian Telege Intelligent Building Ltd., the other
voting rights are decentralized. The Company has over half member of the Board of Directors, and it not only
controls this company but also has a privileged variable return by taking part in Nanjing Putian Telege Intelligent
Building Ltd’s related activity. The Company has the ability to impact the amount of return and control over Nanjing
Putian Telege Intelligent Building Ltd.
b. The company holds Nanjing Putian Datang Information Electronics Co., LTD. 40% equity, the company in
Nanjing Putian Datang information electronics Co., LTD. As the number of board members more than half of the
company's board of directors, has the power of Nanjing Putian Datang information Electronics Co., LTD., Be able to
enjoy variable returns by participating in relevant activities of Nanjing Putian Datang Information Electronics Co.,
LTD., and have the ability to influence the amount of returns by using the power of Nanjing Putian Datang
Information Electronics Co., LTD., and be able to control Nanjing Putian Datang Information Electronics Co., LTD.
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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 Putian Telege Intelligent
1 54.23% 5,504,757.07 62,660,379.88
Building Ltd.
3. Main financial information of significant not wholly-owned subsidiaries
Closing balance Opening balance
Subsidiaries Non- Non-
Non-current Non-current
Current assets Total assets Current liabilities current Total liabilities Current assets Total assets Current liabilities current Total liabilities
assets assets
liabilities liabilities
Nanjing
Putian
Telege 239,225,227.64 34,818,420.82 274,043,648.46 158,498,046.61 158,498,046.61 220,616,216.69 35,771,362.31 256,387,579.00 150,992,737.00 150,992,737.00
Intelligent
Building Ltd.
Current period cumulative Preceding period comparative
Subsidiaries Total comprehens Cash inflow from Total comprehens Cash inflow from
Operating revenue Net profit Operating revenue Net profit
ive income operating activities ive income operating activities
Nanjing Putian
Telege Intelligent 170,832,000.76 10,150,759.85 10,150,759.85 -38,226,983.96 179,185,572.36 11,560,286.29 11,560,286.29 -54,336,160.51
Building Ltd.
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(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 10,412,604.45 10,422,192.16
Proportionate shares in the following items:
Net profit -19,434.71 -0.99
Other comprehensive income -19,434.71 -0.99
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
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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.
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3. The beginning balance and ending balance of loss provision for financial instruments are
detailed in Notes V(3), V(4) , V(6) 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, 12.49% of the Company's accounts receivable as of June 30, 2023 (Dec 31,
2022: 13.78%) 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
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Company has obtained credit limit from several commercial Nanjing Putian Telecommunications Co.,
Ltd. 2021 Annual Report 187 banks to meet working capital requirements and expenditures.
Financial instruments classified based on remaining time period till maturity
Closing balance
Items Contract amount
Carrying
not yet Within 1 year 1-3 years Over 3 years
amount
discounted
Short-term borrowings 92,000,000.00 92,000,000.00 92,000,000.00
Notes payable
Accounts payable 418,331,620.17 418,331,620.17 418,331,620.17
Other payable 57,191,932.37 57,191,932.37 57,191,932.37
Non-current liabilities due
within one year
Subtotal 567,523,552.54 567,523,552.54 567,523,552.54
(Continued)
Opening balance
Items Contract amount
Carrying Over 3
not yet Within 1 year 1-3 years
amount years
discounted
Short-term borrowings 112,836,727.77 112,836,727.77 112,836,727.77
Notes payable
Accounts payable 470,867,283.07 470,867,283.07 470,867,283.07
Other payable 59,206,281.08 59,206,281.08 59,206,281.08
Non-current liabilities
due within one year
Subtotal 642,910,291.92 642,910,291.92 642,910,291.92
(III) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value of financial
instruments or future cash flows due to changes in market price.
1. Interest risk
Interest risk is the risk that an enterprise may encounter fluctuation in fair value of financial
instruments or future cash flows due to changes in market interest. The Company’s fair value
interest risks arise from fixed-rate financial instruments, while the cash flow interest risks arise from
floating interest financial instruments. The Company determines the proportion of fixed-rate
financial instruments and floating interest rate financial instruments based on the market
environment, and maintains a proper financial instruments portfolio through regular review and
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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. Receivables financing 15,035,046.06 15,035,046.06
2. Other equity instrument
741,953.00 741,953.00
investments
Total assets at recurring fair value
15,776,999.06 15,776,999.06
measurement
(II) Valuation technique(s) and key input(s) for level 3 fair value at recurring and non-recurring
fair measurement
1. For notes receivable, measured at par value.
2. For other equity instrument investments including Nanjing Yuhua Electroplating Factory and
Hangzhou Honyar Electrical Co.,Ltd., due to no changes of operating environment and conditions
and financial conditions of the invested enterprises, the Company measured at investment cost.
3. For other equity instrument investments including Beijing Likangpu Communication
Equipment Co., Ltd., due to deterioration of operating environment and conditions and financial
conditions of the invested enterprises, the Company measured at zero value.
X. Related party relationships and transactions
(I) Parent company
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Voting right
Registered capital Holding proportion proportion
Business （Ten thousand
Parent company Place of registration over the Company over the
nature
yuan） (%) Company
(%)
No. 359 Jiangdong Middle Electronic
Glarun Group
Road, Jianye District, product 1,000,000,000.00 53.49 53.49
Co., Ltd.
Nanjing development
(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
Nanjing branch of China Key System&Integrated Circuit
An affiliated company of the ultimate controlling party
Co.,ltd.
China Putian Corporation An affiliated company of the ultimate controlling party
Potevio Company Limited An affiliated company of the ultimate controlling party
The 55th Research Institute of China Electronics
An affiliated company of the ultimate controlling party
Technology Group Co., Ltd
The 14th Research Institute of China Electronics
An affiliated company of the ultimate controlling party
Technology Group Co., Ltd
The 7th Research Institute of China Electronics Technology
An affiliated company of the ultimate controlling party
Group Co., Ltd
The 23th Research Institute of China Electronics
An affiliated company of the ultimate controlling party
Technology Group Co., Ltd
The 28th Research Institute of China Electronics
An affiliated company of the ultimate controlling party
Technology Group Co., Ltd
China Electronics Technology Finance Co., Ltd. An affiliated company of the ultimate controlling party
CETC LES Information System Company Limited An affiliated company of the ultimate controlling party
CETC Potevio SCIENCE&TECHNOLOGY Co., Ltd. An affiliated company of the ultimate controlling party
CETC Technology (Nanjing) Electronic Information
An affiliated company of the ultimate controlling party
Development Co., Ltd.
Putian EASTERN Communications Group Co., Ltd. An affiliated company of the ultimate controlling party
Tianbo Electronic Information Technology Co., Ltd. An affiliated company of the ultimate controlling party
Taiji Computer Corporation Limited An affiliated company of the ultimate controlling party
Anhui Sun Create Electronics Co.,Ltd. An affiliated company of the ultimate controlling party
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Related parties Relationships with the Company
Shanghai Potevio Co., Ltd. An affiliated company of the ultimate controlling party
Potevio Information Technology Co., Ltd. An affiliated company of the ultimate controlling party
Potevio Telecommunications Co., Ltd. An affiliated company of the ultimate controlling party
Putian Rail Transit Technology (Shanghai) Co. LTD An affiliated company of the ultimate controlling party
Nanjing Putian Communication Technology Industrial Park
An affiliated company of the ultimate controlling party
Co., Ltd.
Nanjing Putian Information Technology Co., Ltd. An affiliated company of the ultimate controlling party
Nanjing Putian Hongyan Electrical Technology Co., Ltd. An affiliated company of the ultimate controlling party
Nanjing Lopu Technology Co., Ltd. An affiliated company of the ultimate controlling party
Nanjing Lopu Co., Ltd. An affiliated company of the ultimate controlling party
NANJING LES INFORMATION TECHNOLOGY 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 Guorui Defense System Co., Ltd. An affiliated company of the ultimate controlling party
Nanjing Rail Transit System Engineering Co., Ltd. An affiliated company of the ultimate controlling party
The 28th Research Institute (Liyang) System Equipment
An affiliated company of the ultimate controlling party
Co.,LTD
Hebei Far-East Communication System
An affiliated company of the ultimate controlling party
Engineering Co.,Ltd.
Hangzhou HONYAR Electrical Co., Ltd. An affiliated company of the ultimate controlling party
Hangzhou Hikvision Technology Co., Ltd. An affiliated company of the ultimate controlling party
Eastern Communications Co., Ltd. An affiliated company of the ultimate controlling party
Beijing Putian Taili Telecommunications Technology
An affiliated company of the ultimate controlling party
Co.,Ltd.
Beijing Likangpu Telecommunications Equipment Co., Ltd. A subsidiary of the company
(V) Related party transactions
1. Purchase of goods, receiving of services
Content of Current period Preceding period
Related parties
transaction cumulative comparative
Telecommunication
Hangzhou Hikvision Technology Co., Ltd. 566,256.71
products
Nanjing Putian Hongyan Electrical Technology Co., Telecommunication
293,753.99 30,796.47
Ltd. products
CETC Technology (Nanjing) Electronic Information Telecommunication
236,439.39
Development Co., Ltd. products
Telecommunication
Nanjing Hikvision Digital Technology Co., Ltd 140,931.84
products
2. Sale of goods, rendering of services
Content of Current period Preceding period
Related parties
transaction cumulative comparative
The 28th Research Institute of China Electronics Telecommunication
8,735,812.40 1,420,289.21
Technology Group Co., Ltd products
The 14th Research Institute of China Electronics Telecommunication
3,500,757.44
Technology Group Co., Ltd products
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Content of Current period Preceding period
Related parties
transaction cumulative comparative
Telecommunication
Nanjing Rail Transit System Engineering Co., Ltd. 1,213,722.12
products
Telecommunication
Nanjing Guorui Defense System Co., Ltd. 1,159,161.82
products
Hebei Far-East Communication System Engineering Telecommunication
878,746.90 783,202.90
Co.,Ltd. products
Telecommunication
Taiji Computer Corporation Limited 292,513.71
products
Telecommunication
Putian Rail Transit Technology (Shanghai) Co. LTD 286,150.44 309,784.08
products
Telecommunication
Tianbo Electronic Information Technology Co., Ltd. 152,783.18
products
The 7th Research Institute of China Electronics Telecommunication
252,293.57
Technology Group Co., Ltd products
Telecommunication
Nanjing Lopu Co., Ltd. 52,110.62
products
Telecommunication
Nanjing Lopu Technology Co., Ltd. 113,151.77
products
CETC EASTCOM COMMUNICATIONS GROUP Terminal and
80,998.50 25,809.65
Co.,Ltd. supporting facilities
The 28th Research Institute (Liyang) System Telecommunication
68,995.74
Equipment Co.,LTD products
Telecommunication
Eastern Communications Co., Ltd. 56,370.07
products
Nanjing branch of China Key System&Integrated
Processing 51,745.91
Circuit Co.,ltd.
Nanjing Putian Hongyan Electrical Technology Co., Telecommunication
10,619.47
products
Ltd.
Nanjing Putian Communication Technology
Labor expense 4,424.78
Industrial Park Co., Ltd.
Beijing Putian Taili Telecommunications
Testing fee 3,150.44
Technology Co.,Ltd.
Telecommunication
CETC LES Information System Company Limited 592.04
products
3. Our company acts as the lessor
Lease income \ expenses Lease income and
Status of leased
Name of Lessee recognized in the current expenses confirmed in the
assets
period previous period
Income from rent
Nanjing Lopu Co., Ltd. 197,619.05 197,619.05
and property fees
The 14th Research Institute of China Income from rent
1,075,252.26
Electronics Technology Group Co., Ltd and property fees
4. The company acts as the lessee
Lease income \ Lease income and
expenses recognized expenses confirmed in the
Name of Lessor Status of leased assets
in the current previous period
period
Nanjing Putian Communication
Rent and management fee 315,411.48 306,153.66
Technology Industrial Park Co., Ltd.
5. Related party guarantees
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Whether the
Amount Commencement
Guarantees Guarantors Maturity date guarantee is
guaranteed date
mature
Glarun Group Co., Ltd. The company 55,000,000.00 2023/4/3 2029/4/2 No
Glarun Group Co., Ltd. The company 15,000,000.00 2023/6/25 2029/6/24 No
6. Related party entrusted loan and interest expense
Entrusted loan and interest expense Current period Preceding period
Name of related party
with parent company
Potevio Company Limited Interest payments on entrusted loans 2,145,771.94 3,605,336.12
Potevio Company Limited Principal balance of entrusted loan 105,800,000.00 145,000,000.00
7.Key management’s emoluments
Items Current period cumulative Preceding period comparative
Key management’s emoluments 1,518,223.00 1,329,391.00
8. Deposit and loan transactions with financial companies, etc
Name of related party Book balance Provision for bad debts
Deposit 40,900,846.78 24,074,373.95
Loan 70,000,000.00
Items Current period cumulative
Loan interest expense 458,638.89
(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
Accounts
receivable
Potevio Information
6,065,598.36 6,065,598.36 6,065,598.36 6,065,598.36
Technology Co., Ltd.
The 28th Research Institute of
China Electronics Technology 5,106,770.00 51,067.70 4,111,020.00 41,110.20
Group Co., Ltd
Potevio Company Limited 3,531,364.87 3,068,074.29 5,519,204.83 4,357,744.25
CETC Potevio
SCIENCE&TECHNOLOGY Co., 2,988,000.00 29,880.00 2,988,000.00 29,880.00
Ltd.
The 14th Research Institute of
China Electronics Technology 1,593,437.49 15,934.37
Group Co., Ltd
Hebei Far-East Communication
9,051,714.63 905,171.46 8,058,730.63 327,755.62
System Engineering Co.,Ltd.
Nanjing Rail Transit System 792,786.81 16,044.88 1,455,390.41 25,822.12
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Closing balance Opening balance
Items Related parties Book Provision for Provision for bad
Book balance
balance bad debts debts
Engineering Co., Ltd
Nanjing Guorui Defense
505,598.73 5,055.99
System Co., Ltd.
Putian Rail Transit Technology
323,350.00 3,233.50
(Shanghai) Co. LTD
NANJING LES INFORMATION
278,123.41 2,781.23
TECHNOLOGY CO.,LTD
Taiji Computer Corporation
261,274.32 2,612.74 888,289.70 8,882.90
Limited
Tianbo Electronic Information
177,585.77 1,775.86
Technology Co., Ltd.
Sun Create Electronics Co., Ltd. 133,262.43 11,252.98 183,262.43 26,252.98
Nanjing Lopu Technology Co.,
121,921.50 1,219.22
Ltd.
CETC EASTCOM
COMMUNICATIONS GROUP 91,000.00 910.00 29,900.00 299.00
Co.,Ltd.
Eastern Communications Co.,
63,698.19 636.98
Ltd.
The 28th Research Institute
(Liyang) System Equipment 54,489.80 544.90 190,083.00 9,504.15
Co.,LTD
Nanjing branch of China Key
System&Integrated Circuit 10,832.51 108.33 65,333.00 65.33
Co.,ltd.
Shanghai Potevio Co., Ltd. 8,755,534.00 8,755,534.00 8,755,534.00 8,755,534.00
Potevio Telecommunications
4,317,924.00 1,060,171.20 4,317,924.00 1,060,171.20
Co., Ltd.
Nanjing Lopu Co., Ltd. 44,000.00 2,200.00
CETC LES Information System
38,901.80 389.02
Company Limited
The 55th Research Institute of
China Electronics Technology 14,900.00 149.00
Group Co., Ltd
Subtotal 44,224,266.82 19,997,607.99 42,726,072.16 20,711,358.13
Notes
receivable
CETC Potevio
SCIENCE&TECHNOLOGY Co., 1,772,820.00 88,641.00
Ltd.
Other
receivable
Potevio Company Limited 1,001,000.00 100,100.00 2,245,100.00 1,954,305.00
Potevio Information
367,800.00 367,800.00 367,800.00 367,800.00
Technology 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 31,600.00 1,580.00 1,500.00 15.00
Group Co., Ltd
CETC Potevio
91,100.00 4,555.00
SCIENCE&TECHNOLOGY Co.,
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Closing balance Opening balance
Items Related parties Book Provision for Provision for bad
Book balance
balance bad debts debts
Ltd.
Tianbo Electronic Information
141,000.00 7,050.00
Technology Co., Ltd.
Hangzhou HONYAR Electrical
20,200.00 1,010.00
Co., Ltd.
Beijing Likangpu
Telecommunications 28,912,122.71 28,912,122.71 28,912,122.71 28,912,122.71
Equipment Co., Ltd.
Subtotal 30,392,522.71 29,385,602.71 31,858,822.71 31,250,857.71
2. Balance due to related parties
Items Related parties Closing balance Opening balance
Accounts
payable
Potevio Company Limited 16,314,294.20 18,016,137.43
CETC Technology (Nanjing) Electronic
46,224.00
Information Development Co., Ltd.
Nanjing Putian Hongyan Electrical Technology
63,782.00
Co., Ltd.
Hangzhou Hikvision Technology Co., Ltd. 504,393.96
Nanjing Putian Communication Technology
25,000.00
Industrial Park Co., Ltd.
Subtotal 16,424,300.20 18,545,531.39
Contract
liabilities
Potevio Company Limited 3,727,418.22 4,690,537.30
Other
payables
China Putian Corporation 9,580,000.00 9,580,000.00
Nanjing Putian Communication Technology
3,711,603.42 3,981,366.18
Industrial Park Co., Ltd.
Nanjing Putian Information Technology Co.,
2,368,068.69 2,525,332.52
Ltd.
Potevio Information Technology Co., Ltd. 400,000.00 400,000.00
Potevio Telecommunications Co., Ltd. 200,000.00 200,000.00
Potevio Company Limited 118,973.06 118,973.06
Subtotal 16,378,645.17 16,805,671.76
XI. Commitments and contingencies
(I) Commitments
As of June 30, 2023, the Company has no material commitments to disclose.
(II) Contingencies
As of June 30, 2023, the Company had no material contingencies to disclose.
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XII. Events after the balance sheet date
As of June 30, 2023, except as disclosed in this note X (1), the Company has no post-balance
sheet events that need to be disclosed.
XIII. Events after the balance sheet date
Segment reports
1. Identification basis for reportable segments
Reportable segments are identified based on operating segments which are determined based
on the structure of the Company’s internal organization, management requirements and internal
reporting system. The Company identified reportable segments based on products, which include
video conferencing products, integrated wiring product, electrical products, wiring products, and
other products. Assets and liabilities shared by different segments are allocated pro rata among
segments.
The Company identified reportable segments based on products, assets and liabilities of each
segment are the actual amount of its proportion in assets and liabilities, and revenue from main
operations and cost of main operations are those generated or incurred by each product segment.
2. Financial information of reportable segments
Products segment
Video Integrated Low voltage Wiring
Inter-segment
Items conferencing wiring distribution products and Total
offsetting
products product products others
Revenue from
main 124,250,956.72 168,067,696.46 40,439,782.31 57,085,505.17 -6,545,153.79 383,298,786.87
operations
Cost of main
91,449,608.57 132,437,584.59 31,614,066.07 50,407,922.16 -6,420,888.53 299,488,292.86
operations
Total assets 252,430,577.78 274,043,648.46 155,953,990.28 440,074,424.99 -240,698,992.47 881,803,649.04
Total liabilities 143,033,563.03 158,498,046.61 103,960,756.76 518,278,028.30 -136,750,454.40 787,019,940.30
XIV. Notes to items of parent company financial statements
(I) Accounts receivable
1. Disclosure according to aging
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Ages Closing balance Opening balance
Within 1 year 56,536,711.46 43,483,236.49
1 to 2 years 21,942,804.46 25,242,696.25
2 to 3 years 14,353,209.23 15,354,863.60
3 to 4 years 14,013,465.67 17,339,579.38
4 to 5 years 54,958,605.80 54,845,034.31
Over 5 years 102,157,063.06 103,377,145.03
Less: Allowance for doubtful
154,035,050.54 155,462,979.31
accounts
Total 109,926,809.14 104,179,575.75
2. According to the bad debt calculation and withdrawal method classification disclosure
Closing balance
Categories Book balance Provision for bad debts
% to Provision
Amount Amount
total proportion (%)
Receivables with provision made on an
72,018,149.02 27.28 72,018,149.02 100.00
individual basis
Receivables with provision made on a
191,943,710.66 72.72 82,016,901.52 42.73
collective basis
Among them: Combination 1: aging
190,015,580.25 99.00 82,016,901.52 43.16
method
Combination 2: Receivables within the
1,928,130.41 1.00
consolidated range
Total 263,961,859.68 100.00 154,035,050.54 58.36
(Continued)
Opening balance
Book balance Provision for bad debts
Categories
Provision
% to
Amount Amount proportion
total
(%)
Receivables with provision made on an
68,961,269.79 26.56 68,961,269.79 100.00
individual basis
Receivables with provision made on a
190,681,285.27 73.44 86,501,709.52 45.36
collective basis
Among them: Combination 1: aging
188,947,762.27 99.09 86,501,709.52 45.78
method
Combination 2: Receivables within the
1,733,523.00 0.91
consolidated range
Total 259,642,555.06 100.00 155,462,979.31 59.88
（1）Receivables with provision made on an individual basis
Provision for Provision
Debtors Book balance Reasons
bad debts proportion (%)
Unable
Dongpo Xi Laos Co., Ltd. 19,708,086.54 19,708,086.54 100.00
to recover
Mr. Xu 17,591,683.74 17,591,683.74 100.00 Unable
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Provision for Provision
Debtors Book balance Reasons
bad debts proportion (%)
to recover
Unable
China Tower Corporation Limited 13,819,926.92 13,819,926.92 100.00
to recover
China Railway Signal&Communication
Unable
Shanghai Engineering Bureau Group 4,884,353.27 4,884,353.27 100.00
to recover
Co.,Ltd.
Unable
Others 16,014,098.55 16,014,098.55 100.00
to recover
Total 72,018,149.02 72,018,149.02
（2）Receivables with provision made on a collective basis
① Combination 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 year 54,588,351.05 1.00 545,883.51 42,251,540.94 1.00 422,515.41
1 to 2 years 21,914,563.52 5.00 1,095,728.18 24,720,638.80 5.00 1,236,031.94
2 to 3 years 10,550,955.26 10.00 1,055,095.53 11,437,299.07 10.00 1,143,729.91
3 to 4 years 15,701,257.58 30.00 4,710,377.27 17,339,579.38 30.00 5,201,873.81
4 to 5 years 25,301,271.62 50.00 12,650,635.81 29,402,291.26 50.00 14,701,145.63
Over 5 years 61,959,181.22 100.00 61,959,181.22 63,796,412.82 100.00 63,796,412.82
Total 190,015,580.25 82,016,901.52 188,947,762.27 86,501,709.52
Combination 2: related parties
Closing balance Opening balance
Ages Provision Provision
Book Provision for Provision for
proportion Book balance proportion
balance bad debts bad debts
(%) (%)
Within 1 year 1,928,130.41 1,211,465.55
1 to 2 years 522,057.45
Total 1,928,130.41 1,733,523.00
3. Bad debt provision
Change in current period
Opening Closing
Categories To withdraw or Cancel after Other
balance Accrual balance
turn back verification changes
Provision for
155,462,979.31 29,992.91 1,457,921.68 154,035,050.54
bad debts
4. Details of the top 5 debtors with largest balances
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Proportion to
the total
Provision for bad
Debtors Book balance balance of
debts
accounts
receivable (%)
Dongpo Xi Laos Co., Ltd. 19,708,086.54 7.47 19,708,086.54
Mr. Xu 17,591,683.74 6.66 17,591,683.74
China Tower Corporation Limited 13,819,926.92 5.24 13,819,926.92
Hebei FAR-EAST Communication SYSTEM
9,051,714.63 3.43 337,685.46
Engineering Co., Ltd.
Shanghai Potevio Co., Ltd. 8,755,534.00 3.32 8,755,534.00
Total 68,926,945.83 26.12 60,212,916.66
(II) Other receivable
Items Closing balance Opening balance
Interest receivable
Dividends receivable 600,000.00 600,000.00
Other receivables 73,119,751.51 65,902,582.81
Less: Allowance for doubtful
40,042,395.72 41,175,475.72
accounts
Total 33,677,355.79 25,327,107.09
1. Dividends receivable
（1）Details
Items Closing balance Opening balance
Nanjing Putian Datang Information Electronics Co., Ltd. 600,000.00 600,000.00
2. Other receivable
（1）Other receivable categorized by nature
Items Closing balance Opening balance
Temporary payment receivable 55,818,714.92 55,986,690.26
Deposit 472,846.00 7,751,311.73
Travel allowance 60,000.00 442,731.30
Others 16,768,190.59 1,721,849.52
Less: Allowance for doubtful accounts 40,042,395.72 41,175,475.72
Total 33,077,355.79 24,727,107.09
（2）Age analysis
Ages Closing balance Opening balance
Within 1 year 13,070,378.55 23,014,515.42
1 to 2 years 20,068,853.23 1,563,414.00
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2 to 3 years 1,600,767.62 1,647,443.32
3 to 4 years 1,384,820.13 2,415,479.37
4 to 5 years 1,332,191.85 2,991,891.40
Over 5 years 35,662,740.13 34,269,839.30
Less: Allowance for doubtful accounts 40,042,395.72 41,175,475.72
Total 33,077,355.79 24,727,107.09
（3）Changes in provision for bad debts
Phase I Phase II Phase III
Items 12-month Lifetime expected credit Lifetime expected Total
expected losses (credit not credit losses (credit
credit losses impaired) impaired)
Opening balance 10,218,687.21 30,956,788.51 41,175,475.72
Opening balance in the
current period
--Transferred to phase II
--Transferred to phase III
--Reversed to phase II
--Reversed to phase I
Provision made in the
-1,133,080.00 -1,133,080.00
current period
Provision recovered in
current period
Provision written off in
current period
Other changes
Closing balance 9,085,607.21 30,956,788.51 40,042,395.72
（4）Bad debt provision
Change in current period
Opening Closing
Categories To withdraw or Cancel after Other
balance Accrual balance
turn back verification changes
Losses on
41,175,475.72 -1,133,080.00 40,042,395.72
bad debts
（5）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
Telecommunications payment 28,912,122.71 Over 5 years 39.54 28,912,122.71
Equipment Co.,Ltd. receivable
NANJING PUTIAN Temporary
TELECOMMUNICATIONS payment 1,777,119.72 1-4 years 2.43 1,763,451.39
CO.,LTD. receivable
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Proportion to
the total
Nature of Closing Provision for
Debtors Ages balance of
receivables balance bad debts
other
receivables (%)
Security
Potevio Company Limited 1,000,000.00 Over 5 years 1.37 1,000,000.00
deposit
4-5 years
Nanjing Putian Temporary
179,184.19,
Communication Industry Co., payment 805,545.63 1.10 805,545.63
Over 5 years
Ltd. receivable
626,361.44
Total 32,494,788.06 44.44 32,481,119.73
(III) Long-term equity investments
Closing balance Opening balance
Items Provision Provision
Carrying Carrying
Book balance for Book balance for
amount amount
impairment impairment
Investments in
113,409,068.64 1,294,510.00 112,114,558.64 113,409,068.64 1,294,510.00 112,114,558.64
subsidiaries
Investments in
associates and 10,412,604.45 10,412,604.45 10,422,321.80 10,422,321.80
joint ventures
Total 123,821,673.09 1,294,510.00 122,527,163.09 123,831,390.44 1,294,510.00 122,536,880.44
1. Investments in subsidiaries
Provision for
Closing
impairment
Opening Incre Decrea balance of
Investees Closing balance made in
balance ase se provision for
current
impairment
period
Nanjing Putian Changle
Telecommunications 2,610,457.00 2,610,457.00
Equipment Co., Ltd.
Nanjing Putian Telege
3,320,003.45 3,320,003.45
Intelligent Building 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
Co., Ltd.
Nanjing Putian Network
7,741,140.41 7,741,140.41
Co.,Ltd.
Nanjing Putian Datang
Information Electronics Co 5,436,797.07 5,436,797.07
Ltd
NANJING PUTIAN
TELECOMMUNICATIONS 1,294,510.00 1,294,510.00 1,294,510.00
CO.,LTD.
Chongqing Puhua
Information Technology Co., 2,000,000.00 2,000,000.00
Ltd
Total 113,409,068.64 113,409,068.64 1,294,510.00
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2. Investments in associates and joint ventures
Increase/Decrease
Closing
Investment balance of
Opening Adjustment in Cash Closing
Investees income Changes in Provision provision
balance Investments Investments other dividend/Profit balance
recognized other for Others for
increased decreased comprehensive declared for impairment
under equity equity impairment
income distribution
method
I. Joint ventures 10,422,321.80 -9,717.35 10,412,604.45
SEI-Nanjing Putian
Optical Network Co., 10,422,321.80 -9,717.35 10,412,604.45
Ltd.
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(IV) Operating revenue/Operating cost
1. Operating income and operating costs are classified by major categories
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
I.Main operations 44,665,542.44 41,053,987.42 48,561,617.50 44,909,870.82
II.Other operations 1,556,221.19 230,398.62 1,476,755.54 1,568,931.48
Total 46,221,763.63 41,284,386.04 50,038,373.04 46,478,802.30
2. Operating income in the current period is classified according to the time of revenue
recognition
Revenue recognition time Income from main business Other business income
Confirm at a certain point 44,665,542.44 1,556,221.19
(V) Investment income
Preceding period
Items Current period cumulative
comparative
Investment income from long-term equity investments
9,153,400.00
under cost method
Investment income from long-term equity investments
-9,717.35 -0.99
under equity method
Others 252,381.63 122,168.94
Total 242,664.28 9,275,567.95
XV 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
-67,389.77
the asset impairment provision
2. Approval beyond authority, or without formal approval documents, or
incidental tax refund, reduction and exemption
3. Government subsidies included in the current profit and loss (closely related to
the business of the enterprise, except those enjoyed in accordance with the 838,180.23
national unified standard quota or quantitative government subsidies)
4. Capital occupancy fee charged to a non-financial enterprise that is included in
the current profit and loss
5. When the investment cost of a subsidiary, joint venture or associates is less
than that of the investment, an enterprise shall enjoy the income generated from
the fair value of the identifiable net assets of the invested entity
6. Non - monetary assets exchange gains and losses
7. Gains or losses from investing or managing assets on behalf of others
8. Provisions for impairment of assets due to force majeure factors, such as
natural disasters
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Items Amount Remarks
9. Debt restructuring gains and losses -88,555.00
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 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
1,457,921.68
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 -301,000.94
21. Other profit and loss items that meet the definition of non-recurring profit
and loss
22. Impact of income tax 64,780.32
23. Amount of influence of minority shareholders 212,534.83
Total 1,561,841.05
(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
-66.38 -51.49 -0.05 -0.13 -0.05 -0.13
ordinary shares
Net profit attributable to shareholders of
ordinary shares after deducting non-recurring -75.84 -45.63 -0.06 -0.11 -0.06 -0.11
profit or loss
Board of Directors of Nanjing Putian Telecommunications Co., Ltd.
August 29, 2023
183